2002 INTERIM RESULTS
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Highlights
HK$
(million)
•
•
•
•
•
Turnover
Net Profit
Gross Profit
EBITDA
Interim dividend
YoY Growth
(%)
1,720
485
913
720
HK15 cents
+6.4
-29.7 /-17.8 #
+10.3
-10.4
+7.1
# After discounting exceptional gain from Shanghai Jahwa spin-off listing in 2001
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Reasons for profit decline
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•
•
•
No exceptional gain in 1H2002
Reduction of interest income
Slippage of Huizhong autoparts business
Share of attributable loss of SMIC due to
depreciation and interest expenses
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Financial Position
HK$ (billion)
•
•
•
•
•
Cash on hand
Total borrowing
Net cash
Gearing ratio
Interest cover
3.26
1.64
1.62
10.9 %
17 times
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SECTOR REVIEW
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Infrastructure/Logistics
Infrastructure facilities
• Contributed HK$354M
• Stable cash income from main arteries of
Shanghai’s expressway network
• Waigaoqiao Container Terminal Phase I
received government approval; finalizing
details regarding operation, capital
contribution procedures and work schedules
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Infrastructure/Logistics
Modern Logistics
• Acquired control stakes in EAS international
with 1100-city distributions network in China
• Acquired controlling interests in CTII
Worldwide Ltd.in Hong Kong (re-named EAS
Worldwide Logistics)
• Established management operation platform
covering Beijing, Shanghai and Hong Kong
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Infrastructure/Logistics
Modern Logistics
• Shanghai Wai Lian Fa (at Waigaoqiao
Free Trade Zone)
– Actively expanding market share, secured a
80-company customer base, and
33,000-tonne warehouse delivery
• Shanghai Sinotrans (at Chemical
Industrial Zone)
– Obtained business license and started
operation in July 2002
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Infrastructure/Logistics
Modern Logistics
• Actively consolidate nationwide modern
logistics business with newly acquired
resources
• Introduce international strategic
partners to maximize exposure to fastgrowing logistics demand in China
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Information Technology
SMIC
• Production capacity exceeded 10K wafers/m,
to reach 30K wafers/m by year-end
• Received 0.18-micron CMOS process
certification; first foundry in China to produce
0.18-micron logic technology in volume
• Secured technology partners including
Toshiba, Fujitsu, Chartered
• Formed partnership with IMEC in advanced
semiconductor process technology
• Expected to achieve break-even in Q4/2002
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Information Technology
SII
• Contributed RMB21.29M net profit, up 43%
• Completed 40K cable TV subscribers upgrade, to
reach 1.6M total by year-end
• “Cableplus” broadband service secured 40K
commercial subscribers
• Shanghai Information Pipeline completed > 600
km of Shanghai government system service
network; 1H2002 sales contract totalled RMB80M
IT sector posted HK$28.5M loss due to
attributable loss of SMIC
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Medicine and Bio-technology
SIIC MedTech +
Sunway Biotech, Mergen Ltd,
Sunve Pharmaceutical
SIIC MedTech
• Contributed HK$29.3M net profit, up 5.3%*
• Hangzhou Qingchunbao :
– Qingchunbao Anti-aging Tablets sales up 70.4%,
Shen Mai, Dan Shen, Huang Qi and Herba
Houttuyniae injection medicines sales up 6.9%,
16.5%, 26.6%, 34.4% respectively
* Ex-exceptional in 2001
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Medicine and Bio-technology
SIIC MedTech
• Shanghai Jahwa:
– Liushen and Herborist products sales up 13%
and 50% respectively; Herborist specialty stores
expanding to Xian, Qingdao, Nanjing, Shenzhen,
also entered Watson’s chain stores in Hong
Kong
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Medicine and Bio-technology
Sunway Biotech:
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•
H101 anti-cancer medicine completed Phase 2
clinical trial, to commence Phase 3 in Sept; also
launched H103 pre-clinical studies in U.S. and
China simultaneously
Recorded net loss of RMB15.8M
Sunve Pharmaceutical:
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Self-developed new products received Shanghai
Municipal New Product Award; Raw materials
medicine passed FDA certification and entered
U.S. Market
Recorded net profit of RMB4.75M
Mergen:
•
Secured contract with CuraGen to provide
microarrays supply, custom array design
services; granted 2 patents for new DNA chips 14
technology
Consumer Products/Retailing
Aggressive growth in 1H2002
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Nanyang Tobacco
Wing Fat Printing
Bright Dairy
Orient Shopping Centre
Net Profit
HK$M
YoY Growth
(%)
46.78
43.00
89.25
17.01
+18.3
+16.0
+40.0
+23.0
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Consumer Products/Retailing
Nanyang Tobacco
• Maintained stable domestic sales in Hong
Kong
• Strengthened market share in Singapore
• Entered Taiwan market
• Sale of duty-free cigarettes up 103%
Wing Fat Printing
• Developed new tobacco packs for Nanyang
• Increased tobacco packs production for
European Tobacco Inc.
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Consumer Products/Retailing
Bright Dairy
• Bottled milk sales up 322%
• New production facilities in Guangzhou and
Beijing to start in 2H2002
• Listed at Shanghai Stock Exchange
on August 28, over-subscribed by 584 times
• To contribute HK$220M exceptional gain in
2H2002
Orient Shopping Centre
• Organised mega sale events in store that
helped boost sales
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Autoparts
Shanghai Huizhong
• Contributed RMB33.4M net profit, down 61%
• Substantial price-cut of domestic-made sedans led
to profit decline
• Car sale expected to resume growth in 2H2002
Shanghai Wanzhong
• Upgrading heavy truck production facilities to
consolidate market share
SIIC Transportation Electric
• Contributed RMB11.38M net profit, up 56%
• Focused on developing high value-added and
high-tech auto parts
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• Enrolled 146 national dealers
Outlook
• Continue to focus on developing infrastructure, modern
logistics, information technology and medicine and biotechnology businesses
• Continue to leverage on sustained growth of Shanghai’s
economy by investing in key development projects
• Plan to divest non-core businesses by spin-off, internal reorganization or transfer
• Poised to benefit from newly developed businesses such as
semiconductor and modern logistics
• Adopting stringent controls on operating costs and risks
• Further improve corporate management to raise corporate
governance standards
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