Friday, March 5, 2021
Martin Hennecke
HKEx Stock Code : 00423 
Corporate Profile
Principally engaged in (1) the printing and publication of newspapers, magazines and books and generates advertising income and circulation income from these publications; (2) the provision of electronic financial and property market information and related solutions and generates service income from provision of information subscription services, solutions and other related maintenance services; (3) the provision of recruitment advertising and training services; and (4) the operation of portals in food, travel, health and other lifestyle focus.

Business Review - For the year ended March 31, 2013

Local media has gone through a bustle and hustle year 2012. The industry was undergoing transformation from traditional media to new digital versions. The industry was also thronged with news of acquisition, disposition and new investment. Our Group, with strong financial position and elite personnel stood rigid within the storm. The Group reacted proactively to the media transformation by increasing the investments in Sky Post, the Group's free Chinese daily launched on 27 July 2011, and internet-based businesses, including the portals of,, and the Group's other lifestyle portals. The investments, in the near term will affect the Group's income performance, are for the best interest of our shareholders in the medium to longer term.

The Group's revenue for the financial year ended 31 March 2013 increased to HK$1,032.8 million, an increase of HK$26.8 million or 3%. Profit attributable to owners however, decreased by 19% from HK$76.1 million to HK$62.0 million.

Advertising income for the year ended 31 March 2013 was HK$562.3 million, maintained at similar level as compared to the year ended 31 March 2012. Advertising income from paid publications decreased in line with the general advertising market trend. However, contribution from Sky Post, free daily of the Group, was able to offset the drop from paid publications. This demonstrated that the Group's entry to the free daily market was necessary to broaden the advertising income base of the Group. The Group also believes and is confident that the contribution from Sky Post will become increasingly significant in the coming financial years in view of the encouraging progress of Sky Post.

Circulation income decreased by 10% from HK$135.7 million for the year ended 31 March 2012 to HK$122.0 million for the financial year under review. Readers shifting to web versions and the emergence of free publications are drawing away the eyeballs of paid publications readers. The Group will continue to publish paid publications with distinct quality content to attract readers.

Service income for the year ended 31 March 2013 increased from HK$295.2 million to HK$336.0 million when compared with the preceding financial year. Revenue generated from financial news agency, information and solutions business remained significant. The magazines and books printing company acquired in the second half of the last financial year also contributed to the growth of the Group's service income.

Business Outlook - For the year ended March 31, 2013

Sky Post, made significant progress after its launch in July 2011. It had established a recognised and well received positioning of being a positive thinking and middle class free daily in the market within a short period of time. The favourable responses from readers and advertisers are also encouraging. The launch of Sky Post further extends the Group's readers, advertisers and income base which were not previously available to our other niche publications. We are confident and determined to make Sky Post a success and believe that it will become a significant contributor to the growth of the Group in the medium and longer term.

The evolution of the media industry continued. The enormous popularity of internet, pervasive penetration of smart mobile devices, wireless network upgrade and the ongoing development of digital technologies drive the market attention from traditional media to digital platforms. This new paradigm shift presents both challenges and opportunities to the Group. We shall continue to invest in the digital and internet-based businesses across all our business segments and focus on harnessing new technologies and user experiences to deliver timely, personalized, interactive, quality and value-added services to the targeted customers.

The Investments in Sky Post and the digital and internet-based businesses would have short term pressure on the cost and result of the Group. We are confident that these new initiatives will drive the sustainable growth of the Group in the medium term.

The year ahead is still challenging. While we have seen some improvements in the US economy, the global economy remains dull as negative effects of the eurozone economies continue to weigh on the pace of global recovery. With benefit from the reasonable growth momentum of the Mainland, Hong Kong is poised to achieve modest economic growth in the coming year. We will remain focused on preserving and reinforcing our established strengths and deepen our penetration into segments that offer growth and enlarging our customer and income base. The Group continues to maintain a strong financial position and is well positioned to ride through any storm that may come, and take good advantage of opportunities that may arise.

Source: HK Economic Times (00423) Annual Results Announcement
Chairman FUNG Siu Por, Lawrence Issued Capital (shares) 432M
Par Value HKD 0.1 Market Capitalisation (HKD) 660M
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