CITIC 1616 Holdings Limited 中信 1616 集團有限公司

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Derick Pitts
5 years ago
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1 Holdings Limited 中信 1616 集團有限公司 (Stock Code: 1883) Interim Results Announcement for the six months ended 3 June August 29 1

2 Highlights for the Six Months Ended 3 June 29 Profit attributable to the equity holders of the Company increased by 17.7% to HK$177.8 million, as compared against last year Turnover recorded a 18.2% growth of as compared to 28 Revenue generated from Voice services amounted to HK$842.6 million, representing a 15.3% increase as compared to 28 Revenue generated from SMS services rose 17.9% compared against last year to HK$137.8 million in 28 Revenue generated from Mobile VAS rose by 49.7% to HK$56.3 million Revenue generated from Data services rose 22.3% to HK$ million As at 3 June 29, cash and cash equivalents was HK$841.5 million No debt as at 3 June 29 Interim dividend of 2.4 cents (28 Interim: 2 cents), an increase of 2.% as compared to 28 2

3 Financial Review 3

4 Turnover Turnover increased 18.2% to HK$1,333.5 million when compared with last year HK $m Turnover 1,5 1,2 1, % 18.2% 1, % 22.3% % 1.4% 1.3% % 63.2% Six months ended 3 June Voice Services SMS Services Data Services Mobile VAS 4

Turnover of Four Major Business Segments HK$ m 1, 8 6 731. 15% Voice Services 842.6 HK$ m 15 12 9 116.9 18% SMS Services 137.

5 Turnover of Four Major Business Segments HK$ m 1, % Voice Services HK$ m % SMS Services Six months ended 3 June Six months ended 3 June Mobile VAS Data Services HK$ m % 5% 56.3 HK$ m % Six months ended 3 June Six months ended 3 June 5

6 Turnover Breakdown Turnover Breakdown by Business HK$m 2,5 2, % 2, 21.4% 1,5 1, 9.9% 64.9% 1, % 21.5% 1.4% 18% 18% 1, % 22.3% 1.3% % 63.2% 1-12/28 1-6/28 1-6/29 Voice Services SMS Services Data Services Mobile VAS 6

7 Profit Growth Net profit attributable to the equity holders 2 HK$m 18% Six months ended 3 June 7

8 Sustain Solid Margin 3% 25% 2% 21.6% 2.6% 2.% 15% 1% 16.4% 16.1% 16.% 13.7% 13.3% 13.4% 5% 27* 28 6/29 EBITDA margin Operating margin Net margin * 27: It excluded interest income from IPO and included CPCNet s whole year impact. 8

9 Strong Liquidity and Capital Structure HK$m Operating profit before changes in working capital Net cash generated from operating activities + Interest received Capital expenditures (including Capital commitments) 3 June June HK$m At 31 Dec 28 At 3 Jun 29 Cash and cash equivalents Debt - NIL - - NIL - Gearing ratio Net Cash Net Cash 9

10 Shareholding Structure Others 33.5% CITIC PACIFIC 52.6% Cornerstone Investors 8.5% Government of Singapore Investment Corporation Pte Ltd. 5.4% 1

11 Business Review 11

12 Major Business Segment Voice Services Handled approximately 5.5bn mins voice traffic Voice Services 28 Voice Sales by customer HK$m (mn mins) 8, 7, 15.3% , 8 Rest of World 48.5% China 51.5% 6, 5, 4, 3, 2, 1, , % 11.7% 72.2% 45.5% 5, % 8.5% 77.4% Six months ended 3 June Rest of World 56.1% China 43.9% Rev per min (HK$) China Inbound (LHS) International (LHS) China Outbound (LHS) Turnover (RHS) 12 Six months ended 3 June

13 Major Business Segment Voice Services Expanded voice product portfolio with China and International operators to leverage on existing relations and resources (e.g. 3G video call) Interconnected with 4 new international customers for voice business Established direct interconnect to Qatar, South Africa, Brazil, and Bangladesh Entered a strategic partnership with the world s largest long-distance phone company Completed the acquisition of Macquarie Telecom Merged in ChinaMotion Netcom successfully Challenge in the period: - Change of market condition including price pressure of voice services 13

