Yeebo Announces Annual Results for FY2021/22; Revenue Growth of 42% Achieved Impressive Growth of 42% in Profit Attributable to Owners; Committed to Transforming into an Advanced Technology-based Manufacturing Leader

Financial Highlights

HONG KONG SAR – Media OutReach – 29 June 2022 – Yeebo (International Holdings) Limited (“Yeebo” or the “Company”, stock code: 259, which together with its subsidiaries is referred to as the “Group”), a renowned company in the developing, manufacturing and sale of Liquid Crystal Displays and modules, Thin Film Transistor and Thin Film Transistor – Capacitive Touch Panel module in Hong Kong, announces its annual results for the year ended 31 March 2022 (the “Year”).

A broadened range of superior products, robust customer demand, and consistent execution helped drive outstanding financial results in the Year. The Group achieved turnover of HK$1.3 billion, an increase of 42% from last year. Gross profit grew from approximately HK$109 million to HK$200 million, an increase of 83% from last year. Profit attributable to owners of the Company increased from approximately HK$188 million to HK$267 million. Basic earnings per share were HK27.3 cents. The Board of Directors recommended a final dividend of HK5 cents per share for the year ended 31 March 2022.

As the Board is of the view that the current trading price of the shares of the Company does not reflect their intrinsic value, it intends to exercise its powers to buy back the shares in the open market. The Board believes that the Share Buy-back can enhance the value of the shares and reflects 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 Hung, Kenneth, Chairman of Yeebo, said, “In the FY2021/22, COVID-19 was continuing to spread around the world, and has seriously affected the stability of the supply chain. Against such challenging setting, the Group achieved outstanding growth in both sales revenue and operating profit. All of which was made possible only with the management team’s consistent execution – its resolute effort in product development, facilities expansion and upgrade, cost control enhancement and raw materials procurement management.”

The Group’s concerted effort in its marketing and product development has boosted its success in capturing market share in many of the higher growth product markets, such as industrial control devices, smart home and office appliances, internet protocol phones, medical equipment and medical care devices. The Group has strengthened its product development capabilities across the Liquid Crystal Display module (“LCM”), Thin Film Transistor (“TFT”) and Thin Film Transistor – Capacitive Touch Panel module (“TFT-CTP”) products. Such product expansion helped the Group in further growing its well-diversified customer portfolio, including many world leading brands.

COVID-19 has continued to impact the global supply chain causing disruptions to many companies, logistics and the flow of supplies and products. The Group has taken extra effort (i) to maintain a stable yet agile supply of raw materials in meeting the production requirements, and (ii) to preserve a committed and skilled labour force through reasonable wage increases.

Furthermore, through vertical integration, the Group is able to sustain its cost competitiveness and safeguard the supply of quality raw materials internally. Production facilities have been upgraded and expanded to accommodate the increase in business volume and to provide further agility in meeting the dynamic needs of today’s customers.

Optimized operational efficiency, together with an enhanced sales-mix, with higher modules-related sales, facilitated such improvement in profitability. Gross profit margin improved to a healthy level of 16% against 12% in last year.

Apart from its core business, the Group has two high growth and profit-driving engines through its equity investment in Nantong Jianghai Capacitor Company Ltd (“Nantong Jianghai”) and Suzhou QingYue Optoelectronics Technology Co. Ltd. (“Suzhou QingYue”).

For Nantong Jianghai, it continued to deliver a remarkable financial performance against the headwind of rising manufacturing costs, from the raw materials to electricity. The Group’s share of profit from Nantong Jianghai increased from HK$154 million to HK$194 million, representing an increase of HK$40 million or 26%. Nantong Jianghai is the leading provider of capacitors and energy storage in China. Its main products can be categorized into 3 groups: (i) aluminium electrolytic capacitors, (ii) thin film capacitors and (iii) supercapacitors. It has achieved sustainable growth through long term commitment in investing in research and development of new technology in materials, product development and manufacturing processing.

Aluminium electrolytic capacitors continued to deliver an impressive year-on-year sales growth. Industrial-grade capacitors accounted for over 75% of sales and captured a remarkable market share in the large-size aluminium electrolytic capacitors market. Thin film capacitors also registered exciting sales growth, boosted by strong demand in the new energy and electrical vehicle markets. Supercapacitors were also well positioned and offered some of the most exciting potential growth in the smart meter, rail transportation, port infrastructure and power grid markets.

Yeebo started investing in Nantong Jianghai in 2005. Its business has since grown substantially. Subsequent to the Year, the Group disposed of a total of 10,463,000 Nantong Jianghai shares, which represented approximately 4.03% of Yeebo’s stake in Nantong Jianghai, or 1.26% of the entire issued share capital of Nantong Jianghai, for a total consideration of RMB210.4 million (exclusive of transaction costs). Immediately after the disposal, the Group remains holding 249,121,000 Nantong Jianghai shares, and Nantong Jianghai continues to be an associate of the Group.

For Suzhou QingYue, the share of profit from Suzhou QingYue amounted to HK$18 million in this Year.

Suzhou QingYue is one of the global leaders in PMOLED. It posted strong sales growth, driven by the increase in sales of its e-paper modules. PMOLED sales declined slightly year-on-year, against extraordinary sales achieved in the medical equipment, medical and health care product sales in the previous year.

Strong sales momentum on the e-paper modules, well received among retailers, is expected to continue. Micro-OLED has also commenced pilot production in small quantity during the Year. Its main applications include the “near-eye” display and the projection display market, augmented reality (“AR”) and virtual reality (“VR”) markets.

To support with its robust business expansion, Suzhou QingYue has plan to have its shares listed in The Shanghai Stock Exchange (“SSE”) and has submitted the relevant application to SSE for approval. The Group firmly believes that the proposed listing plan will bring meaningful returns to the Group in the future.

Mr. Fang Hung, Kenneth, Chairman of Yeebo, concluded, “As the global economy continues its recovery, the demand for our products is expected to continue to grow. Looking forward, we will continue to focus on the high-value display market, committed to further develop the LCM, TFT and TFT-CTP market which will generate superior quality of earnings to the Group.”

“We are also confident our associate companies, Nantong Jianghai and Suzhou QingYue, will continue to deliver robust results and further cement their market leading positions. Leveraging on the corporate platform of the Company and its associate companies, the Group aims at fully transforming itself into a leader in the advanced technology-based manufacturing industries. We will actively explore investment or acquisition opportunities for market leading companies with high technological advantages.”

About Yeebo (International Holdings) Limited:

Founded in 1988, Yeebo (International Holdings) Limited is a renowned company in the developing, manufacturing and sale of Liquid Crystal Displays and modules, Thin Film Transistor and Thin Film Transistor – Capacitive Touch Panel module in Hong Kong. With headquarter located in Hong Kong, Yeebo’s manufacturing activities mainly operate with three factories locating in Jiangmen city and Shenzhen city of Guangdong Province. Yeebo’s products have a strong global presence in key electronic market sectors including Industrial applications, Telecommunications, Medical equipment, and Electronic consumable products. The Group is also an approved vendor to a number of internationally renowned customers. In addition to its core operations, the Group also has equity interests in the capacitor (Nantong Jianghai), OLED (Suzhou QingYue), and eyewear (OneSec) industries.

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