Slide 1: Annual Results 2018
Annual Results 2018 2018年业绩简报 At Hung Hing, we are proud of our 60+ 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. ©2019 Hung Hing Printing Group Ltd.
Slide 2: Sales increased steadily by 4.5%
Hung Hing Printing Group Ltd. - 2018 Results 鸿兴印刷集团2018年度业绩 Sales increased steadily by 4.5% 營業額保持溫和上升4.5% (Unit: HK$ million / 单位: 港 幣 百 萬 元 ) Year 2018 Year 2017 • Group revenue growth 4.5% 3,277 3,136 集團營業額增长4.5% • Gross profit margin at 11.3% down by 3.7% pt. vs. last year 11.3% 15.0% 毛利率11.3%,
Slide 3: Sales Revenue - External Customers
Sales Revenue - External Customers 対外营业额 2018 Overall Sales Growth +4.5%: BPP +1% / CPP +9% / CB +54% / PT -9% (HK$ million) 3,500 3,277 3,136 388 3,000 3,016 3,037 2,956 Paper Trading 429 425 (PT) 392 414 286 2,500 198 186 188 150 626 688 753 Corrugated 2,000 728 696 Box (CB) 1,500 Consumer 1,724 P
Slide 4: Group EBITDA
Group EBITDA 息税折旧前溢利 One-off disposal gain of HK$1,144m booked in 2017 only; Group 2018 EBITDA was impacted by abrupt paper prices and RMB exch movements, plus additional labor benefit costs provision EBITDA (HK$ million) EBITDA as % of Sales 1,400 1,294 45.0% 41.3% 40.0% 1,200 35.0% 1,000 30.0% 800
Slide 5: Segment Sales & Profit Contribution
Segment Sales & Profit Contribution 部门销售及溢利贡献率 Overall External Sales Growth +4.5%: BPP +1% / CPP +9% / CB +54% / PT -9%. Profit was generally impacted by abrupt paper prices and RMB exch movements, plus additional labor benefit costs provision. Books and Package Printing (BPP) Consumer Product Pack
Slide 6: Group Income Statement
Group Income Statement Profit was impacted by abrupt paper prices and RMB exchange movements, additional labor benefit costs provision and the absence of one-off disposal gain. For the twelve months period ended 31 Dec Comment (Unit: HK#039; 000) 2018 2017 Change vs. 2017 Revenue 3,276,800 3,135,659 14
Slide 7: Group Income Statement (if excl. SHPSZ disposal in 2017)
Group Income Statement (if excl. SHPSZ disposal in 2017) Excluding one-off disposal gain in 2017, profit was impacted by abrupt paper prices and RMB exchange movements, plus additional labor benefit costs provision. For the twelve months period ended 31 Dec Comment (Unit: HK#039; 000) 2018 2017 Change
Slide 8: Robust financial position: Strong cash holding and liquidity
Robust financial position: Strong cash holding and liquidity Strong financial position to uplift shareholders return with dividends in short-term, and continuous value creation considering transformational investment and organic growth As at Dec 31 Comment (HK$ million) 2018 2017 Changes Assets Non-
Slide 9: (Loss) / Earnings per Share (LPS / EPS)
(Loss) / Earnings per Share (LPS / EPS) 公司权益持有人应佔(虧損)/溢利及每股(虧損)/盈利 (Loss) / Profit Basic Attributable to Shareholders (LPS) / EPS 1200 140 1050 120 116.7 1000 100 800 80 (HK$ million) (HK Cents) 600 60 400 40 200 20 38 38 41 4.2 4.2 4.5 8 0.9 0 0 (75) (20) (8.3) (200) 2014 2015 2016 2017 2018 2014 2
Slide 10: Proposed Special & Final Dividends
Proposed Special & Final Dividends 建议派发特別及末期息 Uplifting shareholders return with final + special dividends total 7 cents, and alluding to long-term stable and rewarding return via continuous transformation and value creation (HK¢ per share) Commentary 35.0 32 • 2018 Dividends 30.0 Interim (paid) 3 c
Slide 11: Proposed final dividend 3 cents and Special dividend 4 cents
Hung Hing Printing Group Ltd. - 2018 Results 鸿兴印刷集团2018年度业绩 Proposed final dividend 3 cents and Special dividend 4 cents 建议派发末 期 股 息 3 仙 及特 別 股 息 4 仙 (Unit: HK$ million / 单位: 港 幣 百 萬 元 ) Year 2018 Year 2017 • Group revenue growth 4.5% 3,277 3,136 集團營業額增长4.5% • Gross profit margin at 11.3% down by 3.
