AMVIG : Announces 2018 Interim Results

【 For immediate release 】

27 August 2018

AMVIG Announces 2018 Interim Results

Financial Highlights

For the half year ended 30 June 2018 Interim (Unaudited) HK$ million		2017 Interim (Unaudited)Changes HK$ million
Turnover 1,216		1,094 +11%
Gross profit 366 328 +11%
Profit attributable to owners of the Company 164 176 ‐7%
Underlying profit attributable to owners of the Company* 171 136 +26%
Earnings per share (HK cents)	17.7	18.9	‐6.5%

* Excluding exchange difference and on a constant currency basis (@1H2017 ex.rate)

(27 August 2018 - 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 2018 (the "Reporting Period").

During the Reporting Period, the Group's turnover grew by 11% from HK$1,094 million to HK$1,216 million. For the first half of 2018, overall gross profit margin was 30.1%, which was similar to that of the same period last year. The Group achieved a profit attributable to owners of the Company of HK$164.1 million during the Reporting Period, representing a decrease of 6.5% as compared to HK$175.6 million in the first half of 2017. Excluding the exchange differences, and on a constant currency basis, the Group's underlying net profit increased by 25.4% to HK$171.1 million from HK$136.5 million.

The Board (the "Board") of directors (the "Directors') of AMVIG declared an interim dividend of HK8.0 cents per share for the first half of 2018.

Commenting the Group's interim results, Mr. Billy Chan, Non‐Executive Chairman of AMVIG, said, "The China tobacco industry continued to improve in the first half of 2018. All performance metrics, which include turnover, sales and production volume growth, as well as profits and tax, registered single digit growth. We have also observed a slight recovery in the sales of high‐end cigarettes, which were particularly affected by the austerity measures of the Government. It has been a good half‐year in general for the China tobacco industry.

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For the Reporting Period, the Group's turnover reversed its declining trend in the past few years and registered a growth of 11%. The Group's operating expenses were also maintained at a lower level after last year's substantial costs reduction. Together with the increased turnover and gross profit, as well as the additional profit contribution from Outstanding Viewpoint Limited, underlying profit improved by 36.3% when compared to the first half of last year. However, since Renminbi devalued against Hong Kong Dollars over the Reporting Period, exchange loss of HK$21.8 million (same period in 2017: Exchange gain of HK$39.1 million) was incurred on the Group's Hong Kong dollar borrowings which led to a reduction of 6.5% in profit attributable to owners of the Company in the first half of 2018 when compared to the same period of last year."

For the prospects of the Company, Mr. Chan said, "After years of uncertainty and turbulence, we observed that the China tobacco market had shown signs of recovery as all performance metrics registered growth in the first half of 2018 when compared to the same period of last year. With the new leadership of State Tobacco Monopoly Administration in place recently, we are cautiously optimistic about the prospects as the market is poised to continue the momentum in the second half of the year."

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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.

For further information, please contact:

AMVIG Holdings Limited

Comet Siu

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