Tradelink Electronic Commerce Limited · HKEX:536
Tradelink Electronic Commerce — FY2007 Earnings Presentation
25 slides from Tradelink Electronic Commerce's earnings presentation, Mar 26, 2008
Slide 1: 2007 Annual Results Announcement
Stock Code：536 2007 Annual Results Announcement 26 March 2008 1
Slide 2: Business Highlights
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Slide 3: Key Highlights
Key Highlights Strong core business of providing front-end GETS continued to dominate the market with each service claiming an over 90% share Six Government Electronic Trading Services (“GETS”) includes: Import or Export Production Certificate of Origin Declaration (“TDEC”) Notification (“PN”) (“CO”
Slide 4: Key Highlights
Key Highlights Dividend policy: – FY2007 & thereafter: not less than 60% of net profit after tax Profit attributable to shareholders amounted at HK$76.2 million Dividends for 2007: – Declared interim dividend: HK cents 3.61 per share – Proposed final dividend: HK cents 6.18 per share – Total dividen
Slide 5: Financial Highlights
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Slide 6: Financial Highlights
Financial Highlights Year ended 31 December 2007 2006 HK$’000 HK$’000 Turnover 245,082 248,300 Profit from operations 120,144 119,300 Share of losses of an associate (23,955) (7,694) Profit attributable to shareholders 76,204 83,216 Earnings per share - Basic HK cents 9.8 HK cents 10.7 - Diluted HK
Slide 7: Key Financial Ratios
Key Financial Ratios Year ended 31 December 2007 2006 Operating profit margin 49.0% 48.0% Net profit margin 31.1% 33.5% Effective tax rate 21.1% 18.6% Current ratio 2.1 1.6 Debtor’s turnover days1 5 6 Note 1: The calculation of debtor’s turnover days is based on the closing balance for trade receiva
Slide 8: Healthy Cash Flow
Healthy Cash Flow Net cash flow from operating activities of approximately HK$103.4 million Steady Inflow Trade receivables at HK$19.4 million from Operation Solid Cash Position Debtor’s turnover day of about 5 days Zero bad debt Prudent Quick & Financial Consistent HK$374.7 million cash and cash de
Slide 9: Key Balance Sheet Items
Key Balance Sheet Items As at 31 December 2007 As at 31 December 2006 HK$’000 HK$’000 Fixed assets 44,547 50,568 Trade receivables 19,381 23,969 Cash and cash deposits2 374,706 335,586 Net assets 339,848 329,223 Note 2: Including customer deposits of HK$171.7 million and HK$171.0 million as at the r
Slide 10: Core Business
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Slide 11: 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 12: 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 20 million in 2007 Dedicated customer services offering hotline, onsite technical support, 35 custo
Slide 13: Highlights – Core Business (GETS services)
Highlights – Core Business (GETS services) Solid core business remained strong and delivered stable results Continued to command market share of over 90% each for all six GETS services Recorded significant increase in usage of TTRS due to the new fee structure introduced by the Government in Jun 200
Slide 14: Highlights – Core Business (non-GETS services)
Highlights – Core Business (non-GETS services) Secured TDS contract from a world leading semiconductor manufacturer, following one from a large German mail order house Expanded business on payment services by developing an electronic credit card payment solution, with DTTN as a major constituent, fo
Slide 15: Highlights – Digi-Sign
Highlights – Digi-Sign Strengthened presence in the banking sector Being appointed by a local bank as the service provider to issue digital certificates to the local and overseas corporate customers of its sister banks in Hong Kong 15
Slide 16: Growth Driver – DTTN
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Slide 17: Highlights – DTTN
Highlights – DTTN DTTNCo’s business gained momentum and grew steadily with a customer base of around 3,600 companies, total transaction volume also grew significantly Focused on market development and customer recruitment in 2007 Developed partnership arrangement with key international service provi
Slide 18: Progress
Progress Exploring interconnection opportunities with public and government organisations in Hong Kong Continue the joint marketing campaign with various parties and trade associations to promote free DTTN-enabled front-end software modules Partner with the Hong Kong Productivity Council in implemen
Slide 19: Action Plan
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Slide 20: 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, aim to develop more value-added services for our existing customers Actively identifying potential bus
Slide 21: Nig yy BAM = = =— 21%
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Slide 22: Thank You
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Slide 23: Appendix
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Slide 24: Consolidated Income Statement
Consolidated Income Statement For the year ended 31 December 2007 2006 (HK$'000) (HK$'000) Turnover 245,082 248,300 Interest income 10,186 7,600 Staff costs (79,474) (77,851) Depreciation (11,065) (14,291) Other operating expenses (44,585) (44,458) Profit from operations 120,144 119,300 Impairment l
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet As at 31 December 2007 As at 31 December 2006 (HK$'000) (HK$'000) Non-current assets Fixed assets 44,547 50,568 Interest in leasehold land held for own use under operating lease 5,626 5,769 Interest in associates 43,020 67,116 Other financial assets - 69,587 93,193 193,040
Tradelink Electronic Commerce — FY2007 Earnings Presentation on 6ix