Kingsmen’s 2010 Annual Report

I just received Kingmen’s Annual Report (AR) for FY 2010 yesterday. The cover design and the cover title are very artistic. In the right way up, the cover says “DIMENSIONS” with “MEN” in red with the letter “E” flipped to the left. When the AR is flipped the other way, it reveals the phrase “TOWARDS NEW” with a Central Business District backdrop. So, in unison, it reads “Toward New Dimensions” with a creative edge. This clearly reveals the artistic side of Kingsmen and this is also evident in the various quality projects undertaken by Kingsmen.

Thumbing through the AR, there were pages with colourful photos of the various business segments of Kingsmen. I was particularly looking for the financial statements as any value investor would do. To my shock, Pages 41 to 56 (consisting of the financial statements) were missing. I asked some fellow investors if they were facing the same plight but it seemed I was one of the very few facing this problem. On a side note, the purpose of this blog post is not to make a fuss out of Kingsmen’s “oversight” or mistake but to highlight Kingsmen’s excellent investor relations that actually followed. Everyone makes mistakes and Kingsmen is not an exception. Back to the topic, I posted my plight in the Valuebuddies forum and I was asked by a fellow forumer to email Andrew Cheng, the IR contact, regarding this issue. I emailed Andrew at 10.02pm yesterday and surprisingly, he replied at 10.27pm using his iPhone, even though he most probably would have knocked off work. He asked for my address so that he could send a new copy over. I thanked him for his excellent IR and for his prompt reply even though I’m only a minority shareholder.

This simple episode reminds me that Kingsmen has the interest of shareholders at heart and that they care for the minority shareholders like me as well. Andrew also added in his email that he’s looking forward to meeting me at the AGM if I’m going down. I felt very touched by his warm gestures. I have a more positive outlook towards Kingsmen now, all thanks to the missing pages in the annual report!

P.S. The soft copy of the AR can be found here.

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6 thoughts on “Kingsmen’s 2010 Annual Report

  1. Kudos is in order for Andrew, the IR contact. It just show that he is a wonderful asset to Kingsmen; but that in itself is not a reflection of Kingsmen’s ‘interest of shareholders at heart’ and to infer otherwise would be silly.

    Just my opinion. Not vested in Kingsmen.

    • Hi Paul,

      Yeah kudos to Andrew!

      Actually this episode by itself might not be reflective of Kingsmen’s overall stand. However, small gestures do matter and when you put this gesture into perspective with the rest of the company culture, one can safely say that Kingsmen’s management has shareholders’ interest at heart. Kingsmen has been involved in share buybacks, management holds a considerable amount of shares and their ROE has been good as well. All these point to a good management which takes care of its shareholders.

  2. Hi FFN,

    Have been following ur blog with avid interest. Keep up the good work!

    A newbie question (hope u don’t mind) – when you calculate free cash flow, do you use ‘cash generated from/ used in operations’, or ‘net cash generated from/ used in operating activities’?

    I will certainly be following this closely. Cheers.

    • Hi Sentinel,

      Thanks for visiting my blog and your positive comments! I will keep on giving the best posts for the benefit of my readers.

      To calculate free cash flow, you use net cash generated from/ used in operating activities minus purchase of property, plant and equipment (under Investing cash flow).

      Hope this helps. Feel free to ask more questions.

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