Attached files
Exhibit 99.2
PACIFIC BEPURE INDUSTRY INC.
(OTCBB: PBEP)
January 2010
SAFE HARBOR STATEMENT
Information Regarding Forward-Looking Statements: Except for historical
information contained herein, the statements made in the presentation are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve known and unknown risks and uncertainties, which may cause our actual
results in future periods to differ materially from forecasted results. These
risks and uncertainties include, among other things, product demand, market
competition, and risks inherent in our operations. These and other risks are
described in our filings with the Securities and Exchange Commission.
COMPANY OVERVIEW
* Pacific Bepure, a Delaware corporation.
Acquired Peakwayand its Chinese subsidiaries in November 2009.
Headquartered in Fujian Province, China.
OTCBB: PBEP.OB
* Our principal business is to develop, research, design, manufacture and
market sports and casual footwear mainly in the PRC. Our products are sold
in 24 provinces and administrative regions in China as well as to South
America through our distributors.
INVESTMENT HIGHLIGHTS
* Rapid sales growth in key growth segment (womenssports and casual shoes) in
world's largest footwear market (PBEP: +25% (e) 2009, + 49% (a) 2008)
* One of China's most well liked and widely known brands. Distributors in 22
provinces with hundreds of retail stores, plus new Internet thrust
* Focus on 2nd and 3rd tier cities where rapid economic growth is expected to
continue; China's GNP in Q4 2009 was + 9 % approximately
* Focused, successful international expansion to high growth markets in South
America (20% of revenues)
* Strong balance sheet and cash flow
* New manufacturing facility to be completed this year will increase
production by 50% and reduce costs
* As an industry leader, anticipates growth through acquisitions as well as
organic growth
* Highly regarded senior management and skilled workforce
BRAND IMAGE
* The Company mainly markets its products under the brand name "Bepure"or
"Baopiao".
* In 2006, was awarded "Chinese Well-Known Trademarks"and "Chinese Famous
Brand Products".
* In 2005, was named top ten most satisfying brands for Chinese consumers.
* In 2002, was certified ISO 9001:2000 quality control system.
HONORS & AWARDS
(1) Executive Director Unit of Fujian Footwear Industry Association
(2) Employees Care Enterprise
(3) 2003-2005 Brand-making Pioneer Enterprise of QuanzhouCity
(4) Well-known Trademark of Fujian Province
(5) Well-known Trademark of China
(6) National Medium-sized Industrial Enterprise
MANUFACTURING FACILITIES
* Current factory:
123,786 square feet with three production lines, yet 26% production is
outsourced.
* New production facilities:
621,384 square feet currently under construction, 4 more production lines,
expected to commence production in 2010. Will enable us to reduce costs and
increase capacity by 50%.
PRODUCT PORTOFOLIO
* Baopiaobranded sports and casual products target both female and male
customers, while our products are mainly available for women.
* Baopiao'sconsumers are aged between 18 and 48 years old. In particular, we
target consumers aged between 20 and 35 years old.
* In 2010, we adopted "Travel Time"as our corporate slogan. Four product
lines for the PRC market: (1)Urban Travel, (2)Business Travel, (3) Outdoor
Travel and (4)Free Travel. All of the four series are widely recognized by
Chinese consumers.
URBAN TRAVEL
* Target consumers aged between 20 and 38 years old, including young female
office workers and housewives, who have interests in traveling and
shopping.
* The main styles of this series include platform shoes, height increasing
shoes, hidden-heels shoes and airline hostess shoes with very thick soles
and heels.
* Raw materials of Urban Travel Series include suede, leather, buffed
leather, imitation leather, composite fabric, and substrate materials are
PU (Polyurethane ) and rubber.
BUSINESS TRAVEL
* Targeted the middle and senior female managers, white-collar and
businesswomen aged between 28 and 38 years old.
* applied the esthetic and fashion elements to this series.
* Raw materials of the products include leather, buffed leather, flexible
polymers, composite fabric, and the substrate materials are PU and rubber.
OUTDOOR TRAVEL
* Targeted consumers are between the ages of 18 and 38 and includeboth male
and female who like outdoor activities, especially walking and hiking.
