English | 简体中文 | 繁體中文 | 한국어 | 日本語
Tuesday, 19 November 2013, 19:50 HKT/SGT

Source: eprint Group Limited
eprint Group Limited Announces Details of Proposed Listing on the Main Board of HKSE
Offers 125,000,000 Shares Ranging from HK$0.78 to HK$1.08 per Share

HONG KONG, Nov 19, 2013 - (ACN Newswire) - eprint Group Limited ("eprint" or the "Group"), the leading printing services provider in Hong Kong which covers both online self-service ordering platforms and retail stores, today announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited ("HKSE").

eprint Group Limited Announces Details of Proposed Listing on the Main Board of HKSE

-- The leading printing services provider in Hong Kong which covers both online self-service ordering platforms and retail stores . Its gross profit margin in FY2013 reached 36.2%, and the Group's business has generated strong cashflow
-- Self-developed e-print management system and production facilities in Hong Kong enable it to complete orders within six hours
-- The Group is the leading printing service provider with an extensive retail network with 16 "eprint" and "invoice" outlets in Hong Kong
-- The Group intends to replicate its successful business model in South East Asia and has established presence in Malaysia via setting up a joint venture which currently operates eight retail stores there
-- Intends to distribute around 30% or more of its net profit available for distribution to shareholders as dividends

Offer details
eprint intends to offer 125,000,000 shares (subject to allocation and Over-allotment Option), of which 90% or 112,500,000 shares are for Placing and the remaining 10% or 12,500,000 shares are for the Hong Kong Public Offer. The indicative offer price range is between HK$0.78 and HK$1.08 per share. Assuming the Over-allotment Option is not exercised, the total issue size is estimated at between approximately HK$97,500,000 and HK$135,000,000.

The Hong Kong Public Offer will begin on 20 November 2013 (Wednesday) and end at 12:00 noon on 25 November 2013 (Monday). The final offer price and allotment results will be announced on 2 December 2013 (Monday). Trading in eprint's shares will commence on the Main Board of the HKSE on 3 December 2013 (Tuesday) under the stock code 1884. The shares will be traded in board lots of 4,000 shares.

Cinda International Capital Limited is the Sole Sponsor, while Cinda International Securities Limited is the Sole Bookrunner and Lead Manager.

Business highlights
The leading printing service provider in Hong Kong covering both online self-service platforms and retail stores
eprint operates four highly online platforms to provide round-the-clock self-service ordering services for SMEs, education institutes and retail customers. The platforms make it possible for customers to proofread, preview and track the products online, which enhance the efficiently of order processing. Therefore, it has become one of the Group's key income contributors, its proportion to total revenue increased from 31.8% in FY2011 to 35.2% in FY2013, demonstrating strong potential for development.

In addition, eprint is also a printing service provider with extensive retail network. Currently, it has established 16 "eprint" and "invoice" stores in Hong Kong, enhancing its brand reputation while expanding its customer base, thus reinforcing its competitive advantages as a iconic and well recognized local brand.

Unique eprint management system ensures quick and high quality printing services
The Group's self-developed eprint management system can automatically receive, combine and route multiple print jobs with similar printing parameters (such as type of the product, quantity and paper type, etc) for printing as a single press-run, thereby reducing production costs and wastage for undertaking printing of small-size and customised print jobs, boosting the Group's operational efficiency.

The Group dedicates continuous efforts in its information technology infrastructure which computerises and standardises the entire process from order to print. As production takes place in Hong Kong, eprint can rapidly handle large volume of orders at very competitive prices. Normally the Group is able to deliver products within one to two working days after order confirmation, and it also provides express printing services where a print order can be completed within six hours from order confirmation.

Strong financial track record and target at a stable dividend payout
The Group's gross profit margin has continued to increase for the past three years and reached 36.2% in 2013. Its net profit margin for the same period reached around 15.0%. At the same time, the Group's operation generates a strong cashflow. As at 31 March 2013, its cash and cash equivalent were HK$71,090,000. The Group intends to recommend dividends of around 30% or more of its net profit available for distribution as dividends.

