Tag: Financial Result

Champion REIT Announces 2019 Interim Results

– Distributable income grew 7.0%, Distribution per Unit up 6.8%
– Office portfolio was the growth driver and continued to enjoy solid rental reversion 
– Improved credit profile by refinancing the existing secured loan with new unsecured loan facilities

Champion Real Estate Investment Trust (stock code: 2778), the owner of Three Garden Road and Langham Place, announces its financial results for the six months ended 30 June 2019.

Overview 
For the first half of 2019, Champion REIT recorded solid results with distributable income increasing by 7.0% to HK$869 million and distribution per unit (“DPU”) increasing by 6.8% to HK$0.1335. The growth was achieved against the backdrop of geopolitical volatilities and stagnant economic growth of Hong Kong.

Three Garden Road 
Leasing demand was mainly fueled by business expansion of existing tenants, while some occupiers maintained a cautious approach. Three Garden Road continued to sustain solid rental income growth in the first half of 2019, which went up 9.9% to HK$738 million, primarily due to positive rental reversion. The passing rents of the property further increased to HK$105.35 per sq. ft. (based on lettable area). Occupancy was 95.8% as at 30 June 2019. 

Langham Place Office Tower 
Positioned as a lifestyle hub, demand for Langham Place Office Tower from lifestyle tenants remained solid. While existing beauty tenants continued to show interest in expanding their footprint, new healthcare and medical operators also opted to set up their presence in the property. Total rental income of Langham Place Office Tower went up 10.8% to HK$185 million. The growth was mainly attributable to positive rental reversion with passing rents rising to HK$44.73 per sq. ft. (based on gross floor area). Occupancy stood at a high level of 98.8% as at 30 June 2019.

Langham Place Mall 
While Hong Kong retail sales weakened in the first half of 2019, Langham Place Mall’s total rental income went up 2.8% to HK$477 million mainly driven by the growth in base rents from overall positive rental reversion. Tenant sales remained resilient and recorded a mild decrease of 0.6%, compared with 2.6% decrease in Hong Kong retail sales. The Mall maintained 100% occupancy as at 30 June 2019. 

Financing 
During the first half of 2019, the Trust has drawn new unsecured loan facilities of HK$5,814 million to refinance the secured bank loan maturing in 2019 and to partially repay the secured bank loan due in 2021. The refinancing would enhance the credit profile, where the secured debt portion was lowered significantly to 24.5% as at 30 June 2019. Gearing ratio further reduced to 17.1% due to increase in appraised value of investment properties. 

Distribution 
For the first half of 2019, the Trust’s distributable income increased by 7.0% to HK$869 million and distribution per unit (“DPU”) increased by 6.8% to HK$0.1335 (2018: HK$0.1250). This represents an annualized distribution yield of 4.3% based on the closing price of HK$6.51 as at 28 June 2019.

Asset Value 
The Trust’s investment properties were appraised at a total value of HK$85.6 billion, representing a 3.0% increase from HK$83.1 billion as at 31 December 2018.

Outlook 
The global macroeconomic environment is expected to remain unclear in the second half of 2019. Underlined by the US-China trade tensions, recent local protests and other macro factors, both office and retail sectors’ leasing demand will be affected. Nonetheless, given the considerable gap between passing rents and market rents for the office portfolio, positive rental reversion should continue. The Trust will continue to adopt an agile leasing management strategy to drive sustainable growth.

Volatilities in the market may bring viable investment opportunities for the Trust. We will continue to take a prudent approach in evaluating potential opportunities globally in the uncertain market environment. 

About Champion REIT (stock code: 2778)
Champion Real Estate Investment Trust is a trust formed to own and invest in income- producing office and retail properties. The Trust focuses on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to 2.93 million sq. ft. of prime office and retail properties by way of two landmark properties, Three Garden Road and Langham Place, one on each side of the Victoria Harbour.
Website: www.championreit.com

Media Contacts: Strategic Financial Relations Limited
Vicky Lee Tel: 2864 4834 Email: vick.lee@sprg.com.hk
Christina Cheuk Tel: 2114 4979 Email: christina.cheuk@sprg.com.hk
Website: www.sprg.com.hk

