San Neng Group Holdings Co., Ltd. · TWSE:6671
San Neng — Q4 2024 Earnings Presentation
70 slides from San Neng's earnings presentation, Dec 12, 2024
Slide 1: 2024 Q4 Earnings Conference
Sanneng Group Holdings Co., Ltd. 2024 Q4 Earnings Conference Based on Taiwan, Deep in Asia, and Go global ! Reporter: CEO Hsiao, Kai-Feng CFO Chen, Liu-Yu Dec. 12, 2024
Slide 2: Disclaimer
Disclaimer The information contained in this presentation, including all forward looking information, is subject to change without notice, whether as a result of new information, future events or otherwise, and Sanneng Group Holdings Co., Ltd. (the “Company”) undertakes no obligation to update or re
Slide 3: Agenda
Agenda 1 Company Overview 2 Business Performance 3 Competitive Advantage Analysis 4 Future Prospects 2
Slide 4: Company Overview
1 Company Overview 3
Slide 5: Corporate Culture
Corporate Culture Become the leading brand of professional, service and Vision trustworthy food ware in Asia Promoter of safety, environmental protection, energy Mission saving and carbon reduction of food ware Values Professionalism, integrity, innovation (Business philosophy) Purpose Improve the l
Slide 6: Company Information
Company Information San Neng - KY was established in Apr 2015 • 1982/06 – San Neng Taiwan • Squires Kitchen Jul. 2017 • 2000/08 – San Neng Wuxi • Xin Neng Wuxi Apr. 2019 • 2010/08 – San Neng Japan • San Neng Guangzhou Jan. 2022 • 2015/11 – San Neng Indonesia • 2024/02 – San Neng Indonesia Industry C
Slide 7: Investment Structure
Investment Structure San Neng - KY CAYMAN (6671) 100% East Gain Investment Limited SAMOA 100% 100% 100% 100% 100% San Neng San Neng Hong San Neng Japan San Neng San Neng Industry Taiwan (TW) Kong (HK) (JP) Indonesia (ID) Indonesia (ID) 100% San Neng Wuxi (WX) 59.78% 52.48% 100% Xin Neng Bakeware Squ
Slide 8: Our Brands
Our Brands B to B market B to C market B to B market B to B/C market Professional Family/ Premium / Beautiful Life / Quality Heartwarming Professional 7
Slide 9: Our Products
Our Products Main products: R&D, manufacturing and sales of various baking and food utensils products Baking Baking Customized Moulds Tools Food Homeware & Others 8
Slide 10: Our Products
Our Products Baking Moulds Baking Trays, Loaf Pan, Cake Mould, Pie Pan, Mousse Rings…. Baking Tools Whisks, Bowls, Knives, Brushes, Cake Stands… 9
Slide 11: Our Products: Home Products
Our Products Home Products 10
Slide 12: Our R&D Capacity
Our R&D Capacity As of Nov. , 2024 Area Patents and R&D Achievements • A total of 50 patents • San Neng Taiwan secured Taichung City Small Business Innovation Research (SBIR) Subsidy. Taiwan • San Neng Taiwan secured Ministry of Economic Affairs’ Low Carbon and Smart Upgrading and Transformation Pro
Slide 13: Business Performance
— BERG » Lo uiaS AES Bs @ #e : Professional Manufacturer of Bakery Equipment @ Business Performance 12
Slide 14: 2024&2023 Q3 Consolidated Balance Sheets
2024&2023 Q3 Consolidated Balance Sheets In thousands of NTD Account Title\ Period 2024.09.30 2023.09.30 +/- +/- Ratio Cash 534,671 253,882 280,789 110.60% Amortized cost financial asset - current 69,310 446,798 (377,488) -84.49% Accounts receivable 204,252 232,282 (28,030) -12.07% Inventories 309,0
Slide 15: 2024&2023 Q3 Consolidated Income Statement
2024&2023 Q3 Consolidated Income Statement In thousands of NTD Account Title \ Period 2024 Q3 2023 Q3 +/- +/- Ratio Operation Revenue 1,464,662 1,403,625 61,037 4.35% Gross Profit 549,713 534,874 14,839 2.77% Gross Margin 37.53% 38.11% -0.58% -1.52% Operation Expense 396,421 374,649 21,772 5.81% Net
Slide 16: Historical operating performance
Historical operating performance 2,500,000 250,000 2,000,000 200,000 1,500,000 150,000 1,000,000 100,000 500,000 50,000 0 0 2019Q4 2020Q4 2021Q4 2022Q4 2023Q4 2023Q3 2024Q3 營業收入(Revenue) 1,895,403 1,913,403 2,067,136 1,861,962 1,905,839 1,403,625 1,464,662 本期淨利( Net Profit After Tax) 187,793 220,416
Slide 17: Historical Financial Performance and Dividend Policy
Historical Financial Performance and Dividend Policy 4.00 96.46% 100% 3.66 3.50 85.71% 86.51% 90% 3.50 81.97% 82.30% 3.11 3.00 3.00 3.00 80% 3.00 2.89 70% 2.50 2.43 2.50 2.19 60% 2.00 2.00 50% 40% 1.50 30% 1.00 20% 9.77% 0.50 6.42% 6.12% 5.01% 6.10% 10% - 0% 2019Q4 2020Q4 2021Q4 2022Q4 2023Q4 2024Q3
Slide 18: Financial Ratios
Financial Ratios Projects 2022 2023 2024 Q3 Debt-to-asset ratio (%) 24.04 22.19 22.00 Financial Long-term capital accounts for real Structure estate, plant and equipment ratio (%) 208.85 220.46 215.22 Current ratio (%) Current ratio (%) 265.06 291.38 278.45 Debt-paying Ability Quick ratio (%) 193.55
