Media Chinese International Ltd · HKEX:685
Media Chinese International — Shareholder Meeting (August 2018)
48 slides from Media Chinese International's shareholder meeting presentation, Aug 14, 2018
Slide 1: Media Chinese International Limited Annual General Meeting
Media Chinese International Limited Annual General Meeting 14th August 2018 Stock Code: (Malaysia) 5090 ; (Hong Kong) 685
Slide 2: Agenda
Agenda (1) Performance Review • Market Highlights • Financial Performance (2) Strategic Update (3) Outlook (4) Questions from Minority Shareholder Watchdog Group 1
Slide 3: (1) Performance Review
Agenda (1) Performance Review • Market Highlights 2
Slide 4: Market Share in Peninsular Malaysia and Hong Kong
Market Share in Peninsular Malaysia and Hong Kong Penisular Malaysia Period from 1 Jan 2017 to 31 Dec 2017 Chinese Newspapers Readership Ranking in Malaysia - Sin Chew Daily 884,000 No. 1 - China Press 667,000 No. 2 - Guang Ming Daily 197,000 No. 3 - Nanyang Siang Pau 60,000 with PMEB focus SUB TOTA
Slide 5: Adex for April 2017 to March 2018 in Malaysia
Adex for April 2017 to March 2018 in Malaysia YTD Adex (Apr’17 to Mar’18) Total Adex (RM) Radio Cinema In-store 2.8% 0.7% media Newspapers : 2,711m Magazines 0.8% 20.7% Magazines : 71m 0.4% TV (FTA) Newspapers 16.2% 16.0% TV (FTV) : 2,757m Pay TV : 10,724m Radio : 483m 4.5% In-store media : 131m Pay
Slide 6: Total Newspapers Adex in Malaysia
Total Newspapers Adex in Malaysia -24.3% -15.3% -20.6% 1,500 1,200 In RM ‘million 900 -15.3% 600 300 0 Chinese English Malay Tamil Apr'17-Mar'18 Apr'16 - Mar'17 Chinese English Malay Tamil Total (In RM 'm) (In RM 'm) (In RM 'm) (In RM 'm) (In RM 'm) Apr'17 - Mar'18 887.1 1,048.3 759.2 15.9 2,710.5 A
Slide 7: Share of Chinese Newspapers Advertising Expenditure in Malaysia
Share of Chinese Newspapers Advertising Expenditure In Malaysia For Apr-17 to Mar-18 NEWSPAPERS ADEX ENG Newspaper Others - West 38.7% Malaysia MCIL Group 3.1% 24.1% CHN Newspaper 32.7% Others - East BM Newspaper Malaysia 28.0% 5.5% Tamil Newspaper 0.6% Adex for Total Newspapers : RM2,711 million Ch
Slide 8: Adex for April 2017 to March 2018 in Hong Kong
Adex for April 2017 to March 2018 in Hong Kong YTD Adex (Apr’17 to Mar’18) Total Adex (HKD) Newspapers : 29,447m Others & 9.7% MTR Magazines : 5,468m 14.0% Newspapers 27.4% TV : 34,382m Desktop & Radio : 4,448m Mobile 17.3% Desktop & Mobile : 18,590m 13.3% Magazines Others & MTR : 15,048m 5.1% TV Ra
Slide 9: (1) Performance Review: Financial Performance
Agenda (1) Performance Review • Financial Performance 8
Slide 10: Group Results Summary
Group Results Summary For the year ended 31 March (US$’ 000) 2018 2017 Turnover 284,963 302,586 Profit before goodwill & machinery provision 18,981 24,413 (Loss)/Profit before income tax (6,874) 20,775 (Loss)/Profit attributable to owners of the Company for the (11,485) 15,156 year EBITDA 8,687 32,1
Slide 11: Financial Position
Financial Position As at 31 March (US$ ‘000) 2018 2017 Total assets 331,757 308,806 Net assets 201,768 197,315 Cash and cash equivalents and short-term bank deposits 120,235 90,032 Shareholders funds 197,669 193,694 Net assets per share (US cents) 11.72 11.48 (Loss)/earnings per share (US cents) (0.