TTI Delivers a Strong First Half Performance With Record Revenue

New Products Driving Strong Growth

Hong Kong-based global power equipment and floor care company Techtronic Industries Co. Ltd. (“TTI” or the “Group”) (stock code: 669, ADR symbol: TTNDY) announced its results for the six months ended June 30, 2019. It was another record first half for the Group with revenue increasing 8.7%, EBIT and net profit both increasing 11.9%, and earnings per share increasing 12.4%, to approximately US15.61 cent. Revenue grew 10.7% in local currency. The strong first half performance was driven by the launch of new products, category and geographic expansion. Gross margin increased in the first half for the eleventh consecutive year, up 50 bps, increasing from 37.1% to 37.6%. TTI’s disciplined working capital management continued to yield solid performance at 18.4% of sales. The Board is recommending an interim dividend of HK45.00 cents (approximately US5.79 cents) per share, against HK38.00 cents (approximately US4.89 cents) per share in 2018, an increase of 18.4%.

– First Half 2019 Revenue Totaled US$3.7 Billion up by 10.7% in local currency
– Net Profit Continues to Grow at a Faster Rate than Sales, up 11.9%, Driven by the 11th Consecutive First half of Gross Margin Improvement 
– Disciplined Working Capital Management, Delivered Working Capital of 18.4% of Sales
– The Flagship Milwaukee Tool Business continues to Grow 20%+ in local currency 

The Power Equipment segment continued the strong momentum with 14.3% growth in local currency, to revenue of US$3.3 billion. New products, geographic expansion, and entry into new categories all contributed to the excellent performance. Our flagship Milwaukee Tool business once again grew over 20% globally in local currency and our Power Equipment business outperformed the market with double-digit growth. The Floor Care business is starting to improve with a strategic focus on our next generation cordless vacuums, carpet washing products and solutions range. 

Our geographic expansion was also a highlight for the first half with the European team delivering an outstanding 14.2% growth in local currency, led by Milwaukee Tool with over 25% growth. In rest of world, Australia and our Asian companies continued to deliver above market growth at 12.8%. Our North American businesses continued to perform exceptionally well at 9.7% growth with Milwaukee Tool up 20%+ in the US and 28%+ in Canada.

Mr. Horst Pudwill, Chairman of TTI, said, “We are pleased to have achieved another record first half of outstanding growth. Our expanding global manufacturing network and world class supply chain continues to deliver consistent productivity gains. We are well positioned to deliver a strong second half, and importantly, a strong future.” 

Mr. Joseph Galli, CEO of TTI, commented, “New product development is a core strength of TTI and our new product flow continues to accelerate. We continue to aggressively invest in this high speed, world class process so that we can bring to market a stream of high margin new products with cutting edge technology for the months and years to come. With the strength of our new product programs, our outstanding team and strong brand portfolio, we are poised to deliver excellent results.”

About TTI 
Founded in 1985 and listed on the Stock Exchange of Hong Kong Limited in 1990, TTI is a world leader in cordless technology spanning Power Tools, Outdoor Power Equipment, Floor Care Appliances and Accessories for the consumer, professional, and industrial users in the home, construction, maintenance, industrial and infrastructure industries. The Company has a foundation built on four strategic drivers – Powerful Brands, Innovative Products, Exceptional People and Operational Excellence – reflecting a long-term expansive vision to advance cordless technology. The global growth strategy of the relentless pursuit of product innovation has brought TTI to the forefront of its industries. TTI’s powerful brand portfolio includes MILWAUKEE, AEG and RYOBI power tools, accessories and hand tools, RYOBI and HOMELITE outdoor products, EMPIRE layout and measuring products, and HOOVER, ORECK, VAX and DIRT DEVIL Floor Care and Appliances.

TTI is one of the constituent stocks of the Hang Seng Index, FTSE Developed Index and MSCI ACWI Index. For more information, please visit www.ttigroup.com.

All trademarks listed other than AEG and RYOBI are owned by the Group. AEG is a registered trademark of AB Electrolux (publ.), and is used under license. RYOBI is a registered trademark of Ryobi Limited, and is used under license.

