Hung Hing Printing Group Limited · HKEX:450

Hung Hing Printing — H1 2018 Earnings Presentation

20 slides from Hung Hing Printing's earnings presentation, Jun 30, 2018

1. Slide 1: Interim Results 6 months to 30 June 2018

   Interim Results 6 months to 30 June 2018 ©2018 Hung Hing Printing Group Ltd.

2. Slide 2: Highlights – Six months ended 30 June, 2018

   Highlights – Six months ended 30 June, 2018 ► Group revenue grew by +4.9% vs. last year to HK$1,464 mil. ► Gross profit margin at 9.5%, down by 4.9% pt. vs. last year ► Loss attributable to the shareholders HK$34.9 mil. (vs. profit of 14.4m same period last year) ► Net cash on-hand HK$1,017 mil. ► I

3. Slide 3: Group external revenue in 1H grew +4.9% to HK$1,464 mil.

   Group external revenue in 1H grew +4.9% to HK$1,464 mil. (HK$ million, Six-month period) 1,600 +4.9% 1,464 1,410 1,395 1,400 1,358 1,323 210 221 233 Paper Trading (PT) 190 1,200 218 102 89 84 66 80 1,000 329 278 297 349 339 Corrugated Box (CB) 800 600 Consumer Product 775 Packaging (CPP) 400 740 784

4. Slide 4: Group EBITDA as % to Sales in 1H down to -0.2%

   Group EBITDA as % to Sales in 1H down to -0.2% EBITDA mainly affected by re-alignment of production capacities, more refrained selling price adjustments for goodwill and abrupt RMB movements EBITDA (HK$ million) EBITDA as % of Sales 80 72 6.0% 70 5.1% 66 5.0% 4.7% 60 4.0% 50 40 3.0% 30 27 2.0% 2.0%

5. Slide 5: Group Income Statement – 1st Half 2018

   Group Income Statement – 1st Half 2018 For the 6 months ended 30 June Commentary (Unit: HK$'000) 2018 2017 $ / % Chg. Vs. 2017 HK$'000 HK$'000 HK$'000 % • Strengthened relationships with key customers on the back of Revenue 1,463.6 1,394.7 68.9 4.9% increased economic uncertainty Cost of sales (1,32

6. Slide 6: Profitability declined across the board, except PT

   Profitability declined across the board, except PT Segment revenue & profit contribution% (6-mth period) Books and Package Printing (BPP) Consumer Product Packaging (CPP) Revenue (HK$mil.) Revenue (HK$mil.) 900 0.3% 400 6% 804 4.8% 784 0.0% 349 300 297 4% 600 -2.0% 200 2% -4.0% 2.3% 300 100 0% -6.0%

7. Slide 7: Strong Financial Position with Net Cash HK$1,017 mil.

   Strong Financial Position with Net Cash HK$1,017 mil. *1: Improved liquidity with net cash HK$ 1,017 mil., and maintained a low gearing ratio of 4.8% *2: Changes of Equity in 1H/18 are mainly: Payout of 2017 final & special dividends HK$ 272 mil., operating loss in the first half HK$ 35 mil., and cu

8. Slide 8: (Loss) / Earnings per Share: 1st Half 2018

   (Loss) / Earnings per Share (LPS/EPS): 1st Half 2018 (Loss)/Profit Basic Attributable to Shareholders (LPS) / EPS 20 2 1.6 14 1.2 11 10 1 0 0 (1) (10) (HK$ million) (HK Cents) (2) (20) (3) (2.4) (22) (30) (4) (3.9) (40) (35) (5) (50) (6) (5.8) (52) (60) (7) 1H2014 1H2015 1H2016 1H2017 1H2018 1H2014

9. Slide 9: Proposed Interim Dividend for 2018

   Proposed Interim Dividend for 2018 (HK¢ per share) Commentary 35.0 Interim Dividend: 30.0 With confidence in creating value through the latest development activities, 25.0 sustaining a solid business performance in 2H, and backing by the robust cash 20.0 27 and financial position: • The Board resolv

10. Slide 10: Appendices

    Appendices ©2018 Hung Hing Printing Group Ltd.

11. Slide 11: Company Profile

    Company Profile Hung Hing Printing Group offers vertically integrated printing and packaging solutions, which encompass product design, paper engineering, digital service, paper trading, warehousing and distribution. Business Geography Geography Prod. space People 7,700-11,500 4 7 15 545 circa Segme

12. Slide 12: Business Structure

    Business Structure Hung Hing Printing Group Limited Book & package Consumer product Corrugated Paper Beluga printing packaging box trading % 7% 2018 Interim 55% HK$804mm 24% HK$102mm 14% N.A. HK$349mm HK$210mm Market Leader Top 5 in Major player in Leader in Innovative position globally China South

13. Slide 13: Our Office and Production Plants

    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 children’s

14. Slide 14: Our Global Presence

    Our Global Presence Sales Offices: Benelux Scandinavia United Kingdom Germany France USA South America ©2018 Hung Hing Printing Group Ltd. I p. 14 ©2018 Hung Hing Printing Group Ltd. | confidential

15. Slide 15: 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

16. Slide 16: Innovation Hub at HH

    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. Improve Creative De-Spec and cost Creating new re-assessment concepts and formats Problem Solving Ba

17. Slide 17: Green Manufacturing

    Green Manufacturing Soy ink Clean Energy Soy-based ink is more environmentally Solar energy is used to friendly, might provide provide hot water more accurate colors, supply to our and makes it easier to dormitories. recycle paper. Recycle We recycle all waste Energy Efficiency materials such as Rep

18. Slide 18: Going forward

    Going forward 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. manufactur

19. Slide 19: 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

20. Slide 20: Thank you.

    Thank you. ©2018 Hung Hing Printing Group Ltd. I p. 20

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