Slide 12: Segment Results
Segment Results For the year ended 31 March 2018 (US$ ‘000) Malaysia & Hong Kong, Publishing North other SEA Taiwan & & Printing Travel Total America countries PRC Sub-total Turnover 142,848 51,583 15,662 210,093 74,870 284,963 Segment (2,959) (585) (2,533) (6,077) 2,361 (3,716) profit/(loss) before
Slide 13: Dividends
Dividends FYE 2018 FYE 2017 First Interim Dividend (US cents) 0.250 0.360 Second Interim Dividend (US cents) 0.180 0.360 Total Dividend (US cents) 0.430 0.720 Dividend Pay-out Ratio (as a % of PATAMI) * 50% 80% Share Price as at 31 March RM0.37 RM0.64 Dividend Yield as at 31 March 4.49% 4.98% * % ba
Slide 14: (2) Strategic Update
Agenda (2) Strategic Update 13
Slide 15: Strategic Update – Malaysia
Strategic Update – Malaysia Sin Chew Daily Editorial Content Introduced specific topic features I.e. We, Seeking truth, warm stories, health and wellness, education, lifestyle and personal wealth management in both print and digital platforms, to provide relevant tips and industry trends, with an ai
Slide 16: Strategic Update – Malaysia: Event Business
Strategic Update – Malaysia (cont’d) Event Business The Group organises various activities, exhibitions and awards such as Sin Chew education fair, “Malaysia Health and Wellness Brand Awards”, “Sin Chew Business Excellence Awards” and Nanyang Siang Pau - “Golden Eagle Award”, etc. Sin Chew Business
Slide 17: Strategic Update – Malaysia: Pocketimes Online Video Portal
Strategic Update – Malaysia (cont’d) Pocketimes Online Video Portal Attained highest video views of 21 million monthly in May 2018. Extended its business model by creating more offerings and marketing solutions via our expertise in storytelling. Launched extensive live streaming election program, fe
Slide 18: Strategic Update – Malaysia: Chinapress.com.my and Mobile App
Strategic Update – Malaysia (cont’d) Website - Chinapress.com.my Mobile App Chinapress.com.my has achieved new high Accumulated download users > 100,000 for the number of pageviews and unique visitors in May 2018 due to General Monthly Screen Views > 70 million Election. The portal registered more t
Slide 19: Strategic Update – Malaysia: Daily Newscast
Strategic Update – Malaysia (cont’d) Daily Newscast 新聞搶鮮報 Daily newscast was launched since March 2018. Averagely attained 100,000 video views daily. 1st LIVE newscast conducted on Polling Day to announce election results, and sponsored by two clients Monetized in three ad formats. 1) Presenter 2) C
Slide 20: Strategic Update – Malaysia: Digital Audience Growth
Strategic Update – Malaysia (cont’d) MCIL Malaysian Operations, total ..... As at June 2018 Sources: Google Analytics 14.1 million 285.8 million 12.4 million Monthly Unique Visitors Monthly Page View Monthly Video View As at December 2017 Sources: Google Analytics 9.8 million 117.4 million 3.6 milli
Slide 21: Strategic Update – Hong Kong: Ming Pao Education Publications
Strategic Update – Hong Kong 1) Ming Pao Education Publications • Published the 3rd issue of OpenSchool《STEM教育特刊》in Jun 2018, free distribution to primary and secondary schools. 20
Slide 22: Strategic Update – Hong Kong: Education Publications Cooperation
Strategic Update – Hong Kong (cont’d) 1) Ming Pao Education Publications • Co-operated with Marshall Cavendish Education 名創教育 to publish “Liberal Studies” 《高中通識教育》(6 units) for upper secondary school students. https://www.mmls.com.hk 21
Slide 23: Strategic Update – Hong Kong: Technology Update
Strategic Update – Hong Kong (cont’d) 2) Technology Update Functions and Features Jobs – simple and advanced search engine, online Cover all devices, for Employers and / or Jobseekers application, premium employers Website for employers & jobseekers Courses – latest and hot courses Apps (And
Slide 24: Technology Update: MPDN Website
Strategic Update – Hong Kong (cont’d) 2) Technology Update (MPDN Website) Mingpao.com Homepage Redesigned Branding + content Homepage to all Ming Pao digital content including News, Finance, Entertainment, Education, Magazines and others Clear user interface (UI) and enhanced user experience (
Slide 25: Technology Update: MPDN App
Strategic Update – Hong Kong (cont’d) 2) Technology Update (MPDN app) 明報新聞APP MP News App Total rewrite (Jan 2018) Morning Brief / Focus, Daily News, Instant News in separate tabs Specials – selected news topics Personalized news categories Private bookmarks Social networks sharing Ins
Slide 26: Technology Update: Push Notification
Strategic Update – Hong Kong (cont’d) 2) Technology Update (Push Notification) Push as a Service App Push Browser Push All-in-one push solution Text messages Text messages Social Login (fb, tw, g+) ready User-controlled push queue Major browsers – Chrome & Firefox SDK and API ready R
Slide 27: Digital Performance (Readership)
Strategic Update – Hong Kong (cont’d) 3) Digital Performance (Readership) Double digital growth of digital readership was recorded from AC Nielsen Media Index who are news-reading sector, especially World & China News categories. Ming Pao Daily 2015 2016* 2017 2017 Vs 2016 Total 296,000 371,000 500,
Slide 28: Digital Performance (User)
Strategic Update – Hong Kong (cont’d) 3) Digital Performance (User) Overall speaking, we have driven more users to our major sites. According to market currency Comscore in the latest May report, we recorded 26% and 30% growth for both desktop and mobile sites respectively. When we take further look
Slide 29: (3) Outlook
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Slide 30: Outlook Statement FY 2019
