AMVIG : Announces 2016 Interim Results

AMVIG Announces 2016 Interim Results

Financial Highlights

For the half year ended 30 June	2016 Interim (Unaudited) HK$ million	2015 Interim (Unaudited) HK$ million	Changes
Turnover	1,171	1,675	‐30%
Gross profit	373	541	‐31%
Profit attributable to owners of the Company	126	239	‐47%
Underlying profit attributable to owners Company*	of	the	143	237	‐40%
Earnings per share (HK cents)	13.5	25.9	‐48%

* Excluding exchange difference and on a constant currency basis (@1H2015 ex.rate)

(25 August 2016 - HONG KONG) AMVIG Holdings Limited (the "Company" or "AMVIG", stock code: 2300) and its subsidiaries (collectively known as the "Group") announced today its unaudited consolidated results for the half year ended 30 June 2016 (the "Reporting Period").

During the Reporting Period, the Group's turnover reduced by 30% (27% on a constant currency basis) from HK$1,675 million to HK$1,171 million. Overall gross profit rate was 31.8%, which decreased slightly by 0.5 percentage point when compared to the same period of last year. Such decrease was mainly due to a rise in unit fixed costs resulted from the substantial drop in sales volume. The Group achieved a profit attributable to owners of the Company of HK$126 million during the Reporting Period, representing a decrease of 47% as compared to HK$239 million in the first half of 2015. Excluding the exchange differences, and on a constant currency basis, the Group's underlying net profit decreased by 40% to HK$143 million from HK$237 million.

The Board (the "Board") of directors (the "Directors') of AMVIG declared an interim dividend of HK5.4 cents per share and a special dividend of HK2.7 cents per share respectively for the first half of 2016.

Commenting the Group's interim results, Mr. Billy Chan, Non‐Executive Chairman of AMVIG, said, "It was a difficult period for the China tobacco industry in the first half of 2016. During the Reporting Period, sales volume of the tobacco market has dropped by 6.5% to 24.4 million master cases. Overall sales value and profits and taxes had dropped by 4.1% and 6.7%, respectively. The drop in sales and profits and taxes in the tobacco industry is unprecedented in the past couple of decades. This was mainly due to the over‐accumulation of inventory at the end

The tobacco customers had to scale back production in the first half of 2016 to ease down the level of inventories at the retailers and as a result, impacted on the tobacco packaging industry. Additional to this, the tobacco customers are expected to change the designs of the health warning labels during the third quarter of the year. The changes of the new health warning labels had not been finalized in the first half of 2016, and thus further resulting in the delay in orders from tobacco customers. These couple of factors caused a reduction in turnover for the Group."

For the prospects of the Company, Mr. Chan said, "The management considers the long term fundamentals of the tobacco market in China will remain stable. The demand from customers will still be there. Therefore, the management considers the Group's performance in the second half will likely be improved. As mentioned in the previous reports, the Group will continue to invest in research and development to capture the opportunities of new products and markets. Internally, the Group will continue its efforts in further cost control and productivity improvement. The management will exercise financial discipline so as to mitigate the impacts of the current adverse market conditions as much as possible."

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AMVIG Holdings Limited (2300.HK)

Established in 1998, AMVIG Holdings Limited, formerly known as Vision Grande Group Holdings Limited, is principally engaged in the printing of high quality cigarette packages and the manufacturing of transfer paper and laser film, which are the major raw materials for cigarette packages. The Group is the leading cigarette packaging printing specialist in the People's Republic of China in terms of turnover, profitability, output and production capacity.

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AMVIG Holdings Limited

Comet Siu

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