Hung Hing Printing First-Half Revenue Reaches Approximately HK$1.501 Billion, Up 36.62%

Hung Hing Printing announced that for the six months ended June 30, 2021, revenue was approximately HK$1.501 billion, up 36.62% year on year. Profit attributable to shareholders was approximately HK$36.417 million, compared with a profit of HK$4.858 million in the same period last year, an increase of more than six times. Earnings per share were 4 HK cents; dividend per share was 4 HK cents. This interim dividend reflects the group's solid business foundation, strong financial position and cash flow, and its commitment, where performance permits, to delivering generous dividend returns to shareholders in accordance with its dividend policy.

The main reasons for the significant increase in profit include strong growth in the export business, with revenue already exceeding pre-COVID-19 levels, favorable exchange rate settlement and forward exchange rate hedging performance, and, due to special market conditions, outstanding performance by the paper trading business segment, which also provided strong support for the group's paper procurement.

The group's largest business segment, book and packaging printing, benefited from improved consumer confidence in export markets, with sales rising 34% to HK$877 million. Despite increases in a number of costs of sales and the one-off impact of a bad debt write-off in 2020, the segment overcame these difficulties and contributed a profit of HK$28 million to the group, compared with a loss of HK$29 million in the first half of last year. The plants in Vietnam and Heshan, China continued to expand their operations, hiring more staff and adding new capacity, helping other plants cope with the surge in orders and providing customers with a range of value-added service solutions.

The consumer product packaging business seized the opportunity of the relatively stable economy in mainland China, with export sales growing 25% to HK$251 million. During the period, the segment recovered more than HK$4 million in debt and compensation from a bankrupt customer and received a government grant encouraging investment in advanced technology. These contributions helped the consumer product packaging business offset the impact of rising paper prices to a certain extent, reducing the segment's loss from HK$5 million in the same period last year to HK$500,000. The Wuxi plant provided strong support for the development of this business segment; the plant relocation plan is progressing well, all key procedures related to land purchase and planning have been completed, and construction of the new high-tech facility will be pushed forward at full speed.

In addition, the corrugated carton business benefited from improved demand in the domestic market and, driven by rising paper prices, saw growth in both turnover and profit. During the period, export sales increased 25% to HK$125 million, and profit rose from HK$700,000 to HK$4.9 million. The group's integration with Guangdong United Packaging Co., Ltd. proceeded smoothly, bringing synergies to this business segment.

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-378090.html