Agenda. 01 Company Overview. 02 Financial Highlights. 03 Outlook

Transcription

1

2 Disclaimer These materials and the subsequent discussion are not an offer for sale of any securities of PC Partner Group Limited (the Company ). The distribution of these materials in certain jurisdictions may be restricted by law and therefore persons into whose possession these come should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of such jurisdiction. Certain financial information contained herein has not been audited, comforted, confirmed or otherwise covered by a report by independent accountants. In addition, past performance of the Company cannot be relied on as a guide to future performance. These materials and the subsequent discussion contain statements about future events, projections, forecasts and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The Company makes no representation on the accuracy and completeness of any of the forward-looking statements, and, except as may be required by applicable law, assumes no obligations to supplement, amend, update or revise any such statements or any opinion expressed to reflect actual results, changes in assumptions or in the Company s expectations, or changes in factors affecting these statements. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk. 2

3 Agenda 01 Company Overview 02 Financial Highlights 03 Outlook 3

4 Company Overview

5 Business Highlights 1) Top 5 video graphics cards manufacturers in the world 2) Strong partnership with AMD and NVIDIA 3) Top 4 NVIDIA Gaming brands ZOTAC 4) AMD direct graphics - sole contract manufacturer in the world 5) Brand business represented 57.6% of total revenue in 2017 with a CAGR of 34.5% in the past 3 years 6) R&D team with over 180 engineers from China, Hong Kong and Taiwan 5

6 Milestone Developing new VR machines (VR Gaming & Backpack machines) 2015 Developing Internet on Things (IOT) business Before Enter into AI & Deep Learning segment Re-position ZOTAC as a Gaming Brand Listed on the main board of The Stock Exchange of Hong Kong Fully acquired ASK and Manli group Designed and sold its own mini-pc series under the ZOTAC brand Acquired 60% of ASK and Manli groups and their Inno3D and Manli brands Started distributing its own ZOTAC brand video graphics cards Started manufacturing video graphics cards based on NVIDIA GPUs Became an EMS provider for a world-leading flash memory card supplier Engaged by ATI (now AMD) as contract manufacturer Became an EMS provider for a world-leading ATM & POS system supplier The PC Partner Group was founded in Hong Kong Computer division as a part of Vtech Group 6

7 Global Coverage -Selling products to over 70 countries globally - HQ in HK with regional offices in China, Korea, Japan, Taiwan, Germany, USA 7

8 Shareholding Structure as at 23 April 2018 Ho Wong Mee Tak Mary, NED* Wong Shik Ho Tony, Chairman/ CEO, ED* Wong Fong Pak, ED* Leung Wah Kan, COO, ED* Ho Nai Nap, ED* Man Wai Hung, ED* Others 29.03% 12.20% 6.33% 5.27% 4.66% 1.25% 41.26% 100% * ED Executive Director NED Non Executive Director 8

9 Major Strategic Technology Partners - Partnership for over 20 years with AMD and over 10 years with NVIDIA 9

10 Strong Management Team with Rich Industry Experience Mr. WONG Shik Ho Tony Chairman & Chief Executive Officer Responsible for the overall strategic management and corporate development of the Group Manage the Group s overall sales activities Mr. WONG Fong Pak Executive Director & Executive Vice President Responsible for managing the materials management function Manage business EMS division Mr. LEUNG Wah Kan Executive Director & Chief Operation Officer Responsible for management of the Group s manufacturing operations in China Manage the Group s product design and development engineering activities Mr. LAU Ka Lai Gary Chief Financial Officer Responsible for the Group s overall financial, information technology, and legal matters Manage ZOTAC s American regional business Mr. HO Nai Nap Executive Director Responsible for management of ASK Group Manage ZOTAC s EMEAI regional business Mr. Man Wai Hung Executive Director Responsible for management of Manli Group 10

11 Financial Highlights

12 Financial Summary (HK$ 000 ) Turnover 8,555,368 5,827,964 4,754,149 4,895,192 4,803,097 Gross Profit 915, , , , ,421 Gross Profit Margin 10.71% 10.12% 8.73% 9.79% 9.96% Profit/(Loss) Attributable to Owners of the Company 332, ,189 (18,460) 51,349 73,251 Net Profit Margin 3.88% 2.57% -0.39% 1.05% 1.53% Basic Earnings per Share (HK$)

13 Sales Performance (HK$ M) Revenue (HK$ M) Sales by Product Segment (HK$ M) Sales by Geographical Region (HK$ M) Sales by Brands / OEMs 13

14 Profit Margin Performance (HK$ M) Gross Profit (%) Gross Profit Margin (HK$ M) Net Profit (%) Net Profit Margin 14

15 Key Performance Indicators (HK Cent) Basic EPS & Dividend (HK $ M) Cash & Bank Borrowings Day Cash Conversion Cycle (HK$ M) Cash from Operating Activities 15

16 Graphics Cards Business % VGA Revenue / Total Revenue Ratio (Million Unit) Sales Quantity Million Unit FY2017 Sales Quantity Ratio USD ASP on VGA 16

17 2018 Outlook

18 Fundamentals in 2018 Popularity of esports generate demands on computer gaming hardware in the past few years, expect to continue in 2018 GPU and memory shortage is still serious and probably last until next generation of product launch, so price is sustainable and even potentially for further increase New gaming GPU will be launch in Q should drive a further demand up on gaming and potential on other applications Contribution from orders of video graphics cards for crypto-currencies mining is expected to continue 18

19 Revenue Outlook 2018 Target for an overall 30% revenue growth to US$1.4B in 2018 Brand business achieved a 3 years CAGR of 34.5%, target for the same growth rate in 2018 to US$850m by both organic growth and taking market shares from other players invest on ZOTAC CUP Master a core esport activities under the brand for a higher level of brand awareness add on more gaming products and corporate solutions to increase on revenue Mining orders may contribute around 15% to 20% of total revenue in 2018 OEM/EMS businesses is expected to improve but probably at around 10% in 2018, engaging new customers and looking into additional revenue contribution 19

20 Risks & Challenges in 2018 Lack of sufficient GPU and memory to fulfill orders Difficult to recruit people after CNY and probably need to move more aggressive on automation If crypto-currencies have no future value, there will not be any demand on mining card which representing around by 15% to 20% New products launch follows Nvidia new GPU launch schedule, delay of new GPU launch by Nvidia will also cause a delay on revenue to be generated from new products 20

21 Thank You