INVITATION to Exhibit / Visit
Multi-sector International Expo in Dongguan, China
(29~31 October 2015)
with
Federation of Indian Micro and Small & Medium Enterprises (FISME)
Also, visit
Canton Fair (3rd Phase), Guangzhou
INTRODUCTION:
Greetings from FISME (Federation of Indian Micro and Small & Medium Enterprises –www.fisme.org.in)
PARTICIPATION OPTION:
The participation is open for all i.e. MSMEs & Large Enterprises both from Manufacturing & Service Sector.
Join the delegation and participate as an exhibitor (Retail Sale allowed) at the Multi-sector International Expo in Dongguan, China, viz., Guangdong 21st Century Maritime Silk Road Expo 2015.
Two options:
a. After Exhibition in Dongguan come back on 1st Nov 2015
b. After Exhibition in Dongguan join as visitor at Canton Fair (Guangzhou); return on 2nd Nov 2015
ABOUT THE TOUR/VISIT:
The delegation would cover two exhibitions:
1. Multi-sector International Expo in Dongguan, China, viz., Guangdong 21st Century Maritime Silk Road Expo 2015 – as an exhibitor).
The exhibition had more than 1000 exhibitors last year and mainly exhibits Building decoration material, Engineering Machinery, Food & Agricultural products, Tea, Ceramics, Tourism & Cultural products.
However, we have negotiated special package for the Indian companies to exhibit both in terms of price and alsothe products that could be displayed.
Opportunities for Indian companies to exhibit (Retail Sale allowed) are:
– Textiles & Garments; Home Furnishings; Carpets & Rugs; Handicrafts
– Cosmetics; Wellness Products; Henna
– Tea; Spices & Food Products
– Apparel & Footwear
– Plastic & Rubber Products
– Decoration Material
– Information Technology Services & Products
– Tourism & Cultural products
– Engineering Machinery; Construction Machinery , Raw Materials &
Several Other Products
2. Canton Fair in Guangzhou (3rd phase – as visitor)
This is among one of the world’s largest exhibition and is held in three phases. The 3rdphase by and large coversTextiles & Garments, Footwear, Office Supplies, Medicines, Medical Devices, Health Products, Food products etc.)
Do visit the website viz., http://www.cantonfair.org.cn for detailed & updated information.
*SCHEDULE:
28th October 2015
Arrival in Guangzhou (28th October 2015)
Transfer to hotel in Dongguan (China) & thereafter to exhibition ground
Setting up of the booth
Dinner; Overnight at hotel
29th, 30th & 31st October 2015
Breakfast at hotel
Transfer to exhibition ground in Dongguan
Day at exhibition
Transfer back to hotel
Dinner
Overnight at hotel
1st November 2015
Breakfast
Transfer to Canton Fair in Guangzhou (Delegate who have opted for Option A
to depart for India)
Day at Canton Fair
Transfer back to hotel
Dinner
Overnight at hotel
2nd November 2015
Breakfast and check out
Transfer to Canton Fair in Guangzhou
Day at Canton Fair
Depart for Airport
Board flight for India
DELEGATE CHARGES:
Option A) – 5days/4nights. 5 star accommodation (no sharing)
– Rs 41,450/- inclusive of standard booth of 3M X 3M at exhibition in Dongguan, taxes, visa fee of Rs. 5,000 and whatever is mentioned in the inclusions below.
– Excluding air fare. Delegates need to book to & fro tickets for Guangzhou on their own)
Option B) – 6days/5nights. 5 star accommodation (no sharing)
– Rs 51,140/- inclusive of standard booth of 3M X 3M at exhibition in Dongguan, taxes, visa fee of Rs. 5,000 and whatever is mentioned in the inclusions below.
– Excluding air fare. Delegates need to book to & fro tickets for Guangzhou on their own)
** INCLUSIONS:
· Standard booth of 3x3m with table and chair (29th to 31st October 2015)
· Hotel accommodation for 5 nights on single occupancy (no sharing) including taxes
· Accommodation would be provided in a 5 star hotel
· Under option A, same accommodation but for 4 nights.
