Media Chinese International Ltd · HKEX:685
Media Chinese International — Shareholder Meeting (August 2017)
49 slides from Media Chinese International's shareholder meeting presentation, Aug 11, 2017
Slide 1: Media Chinese International Limited Annual General Meeting
Media Chinese International Limited Annual General Meeting 11th August 2017 Stock Code: (Malaysia) 5090 ; (Hong Kong) 685
Slide 2: Agenda
Agenda (1) Overview (2) Performance Review • Market Highlights • Financial Performance (3) Strategic Update (4) Outlook (5) Questions from Minority Shareholder Watchdog Group 1
Slide 3: (1) Overview
Agenda (1) Overview 2
Slide 4: Geographic Diversity
Geographic Diversity Media Chinese (Dual Primary Listed) Greater China Southeast Asia North America Digital Media Sin Chew Daily Toronto Ming Pao MP Daily News (HK) Websites China Press Vancouver Ming Pao Yazhou Zhoukan Mobile Applications Guang Ming Daily Toronto Canadian 10 m
Slide 5: Publishing – Newspapers and Magazines
Publishing – Newspapers and Magazines 4
Slide 6: Digital/New Media – e-Papers, e-Magazines, websites & mobile apps
Digital/New Media – e-Papers, e-Magazines, websites & mobile apps Online Media (Southeast Asia) Online Media (Hong Kong) Online Media (Mainland China) Mobile Media Online Media (Canada) 5
Slide 7: (2) Performance Review – Market Highlights
Agenda (2) Performance Review • Market Highlights 6
Slide 8: Market Share in Peninsular Malaysia and Hong Kong
Market Share in Peninsular Malaysia and Hong Kong Penisular Malaysia Period from 1 Jan 2016 to 31 Dec 2016 Chinese Newspapers Readership Ranking in Malaysia Sin Chew - Sin Chew Daily 1,123,000 No. 1 - Guang Ming Daily 182,000 No. 3 Nanyang - China Press 812,000 No. 2 - Nanyang Siang Pau 51,000 with
Slide 9: Adex for April 2016 to March 2017 in Malaysia
Adex for April 2016 to March 2017 in Malaysia YTD Adex (Apr’16 to Mar’17) Total Adex (RM) In-store Radio Cinema Newspapers : 3,409m media 15.7% Magazines 1.0% 0.5% 0.9% Magazines : 98m 0.5% TV (FTA) TV (FTV) : 2,870m Newspapers 15.9% Pay TV : 11,264m 18.9% Radio * : 176m 23.1% In-store media : 162m
Slide 10: Total Newspapers Adex in Malaysia
Total Newspapers Adex in Malaysia -19.0% -10.1% -15.7% 2,000 In RM 'million 1,500 -15.3% 1,000 500 0 Chinese English Malay Tamil Apr'16 - Mar'17 Apr'15 - Mar'16 Chinese English Malay Tamil Total (In RM 'm) (In RM 'm) (In RM 'm) (In RM 'm) (In RM 'm) Apr'16 - Mar'17 1,047.8 1,385.6 956.5 18.8 3,408.7
Slide 11: Share of Chinese Newspapers Advertising Expenditure In Malaysia
Share of Chinese Newspapers Advertising Expenditure In Malaysia For Apr-16 to Mar-17 NEWSPAPERS ADEX Others - West ENG Newspaper Malaysia 40.6% 3.0% MCIL Group CHN 22.4% Newspaper 30.7% Tamil Newspaper Others - East 0.6% Malaysia BM Newspaper 5.3% 28.1% Adex for Total Newspapers : RM3,409 million Ch
Slide 12: Adex for April 2016 to March 2017 in Hong Kong
Adex for April 2016 to March 2017 in Hong Kong YTD Adex (Apr’16 to Mar’17) Total Adex (HKD) Newspapers : 31,337m 16.2% Others Magazines : 7,331m 15% Newspapers 31% Interactive TV : 30,720m 13% Radio : 4,367m 5.5% Radio Interactive : 13,757m 4% Magazines Others : 15,121m TV 7% 30% Newspaper : -11.1%
Slide 13: (2) Performance Review – Financial Performance
Agenda (2) Performance Review • Financial Performance 12
Slide 14: Group Results Summary
Group Results Summary For the year ended 31 March (US$’ 000) 2017 2016 Turnover 302,586 349,126 Profit before income tax 20,775 37,395 Profit attributable to owners of the Company for the year 15,156 26,649 EBITDA 32,154 50,228 EBITDA Margin (%) 10.6% 14.4% 13
Slide 15: Financial Position
Financial Position As at 31 March (US$ ‘000) 2017 2016 Total assets 308,806 402,940 Net assets 197,315 218,727 Cash and cash equivalents and short-term bank deposits 90,032 140,950 Shareholders funds 193,694 213,024 Net assets per share (US cents) 11.48 12.63 Basic earnings per share (US cents) 0.90
Slide 16: Segment Results
Segment Results For the year ended 31 March 2017 (US$ ‘000) Malaysia & Hong Kong, Publishing North other SEA Taiwan & & Printing Travel Total America countries PRC Sub-total Turnover 162,080 53,498 17,599 233,177 69,409 302,586 Segment 28,301 (3,798) (1,057) 23,446 2,464 25,910 profit/(loss) before
Slide 17: Dividends
Dividends FY FY 2017 2016 First Interim Dividend (US cents) 0.360 0.500 Second Interim Dividend (US cents) 0.360 0.600 Total Dividend (US cents) 0.720 1.100 Dividend Pay-out Ratio (as a % of PATAMI) 80% 70% Share Price as at 31 March RM0.64 RM0.72 Dividend Yield as at 31 March 5.0% 6.0% 16
