• No results found

Kingtone WirelessInfo Solution Holding Ltd.

N/A
N/A
Protected

Academic year: 2021

Share "Kingtone WirelessInfo Solution Holding Ltd."

Copied!
10
0
0

Loading.... (view fulltext now)

Full text

(1)

Kingtone WirelessInfo Solution

Holding Ltd.

(NasdaqCM: KONE)

Investor Presentation

August 2010

Safe Harbor Statement

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth herein that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Kingtone Wirelessinfo Solution Holding Ltd. (the “Company”) ability to market existing and new products, ability to access to capital for expansion, and changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation was developed by the Company, is intended solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This presentation is based upon information available to the public, as well as other information from sources which management believes to be reliable, but is not guaranteed by the Company as being accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.

(2)

Corporate Overview

3

Our Business

Enterprise mobile solutions

Our Market

Government agencies and enterprises

Our Location

Headquartered in Xi'an with offices in Beijing and Chengdu

Our Team

180 employees with 72 in R&D and 47 in Engineering

NASDAQ: KONE FYE: 9/30

Price (08/06) $2.52

Market Cap $35.28MM

Equity Snapshot

Basic/ Fully Diluted Shares Outstanding 14.0MM

Revenue (TTM as of Q3 FY10) $13.09MM

Net Income (TTM as of Q3 FY10) $6.92MM

EPS (TTM as of Q3 FY10) $0.66

(3)

Kingtone Mobile Enterprise Solution

Corporate Information Systems

. . .

Office Automation (OA) System

Industrial Automation System

Enterprise Resource Planning (ERP) System Enterprise Asset Management (EAM) System Supply Chain Management (SCM) System

Customer Relation Management (CRM) Security and Video Surveillance System Kingtone Mobile Enterprise Middleware Platform Kingtone Mobile Enterprise Applications Mobile Devices Mobile phones PDAs Notebooks Portable Cameras

Proprietary Mobile Enterprise Solutions

• Seamless communication between corporate systems and mobile devices • Scalable platform and software applications

• Standardized as well as customized high added-value modules

5

Proven Flexible Platform

General Purpose Layer

• Information Processing and

Distribution • Messaging • Flow Engine • Stream Media • Reporting

Basic Layer

• Unified Data Center • Information Security • Signal Dispatch • Information Exchange • Integration Interface • Standardized modules

• Customized value added modules

• Scalable applications developed by us or third parties

(4)

• RFID service

• Location-based service

• Stream media service

• Information exchange

• Management and configuration

• Information security

• Police

• Emergency response

• Administration of industry and commerce

• Environmental protection

• Automation telematics

Modular Software Applications

IC T -C o n v e rg e d A p p li c a ti o n s V e rt ic a l In d u s tr y A p p li c a ti o n s • RFID service • Location-based service

• Stream media service

• Resource planning

• Gateway service

• Statistics and analysis

• Police • Emergency response • Administration of industry and commerce • Environmental protection • Automation telematics Terminal-End

Terminal-End Server-EndServer-End

Terminal-End

Terminal-End Server-EndServer-End

7

Case Study: Yan’An Police Department

• National model for law enforcement

• Need to increase effectiveness of patrolling and case reporting as well as integrate information of patrol officers, community police and investigators • Solutions

1) Provide fast, accurate information sharing 2) Improve cooperation between various police forces 3) Enhance multi-type comprehensive inquiries 4) Expedite case processing time

5) Build up on-site law enforcement

Market Segment – Service Industry

General business and government agencies Active cooperation with Big 3 telcos and direct sales

Police EmergencyResponse EnvironmentalProtection

News Agencies Insurance Claims

City Management Administration

(5)

9

Geographic Coverage

Case Study: Yanchang Petroleum

• Oldest, top 5 oil company in China

• Need to increase efficiency in refinery operations • Solutions:

1) Automate delivery system and loading of shipments 2) Enable real-time inquiry and monitoring functions 3) Reduce accidents and provide a safer enviornment

Market Segment – Manufacturing Industry

Factory production automation and mobile solutions Open bid via direct sales

Oil & Gas Coal Mining

Water

Management Tobacco

(6)

Addressable Market

(1) According to an IDC article dated October 22, 2009 (2) CITIC Jiantou Securities 2009 Jan report

• Information technology creates economic growth and improves lives • Enterprise mobility market to reach $15.6bn in 2011; 6% CAGR since 2007(1)

• Government spent RMB 53.65bn on IT in 2009; expect RMB 73.36bn in 2013(1)

• Big 3 telcos to invest $ 44.0bn between 2009 and 2011(2)

• Kingtone is supplier/joint marketer with Big 3 telcos

11

Flexible Sales Models

• Nationwide business solutions demos • Preferred software provider • Penetrating through telecom’s

provincial and local branches

JOINT

MARKETING

• Industry workshops and seminars • Sales calls and visits

• On-site pilot application demos

DIRECT

SALES

(7)

Competitive Advantages in China

Vs. Domestic

Competitors

• First mover

• Broader product range • Platform versatility • Technical standard setting • High switching cost

• Responsive customer support • Publicly traded with access to

capital

Vs. International

Competitors

• Instant customer support • Affordable cost • Cultural alignment • Customer knowledge • Data sensitivity 13