Slide 19: Financial Ratios (Continued)
Financial Ratios (Continued) Projects 2022 2023 2024 Q3 Return on assets (%) 6.52 8.22 8.20 Return on shareholders' equity (%) 8.60 10.49 10.40 Ratio of operating profit to paid-in capital (%) 32.12 36.29 33.64 Profitability Ratio of pre-tax profit to paid-in capital (%) 33.68 42.00 38.55 Net profit
Slide 20: Six Major Categories
Six Major Categories Analysis of the revenue structure Analysis of the gross profit structure Year Year 2023 Q3 2024 Q3 2023 Q3 2024 Q3 Category Category Customized 30.96% 34.07% Customized 30.89% 31.64% Baking mold 39.90% 39.15% Baking mold 40.08% 39.48% Baking tools 22.27% 20.68% Baking tools 44.1
Slide 21: Areas
Areas Analysis of the revenue structure Analysis of the gross profit structure Year Year 2023 Q3 2024 Q3 2023 Q3 2024 Q3 Areas Areas China 68.24% 66.12% China 36.31% 35.23% Taiwan 16.22% 16.03% Taiwan 38.78% 39.84% Asia 13.11% 14.98% Asia 45.90% 44.38% Europe, America 2.42% 2.87% Europe, America 41.
Slide 22: Competitive Advantage Analysis
3 Competitive Advantage Analysis 21
Slide 23: Competitive Advantage Analysis
Comprehensive and Industrial resource stable integration capability distribution system Competitive Advantage Analysis Customized New product research development and leads the market Development capabilities Provide a complete solution 22 22
Slide 24: 1. Comprehensive and stable distribution
1. Comprehensive and stable distribution Taiwan's domestic market base Northern Area Ⅱ 南二區 42 Middle Area Ⅰ 北一區 78 南一區 40 Middle Area Ⅱ 中二區 84 北二區 71 Northern Area Ⅰ 中一區 56 Southern Area Ⅰ Southern Area Ⅱ 371 distributors across Taiwan As of Nov. , 2024 23
Slide 25: China's domestic market base
China‘s domestic market base North China Area Ⅱ 電商84 華東一區 49 華東二區 83 華南二區 125 North China Area Ⅲ 華東三區 79 North China Area Ⅰ West China Area Ⅱ 華西一區 68 East China Area Ⅲ East China Area Ⅰ West China Area Ⅰ 華西二區 21 East China Area Ⅱ 華北一區 66 Fujian 華南一區 156 華北二區 47 South China Area Ⅱ 華北三區78 856 distribu
Slide 26: 2. Industrial resource integration capability
2. Industrial resource integration capability Well-known brands in the baking industry 25
Slide 27: Co-branded with chain store / famous bakers
Co-branded with chain store / famous bakers 26
Slide 28: Industrial alliance co-branding
Industrial alliance co-branding 27
Slide 29: World Bread Champion Chef Strategy Alliance
World Bread Champion Chef Strategy Alliance 28
Slide 30: 3. Customized research and development capabilities
3. Customized research and development capabilities
Slide 31: Customized R&D: Fast Food Tray
3. Customized research and development capabilities Fast Food Tray
Slide 32: 3. Customized research and development capabilities
3. Customized research and development capabilities 31
Slide 33: Starbucks customized products
3. Customized research and development capabilities Starbucks customized products 32
Slide 34: JBCW Customized-Grilled Fish Plate
3. Customized research and development capabilities JBCW Customized-Grilled Fish Plate
Slide 35: 4. New product development leads the market
4. New product development leads the market Dessert Spoon 58 34
Slide 36: 4. New product development leads the market
4. New product development leads the market Carving knife/paring knife 35
Slide 37: iFREE GROUP Transformers Burger Mould
4. New product development leads the market iFREE GROUP～Transformers Burger Mould 36
Slide 38: Disneyland Burger Moulds
Disneyland~Groot Burger Mould Disneyland~Iron Man Burger Mould 37
Slide 39: Cloud Shape Loaf Pan
4. New product development leads the market Clould Shape Loaf Pan 38
Slide 40: 5. Provide complete solutions - diagnostic services
5. Provide complete solutions - diagnostic services Baguette Stacking Problem－ Rimless Baguette No borders, easy to stack, save space; Reduce weight and save costs; Reduce the accumulation of dirt and evil; Easy to clean and better demolding
Slide 41: Slant baking pan
The labor-intensive problem of product removal － Slant baking pan 40
Slide 42: Future Outlook
BRE > Peviteet A eT Be 3 J Future Outlook Professional Manufacturer of Bakery Equipment 41
Slide 43: Future Outlook
Future Outlook 3. Channel aspect • Live broadcast (course) • we media • operating Agency 2. Industry aspect 4. Product aspect • Catering Products • In Line with ESG • Outdoor Products Principles • Trends of the Times 1. . R&D aspect 5. Market aspect • In Compliance with • Expanding the Laws and Regu
