Ten Pao Group Holdings Limited Announces 2015 Annual Results



Ten Pao Group Holdings Limited

Announces 2015 Annual Results

* * *

Net Profit Skyrockets by 133.2% to HK$127.6 Million

Basic Earnings Per Share Surges by 128.8% to HK16.7 Cents


(Hong Kong, 28 March 2016) – Ten Pao Group Holdings Limited (“Ten Pao” or “the Group” ; stock code: 1979), a leading one-stop manufacturer of switching power supply units in China, today announced its audited annual results for the year ended 31 December 2015. This is the Group’s first annual results announcement upon its listing on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”) on 11 December 2015.


Driven by the increase in the volume of products sold as a result of the increased in the demand from customers, the Group’s revenue increased by 16.9% to HK$2,256.0 million (2014: HK$1,930.5 million) when compared with the same period of last year. Gross profit rose by 17.4% to HK$390.3 million (2014: HK$332.4 million) and gross profit margin was at 17.3%. Despite the recognition of non-recurring listing expenses of HK$26.8 million in the financial year of 2015, net profit skyrocketed by 133.2% to a new record high of HK$127.6 million (2014: HK$54.7 million), attributable to the increase in revenue and a net gain of HK$7.9 million from derivative financial instruments. Net profit margin increased by 2.9 percentage points to 5.7%. Basic earnings per share surged by 128.8% to HK16.7 cents. (2014: HK7.3 cents).


The Board recommended payment of a final dividend of HK 2 cents per share (2014: nil).

——Excluding the realized and unrealized gain / (loss) in derivative financial instruments (net of income tax)




Mr. Hung Kwong Yee, Chairman, Executive Director and Chief Executive Officer of Ten Pao, said, “I am very pleased to announce the Group’s first annual results after our listing on the SEHK on 11 December 2015. The listing represents a major milestone in the development history of Ten Pao and presents new opportunities for our future growth. During the year under review, the Group has delivered a remarkable business performance by leveraging our strong R&D capabilities, industry-leading technology, well-established production facilities and solid relationship with our customers. Our continuous shift of the Group’s product mix to products with higher margin and the implementation of cost-saving plans has also strengthened our market position. We are poised to capture the opportunities brought about by the rising market demand and the national strategic development plan for smart production facilities and products.”


Business Review


Strong growth in the demand for switching power supply units for consumer products


Ten Pao has more than 1,400 types of switching power supply units for consumer products which are applied to various industry sectors, including telecommunications equipment, media and entertainment equipment (such as AV products and computers), electronic cigarettes, home electrical appliances and other products (such as LED lighting and health care products). Most of the products are incorporated into or applied in its customers’ end products under their own brands.


During the year under review, revenue from switching power supply units for consumer products increased by 12.8% to HK$1,786.5 million when compared with the same period of last year. Driven by the launch of quick charger for mobile phone, the sales of switching power supply units for telecommunication equipment increased, accounting for 45.1% of the total revenue. The increase in sales of switching power supply units for media and entertainment equipment, accounting for 19.4% of the total revenue driven by the increase in demand for switching power supply units for audio products in the US market. Sales of switching power supply units for home electrical appliances also increased, accounting for 5.6% of the total revenue.


Stable performance of switching power supply units for industrial use


The Group has more than 300 types of smart chargers and controllers that are applied in industrial power tools. Revenue increased by 35.3% to HK$469.5 million when compared with the same period of last year, which was mainly attributable to the increase in sales volume as its major customers launched a number of new projects. Revenue of smart chargers and controllers for industrial use accounted for 20.8% of the total revenue.




The Group’s switching power supply units have a wide range of applications which are necessities in daily life, and the scope of applications is expanding from smartphones to other smart devices, digital AV products and laptops. Concurrently the innovation of technology and product specification is rising due to continuous development of new products as well as the safety standards and energy-efficiency requirements. Thus the demand for switching power supply units is expected to keep increasing. The Group therefore intends to continue to provide one-stop customer services through its advanced technology, professional expertise on product development and production capacity in order to explore future business opportunities.


The continuous development of new electronic and technology products will stimulate the demand for advanced switching power supply unit, in particular, demand for the ultra-fast chargers supporting a variety of electric power will further increase. As the impact from the macroeconomic cycle on the power tools market is relatively small, the demand for wireless chargers will grow steadily. The emerging electronic cigarettes market also sees huge growth potential as electronic cigarettes are becoming more popular and the leading tobacco producers are joining the market. The Group will strive to establish relationships with more partners in order to capture the market opportunities.


Ten Pao will also actively develop smart production facilities and products to enhance the automated production level and facilitate the upgrade of the manufacturing industry in response to “Made in China 2025,” the national strategic initiative for the manufacturing industry. The Group plans to complete the expansion of production bases and increase the number of production facilities at Huizhou, Guangdong province in China by the first half of 2016 in order to enhance the flexibility of its operations and lower the production cost.


Upon the expansion and the completion of the automation, product quality will be improved and the production capacity will be increased by approximately 20%. In addition, the Group has cooperated with the Hong Kong Productivity Council since the end of 2015 to implement an efficient automated production program, while speeding up the adaptation and transformation of technology and improving production efficiency.


Mr. Hung concluded, “In addition to consolidating our existing markets in China and other regions, the Group will explore potential opportunities for mergers and acquisitions in different markets as well as expand production capacity, with an aim to achieve further growth and more business breakthroughs. Leveraging our R&D capabilities and solid relationship with our customers, we will continue our effort to reinforce Ten Pao’s leading position in the switching power supply unit industry.”


About Ten Pao Group Holdings Limited (Stock Code:1979)

Ten Pao Group Holdings Limited is a leading one-stop manufacturer of switching power supply units in China and has more than 30 years of experience in the power supply industry. Its clienteles include many leading and fast growing international brands. Ten Pao is equipped with strong R&D capabilities and is one of the few manufacturers that have its own CNAS-accredited testing laboratory, which enables it to transform with the change of the technology market while it develops and produces diversified products catering to the specifications of clients’ new products.


For media enquiries, please contact:

Strategic Financial Relations Limited










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Hong Kong Office

No. 10-12, 6/F., Kwong Sang Hong Centre, 151-153 Hoi Bun Road, Kwun Tong, Kowloon, H.K.

Tel:​ 852-27905566

Fax:​ 852-23420146

Email:​ mkt@tenpao.com

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Huizhou Office

Dongjiang Industrial Estate,Shuikou Street,Huizhou City,516005,Guangdong Province, China

Tel:​ 86-752-2312888

Fax:​ 86-752-2313888

Email:​ mkt@tenpao.com