Tradelink Electronic Commerce Limited · HKEX:536
Tradelink Electronic Commerce — H1 2007 Earnings Presentation
29 slides from Tradelink Electronic Commerce's earnings presentation, Sep 4, 2007
Slide 1: 2007 Interim Results Announcement
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Slide 2: Highlights – Core Business
Highlights – Core Business Solid core business remained strong and delivered stable results Agreement with the Government on current GETS license extended to end of 2009 Started discussion with the Government to renew GETS license for 2010 and beyond Continued to command market share of over 90% for
Slide 3: Highlights – DTTN
Highlights – DTTN DTTNCo has gained broader market awareness and acceptance with a customer base of around 1,000 companies Target to reach 3,000 customers by end of 2007, including customers dotted around China Working with Tradelink to DTTN-enable Tradelink’s customers Launched a project with HKSME
Slide 4: Interim Dividend
Interim Dividend Declared dividend policy: – FY2005 & FY2006: not less than 80% of net profit after tax – Thereafter: not less than 60% of net profit after tax Profit attributable to shareholders amounted at HK$33.8 million 2007 declared interim dividend: – Total: HK$28.1 million – Per share: HK cen
Slide 5: Financial Highlights
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Slide 6: Financial Highlights
Financial Highlights Six months ended 30 June 2007 2006 (Unaudited) (Unaudited) HK$’000 HK$’000 Turnover 116,726 120,730 Profit from operations 54,726 55,655 Share of losses of an associate (11,938) (1,210) Profit attributable to shareholders 33,801 45,215 Earnings per share - Basic HK cents 4.34 HK
Slide 7: Key Financial Ratios
Key Financial Ratios Six months ended 30 June 2007 2006 Operating profit margin 46.9% 46.1% Net profit margin 29.0% 37.5% Effective tax rate 21.6% 17.0% Current ratio 1.64 1.612 Debtor’s turnover days3 7 6 Note 2: As of 31 December 2006 Note 3: The calculation of debtor’s turnover days is based on t
Slide 8: Healthy Cash Flow
Healthy Cash Flow Net cash flow from operating activities of approximately HK$49.9 million Steady Inflow from Operation Trade receivables at HK$26.5 million Solid Cash Position Debtor’s turnover day of about 7 days Zero bad debt Prudent Financial Quick & Consistent Management Customer Payment Cycle
Slide 9: Key Balance Sheet Items
Key Balance Sheet Items At 30 June 2007 At 31 December 2006 (Unaudited) (Audited) HK$’000 HK$’000 Fixed assets 46,721 50,568 Trade receivables 26,463 23,969 Cash and cash deposits4 348,543 335,586 Net assets 324,275 329,223 Note 4: Including customer deposits of HK$171.1 million and HK$171.0 million
Slide 10: Core Business
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Slide 11: Core Business – Government Electronic Trading Services (GETS)
Core Business – Government Electronic Trading Services (“GETS”) Services Details Import or Export Declaration (“TDEC”) e-lodgment of import or export declaration with Customs e-lodgment of notification to the Trade & Industry Department about cut-and-sewn Production Notification (“PN”) garments manu
Slide 12: Value-added Services
Value-added Services Services Details Trader Documentation Services web-based application solutions (“TDS”) facilitates secure electronic document exchange for international trade transactions platform that assists shippers and forwarders to prepare and submit shipping orders and Electronic Shipping
Slide 13: Operating Mode of Key Services
Operating Mode of Key Services Tradelink transaction fee + Government fee Government fee + + Logistics e-submission of e-submission of Services trade related trade related Trading Community Providers documents documents Importers HKSAR Government Exporters e-confirmation e-confirmation Freight Trade
Slide 14: 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 9.5 million in 1H 2007 (FY 2006: 19 million) Dedicated customer services offering hotline, onsite t
