Tsit Wing Recorded Revenue of HK$785 Million for FY2019

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Profit Attributable to Owners of the Parent From Continuing Operations for the Year Increased by 22.6%

 


Strengthen online and offline sales in beverage solutions; Expand frozen processed food business


Highlights

  • Revenue reached HK$785 million
  • Gross profit amounted to HK$309.8 million
  • Profit attributable to owners of the parent from continuing operations for
    the year reached HK$89.8 million,
    representing an increase of 22.6% as compared with
    last year
  • Adjusted
    profit attributable to owners of the parent* increased by 6.7% to HK$93.3 million
  • Strengthen
    beverage solutions by
    extending in Shanghai and three cities in the Greater Bay Area and expanding online channel
  • Intend to
    offer meat processing services and increase the varieties of processed food
    products to caterers and customers

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Financial
Highlights

 

Year ended 31 December

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HK$’000

2019

2018

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Change

Revenue

784,998

831,072

-5.5%

  Beverage Solutions

765,612

808,734

-5.3%

  Food Products

19,386

22,338

-13.2%

Gross profit

309,832

314,178

-1.4%

Profit before tax

111,279

92,648

+20.1%

Profit attributable to owners of the parent
from continuing operations for the year

89,813

73,240

+22.6%

Adjusted profit attributable to owners of the parent*

93,269

87,436

+6.7%

Basic earnings per shares (HK cents)

9.89

10.71

-7.7%

 

*Excluding a number of nonrecurring
income, costs and charges and certain of other non-cash charges

 

HONG KONG, CHINA – Media OutReach – 5
March 2020 – Tsit Wing International
Holdings Limited
(“Tsit Wing”, together with its subsidiaries, the “Group”;
stock code: 2119), an integrated B2B coffee and black tea solutions provider,
announced its annual result. For the year ended 31 December 2019 (the
“Reporting Period”), Tsit Wing recorded a total revenue from continuing
operations of HK$785.0 million (2018: HK$831.1 million), which was primarily
due to the decrease in revenue derived from beverage solutions business, and to
a lesser extent, the decrease in revenue derived from the food products business.

 

If a number of nonrecurring income, costs and charges
and certain of other non-cash charges was excluded, adjusted profit
attributable to owners of the parent reached HK$93.3 million (2018: HK$87.4 million), representing an increase of 6.7%.

 

The Board has proposed the payment of a final dividend of HK3.33
cents per ordinary share in respect of the year ended 31 December 2019 (2018:
HK5.78 cents per ordinary share).

 

Business Review

The Group is a leading integrated B2B
coffee and black tea solutions provider in Hong Kong, Macau and Mainland China
providing one-stop coffee and tea solutions to commercial customers. The Group
will continue to consolidate its core business in beverage solutions, as well
as to deepen its market penetration in food market. The Group has also
diversified its sales lead by starting its online sales platform on Tmall.com
in December 2019 to reach out to more retail customers and widen its customers
base.

 

Beverage solutions

During the
Reporting Period, revenue from the beverage solutions segment recorded HK$765.6
million (2018: HK$808.7 million). The decrease was primarily due to the
decrease in revenue derived from instant beverage mix products in Mainland
China. Gross profit decreased by 1% to HK$305 million (2018: 308.1 million).
Gross profit margin increased to 39.8% (2018: 38.1%), primarily because of the
relatively higher gross profit margin generated from coffee and tea products.

Read Also:  Dr. AKP Mochtan becomes 12th APO Secretary-General

 

Food products

During the
Reporting Period, because of the decrease in revenue derived from Mainland
China, the
revenue from the food products segment recorded HK$19.4 million (2018: HK$22.3
million), with gross profit of HK$4.9 million (2018: HK$6.0 million) and gross
profit margin of 25.2% (2018: 27.1%), due to the change of product mix.

 

Revenue by geographic locations

During the Reporting Period, revenue generated in Hong Kong maintained at HK$499.0
million, which was a result of increase in sales of coffee, tea and milk
products, offset by the decrease in sales of groceries items. Revenue generated
in Mainland China recorded HK$267.0 million (2018: HK$314.0 million). Revenue
generated in Macau
and other countries, including Canada, Taiwan, Australia, Malaysia and
Philippines, increased by 5.2% to HK$19.0 million which primarily a result of
growth in customers’ demand in Macau.

