San Neng Group Holdings Co., Ltd. · TWSE:6671
San Neng — Q1 2023 Earnings Presentation
88 slides from San Neng's earnings presentation, Mar 30, 2023
Slide 1: Sanneng Group Holdings Co., Ltd. 2023 Q1 Earnings Conference
Sanneng Group Holdings Co., Ltd. 2023 Q1 Earnings Conference March 30, 2023
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
1 Company Overview Agenda 2 Business Performance 3 Product and Market Introduction 4 R&D Results and Plans 5 Competitive Advantage Analysis 6 Future Prospects 2
Slide 4: Company Overview
Company Overview 3
Slide 5: SERS SOrS
SERS SOrS ee SFT EEE Be. RB. MA sopewesee $5 38, pe ta] al im) RE [Bl & El (i ap AGBARSRR | BAB AE ROE
Slide 6: Business Philosophy
Business Philosophy Professional is our service to customers. Integrity is our commitment to customers. Innovation is our responsibility to customers. 5
Slide 7: 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 Chairman and General Manager: 張瑞榮 (Mr. Ju
Slide 8: Company History
Company History San Neng Taiwan San Neng Japan San Neng San Neng Taiwan San Neng KY was San Neng Wuxi San Neng Wuxi San Neng Wuxi was founded in was established Indonesia was Setup A+ Industrial IPO in TWSE, invested Xin invested San got ISO 50001 Taichung Wuri established in innovative R&D plan Cod
Slide 9: Investment Structure
Investment Structure San Neng - KY CAYMAN (6671) 100% East Gain Investment Limited SAMOA 100% 100% 100% 100% San Neng San Neng Hong San Neng Japan San Neng Taiwan (TW) Kong (HK) (JP) Indonesia (ID) 100% San Neng Wuxi (WX) 55% 52.48% 100% Xin Neng Bakeware Squires Kitchen San Neng Guangzhou (XN) Suga
Slide 10: Board Composition
Board Composition Gender Structure The core of diversity 1 3 5 3 5 5 6 1 8 1 2 2 Male Female General Director Independent Director Baking Equipment Baking Utensils Baking ingredients Baking Product Accounting Law Production Quality R&D 9
Slide 11: Business Performance
Business Performance 10
Slide 12: 2022&2021 Consolidated Balance Sheets
2022&2021 Consolidated Balance Sheets In thousands of NTD Account Title\ Period 2022.12.31 2021.12.31 +/- +/- Ratio Cash 297,331 540,081 (242,750) -44.95% Amortized cost financial asset - current 287,402 19,053 268,349 1408.43% Accounts receivable 222,766 262,302 (39,536) -15.07% Inventories 280,882
Slide 13: 2022&2021 Consolidated Income Statement
2022&2021 Consolidated Income Statement In thousands of NTD Account Title \ Period 2022 Total 2021 Total +/- +/- Ratio Operation Revenue 1,861,962 2,067,136 (205,174) -9.93% Gross Profit 675,102 767,824 (92,722) -12.08% Gross Margin 36.26% 37.14% -0.88% -2.37% Operation Expense 479,965 518,836 (38,8
Slide 14: Revenues and EPS
Revenues and EPS 2,100,000 4.00 2,067,136 2,050,000 3.66 3.50 3.50 3.00 2,000,000 2.50 1,950,000 2.43 1,913,403 2.00 1,900,000 1,861,962 1.50 1,850,000 1.00 1,800,000 0.50 1,750,000 - 2020 2021 2022 營業收入 revenue EPS 13
Slide 15: Financial Ratios
Financial Ratios Projects 2020 2021 2022 Debt-to-asset ratio (%) 26.15 27.32 24.04 Financial Long-term capital accounts for real Structure estate, plant and equipment ratio (%) 192.51 201.30 208.85 Current ratio (%) Current ratio (%) 279.98 234.37 265.06 Debt-paying Ability Quick ratio (%) 211.33 16
Slide 16: Financial Ratios (Continued)
Financial Ratios (Continued) Projects 2020 2021 2022 Return on assets (%) 9.95 9.09 6.52 Return on shareholders' equity (%) 13.33 12.27 8.60 Ratio of operating profit to paid-in capital (%) 45.33 40.98 32.12 Profitability Ratio of pre-tax profit to paid-in capital (%) 46.82 42.05 33.68 Net profit ra
Slide 17: Six Major Categories
Six Major Categories Analysis of the revenue structure Analysis of the gross profit structure Year Year 2021 2022 2021 2022 Category Category Customized 28.88% 33.29% Customized 30.99% 28.21% Baking mold 38.35% 36.39% Baking mold 39.80% 39.96% Baking tools 23.93% 21.79% Baking tools 42.10% 43.30% Ho
Slide 18: Brands
Brands Analysis of the revenue structure Analysis of the gross profit structure Year Year 2021 2022 2021 2022 Brands Brands SN 91.16% 91.47% SN 37.62% 36.48% UN 1.77% 2.08% UN 35.84% 37.51% Agent Brands 7.07% 6.45% Agent Brands 31.40% 32.71% Total 100.00% 100.00% Total 37.14% 36.26% 17
Slide 19: Areas
Areas Analysis of the revenue structure Analysis of the gross profit structure Year Year 2021 2022 2021 2022 Areas Areas China 66.23% 65.60% China 38.02% 34.40% Taiwan 19.76% 19.39% Taiwan 34.85% 37.70% Asia 11.79% 12.77% Asia 37.18% 43.43% Europe, America Europe, America 2.22% 2.24% 31.32% 37.29% a
Slide 20: Product and market introduction
Product and market introduction 19
Slide 21: Taiwan Market
