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Yeebo Announces Interim Results for FY2022/23

Revenue Growth of 19%
Profit Attributable to Owners Growth of 145%
Strategic Plans to Further Enhance Profitability on track

Financial Highlights


For the six months ended 30 September
2022

HK'000

(unaudited)
2021

HK'000

(unaudited)
Change
Revenue
734,965
618,606
+19%
Gross profit
121,538
99,004
+23%
Profit for the Period
311,808
131,796
+137%
Profit attributable to owners of the Company
297,869
121,718
+145%
Basic earnings per share (HK cents)

- Basic

- Diluted


30.6

30.4


12.4

12.4


+147%

+145%
Special dividend per share (HK cents)
20.00
-
N/A

HONG KONG SAR - Media OutReach - 28 November 2022 - Yeebo (International Holdings) Limited ("Yeebo" or the "Company", stock code: 259, which together with its subsidiaries, is referred to as the "Group") announces its unaudited interim results for the six months ended 30 September 2022 (the "Period").

Revenue for the Period increased by 19% year on year to approximately HK$735 million from HK$619 million for the same period of last year. Gross profit increased to approximately HK$122 million from HK$99 million. The strict control of the material costs, agile inventory management and improved labour efficiency contributed to an increase in gross profit. Gross profit margin improved to approximately 17% in the Period from the 16% for the same period of last year. Profit attributable to owners of the Company surged by 145% from approximately HK$122 million to HK$298 million. Basic earnings per share were HK30.6 cents. The Board of Directors has resolved not to recommend the payment of an interim dividend for the six months ended 30 September 2022. However, the Board has resolved to declare a special dividend of HK20 cents per ordinary share of the Company for the year ending 31 March 2023.

The Company repurchased 8,479,171 shares on The Stock Exchange of Hong Kong Limited from 29 June to 30 September 2022, with a total consideration of approximately HK$26 million. The Board believes that the share price has failed to reflect the value of the Company, and the share buyback can both i) return capital to investors, and ii) enhance the shareholders' value.

Commenting on the interim results of the Group, Mr. Fang Yan Tak, Douglas, Chairman of Yeebo, said, "The Group strategically focused on the higher value, wholly customized product segments, which in turn delivered robust growth. Capitalizing on our strong product development capability and extensive experience in display panel manufacturing, we are well positioned for the continued product diversification. We aspire to be one-stop solution provider on a broad portfolio of monochromic and color displays and modules over a wide range of applications. While we continue to service over 300 active customers across different industries, we are equally as driven in identifying emerging opportunities in the new and fast-growing sectors."

Although the overall demand for electronic components has been volatile, the Group registered impressive growth in both sales and earnings in the Period. Sales of LCD modules ("LCM") increased by 31% year on year to HK$516 million on the back of the strong demand from such industries as telecommunications, industrial control devices, medical and health care products and smart home appliances. The ongoing migration from pure LCD panels to LCM continued throughout the Period. Sales of the LCD decreased modestly by 14% year on year to HK$108 million in the Period. Sales of LCM - other related products such as capacitive touch panel ("CTP") and TFT-CTP modules grew by 11% year on year. The growth was attributable to the Group's successful marketing campaigns targeted at the industries of telecommunications, smart home and smart office appliances.

For Nantong Jianghai Capacitor Company Ltd ("Nantong Jianghai"), it continued to deliver remarkable results for the Period amid a challenging business environment. Revenue increased to RMB2,276 million for the Period from RMB1,835 million for the same period of last year, representing a growth of 24%.

Nantong Jianghai was able to further consolidate its market leading position of capacitors and energy storage. Robust growth was recorded across all of its major product categories: aluminium electrolytic capacitors, film capacitors, and supercapacitors. Strong demand from renewable energy, electric vehicle, and other industrial related markets have underpinned the company's growth, and has been key in driving Nantong Jianghai's increasing exposure to the higher-end markets. Nantong Jianghai's capacity expansion progress was well on track.

During the Period, the Group divested a total of 10,463,000 shares in Nantong Jianghai for a total consideration of approximately HK$248 million and realized a post-tax gain of approximately HK$148 million. Subsequent to the Period, the Group further disposed of a total of 4,100,000 shares in Nantong Jianghai for a consideration of approximately HK$106 million. After the disposals, the Group holds 245,021,000 Nantong Jianghai shares and remains the single largest shareholder of Nantong Jianghai.

For Suzhou QingYue Optoelectronics Technology Co. Ltd. ("Suzhou QingYue"), revenue increased to RMB578 million for the Period from RMB321 million for the same period of last year, representing a growth of 80%.

Suzhou QingYue is one of the global leaders in passive-matrix OLED ("PMOLED"). Leveraging its leading and proprietary technology, Suzhou QingYue has increased its investments and focus in areas of e-paper modules and micro-OLED. The e-paper modules business has developed substantially, and contributed to the growth in both sales and profit of Suzhou QingYue for the Period. While it was early for micro-OLED, it has continued to be a key theme for Suzhou QingYue. Delivering high performance "near-eye displays", potential applications include eyewear or smartglasses providing functions of augmented reality ("AR") and virtual reality ("VR").

To fund its business expansion, Suzhou QingYue has applied for its initial public offering in the Science and Technology Innovation Board of the Shanghai Stock Exchange and its registration application has recently been approved by the China Securities Regulatory Commission.

Mr. Fang Yan Tak, Douglas, Chairman of Yeebo, concluded, "In the first half of FY2022/23, the overall industrial sector has endured many challenges: the ongoing global pandemic, the Ukraine crisis, high inflation, and rising interest rate etc. While we expect the operating conditions to remain unpredictable in the near foreseeable future, our strong start to FY2022/23 demonstrated our ability to manage through volatility. Looking ahead, strategic plans are in place for further enhancing our profitability by expanding and upgrading our modules production facilities. We will continue the product evolution, extending the range of our offerings from the small modules to medium and large-sized display modules, and strengthen our presence in the fast-growing CTP market. Our customer portfolio will shift to the more profitable markets of the technologically demanding industries such as the manufacturing of automotive, internet-of-things appliances and advanced telecommunication equipment."

"We are also confident that Nantong Jianghai and Suzhou QingYue will continue to prosper – their trusted brands, with strong customer recognition, will drive superior future growth. Leveraging both their leading technologies and infrastructure, they are uniquely positioned to capture the lion share of the large and growing addressable markets."

Hashtag: #Yeebo

The issuer is solely responsible for the content of this announcement.

About Yeebo (International Holdings) Limited:

Founded in 1988, Yeebo (International Holdings) Limited is a diversified electronic component company, with a wide range of business interests in flat panel display, OLED and capacitor. Headquartered in Hong Kong, the manufacturing activities largely reside in Guangdong and Jiangsu provinces. With a global sales footprint, Yeebo is able to service its global customers on a local basis.

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