Slide 15: Growth Driver – DTTN
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Slide 16: Genesis – Digital Trade and Transportation Network (DTTN)
Genesis – Digital Trade and Transportation Network (“DTTN”) Platform completed 2006 Tradelink is being selected 2005 October 2006 – Full commercialisation 2003 Signed 15-year operation agreement with the Government 2001 Government commenced study 16
Slide 17: Ultimate Shareholding Structure
Ultimate Shareholding Structure 21% 51% HKSAR Tradelink 28% Government HK Association The Federation Hong Kong The Indian of Freight Hong Kong HK Exporters’ of Hong Kong General Chamber of Forwarding and Shipper’s Association Industries Chamber of Commerce Logistics Council Commerce Limited 17
Slide 18: Core Infrastructure
Core Infrastructure Reliable, secure transformation and delivery of legally recognised electronic documents – Any-to-any protocol and document transformation – Secure delivery – encryption and digital signatures – Documents stored online for 2 years, offline for 7 years – Data inheritance service al
Slide 19: Functional Blueprint
Functional Blueprint Rich array of capabilities for messaging, transactions, payments, security etc. Banks & Freight Inspection Sellers Buyers Financial Forwarders Agencies Institutions Government Insurance Carriers Terminals & Agencies Institutions DTTN Key Services Offering Electronic message rout
Slide 20: Support the Whole Supply-Chain
Support the Whole Supply-Chain Purchase Process Purchase / Sales Order, Order Confirmation Delivery Packing List / ASN, Commercial Invoice, Inspection Certificate, Insurance Local and Overseas Booking, Shipping Order, Arrival Notices, Transportation Transport Documents - Master / House Waybill - Sea
Slide 21: DTTN Interconnection Example
DTTN Interconnection Example (Purchase to Delivery) Goods Status 6. Shipment Status (XML) Goods (RFID / EPCGlobal) 5. BL (XML) Tracking 2. SO, CI, PL (XML) Locations Forwarders 3. Master SO (XML) 4. Master BL, Shipment Status (XML) Physical Delivery 1. PO (X 12) 1. PO (Excel) Buyer 1 DTTN 4. Shipmen
Slide 22: Model for Worldwide Interconnections
Model for Worldwide Interconnections 3c. import 1c. import 1a. PO customs Mainland documents HK SAR Documents Customs 1b. draft import Customs documents (for 1a. PO import of raw 3a. BL, CI, PL 1a. PO Overseas materials e-Logistics 3b. draft import 1b. draft import Hong Kong 2a. SO, CI, PL customs d
Slide 23: Progress
Progress DTTNCo has gained broader market awareness and acceptance with a customer base of around 1,000 companies Target to reach 3,000 customers by end of 2007, including customers dotted around China Working with Tradelink to DTTN-enable Tradelink’s customers Launched a project with HKSME Associat
Slide 24: Action Plan
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Slide 25: Action Plan
Action Plan Secure future (i.e. GETS agreement) of Tradelink’s core business Speed up the market development of DTTN Identify and develop more revenue opportunities to grow both Tradelink and DTTN 25
Slide 26: nN " S Io ¢ S$
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Slide 27: Thank You
Thank You 27 27
Slide 28: Condensed Consolidated Income Statement (Unaudited)
Condensed Consolidated Income Statement (Unaudited) Six months ended 30 June 2007 2006 (Unaudited) (Unaudited) (HK$'000) (HK$'000) Turnover 116,726 120,730 Interest income 4,742 3,510 Staff costs (37,757) (38,373) Depreciation (5,705) (7,656) Other operating expenses (23,280) (22,556) Profit from op
Slide 29: Condensed Consolidated Balance Sheet (Unaudited)
Condensed Consolidated Balance Sheet (Unaudited) As at 30 June 2007 As at 31 December 2006 (Unaudited) (Audited) (HK$'000) (HK$'000) Non-current assets Fixed assets 46,721 50,568 Interest in leasehold land held for own use under operating lease 5,697 5,769 Interest in associates 55,281 67,116 Other
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