| FY2008 | FY2007 | change | |
| HK$'million | HK$'million | ||
| Revenue | 10,127.8 | 10,426.8 | -3% |
| Profit before tax* | 1,294.3 | 2,054.8 | -37% |
| Net profit attributable to shareholders | |||
| - Underlying net profit* | 1,177.0 | 1,813.3 | -35% |
| - Reported net profit | 1,203.8 | 1,813.3 | -34% |
| Basic earnings per share | |||
| - Based on underlying net profit* | HK39.2 cents | HK60.4 cents | -35% |
| - Based on reported net profit | HK40.1 cents | HK60.4 cents | -34% |
| Full-year dividend per share | HK22.0 cents | HK30.0 cents | -27% |
| - Interim dividend per share | HK12.0 cents | HK10.0 cents | +20% |
| - Proposed final dividend per share | HK10.0 cents | HK20.0 cents | -50% |
| Dividend payout ratio | 55% | 50% | |
| Net asset value per share | HK$2.42 | HK$2.25 | +8% |
| Net gearing | 12% | 23% |
* Excluding the discount on acquisition of HK$26.8 million
Hong Kong, March 27, 2009 - The world’s largest laminate manufacturer Kingboard Laminates Holdings Limited (the “Company”) (HKEx: 1888) and its subsidiaries (the “Group”) today announced that for the year ended 31 December 2008, the Group’s revenue declined 3% to HK$10,127.8 million. Underlying earnings before interest and tax (“EBIT”) decreased 37% to HK$1,410.4 million (excluding one-off non-cash exceptional item*). Underlying net profit decreased 35% to HK$1,177.0 million. The directors of the Company have resolved to recommend a final dividend of HK$10 cents per share.
Mr. Cheung Kwok Wa, Chairman of the Company said: “We delivered resilient results amid adverse business conditions in the second half of 2008 clearly indicated that we have outperformed our peers during this down cycle. The Group chalked up modest growth in both revenue and net profit for the first half of 2008 on the back of stable business. However, the sudden downturn in the world economy posted a severe impact on the entire supply chain of the global technology sector towards the end of 2008. The Group experienced a fall in both revenue and net profit in the fourth quarter of 2008 (“Q4 2008”). In spite of this extremely tough operating environment, the Group stayed profitable for the full year of 2008 and our financial position remained robust. This clearly demonstrates that our business model with a flexible and effective cost structure has successfully buffered the Group against the cyclicality of the electronics industry. ”
The Group experienced an uptrend in demand in February 2009. As a result, all laminate plants operated at higher utilization rates in February 2009 as compared to January 2009. In addition, reduced raw material costs in Q1 2009 is expected to ease margin pressure as compared to that experienced in Q4 2008.
Mr. Cheung concluded: “Although the global electronics industry faces significant challenges in 2009, our business outlook remains positive in the long term. As a key manufacturer for laminate products in China, we shall benefit from the enormous growth potential of this emerging market. A series of economic stimulus measures introduced by the Chinese government recently, in particular, the subsidy policy for electronic products purchase in the rural area is likely to have a positive effect on the growth prospects for the Group. Further industrial consolidation is expected in the next few quarters, the Group is well poised to benefit from the consolidation. Whilst we have no imminent intention to expand capacity, we will continue to invest in high end laminate production capabilities, including thin and high performance laminate. ”
About Kingboard Laminates Holdings Limited
Kingboard Laminates Holdings Limited (HKEx: 1888) is a leading vertically-integrated electronics materials manufacturer, specializing in the production of laminates, a fundamental material ultimately used for the production of all kinds of electronic products. The Company is the global leader in rigid laminates, with a strategic network of 21 manufacturing facilities in the PRC. It was successfully listed on the main board of the Stock Exchange of Hong Kong in December 2006.