For enquiries:
Techtronic Industries Co. Ltd.
Isabella Chan Tel: +(852) 2402 6495 Email: isabella.chan@tti.com.hk
Website: www.ttigroup.com

Strategic Financial Relations Limited 
Veron Ng +(852) 2864 4831 veron.ng@sprg.com.hk
Beverly Chiu +(852) 2114 4329 beverly.chiu@sprg.com.hk
Karen Kwan +(852) 2114 4171 karen.kwan@sprg.com.hk
Website: www.sprg.com.hk

Chlitina Holding Achieved NT$ 8.96 EPS, Revenue Hits Record High

Chlitina Holding (“Chlitina”, ticker:4137 TT) held a board meeting on Aug. 12 to discuss the company’s 2019H1 operating results and dividend policy. Chlitina also announced July 2019 revenue. 

Summary:
– In the first half of 2019, Chlitina reported consolidated sales of NT$ 2.45 billion. Benefiting from its beauty salon franchise core business, Chlitina maintained a steady performance. Additionally, franchisee recruitment and product sales to franchisees both experienced steady growths. Chlitina achieved a gross profit margin of 84%, an operating profit margin of 35.5%, a net profit after tax of NT$ 712 million and after-tax earnings per share (EPS) of NT$ 8.96. Revenue and profit both hit record highs.

– In July 2019, Chlitina reported consolidated sales of NT$ 363 million and YTD consolidated sales of NT$ 2.82 billion, which grew 14% YoY. In May and June 2019, Chlitina sponsored the Shanghai TV Festival and the Shanghai International Film Festival to enhance its brand image. In the second half of 2019, Chlitina will launch more campaign events in airports, on TV shows, and through travel promotions to prepare for the upcoming Autumn-Winter season skin care campaigns.

– Since last year, Chlitina has strategically expanded the UPLIDER Medical Beauty Clinics’ operating size. The company plans to establish five clinics in Shanghai, Nanjing and other cities. Besides medical beauty projects, Chlitina will provide high-end anti-aging services, hoping to take advantage of its research, product development and innovation abilities in order to improve service quality, as well as build a cornerstone for the company’s future development.

– Looking forward to the second half of 2019, the company anticipates high demand within the Chinese beauty industry and a clear path for growth. Thus, we expect continuous sales growth in individual Chlitina stores. So far, Chlitina has 4,829 global franchise stores, and we are optimistic we can achieve our target of adding 400-500 new stores this year earlier than planned.

Looking back at operation results in the first half of 2019:
Chlitina Holding reported consolidated sales of NT$ 2.45 billion, which translates to a YoY growth of 16.86%, driven by positive performances from Chlitina franchises’ steady expansion, franchisee recruitment and product sales to franchisees. The company also adapted policies to enhance internal operational efficiency. Supported by both internal and external improvement, Chlitina achieved a gross profit margin of 84% and an operating profit margin of 35.5%. In addition to revenue from its skin care business, in the first quarter, Chlitina received a 22.24 million RMB financial subsidy from the Shanghai city government. Overall, Chlitina had a net profit after tax of NT$ 712 million, and after-tax earnings per share (EPS) of NT$ 8.96, growing 21.28% and 20.27% respectively. Revenue and profit both hit record highs.

Chlitina Holding explained that the company’s core business, “CHLITINA”, the beauty salon franchise, accounted for up to 96.87% of the company’s total revenue, which benefited from a successful franchise strategy and development in new markets. Additionally, the company paid attention to employee training and upgraded franchise operation quality, which helped operations improve steadily during the period. Chlitina also invested in a branding and advertisement strategy. The company updated its slogan from “Women Love Bravely” to “Love Bravely, Not Hesitantly” to convey the idea of “beauty in action”. Chlitina held a special exhibition to celebrate this theme at the Shanghai Hongqiao Airport with exhibits on 32 walls, and joined the Shanghai TV Festival and the Shanghai International Film Festival, investing in three documentaries while also conducting charity activities. Moreover, Chlitina made use of social media (Weibo) together with other brands to amplify its messages and boost market share, effectively sustaining its core business’s development.

Looking back at operation results in July 2019:
In July 2019, Chlitina reported consolidated sales of NT$ 363 million, which were influenced by the beauty industry’s seasonality. The YTD consolidated sales achieved NT$ 2.82 billion, or a 13.80% increase YoY. As of the end of July, Chlitina had already added 350 franchise stores and the total store number reached 4,829, a 10% increase compared with the same period last year. This development fully showed the company’s stability. Chlitina will keep hosting training courses, consumer acquisition tea parties and experiential activities to maintain franchise store owners’ active attitude and help prepare for the upcoming Autumn-Winter season skin care campaigns.