Slide 18: (3) Strategic Update
Agenda (3) Strategic Update 17
Slide 19: Strategic Update – Malaysia
Strategic Update – Malaysia Sin Chew E-Paper Organised various activities e.g. “Sin Chew Best Story” 《星剧本》 contest to engage the young generation towards our media platforms. Added new function to e-paper apps, i.e. “Micro Film Section” 《微影視》 for digital generation to share their experiences via sho
Slide 20: Strategic Update – Malaysia (cont'd)
Strategic Update – Malaysia (cont’d) China Press Mobile App Launched in March 2016 Launched in June 2016 Accumulated download users > 85,000 Complete classified portal with 4 main category, i.e. Monthly Impressions > 7 million Jobs, Cars, Property and Services Monthly Screen Views > 20 million 19
Slide 21: Strategic Update – Malaysia (cont'd)
Strategic Update – Malaysia (cont’d) Chinapress.com.my Website In 2017, Website monthly Pageviews doubled up to 60 million on average as compared to 30 million in 2016. Unique Visitors increased from 3 million to 5.9 million on year-on-year basis. Over 60 Million Monthly Page Views Mobile Traffic 80
Slide 22: Strategic Update – Malaysia (cont'd) Pocketimes Online Video Portal
Strategic Update – Malaysia (cont’d) Pocketimes Online Video Portal Upgraded version of “Pocketimes Plus” was launched with more lifestyle content. Presented more new programs such as a 23-episodes health related program, food and Detective Le lifestyle program with Sin Chew e- paper. Providing audi
Slide 23: Strategic Update – Malaysia (cont'd) LOGON e-Marketplace
Strategic Update – Malaysia (cont’d) LOGON e-Marketplace Expanding e-commerce ‘business to business to consumer (B2B2C)’ model to include ‘business to consumer (B2C)’ model for higher profit margin. Introducing ‘call-to-buy’ and ‘cash-on- delivery’ features to enable a friendlier buying experience f
Slide 24: Strategic Update – Malaysia (cont'd)
Strategic Update – Malaysia (cont’d) Health and Wellness Introduced specific topic features, e.g. health and wellness, education and personal wealth management in both print and digital platforms, with an aim to broaden advertising revenue streams with targeted audiences. http://easily.sinchew.com.m
Slide 25: Strategic Update – Malaysia (cont'd)
Strategic Update – Malaysia (cont’d) MCIL Malaysian Operations, total strength .... 11.1 million Unique Visitors per month 106.6 million Pageviews per month ************** WEBSITES ************** 5.9 million Facebook Followers 3.5 million Video Views per month Sources: Google Analytics as at June 20
Slide 26: Strategic Update – Hong Kong
Strategic Update – Hong Kong 1) Technology update Totally Revamped in Oct 2016 Mingpao.com Homepage Redesigned 25
Slide 27: Strategic Update – Hong Kong (cont'd)
Strategic Update – Hong Kong (cont’d) 1) Technology update (Push Notification) • Push as a Service • All-in-one push solution • Cover most popular platforms • App Push • Browser Push (App Push +Browser Push + Facebook Push + WeChat Push • Text messages • Supports Chrome & Firefox + SMS) User-control
Slide 28: Strategic Update – Hong Kong (cont'd)
Strategic Update – Hong Kong (cont’d) 2) Digital Performance (Ming Pao Daily News) Total readership experienced a U-turn to 403,000, main engine lays on digital growth which reported as over digital 250,000 readership (Source: The Chinese University of Hong Kong “Hong Kong Newspaper Reading” study 2
Slide 29: Strategic Update – Hong Kong (cont'd)
Strategic Update – Hong Kong (cont’d) 2) Digital Performance (Ming Pao Daily News) Mingpaonews.com website reached its record high of 3.6M users in June 2017, after the “Yellow Umbrella” movement in October 2014. In the last quarter we revamped our main page (mingpao.com) desktop version and mobile
Slide 30: Strategic Update – Hong Kong (cont'd)
Strategic Update – Hong Kong (cont’d) 3) Digital Development (Ming Pao Daily News) Launched video content from investment experts on daily or trading days basis Building up LIVE content at Mingpao OL Facebook 29
Slide 31: (4) Outlook
x Agenda (4) Outlook fTavalalalalwAé
Slide 32: Outlook Statement FY2018
Outlook Statement FY2018 The Group remains cautious about the business conditions for the year ahead. China is tightening its capital outflows policies which may have adverse influence on the advertising and promotion budgets from advertisers especially for the property and luxury industries in the
Slide 33: (5) Questions from Minority Shareholder Watchdog Group
