Media Chinese International Ltd · HKEX:685
Media Chinese International — Shareholder Meeting (August 2010)
45 slides from Media Chinese International's shareholder meeting presentation, Aug 25, 2010
Slide 1: Media Chinese International Limited Annual General Meeting
Media Chinese International Limited Annual General Meeting 25 Aug 2010 1
Slide 2: Agenda
Agenda • Business Portfolio • 2009/10 Highlights • Financial Performance • Future Plans and Strategies – Growing into Multimedia • Questions from Minority Shareholder Watchdog Group 2
Slide 3: Business Portfolio
Business Portfolio 3
Slide 4: Business Portfolio
Business Portfolio • Leading Chinese language global media group – Dual primary listed in Malaysia and Hong Kong – Total shareholders’ fund of USD 341 million • Geographically and operationally diverse – Main geographic markets • Malaysia, Hong Kong, Mainland China, Canada and USA • Core business se
Slide 5: Background & Product Portfolio
Background & Product Portfolio Media Chinese (Dual Primary Listed) Mainland China Southeast Asia North America Digital Media Sin Chew Daily MP Daily News MP Daily News (HK) Iatopia China Press (Vancouver) ByRead Yazhou Zhoukan Guangming Daily MP Daily News MediaChinese e- 4 HK magazines (Toronto) Na
Slide 6: Product Brands
Product Brands MING PAO WEEKLY TAIWAN 6
Slide 7: 2009/10 Highlights
2009/10 Highlights 7
Slide 8: What is changing in the Media Industry…
What is changing in the Media Industry… • Advertising market in Hong Kong and Malaysia has stabilised and begun to register positive growth since the impact of the global financial crisis. • Circulation sales are expected to remain at sustainable levels • Newsprint prices are expected to rise signif
Slide 9: The implications on Media Chinese's strategy
The implications on Media Chinese’s strategy • Maintaining our leadership status – Revamping the manner in which Ad Col cm is sold – Delivering value added services – Deliver superior editorial contents – Focus on core competence of content provision • Further development in digital business, multi-
Slide 10: Market Share in Malaysia and Hong Kong
Market Share in Malaysia and Hong Kong PENINSULA MALAYSIA Period from 30 June 09 to 31 Dec 09 Chinese Newspapers Copies Ranking in Malaysia Sin Chew -Sin Chew Daily 402,800 No. 1 -Guang Ming Daily 123,048 No. 3 Nanyang -China Press 242,429 No. 2 -Nanyang Siang Pau (figure for the period 1.7.06 to 30
Slide 11: Total Adex for 2009 in Malaysia
Total Adex for 2009 in Malaysia Total Adex in 2009 Total Adex (RM) POS Cinema Outdoor NPPS: 3,407m 1.8% 1.3% +2% Radio 0.4% Magazines: 139m 5.5% Internet 0.6% TV MAGZ 2.1% 36.2% TV: 2,446m Radio: 362m NPPS Outdoor: 112m 52.2% POS: 86m Internet: 40m Cinema: 22m RM 6,615m 7% Total Adex in 2008: RM 6,1
Slide 12: Total Adex for 2009 in Hong Kong
Total Adex for 2009 in Hong Kong Total Adex in 2009 Total Adex (HKD) NPPS: 21,017m -3.7% Interactive 4% Others Magazines: 10,706m Radio 10% 5% TV: 23,133m MAGZ 17% TV 33% Radio: 3,297m Interactive: 2,348m NPPS 32% Others: 6,829m HKD 67,330m 4.4% Total Adex in 2008: HKD 64,495m Source: Adviews (Niels
Slide 13: Rise in YTD June 2010 Adex in Hong Kong
Rise in YTD June 2010 Adex in Hong Kong Total Adex in Jan – Jun 2010 Total Adex (HKD) NPPS: 11,819m 24.8% Interactive 4% Others Magazines: 5,486m Radio 10% 4% TV: 12,971m MAGZ 14% TV 36% Radio: 1,525m NPPS Interactive: 1,390m 32% Others: 3,546m HKD 36,736m 22.9% Total Adex in YTD June 2009: HKD 29,9
Slide 14: Financial Performance
Financial Performance 14
Slide 15: 2009-10 Financial Highlights
2009-10 Financial Highlights • Basic earnings per share were US$2.44 cents, representing an increase of 144% compared with previous year • FY2010 full year dividend per share of US$1.221 cents, approximately payout ratio of 50% (FY2009: 59%) 15
Slide 16: Dividends
Dividends PATMI DIVIDENDS % (USD) 31.3.09 16,790,000 9,986,000 59.0 31.3.10 41,136,000 20,561,000 50.0 16
Slide 17: Financial Performance Highlights
Financial Performance Highlights Full Year Financial Performance – Turnover Full Year Results (US$ million) FY 2009/10 FY 2008/09 Malaysia & other SEA countries 234.4 234.3 Hong Kong, PRC & North America 95.3 105.0 Travel and travel related services 46.3 54.9 Total Turnover 376.0 ↓4.6% 394.3 Full Ye
Slide 18: Financial Performance Highlights
Financial Performance Highlights Full Year Financial Performance – Turnover T otal T ur nov er M alay sia & other SEA countr ies H ong K ong, P RC & Nor th A mer ica 2009/10 2008/09 T r av el and tr av el r elated ser v ices $0 $100,000 $200,000 $300,000 $400,000 18
Slide 19: Financial Position Highlights
Financial Position Highlights As at 31 March (in US$ million) 2010 2009 % change Total assets 457.2 373.4 + 22.4% Net assets 341.3 279.8 +22% Net current assets 129.9 101.0 +28.6% Cash and cash equivalents 77.6 70.2 + 10.6% Net assets per share (US cents) 20.27 16.62 +22% Earnings per share (US cent
Slide 20: Summary Balance Sheet
Summary Balance Sheet • Cash and cash equivalents amounted to US$77,635,000, 10.6% increase from previous year (FY2009: US$70,205,000). • Net cash position was US$45,015,000 after deducting total borrowings (FY2009: US$49,689,000) . • The Group’s net assets stood at US$350 million, 21% higher than t
Slide 21: Strategic Outlook
Strategic Outlook 21
Slide 22: Strategic Roadmap
Strategic Roadmap Products Multi Global Products multimedia • Chinese Markets • Organic Growth • Acquisitions • Multi Media • Digital Media • Synergies Ming Pao • Scale Merged Sin Chew Platform Nanyang Focused Product Markets Focused Market Multi Markets 22
Slide 23: Achievements