· Visa Charges
· As mentioned in the schedule or inclusions. What is not specified in the schedule or inclusions are not included and delegates have to bear the cost on their own.
EXCLUSIONS:
– Air tickets (to & fro Guangzhou to be booked by the delegates and at their own cost). The delegates are free to book their tickets on airlines of their choice. Also, they have the freedom to select departure city.
– If the delegates wish to extend the stay in China or stop in another country on the way back they can do so on their own and bear the cost). If the delegates need any assistance for booking the tickets the same would be provided by us (it may be noted that our date of hotel accommodation and schedule is fixed).
– Whatever is not mentioned in the schedule or inclusions above is all excluded and delegates have to bear the same on their own.
VISA:
Single entry
We would arrange for the invitation letter from China and also do the coordination with the Embassy/VFS. The decision to grant visa is taken by the officials of the Government of People’s Republic of China and FISME would not be responsible for any liability for refusal to grant visa to any delegate.
DEADLINE:
As you are aware that Canton is one of the world’s largest fair therefore the air fare and hotels tariff are bound to sky rocket very shortly. Therefore, it is advisable to provide us your confirmation immediately and book your tickets as soon as possible. Our rates are valid up to 5th September 2015 and any confirmation thereafter would be subject to the prevailing rate. However, companies who wish to take a booth in Dongguan should confirm to us by 28th August 2015.
CONFIRMATION & MODE OF PAYMENT:
Confirmation would be subject to availability and on receipt of Rs 10,000; balance to be paid by 27th September 2015. We would provide you with the banks details on hearing from you. (Kindly note, payment received is non-refundable).
We hope you would find the above in order and look forward to your participation. In the meantime, please feel free to contact us for any additional information / clarification that may be required in the matter.
Thanks and with best regards
Mukesh Kalra
Joint Secretary (International Trade)
Federation of Indian Micro and Small &
Medium Enterprises (FISME)
Pre-Summit News Release
India to host the ‘CALL TO ACTION SUMMIT 2015 – ending preventable child and maternal deaths’
New Delhi, August 20, 2015: The Ministry of Health and Family Welfare, today announced that India will host the global ‘CALL TO ACTION SUMMIT 2015 – ending preventable child and maternal deaths’, on August 27 – 28, 2015, in New Delhi. This Summit will be co-hosted with the Health Ministry of Ethiopia and in partnership with Bill & Melinda Gates Foundation the Tata Trusts, UNICEF, USAID, UK Aid and WHO. Other eminent guests invited are State Health Ministers from India, international academic experts, health practitioners and global leaders from diverse sectors – corporate, civil society and media.
Dr. Rakesh Kumar, Joint Secretary (Reproductive and Child Health), Ministry of Health and Family Welfare, Government of India, commenting on India’s progress says, “India has made progress in reducing child and maternal mortality over the years and we are committed to ensuring that the progress continues and the speed of change picks up momentum. We will focus on innovations that can be replicated and scaled up in other countries. This summit gives us the opportunity to learn from each other and give the support needed to mutually reach our goals and targets.”
The Summit will be a platform for 24 nations and the Summit partners to deliberate upon the importance of Systems, Partnerships, Innovations, Convergence, and Evidence in ending all preventable maternal and child deaths. Under these themes, key topics to be discussed are health financing, corporate partnerships, game-changing innovations, accountability; and intersecting areas such as water, sanitation, and nutrition that play a pivotal role in the success of program delivery and impact. The Summit format has been carefully prepared to enhance engagement and make strong impact. Interactive panel discussions, moderated by senior experts; an interactive ‘marketplace’ where countries showcase best practices and novel approaches that have yielded measurable results; and other innovative communication tools to leave a lasting impression on visitors and delegates.
