Download presentation
Presentation is loading. Please wait.
Published byThomasine Hensley Modified over 9 years ago
2
Background 1 Actual and Future Situation 2 Joint Venture: Proposal 3 Investment 4 Proforma 5 Agreement Issues 6 Conclusion 7
3
a.Expomex has been doing business with Lingtong since 2003. Sales Revenue History 1 1 BACKGROUND ii.Accumulate Sales Revenue 2,698.10
4
b.PERFILEX Sales from 2011 to 2014 1 1 BACKGROUND PRODUCTIVIDAD INTEGRAL, S.A. DE C.V. INCOME STATEMENT OF PERFILEX USD CONCEPTS2011201220132014 GROSS SALES 626,479 899,524 793,265 577,370 RETURNS AND DESC 34,087 40,983 94,681 75,900 NET SALES592,392858,541698,584501,470 COST OF SALES 284,763 449,762 377,745 274,938 IMPORT AND FREIGHT COSTS28,47649,47435,88628,044 TOTAL COST OF SALES313,239499,236413,631302,982 53%58%59%60% EXPENSES ADMINISTATIVE EXPENSES53,75068,68355,88740,118 SELLING EXPENSES78,68490,14773,35152,654 OPERATING EXPENSES10,67012,87810,4797,522 TOTAL EXPENSES143,104171,708139,717100,294 24%20% PROFIT OR (LOSS)136,048187,597145,23698,194 23%22%21%20%
5
c.Our sales is not increased as much as we must do, due to different factors: i.Price competition. See details in Actual Situation. ii.Dealers Buying only Rental material and does not increased aluminum profiles purchase. Big volume dealers are buying direct to extruder suppliers in Mexico. iii.Standard products are selling via extruder companies at international aluminum price. iv.Several dealers see EXPOMEX as competitor. v.Cost reduction in dealers due to recession in Mexico. 1 1 BACKGROUND d.American companies have to paid higher duties to import the aluminum profiles from China. Some are from 30% to 300%. e.Lingtong Group wanted to increased sales volume in America. f.Logistic and US Custom objections for aluminum profiles from China going to Mexico.
6
2 2 ACTUAL AND FUTURE SITUATION a.Actual Cost from China. 2009 Mar - New special Discount for Competitive Products Discount from LINGTONG (begin) + Profiles40% + Accesories30% + Tension Lock20% Discount S10848% Z46048% M302A48% Z991F41% ZS32145% DG63230%
7
2 2 ACTUAL AND FUTURE SITUATION b.Actual Cost for Transportation and Broker fee. Cost of Products (Lingtong Invoice = LTZX140325A) + Value of Invoice from Lingtong $ 62,635 + Value of Invoice from Lintel $ 10,260 Value of the Container 40 HQ $ 72,895 Transportation and Broker Fee + Ocean Freight $ 5,096 + Broker Expenses $ 1,177 + Other Tax Duties $ 882 + Freight (Laredo - Monterrey) $ 300 $ 7,45510.23%
8
2 2 ACTUAL AND FUTURE SITUATION c. Actual Prices, Cost and Margin for Main Products. Cost fromLingtongCompetitorDistributorMargin by ProductMark Up LingtongFOB MexPrices CompetitorLingtongMEXICO S108 4.424.875.579.801.142.01101.2% Z460 3.243.573.957.181.112.01101.1% M302A 8.579.4410.1718.991.082.01101.1% Z991F 0.690.761.471.531.932.01101.2% ZS321 14.0015.4325.7034.991.672.27126.8% DG632 12.4213.6918.7023.481.371.7271.6%
9
2 2 ACTUAL AND FUTURE SITUATION d.Proposal Prices, Cost and Margin on Rest of Products. Mark UpProposalLingtongFreight &Cost from Precio China Precio USD% Discount MEXICODist PricesFOB MexCustomLingtong S10870%6.984.110.383.73¥52.698.5056.1% Z46070%5.062.980.282.70¥38.686.2456.7% M302A70%13.267.800.727.08¥102.1716.4857.1% Z991F105%1.500.730.070.66¥7.201.1642.8% ZS321105%30.3514.801.3713.43¥158.0025.4847.3% DG63290%21.0911.101.0310.07¥110.0017.7443.2% i.Reduce Prices in México to be almost same price as Competitor on Main Products. ii.Reduce the mark up in México for competitive products to 70-60%. iii.Reduce the mark up in México for the rest of products to 80%. iv.Adjust Prices from Lingtong China to get the above results.