 

Business Prospect

As a leading integrated B2B coffee and black tea
solutions provider in Hong Kong, Macau and Mainland China, the Group will endeavour
to consolidate its core business in beverage solutions. Also, the Group will
continue to strengthen its market penetration of the food products.

 

For the beverage solutions business, the Group will
expand its customer base by extending its presence in Shanghai and three cities
in the Greater Bay Area, namely Shenzhen, Dongguan and Guangzhou by exploring
business opportunities and strategic partnership with more caterers, restaurant
groups and beverage chains etc. in Mainland China. Meanwhile, the Group will
also further extend the product-mix by exploring and sourcing high-quality food
and beverage products that carry great potential from other countries to ensure
the Group is on the cutting edge of the food and beverage solutions provider
industry.

 

Seeing the upcoming trend of online consumption, the
Group will further expand its sales through online channel. Other than the
online platform that sells the products of the Group, the Group intends to
invite its strategic partners and other international brands to trade and sell
their food and beverage products on another online platform that will be
launched and managed by the Group in the near future.

 

For the food product business, the Group aims to
branch out its frozen processed food business by offering meat processing
services and increasing the varieties of processed food products to caterers
and customers. Building on the Group’s experience in providing frozen meat and
frozen processed food, the long-standing partnership with suppliers and a
well-established network of clients and distributors. The Group believes that
the tailor-made frozen and chilled food business can earn recognition from both
corporate and individual customers, thereby enhancing the Group’s share in the food and
beverage market.

About Tsit Wing International Holdings Limited

Tsit Wing is
a leading integrated B2B food and beverage solutions provider in Hong Kong,
Macau and the PRC with 87-year heritage. According to research, coffee sold by
the Group translates into almost 337.7 million cups of coffee and 403.2 million
cups of milk tea per year. Tsit Wing commenced its frozen meat business in Hong
Kong and the PRC since 2013 and has been dedicated to developing an integrated
food and beverage solutions platform for its customers.

Tsit Wing Recorded Revenue of HK$785 Million for FY2019 - Brand Spur

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Tsit Wing Recorded Revenue of HK$785 Million for FY2019 - Brand SpurTsit Wing Recorded Revenue of HK$785 Million for FY2019 - Brand Spur

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Tsit Wing Recorded Revenue of HK$785 Million for FY2019 - Brand SpurTsit Wing Recorded Revenue of HK$785 Million for FY2019 - Brand Spur

Latest News

Cityneon Raises S$235 Million; Well Positioned for Next Growth Chapter

  • The global experience entertainment company gets a S$235 million shot in the arm, closes its private fund raising in April 2021
  • Investors both new and existing include Singapore's Pavilion Capital, Seatown Holdings International and EDBI, Qatar's Doha Venture Capital and financial institutions and family offices in Singapore and China
  • These now join other existing Cityneon shareholders CITIC Capital, veteran entrepreneur and investor Mr. Johnson Ko, and Executive Chairman & Group CEO Mr. Ron Tan
  • Funding comes just after the Group acquired multi-year licensing rights for James Cameron's AVATAR touring exhibition, and two original artefacts IP on the ancient civilization Machu Picchu from Peru and Ramses the Great (Ramses II) from Egypt
  • Investments position the Group well to bring experiences across the globe, targeting to launch six experiences in China and five in the U.S. by the end of 2021, with more in other parts of the world

SINGAPORE - Media OutReach - 21 April 2021 - Cityneon Holdings ("Cityneon", the "Company"/collectively with its subsidiaries, the "Group") raised S$235 million in the most recent round of private funding. The latest round of funding adds seasoned investors to Cityneon's already strong stable of shareholders.

This funding round was led by Singapore's Pavilion Capital, Seatown Holdings International, EDBI, and Cityneon's Executive Chairman & Group CEO, Mr. Ron Tan. EDBI and Pavilion Capital are existing shareholders of Cityneon whilst new investors include Seatown Holdings International, Qatar's Doha Venture Capital, which will now own approximately 4 per cent of the Group, and other financial institutions and family offices in Singapore and China.

These now join other existing Cityneon shareholders CITIC Capital, veteran entrepreneur and investor Mr. Johnson Ko, and Executive Chairman & Group CEO Mr. Ron Tan to form a new and strong shareholder base for the Group. Mr. Johnson Ko and Mr. Ron Tan remain as the largest shareholders of the company via their combined entity, West Knighton Limited.

