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The largest, vertically integrated gas grill manufacture in Asia Aug, 2004 Welcome to Grand Hall.

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Presentation on theme: "The largest, vertically integrated gas grill manufacture in Asia Aug, 2004 Welcome to Grand Hall."— Presentation transcript:

1 The largest, vertically integrated gas grill manufacture in Asia Aug, 2004 Welcome to Grand Hall

2 Presentation Outline I. Company Profile II. Products & Market III. Operating Performance IV. Development Strategy

3 Company Profile Established in 1976 Main Products: -- Outdoor Grills -- Gas Valve -- Outdoor Heater 65 Employees (Taiwan) Paid-in Capital: US$21mn(72,423,000 shares ) Market Capitalization: US$281mn(07/30/04’) Code Number: 8941 TT -- Listed date: Jan. 20, 2003

4 GRAND HALL CORE VALUES:   Customer - centric  Quality driven  Continuous innovation and improvement excellence  Win / Win long –term partnerships  Luxury products at affordable prices

5 Grand Hall Vertical Operation Grand Hall Enterprise offers Research and Development, Quality Control, Engineering, Manufacturing, Shipping and Merchandising, all managed from headquarters in Taipei, Taiwan.

6 Value Chain The Original Idea Marketing Company

7 Smiling Curve R&D in Taiwan Manufacturing in China SalesService Value added

8 Manufacturing Strengths

9 Strategic Alliance Company Name GH’s share holdings ProductsLocation GH ZHUHAI65%Outdoor grillsChina PROKAN10%Outdoor grillsChina RST--Outdoor grillsChina Grand Gas27%Gas valveTaiwan GH USA100% Marketing support unit & customer service U.S. FOCUS16%Grills sales and customer serviceAustralia

10 Grill Capacity GH ZHUHAIPROKANRST Total Workforce 5001,1001,600 Square feet471,484648,000502,520 Capacity250,000600,000760,000

11 After sales service & Marketing

12 Presentation Outline I. Company Profile II. Products & Market III. Operating Performance IV. Development Strategy

13 Grill Market in North America Gas Grills: 63% Charcoal Grills: 35% Electric Grills: 2% Demand for 15mn units - Hearth, Patio & Barbecue Association estimate North America Outdoor Grill Demand Gas Grills 63% Electric Grills 2% Charcoal Grills 35%

14 Grill Distribution Channels

15 25 Major Competitors & Price Distribution in Gas Grill Market High End $700 ↑ (5%) WeberJenn-AirKitchen-Aid WeberCharbroilColeman CharbroilColemanThermos Medium $300-$699(15%) Low End $299 ↓ (80%)

16 Grand Hall’s market share Grand Hall’s Shipments North America Gas Shipments Grand Hall’s market share (%) 199989,9518,639,8331.04 2000211,7239,320,0002.27 2001324,3438,516,0003.81 2002586,9599,583,0006.13 2003605,0058,446,5007.16

17 Major Customers U.S. SEARS SAM’S CLUB WCC BBQ GALORE Australia FOCUS K-MART RINNAI

18 Presentation Outline I. Company Profile II. Products & Market III. Operating Performance IV. Development Strategy

19 Balance Sheet Highlight – Jun 31, 2004 NT$mn Cash and Cash Equivalents 897 Long-term Investments1,037 Fixed Assets442 Total Assets2,958 Current Liabilities1,423 Other Debts63 Stockholder’s Equity1,472

20 Sales Breakdown by Products 2001200220031H2004 NT$mn% % % % Grills 2,42972.764,93081.835,56485.143,73988.08 Gas valve 53215.9479713.236249.553568.39 Outdoor heater 611.81200.3370.10461.08 Accessories & parts 3179.492784.613405.211042.45 Total 3,339100.006,025100.006,535100.004,245100.00

