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Safe Harbor Statement

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Cash and equivalents $ 3,656,000. Short-term marketable securities $ 250,000 ... Johnny Ng, marketing manager. Mr. Ng has been working in the company for over ... – PowerPoint PPT presentation

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Title: Safe Harbor Statement


1
  • Ka Wang Holding, Inc.

2
Safe Harbor Statement
  • Forward-looking statements and GAAP
  • This presentation contains forward-looking
    statements, including, without limitation, those
    regarding expectations for market growth and
    development expectations for growth and
    profitability anticipated synergies. Statements
    including the words believe, expect,
    anticipate, foresee, or similar expressions,
    are also forward-looking statements. Since these
    statements are based on current plans, estimates
    and projections, they involve risks and
    uncertainties, which may cause actual results to
    materially differ from those expressed in such
    forward-looking statements. These risks and
    uncertainties include, but are not limited to
    (1) unexpected costs (2) operating factors (3)
    industry conditions and (4) general economic
    conditions.
  • Except where otherwise noted, all financial
    information reflected herein is determined on the
    basis of U.S. generally accepted accounting
    principles (GAAP).

3
Company Overview
  • Ka Wang Department stores is the leading
    specialty retailer of high-end clothing to men
    and women in the Far East.

4
The Chinese Economy and Retail Market
  • Per-Capita disposable income in towns and cities
    increased 10.2 in the first half of 2006, while
    rural incomes jumped 11.9.
  • Chinas economy grew 11.3 in second quarter 06,
    the fastest pace in more than a decade.
  • Sales of clothing and textiles rose over 18 for
    2006.

5
Mission Statement
  • Ka Wang is committed to dressing China with
    high end designer clothing at affordable prices.

6
Attractive Customer Base
  • Men ages 25-55
  • Attractive demographic -
  • The largest Chinese male consumer group
  • High disposable income -
  • Will spend a lot to get the look they want
  • Women ages 18-35
  • Shops in Malls
  • Enjoys social atmosphere
  • Image Conscious -
  • Cares about how they look and will spend to
    get it

7
Online Retail Market
  • For the first time, online shoppers spent more
    money in 2006 on apparel than on computers.
  • Retail spending up 61 from last year and
    expected to be 25 this year.

8
Open New Stores in Key Locations
  • Identified over 100 key locations
  • 35 new stores by the end of FY 2007
  • Focus on fashion markets and malls
  • Leverage existing infrastructure
  • New stores are profitable in first operating
    quarter
  • Capitalize on market opportunities
  • 9 stores opened in 2005
  • 24 stores opened in 2006
  • Less capital investment required

9
Operating Results
  • Statement of Operations (Unaudited) for year
    ending December 31, 2006
  • Net Sales 82,000,000 100
  • Cost of Sales 32,000,000 39
  • Gross Margin 50,000,000 61
  • Selling, General and admin. Expenses 20,500,000
    25
  • Operating Income 29,500,000 36
  • Interest and other income, net 2,460,000
    3
  • Net Income before income taxes 31,960,000
    39
  • Provision for income taxes 5,760,000 7
  • NET INCOME 26,200,000 32

10
Balance Sheet
  • Consolidated Balance Sheet (Unaudited) for year
    ending Dec. 31, 2006
  • Assets
  • Current assets
  • Cash and equivalents 3,656,000
  • Short-term marketable securities 250,000
  • Receivables 1,525,000
  • Inventories, net 42,150,000
  • Deferred income taxes, net 677,000
  • Prepaid and other 700,000
  • __________
  • Total current assets 48,958,000
  • Property and equipment, net 15,250,000
  • Other assets 338,000
  • __________
  • TOTAL ASSETS 64,546,000

11
Balance Sheet, cont.
  • Consolidated Balance Sheet (Unaudited) for year
    ending Dec. 31, 2006
  • Liabilities and owners equity
  • Current liabilities
  • Account payable 2,947,000
  • Accrued liabilities 3,584,000
  • Current portion of capital leases
    250,000
  • Total current liabilities 6,781,000
  • Long term portion of capital leases
    260,000
  • Deferred rent and other lease incentives
    1,375,000
  • Notes payable 875,000
  • Total Liabilities 9,291,000
  • Owners equity 15,000,000
  • Common stock 10,000,000
  • Retained earnings 30,255,000
  • Total owner and shareholders equity
    55,255,000
  • Total liabilities and owners equity
    64,546,000

12
Highlights
  • Jul 19, 2007 -Ka Wang announces projected sales
    and manufacturing will exceed Fiscal Year 2006.
  • Jul 13, 2007 Ka Wang Holding, Inc. announces
    the opening of
  • their newest store in Macau.
  • Jul 11, 2007 Ka Wang Holding, Inc. announces
    their wholesale division sales are expected to
    double in 2007.
  • Jul 2, 2007 Ka Wang Holding, Inc. announces the
    signing of a letter of intent to acquire a chain
    of clothing stores in china.
  • May 23, 2007 Ka Wang Holding, Inc. announces
    record sales and earnings for 2006.
  • Apr 27, 2007 Ka Wang Holding, Inc. announces
    intentions to become Major Retailer in Southern
    China.

13
Experienced Management Team
  • Mr. Mio Lok Tim, CEO and founder of the company.
  • He founded the company in 1980 when he was 22
    years old. Working from the ground level up, he
    created the retail store empire through expansion
    and acquisition. From one store in 1980, now he
    has over 70 stores and has his own manufacturing
    facility. His success has been recognized around
    the country and in the industry. He is the
    chairman of the Macau International Business
    Trade Development Council. He is the director of
    the Zhongshan Association of Guangdong, China. He
    is the honor chairman of the Asian Business
    Council Association of China. He has sponsored
    numerous charity activities in China.
  • Ricky Gao, President
  • For the last five years Mr. Gao has been the
    president of the company. He has a bachelor
    degree of business administration at the
    Zhongshan university. Ricky has been working in
    the industry for over 15 years. Before joining
    Ka Wang, he owns a chain of retail stores in
    Guangzhou and was acquired by Ka Wang in 2002.
  •  
  •  

14
Experienced Management Team
  • Wong Ut Ngan, chief designer for the company.
  • She has been working at the company for over 20
    years. Her work has been recognized throughout
    the industry and is one of the prominent names in
    the business. She is a member of the Nation
    commissar of the Chinese Peoples Political
    Consultative Conference representing the Guangxi
    Province. She is also the vice chairman of the
    Tanzhou city Association of Guangdong, China.
  •  
  • Johnny Ng, marketing manager
  • Mr. Ng has been working in the company for over
    ten years. He is responsible for the daily
    marketing of the retail side of the company.

15
Summary
  • Dominant Market Position
  • Experienced Management Team
  • A leader in High End Fashion Retail
  • Strong Results
  • Poised For Growth

16
OTCBB KWGI.PK
  • Issued Outstanding 50,224,969
  • Public Float 2,500,000
  • Authorized 150,000,000
  • CONTACT
  • info_at_kawangholding.com
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