Slide 44: 1. R&D aspect-future R&D plan
1. R&D aspect-future R&D plan 01 • Development of next-generation anti-stick coating technology for surface of food utensils Surface • PVD titanium plating process application development Treatment • Replace sandblasting process development • Surface hydrophobic treatment technology of steel plates
Slide 45: 2. Industry Aspect--Catering/Outdoor Products
2. Industry Aspect--Catering/Outdoor Products Catering Market 44
Slide 46: 2. Industry Aspect--Catering/Outdoor Products
2. Industry Aspect--Catering/Outdoor Products 45
Slide 47: 2. Industry Aspect--Catering/Outdoor Products
2. Industry Aspect--Catering/Outdoor Products
Slide 48: Manual Coffee Brewing Equipment - Main Product
Manual Coffee Brewing Equipment - Main Product Manual Coffee Grinder Latte Art Milk Pitcher Pour Over Kettle Coffee Server Clever Dripper Filter Paper Coffee Cup Digital Scale 47
Slide 49: Manual Coffee Brewing Equipment - Accessory Products
Manual Coffee Brewing Equipment - Accessory Products Thermometer Dripper Stand Coffee Scoop Air Blower Cupping Spoon Coffee Bean Canister 48
Slide 50: From the heart, everywhere is home.
從心出發 到哪裡都是家 From the heart, everywhere is home.
Slide 51: Products sale in the outdoor market
2. Industry Aspect--Catering/Outdoor Products Products sale in the outdoor market 50
Slide 52: Slide 52
Slide 53: 3. Channel aspect—Live broadcast (course)
3. Channel aspect—Live broadcast (course) • Sanneng actively participates in and executes the live broadcast (such as Tmall and Tiktok etc.) and we media (such as wechat, Tiktok Xiaohongshu etc.) through SK Company. • Currently, we also develop and provide live broadcast solutions for many alliance
Slide 54: 3. Channel — we media
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Slide 55: 3. Channel — we media
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Slide 56: 3. Channel — Operating Agency
3. Channel — Operating Agency Operating Agency by SK Company Increase operating income and the added value of fans 55
Slide 57: 4. Product aspect—products and processes in line with ESG trends
4. Product aspect—products and processes are in line with ESG trends 56
Slide 58: 4. Product aspect—products and processes in line with ESG trends
4. Product aspect—products and processes are in line with ESG trends flocked fiber products wood fiber powder Oyster shell powder coffee grounds Annual plastic use of 222 metric tons of plastic produces approximately 600 tons of carbon dioxide 57
Slide 59: Energy-saving products-low sugar toast mold
4. Product aspect—products and processes are in line with ESG trends Energy-saving products-low sugar toast mold
Slide 60: Non-stick treatment process
4. Product aspect—products and processes are in line with ESG trends Non-stick treatment process Environmental protection Recoating Process Coating Backside New Frontside Backside Removal Cleaning Coating 59
Slide 61: 4. Product aspect—products and processes in line with ESG trends
4. Product aspect—products and processes are in line with ESG trends SANNENG Professional in Bakeware Chinese Grill Fish Pan Korean BBQ grid 60
Slide 62: 5. Market aspect – expanding the Southeast Asian market
5. Market aspect – expanding the Southeast Asian market Korea Based on Taiwan, deep in Asia, and China Japan go global! Asia Layout Thailand Philippines Westward：Strengthen industrial resource cooperation and jointly serve major customers Malaysia Southward：Gradually expand ASEAN market based on San
Slide 63: Indonesia factory location
5. Market aspect – expanding the Southeast Asian market Location： Rent an existing factory in Solo, Jawa Tengah, Indonesia. Factory area is approximately 2,400㎡=726 Taiwanese ping.
Slide 64: Baking Tray and Loaf Pan Production Lines
• Baking Tray Production Line • Loaf Pan Production Line 63
Slide 65: Non-stick Production Line - Sandblasting Equipment
• Non-stick Production Line - Sandblasting Equipment Manual Sandblasting Machine Automatic Sandblasting Machine 64
Slide 66: Non-stick Production Line - Spray Coating Equipment
• Non-stick Production Line - Spray Coating Equipment Manual Spray Coating Automatic Spray Coating Robot 65
Slide 67: Non-stick Production Line - Baking Equipment
• Non-stick Production Line - Baking Equipment Automatic Continuous Baking Machine (32 m) Box Furnace 66
Slide 68: > Peta LMP eT BES
> Peta LMP eT BES 67
Slide 69: ABs
ABs RmBARSEKR RABI RE AO HES
Slide 70: Thank You
Thank You 69
Sanneng Group Holdings — Q4 2024 Earnings Presentation on 6ix