Further to the Company's announcement made on 24 November 2003, our replies to some of the questions are set out below:
1 Figures from the IPO prospectus suggest that $36.9m worth of contract has been secured this year to early AUG...... Including the 3 contracts just announced....
Total=$42.2m (Amount to 69% of FY 02 T/OVER)
No news of any more contracts except for $0.8m Christmas Lightings contract, which Revenue will probably be recognise next financial year..... Hmm... am I looking at a no growth in revenue for FY 03? Anyone got any idea when will the Q3 results be release?
Despite the effects of SARS during the second quarter, we are confident of achieving reasonal profits for FY03. We continue to secure contracts but as many are of smaller values, they do not warrant specific announcements. Also based on our current market capitalisation, we are not required to release quarterly results.
2(i) Can you comment on your share price. Do you feel it reflects your fundamentals? If not, can you share with us what are your investment merits?
Naturally we would like our share price to be higher but that is something the market must value themselves. On our part we will continue to focus on the business & delivering the results. Our company has depth in management strength. Both the co-founders and subsidiary directors are very experienced in their respective fields, each having over 15 years experience. There are long-serving key personnel in every department. Cash flow is healthy and we expect reasonable profits this year.
2(ii) Its been a few months after your IPO, may I know if you are happy with your deployment of the IPO proceeds so far?
The proceeds of the IPO will be used for future expansions of the Group and facilities. The Group has options to purchase from the majority shareholders their investments in the Kingsmen Affiliates. Please note that many of these affiliates, especially those in Hong Kong, Beijing, Shanghai, Taiwan, Seoul and Tokyo were started in 1997/98 and are performing reasonably well. We expect some of the affiliates to become part of the Group in the near future.
2(iii) Noticed your margins are always quite tight at NP after tax against the total sales. What are the management strategies towards raising this profit margin?
We are working towards improving our integrated services to provide better efficiency. Comprehensive service solutions will benefit both clients and the Group.
3 How come Kingsmen is so quiet after the IPO launch? Why din i see alot of news about it? And now the share price has been going down and there is little activity in the trading. I wonder how is the mgnt's view on this. Going forward, what exciting plans do the mgnt has in store for the company?
We hope to improve on our investor relations by making more frequent announcements and speed up our overseas expansion plans, i.e. to acquire the shares of the majority shareholders of the Kingsmen Affiliates and other new international contracts.
4 Which are target market segment most likely to boost the company top line?
We expect all our business segments; retail and office interiors, eateries, exhibitions and museums to contribute to our top & bottom-line. In addition, our global connections also bring us projects from different parts of the world.
The Board of Directors of Kingsmen Creatives Ltd is pleased to announce that replies to the other questions on the online Q&A forum have been posted on Shareinvestor.com.
Access to the replies can be obtained by clicking on this link: