2016 annual repor t 2017 annual repor t

160 Pages·2017·6.81 MB·English

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Company Registration No.: 198001299R L
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28 Defu Lane 4 | Singapore 539424 R R
T: [phone] EE
F: [phone] PP
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E: [email protected]
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www.kodaonline.com TT
CORPORATE
INFORMATION
VISION
BOARD OF DIRECTORS
KOH TENG KWEE Non-Executive Chairman
JAMES KOH JYH GANG Deputy Chairman / Managing Director
To be a reputable, profitable
ERNIE KOH JYH ENG Executive Director, Sales & Marketing
and significant global
KOH SHWU LEE Executive Director, Finance & Administration
original manufacturer of furniture. CHAN WAH TIONG Lead Independent Director
SIM CHENG HUAT Independent Director
TAN CHOON SENG Independent Director
YING SIEW HON, FRANCIS Independent Director
COMPANY SECRETARY REGISTERED OFFICE &
GN JONG YUH GWENDOLYN PRINCIPAL PLACE OF BUSINESS
Date of Appointment 28 Defu Lane 4 Singapore 539424
1 November 2013
MISSION
PRINCIPAL BANKERS
SHARE REGISTRAR UNITED OVERSEAS BANK LIMITED
We must be the most effective BOARDROOM CORPORATE 80 Raffles Place
value-for-money manufacturer. & ADVISORY SERVICES PTE. LTD UOB Plaza 1
Singapore 048624
50 Raffles Place #32-01
We must remain design-relevant. Singapore Land Tower HONGKONG AND SHANGHAI
Singapore 048623
We must invest in research & development. BANKING CORPORATION
21 Collyer Quay #08-01
We must ensure that our products remain AUDITORS HSBC Building
affordable and accessible. DELOITTE & TOUCHE LLP Singapore 049320
Public Accountants and MALAYAN BANKING BERHAD
We must ensure we have the right people
Chartered Accountants
136 & 137, Jalan Senai Utama 5/17,
with the right skills. 6 Shenton Way #33-00
Taman Senai Utama,
OUE Downtown 2
We must deliver to our shareholders value 81400 Senai, Johor
Singapore 068809
and investment comfort.
AUDIT PARTNER
HOE CHI-HSIEN
Date of Appointment
28 October 2014
CONTACT KEY MANAGEMENT AT:
JAMES KOH JYH GANG KOH SHWU LEE
Deputy Chairman/Managing Director Executive Director, Finance & Administration
[email protected] [email protected]
ERNIE KOH JYH ENG LIM SWEE HUA DAVID
Executive Director, Sales & Marketing Chief Financial Officer
[email protected] [email protected]
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TABLE OF
CONTENTS
Our Vision and Mission IFC
About Koda 5
Chairman’s Statement 6
Results At A Glance 7
Managing Director’s Statement 10
Group Structure 15
Board of Directors 16
Management Profile 21
Group Presence 23
Financial Contents 24
SOLIDIFYING
OUR GOALS
MODERNIZING
OUR ASSETS
KODA is quickly becoming well-known as a style
leader. We have new products online and across
the retail floors, that showcases the talents of our
design and development team. New digital assets
as well as new printed materials will allow us to
communicate our message more clearly than ever,
not only to our trade customer, but also to the end
consumer, driving her to preferred distribution. We
are building the strongest marketing and branding
platform in our company’s history.
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ABOUT
KODA
From our humble beginnings in 1972, with its patience of not seeing R&D
Koda has turned into a leading Original micro-management a fuss and design
Design Manufacturer of furniture. Led by trifles a bother – we are just as exacting
a management team with a combined about every single detail of our designs.
experience of more than 100 years, While exuding design sophistication and
Koda has made significant investments elegance, we have also been instilling
in Vietnam, Malaysia and China. Koda a sense of responsibility to balance
has been recognised by Forbes Asia aesthetics with the environment by
under the category of ‘Best Under A infusing ‘GREEN’ in the materials we use;
Billion Company’ in 2006 and profiled in the process we engage; and in the
by CSIL Milano in its Top World Furniture products we develop.
Manufacturers Report 2006 as one of the
top 200 major furniture manufacturers Koda’s designs are intensive and our
worldwide. product range is extensive – whether in
occasional pieces or collection themes –
Luxury defined, Koda distinguishes itself we design and produce furniture for the
by its aesthetically pleasing design dining room, living room and bedroom
mastery, technically feasible concepts furniture.
and practically oriented craftsmanship
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CHAIRMAN’S
STATEMENT
Dear Stakeholders,
I am really happy to report our good – We visited important overseas In June 2017, we first gave out 1 bonus
results this year. Our board and customers and we talked to them share for every 2 shares you owned
management are very involved in the very often. and after announcing the recent good
business. They have good business results for 2017, my board proposed to
I like the Commune concept. It is a
plans. They can turn good ideas into give out another 1 bonus share for every
business and a furniture idea which
actions. They are hardworking. 1 share you own.
my grandsons have put in a lot of effort
It has not been easy for the team to over the last few years. I am so happy to The cash dividends and bonus shares
achieve higher sales and higher profits see this brand growing fast, finding new are meant to reward supportive
when the markets are so uncertain and I markets and getting good feedback. Of shareholders.
want to update you here on some of the course, the older Koh family members
Thank you very much. Many thanks for
decisions we have made to improve our (including me) have given the younger
your continual support.
operational flows and financial results: generation some good guidance and I
will continue to support the expansion
– We built additional distribution hubs
of Commune.
so that our logistic management
can be more efficient; This year, we proposed to pay higher Koh Teng Kwee
dividends to shareholders. Altogether,
Non-Executive Chairman
– We sold some properties in Vietnam
we will pay out a total cash dividend of
and combined all factories there
about S$1.4 million in 2017 if you approve
into one main location;
the latest dividends which we have just
– We invested in new machines and declared in this coming AGM.
equipment for higher productivity;
– We expanded Commune’s business
well in China; and
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RESULTS
AT A GLANCE
CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
Year ended June 30
2017 2016 Change
US$’000 US$’000 % REVENUE
REVENUE 49,491 37,110 33.4 Rose by US$12.4 million – due mainly to
(i) higher export sales to our key markets
Cost of sales (33,571) (26,835) 25.1
(ii) higher sales recorded by Commune
GROSS PROFIT 15,920 10,275 54.9 GROSS PROFIT
Other income 772 1,657 (53.4) Rose by US$5.6 million propelled by higher revenues.
Distribution costs (4,096) (3,278) 25.0 Gross margin rose to 32.2% in FY2017 compared to 27.7% in
FY2016 as a result of
Administrative expenses (7,215) (5,770) 25.0
(i) improved factories and supply-chain efficiencies
Other expenses (385) (472) (18.4) (ii) higher revenue and margin contribution from Commune
Share of results of associate (1) 1 NM
Finance costs (33) (59) (44.1) OTHER INCOME
Fell by US$0.89 million in the absence of gains on disposal
of our investment in Rossano
PROFIT BEFORE INCOME TAX 4,962 2,354 110.8
Income tax expense (912) (771) 18.3
DISTRIBUTION COSTS
PROFIT FOR THE YEAR 4,050 1,583 155.8
Rose by US$0.09 million – due mainly to
(i) higher showroom rental costs in Singapore
OTHER COMPREHENSIVE INCOME:
(ii) higher logistics costs for increased shipments
Gain on revaluation of in Vietnam and China
properties, net of
deferred tax liability 2,329 46 4,963.0
ADMINISTRATIVE EXPENSES
Translation differences from
Rose by US$1.4 million – due mainly to higher staff costs
consolidation of foreign
operations (635) (470) (35.1)
Other comprehensive OTHER EXPENSES
income (loss) for the year 1,694 (424) 499.5 Fell by US$0.09 million in the absence of impairment losses
Total comprehensive income
for the year 5,744 1,159 395.6 FINANCE COSTS
Fell by US$0.03 million – due to lower borrowings
NM: Not meaningful
PROFIT ATTRIBUTABLE TO OWNERS OF
THE COMPANY
As a result of the above, our Net Profit rose to US$4.1 million
in FY2017 compared to US$1.6 million in FY2016
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RESULTS
AT A GLANCE
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
As at June 30
CURRENT ASSETS
CASH AND BANK BALANCES
Group We had US$8.4 million cash as at 30 June 2017. Cash balance
2017 2016 increased – due mainly to
ASSETS US$’000 US$’000 (i) cash received from the disposal of investment property
in Vietnam
CURRENT ASSETS (ii) positive operating cash flows
Cash and bank balances 8,352 4,607
Trade receivables 4,294 3,528 TRADE RECEIVABLES
Rose by US$0.8 million to US$4.3 million with trade
Other receivables 2,780 2,573
receivables turnaround time improved to 32 days in FY2017
Inventories 6,727 6,883 from 35 days in FY2016
22,153 17,591
Assets classified as held for sale – 2,448 OTHER RECEIVABLES
Including non-current portion, rose by US$0.8 million – due
TOTAL CURRENT ASSETS 22,153 20,039 mainly to the deposit placed for the purchase of land and
buildings in Vietnam
NON-CURRENT ASSETS
INVENTORIES
Investment in an associate 3 11
Fell by US$0.2 million – due mainly to improved supply chain
Club memberships 207 208 efficiencies resulting in lower raw materials and work-in-
progress stocks
Property, plant and equipment 15,028 12,085
Other receivables 548 –
ASSETS CLASSIFIED AS HELD FOR SALE
Deferred tax assets 32 24
Fell by US$2.5 million as the disposal of investment
TOTAL NON-CURRENT ASSETS 15,818 12,328 properties in Vietnam was completed during the year
TOTAL ASSETS 37,971 32,367
NON-CURRENT ASSETS
PROPERTY, PLANT AND EQUIPMENT
Rose by US$2.9 million – due mainly to
(i) valuation increase of buildings in Vietnam
(ii) additions of property, plant & equipment