Yeebo Announces Annual Results for FY2022/23; Profit Attributable to Owners Surged by 131%

Forge ahead with Business Transformation; Maintain Strategic Focus on Advanced Technology-based Manufacturing Industries

Financial Highlights


HONG KONG SAR - Media OutReach - 19 June 2023 - Yeebo (International Holdings) Limited ("Yeebo" or the "Company", stock code: 259, which together with its subsidiaries is referred to as the "Group") announces its annual results for the year ended 31 March 2023 (the "Year").

With the protracted COVID-19 pandemic, the rising interest rate and inflation in many major economies, unstable political situations such as the Russo-Ukrainian War and the tension between the People's Republic of China (the "PRC") and the United States of America, the economic environment during the Year was full of challenges. Nevertheless, Yeebo still managed to deliver remarkable results for the Year which was attributable to the sound financial position of the Group and the resilience of its team.

The Group recorded a consolidated revenue for the Year of approximately HK$1.33 billion, representing an increase of 4.7% as compared with that for the previous financial year. Gross profit increased by 11.8% to HK$223.3 million for the Year as the Group applied strict control over material costs, adopted agile inventory management and improved labour efficiency in order to cope with the challenging business environment. Gross profit margin improved to around 16.8% from 15.8%. Profit attributable to owners of the Company was HK$615.1 million, representing a significant increase of 130.7% or HK$348.5 million as compared with that for the previous financial year. Basic earnings per share were HK63.6 cents. The Board of Directors has resolved to recommend the payments of a final dividend of HK5 cents per share and a second special dividend of HK5 cents per share for the Year.

The Company repurchased a total of 19,155,171 shares on The Stock Exchange of Hong Kong Limited during the Year, with a total consideration of approximately HK$58 million. The Board believes that the share buyback can increase both the value of the shares and return to shareholders as well as reflect the Company's confidence in its long-term business prospects for the benefit of the Company and its shareholders as a whole.

Commenting on the annual results of the Group, Mr. Fang Yan Tak, Douglas, Chairman of Yeebo, said, "In the FY2022/23, notwithstanding the considerable economic challenges and geopolitical tensions across the world, the Group achieved growth in both revenue and profit. Such strong performance is a testament to our team's consistent hard work and commitment to customer satisfaction. These remarkable results have afforded us the ability in enhancing our core competitiveness. We have continued our intensity in research and development, broadened our new and superior product ranges, and expanded and upgraded the production facilities. We have also been strategic and disciplined in both broadening our customer base and planning our capacity. Our corporate goal has remained intact - aspiring to be a leading operator in the advanced technology-based manufacturing industries."

The Group's products can be categorized into such main types as Liquid Crystal Display ("LCD"), Liquid Crystal Display module ("LCM"), Thin Film Transistor module ("TFT") and Capacitive Touch Panel module ("CTP"). As the Group strategically focus on high-growth business segments such as industrial equipment, smart home appliances and telecommunications, and on extending the range of its offerings from the small modules to medium and large-sized display modules, the ongoing migration from pure LCD panels to LCM/TFT and CTP continued during the Year. Accordingly, the sales of CTP and TFT increased by 57% and 35% to HK$320.6 million and HK$278.9 million, respectively.

For Nantong Jianghai Capacitor Company Ltd. ("Nantong Jianghai"), it solidified its leading position in the market for capacitors and continued to deliver impressive results for the Year. The Group's share of Nantong Jianghai's profit increased by 18.1% to HK$228.6 million.

Nantong Jianghai reported a significant increase in sales by capitalizing on emerging industries, including new energy, electric vehicles and energy storage. Production capacity for both aluminium electrolytic capacitors for new energy and thin film capacitors has expanded remarkably, enabling Nantong Jianghai to capture the prevailing market opportunities. In addition, the expansion in production capacity has resulted in a marked improvement in production efficiency and cost reduction which serves to enhance Nantong Jianghai's competitive strengths.

During the Year, the Group divested a total of 14,563,000 shares in Nantong Jianghai for a total consideration of approximately HK$353.7 million and realised a gain of HK$241.5 million. As at 31 March 2023, the Group held 245,021,000 shares in Nantong Jianghai with a market value of HK$6.1 billion. The Group started investing in Nantong Jianghai in 2005 and since then the business of Nantong Jianghai has grown substantially. Management believes that realising part of its gain and using the proceeds from the disposal to capture other business opportunities is in the interests of the Company and its shareholders as a whole.

For Suzhou QingYue Optoelectronics Technology Co., Ltd. ("Suzhou QingYue"), it is one of the global leaders in passive mode organic light emitting diode ("PMOLED"). Revenue for the Year increased by 42.9% to HK$1.3 billion. The Group's share of profit from Suzhou QingYue amounted to HK$13.2 million in this Year.

During the Year, Suzhou QingYue recorded a remarkable increase in sales. This was mainly attributable to the strong growth of the e-paper module business. It is generated by the increasing adoption of electronic price label in the supermarkets and retail chain stores. Moreover, e-paper modules' excellent characteristics of being ultra-thin, light and bendable, and requiring only low power consumption have extended the scope of its applications to other devices such as e-paper display boards, e-paper watches and electronic cards.

The technical advancement in PMOLED has enabled the application of Suzhou QingYue's products to a wider range of industries such as healthcare, smart home applications, automotive industrial controls, consumer electronics, and security products. Significant progress has also been made in the product development of micro-OLED, especially in the near-eye display market and Suzhou QingYue is well-positioned to capture opportunities in the markets for augmented reality and virtual reality.

As a milestone of its development, the shares of Suzhou QingYue were successfully listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange (the "Suzhou QingYue Listing") during the Year. The Group recorded a gain of HK$196.8 million on deemed disposal pursuant to the Suzhou QingYue Listing. As at 31 March 2023, the Group held 126,345,600 shares in Suzhou QingYue with a market value of HK$1.7 billion.

Mr. Fang Yan Tak, Douglas, Chairman of Yeebo, concluded, "The global economic landscape is continuously evolving, and we are faced with numerous uncertainties and challenges that may impact our future performance. Looking forward, we remain optimistic about our long-term prospects. We are investing to position the Group for accelerated long-term growth, focusing on both our core businesses as well as our growth businesses. We will also continue for the Group's transformation and strategic focus on advanced technology-based manufacturing industries."

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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 serve its global customers on a local basis.