Slide 12: Appendices
Appendices ©2019 Hung Hing Printing Group Ltd.
Slide 13: Hung Hing's Self-own Network of Facilities
Hung Hing’s Self-own Network of Facilities WX: 无锡市国家高新技术产业开发区 ZS:中山市火炬开发区逸仙路 长江南路 Printing and manufacturing of folding Printing & mfg. of folding cartons, litho cartons, litho-lam & corrugated box lam and corrugated containers Awarded certifications of ISO9001, Awarded certifications of ISO9001, IS
Slide 14: Business Structure
Business Structure Hung Hing Printing Group Limited Book & package Consumer product Corrugated Paper Beluga printing packaging box trading 9% % 2018 56% HK$1,850mm 23% HK$286mm 12% N.A. HK$753mm HK$388mm Market Leader Top 5 in Major player in Leader in Innovative position globally China South China
Slide 15: Appendix: Company history
Appendix 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. manufacturing o
Slide 16: Appendix: Our Office and Production Plants
Appendix: Our Office and Production Plants Hong Kong Shenzhen Zhongshan Wuxi Heshan • Relocated to Tai Po • Printing and manufacturing of • Printing and • Printing and • Established in 2007 Industrial Estate in folding cartons, children’s book, manufacturing of manufacturing of folding for printing
Slide 17: Appendix: Our Global Presence
Appendix: Our Global Presence Sales Offices: Benelux Scandinavia Germany Production United Kingdom Plant France USA Hong Kong Headquarter South America ©2019 Hung Hing Printing Group Ltd. I p. 17 ©2018 Hung Hing Printing Group Ltd. | confidential
Slide 18: Strategic Investments
Strategic Investments Expand overseas - Global retailer of high-end Innovative mobile Hanoi,Vietnam products - kikki.K printing & sharing platform in PRC Agreed to form a JV in Acquire minority stake in Jul 2018 Jul 2018 Acquire minority stake Printing & packaging High-end individualized in Guangzho
Slide 19: Appendix: Innovation Hub at HH
Appendix: 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. ©2019 Hung Hing Printing Group Ltd. I p. 19
Slide 20: Vertical Integrated Printing Group
Vertical Integrated Printing Group From paper to finished product. ©2019 Hung Hing Printing Group Ltd.
Slide 21: Hung Hing provides service
Hung Hing provides service Graphic design Print & paper Paper engineering/ packaging- both litho & Structural design flexographic printing Global paper & Products fulfillment-able to Distribution network-various Customization & components combine HH printing items production locations to serve Perso
Slide 22: Capabilities overview
Capabilities overview 8900 51 5 Quality, Safety, Environment and Employees Printing Facilities Ethical standards (average) machines compliance ©2019 Hung Hing Printing Group Ltd. I p. 22
Slide 23: New capabilities
New capabilities Highcon Euclid III Scodix Ultra Pro & Foil station CT 100 casing-in machine The new generation digital die Digital Enhancement Press that A high performance machine for cutting and creasing machine produces high quality and tangible casing in thin books, CD trays, offer countless ne
Slide 24: Care about Environment
Care about Environment At Hung Hing, we are conscious about the earth and its environment and protecting it is our duty by utilizing environment friendly materials and processes. ©2019 Hung Hing Printing Group Ltd.
Slide 25: We care about the environment
We care about the environment FSCR® Forest Stewardship Council - Chain of Custody to ensure paper originates from well-managed Forest since 2007 In year 2018, we ISO14001 PEFC consumed over 55,100 Programme for the Endorsement International Standard in of Forest Certification Schemes - Tons FSC® and
Slide 26: We care about people
We care about people ICTI-Care Caring Company Happy Company Scholarship Volunteer International Council of We participated in We participated in Happy Participate in We support students in Toy Industries– Ethical Caring Company Company program to voluntary work for a their pursue of Toy Program, an
Slide 27: We care about our products
We care about our products GMI EN71 Graphic Measures International Ltd, European toy safety an approach adopted by some large retailing companies to monitor and standard measure the quality performance of packaging suppliers. CNAS PSA We have China National Printing Standards Audit certification Acc
Slide 28: Summary
Summary Founded in 1950 NOW in Hong Kong World’s leading provider of comprehensive, one-stop printing and packaging solutions. Listed on the Hong Kong factories in Hong Kong, Stock Exchange in 1992 (SEHK 450) 5 Shenzhen, Zhongshan, Heshan, Wuxi. Workforce Annual Sales Revenue Production floor space
Slide 29: 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 30: Thank you.
Thank you. ©2019 Hung Hing Printing Group Ltd. I p. 30