Mr. C. K. Mishra, Additional Secretary and Mission Director, National Health Mission, Ministry of Health and Family Welfare, Government of India adds, “The Summit is a global platform for participatory panel discussions amongst experts, development partners and policy makers. Its format allows us to share innovations and best practices and to learn from each other in order to meet the common goal to end preventable child and maternal deaths.”
Commenting on public-private partnerships (PPP) in health, Ms. Kathryn D Stevens, Mission Director (A), USAID/India says that, “The Call to Action Summit demonstrates India’s leadership and commitment to ending preventable child and maternal deaths in India and around the world. We look to the Summit as a valuable opportunity to take stock of progress to date and to align global efforts dedicated to meeting this achievable goal.”
The Millennium Development Goals (MDGs) reach their deadline in December 2015 and ending preventable child and maternal deaths are two goals many countries in the world were unable to meet. The United Nations General Assembly session will adopt a new set of transformative and Universal Sustainable Development Goals (SDGs) in September 2015, as a part of the Post–2015 Development Agenda. This is a good time to examine the degree of success India and other countries have had in meeting the MDGs and to see what lessons can be included in the design and implementation of the SDGs to build upon the unfinished MDG agenda.
As far as India is concerned, we find that in 1990, India’s under-five mortality rate stood at 126 while the global average was 90. In 2013, India achieved an accelerated decline in its under-five mortality that dropped to 49 against a global average of 46, just 3 points away from the global figures. The annual rate of decline from 2008-13 has been 6.6%, indicating that India is closer to achieving its under-five mortality MDG target, if the current trend of decline continues. Similarly, India has been able to cut down its maternal mortality ratio from 560 in 1990 to 167 in 2013, which is much faster than the global averages of 310 in 1990 and 210 in 2013.
Mr. Girindre Beeharry, Country Director, Bill & Melinda Gates Foundation speaking on health innovations that are being implemented in maternal and child health believes that, “The MDGs have been catalytic in achieving significant global progress in maternal and child health, and the next 15 years offer an incredible opportunity to accelerate this momentum. To close the gap on preventable deaths, which disproportionately affect the most vulnerable, we need ambitious targets, backed by robust implementation plans, which are regularly tracked for performance.”
Mr. Louis-Georges Arsenault, UN Resident Coordinator and Representative, UNICEF is of the opinion that, “India has a strong government leadership in place and if India can continue to match the pace of policy changes with resource allocation and coverage at ground level, the change is imminent. In moving forward it will be very important to focus on the need for equity and ensure all interventions benefit all children and women everywhere in India. Making sure health services are delivered with quality and linking key areas of sanitation, nutrition and child development will be needed to achieve the best outcomes for women and children of India. If we can do so together, India will give the world one of the first big success stories in the SDG era.”
Mr. Arun Pandhi, Programme Director, Tata Trusts offers a valuable perspective, “The first 1000 days between conception and age 2 are the days when we lose most of our children to morbidity and death. It is imperative that all our initiatives are targeted to address this issue, combat malnutrition and anaemia in young mothers and the lack of quality antenatal care. The Call to Action summit provides a unique platform for different countries and stakeholders to share best practices and creates an opportunity for strategic partnerships to help generate sustainable solutions in overcoming these issues.”
1H15 – A GOOD START WITH POSITIVE TREND MOVING INTO SECOND HALF 2015
2Q15:
40% Y-O-Y INCREASE IN OPERATING PROFIT
75% Y-O-Y INCREASE IN NET OPERATING PROFIT
| 2Q15 MALAYSIA |
| · Revenue up 1% y-o-y
· Operating Profit up 40% y-o-y
· Net Operating Profit up 75% y-o-y
|
| · CASK down 11% y-o-y |
| · EBIT Margin of 18% (up 4ppt) |
| · EBITDAR Margin of 36% (up 5ppt) |
| · Passengers Carried up 7% y-o-y |
| · Capacity up 7% y-o-y |
| · Ancillary Income Per Pax
up 2% to RM46
|
LOW COST TERMINAL SEPANG, 20 August 2015 – AirAsia Berhad (“AirAsia” or “the Company”) today reported its results for the quarter ended 30 June 2015 (“2Q15”).
