GREATER CHINA PRECISION COMPONENTS LIMITED. IPO Roadshow Presentation 2007

Transcription

1 GREATER CHINA PRECISION COMPONENTS LIMITED IPO Roadshow Presentation

2 Contents Company Profile Market Competitors Competitive Strengths Customers Financial Highlights Business Strategies & Our Future Plans Investment Highlights IPO Key Data 2

3 Company profile 3

4 Company Profile GCPC -founded by Mr Wu Baoyu and Mr Wu Baofa in is one of the leading and fast growing one stop providers of mobile handset casings based in China Plastic lnjection Spray painting Mold manufacture 3D 3D 图 Assembly Design 4

5 Company Profile The Business can be segmented into two main activities 5

6 Company Profile Key Personnel Wu Baofa, 45 Non Executive Director Wu Baoyu, 39 Executive Director 6

7 Company Profile Key Personnel Jia Yufang, 59 Executive Director Mao Julin, 44 Executive Director 7

8 Company Profile GCPC Group Structure (optimized for international IPO) GCPC Inc. (Singapore) 100% Huizhou Green Plastic Electronics Co., Ltd (PRC) 8

9 Market 9

10 Market The global handset market is expected to continue to expand in sales by units and by dollar value y CAGR: 11,9% y CAGR: 11,2% Handset unit sales (million) Handset wholesale revenues (US$ billions) Source: Gartner Dataquest, Forecast: Mobile Terminals, Worldwide, China is expected to grow at even faster rates 10

11 Market China has reached 500 million wireless telecommunication subscribers by August 2007 with still room to grow due to. Low mobile phone penetration rate compared to more developed countries upgrades of telecommunication networks by operators to offer 3G services and therefore increased demand for enhanced new models. Potentially large market from handset upgrade 11

12 Market Handset Industry Value Chain consists of : u Brand management and quality control u Product design and development u u u u Procurement of raw materials Production of components Assembly Logistics and sales. Outsourcing Trend: Processes typically outsourced Transfer of outsourcing activities to Asian manufacturing services providers, particularly China 12

13 Competitive Environment 13

14 Competitive Environment The competitive market includes companies like Foxconn (listed in Hong Kong) Balda AG (listed in Germany) BYD (listed in Hongkong) 14

15 Competitive Strengths 15

16 Competitive Strengths One-stop production process based on the advanced painting technology for handset casings improving production time as well as response to customers time Full range of in-house equipment for mold production reducing molding cost Well established cost-effective and high-quality manufacturer Strong research and development capabilities High Capability to offer a broad range of other ancillary components for mobile handsets Quick Responsive to changing market trends (designs, techniques, materials etc) Close customer relationships understanding customers needs and early stage involvement of product development 16

17 Customers 17

18 Customers 18

19 Customers Components built for.. Alcatel Nokia Productive time April, 2006 until now Productive time April, 2005 until now Output 1,147,000 Output 46,764,892 Color type Black/silver Color type Silver/pink OT- E105 Nokia 6101 Alcatel Nokia Productive time May, 2006 until now Productive time May, 2006 until now Output 841,000 Output 4,624,857 Color type White/black/clear color OT- E801 Color type Black/silver Nokia

20 Customers Components built for.. Nokia Sony Ericsson Productive time Sep,2006 until now Productive time June, Feb,2007 Output 5,130,316 Output 1,296,729 Color type Silver/double color Nokia 5300 Color type Black/purple K510c Nokia Sony Ericsson Productive time Apr, Mar, 2007 Productive time Jan, 2007 until now Output 4,516,615 Output 5,327,265 Color type Silver/dark blue Nokia 6235 Color type Black/white W200c 20

21 Financial Highlights 21

22 Financial Highlights Revenue and EBIT Development Full Year % 30% in M io. R M B % % % FY2004 FY2005 FY2006 FY2007b 20% 10% 0% CAGR ( ) -Revenues: 40% Revenue EBIT Margin Source: Greater China Precision Components Limited 22