10
a.Strengths and Opportunities 3 3 JOINT VENTURE: PROPOSAL 1.Lower importation tariffs to USA, Central and South America market. 2.Lower price to dealers getting better cost. 3.Growth the market of North America, Central and South America. 4.Introduce products to new segments (car dealers, shopping centers, etc). 5.Specialized focus in exhibit. 6.Growth the sales for America. 7.Better state of art in American vs. competitors. STRENGHTS OPPORTUNITIES 1.Increasing Asian investment in Mexico (China, Korea, Japan). 2.Reach in other markets in America. 3.Market growth in the next years for Mexico, Colombia, Chile, Peru, Costa Rica, Panama, USA and Canada.
11
b.Weakness and Threats 3 3 JOINT VENTURE: PROPOSAL 1.Lower margin due to price reduction. 2.Higher freight cost from Mexico to other regions. To be determinate. 3.Higher fiscal control in Mexico and China. 4.Review the way to pay shareholders. WEAKNESS THREATS 1.Some competitors want to do the same strategy. 2.More potential competitors in our market. 3.Increase the inflation in Mexico or China. 4.Higher shipping cost in the future. 5.The aluminum international price will increase too much in the future.
12
c.Proposal. 3 3 JOINT VENTURE: PROPOSAL Start a joint venture company between Lingtong Exhibition System from China and Expomex from Mexico to operate a new company that will sell all the Lingtong products to America market. This market include: USA, Mexico, Canada, Alaska, Centro america countries, Caribean Countries and South America countries. Expomex will sell this products to end users and can do all the rental business. Sharing investment will be as Lingtong 49% and Expomex 51% Lingtong send a person to working as Vice-General Manager and some technical people to support operation. Proposal company name: Lingtong America, S.A. de C.V. Location: Monterrey, MEXICO (see picture next slide) FIRST 2-3 yrs
13
3 3 PROPOSAL WAREHOUSE
14
a.Operational Equipment. 4 4 INVESTMENT OPERATIONAL EQUIPMENT Cutting Machine Table Cut 4,000 Punching Machine 3,000 Rolled Machine 4,500 Drilling Machine 850 Pneumatic System Tubes, Compressor 2,000 Neumatic Guns & Screws 4 pieces 300 Racks - Profiles & Accessories Racks 45,000 Warehouse Aconditionate 6,000 Lift Truck (Electric) 15,500 Patin (manual Lift) 1,200 Tools 2,500 Tables For Cutting 1,150 Tables For Assembly 3 pieces 2,500 Tables For Racks Accessories 2,750 Wood WorkShop Machines 3,500 94,750
15
b.Management Equipment 4 4 INVESTMENT MANAGEMENT EQUIPMENT Computer and Printers 3-PC + 2 Printers 3,500 Auto (leasing) Downpaym 30% value 2,900 Communication System & Internet Phone, Extensions, Router 2,450 Desks and Chairs 4 Desks, 12 Chairs, 1,540 Files Storages 4 Files with 4 Drawers 440 Camaras and Monitor System 6 Camaras & 1 VCR 1,300 Signage and Boards Control kit / 2 Control Borads 1,000 Outdoor Signage Channel Letter / Vinyl 1,540 Computer Software SAI / Labor / CRM 2,500 Security System (sensors) Kit / 4 Sensors 1,500 Recruiting and Training 1 month / travel 4,500 Other 5,000 28,170 TOTAL INITIAL INVESTMENT122,920
16
c.Inventory. 4 4 INVESTMENT INVENTORY First Container Order in Dec, 2014 80,000 Second Container Order in Jan 5, 2015 80,000 Third Container Oredr in Feb 1, 2015 80,000 TOTAL INVENTORY TO START BUSINESS 240,000 GRAN TOTAL INVESTMENT362,920
