Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
AMVIG HOLDINGS
HKEx Stock Code : 02300 
 
Corporate Profile
The Group is principally engaged in the printing of cigarette packages and manufacturing of transfer/ laminated paper and laser film.

Business Review - For the year ended December 31, 2012

Driven by the steady grow of tobacco consumption and continuous consolidation of the tobacco industry in China, the Group continued to sustain a growth in turnover for the year ended 31 December 2012.

However, in response to the implementation of tendered price throughout the year, the Group has focused to increase its organic growth to cushion the drop in selling prices, resulted in a drop in profit attributable to owners of the Company by 24.1% when compared to last year.

In response to the aggressive implementation of tendering system of tobacco groups, the Group has rolled out profit-improvement-programs (ˇ§PIPˇ¨), which sets specific targets for management to reduce production costs, improve efficiencies and benchmark the results across the plants within the Group. In addition, capital expenditures, including three new printing presses, were incurred during the year. Such investments increased the capacity of the Group in order to cope with the growing demand and increased sales volume. It will also help to improve production efficiencies by reducing wastages. The management will continue to monitor the market trends and will not hesitate to install more state-of-the-art machines to accommodate the pace and demand for future development.

The effective management and operation of the Group's eight production plants across the PRC would not be achievable without an effective management and control system. In addition to the abovementioned PIP, operational efficiency of each production plant was enhanced through operational and capital discipline review and the setup of raw material purchase database. Going forward, leverage on the support and experience of the Company's largest shareholder, Amcor Limited, coupled with the strong customer network developed by the Group over the years, the management aims to enhance the management system to effectively and efficiently counteract the adverse market conditions, and at the same time, move the Group forward.

Business Outlook - For the year ended December 31, 2012

We observed that the tobacco companies continued to fine tuning the tendering system throughout 2012. The revised system puts more weight on the abilities and capabilities of the suppliers. As a leader in the industry, AMVIG will benefit from such changes. In addition, the Group will put more efforts in research and development, which aims at creating new designs for tobacco groups on one hand, and reduce costs and process leakages on the other. All these efforts will produce improvements in profitability.

We expect the operational environment in tobacco packaging industry to remain challenging in the coming year. Nevertheless, AMVIG will strive to maintain its leading position in the industry and commit to the highest level of product quality. We will continue to maintain our dual-growth strategy to grow our business. With a strong financial position, AMVIG is poised to further pursue business and acquisition opportunities arising from the ongoing consolidation of tobacco industry.

Management would like to take this opportunity to show our appreciation to the great support of all the shareholders and customers. We would also like to extend our gratitude to our Board members, management team and all staff for their continuous dedication, commitment and contribution to the development of the Group during this turbulent time. The Group will strive to overcome the difficulties and challenges ahead to create higher return to our shareholders.

Source: AMVIG Holdings (02300) Annual Results Announcement
Chairman Chan Chew Keak, Billy Issued Capital (shares) 923M
Par Value HKD 0.01 Market Capitalisation (HKD) 3,231M
 
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