* Raw materials of products include split leather and suede leather and the
substrate material is rubber. Bright colors are frequently utilized to
design and produce our attractive outdoor footwear.
FREE TRAVEL
* Offers a range of classic footwear for customers who are seeking good
quality and comfortable shoes.
* Helps customers seek relaxation. Both comfort and convenience are
emphasized to match the daily wear.
* They are featured with attractive colors.
* Raw materials of products include composite fabric, and suede leather and
the substrate material is rubber.
Brand:
1. Long History & New Conception;
2. Best Awareness on Female Casual Market
COMPETITIVE ADVANTAGES
Industry: Performance:
Huge Footwear Market Steady Growth From
the Inception
Sales Model: Future: Management:
1. "Sucessful Distributors Based on the world Professional and
+ Agents" Sales Mode; capital of shoes: Experienced Senior
Management & Well-
2. Long-term & Stable 1. Easy to expand trained and Skillful
Relationship with Via M/A; Staff
Channels
2. Sustainable
Competitive
Advantages
HUGE FOOTWEAR MARKET
* China: the largest footwear exporter for American, European Union and
Russian;
* In 2008, China's shoes export: $29.66 billion
* Jinjiang: Capital of Shoes & third footwear base in China;
* Chinese Regional Footwear Brands: 80% of the market share;
* China: the largest market for womensfootwear --female population: 624
million or 48% of total population;
* Womens footwear consumption: >8 billion pairs of shoes, approximately $48.5
billion by 2010 in China;
Women shoes show a steady upward trend in sales. There is a huge potential in
China's consumer market for ladies footwear. Bepureis a popular brand among
Chinese women consumers.
EXTENSIVE MARKETING
New Store Opening
Retail Store
Bepure Distributors
Jinjiang Shoe Industry Promotion Conference
2009 Guangzhou International Exhibition
Bepure 2008 Autumn-Winter Collection Summit
SALES MODE
* Bepureentered into annual distributorship agreements with our distributors
which set out key terms, such as the geographic area within which they are
authorized to sell our products, credit and payment terms and annual sales
and network expansion targets.
* In addition to our traditional wholesale model, Bepurehas started to employ
"On-line Sales"model as a supplementary sale approach since February 2009.
Customers in China can browse over 300 styles of footwear (including
different colors ) among our five products series and place orders through
our online retail store ( www.baopiao.com/shop or www.bepure.com.cn/shop).
EXTENSIVE RETAIL BUSINESS
Store in Taiyuan, Shanxi
Store in Shijiazhuang, Hebei
Store in Jinan, Shandong
Store in Kunming, Yunnan
Store in Chengdu, Sichuan
Store in Luoyang, Henan
PRODUCTS R&D
1. In 2008, our subsidiary, Pacific Shoes introduced the CAD/CAM software
developed by a famous footwear designer from Taiwan to facilitate automatic
sample design.
2. As of November 5, 2009, we have 30 staff members dedicated to research and
development, including 4 market analysts, 6 pattern makers and 20 computer
designers and sample makers. All of our research staff has experience in
the footwear industry.
3. The amount we spent on research and development activities during the
fiscal years ended December 31, 2007 and 2008 were $19,000 and $85,000 and
accounted for approximately 1%, and 4%, respectively, of our total
revenues.
Conductive Computerized Template Cutting
R&D Centre
Computer Aided Draft and Design
Shoes Sample Making According to the Design
BRAND PROMOTION
Bepureprimarily utilizes the internet, magazines and outdoor displaysin our
media advertising. We also organize other activities to promote Baopiaobrand,
some of which are run by our distributors, including promotional events during
the holidays and the end of seasons. We hold promotion activities in various
forms focusing on the seasonal new product launch. These promotion activities
include discount sales, gifts, outdoor advertisements, magazine advertisements,
on-line activities and the like. Our distributors also contribute to the
marketing and promotion of our brand by conducting local promotions within their
geographic areas.
FUTURE STRATEGIES
In order to promote the overallcompetitiveness, the Company has
pursued the following financial strategy while maintaining productivity.