Second half year of 2019 operation outlook:
Looking to the second half of 2019, we expect high demand within the Chinese beauty industry, and we will focus on Taiwan, Hong Kong and Southeast Asian markets to maintain our core business’ revenue. At the same time, Chlitina will continue to promote our UPLIDER Medical Beauty Clinics and services. We plan to open two general clinics (in Shanghai and Nanjing separately) and three medical beauty clinics (two in Shanghai and one in Nanjing). Aside from general medical beauty services, Chlitina will provide more services to improve suboptimal health and provide anti-aging treatments with products developed through our joint research platform with Tongji University: the Tongji University-Chlitina Regenerative Medical Research Institution. Additionally, all new products will be distributed in all channels. In other words, Chlitina aims to build omni-channel high-quality services, which will become a cornerstone for the company’s future development.

Moreover, Chlitina’s mission is not to satisfy consumers’ desire of beauty, but instead to satisfy high-end anti-aging medical needs in the future. Thus, since 2017, Chlitina has cooperated with Tongji University and established the Tongji University-Chlitina Regenerative Medical Research Institution to research skin recovery and other anti-aging related topics. Already, stem cell skin repair research has delivered preliminary results. According to our study, adipose tissue-derived mesenchymal stem cells (ADSC) is not only a convenient raw material to acquire, but its derivatives also help promote collagen synthesis, inhibit melanin production, accelerate skin wound healing and delay skin aging in clinical trials. ADSC could become a practical ingredient for medical beauty and health maintenance. Chlitina hopes it will soon bring to fruition current products and aging and regeneration medical beauty projects. At the same time, Chlitina will also develop more competitive new products and projects to increase diversity, improve the company’s operations level and maintain a top position in Asia’s beauty industry.

Media Contact:
IR Trust Director Vicky Zhang 
(02) 2585-5702/0920-286-136
vicky@ir-trust.tw
Investor relations contact:
Chlitina Investor Relations Director Anita Hu
(02)2723-8666
ir@chlitinaholding.com

About Chlitina
Chlitina’s core business is franchise beauty salons. The company was founded in 1989, and the founder Dr. W.K. Chen is known as the Father of Amino Acids, the first medical beauty expert to apply amino acids in skincare. In 1997, Chairman Chen Pi-hua expanded Chlitina to the Mainland China market, achieving great renown with high-quality products and a successful business model. The company went public in Taiwan in 2013. The business operates in Mainland China, Taiwan and Hong Kong, and it is expanding throughout Southeast Asia. Chlitina has more than 4,829 franchised shops globally and 4,476 shops in Mainland China. It has trained more than 300,000 professional beauty consultants and become a symbolic Chinese beauty salon chain brand. 
Besides the core business’s steady growth, Chlitina is expanding its business with new programs, such as the Xinmeili e-commerce platform, UPLIDER Medical Beauty Clinic, RnD nails and eyelashes salon. Chlitina hopes to seize new development opportunities with these initiatives. Taking advantage of research, production, branding and distribution channels, Chlitina has become a beauty industry chain. 
Chlitina Official Website: www.chlitina.com

Disclaimer:
Some of the statements contained in this press release may be considered forward-looking statements. These statements identify prospective information. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. These forward-looking statements are subject to a number of factors that may cause actual results to differ materially from the expectations described, which include but are not limited to economic, competitive, market, currency, governmental and financial factors. Chlitina Holding assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions.

Hi Sun Tech Announces 2019 Interim Results: Net Profit Increases 473% to HK$400 million

Establish a Benchmark for Risk Control and Compliance Operations, Consolidate the Competitive Advantage of Payment Industry

A leading payment & finance solutions provider in China, Hi Sun Technology (China) Limited (the “Company”; Stock code: 818.HK), announced the unaudited consolidated interim results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2019 (the “Reporting Period”).

