| Six months ended 30 June | change | ||
| 2009 | 2008 | ||
| HK$'million | HK$'million | ||
| Revenue | 3,956.9 | 5,242.3 | -25% |
| Profit before tax | 853.7 | 1,040.9 | -18% |
| Net profit attributable to shareholders | 818.3 | 928.8 | -12% |
| Basic earnings per share | HK27.3 cents | HK31.0 cents | -12% |
| Interim dividend per share | HK10.0 cents | HK12.0 cents | -17% |
| Dividend payout ratio | 37% | 39% | |
| Net asset value per share | HK$2.60 | HK$2.47 | +5% |
| Net gearing | 2% | 26% | |
Hong Kong, August 28, 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 six months ended 30 June 2009, the Group’s revenue decreased 25% to HK$3,956.9 million and net profit declined 12% to HK$818.3 million The directors of the Company have resolved to declare an interim dividend of HK10 cents per share.
According to the latest report of Prismark Partners LLC, the Group maintained its No.1 position in the global laminate market and advanced market share to 14% in 2008. Mr. Cheung Kwok Wa, Chairman of the Company said: “Given management’s prompt response to market changes as well as prudent approach to capital expenditure and working capital management, we further strengthened our financial position with strong operating cash inflow in the current period. Our remarkable operational performance clearly demonstrated the Group’s strong capability to deliver profitability throughout the business cycle. With our stable and seasoned management team, we are confident of our ability to create long term value for our shareholders.”
During the first half of 2009, demand for electronic products gradually improved as the massive economic stimulus measures initiated by governments worldwide started to take effect and end customers replenished their lean inventory level. Laminates demand showed encouraging uptrend towards the end of Q1 2009. Capacity utilisation improved significantly since March 2009 and maintained at a steady level throughout the second quarter.
Decline in export business was in part compensated by buoyant domestic sales in China – which contributed about 39% of the Group’s sales in the first half of 2009. Paper laminates sales in particular was boosted by subsidy policies from the Chinese government on consumer products and automobiles. Key raw materials prices for laminate production including copper, wood pulp and chemical products were significantly lower than last year. Lower raw material costs and better capacity utilisation resulted in notable margin improvement in Q2 2009 against Q1 2009.
Mr. Cheung concluded: “Global economy has continued to show signs of recovery at the beginning of Q3 2009 – which does send positive signals that the market has turned around. For the laminate business, evidence that better times are ahead is reinforced by an uptrend in Q3 2009 order bookings over Q2 2009. In line with usual seasonality, demand for electronics products is expected to rise steadily in the months to come and the Group expects improvement in order inflow in the second half of 2009. Our persistent effort to upgrade our capability to produce thin and high performance laminates produces encouraging results. A number of high density interconnect (“HDI”) PCB customers have utilised our laminate products for mass production. We expect to see significant sales growth from customers for these new products. Leveraging on our diversified product portfolio and competitive business model, the Group will continue to enhance its product mix and pursue expansion in the domestic China laminates market in order to take full advantage of business opportunities arising from favourable government policies.”
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.