AR 20 2 02 10 71 17 6 A NA N N N U U A A Company Registration No.: 198001299R L L 28 Defu Lane 4 | Singapore 539424 R R T: +65 6282 9882 EE F: +65 6287 7328 PP OO E: [email protected] RR 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] KODA LTD AR 20 1 17 KODA LTD AR 20 3 17 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. KODA LTD AR 20 5 17 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 AR KODA LTD 6 20 17 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$1.4 million in 2017 if you approve into one main location; the latest dividends which we have just – We invested in new machines and declared in this coming AGM. equipment for higher productivity; – We expanded Commune’s business well in China; and KODA LTD AR 20 7 17 RESULTS AT A GLANCE CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Year ended June 30 2017 2016 Change US$’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 AR KODA LTD 8 20 17 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