Tradelink Electronic Commerce Limited · HKEX:536
Tradelink Electronic Commerce — FY2011 Earnings Presentation
21 slides from Tradelink Electronic Commerce's earnings presentation, March 2012
Slide 1: 2011 Annual Results Announcement
Tradelink Electronic Commerce Limited 貿易通電子貿易有限公司 Stock Code : 0536 2011 Annual Results Announcement 1
Slide 2: Corporate Profile
Corporate Profile Listing Date •28 October 2005 Share Price •HK$1.19 (@ 27/3/2012) Issued Shares •782,610,508 shares (@ 27/3/2012) Market Cap •HK$931,306,505 FY End Date •31 December •TAL Apparel Limited (12.94%) Major Shareholders •The Financial Secretary Incorporated (12.30%) (@ 27/3/2012) •DJE In
Slide 3: Agenda
• Business Review • Financial Highlights • Prospects • Q&A • Appendix 3
Slide 4: Tradelink
Tradelink Tradelink’s core business of providing Government Electronic Trading Services (GETS) declined by 8% compared to year 2010 due to a 4% decrease in overall GETS market and severe competition Additional revenue due to mandatory use of Customs & Excise (C&ED) Road Cargo System (ROCARS) bridged
Slide 5: DTTN
DTTN Maintained steady development Operational income more than doubled compared with 2010 Collaborated with Cathay Pacific Airways and GLSHK utilizing DTTN to pilot the world’s first 100% paperless e-freight project, laid the foundation for closer co-operation with Cathay Our revised strategy for d
Slide 6: Digi-Sign
Digi-Sign Expansion into the e-banking security market continued Operations progressed satisfactorily despite some delays in new business roll- out which were beyond control of the team Nearly completed preparatory work for developing a common authentication token scheme to meet the e-banking needs
Slide 7: China
China 3 original China investments returned a much improved performance from a loss of HK$4.0 million in 2010 to a gain of HK$5.8 million in 2011 Investing RMB9.4 million, during the course of the year, into 2 joint ventures with strategic partners, one with Kunshan District Government and ECI Corpo
Slide 8: Financial Highlights
• Business Review • Financial Highlights • Prospects • Q&A • Appendix 8
Slide 9: Final Dividend
Final Dividend The sixth consecutive year with a 100% dividend payout Declared interim dividend: HK cents 2.8 per share Proposed final dividend: HK cents 6.1 per share Total dividend: HK cents 8.9 per share 9
Slide 10: Financial Review
Financial Review Excluding one-off other net (loss)/ income items, operating margin and profit further improved over 2010 - Operating margin increased from 33.9% to 36.5% - Net attributable profit for 2011 increased by nearly 24.0% 10
Slide 11: Financial Highlights
Financial Highlights Year ended 31 December (HK$M) 2011 2010 Change Turnover 206.2 216.1 (4.6%) One-off other net (loss)/income items (0.4) 12.4 (103.2%) Profit from operations 74.9 85.6 (12.5%) Profit before taxation 80.8 81.6 (1%) Profit attributable to equity shareholders 70.1 69.3 1.2% Profit fr
Slide 12: Key Financial Ratios
Key Financial Ratios Year ended 31 December 2011 2010 Operating profit margin* 36.5% 33.9% Net profit margin 34.0% 32.1% Effective tax rate 13.2% 15.1% Current ratio 1.83 1.89 Debtors’ turnover days 6 6 *Exclude one-off net (loss)/income items 12
Slide 13: Key Balance Sheet Items
Key Balance Sheet Items (HK$M) As at 31 December 2011 As at 31 December 2010 Fixed assets 45.0 58.7 Trade receivables 27.2 22.9 Other financial assets 225.6 156.7 Cash and bank deposits 148.0 216.0 Net assets 340.8 336.3 13
Slide 14: Strong and Healthy Financials
Strong and Healthy Financials Net cash flow from operating activities totaled approximately HK$79.1 million Trade receivables at HK$27.2 million Debtors’ turnover day at about 6 days HK$148 million of cash and bank deposits as at 31 December 2011 Zero bad debt Zero gearing 14
Slide 15: Prospects
• Business Review • Financial Highlights • Prospects • Q&A • Appendix 15
Slide 16: Prospects
Prospects Tradelink Re-double our effort to protect revenue from GETS With positive market response and continuous customer support, Tradelink’s ROCARS solution will represent a new revenue stream DTTN Transaction levels should increase with a number of new projects underway Exploring ways to develo
Slide 17: Prospects (cont'd)
Prospects (cont’) Digi-Sign Key projects roll-out in 2012: – e-banking security device service; – Common authentication token scheme, and – Smart Warrant Card project for the Hong Kong Police Received considerable interest from potential user banks with the solutions we developed for accessing “high
Slide 18: Q&A
• Business Review • Financial Highlights • Prospects • Q&A • Appendix 18
Slide 19: Q&A
• Business Review • Financial Highlights • Prospects • Q&A • Appendix 19
Slide 20: Consolidated Income Statement
Consolidated Income Statement Year ended 31 December 2011 2010 (HK$’000) (HK$’000) Turnover 206,176 216,091 Interest income 8,302 8,028 Other net (loss)/ income (422) 12,408 Staff costs (88,188) (84,757) Depreciation (19,517) (20,877) Other operating expenses (31,429) (45,312) Profit from operations
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet As at 31 December 2011 As at 31 December 2010 (HK$’000) (HK$’000) Non-current assets Fixed assets 45,010 58,712 Goodwill 9,976 9,976 Interest in associates 97,975 78,744 152,961 147,432 Current assets Trade receivables 27,194 22,916 Other receivables and prepayments 21,832
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