23 Financial Highlights Revenue and EBIT Development Half Year % 30% in Mio. RMB % M M % 10% 0% CAGR (6M2006 6M2007) -Revenues: 62% -EBIT: 154% Revenue EBIT Margin Source: Greater China Precision Components Limited 23

24 Business Strategies & Our Future Plans 24

25 Business Strategies Strengthening of Research and development capabilities Strategic relationship with current customers Vertical integration of the production process Development of Business relationships with new customers New product offerings Improvement of. Existing cost structure Production process and efficiency 25

26 Our Future Plans New Production Facilities 66,000 square meters of build-up area, to be built at a total costs of RMB 100 million, to be completed in 2H2008 Consolidate existing production facilities at the current 2 locations into 1 single location New additions of machines and equipment to boost production capacity 26

27 Our Future Plans Expansion in Service Offerings Establish an Industrial Design Center (2008) Introduction of a new spray painting technique known as the Physical Vapor Deposition or PVD (late ) Production of external screen casings (late ) Production of keypads (2008) Establish a Department of Metal Casings (beginning 2009) 27

28 Investment Highlights 28

29 Investment Highlights High growth rates combined with strong margins development Rising global handset demand especially in Emerging Markets Continued outsourcing trends of handset casing components production and more processes of the handset value chain especially to China Offering of a wider range of components to extisting and new customers Maximization of utilization rates of existing facilities Creating new revenue sources from a single customer order 29

30 IPO Key Data 30

31 IPO key data Placement structure u u 100% of the issue volume from a capital increase 10%Greenshoe (5% from original shareholders, 5% capital increase) Day of first trading u Planned first listing to be expected at 20 th November 2007 (settlement date expected end of November 2007) Pricing u Bookbuilding Offer period u expected November 2007 Use of the IPO proceeds u Construction of a new factory building (36%) u Acquisition of new equipment (21%) u Expansion of marketing network (7%) u Repayment of related party`s loan (11%) u Set up a R&D Center (4%) u Working Capital & Reserve (21%) Market Segment u Frankfurt Stock Exchange (Entry Standard) Lead Bank u VEM Aktienbank AG, Munich, Germany Freefloat Lock Up u approximately 25% u 12 Months / 18 Months 31

32 Share offer Share capital pre-ipo (Shares): Share capital post-ipo (Shares): ~Up to Subscription volume u Shares offered through capital increase: u Shares offered by existing shareholders: (if Greenshoe option exercised) u Greenshoe option (new shares): Total shares offered:

33 Shareholder structure After capital increase as well as greenshoe execution, freefloat comes to approx. 30% Shareholder structure pre-ipo Shareholder structure pre-ipo Manageme nt & Directors 22% Wu Baoyou 31% Wu Baofa 47% Manageme nt & Directors 15% Freefloat 32% Wu Baoyou 21% Wu Baofa 32% 33

34 Annex 34

35 Company Profile: Key Personnel Ang Kheng Hui, 36 Non Executive Director u Joined Green in 2007 u CEO of a Singapore based consulting company Chen Daorong, 56 Independent Director u Joined Green in 2007 u u u CEO and managing director of a company listed on the Shanghai Stock Exchange Member of the 10th Committee of the Zhejiang Provincial People's Representative Chairman of the Yuecheng Township's Commercial Chambers. Tay Kok Soon, 39 Independent Director u Joined Green in 2007 u Senior Vice President and Head of IPO of an international investment bank 35

36 Company Profile GCPC Group Structure GCPC (Singapore) 100% Smooth Year Group Limited (BVI) 100% Pacific Ocean Investment Limited (HK) 25% 100% Hangzhou Zhonghan Telecommunication Equipment Technology Co., Ltd. (PRC) 75% Huizhou Green Plastic Electronics Co., Ltd (PRC) 36