Growth Strategy

Up-selling/Cross-selling to existing clients Expanding new client base National geographic expansion Strategic Acquisitions Enhance relationship with Big 3 telcos 14

(8)

1.9 6.3 4.4 6.2 1.0 2.0 3.0 4.0 5.0 6.0 7.0

FY2008 FY2009 Q3YTD FY09 Q3YTD FY10

EBIT 227% 44% 1.0 5.3 3.5 5.1 1.0 2.0 3.0 4.0 5.0 6.0

FY2008 FY2009 Q3YTD FY09 Q3YTD FY10

Net Income 4.3 11.2 7.3 9.2 2.0 4.0 6.0 8.0 10.0 12.0

FY2008 FY2009 Q3YTD FY09 Q3YTD FY10

Revenue 2.7 7.3 5.1 7.5 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

FY2008 FY2009 Q3YTD FY09 Q3YTD FY10

Gross Profit

Financial Results

($ MM) ($ MM) ($ MM) ($ MM) 162% 25%

Compounded Annual Growth Rate 15

176% 48% 422% 47%

Margin Expansion

16 81.5% 90.8% 92.3% FY2008 FY2009 TTM Software Business Gross Margin 56.4% 43.7% 34.2% FY2008 FY2009 TTM

Wireless System Solutions Gross Margin 62.2% 65.4% 74.7% FY2008 FY2009 TTM Gross Margins 23.0% 46.0% 68.8% 77.0% 54.0% 31.2% FY2008 FY2009 TTM Revenue Breakdown

Software Business Wireless System Solution

(9)

($ in MM) FY2008 FY2009 Q3FY10

Cash $0.0 $0.3 16.0

Accounts Receivable 0.5 0.2 6.2

Total Current Assets 12.9 4.0 23.3

Total Assets 14.7 17.9 37.2

Total Debt 3.7 3.4 3.5

Total Liabilities 7.0 8.8 8.2

Shareholders’ Equity 7.7 9.1 29.0

Balance Sheet Summary

17

Dedicated Management

18  Chairman since December 2007

 Chairman & CEO China Green Agriculture, Inc. (NYSE: CGA)  Northwest Polytechnic University Master in heat and metal treatment Tao Li

Chairman

 CEO since December 2009

 Joined August 2001 as engineer; diverse management positions  Chongqing Petroleum Technical School

Peng Zhang CEO

 CFO since April 2010

 Former CFO of China Green Agriculture, Inc. (NYSE: CGA)  University of California, Irvine; MBA in Finance; CPA Ying Yang

CFO

 Software system analyst since 2001

 Shanghai Jiaotong University Master in Computer Science Xianying Chen

VP, AP

 Senior programmer since 2003

 Xi’an Electronic Technology University Master in Computer Science Pengguo Xi

(10)

Investment Summary

First mover with over 130 installations

Proven technology with wide commercial applications

Strategic partnership with key high-end customers

Continuous R&D breakthroughs and excellent customer support Rapid growth opportunities with 3G roll out in China

Dedicated and experienced management team

1

2

3

4

5

6

19

Kingtone WirelessInfo Solution

Holding Ltd Christensen International Ltd

Ying Yang

3rdFloor, Borough A, Block A. No. 181,

South Taibai Road

Xi’an, Shaanxi Province, China Tel: (86) 29 8826 6368 Cell: (626) 623 2575

Email: yangying@kingtoneinfo.com

Roger Hu / Kathy Li

A1015 Bldg 3, 32 Baiziwan Road Chaoyang District

Beijing, China

Tel: (8610) 5971 2001 / (212) 618 1978 Cell: (86) 158 1049 5326

Email: rhu@christensenir.com

Legal Counsel – Pryor Cashman LLP Auditor – Bernstein & Pinchuk LLP

Elizabeth Fei Chen 7 Times Square New York, NY 10036 Tel: (212) 421-4100

Email: echen@pryorcashman.com

Drew Bernstein

Seven Penn Plaza, Suite 830 New York, NY 10001 Tel: (212) 279-7900

Email: drew@bpaccountants.com

Contact Information

References

Related documents

Enterprise Mobile Management Strategy Elements B2E Mobile Reporting Mobile Office BYOD Mobile Timesheet Mobile CRM Mobile ERP B2B Mobile- Ordering Mobile Trading

Mobile Device Management (MDM) software provides IT organizations with security-relevant capabilities that support the integration of mobile devices into enterprise

For example, feedback from the 2006 fall semester (Session 1) shows what students found most useful about the instructional session: The data imply that the introductory

Future trends and challenges for billing systems include the proliferation of new types of services to support, telephone number portability that compli- cates account

Table d’hôte dinner in Inverness Scottish evening in Edinburgh Evening Gala with Visit Scotland  Guided tours of Glasgow & Edinburgh  Walking tour of Glasgow’s

The need for mobile content manage- ment starts with security, but it expands through the enterprise to encompass management of mobile devices and content, control of documents

solutions to key enterprise Mobile concerns, such as Mobile Device Management , Security & Enterprise App Stores. 

Although PANI/TiO2 composites show lower dc electrical conductivity as compared to PANI and the conductivity decreases with increasing content of TiO2, but they show a higher