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SKYWORTH DIGITAL HOLDINGS LIMITED (IPO FACT SHEET) |
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Listing Information |
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Skyworth, a manufacturer of colour TV, digital audio-visual and internet network products in the PRC, is underpinning its listing plan on the main board of the Hong Kong Stocks Exchange. The following is for potential investor's information only and subject to alterations. |
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New shares to be issued |
500m |
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- Institutional and private placement |
450m |
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- IPO |
50m |
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Issued price |
HK$1.84-$2.3 |
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Capital to be raised |
approximately HK$1b |
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Estimated PE for 2000 |
8-10 Times |
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Net operation earning forecast for 2000 |
300m |
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Major shareholder post IPO |
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- Family Trust of Mr. Wong (Chairman of the Group) |
40.84% |
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Stock Code |
751 |
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Sponsors and Underwriters |
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Global coordinator and Bookrunner |
ING Barings |
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Joint Sponsors |
ICEA Capital Ltd |
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Time Table |
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IPO application close |
24 March 2000 |
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Expected date of listing |
7 April 2000 |
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Company Background |
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The history and development of the group may be divided into four main stages:
- Mr. Wong established Skyworth Industrial in Hong Kong to engage in trading, exporting and R&D of electronic products, TV sets in OEM format in 1988.
- From 1992, the Group started to produce colour TV sets in the PRC in OEM format for exporting and domestic sales.
- In 1998, the Group commenced production of VCD and SVCD players.
- In 1999, production of DVD players and first internet television set-top box commenced. |
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Business |
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Skyworth is principally engaged in the business of designing, manufacturing and selling colour TV sets and digital audio-visual product in the PRC. In 1999, the Group commenced production and sale of internet and net work communication products.
The Group's turnover percentage by category as follows demonstrates its core production and sales proportion. |
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Turnover by category |
Year ended 31st March |
Seven months |
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In percentage |
98 |
99 |
from March 99 |
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Colour TV sets
- below 25"
- 25" and above |
42.6%
57.1% |
36.3%
60.1% |
28.9%
65.5% |
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Digital A.V. sets |
0.1% |
3.3% |
5.4% |
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Internet & network products |
nil |
nil |
5 sets |
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Others |
0.2% |
0.3% |
0.2% |
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100% |
100% |
100% |
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Domestic sales and export |
Year ended 31st March |
Seven months |
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98 |
99 |
from March 99 |
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PRC sales |
84.6% |
87.4% |
86.8% |
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Export sales |
15.4% |
12.6% |
13.2% |
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100% |
100% |
100% |
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Overall Advantage and Risk Associated with the group |
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The Group will continuously invest in R&D in order to develop new product at low costs as to maintain its competitiveness.
Advantages of the Group are as follows:
- Ability to capture the internet market by using TV set as online browser.
- To develop the new TV set-top box Web2001 and later Web2008 which enable TV to function as a computer for online purposes and thus market potential is huge
- To cooperate with Microsoft China to develop the set top box technology which will be a new pioneer product in its kind |
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Risks can be summarized as below: |
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- Intense competition in sales market of TV and Audio-Visual sets
- TV set top box still in R & D stage and its marketability is yet to be proved
- Rapid technology change in its products
- Heavy reliance on the PRC market
- Reliance on limited suppliers for key components of its products |
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Future Plans and Use of Proceeds |
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The management envisages an increasingly strong demand for its product in the PRC market and determined to become a market leader in the industry. Accordingly it has the following strategy in its operation.
- Diversify its product types
- Devote more resources in R & D
- Strengthen its sales and distribution network by setting up more outlets
- Strengthen its production facilities by increasing efficiency and capacities |
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Utilization of around 1b proceeds as follows: |
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- 200m to expand and upgrade further the Group's production and sales operation for colour TV set.
- 100m for same purpose for digital audio-visual products
- 100m to develop Internet and network communication products
- 250m to strengthen R & D capabilities by setting up a permanent center
- Balance for general working capital |
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Historical P/L for reference |
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Seven months
From March 1999 |
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Year to 31st March (HK$m) |
1997 |
1998 |
1999 |
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Turnover |
1,576 |
2,274 |
3,009 |
2,019 |
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Change in % |
N/A |
44 |
32 |
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Net profit |
159 |
200 |
240 |
184 |
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Change in % |
N/A |
25 |
20 |
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EPS(cents) |
13.2 |
16.7 |
20.1 |
13.44 |
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Change in % |
N/A |
26 |
20 |
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