The Company posted quarterly revenue of RM1.32 billion, up 1% from the revenue reported in the same quarter last year. The strong revenue recorded was on the back of the 7% year-on-year (“y-o-y”) growth in the number of passengers carried at 5.95 million which is in-line with capacity growth, allowing the Company to record 80% load factor. This was despite the challenges faced following the absence of marketing activities in the first quarter due to the QZ 8501 incident which affected the forward sales in 2Q15 and removal of fuel surcharge.
With a much leaner cost structure and 158% increase in the share of results from associate as Thai AirAsia (“TAA”) was able to contribute back positively this quarter, AirAsia Berhad managed to record substantial increase in operating profit at RM243.47 million (up 40% y-o-y) and net operating profit of RM123.96 million (up 75% y-o-y). This led to a 5 percentage points (“ppts”) increase in EBIT margin which stood at 18%.
Following the unrealised foreign exchange loss on borrowings of RM43.59 million and one-off costs related to the sale of leaseback of aircraft, the Company recorded a profit after tax of RM243.03 million. The unrealised foreign exchange loss on borrowings is due to the adverse movement in the exchange rate on USD denominated borrowings. The foreign exchange loss is merely an accounting valuation which was the result of the changes in the closing forex y-o-y (RM:USD – 3.6717 as at 30 June 2015 as compared to RM:USD – 3.2298 as at 30 June 2014).
During the quarter under review, AirAsia Berhad posted Revenue per Available Seat Kilometre (“RASK”) of 14.56 sen (down 5% y-o-y). This was expected following the slight impact on the absence of marketing on 2Q15 forward sales and the removal of fuel surcharge starting from 26 January 2015 as the Company decided to pass on the benefit of lower fuel price to the consumers. This led to a slight drop in average fare at RM141 but ancillary income per pax however saw an increase of 2% y-o-y to RM46. If excluding fuel surcharge, RASK for 2Q15 would have been up 6% y-o-y.
AirAsia Berhad CEO, Aireen Omar said, “The decrease in RASK was anticipated following the impact of non-marketing activities in the first quarter on the forward sales in 2Q15 as well as the removal of fuel surcharge which resulted in lower average fare. However ancillary revenue as a whole has increased by 9% y-o-y with the highest contributor coming from baggage (up 2% y-o-y), followed by cargo (up 3% y-o-y) and insurance (up 45% y-o-y). Highest growth is seen in online advertising (up 733% y-o-y) and aircraft advertising (up 149% y-o-y). These led to the 2% increase in ancillary income per pax to RM46 this quarter.”
The Company’s cost, measured in terms of Cost per Available Seat Kilometre (“CASK”) was reported at 11.88 sen, down 11% y-o-y due to lower aircraft fuel expenses (down 13% y-o-y) on the back of 25% lower average fuel price at US$85 per barrel.
Aireen added, “The reduction in our operating expenses along with the increased contribution from associates were able to widen our RASK-CASK spread by a good 31% y-o-y allowing us to book good profitability this quarter – 40% increase in operating profit and 75% increase in net operating profit. This is why we continue to emphasise the importance of low cost in the Company, without ever compromising on safety.”
On balance sheet, Aireen highlighted, “The strategies we have set out previously to increase our cash and to reduce borrowings proved to be working. At the end of 2Q15, the Company’s total debt has reduced by 6% from the previous quarter and cash on the other hand has increased by 15% to RM1.84 billion following the sale and leaseback exercises on the ten aircraft in 2Q15 on top of growing cash from operations itself. This resulted in 0.26 points or 11% drop in the Company’s net gearing ratio to 2.21 times at the end of 2Q15.”
