[SKPRES (7155) - AGM Details]

✅ Q: The first phase of the SKP BM device is ready and production will begin in FY2020. What is the production capacity of this device? How much turnover is this business expected to contribute over the next 2 years? Will this new business rely more on existing or new customers?

A: We predict a capacity of 17 million points per month. This business is expected to contribute 20 million in annual turnover over the next 2 years. This new business will depend on existing and new customers.

✅ Q: Since the segment report does not have such information, please do provide the turnover and profit of Non-EMS segment.

A: In FY2019, the turnover and profit after tax (PAT) of the Non-EMS segment were 420 million and 31 million, respectively.

✅ Q: In FY2019, 74% of the turnover is from plastic products of a large customer, but this turnover has fallen. What is the reason for this decline? How much turnover is expected to get from this big customer in the next 2 years? Does the company plan to reduce single customer concentration risk?

A: The main reason for the decline in turnover from large customers is the decrease in production and market demand. In the future, through the company's customer guidance, we expect to achieve higher capacity utilisation and increase production. We understand the issue of single customer concentration, and we are also looking for potential new customers. As for the ongoing China-US trade war, we have received some inquiries from new multinational companies.

In addition, in the Non-EMS segment, we are also looking for opportunities to provide more packaging and plastic products to our existing customers, namely Unilever and Nestle.

✅ Q: How do you classify your products and what percentage of your turnover? Which segment does Packaging belong to?

A: As of now, we divide our products into EMS and Non-EMS. EMS accounts for 75% of turnover and Non-EMS accounts for 25%. Packaging is a Non-EMS product.

✅ Q: What is the current cost structure of EMS?

A: What we can calculate is the cost of raw materials, which accounts for about 45% to 50% of turnover.

✅ Q: What is the cost structure of the PCBA division?

A: This depends on what product, generally it accounts for 65% to 75% of turnover.

✅ Q: Dyson, the company's main large customer, plans to go to Singapore and has great ambitions. Does the company get some business opportunities or benefits from this?

A: I don't think we can disclose it easily.

✅ Q: Why does the company's turnover keep falling? When do you expect the company's turnover to resume growth?

A: We cannot disclose too many questions about the next financial report. But if you have an outlook reading our latest quarterly report, I believe that the turnover in the next quarter will grow.

✅ Q: Are your PCB materials produced by yourself or picked up from outside?

A: We have started our own PCB production factory, which is used to make our own products as well as Dyson products.

✅ Q: What is the Utilization rate of this factory?

A: The current utilization rate is still low, and it will gradually increase.

Louis Yap