17
a.Administrative and Operational Expenses. 5 5 PROFORMA USD 2,015 2016 2017 2018 2019 ADMINISTRATIVE & OPERATION EXPENSES Per Month SALARIES Manager12,50030,000132,100134,347136,751139,3241 Sub-Manager11,75021,000122,470124,043125,726127,5271 Assistant-Logistic16007,20017,70418,24318,82019,4381 Production Supervisor11,00010,000112,840113,739114,701115,7301 Warehouse Head18009,600110,272110,991111,760112,5841 Production Operators260014,400230,816441,216553,911676,9138 Driver17008,40018,98819,617110,290111,0111 Administrative People87,950 8 10 11 12 14 SOCIAL BENEFITS30% 30,18030%37,55730%42,65930%48,58830%57,75830% Warehouse Rent / 2000m2 4,80057,600 59,904 93,450 97,188 151,614 Security warehouse 3504,200 4,493 7,009 7,289 11,371 Insurance Warehouse 1201,440 1,498 2,336 2,430 3,790 Services (Light, Water, Gas) 5506,600 7,260 9,345 9,719 15,161 Maintanance 1001,200 1,258 1,962 2,041 3,184 Small Car (Leasing Plan) 2302,760 Sub/Manager Housing 6007,200 7,560 7,938 8,335 8,752 Travel for Operation & Sub Manager44,20016,800425,200633,600842,0001042,00010 Gas 1802,160 2,268 2,381 2,500 2,625 Local Freights 1201,440 1,541 1,649 1,764 1,888 Accounting & Goverm report 2503,000 3,150 3,308 3,473 3,647 235,180 279,638 350,594 390,047 497,074
18
b.Sales Expenses. 5 5 PROFORMA USD 2,015 2016 2017 2018 2019 SALES EXPENSES SALARIES SOCIAL BENEFITS30%4,248 6,818 9,727 13,010 13,921 Salesman259014,160222,727332,424443,367546,4025 Comisions- Manager/SubManager1% /sales Comisions-Salesman1.5 to 2 % / Sales Travel Expenses16 x $3,50056,000 64,400 80,500 100,625 125,781 Mailing and Packing 4505,400 8,505 9,823 11,346 13,104 Brochures and Catalog 3,800 4,370 5,026 5,779 6,646 Advertising 5,000 5,750 6,900 8,280 9,936 Telephone and Internet 1853,200 3,840 4,608 5,530 6,636 TradeShow Participation 4 sho ws7,50030,000 37,500 46,875 58,594 73,242 121,808 153,910 195,882 246,530 295,669
19
c.Sales and Profit Forcast. 5 5 PROFORMA LINGTONG AMERICA, S.A. DE C.V. PROJECTION OF SALES LINGTONG USD CONCEPTS20152016201720182,019Total GROSS SALES1,444,5002,889,0004,815,0006,741,0008,667,00024,556,500 RETURNS AND DESC94,500189,000315,000441,000567,0001,606,500 NET SALES1,350,0002,700,0004,500,0006,300,0008,100,00022,950,000 COST OF SALES (Lingtong)750,0001,500,0002,500,0003,500,0004,500,00012,750,000 IMPORT AND FREIGHT COSTS82,500165,000275,000385,000495,0001,402,500 TOTAL COST OF SALES832,5001,665,0002,775,0003,885,0004,995,00014,152,500 62% CONTRIBUTION MARGIN517,5001,035,0001,725,0002,415,0003,105,0008,797,500 38% EXPENSES ADMIN & OPERATION EXPENSES235,180279,638350,594390,047497,0741,752,533 SALES EXPENSES121,808153,910195,882246,530295,6691,013,799 COMISSIONS ( 2.5% to 3% )33,75081,000135,000189,000243,000681,750 TOTAL EXPENSES390,738514,548681,476825,5771,035,7433,448,082 29%19%15%13% 15% PROFIT OR (LOSS)126,762520,4521,043,5241,589,4232,069,2575,349,418 9%19%23%25%26%23% PROFIT OR (LOSS) - CHINA 49%62,113255,021511,327778,8171,013,9362,621,215 PROFIT OR (LOSS) - MEXICO 51%64,649265,431532,197810,6061,055,3212,728,203
20
Thank you.
Similar presentations
© 2025 SlidePlayer.com Inc.
All rights reserved.