| FY2009 | FY2008 | change | |
| HK$'million | HK$'million | ||
| Revenue | 9,071.0 | 10,127.8 | -10% |
| Profit before tax* | 1,939.1 | 1,294.3 | +50% |
| Net profit attributable to shareholders | |||
| - Underlying net profit* | 1,793.2 | 1,177.0 | +52% |
| - Reported net profit | 1,648.0 | 1,203.8 | +37% |
| Basic earnings per share | |||
| - Based on underlying net profit* | HK59.8 cents | HK39.2 cents | +52% |
| - Based on reported net profit | HK54.9 cents | HK40.1 cents | +37% |
| Full-year dividend per share | HK28.0 cents | HK22.0 cents | +27% |
| - Interim dividend per share | HK10.0 cents | HK12.0 cents | -17% |
| - Proposed final dividend per share | HK18.0 cents | HK10.0 cents | +80% |
| Dividend payout ratio | 51% | 55% | |
| Net asset value per share | HK$2.78 | HK$2.42 | +15% |
| Net gearing | 10% | 12% |
* Excluding:
2009: discount on acquisition of HK$11.2 million and impairment loss on available-for-sale investment of HK$156.4 million
2008: discount on acquisition of HK$26.8 million
Hong Kong, March 1, 2010 - 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 2009, the Group’s revenue declined 10% to HK$9,071.0 million. Underlying earnings before interest and tax (“EBIT”) (excluding non-recurring items*) increased 41% to HK$1,994.6 million. Underlying net profit increased 52% to HK$1,793.2 million. The directors of the Company have resolved to recommend a final dividend of HK$18 cents per share.
Mr. Cheung Kwok Wa, Chairman of the Group said: “Operating landscape for laminate business improved from second quarter of 2009 due to massive stimulus packages implemented by governments worldwide. Growing signs of global economic stabilization from the third quarter of 2009 helped to lift our sales volume and profitability with remarkable improvement. Boosted by favourable government policies, domestic demand for consumer products in China saw impressive growth at rates well ahead of the rest of the world during the year. The Group, benefited from the persistent focus on the PRC market, has consistently advanced our domestic market share in China. China is now our single largest market with domestic sales denominated in Renminbi (“RMB”) reaching approximately 40% of Group revenue in 2009. Our disciplined operational execution and competitive cost structure, coupled with diversified product portfolio enabled the Group to sail through the financial crisis with outstanding performance.”
Consumption of electronic products was stimulated by the implementation of the “home appliances to the country side” subsidy programme by the PRC government in 2009 which in turn boosted demand for paper laminates. As a result, paper laminates contributed over 15% of Group earnings while overall laminates shipment volume in 2H 2009 was up 25% against first half of 2009 (“1H 2009”). Utilization rates of laminate plants capacities reached over 90% since the third quarter 2009.
The Group will scale up production capability of paper laminates by 400,000 sheets per month in Fogang, Guangdong province in the first half of 2010. Additional monthly capacity of 400,000 sheets each of paper and glass epoxy laminates will be increased in the laminate plant in Jiangyin, Jiangsu province in the second half of 2010, which will facilitate further penetration of printed circuit board (“PCB”) customer base in eastern China. By the end of 2010, monthly laminate capacity is expected to reach 9.2 million sheets, up 15% against the previous year. To promote economic growth and achieve sustainable urban development, the Chinese government has initiated a new pilot scheme for the redevelopment of “Three Olds” – old towns, old villages and old factory buildings in Guangdong province. The Group has been in active discussions with local authorities in Shenzhen to explore the feasibility of redeveloping the plant in Longhua, Shenzhen.
Mr. Cheung concluded: “Global economy is expected to remain stable in year 2010 with positive growth prospects in emerging markets especially China. Recent economic data indicated widespread rebound in global manufacturing activities as well as improving trend for export demand in US and Europe, which is a clear sign of continued economic recovery. Looking ahead, the Chinese government will continue to implement the subsidy policy of household appliances and automobile purchases in 2010. These measures will definitely have a positive impact on domestic consumption of electronic products which will translate into strong demand for laminate products. Business momentum for electronic products in the first two months of 2010 reflected a sequential upturn against the last quarter of 2009. On the back of higher commodities prices and robust market demand, average selling prices of laminates experienced an uptrend in the first two months of 2010 against the previous quarter. Supply of glass yarn and glass fabric remained tight recently. Benefiting from our vertically integrated business model with a stable supply of upstream materials, the Group definitely has a competitive advantage over our peers in the industry.”
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.