Tradelink Electronic Commerce Limited · HKEX:536
Tradelink Electronic Commerce — FY2008 Earnings Presentation
24 slides from Tradelink Electronic Commerce's earnings presentation, Mar 25, 2009
Slide 1: 2008 Annual Results Announcement
Stock Code : 0536 2008 Annual Results Announcement 25 March 2009
Slide 2: Business Highlights
Business Highlights
Slide 3: Key Highlights
Key Highlights • Core business of providing six front-end Government Electronic Trading Services (GETS) held steady up until September 2008 • Six Government Electronic Trading Services (GETS) includes : Import & Export Production Certificates of Origin Declaration (“TDEC”) Notifications (“PN”) (“CO”
Slide 4: Key Highlights
Key Highlights • Awarded a contract to set up and provide call centre services for the implementation of Road Cargo System (ROCARS) for the Customs & Excise Department of HK Government for 5 years from the end of 2009 • Completed the transaction to acquire a 20% stake in Guangdong Nanfang Haian Scie
Slide 5: Key Highlights
Key Highlights • Dividend Policy - Not less than 60% of distributable profit • Profit attributable to shareholders amounted at HK$71.1 million, lower than the amount of profit attributable in 2007 at HK$76.2 million by HK$ 5.1 million • Dividends for 2008: - Declared interim dividend: HK cents 3.61
Slide 6: Financial Highlights
Financial Highlights
Slide 7: Financial Highlights
Financial Highlights Year ended 31 December 2008 2007 HK$’000 HK$’000 Turnover 232,605 245,082 Profit from operations 110,199 120,144 Share of results of associates (22,222) (23,955) Profit attributable to - Equity shareholders of the Company 71,115 76,204 - Minority interests 12 - Earnings per shar
Slide 8: Key Financial Ratios
Key Financial Ratios Year ended 31 December 2008 2007 Operating profit margin 47.4% 49.0% Net profit margin 30.6% 31.1% Effective tax rate 19.2% 21.1% Current ratio 2.1 2.1 Debtor’s turnover days1 4 5 Note 1: The calculation of debtor’s turnover days is based on the closing balance for trade receiva
Slide 9: Healthy Cash Flow
Healthy Cash Flow • Net cash flow from operating activities of approximately HK$270.4 million • Trade receivables at HK$18.4 million • Debtor’s turnover day of about 4 days • Zero bad debt • HK$439.5 million cash and cash deposits as at 31 December 2008 (including customer deposits of HK$171.6 milli
Slide 10: Key Balance Sheet Items
Key Balance Sheet Items As at 31 December As at 31 December 2008 2007 HK$’000 HK$’000 Fixed assets 41,461 44,547 Trade receivables 18,401 19,381 Cash and cash deposits2 439,483 374,706 Net assets 336,760 339,848 Note 2: Including customer deposits of HK$171.6 million and HK$171.7 million as at the r
Slide 11: Core Business
Core Business
Slide 12: Operating Mode of GETS
Operating Mode of GETS Tradelink transaction fee + Government fee Government fee + + e-submission of e-submission of trade related Logistics documents trade related Services Trading Community documents Providers HKSAR Importers Government Exporters e-confirmation e-confirmation Freight Tradelink off
Slide 13: Substantial Customer Base
Substantial Customer Base • Over 54,000 registered customers including manufacturers, importers, exporters, freight forwarders, logistics services providers and carriers • Steady transaction volume – over 20 million in 2008 • Dedicated customer services offering hotline, onsite technical support, 25
Slide 14: Highlights – Core Business (GETS Services)
Highlights – Core Business (GETS Services) • Core business held steady up until September 2008 experienced a small decline in Q4 2008 due to the global economic situation deteriorated markedly • Year on year, the overall GETS transaction volume registered a slight decline of 5% • Continue to command
Slide 15: Highlights – DTTN
Highlights – DTTN • While continue focusing on recruitment in Hong Kong, DTTNCo is also expanding efforts to tap the market potential in China • Based on finding of a review of DTTN business model carried out in early 2008, DTTNCo shareholders and Tradelink Board agreed to remove the DTTN Operating
Slide 16: Highlights – DTTN
Highlights – DTTN • Significance of restructuring of DTTNCo summarized into three areas : - Significant cost reduction for DTTNCo through removal of a lot of duplication between DTTNCo and Tradelink - More value-adding services and effective business solutions to offer to DTTNCo customers - Programs
Slide 17: Highlights – Digi-Sign
Highlights – Digi-Sign • Continued to chart a steady course and has expanded the service scope to its bank customers • Under the CEPA framework, Digi-Sign has been working together with the relevant government bodies on facilitation of cross border mutual recognition of digital certificates and on p
Slide 18: Prospects
Prospects
Slide 19: Prospects
Prospects • Total trade declarations dropped by 23% in Jan/Feb 2009 compared to same period in 2008 • As there are no signs of recovery of the economy in near future, we must brace ourselves for a pretty dismal 2009 – for the rest of 2009, will exercise much tighter cost controls and step up efforts
Slide 20: Q&A
Q&A
Slide 21: Thank You
Thank You
Slide 22: Appendix
Appendix
Slide 23: Consolidated Income Statement
Consolidated Income Statement For the year ended 31 December 2008 2007 (HK$'000) (HK$'000) Turnover 232,605 245,082 Interest income 12,681 10,186 Staff costs (80,639) (79,474) Depreciation (9,383) (11,065) Other operating expenses (45,065) (44,585) Profit from operations 110,199 120,144 Share of res
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet As at 31 December 2008 As at 31 December 2007 (HK$'000) (HK$'000) Non-current assets Fixed assets 41,461 44,547 Interest in leasehold land held for own use under operating lease 5,484 5,626 Interest in associates 42,539 43,020 89,484 93,193 Current assets Trade receivables
Tradelink Electronic Commerce — FY2008 Earnings Presentation on 6ix