The Group is now well positioned for its next growth chapter and will use the proceeds for capital expenditure that includes building more of its various intellectual property (IP) exhibition sets, totaling 24 travelling and four semi-permanent sets under the Studio IP partnerships and three travelling sets under the original artefact IP partnerships by the end of 2022.

Already, the Group just signed its fifth IP rights with Avatar from 20th Century Studios last year. Amidst the anticipation from Avatar fans worldwide, Cityneon will debut a multi-sensory Avatar exhibition in Chengdu, China in May 2021, ahead of the Avatar movie sequel which is slated for release in 2022. Avatar is the world's top grossing film of all time at over US$2.8 billion, and adding millions more after its successful re-release in China in March 2021. Avatar's director James Cameron has announced that he will be producing four sequels with 20th Century Studios, with the first sequel slated for release next year. Disney acquired 20th Century Studios for US$71 billion in 2019.

The Company also recently entered the original artefacts IPs space and will stage international exhibitions of the treasures of the ancient civilization Machu Picchu from Peru in Boca Raton, Florida and Pharaoh Ramses II from Egypt in Houston, Texas. These two experiences will start welcoming visitors in October and November 2021, respectively.

Other IP rights that the Group holds include partnerships with Universal Studios for Jurassic World: The Exhibition, Marvel for Avengers S.T.A.T.I.O.N., Lionsgate for The Hunger Games: The Exhibition and Hasbro for Transformers Autobot Alliance. All in, Cityneon holds the IP rights for five of the top 10 worldwide box office hits and two artefacts IP from Peru and Egypt. The Group expects to have six sets of its various IP rights travelling across China, and five travelling and permanent sets in the United States, with a few more in other parts of the globe.

The Group will also be reopening experiences that were temporarily closed in 2020, aiming to provide visitors with a safe entertainment option. These include the Marvel Avengers S.T.A.T.I.O.N. in Toronto, Canada that will be re-opening in May 2021; and the Marvel Avengers S.T.A.T.I.O.N. exhibition in Lotte Mall in Seoul, Korea in April 2021; the same exhibition space which previously housed Jurassic World: The Exhibition, another IP experience exhibition by the Group in 2019. In the past month, the Group also witnessed record visitor numbers at their semi-permanent installations in Las Vegas, USA, signaling a strong comeback and demand for their immersive experiences, as they step into the 6th year of operations there.

While there are exciting plans lined up, the Group is not resting on its laurels. More Hollywood IPs and artefact IPs can be expected, and there will be further announcements on new IP verticals in entertainment experiences that the Group is looking to enter.

Mr. Ron Tan, Executive Chairman & Group CEO of Cityneon, said: "It is exciting that the Company is going through such strategic expansion as one of the largest providers of exhibition entertainment experiences globally. The S$235 million funding round sets a solid foundation for us to invest in developing more of our entertainment experiences, to stage even more exhibitions of the five box office hits and two artefact IPs that we hold the rights to all over the world. I'm thankful that our strong investors base, now from Singapore, Hong Kong, China and the Middle East, have trust in our vision, and believe alongside us that this space of big ideas and big experiences will only grow."

By the end of this year, Cityneon will arguably be the largest provider of exhibition entertainment experiences internationally; with global footprints in more than 50 cities and welcoming 10 million unique visitors across the world by 2022.

Cityneon Holdings

With its global reach and international partnerships, Cityneon has the capability to serve its clients anywhere in the world. Cityneon was listed on the Mainboard of the Singapore Stock Exchange since 2005, and was privatized on February 2019 by West Knighton Limited, a company wholly owned by Cityneon's Executive Chairman and Group CEO, Ron Tan, together with Hong Kong veteran entrepreneur and investor, Johnson Ko Chun Shun. Johnson is a capital markets veteran and has held controlling interests and directorships in many listed companies. In May 2019, Cityneon welcomed CITIC Capital as a new shareholder, who holds approximately 10% shares in Cityneon. CITIC Capital is part of CITIC Group, one of China's largest conglomerates, and has over US$25b of assets under its management across 100 funds and investment products globally. Other institutional shareholders of the Group include EDBI - a Singapore government-linked global investor, and Pavilion Capital - a Singapore-based investment institution which focuses on private equity investments, that made strategic investments in August and October 2019 respectively, to support the Group's further expansion globally. For more information, please visit www.cityneongroup.com.


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