Achievements ◦ Deliver operational synergies together with organic growth ◦ Strengthen the technology backup platform ◦ Step1 – partnership with Iatopia, which help digitalize content bank ◦ Move into mobile reading industry ◦ Step 1 – enter into mobile reading market in China through ByRead ◦ Step
Slide 24: Digital Media - Iatopia
Digital Media - Iatopia • Partnership with Iatopia – Engaging in the creation and provision of intelligent technologies in multi-media and gateway to multi-topic interest e-communities – A patented IATOPIA Web 3.0 Web technology integrates an e- publication technology, a content management system (“
Slide 25: Digital Media - ByRead
Digital Media - ByRead • Holding stakes in ByRead – With another stakeholder of Morningside – The best integrated service award under mobile reader category in ANALYSYS, and ranked No.5 in 2009 SPForum mobile software award • Owns the websites known as Baiyue (www.byread.com) – Provide Social Networ
Slide 26: Digital Media – MediaChinese e-Bookstore
Digital Media – MediaChinese e-Bookstore Latest updates 值得 by famous artist Sammi Cheng Sau Man MediaChinese e-Bookstore iPhone Application 麻生．尋鬼記 by artist Chu Tien You 什麼口感, 男人食肆 and 旅人形江戶亂步 by famous writer Wong Yi Hing 歲月神偷 - 電影文本 by noted film producers Mabel Cheung Yuen Ting and Alex Law Kai Y
Slide 27: Digital Media – MediaChinese e-Bookstore
Digital Media – MediaChinese e-Bookstore • Next step: e-Bookstore on iPad 27
Slide 28: Digital Media – Media Chinese Netzines
Digital Media – Media Chinese Netzines • Recently launched in mid July, 2010 Media Chinese Netzines iPhone Application Magazine Titles 28
Slide 29: Digital Media – Mobile Reading
Digital Media – Mobile Reading 世界華文媒體有限公司 Media Chinese International Limited 29
Slide 30: Digital Media – Ming Pao Finance iPhone App
Digital Media – Ming Pao Finance iPhone App • A free comprehensive iphone application provides the latest updates of the stock market in Hong Kong 30
Slide 31: Digital Media - Hihoku
Digital Media - Hihoku 。 Entertainment Website − A professional entertainment website with instant news, special interviews and videos 。 Daily update content from Hong Kong and China 。 Korean contents from partner 31
Slide 32: Chinese Language in Multimedia
Media Chinese is… Chinese Language = in Multimedia 32
Slide 33: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group 33
Slide 34: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group 1. It is noted that the Group’s impressive growth in profit was driven by lower newsprint costs and operating expenses incurred during the year. However, the newsprint prices are expected to rise significantly in the ensuring year due to tightening
Slide 35: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group b) It was reported that the Group’s stock holding position would help mitigate some of the increases in production costs. What is the Board’s medium to longer term plan(s) to continue mitigating the impact on the bottom-line? In addition to building
Slide 36: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group 2. Malaysia and other Southeast Asian countries remained as the major contributor to the Group’s revenue and profit. Hong Kong and Mainland China recorded a small profit of US$3.78 million (2009: loss of US$175,000), while North America remained los
Slide 37: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group b) Hong Kong and Mainland China contributed 18.7% to the Group’s total revenue, but only 6.8% of the profit before tax. What are the reasons for the lagging performance and how is the Board’s effort to improve its performance? The Hong Kong and Main
Slide 38: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group 3. In Note 38 on Contingencies, there are several libel suits which involve claims against some companies in the Group. The Group has been strongly contesting those claims. What is the status and progress as well as the amounts of the claims involve
Slide 39: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group 4) In Note 41 on Event After the Reporting Period, the Company acquired additional 11.07% equity interest in One Media Group Limited (OMG) and increased its shareholdings to 73.9% by 11 June 2010. What is the reason(s) to increase the Company’s shar
Slide 40: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group 5. It was reported that the Board engaged the Auditor of the Company to perform certain factual finding procedures on the continuing connected transactions (CCT) in accordance with Hong Kong Standard on Related Services 4400. The Auditor had reporte
Slide 41: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group b) pricing is in accordance with the pricing policies of the Company; c) has been entered into in accordance with relevant agreement (verified against the agreement); d) has not exceeded the relevant cap (by comparing with cap amount as disclosed in
Slide 42: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group 6. Ordinary resolution 3 seeks the approval of shareholders to approve the proposed increase of Directors’ fees for the financial year ending 31 March 2011 by approximately US$42,100 from US$439,000 to US$481,100. What is the rationale for the Board
Slide 43: Questions from Minority Shareholder Watchdog Group
Questions from Minority Shareholder Watchdog Group 7. MSWG is promoting good corporate governance practices in PLCs. In this regard, we hope the Board would give due consideration to a dividend policy, code of conduct and ethics for directors and also a whistle-blowing policy. We note your recommend
Slide 44: Thank you
Thank you 44
Slide 45: Looking Forward Statements
Looking Forward 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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