Company Profile Three Main Business Lines
Retail Carries over 50 furniture brands, some of which are international brands such as himolla, Malerba, Gamma, Cornelio Cappellini, Kristalia, Tonelli and Domicil Comprehensive sales network covering physical shops (@31 Mar 2020: 21 POS) and online platforms
Retail of various luxury Retail of various branded branded furniture, targeting furniture, targeting mid high-end customers to high-mid customers (1 POS) (5 POS)
Target customers: www.ulferts.com.hkMiddle to high income group www.ulferts.com.hk
Retail of various branded Retail of “Ulfenbo” products, furniture, targeting mid-range targeting mid-range customers customers (11 POS) (4 POS)
www.ulfenbo.com.hk www.athome.com.hk
Wholesale Special Projects Distribute mattresses and sofas Mainly planning, design, through over 200 dealers, under procuring custom-made furniture 1 self-owned brand, “Ulfenbo” installation for corporate customers www.ulfertsintl.com Issued on 11 Jun 2020 Competitive Advantages Core Competitiveness
Strategic Diversified Comprehensive Retail Locations Product Portfolio Distribution Channel
Ample Strong Brand Excellent Proficient Stock Recognition Customer Services Management Team Diversified Product Portfolio
Offers a wide spectrum of products (catergorised into living room, dining room, bedroom and study room collections) Imported from different suppliers in Europe and Asia “Ulferts Signature” offers custom-made quality and luxury-ended furniture
2 www.ulfertsintl.com Issued on 11 Jun 2020 Competitive Advantages Diversified Product Portfolio
Ulfenbo Premium Mattress Ulfenbo Pillow
Ulfenbo Sofabed
Ulfenbo Adjustable Bed Ulfenbo Sofa
Excellent Customers Shopping Experience “Ulferts Signature” and “Ulferts” showrooms are spacious, displaying full range of products for physical touch and feel by customers Dedicated interior design for harmonious and home-like comfort
3 www.ulfertsintl.com Issued on 11 Jun 2020 Financial Summary Financial Review
Year ended 31 March HK$’000 FY 2018/19 FY 2019/20
Revenue 242,959 218,853
Retail 226,795 198,594
Wholesales & Special Projects 16,164 20,259
Gross Profit 152,264 134,368
Gross Profit Margin 62.7% 61.4%
Net (Loss) (3,978) (11,628)*
*The net loss in 1H 2019/20 was HK$10.3 million. Due to the implementation of effective cost measures coupled with rationalisation of the retail network, the loss situation in 2H 2019/20 was in a more controllable manner. Total Revenue Breakdown
HK$243m HK$219m
93.3% 90.7% Retail Wholesale Special Projects
1.8% 4.3% 4.9% 5.0% 4 FY2018/19 FY2019/20 www.ulfertsintl.com Issued on 11 Jun 2020 Financial Summary
Retail Revenue Mix (By Retail Lines)
FY 2018/19 FY 2019/20
(HK$’000) Mix (%) (HK$’000) Mix (%) Total Retail Sales 226,795 100.0 198,594 100.0 Ulferts / Ulferts Signature 187,155 82.5 153,654 77.4 at.home 7,430 3.3 24,116 12.1 Dormire/Ulfenbo 28,629 12.6 20,674 10.4 Others 3,581 1.6 150 0.1
Cost Analysis
% of Total Revenue FY 2018/19 FY 2019/20
Store Staff Cost 12.3% 12.6%
Office Staff Cost 6.9% 6.5%
Advertising and Promotion Expenses 4.3% 3.4%
Key Balance Sheet Items
@31 March 2019 @31 March 2020
Cash on Hand and Time Deposits (HK$’000) 59,469 63,670
Bank Borrowings (HK$’000) 4,002 Nil
Gearing Ratio (Debts/Total Equity) 3.6% N/A
Inventory (HK$’000) 46,326 36,399
Stock Turnover (Days) 182 157
5 www.ulfertsintl.com Issued on 11 Jun 2020 Retail Network Comprehensive Retail Sales Channels Total POS as of 31 Mar 2020: 21 Total POS as of 11 Jun 2020: 23 Size: 21,700 ft2
1) 275 Chatham Road North, Hung Hom
0 Size: ≈ 3,810-16,750 ft2 0 1) Telford Plaza, Kowloon Bay 2) HomeSquare, Shatin 3) Park Towers, Tin Hau 4) Yuen Long Landmark, Yuen Long 5) Hong On Street, Kornhill Size: ≈ 330-1,940ft2 1) FitFort, North Point 2) Amoy Plaza, Kowloon Bay 3) Wo Che Plaza, Shatin 4) MCP Central, Tseung Kwan O 5) KOLOUR, Tsuen Wan 6) Temple Mall South, Wong Tai Sin Size: ≈ 1,780-6,100 ft2 7) Homantin Plaza, Ho Man Tin 1) Discovery Park, Tsuen Wan 8) Tin Chak Shopping Centre, Tin Shui Wai 2) HomeSquare, Shatin 9) *Dragon Centre, Sham Shui Po 3) Lee Garden, Causeway Bay 10) *Domain, Yau Tong 4) MegaBox, Kowloon Bay 11) **Discovery Park, Tsuen Wan 12) **Fortune City One, Shatin 13) **Sheung Shui Spot, Sheung Shui
*Representing the sales counters in Sincere Department Store **Representing pop-up store opened in FY2019/20 6 **Representing pop-up stores opened in FY2020/21 www.ulfertsintl.com Issued on 11 Jun 2020 Future Strategies Medium-term Prospects Gain market exposure by segment differentiation
High-end Mid-range
Strives to solidify its presence in the Continues to open specialty stores sector by offering luxurious furniture or department store counters for products and masterpieces gaining market share
Undertake brand building campaigns for products Look for potential store expansion, as well as enhancing the online sales platform
Diversified Marketing Strategies
Social media engagements Joint promotions and reward Printed advertisements programmes with banks and TV commercials other renowned institutions Outdoor billboards Periodic discounts Pop-up exhibitions such as seasonal sale, annual sale and stock clearance sale
Special Advertising Promotions
Sponsorship of various social In-store displays community events Social media Sponsorships Others
7 7 www.ulfertsintl.com Issued on 11 Jun 2020 Other Information Shareholding Structure
Emperor Group * Public 75% 25%
* In November 2019, the trademark has been recognized as well-known to the relevant public in mainland China and obtained cross-class protection from the National Intellectual Property Administration, affirming the Group’s wide acknowledgement and its brand value in China. Awards
2019 Service Retailers of the Year – Furniture & Home Accessories Category Quality Service Leader Seasonal Award – Furniture & Home Accessories Category (Apr - Jun, Jul – Sep, Oct - Dec 2019) Quality Service Programme of Hong Kong Retail Management Association
Market Leadership Award in Triple Crown Winner Furniture Retail 2018/2019 Hong Kong Institute of Marketing Hong Kong Institute of Marketing April 2019 April 2019
Investor Relations Contact Anna Luk Janice Au Group IR Director Group IR Manager T: (852) 2835 6783 T: (852) 2835 6799 E: [email protected] E: [email protected] 8 www.ulfertsintl.com Issued on 11 Jun 2020