Slide 1: Interim Results 6 months to 30 June 2014
Interim Results 6 months to 30 June 2014 0
Slide 2: 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 3: Highlights – Six months ended 30 June, 2014
Highlights – Six months ended 30 June, 2014 • Revenue remained stable at HK$1,345 million, comparable to the corresponding period in 2013 • A loss attributable to the owners of the Company of HK$52 million was recorded, largely due to fluctuations in RMB exchange rate which mostly are with no cash-f
Slide 4: Group revenue remained stable at HK$1,345 mil. with a shift in sales mix
Group revenue remained stable at HK$1,345 mil. with a shift in sales mix from books and packaging products to paper trading (HK$ million, Six-month period) 2,000 1,707 1,573 165 1,379 1,345 Paper Trading 1,500 176 145 1,345 147 165 123 190 (HK$ million) 373 Corrugated Box 116 101 89 389 1,000 345 35
Slide 5: Group EBITDA at breakeven, disadvantaged mainly by RMB fluctuations
Group EBITDA at breakeven, and was disadvantaged mainly by fluctuations in RMB which mostly are with no cash-flow impact EBITDA (HK$ million) Commentary vs. Prior Year EBITDA as % of Sales 200 10% Net fair value loss of approx. HK$23m 9% arising from forward contracts (vs. HK$6m gain in 1H2013) for
Slide 6: Strengthened value-add & deepened relationships with customers in 2H expected to drive up sales
Strengthened value-add & deepened relationships with customers in 2H expected to drive up sales and improve margins of BPP / CPP / CB with more efficient capacity utilization Segment revenue & profit % (Six-month period) External revenue Intersegment revenue Segment profit (%) Books and Package Prin
Slide 7: CNY (RMB) exchange rate movement
CNY (RMB) exchange rate movement • Spikes frequently found in 2013 means higher RMB risks and needs for hedging • Clear trends of RMB rebound since June; market expectation is to continue CNY (RBM) vs. HKD, Market Exchange: 2012 ~ 2014 Aug 1st Half year’s weighted avg. market rate 1.286 2nd Half yea
Slide 8: Income Statement
Income Statement Six months ended 30 June External Sales Profit (Loss) Commentary (HK$ Mil.) 2014 % Chg 2014 2013 Chg Book & Package Printing 728 -5% (7) 16 (23) • Delay in orders and slowdown Consumer Product Packaging 338 -5% (5) 2 (7) of domestic & export activities affected 1H performance; but C
Slide 9: Solid Financial Position Maintaining Strong Net Cash
Solid Financial Position Maintaining Strong Net Cash • Add’l loans for extended RMB hedging and higher interest income via arbitrage • Strong cash position with adequate inventory prepared (+6m) in anticipation of investment opportunities and orders increase with shorter lead times in 2H As of Jun 3
Slide 10: Earnings per Share (EPS)
Earnings per Share (EPS) Profit (Loss) Attributable to Owners of HHPG Basic Earnings (Loss) per share 60 6 5.0 45 40 4 3.4 31 1.7 16 2 1.3 20 12 (HK$ million) (HK Cents) 0 0 (2) (20) (4) (40) (6) (5.8) (60) (52) (8) 2011 4-9* 2012 4-9* 2012 1-6 2013 1-6 2014 1-6 2011 4-9* 2012 4-9* 2012 1-6 2013 1-6
Slide 11: Proposed Interim Dividends
Proposed Interim Dividends 30 27 Commentary 25 • Based on confidence in improvement of business 20 performance during the rest 17 of the year, and backed by the Group’s strong cash and 15 financial position, the Board resolved to pay an interim 7 dividend of HK 1 cent. 10 5 5 4 5 2 5.3 5 2 1 2 3 1.7
Slide 12: Appendix: Four Complementary Hung Hing Business Segments
Appendix: Four Complementary Hung Hing Business Segments Consumer Product Book & Package Printing Corrugated Box Paper Trading Packaging Leader globally Major player in China Major player in South China Major player in South China Market position % 2014 interim revenue 54% (HK$728mm) 25% (HK$339mm)
Slide 13: Appendix: Hung Hing established multi-locations infrastructure
Appendix: Hung Hing established multi-locations infrastructure Zhongshan Wuxi Printing & mfg. of folding cartons, litho Printing and manufacturing of folding lam and corrugated containers cartons, litho lam and corrugated Awarded certifications of ISO9001, containers ISO14001, BRC, etc. Awarded cert
Slide 14: Thank you
Thank you A Leading Printer in Asia With unrivalled market leadership, well-balanced portfolio and sustained growth for over six decades, Hung Hing is in an excellent position to take advantage of growing opportunities as our industry continues to build momentum. 13