Outlook Statement FY 2019 We expect the operating environment of our businesses, both publishing and travel, to remain challenging amid weak consumer sentiment and rising costs of doing business as well as new technologies that continue to reshape the media industry. Despite the improvement in the g
Slide 31: (4) Questions from Minority Shareholder Watchdog Group
Agenda (4) Questions from Minority Shareholder Watchdog Group 30
Slide 32: Questions from MSWG – Goodwill impairment
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 1: We noted on page 144 of the Annual Report that the goodwill of Sin Chew Media Corporation was impaired by US$20,709,000. This provision for impairment was made as a result of weak advertising sentiments and
Slide 33: Questions from MSWG – Plan for challenging print conditions
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 1 (ii): Moving forward could the Board share with the shareholders its plan on how it intends to overcome the challenging business condition in the print media industry? Answer: It is an on-going process of tra
Slide 34: Questions from MSWG – Machinery impairment
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 2 : It was stated on page 138 of the Annual Report that a provision was made for impairment in relation to machinery and printing equipment amounting to US$5.125 million for FY2018. What is the reason for the i
Slide 35: Questions from MSWG – Financial performance steps
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3 : The Group had suffered deteriorating financial performance for the last 5 financial years. What steps have been taken by the Board to counter the challenging operating environment and when is the Group expe
Slide 36: Questions from MSWG – Digital revenue contribution
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 4 : It was reported in the Chairman’s Statement on page 14 of the Annual Report that the digital revenue for the Group grew by about 24.6% year-on-year with some of its major digital categories showing encourag
Slide 37: Questions from MSWG – Trade receivables
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 5 : As reported on page 149 of the Annual Report, as at 31 March 2018, trade receivables that were past due but not impaired amounted to US$12.678 million. Trade receivables that were past due and fully impaire
Slide 38: Questions from MSWG – Advertising income breakdown
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 6 : We noted that the advertising income for the last five years were as follows: 2018 2017 2016 2015 2014 US$’000 US$’000 US$’000 US$’000 US$’000 Advertising income 146,002 165,179 190,109 248,319 273,553 6(a)
Slide 39: Questions from MSWG – Advertising income growth rates
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 6 (b) : What was the growth rate in advertising income in both the print and digital media over the last 5 years? Answer: The growth rate in both print and digital advertising income for the last 5 years was as
Slide 40: Questions from MSWG – Share of advertising expenditure
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 6 (c) : What was the Group’s share of advertising expenses in both the Chinese and overall newspaper industries? Answer: According to independent market researches, the Group’s share in advertising expenditure
Slide 41: Questions from MSWG – Cover price increase and circulation
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 7 : As reported in the Management Discussion and Analysis on page 18 of the Annual Report, effective from early March 2018, the Group’s 4 daily newspapers have increased their respective cover price by RM0.20.
Slide 42: Questions from MSWG – Travel segment competition
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 8 : On page 17 of the Management Discussion and Analysis, it was reported that the intense competition from airlines and the increasing popularity of vacation rental booking websites such as Airbnb as well as a
Slide 43: Questions from MSWG – Travel segment strategy answer
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 8: Tourism is a service industry and tourist satisfaction is the key to long-term success for this business. Despite the growing focus on technology, many travelers still prefer the professional, attentive and pe
Slide 44: Questions from MSWG – Operational review and manpower
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 9 : As stated in the Chairman’s Statement on page 15 of the Annual Report, the Group is reviewing its operations to ensure optimum utilisation of assets and manpower. Please share the results of the operational
Slide 45: Questions from MSWG – Corporate Governance Matter
Questions from Minority Shareholder Watchdog Group – Corporate Governance Matter Question 1 : We noted that the Company in its CG Report had stated that it has adopted Step Up Practice 4.3 of MCCG. However, the Company will be seeking shareholders’ approval at the forthcoming AGM for its director, M
Slide 46: Corporate Governance Matter – Answer
Questions from Minority Shareholder Watchdog Group – Corporate Governance Matter Answer 1 : The Board took note of the above. As explained in our Annual Report, Mr David Yu is a reputed professional and competent independent director. He has brought independent and objective judgements to the Board’
Slide 47: Thank You
Thank You 46
Slide 48: Forward Looking Statements
Forward Looking Statements This presentation includes certain forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Media Chinese International Ltd expects or anticipates will or may occur in the future are forward
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