Taiwan Market Production value of Taiwan's baked NTD Billion and steamed food manufacturing industry 450 388 400 370 342 350 322 322 330 306 313 300 284 269 268 250 200 150 100 50 0 2012 2012年 2013 2013年 2014 2014年 2015 2015年 2016 2016年 2017 2017年 2018 2018年 2019 2019年 2020 2020年 2021 2021年 2022 202
Slide 22: Sales of China's Baking Industry
China Market Annual Amount Sales of China's Baking Industry growth rate (RMB 100 million) 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 烘焙行業規模(億元) 年成長率 Source: Zhiyan Consulting Group "2
Slide 23: Brands: B to B, B to C
Brands B to B B to C Brand Image: Brand Image: Professional / Quality Family/Heartwarming 22
Slide 24: Product Categories
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Slide 25: UNOPAN Products
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Slide 26: R&D Achievements & Future R&D Plans
R&D Achievements & Future R&D Plans 25
Slide 27: Patent Statistics
Patent Statistics As of Feb 28, 2023 Subsidiary Patent type Got Applying Subtotal 2023Q1 2022Q1 +/- Model patent 25 1 26 TAIWAN Design patent 3 0 3 37 25 12 Invention patent 5 3 8 Invention patent 10 10 20 Utility model CHINA 100 8 108 137 119 18 patent Appearance 9 0 9 patent Utility model 8 1 9 JA
Slide 28: R&D Achievements
R&D Achievements Annual R&D achievements R&D benefits Unibody Forged Cake Stand No Joints, would not hide dirt, and stronger Cake Mould Coating Baking cake smoothly, and easier to clean than anodization process Flexible Cake Cooling Rack Movable structure, easy to fold and store, save space. 2022 En
Slide 29: Unibody Forged Cake Stand
Unibody Forged Cake Stand Benefits: The cake stand has no joints, would not hide dirt and the strength is increased. 28
Slide 30: Cake Mould Coating
Cake Mould Coating Benefits: Baking cake smoothly, and easier to clean than anodization process. 29
Slide 31: Flexible Cake Cooling Rack
Flexible Cake Cooling Rack Benefits: Movable structure, easy to fold and store, save space. 30
Slide 32: Enamel Pan
Enamel Pan Benefits: High surface hardness, scratch resistance, easy to clean. 31
Slide 33: Silicone Mould
Silicone Mould Benefits: R&D independent, would replace imported products 32
Slide 34: Mille-Feuille Baking Pan
Mille-Feuille Baking Pan Benefits: Easy to operate and improves the efficiency of making puff pastry. 上盤 底盤 33
Slide 35: R&D Achievements
R&D Achievements Annual R&D achievements R&D benefits Long-lasting cold preservation, easy to whip the Condensation Whisk Bowl cream, and good molding effect. Metal and plastic are directly injection-molded, Unibody Whisk which can be directly boiled and sterilized without water. 2023 Reduce mold co
Slide 36: Condensation Whisk Bowl
Condensation Whisk Bowl Benefits: Long-lasting cold preservation, easy to whip the cream, and good molding effect. 35
Slide 37: Unibody Whisk
Unibody Whisk Benefits: Metal and plastic are directly injection-molded, which can be directly boiled and sterilized without water. 36
Slide 38: Splicing Laser Welding
Splicing Laser Welding Benefits: Reduce mold cost and increase market competitiveness. 37
Slide 39: Fiber-planted plastic products
Fiber-planted plastic products Benefits: Wood fiber is recycled and reused economically, reducing the use of plastic by 25%~30%. 38
Slide 40: R&D Plan
R&D Plan Development of anti-stick coating technology on the surface of next- generation food utensils Development of more energy-efficient baking utensils Surface hydrophobic treatment technology of steel plate and aluminum plate Product development of antibacterial plastics and plastic reduction p
Slide 41: 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 40
Slide 42: Comprehensive and stable distribution system
Comprehensive and stable distribution system Taiwan's domestic market base Northern Area Ⅱ Middle Area Ⅰ 南二區 44 北一區 81 南一區 37 Middle Area Ⅱ Northern Area Ⅰ 中二區 86 北二區74 中一區 52 Southern Area Ⅰ Southern Area Ⅱ 374 distributors across Taiwan 41
Slide 43: Comprehensive and stable distribution system (continued)
Comprehensive and stable distribution system (continued) China‘s domestic market base North China Area Ⅱ 電商 82 華東一區 45 華東二區 78 North China Area Ⅲ 華東三區 76 North China Area Ⅰ West China Area Ⅱ 華南二區 115 華西一區 62 East China Area Ⅲ East China Area Ⅰ West China Area Ⅰ 華西二區 18 East China Area Ⅱ 華北一區 65 Fuji
Slide 44: Industrial resource integration capability
Industrial resource integration capability 43
Slide 45: Certificate
CERTIFICATE The largest baking lesson consists of 500 participants and was achieved by Jiangsu Daddy ‘Sweety Catering Management Co., Ltd. and SANNENG (both China) in Suzhou, Jiangsu, China, on 1 August 2020 OFFICIALLY AMA n= 68 Oxc PH AK GH RMRTOR ‘Sit MG680KG LUSRRING, RE LGKTPUABE ZS jonal Manufa
