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Sustainable Growth in Turnover and Profit

Turnover up nearly 30% to HK$ 1.8 Billion and Profit Attributable to Owners of the Company up 13.4% to HK$ 93 Million

Interim Highlights

- Turnover increased nearly 30% to HK$1.8 billion

- Profit attributable to Owners of the Company increased 13.4% to HK$ 93 million

- Basic EPS grew 13% to HK 7.66 cents

- Strong balance sheet, with net cash balance of HK$899 million

- The Board recommended an interim dividend of HK 4 cents

- Exhibition and Event Marketing Services performance remained stable

- Brand Signage and Visual Communication business continued to provide a constant revenue stream

- Museum, Themed Environment, Interior and Retail segment saw growth

- Conference and Show Management segment met our expectations
 

(Hong Kong, 29 June 2012) – PICO Far East Holdings Limited (“PICO” or the “Group”, SEHK: 0752), a global Total Brand Activation company, today announced its interim results for the 6 months ended 30 April 2012 (the “Period”).

During the Period, PICO reported a turnover of HK$1,807,068,000 (2011: HK$1,394,445,000), representing an increase of nearly 30% over the same period last year. Profit attributable to owners of the company increased by 13.4 % to HK$92,903,000 (2011: HK$82,100,000). Basic earnings per share is HK 7.66 cents compared to HK 6.78 cents in the previous corresponding period.

The Board has recommended an interim dividend of HK 4 cents per ordinary share (2011: HK 4 cents).

Mr. Lawrence Chia, Chairman of PICO, said, “I am very pleased to present the interim results for the first six months of financial year 2012. Thanks to the Group’s vigilance and sound strategies, we were able to deliver steady and healthy growth across all our business segments. The Exhibition and Event Marketing Services remained stable, and our Brand Signage and Visual Communication business continued to provide a constant revenue stream. The Museum, Themed Environment, Interior and Retail business segment saw growth, while the Conference and Show Management segment met our expectations during the Period.”

Mr. Chia continued, “Looking forward, while the group still relies on the strength of its Asian business, particularly the China market, we are also constantly upgrading our capabilities and knowledge in order to stay ahead of our competitors to capture the opportunities which will arise when slow-growth regions show signs of recovery. Meanwhile, we have also started branching out into marketing works for mega-projects like the 2013 East Asian Games in Tianjin and the 2014 Asian Games in Incheon, South Korea. PICO’s strategy is to continue to remain open to any external growth opportunities in new regions, which will help to accelerate our winning bid strategies for more events like the 2013 Southeast Asian Games in Naypyidaw, Myanmar, the 2014 Winter Olympics in Sochi, Russia, and the 2015 World Expo and the International Textile Machinery Association Exhibition (ITMA) in Milan.”

Business Highlights

During the Period, the Group’s Exhibition and Event Marketing Services remained stable and is the main contributor to revenue, accounting for HK$1,378 million (2011: HK$1,133 million) or 76.2% (2011: 81.2%) of the Group’s total revenue of HK$1,807 million (2011: HK$1,394 million). PICO successfully completed a number of recurring shows during the Period and also recruited a number of new clients. Special projects for the first six months of financial year 2012 included Bangkok International Motor Show and Motor Expo, Turkey Expo in Mumbai, Singapore Air Show, and China (Beijing) Building Decoration and Materials Expo. For the Brand Signage and Visual Communication segment, PICO has become a preferred supplier for literally all major car brands in China and has successfully extended our foothold to other parts of the world through export to Europe and the Middle East. PICO has also successfully opened up new growth opportunities, capitalising on the refurbishment and rejuvenation of many districts in Beijing, as well as gaining new year-round contracts with chain stores including Costa Coffee, Yoshinoya restaurants and Xiabu Xiabu.

Geographically, Asia remains by far our strongest region for performance, while performance in other regions like Europe has been steadily improving. Greater China which comprises Hong Kong, Mainland China, Macau and Taiwan, accounted for 59.8% (2011: 53%) of the Group’s total turnover with the rest coming mainly from South Asia and the Middle East. In Europe, we managed to win several contracts for designing and creating a showcase and internet lounges for Acer at the London Olympics in the second half of this year.

Outlook

Looking forward, PICO’s business in China and Asia will continue to be a key growth driver for the remainder of the year. In the second half of the year, PICO will complete projects at the Yeosu Expo, which is one of the most spectacular events of 2012 for PICO. The expo is held in South Korea from May to August and PICO is responsible for delivering 11 theme and international pavilions. Besides Yeosu Expo, the Group will also complete projects at the London Olympics, the ITMA Asia in Shanghai, the Formula 1 Singapore Grand Prix, Singapore National Day, Singapore Army Open House, the Hong Kong International Art Fair, as well as a number of other events for new or repeat clients like Amway, Bloomberg, Bose, Goldman Sachs, Huawei, Lenovo, Panasonic, Porsche, Samsung, SEAT and ZTE.