Hung Hing Printing H1 Revenue Rises 36.62% to HK$1.501bn; Profit Up More Than Sixfold

Hung Hing Printing has released its interim results for the six months ended 30 June 2021. Revenue came in at around HK$1.501 billion, representing 36.62% year-on-year growth. Profit attributable to shareholders was about HK$36.417 million, compared with HK$4.858 million in the prior-year period, an increase of more than six times. Earnings per share stood at 4 HK cents, and the interim dividend was also 4 HK cents per share. According to the company, the interim dividend underscores its solid business base, healthy financial position and cash flow, and its intention to follow its dividend policy by delivering attractive shareholder returns whenever performance allows.

The profit surge was mainly driven by strong export business growth, with revenue already surpassing pre-COVID-19 levels; favorable exchange-rate settlement and forward exchange-rate hedging results; and, amid unusual market conditions, an exceptionally strong performance by the paper trading segment, which also gave solid backing to the group's paper procurement.

The group's largest segment, book and packaging printing, gained from recovering consumer confidence in export markets, with sales climbing 34% to HK$877 million. Although several cost of sales items rose and the segment faced a one-off hit from a bad-debt write-off in 2020, it overcame these challenges to contribute HK$28 million in profit, compared with a HK$29 million loss in the first half of last year. Its plants in Vietnam and Heshan, China continued to expand operations by hiring more staff and adding new capacity, helping other facilities handle a surge in orders and offering customers a range of value-added service solutions.

The consumer product packaging business capitalized on relatively stable economic conditions in mainland China, lifting export sales by 25% to HK$251 million. During the period, it recovered more than HK$4 million in debt and compensation from a bankrupt customer and received a government grant designed to encourage investment in advanced technology. These gains helped offset, to some extent, the impact of higher paper prices, narrowing 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 this business; its relocation plan is advancing well, all key procedures related to land acquisition and planning have been completed, and construction of the new high-tech facility will proceed at full speed.

Meanwhile, the corrugated carton business saw both turnover and profit rise, supported by stronger domestic demand and higher paper prices. Export sales increased 25% to HK$125 million, while profit grew from HK$700,000 to HK$4.9 million. The group's integration with Guangdong United Packaging Co., Ltd. has run smoothly, generating synergies for this segment.

——Source: China Packaging Network (pack.cn); original article: http://news.pack.cn/show-378090.html