Agenda (5) Questions from Minority Shareholder Watchdog Group 32
Slide 34: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 1 (a): For the year ended 31 March 2017, turnover of the publishing and printing operations in Malaysia declined by 13% from US$186.4 million recorded in FY2016 while digital business sales recorded a double di
Slide 35: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 1 (b): For the year ended 31 March 2017, turnover of the publishing and printing operations in Malaysia declined by 13% from US$186.4 million recorded in FY2016 while digital business sales recorded a double di
Slide 36: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 1 (b): The traditional print media is declining around the world, and the Malaysian media industry is no exception. Although the digital media landscape is growing at an exponential rate, but the decline in tradi
Slide 37: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 2: The Company had on 22 July 2016 entered into the Share Transfer Agreement to dispose the entire equity interest in One Media. We noted that the Share Transfer Long Stop Date have been extended a few times. I
Slide 38: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 2: We refer to our latest Voluntary Announcement made on 1 August 2017, none of the conditions precedent to the Share Transfer Agreement has been satisfied or waived by Qingdao West Coast Holdings (Internation) L
Slide 39: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3 (a): For the FY2017, the Group’s travel segment reported a total turnover of US$69.4 million, representing a year-on-year decline of 16.1% while segment profit before tax fell 60.6% or US$3.786 million to US$
Slide 40: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3 (b): For the FY2017, the Group’s travel segment reported a total turnover of US$69.4 million, representing a year-on-year decline of 16.1% while segment profit before tax fell 60.6% or US$3.786 million to US$
Slide 41: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Answer 3 (b): Being a service provider for worldwide travelers, the Group considers positive customer experience as its most valuable asset. It has always been the Group’s core strategy to provide customers with high le
Slide 42: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 3 (c): For the FY2017, the Group’s travel segment reported a total turnover of US$69.4 million, representing a year-on-year decline of 16.1% while segment profit before tax fell 60.6% or US$3.786 million to US$
Slide 43: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 4 (a): For FY2017, the Group’s advertising income was US$165.2 million, representing 55% of the Group’s revenue. The revenue was 13% or US$25 million lower than the amount recorded in FY2016. (a) What was the a
Slide 44: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 4 (b): For FY2017, the Group’s advertising income was US$165.2 million, representing 55% of the Group’s revenue. The revenue was 13% or US$25 million lower than the amount recorded in FY2016. (b) What was the G
Slide 45: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 4 (c): For FY2017, the Group’s advertising income was US$165.2 million, representing 55% of the Group’s revenue. The revenue was 13% or US$25 million lower than the amount recorded in FY2016. (c) Given the weak
Slide 46: Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters
Questions from Minority Shareholder Watchdog Group – Strategic/Financial Matters Question 5: As at 31 March 2017, trade receivables amounted to US$12.5 million were past due but not impaired and US$2.3 million were past due and fully impaired. It was assessed that a portion of the receivables was ex
Slide 47: Questions from Minority Shareholder Watchdog Group – Corporate Governance Matter
Questions from Minority Shareholder Watchdog Group – Corporate Governance Matter Question 1: The Company had tabled a resolution to retain Mr. David Yu, who has served on the Board for 17 years as an independent director. We hope the Board would take cognisance of the requirements under the Practice
Slide 48: Thank You
Thank You 47
Slide 49: Forward Looking Statements
Forward Looking Statements This presentation includes certain forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Media Chinese International Ltd expects or anticipates will or may occur in the future are forward
Media Chinese International — Shareholder Meeting (August 2017) on 6ix