14 Major Business Segment SMS Services Handled approximately.8 bn SMS messages (mn messages) 1,5 1, % 16.% 12.7% 17.4% 17.9% 19.3% % 19.4% 18.8% 23.5% Six months ended 3 June SMS Services HK$ m SMS Sales by customer Rest of World 56.9% Rest of World 59.2% China 43.1% China 4.8% Rev per message (HK$) China Outbound (LHS) China Inbound (LHS) Hong Kong (LHS) International (LHS) Turnover (RHS) Six months ended 3 June 14

Major Business Segment SMS Services Riding on the 3G evolution of the Chinese mobile market to further leadership in international SMS for all mobile carriers in China.

15 Major Business Segment SMS Services Riding on the 3G evolution of the Chinese mobile market to further leadership in international SMS for all mobile carriers in China. Inter-standard SMS delivery amongst different China 3G standards for more than 8 countries worldwide As one of the leading GSMA recognized "Open Connectivity (OC)" SMS hubs, CITIC has further strengthen our position in the CDMA community to provide SMS delivery to both GSM and CDMA operators Extended SMS service converge to middle East, Eastern Europe, USA, and CIS region (formally known as Soviet Unions) Extended enterprise SMS capability 15

16 Major Business Segment Mobile VAS Benefits from Chinese granted 3G mobile license, inter-standard roaming and VAS of roaming voice and data activities can be carried out with CITIC roaming platform Virtual International Access Number, enhanced version of "Single IMSI Multiple Number (SIMN)" creates a new market demands in countries such as USA, Philippines, Italy and Hong Kong Amount of subscribers on CITIC "Prepaid Roaming Hubbing" service increased significantly, including operators customers in China, Hong Kong, Taiwan and Macau, Philippines, Malaysia, Japan, Italy, Thailand, Indonesia, Korea, UK, Greece and Singapore Formally establish CITIC as a CDMA roaming service provider with a partnership with TNSI HK$m % Six months ended 3 June Revenue - Mobile VAS Mobile VAS

Major Business Segment Data Business Continue to maintain stable revenue growth with improvement of net profit margin Obtained the ISO 91:2 and 271 Information Security Management System

Distinguished Salesperson Award (DSA) by Hong Kong Management Association Customer Relationship Excellence (CRE) Awards by Asia Pacific Customer Service Consortium - the awards on People Development

17 Major Business Segment Data Business Continue to maintain stable revenue growth with improvement of net profit margin Obtained the ISO 91:2 and 271 Information Security Management System Certification Achievements ITeS Best Choice Award under IDC hosting service; Enterprise video conferencing service; Vulnerability assessment and recovery managed service & MPLS VPN service The 41th Distinguished Salesperson Award (DSA) by Hong Kong Management Association Customer Relationship Excellence (CRE) Awards by Asia Pacific Customer Service Consortium - the awards on People Development Program and Integrated Support Team Outstanding Strategic Performance Awards by Capital Magazine The Golden Peak Awards by Outstanding Enterprise Manager Association (Taiwan) - Outstanding Enterprises of the Year & Outstanding Entrepreneurial Leaders of the Year HK$m VPN 22.3 % Other Data Business Six months ended 3 June 17

18 Prospects 18

19 Prospects Core Businesses Stable growth in voice services business; expand retail voice services Maintain growth in SMS business Focus on the development in new markets for Mobile VAS business New Business The acquisition of Macquarie Telecom Pte Ltd. strengthens the Group s business foundations in Singapore and will act as our stepping stone to Middle East, Africa and South Asia 19

20 Q&A 2

CITIC 1616 Holdings Limited 中信 1616 集團有限公司

CITIC 1616 Holdings Limited 中信 1616 集團有限公司 Holdings Limited 中信 1616 集團有限公司 (Stock Code: 1883) (Stock Code: 1883) Interim Results Announcement for the six months ended 3 June 21 11 August 21 1 Highlights for the Six Months Ended 3 June 21 Profit