Reinforces Leadership Position in Chinese Cigarette Packaging Printer Industry;
Market Share Climbs to 7.8% and Targeted to Reach Double-Digits by 2015
HONG KONG, Aug. 23, 2012 /PRNewswire-Asia/ -- Brilliant Circle Holdings International Limited (HKEx: 1008) ("Brilliant Circle" or "the Group"), one of the leading design, prepress and packaging printing enterprises in China which is principally engaged in the printing of cigarette packages, today announced its interim results for the six months ended 30 June 2012.
During the period under review, the Group reported a turnover of HK$692.6 million, representing a decrease of 5.6% over the same period last year. Profit attributable to the owners of the Company increased by 4.2% to HK$191.1 million. The increase was mainly due to the higher profit contribution from Bengbu Jinhuangshan Rotogravure Printing Co., Ltd. ("BB Jinhuangshan") after the Group acquired the remaining equity interests in the joint venture, as well as increase in share of profit from the associate company, Changde Godroc Rotogravure Printing Co., Ltd. Basic earnings per share was HK$0.26 (2011 1H: HK$0.27). The Group maintained a healthy and stable financial position with HK$537.6 million bank balances and cash on hand as at 30 June 2012.
Group Chairman Mr. Tsoi Tak, said, "Amid the volatile global economy and intensifying competition in the first half of the year, we continue to make significant progress in expanding our business, broadening our customer base and enhancing our production capacity through acquisitions. We also successfully implemented our diversified development strategy aimed at creating a complete printing industry chain, and further strengthened our position as one of the leading cigarette package printers in China. Leveraging our diversified business platform and good customer relationships, we will continue to expand our business to tap China's consumer package printing growth."
To drive business growth and further consolidate its market leadership, the Group is actively exploring suitable opportunities to acquire companies engaged in cigarette packaging printing. Upon acquiring the entire equity interest in BB Jinhuangshan in July last year, the Group acquired 60% equity interest in Shenzhen Yangfeng Printing & Packaging Co., Ltd. ("Yangfeng") during the period under review with a consideration of HK$720 million. Yangfeng has a strong execution track record of delivering high quality cigarette packages to several major cigarette manufacturers and cigarette brands in China. Immediately after the acquisition, the Group's production capacity increased by 12%, while market share also increased by 0.7% to 7.8%, making the Group one of the leading cigarette printing enterprises in China.
Looking ahead, the Group will continue to optimize its product portfolio by shifting its focus to mid-to-high tier premium products with higher profitability. The Group will also strategically explore value-enhancing acquisitions to further expand its customer base and relationships with all 18 CNTC subsidiaries, as well as foster a long-term relationship with new customers with high growth potential.
"With our strong business platform, diverse customer base, and market leadership, we are well positioned to benefit from industry consolidation. We will seize the growth opportunities in the industry to create greater present and long-term value for our shareholders and business partners," Mr. Tsoi Tak concluded.