21 Sales Breakdown by Area 2001200220031H2004 NT$mn% % % % North America 2,75682.545,41789.95,72887.653,91492.20 Australia53716.085048.3679512.163227.59 Europe341.02931.5490.146 Others120.36120.230.0530.07 Total3,339100.006,025100.006,535100.004,245100.00

22 Operating Performance NT$mn 200120022003 $%$%$% Sales revenue3,3391006,0251006,535100 Cost of goods sold2,527764,622775,09678 Gross Profit812241,404231,43422 Operating Profits389128021377012 Net non-operating income36114231913 Pre-tax Profit425139441696115 Net Profit333107231272811 Capital367--477--624-- EPS (NT$)9.05--15.15--11.66--

23 2004 Forecast & 1H Result NT$mn 2004F%1H2004%Achievement Net Operating Revenue 7,077100.004,245100.0060% Gross Profit 1,54421.8294922.3662% Income from Operation 77510.9552412.3568% Net Non-operating Income 1882.66133 3.1471% Pretax Income 96313.6165815.4968% Net Income 73710.4149411.5767% EPS(NTD)* 11.80-7.92-67% * EPS is based on shares outstanding of 62,450,000.

24 2004 Quarterly Forecast Q1(A)Q2(F)Q3(F)Q4(F) Total Net Sales 2,295,1142,034,6131,266,4541,481,1017,077,282 Cost of Sales 1,779,4531,573,1531,007,1331,173,5125,533,251 Gross profit 515,661461,460259,321307,5891,544,031 Pretax Income 338,282331,670113,343179,639962,934 unit : NT (k)

25 2004 Forecast Revenue and Quantity year item 2004 Forecast2003 Actual Q$(k)Q BBQ Grill 670,0206,346,459605,0055,563,634 Gas Valve 4,754,833510,6664,822,709623,978 Outdoor heater 10,96346,4131,3916,819 Parts & Accessories 597,406173,7441,582,145340,211 Total 7,077,282 6,534,642

26 2004 Forecast Investment Income and Loss Company Name GH’s Holding Investment Income(Loss) Grand Gas Inc. 27% 17,893 Legend Lifestyle Inc. 49% 3,113 Grand Hall USA Inc. 100% 20,489 Cybercycle,Inc. 60% (55) Cybertech Ventures, Inc. 100% 6,591 Global-Tech Int’l Inc 100% 7,649 Cyber Vision Trading Co, Inc. 65% 45,660 Total 101,340 unit : NT K

27 Dividend History NT$ 19992000200120022003 EPS4.456.859.0515.1511.66 Cash dividend0.92599 Stock dividend34331.5 Total dividend3.9681210.5

28 Presentation Outline I. Company Profile II. Products & Market III. Operating Performance IV. Development Strategy

29 Future Strategy   Raise market share   New products development   Enlarge customer portfolio

30 Complete Distribution Channels Grand Hall Consumer s Wholesale Club Home Center Department Store Specialty Store

31 New Product Development Water Heater Endless water supply Very precise temp control from 30-60 degree c Little temp variation No harmful emission (NOX, CO) Easy to replace existing unit Self-cleaning structure

32 New Product Development Indoor Cooking Appliance

33 Future Business Allocation Grill Division Gas Valve Division Water Heater Division Indoor Cooking Appliance Division

34 GRAND HALL OUTDOOR KITCHEN SYSTEMS Grand Hall Enterprise Company LTD. 9th Fl., No.298 Rueiguang Road, Neihu, Taipei, Taiwan ROC 114 886-2-26591119 Grand Hall USA, Inc. / Dallas 3838 West Miller Road, Garland, Texas 75041 1-214-3491097 Grand Hall USA, Inc. / Chicago 2500 W. Higgins Road, Suite 1115, Hoffman Estates Estates, Illinois 60195 1-847-7551470 Grand Hall Zhuhai No.6, Jinfeng E. Road, Jinding Industrial park, Tangiawan Town, Zhuhai, Guan Dong. China 86-756-3395000


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