1. Invest more in brand stores expansion especially self-support stores;
2. Continuously increase the expense of new products R&D and promotion;
3. Reinforce the brand building and continuously promote the brand value
FINANCIAL SUMMARY: Revenue & Net Income in 2007, 2008 and 2009
Net Income Sales Revenue
---------- -------------
2007(A) $2,700,881 $13,488,136
2008(A) $4,436,018 $20,131,118
2009(E) $25,163,898
Sales Revenue
* An increase of $6,642,982 or 49.25% in the year ended December 31, 2008
compared with the same period in 2007;
* An estimated increase of $5,032,780 or 25%in the year ended December 31,
2009 compared with the same period in 2008
Net Income
* An increase of $1,647,137 or 59.06% in the year ended December 31, 2008
compared with the same period in 2007;
* Net Income for 2009 to be reported in March, '10
FINANCIAL SUMMARY: Margins & EPS in 2007, 2008 and 2009
Margins
2007(A) 2008(A) 2009(E)
------- ------- -------
20.68$ 22.04%
Earnings Per Share
2007(A) 2008(A) 2009(E)
------- ------- -------
$0.19 $0.30
* An increase of 1.36%for the year ended December 31, 2008 compared with the
same period in 2007;
* Margin for 2009 to be reported in March, '10
* An increase of $0.11 for the year ended December 31,2008 compared with the
same period in 2007;
* EPS for 2009 to be reported in March, '10
FINANCIAL ANALYSIS: Revenue (a) in 2007
PRC Market $10,709 79.40%
International Market $ 2,779 20.60%
The Eastern Section of PRC $ 2,334 17.30%
The Northern Section of PRC $ 4,829 35.80%
The Southern Section of PRC $ 3,546 26.29%
Note:
1. The eastern section refers to the city of Shanghai and the provinces of
Zhejiang, Jiangsu, Anhui, Hubei, Hunan, Jiangxi and Shandong in the PRC;
2. The northern section refers to the city of Beijing and the provinces of
Xinjiang, Gansu, Ningxia, Hebei, Henan, Tianjin, Shanxi, Inner Mongolia,
Liaoning, Jilin and Heilongjiang in the PRC;
3. The southern section refers to the city of Chongqing and provinces of
Guangdong, Guangxi, Fujian, Hainan, Sichuan, Guizhou, Yunnan and Tibet in
the PRC. $4,829$3,546$2,334
FINANCIAL ANALYSIS: Revenue (a) in 2008
PRC Market $16,900 83.95%
International Market $ 3,231 16.05%
The Eastern Section of PRC $ 2,731 13.57%
The Northern Section of PRC $ 8,340 41.43%
The Southern Section of PRC $ 5,829 28.96%
SENIOR MANAGEMENT:
Chairman and CEO
* Mr. Haiting Li
Mr. HaitingLi founded the Company in 1993. He became a director and our Chief
Executive Officer and General Manager on November 11, 2009 when we completed our
reverse acquisition of Peakway. Before the reverse acquisition, Mr. Li had
served as the chairman and CEO of Pacific Shoes since 2000 and as the Chairman
and CEO of Baopiao Shoes since 2006. Mr. Li served as the general manager of
Pacific Shoes from 1993 to 2000. He served as the manager of Jinjiang Xinxing
Footwear Factory from 1989 to 1993. He worked as the technician of Footwear
Jinjiang Handai Factory from 1982 to 1989.
SENIOR MANAGEMENT: CFO
Mr. Zhong Zhao became our CFO on November 11, 2009 when we completed our reverse
acquisition of Peakway. Mr. Zhao had been the CFO of Pacific Shoes and Baopiao
Shoes since January 8, 2009. He served as the financial manager of Beijing
Telestone Technology Corporation (NASDAQ:TSTC) from March 2004 to December 2008,
and as the financial manager of Hubei Dangyang Hydraulic Engineering Bureau from
July 1990 to 2003.
CONTACT US
China Headquarters
Haiting Li
Chairman & CEO
Address: No. 78 KanglongEast Road,
Yangdaili, Chendai Township Jinjiang
City, Fujian Province, China 362218
Tel: (86 595) 8677 0999
Fax: (86 595) 8677 5388
Web: www.baopiao.com
In the U.S.:
Ken Donenfeld
DGI Investor Relations
212-425-5700
donfgroup@aol.com or
kdonenfeld@dgiir.com
Thank You Very Much
