K3

Dear Shareholders,

There are many reasons to invest in a company. Some look for returns – for companies built
on solid foundations and with healthy prospects. Others look for companies that embrace
responsibility for people and the environment. But they all look for companies that are
valuable, that create value and stand for values. This is the type of company K3 strives to be.

K3’s cumulative total shareholder’s return is 11.42%, despite facing tough competition from
the market. Over the rounds our share price has increased from $184.46 to $442.11 per share.
We have seen an increase of 139.67 % share price over the rounds. Our company’s focus has
been to increase the shareholder’s wealth. We have EPS of $ 24.43 at present.

Sales revenue has increased from $1,064,103 to $2,660,039 i.e. by 149.9%. Profit has
increased by 3499.99 % over the rounds. Market share has increased to 9.95 % globally over
the rounds where we have 9.51% market share in USA, 9.58% in Asia and 12.35% in Europe.

We analysed the requirements of each market and tried our best to cater all the markets
differently. Hence, even in bad Market conditions, K3 is the only company that has shown
consistent profits. Operating profit climbed to 36.27% in this fiscal year.

Keeping the long-term view in mind, we had invested in 12 plants in USA and 6 in Asia. This
has helped us tremendously in reducing costs of outsourcing and hence helped us in increasing
profits. The assets have been well diversified between Asia and USA keeping in mind future
uncertainties of trade. Since the beginning focus has been on reducing costs. Although we had
faced some challenges in controlling demand and supply but in recent rounds, we have
efficiently managed our inventory, ending with minimal inventory in the end.

The market is facing price wars between companies; hence, margins have been decreasing
since. US China trade war had increased logistic prices for trade between two countries leading
to rising costs. A lot of competitors have fallen prey to competition and falling prices. We have
faced the storms and stood tough on the waters to navigate through and provide positive returns
for the shareholders.
We have invested much in the promotions which has helped us to gain the market share and
increase profits which in turn helped us to increase shareholder’s wealth.
We invested in R&D and introduces new features for our customers based on their
requirements in different countries.
We have settled short term loans long ago and have settled long term loans as well when we
made huge profit margins.
 K3

We have a market capitalisation of 14,147,623 at present which has significantly increased

from 7,193,879 at the start of year. We have a good P/E ratio of 18.10 at the year end. We have
seen a return on sales of 29.39%, which has been second highest in the market.
We have invested in Tech 1,2 and 3 in various markets and developed many features in house
for the customers according to their demand in various markets. Investment in Tech 4 was not
done as it required huge amount of investment and it’s ROI was not that good to help us grow
our business.
The Group is in a solid financial position. Our operating business has proven resilient, despite
the headwinds we had to face. We have also defined extensive countermeasures to improve the
earnings situation. Appropriate programs are under way in all the tech and markets.
In short, this year’s results were quite a feat. I offer my sincerest thanks to all our team members
for their commitment!
And you, our shareholders, will of course also benefit from our success. We are keeping a close
eye on our goal to become the global leading provider of sustainable technologies. This will be
possible if we continue to improve. We want to achieve sustainable growth and create value.
For our customers. For our workforce. For our shareholders.

I thank you for your trust and invite you to stay with us as we move forward on this journey.

Sincerely,

Team K3