Thai AirAsia (“TAA”) posted revenue of THB6.90 billion in 2Q15, a substantial increase of 26% from the same period last year. Operating profit increased by 220% y-o-y to THB514.42 million from the operating loss recorded last year. This led the associate to post a 218% increase in profit after tax to THB374.19 million. AirAsia Group CEO, Tony Fernandes commenting on TAA’s performance, “TAA continued to post good numbers with triple digit growth in operating profit and profit after tax and contribute back positively to AirAsia Berhad. During the quarter they recorded 26% y-o-y increase in passenger numbers with 2ppt increase in load factor at 80%. Together with a slight increase in average fare, TAA managed to record a 5% increase in RASK at THB1.56. CASK reduced further by 10% y-o-y to THB1.45, due to 9% drop in fuel expenses.”
Indonesia AirAsia (“IAA”) recorded a revenue of IDR1,266.83 billion in 2Q15, down 16% y-o-y which is in-line with the 12% decrease in capacity and 18% decrease in the number of passengers carried. This was despite the average fare stayed flat y-o-y at IDR611,094 and ancillary income per pax increased by 16% to IDR168,858. Although overall cost reduced by 7%, in 2Q15, IAA recorded an operating loss of IDR395.21 million. Tony highlighted, “In 2Q15, the impact of the absence of marketing due to QZ 8501 in 1Q15 was still evident on the forward sales in 2Q15 which was expected. The introduction of floor price ruling on domestic flight was also a challenge hence that is why IAA will move its focus to international market where we are number one in terms of market share.” IAA’s RASK declined 18% y-o-y to IDR423.67 and its CASK was reported at IDR555.85, down 8% y-o-y driven by 24% lower aircraft fuel expenses, 7% decrease in user charges and 3% decrease in staff cost.
Philippines’ AirAsia (“PAA”) posted 6% increase in revenue at PHP2.32 billion in-line with the increase in passenger numbers with just 1% increase in capacity. This led to a 3ppts increase in load factor and a good 16% increase in RASK at PHP2.02 which was also contributed by ancillary which saw a 7% increase in ancillary income per pax at PHP448. CASK reduced substantially by 14% to PHP2.37 on the back of 38% decrease in fuel expenses, 24% decrease in staff cost and 28% decrease in aircraft operating lease expenses. Operating loss therefore reduced substantially by 68% to PHP403.65 million. Tony said, “This is another quarter of good turnaround progress for PAA. All the operating numbers are showing good development and the financials are moving on the right track towards profitability by end of the year. I am happy to see that the cost reduction exercise is doing very well and this will continue as we planned for more retirement of inefficient aircraft that was acquired together with the acquisition of Zest Air before.”
On the Group’s youngest affiliate, AirAsia India (“AAI”), Tony said, “We are small but we are a popular airline in India and we are growing fast. Loads are consistently high and in 2Q15 AAI recorded a load factor of 83% with 0.30 million passengers carried.” During the quarter, AAI posted revenue of INR1.15 billion and operating loss of INR413.02 million.
Outlook
Commenting on the Company’s outlook, Tony said, “The Malaysian operations will stand to benefit a lot from a better operating environment in the second half of 2015. Starting middle of August, there have been substantial of capacity reduction and route cancellations by other players on the routes that AirAsia operates in. We are also seeing positive trend in terms of fare which shows that the market is indeed becoming more rational. Demand from Chinese travelers has also recovered starting from May 2015 onwards and with fuel trending favourably for airlines, the stage is set for a good year end for the Company.”
Adding on the outlook of cost environment, he said, “As seen in 2Q15, we are beneficiary of the low fuel price. As of now, the Group has hedged 50% of its fuel requirement for 2015 at an average cost of USD88 per barrel on jet kero and remains unhedged for 2016.”
