AMVIG : Announces 2018 Annual Results

【 For immediate release 】

15 March 2019

AMVIG Announces 2018 Final Results

Financial Highlights

For the year ended 31 December	2018 HK$million	2017 HK$million	Changes
Turnover	2,503	2,448	+2%
Profit attributable to owners of the Company 267 346 -23%
Underlying profit attributable to owners of the Company*	325	279	+16%
Earnings per share (HK cents)	28.7	37.2	-23%

* Excluding exchange difference and on a constant currency basis (@ 2017 ex. Rate)

(15 March 2019, HONG KONG) AMVIG Holdings Limited (the "Company" or "AMVIG", stock code: 2300) and its subsidiaries (collectively known as the "Group") announced today its audited consolidated results for the year ended 31 December 2018 (the "Reporting Period").

During the Reporting Period, the Group's turnover increased 2% to HK$2,503 million in 2018 from HK$2,448 million in 2017. The overall gross profit margin was 29.6%, which was close to that in 2017. The Group achieved a profit attributable to owners of the Company of HK$267 million in 2018, representing a decrease of 23% from HK$346 million in 2017. Excluding the exchange differences, and on a constant currency basis, the underlying profit attributable to owners of the Company increased by 16% to HK$325 million from HK$279 million. Earnings per share was HK28.7 cents, representing a decrease of 23%, as compared to 2017.

The Board of Directors of the Group recommended the payment of a final dividend of HK6.4 cents per share for 2018. Together with an interim dividend of HK8.0 cents, total dividend for the year was HK14.4 cents per share.

Commenting the Group's annual results, Mr. Billy Chan, Non-executive Chairman of AMVIG, said, "It is a relatively good year for China tobacco market in general. Tobacco sales registered growth of 4.64 %. Overall profits and taxes had increased mildly by 3.69%. The Group's turnover was stable during the year and registered a mild growth when compared to that of last year. The acquisition of Outstanding Viewpoint Limited (which is the investment holding company of Yunnan Qiaotong Package Printing Co., Ltd. ("Qiaotong Plant") and Anhui Qiaofeng Package Printing Co., Ltd. ("Qiaofeng Plant")) had no impact on turnover, since the results of the operating associates were equity-accounted for and included in share of profit of associates.

The Group's operating expenses were also maintained at a lower level after last year's substantial costs reduction.

However, the depreciation of Renminbi against Hong Kong dollars during the year had resulted in an exchange loss of HK$67 million (2017: exchange gain of HK$66.8 million) was incurred on the Group's Hong Kong dollar borrowings which led to a reduction of 23% in profit attributable to owners of the Company in 2018 when compared to

2017. However, excluding the exchange differences and on a constant currency basis, the Group's underlying net profit increased by 16% to HK$325 million from HK$279 million."

Looking forward, Mr. Chan said, "The State Tobacco Monopoly Administration had changed to new leadership in 2018, who is charged with the responsibilities to revitalize cigarette brands in China. In addition, it is understood that the "Three-large" strategy, "Large Markets, Large Enterprises and Large Brands" will be re-introduced, which means there will be further consolidation of cigarette brands. Such strategy will be beneficial to sizeable suppliers like us with solid brands in our product portfolio which will continue to grow stably. The Group will continue its cost cutting initiatives and investments in research and development, which will help our customers to develop new products and new markets. The integration of the newly acquired associates, Qiaotong Plant and Qiaofeng Plant will continue.

Management is hopeful that the profit of the Group will further improve through the abovementioned initiatives."

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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 Company 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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