Results Highlights
1. The Company’s payment processing solutions segment continued to grow during the Reporting Period. In 1H2019, the cumulative transaction volume exceeded RMB935 billion, an increase of 36% over the same period of last year. The number of mobile QR code payment transactions increased by more than 12 times over the same period of last year.
2. The Group continued to focus on compliance development, seeking out innovation in payment security and creating an intelligent big data risk control system.
3. Seeking to create greater value and more opportunities in fintech, the Group worked with more enterprises, merchants, financial institutions, third-party payment platforms, and consumers to build a closer, mutually beneficial business ecosystem.

During the Reporting Period, the Group’s consolidated revenue amounted to HK$3,005.8 million, representing an increase of 55% when compared with HK$1,945.1 million for the same period last year. The Group’s operating profit was HK$360.4 million, representing an increase of 1,156% when compared with HK$28.7 million for the same period last year. Profit for the Reporting Period was HK$400.3 million, representing an increase of 473% when compared with HK$69.8 million for the same period last year. The increase in net profit was primarily attributable to the continued growth of the payment processing solutions segment. Basic earnings per share for profit attributable to equity holders of the Company increased by 500% to HK$0.12.

Strengthening Payment Risk Management, Improving Efficiency to Deliver High-quality Solutions
During the Reporting Period, the payment processing solutions segment was in good momentum. The segmental turnover amounted to HK$2,564.3 million, representing an increase of 72% when compared with the same period last year, and the segmental operating profit represents an increase of 690% when compared with the same period last year. In the first half of 2019, the cumulative transaction volume exceeded RMB935 billion and the number of transactions handled was more than 3,950 billion, an increase of 36% and 140% over the same period of last year respectively. The number of transactions increased by more than 12 times over the same period of last year contributed mainly to the rapid growth of mobile QR code payment transactions.

Payment security and compliance have always been a highly concerned issue for the industry. As the regulatory authorities strengthen the industry supervision and the financial payment market is gradually in line with international market, VBill, a subsidiary of the Group primarily engaged in payment processing business further strengthened the investment in risk control. The “Tianjing” risk control system based on expert rules was officially put into use during the Reporting Period, and a comprehensive scan was conducted for all merchants, which optimized the structure of merchants, paid more attention to their quality and reduced their risks. As of the end of June 2019, the accumulated number of active domestic merchants exceeded 3,900,000.

Exploring Value in Data to More Precisely Match Customer Needs
VBill has been focusing on offline-based scenarios for the past years, accumulating experience and deepening the value of its offline payment data. The fintech online micro-leading business further optimized the risk control model and cautiously controlled the lending scale for the micro-lending business. In the future, the Group will continue to explore more values in fintech by means of partnering with more enterprises, merchants, financial institutions, third-party payment platforms, and consumers to build a closer, more mutually beneficial business ecosystem.

During the Reporting Period, the Group came to an agreement with a private fund investor in relation to the conditional subscription of new VBill shares, and it is expected to bring strategic benefit to the Group. The subscription will provide funding for further developing the Group’s business network, thereby contributing to business expansion, and reinforcing comprehensive strength and growth potential, as well as creating more future funding opportunities.

Facing fierce market competition and a complex external environment, the Group also focused on its other fundamental business segments. During the Reporting Period, the performance of the Group’s information security chips and solutions segment remained similar to the same period last year. Research and development projects are progressing smoothly and cost reduction initiatives of various products are rolling out in an orderly manner. For the platform operation solutions segment, the Group continued to provide operational support services for three of China Mobile’s bases, and expected to follow the vigorously development in integrated payment, featured e-commerce, and fintech business of China Mobile, and awaited to gain more business opportunities. Meanwhile, the Group will spend utmost effort to expand outside communications industry. For its financial solutions segment, while ensuring the stability of traditional business with domestic banks and their overseas branches, the Group also increased the investment in new product research and development, particularly worth mentioning that winning the relevant bid for the business system construction project of Guizhou Bank during the Reporting Period. Besides, the overseas business layout has been proceeding positively.

The Group commented, “With the continuous expansion and improvement of digital payment technology, China’s third-party payment industry has entered a critical period of transformation. Facing a new round of industry regulations and changes, the advantages of payment institutions with their own unique strengths have become much more significant. At the same time, the Group also believes that compliance development remains critical for the success of the entire industry. As such, the Group will continue to focus on strengthening its safety and compliance systems and precision risk control, while investing in new technologies to help create a more convenient and inclusive fintech ecology, and greater value for shareholders, customers, and the society.”

*For identification purpose only