Future Strategies
Leveraging its "e-print" brand and the competitive strengths, including its online sales platforms, retail channels and an integrated information technology system, eprint intends to replicate the successful business model for expansion into overseas markets, such as South East Asia and Macau. The Group has established a joint venture, E-Print Solutions, in Malaysia, and operates eight stores there. The revenue of E-Print Solutions has been growing during the track record period and has started to make profit.

On the other hand, in response to the rapidly growing online retailing market, the Group plans to launch a new self-developed mobile application for self-service ordering so that customers could access its services, place orders and make payments anytime and anywhere through their mobile phones. Also, the Group is enhancing its self-service ordering platform, improving its IT infrastructure, as well as expanding and optimising the retail network in Hong Kong. The Group intends to open four "e-print" stores and one "invoice" store in 2013 and 2014 respectively while actively expanding production capacity to meet future business growth.

Mr She Siu Kee William, Chairman, Executive Director and CEO of eprint, said, "The vision of our management sparked us to start the online retail printing business and successfully capture the opportunities in the online market. Today, eprint has grown into Hong Kong's largest printing service provider which covers both online self-service ordering platforms and retail stores. The printing market remains fragmented, presenting huge potential for development. Looking ahead, eprint will continue to be the market innovator, while utilising our online retail platform and increasing market share through innovation in order to reinforce its leadership as an industry pioneer. Our successful experience in Malaysia gives us confidence in further expanding into overseas markets. Capitalising on the brand of eprint and our experienced management team, we aim to bring stable and promising returns for shareholders."

Financial Performance
(HK$000)       For the Year              CAGR       For the Four Months 
                Ended 31 March            (%)         Ended 31 July
                2011    2012    2013                   2012    2013
Revenue        213,536  254,146 284,498   +15.4%       93,138  101,569
Gross Profit   63,785   90,269  102,915   +27.0%       34,260  37,536 
Profit         29,296   49,255  50,551    +31.4%       17,400  7,304*
Net Profit     22,888   41,911  42,618    +36.5%       14,808  4,678*
* Mainly attributable to one-off expenses incurred by listing 
Offer details
No. of Offer Shares: 125,000,000 shares (subject to the Over-allotment Option)
Offer Size:
-- No of Placement shares: 90% 112,500,000 shares (subject to allocation and the Over-allotment Option)
-- No of Hong Kong Public Offer shares: 10% 12,500,000 shares (subject to allocation)
Offer Price Range: HK$0.78 HK$1.08 per share
Offer Size: HK$97,500,000 to HK$135,000,000 (subject to the Over-allotment Option)
Board Lot: 4,000 shares
Stock Code: 1884

Use of Net Proceeds
Assuming the Offer Price of HK$0.93 per offer share (being the mid-point of the proposed Offer Price range), the net proceeds raised are estimated to be approximately HK$89,700,000 (after deducting related expenses) and will be used in the following manner:

-- Expand production capacity and post-press finishing capability - 37.5%
-- Repay banking facilities in respect of its production machinery procured under finance leasing - 34.7%
-- Expand retail network - 18.0%
-- Upgrade IT infrastructure and enhance online self-service ordering platform - 5.7%
-- General working capital - 4.1%

Strategic Financial Relations Limited
Vicky Lee +852 2864 4834  vicky.lee@sprg.com.hk
Maggie Au +852 2864 4815  maggie.au@sprg.com.hk
Agnes Luo +852 2864 4851  agnes.luo@sprg.com.hk
Fax: +852 2527 1196
Website: http://www.sprg.asia/hk

Topic: Press release summary
Source: eprint Group Limited

Sectors: Daily Finance, Daily News
From the Asia Corporate News Network

Copyright © 2023 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.


eprint Group Limited Related News
Apr 30, 2016 21:00 HKT/SGT
Hong Kong Gifts & Premium Fair and the International Printing & Packaging Fair Attract 64,000+ Buyers
Apr 27, 2016 19:00 HKT/SGT
The World's Largest Gifts & Premium Fair and the International Printing & Packaging Fair Open
Aug 11, 2014 22:52 HKT/SGT
Dongfeng Proposed to Acquire 16.5% Stake of eprint to Become Strategic Investor
Aug 11, 2014 22:37 HKT/SGT
Aug 11, 2014 22:35 HKT/SGT
More news >>
Copyright © 2023 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 214 890 4418 | China: +86 181 2376 3721 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575