| Six months ended 30 June | change | ||
| 2010 | 2009 | ||
| HK$'million | HK$'million | ||
| Revenue | 16,401.8 | 9,001.5 | -82% |
| EBITDA | 3,632.5 | 2,217.3 | +64% |
| Profit before tax | 2,521.2 | 1,261.8 | +100% |
| Net profit attributable to shareholders | 1,780.4 | 983.3 | +81% |
| Basic earnings per share | HK$2.108 | HK$1.165 | +81% |
| Interim dividend per share | HK50.0 cents | HK30.0 cents | -67% |
| Dividend payout ratio | 24% | 26% | |
| Net asset value per share | HK$27.3 | HK$24.1 | +1% |
| Net gearing | 23% | 22% | |
Mr. Paul Cheung Kwok Wing, Chairman of the Company said: ¡§Both laminate and printed circuit board (PCB) divisions posted spectacular performance in the 1H of 2010. The Group¡¦s laminate division maintained its No. 1 position in the world with leading market share for the fifth consecutive year and our PCB division remained the largest PCB manufacturer in China. Chemical division recorded significant growth in revenue against the same period last year, which in turn became the key growth impetus for the Group. Moreover, leveraging on our robust financial capability, the Group had successfully built up a new business ¡Vproperty developments, which is expected to generate attractive returns to our shareholders in the coming years.¡¨
The laminate division delivered record-breaking revenue and earnings. Revenue (including inter-segment sales) increased by 67% to HK$6,853.8 million while shipment volume increased by 34% with average monthly shipment reaching 9.4 million square meters. Earnings before interest, tax, depreciation and amortization (¡§EBITDA¡¨) rose 54% to HK$1,931.6 million. Laminate shipment volume softened in May and June this year as customers made inventory adjustments. However, since the end of July, the Group has experienced a strong rebound in customers order level. Currently, most of the Group¡¦s laminate plants are operating at full capacities. Monthly production capacities of both composite epoxy material (¡§CEM¡¨) laminates and glass epoxy laminates will each increase by 400,000 sheets under the phase one expansion plan of the Jiangyin plant, Jiangsu province in the second half of 2010. Total monthly laminate production capacity for the Group is expected to reach 9.8 million sheets by the end of this year. Furthermore, in line with laminate capacities expansion plans, the Group also plans to set up upstream materials production capacities of glass fabric and glass yarn in eastern China over the next few years.
PCB division¡¦s revenue jumped 48% to 4,538.3 million, and EBITDA rose 66% to HK$780.7 million. High density interconnect (¡§HDI¡¨) PCB sales, as a percentage of total PCB revenue, increased substantially from only 2% during the same period last year to 10% in 1H 2010. PCB order bookings maintained good momentum in the first two months of the third quarter. In particular, the increasing popularity of 3G telecommunications and high technology handheld electronic gadgets have driven the growth of HDI sales, making this product segment a key growth driver for the PCB division. The new PCB plant at Yizheng Industrial Park, Yangzhou, Jiangsu province is currently undergoing first phase of construction. With trial production scheduled for the middle of 2011, the plant is expected to reach monthly capacity of one million square feet by the end of 2011.
Boosted by a vibrant domestic market in China and additional sales contribution from the Yangzhou chemical refinery plant in Jiangsu province, chemical division¡¦s revenue achieved remarkable growth. Revenue in 1H 2010 soared 143% to HK$6,577.9 million. Fuelled by robust demand, the phenol/acetone plant in Huizhou, Guangdong province generated substantial earnings for the division. The caustic soda plant in Hengyang, Hunan province also recorded satisfactory return in 1H 2010. Hence, the chemical division¡¦s EBITDA jumped 84% to HK$828.1 million. Share of associates results (majority of which was contributed by the methanol joint venture with China BlueChemical Limited) increased to HK$90.8 million as the average selling price for methanol recovered in 1H 2010 against the same period last year. Selling prices for the Group¡¦s key chemical products remained steady in the first two months of the third quarter. Demand for phenol/acetone extended its robust momentum. Meanwhile, the efficiency enhancement plan currently in progress in the Huizhou phenol/acetone plant, Guangdong province is expected to be completed by the end of this year.
The Group¡¦s property developments projects in eastern and southern China are making good progress. Both commercial investment properties ¡V Kingboard Modern Plaza in Shanghai and Zhan Wang Digital Plaza in Guangzhou - contributed stable and recurring rental income. Meanwhile, pre-sale of Shanghai Yu Garden in Kunshan, Jiangsu province has received an overwhelming response with pre-sale ratio of approximately 80%. Total investment for this residential project is approximately RMB580 million and cash receipt in advance in connection with the pre-sale of this project was over RMB800 million at the end of June 2010. Earnings in respect of this project will be recognized in next financial year. The Group currently holds a land bank with a gross floor area of approximately 2.2 million square meters in China, of which about 75,000 square meters are completed investment properties held for leasing, with the rest being properties held for development. These sites are located mainly at prime locations in Kunshan, Jiangsu province, Shanghai and Guangzhou. Management will actively seek good business opportunities to further enhance shareholders value. Leasing activity at Guangzhou Dong Zhao Building kicks off in the second half of 2010 and is expected to bring in additional rental income next year. Meanwhile, the Group has made good progress in discussions with local authorities in Shenzhen to explore the feasibility of redeveloping the plant in Longhua, Shenzhen under the ¡§City Renewal Scheme¡¨.
Mr. Cheung concluded: ¡§In May 2010, it is so encouraging that we had the honor to be named by Forbes Magazine as one of the Global 2000 leading companies and by Bloomberg Businessweek as one of the leading Tech 100 companies.¡¨
About Kingboard Chemical
Kingboard Chemical Holdings Limited (HKEx: 148) is a global leader in laminate and printed circuit board as well as a major chemical supplier in China. The Group¡¦s core manufacturing capability comprises an integrated network of more than 60 plants in China. The Kingboard Group of companies also includes Kingboard Laminates Holdings Limited (HKEx: 1888), Kingboard Copper Foil Holdings Limited (listed on the Singapore Exchange) and Elec & Eltek International Company Limited (listed on the Singapore Exchange).