Tony added, “As mentioned before, strategies are in place and are being executed to drive our ancillary revenue up further. In 2Q15, we have started to introduce dynamic pricing which means offering different prices on existing ancillary products based on seasonality, routes and special promotions. We also launched our own fast track immigration clearance service for Premium Flex guests at klia2. On top of these, guests are now able to book their baggage, meals, ‘Pick A Seat’ and insurance through our AirAsia mobile app. There are more things to come in the second half of the year with empty seat options (extra seat), e-gift vouchers for guests to purchase, baggage and annual travel insurance, on-ground travel packages for a complete travel experience and more. This week we also just launched a brand new in-flight menu concept themed ‘Santan’ as part of AirAsia’s move towards being a high value carrier and providing our guests with an enhanced gourmet experience while flying. Duty free is also progressing well with increased pre-book items via in-path booking and on the recently launch of its new website in 2Q15 (www.bigdutyfree.com).”
Updating on capacity management for the Group and the Company’s focus on building cash, Tony said, “As promised, in 2Q15 we have seen our cash grew by 15% quarter-on-quarter (“q-o-q”) to RM1.84 billion. The Company’s total debt also reduced by 6% q-o-q which led to a 0.26 points decrease in net gearing to 2.21 times. This was on the back of the ten sale and leaseback (“SLB”) transactions that were executed during the quarter which allowed us to record cash upfront of USD44 million. To date, we have done thirteen SLBs, of which three were executed in the third quarter of the year, allowing the Company to record cash upfront of USD59 million in total so far.”
On the associates’ operations, Tony highlighted, “We will continue to see strong growth and numbers coming from TAA which will be taking the most number of aircraft among all AirAsia operations in the next couple of years. Increased China traffic in July and August during summer holidays will also boost travel demand. IAA will be removing four aircraft from its current total fleet of 29 aircraft starting August which will allow them to reduce cost significantly, operate at a more optimal capacity and improve aircraft utilisation. They will close a number of non-profitable routes and focus more on international market where we are number one, including to popular southern China destinations. The associate will also increase the number of agents and introduce more payment options to improve ease of purchase for guests. Load is now trending upwards to pre-QZ 8501 levels on sales campaigns and brand recovery efforts. PAA’s re-fleeting plan is on track where older aircraft that were acquired during the acquisition of Zest Air will be sold or targeted to be returned to third party lessors. This will help the associate to continue reduce its cost further. Network optimisation is in place and the number of agents will also be increased in the Philippines. AAI on the other hand will continue with its growth plan, adding in more aircraft to be based at its current two hubs in Benggaluru and Delhi. The new associate will work towards keeping its cost under check, with increased focus on ancillary revenue.”
Updating on the progress of capital raising in IAA and PAA, he said, “For IAA, the Management has presented a plan to the Transport Ministry there to sell perpetual bonds to take their financial position out of negative equity. However IAA was advised to issue non-voting Redeemable and Convertible Preference Shares (“RCPS”) instead. Shareholder’s resolution is being sought and application to Indonesia Investment Coordination Board will be submitted thereafter. AirAsia Berhad will subscribe to the RCPS by converting its receivables. IAA was given until September 2015 to execute the plan which is on track with a team consisting financial and legal advisers being formed to lead this exercise. Parallel to this, discussion with existing and potentially new shareholders regarding injection of capital is on-going with indicative interest of USD40 million. Work has been initiated on issuing USD150 million new convertible bonds (“CB”) which will be executed after the perpetual bonds exercise. We are in talks with a potential new investor and the due diligence exercise will kick-off soon. An investment bank has also been appointed.”
Tony added, “PAA is a bit more advance in terms of the capital raising progress. The plan for USD50 million equity injection has been tabled to the existing shareholders with positive response. On July 10th, the PAA board has approved to increase the authorised capital stock of the Company to PHP5 billion (USD110 million) in preparation for equity injection. The PAA board also agreed to the broad parameters on issuance of new CB for which the term sheet is currently being drafted. Discussion have already commenced with prominent Filipino investors on a potential investment in Philippines AirAsia.”
On the consolidation of accounts for the whole Group, the Board has attempted to seek approvals to consolidate the Group’s accounts, however regulatory constraints prevents the Company from presenting the figures based on two different accounting policies, i.e. to consolidate and to equity account.
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