Hung Hing Printing Group Limited · HKEX:450
Hung Hing Printing — H1 2020 Earnings Presentation
21 slides from Hung Hing Printing's earnings presentation, Jun 30, 2020
Slide 1: Interim Results 6 months ended 30 Jun 2020
lnterim Results 6 months ended 30 Jun 2020 中期業績簡報 截至2020年6月30日止6個月 At Hung Hing, we are proud of our 70 years of printing and packaging excellence, which has seen the Group grown from a small printing house to one of the largest printing solution providers in Asia with an extensive global outreach.
Slide 2: Hung Hing Printing Group Ltd. - 2020 Interim Results
Hung Hing Printing Group Ltd. - 2020 Interim Results 鸿兴印刷集团2020年度中期业绩 Profit for the period improved by 12.9% to 2.4 mil. Despite Sales down by 23.5% to 1,099 mil. 溢利增加 12.9% 至 2.4百萬元; 營業額降 23.5% 至 10.99 亿元 (Unit: HK$ million / 单位: 港 幣 百 萬 元 ) 1H 2020 1H 2019 • Group revenue declined by 23.5% 1,099
Slide 3: Group Income Statement - 2020 Interim Results
Group Income Statement - 2020 Interim Results • Profit improved by 12.9% (GP up +1% pt.); Sales shortfall were compensated by proactive cost control, fav. exch movements, increased gov’t subsidies & soc. insurance reduction. • Impairment of receivables (kikki.K) was offset by gains from partial HHWX
Slide 4: Financial position: 2020 Interim
Financial position: 2020 Interim Strong financial position with net cash 999m; Propose interim dividend on par with prior year to consistently uplift shareholders return, while allowing resources and the flexibility to seek future growth and investment opportunities Jun-30 Jun-30 Dec-31 Comment (vs.
Slide 5: Sales Revenue - 2020 Interim (External Customers)
Sales Revenue - 2020 Interim (External Customers) 2020 Overall Sales -23.5%: BPP -23.3% / CPP -31% / CB -19% / PT -14.9% (HK$ million, Six-month period) 1,600 1,464 1,436 -23.5% 1,400 1,394 210 Paper Trading 1,322 169 233 (PT) 1,200 218 102 123 1,099 66 80 144 1,000 349 291 Corrugated 278 297 100 Bo
Slide 6: Group EBITDA - 2020 Interim
Group EBITDA - 2020 Interim • Sales shortfall were compensated by proactive cost & headcount control, fav. exch movements, gov’t subsidies and social insurances waiver / reduction. • Impairment of receivables (kikki.K) was offset by gains from partial HHWX land disposal EBITDA (HK$ million, Six-mont
Slide 7: Segment revenue & profit contribution% - 2020 Interim
Segment revenue & profit contribution% - 2020 Interim • US/China dispute and COVID-19 disruptions hindered the sales of our business units • BPP contribution 2.7% would have improved to 4.1% (or 27m) if impact of receivables impairment of kikki.K is excluded; CPP stabilised sales decline and cut los
Slide 8: Proposed Interim Dividend
Proposed lnterim Dividend ©2020 Hung Hing Printing Group Ltd.
Slide 9: Earnings / (Loss) per Share (EPS / LPS)
Earnings / (Loss) per Share (EPS / LPS) 公司权益持有人应佔溢利 / (虧損)及每股盈利 / (虧損) Profit / (Loss) Basic Attributable to Shareholders EPS / (LPS) 20 2 1.6 14 10 1 0.5 0.5 5 5 0 0 (HK$ million) (HK Cents) (1) (10) (2) (20) (2.4) (3) (22) (30) (4) (3.9) (35) (5) (40) 1H2016 1H2017 1H2018 1H2019 1H2020 1H2016 1H20
Slide 10: Proposed Interim Dividend for 2020
Proposed lnterim Dividend for 2020 (HK¢ per share) Commentary • Propose to uplift shareholders return 35.0 consistently in line with the objectives of 32 dividend policy, i.e. to maintain stable dividend return, and to offer the utmost 30.0 in rewarding shareholders. • Despite economic uncertainties
Slide 11: Hung Hing Printing Group Ltd. - 2020 Interim Results
Hung Hing Printing Group Ltd. - 2020 Interim Results 鸿兴印刷集团2020年度中期业绩 Interim dividend 3 cents 派发中期股息3 仙 (Unit: HK$ million / 单位: 港 幣 百 萬 元 ) 1H 2020 1H 2019 • Group revenue declined by 23.5% 1,099 1,436 集團營業額下降23.5% • Gross profit margin increased to 15.7% (up 1% pt. vs. 2019) 15.7% 14.6% 毛利率提高至15.
Slide 12: Appendices
Appendices ©2020 Hung Hing Printing Group Ltd.
Slide 13: Business Structure
Business Structure Hung Hing Printing Group Limited Book & package Consumer product Corrugated Paper Beluga printing packaging box trading % 9% 2020 interim 60% HK$654mm 18% HK$100mm 13% N.A. HK$201mm HK$144mm Market Leader Top 5 in Major player in Leader in Innovative position globally China South
Slide 14: Our Office and Production Plants
Our Office and Production Plants Hong Kong Shenzhen Zhongshan Wuxi Heshan Shunde Vietnam • Printing and • Printing and • Printing and • Established in • Relocated to manufacturing of • Printing and • Land area manufacturing of manufacturing of 2007 for printing manufacturing Tai Po folding cartons,
Slide 15: Our Global Presence
Our Global Presence Sales Offices: Benelux Scandinavia United Kingdom Germany France Turkey USA South America Vietnam Production Plant ©2020 Hung Hing Printing Group Ltd. I p. 15
Slide 16: Strategic Investments
Strategic Investments ©2020 Hung Hing Printing Group Ltd. I p. 16
Slide 17: Innovation Hub at HH
Innovation Hub at HH Our team is specialized in creative design and product development for a brand new and exciting category of 'print + digital' products using innovative and patented technologies. Improve Creative De-Spec and cost Creating new re-assessment concepts and formats Problem Solving Ba
Slide 18: We operate sustainably
We operate sustainably REACH FSC® Raw materials comply with Forest Stewardship Council - REACH and no chemicals in Chain of Custody to ensure SVHC List (Substances of Very paper originates from well- Material High Concern) managed Forest since 2007 All materials comply EN71 PEFC Paper with internati
Slide 19: Going forward
Going forward 1992 1950 Founded as a small printing 1959 1966 1970 1989 Listed on the Stock Diversified into Began operation Expanded into Relocated to Tai shop in Central, Hong Kong, by Exchange of the printing and in corrugated paper trading Po Industrial Mr. Yam Cheong Hung. Hong Kong. manufactur
Slide 20: Disclaimer
Disclaimer The presentation is prepared by Hung Hing Printing Group Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment deci
Slide 21: Thank you.
Thank you. ©2020 Hung Hing Printing Group Ltd. I p. 21
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