CITIC 1616 Holdings Limited 中信 1616 集團有限公司

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Jerome McDonald
5 years ago
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1 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 August 21 1

2 Highlights for the Six Months Ended 3 June 21 Profit attributable to equity holders of the Company increased HK$18.1 million, as compared against last year Turnover recorded a 3.2% drop of as compared to 29 by 1.3% to Revenue generated from Voice services amounted to HK$79.1million, representing a 6.2% decrease as compared to 29 Revenue generated from SMS services rose 9.9% compared against last year to HK$151.4 million in 21 Revenue generated from Mobile VAS rose by 16.9% to HK$65.8 million Revenue generated from VPN services rose 3.1% to HK$ million Revenue generated from the data services amounted to HK$68.8 million, a decrease of 22.% as compared to 29 As at 3 June 21, cash and cash equivalents was HK$36.9 million No debt as at 3 June 21 Interim dividend of 2.4 cents (29 Interim: 2.4 cents) 2

Turnover of Four Major Business Segments HK$ m 1, 8 6 842.6 6.2% Voice Services 79.1 HK$ m 18 15 12 9 137.8 9.9% SMS Services 151.

3 Turnover of Four Major Business Segments HK$ m 1, % Voice Services 79.1 HK$ m % SMS Services Six months ended 3 June Six months ended 3 June HK$ m % Mobile VAS Six months ended 3 June HK$m Data Services % 3.1% VPN ISP & Security Other Data Business Six months ended 3 June 3

4 Turnover Turnover decreased 3.2% to HK$1,291.2 million when compared with last year HK $m Turnover 1,5 1,2 1, % 22.3% 3.2% 1, % 22.% 9 1.3% 11.7% % 61.2% Six months ended 3 June Voice Services SMS Services Data Services Mobile VAS 4

5 Sustain Solid Margin 3% 25% 2% 2.6% 2.7% 21.4% 15% 16.% 13.4% 16.6% 13.9% 16.8% 14.6% 1% 5% * 6/21 * EBITDA margin Operating margin Net margin * Excluded Share Option Expenses 5

6 Sustain Solid Margin (Con t) 5% 4% 3% 32.8% 33.7% 34.1% 2% 1% * 6/21 * (Turnover network expenses) Turnover * Excluded Share Option Expenses 6

7 Strong Liquidity and Capital Structure HK$m 3 June 3 June 3 June Operating profit before changes in working capital Net cash generated from operating activities + Interest received Capital expenditures (including Capital commitments) - General - Broadway Centre 83.8 NIL 69.9 NIL HK$m At 31 Dec Dec 29 At 3 Jun 21 Cash and bank deposits Debt - NIL - - NIL - - NIL - Gearing ratio Net Cash Net Cash Net Cash 7

8 Shareholding Structure Others 39.4% CITIC Pacific 6.6% 8

9 Business Review 9

10 Major Business Segment Voice Services Handled approximately 4.91bn mins voice traffic Voice Services 29 Voice Sales by customer (mn mins) HK$m 1, 8, 6, 4, , % 8.5% 6.2% 2.8% 18.6% 5.6% , % 8.3% 1, Rest of World 56.1% China 43.9% 2, 77.4% 6.4% 74.6% 2 Rev per min (HK$) Six months ended 3 June.161 Rest of World 58.1% China 41.9% China Inbound (LHS) International (LHS) China Outbound (LHS) Turnover (RHS) 1 Six months ended 3 June

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, ITFS and HCD) Established global MPLS network covering major nodes of CITIC to enhance service level for different services.

11 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, ITFS and HCD) Established global MPLS network covering major nodes of CITIC to enhance service level for different services. Enlarge our footprint by interconnected with 51 new international carriers for voice business in 21 Established new direct coverage into Turkey, Portugal, and Sri Lanka Entered a strategic partnership with a Latin America operator to kick start our direct wholesale and retail business into the region Completed the 2% acquisition of CTM from CITIC Pacific Penetrate to retail market in Hong Kong, Singapore, Taiwan, Japan, USA and Canada, providing calling card, broadband phone and bundled Enterprise SMS Services Increase publicity and brand awareness through participation of Int l trade shows and industry awards Challenge in the period: - Decreasing trend on China inbound and outbound traffic - Market consolidation 11

12 Major Business Segment SMS Services Handled approximately.89 bn SMS messages SMS Services 29 SMS Sales by customer (mn messages) 1,5 1, % HK$ m Rest of World 59.2% China 4.8% % 19.4% 18.8% 23.5% 15.9% 6.5% 15.1% 6.3% 39.8% 18.5% 19.3% 22.4% Six months ended 3 June Rest of World 6.% China 4.% Rev per message (HK$) China Outbound (LHS) China Inbound (LHS) Hong Kong (LHS) International (LHS) Turnover (RHS) Six months ended 3 June 12

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.

13 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 CDMA to CDMA and CDMA to GSM SMS delivery. Extended SMS service converge to middle East, Eastern Europe, USA, and CIS region (formally known as Soviet Unions) Extended enterprise SMS capability on both mission critical and delay sensitive meeting the most demand applications. 13

14 Major Business Segment Mobile VAS 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 Extended Mobile VAS product covering CDMA operators. HK$m % Six months ended 3 June Revenue - Mobile VAS Mobile VAS

Major Business Segment Data Business Continue to maintain stable revenue growth and profit margin CPCNet - First HK VPN service provider certified for ISO91 (Quality Management Systems), ISO2

15 Major Business Segment Data Business Continue to maintain stable revenue growth and profit margin CPCNet - First HK VPN service provider certified for ISO91 (Quality Management Systems), ISO2 (Information Technology Service Management System) and ISO271 (Information Security Management System) Achievements (Jan, 21 Jun, 21) The 42th Distinguished Salesperson Award (DSA) by Hong Kong Management Association Customer Relationship Excellence (CRE) Awards by Asia Pacific Customer Service Consortium - the awards on CRM Manager of the Year 29 The 1th Capital Outstanding Enterprise Awards Outstanding VPN Solution Provider, by Capital Magazine The 8 th Golden Torch Awards by Outstanding Enterprise Manager Association (Taiwan) 29 Best IT Candidates Award by Information Management Association (Taiwan) CPCNet - Awarded Caring Company 29/1 by the Hong Kong Council of Social Service 15 HK$m % 3.1% VPN ISP & Security Other Data Business Six months ended 3 June 215.1

16 Prospects 16

17 Prospects Core Businesses Stable in voice services business; expand retail voice services, explore new markets such as Brazil Maintain growth in SMS business Focus on the development in new markets for Mobile VAS business Continue to expand enterprise coverage and launch new product such as cloud security and cloud computing. New Business Full 6 month contribution for CTM which will provide a strong foundation for growth. 17

18 Q&A 18

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) Interim Results Announcement for the six months ended 3 June 29 18 August 29 1 Highlights for the Six Months Ended 3 June 29 Profit attributable to the