AMVIG : Announces 2019 Interim Results

【 For immediate release 】

29 August 2019

AMVIG Announces 2019 Interim Results

Financial Highlights

	For the half year ended 30 June		2019 Interim		2018 Interim
			(Unaudited)		(Unaudited)	Changes
			HK$ million		HK$ million
	Turnover		1,181		1,216	-3%
	Gross profit	366	366	-
	Profit attributable to owners of the Company		188		164	+15%
	Underlying profit attributable to owners of the	197	186	+6%
	Company*
	Earnings per share (HK cents)		20.2		17.7	+14%

* Excluding exchange differences and on a constant currency basis (@1H2018 average ex.rate)

(29 August 2019 - 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 2019 (the "Reporting Period").

During the Reporting Period, the Group's turnover showed a slight decrease of 3% to HK$1,181 million. For the first half of 2019, overall gross profit margin was 31%, which improved when compared to that of the corresponding period in 2018. The Group achieved a profit attributable to owners of the Company of HK$188 million during the Reporting Period, representing an increase of 15% as compared to HK$164 million in the first half of 2018. Excluding the exchange differences, and on a constant currency basis, the Group's underlying profit attributable to owners of the Company increased by 6% to HK$197 million from HK$186 million.

The Board (the "Board") of directors (the "Directors') of AMVIG declared an interim dividend of HK8.1 cents per share and special dividend of HK4 cents per share for the first half of 2019.

Commenting the Group's interim results, Mr. Billy Chan, Non-ExecutiveChairman of AMVIG, said, "Sales of cigarettes in China continued to improve in the first half of 2019. Cigarettes sold in volume and value increased by 1% and 6%, respectively. This shows the product mix of cigarettes sold continued to improve. It is worth noting that this was achieved through the introduction of new variants, which usually commanded higher selling prices, compensated the reduction in sales volume of existing variants. Similar to last year, the growth in cigarette sales was broad based as most of the top brands registered sales growth.

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For the Reporting Period, the Group's turnover showed a slight decrease of 3% which was mainly due to the impact of currency depreciation of Renminbi against Hong Kong dollars. On a constant currency basis, turnover increased by 4% when compared to the corresponding period in 2018. The Group's gross profit margin and operating expenses were also maintained at a stable level as compared to last year. Excluding the exchange differences incurred on the Group's Hong Kong dollar denominated borrowings, and on a constant currency basis, the Group's underlying profit improved by 6% when compared to the first half of last year."

For the prospects of the Company, Mr. Chan said, "The Chinese tobacco market continues its momentum brought forward from last year and registered satisfactory growth in the first half of 2019. It is expected that such growth will continue in the second half of the year. State Tobacco Monopoly Administration has been adopting the "Three Larges' Strategy", which promote large market, large enterprises and large brands for the Chinese tobacco industry since the assumption of office by its current Director General. We expect there to be more brand consolidation going forward which will be beneficial to sizeable tobacco packaging companies like ours. With a more favourable market environment, the management is cautiously optimistic about the Group's prospects."

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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

Tel: [phone]

Fax: [phone]

Email: [e-mail]

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