Slide 46: HBG > Pedi at ALR Be bE
HBG > Pedi at ALR Be bE Professional Manufacturer of Bakery Equipment
Slide 47: Hare BANS
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Slide 49: Customized research and development capabilities
Customized research and development capabilities
Slide 50: Customized research and development capabilities
Customized research and development capabilities
Slide 51: Customized research and development capabilities
Customized research and development capabilities
Slide 52: IMIBS:
IMIBS: 682
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Slide 54: New product development leads the market
New product development leads the market 53
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Slide 59: Provide one-stop solution
Provide one-stop solution 59
Slide 60: Slide 60
Slide 61: Future Outlook
Future Outlook Catering market, coffee chain market Co-branded with chain store / famous bakers Committed to becoming a one-stop home baking solution provider Live Broadcast and Course E-commerce / agency operation Expand the Asian market Plastic reduction products, antibacterial products, new marke
Slide 62: Catering Market
Catering Market Due to the pandemic, the catering market decreased 2% in 2022. The sector is still the focus of market expansion in the future. 61
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Slide 65: Funny World's Bread
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Slide 67: Coffeeland
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Slide 68: Coffee Market
Coffee Market
Slide 69: Co-branded with chain store / famous bakers
Co-branded with chain store / famous bakers 68
Slide 70: Co-branded with chain store / famous bakers
Co-branded with chain store / famous bakers 69
Slide 71: Live broadcast and Course
Live broadcast and Course Live broadcast • Live broadcast is the most mentioned marketing method in 2021. Sanneng actively participates in and executes live broadcast, and has benefited a lot from it . • At present, it also develops and provides live broadcast solutions for many brother companies 70
Slide 72: Course
Course • Not only provide a one-stop shopping scene for baking, we regularly develop some teaching courses for customers, including online and offline courses. • Current partner colleges: • 叁拾而立烘焙學院 • 麵包研修社 • 王森西點烘焙學院 71
Slide 73: E-commerce: Wuxi Sanneng e-commerce sales
E-commerce Wuxi Sanneng e-commerce sales Unit: RMB Thousand dollars Category 2021 2022 Operating income 350,468 301,946 Own platform (online shop) 19,086 14,356 Percentage of revenue 5% 5% E-commerce (dealer) 36,114 37,480 Percentage of revenue 10% 12% Total proportion 16% 17% 72
Slide 74: E-commerce: Taiwan Sanneng e-commerce sales
E-commerce Taiwan Sanneng e-commerce sales Unit: NTD Thousand dollars Category 2021 2022 Operating income 498,368 408,222 Own platform (online 9,205 13,424 shop) Percentage of revenue 2% 3% E-commerce (dealer) 51,259 40,582 E-commerce (others) 3,368 1,419 Percentage of revenue 11% 10% Total proporti
Slide 75: Operation Agency & Broadcast Output
Operation Agency & Broadcast Output • Existing team help Nanchow to operate its flagship store to increase income. • Live broadcast team output, use existing team and fan resources to broadcast simultaneously to increase operating income and increase the added value of fans 74
Slide 76: Operation Agency Model
Operation Agency Model Take advantage of platform to integrate resources
Slide 77: Expanding the Asian market
Expanding the 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 Sanneng Indonesia Northward：Expl
Slide 78: Taiwan Baking Consultancy Service
Taiwan Baking Consultancy Service Improve the level of Asian baking technology and create a baking ecosystem 77
Slide 79: Plastic reduction products, antibacterial products, new market expansion
Plastic reduction products, antibacterial products, new market expansion 78
Slide 80: Plastic reduction products
Plastic reduction products Annual plastic use of 222 metric tons of plastic produces about 600 tons of carbon dioxide 79
Slide 81: 80
80
Slide 82: Antibacterial Products
Antibacterial Products Food safety upgrade Antibacterial products
Slide 83: New Market Expansion
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Slide 86: Mobigarden Kitchenaxs
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Slide 87: ABs
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Slide 88: Thank You
Thank You 87
Sanneng Group Holdings — Q1 2023 Earnings Presentation on 6ix