Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — Xiwang Sugar Holdings Company — FY2010 Earnings Presentation
32 slides from Xiwang Property's earnings presentation, Mar 30, 2011
Slide 1: Xiwang Sugar Holdings Company Limited 2010
AX Xiwang Sugar Holdings Company Limited = 2010
Slide 2: Contents
Contents • Results Highlights • Financial Review • Outlook and Development • Appendix 2
Slide 3: 2010 Results Highlights
2010 Results Highlights • Revenue: RMB 3.26 billion, up 31% Net Profit: RMB 210 million, up 107% Overall GPM: 14.5%, up 1.7% points • Crystalline glucose recorded substantial growth in BOTH sales volume and selling price • Corn cost: ↑ 19% yoy Crystalline glucose ASP: ↑ 27% yoy Fructose-glucose syru
Slide 4: Summary Income Statement
Summary Income Statement 2010 2009 Increase RMB million Revenue 3,257 2,481 31% Gross profit 472 317 49% Operating profit 293 172 70% Profit before tax 215 116 86% Net p profit 210 102 107% % RMB Basic EPS 0.21 0.12 75% Dividend per share Nil 0.037 NA Gross profit margin 14 5% 14.5% 12 8% 12.8% 1 7%
Slide 5: Liquidity, Capital resources and Gearing Ratio
Liquidity, Capital resources and Gearing Ratio 31 Dec 2010 31 Dec 2009 RMB million Cash and cash equivalents 549 778 Total borrowings 1,565 2,129 Net current assets/ (liabilities) 792 (163) Total equity 1 966 1,966 1 473 1,473 Current ratio 1.67 0.93 Gearing ratio 0.52 0.92 Current ratio = total cur
Slide 6: Revenue by Products
Revenue by Products 2010 2009 Sodium Others, 1.8% Sodium Others, 5.1% gluconate, 13.0% gluconate, 7.5% Corn starch , 5.5% Corn starch , Crystalline 14.1% Crystalline glucose, 48.0% glucose, 42.3% Corn germ, 8.8% Corn germ, 9.4% Corn gluten feed, 6.7% Corn gluten meal, Corn gluten feed, Crystalline 7
Slide 7: Revenue by Geography
Revenue by Geography 2010 2009 Overseas, Overseas, 13% % 12% China 87% China, China 88% China, 7
Slide 8: Financial Review
Financial Review 8
Slide 9: Review of Key Products Performance in 2010
Review of Key Products Performance in 2010 • Crystalline glucose – Favorable market of strong g demand and tight g supply pp y – Upward trend of white sugar price supported the price increase of our glucose • Crystalline fructose – Engaged in initial development of fructose market in China – More di
Slide 10: Sales Volume
Sales Volume Tonne 2010 2009 Increase/ (Decrease) Starch sugars: Crystalline glucose 517,801 442,583 17% Crystalline fructose 6,636 809 720% Fructose-glucose syrup 119,919 33,791 255% Corn co-products and others: Corn gluten meal 56,851 62,229 (9%) Corn gluten feed 184 839 184,839 204 725 204,725 (1
Slide 11: Average Selling Price
Average Selling Price RMB per tonne (Tax-inclusive) 2010 2009 Increase/ (Decrease) Starch sugars: Crystalline glucose 3,531 2,775 27% Crystalline fructose 7,477 8,543 (13%) Fructose-glucose syrup 2,434 2,053 19% Corn co-products and others: Corn gluten meal 4,833 4,792 1% Corn gluten feed 1 179 1,17
Slide 12: Cost of Goods Sold
Cost of Goods Sold 2010 2009 Other raw materials, 6% Other raw materials, 4% Utilities, 12% Utilities, 12% Depreciation, Depreciation, 3% 4% Labor 2% Labor, Labor, 2% Corn, 74% Others, 3% Corn, 76% Others, 2% 2010 2009 Increase Average corn cost (tax-inclusive): RMB 1,910 per tonne RMB 1,600 per ton
Slide 13: Gross Profit Margin
Gross Profit Margin 2010 2009 Increase/ (Decrease) Starch sugars: Crystalline glucose 20.6% 16.6% 4.0 Crystalline fructose 24 0% 24.0% 33 4% 33.4% (9 4) (9.4) Fructose-glucose syrup 13.9% 16.7% (2.8) Corn co-products and others: Corn gluten meal (12.0%) 5.0% (17.0) Corn gluten feed 6.5% 14.8% (8.3)
Slide 14: Outlook and Development
Outlook and Development 14
Slide 15: The Sugar Market
The Sugar Market Natural Sugar White sugar Starch sugar • Raw material: Sugar cane and sugar beet • Raw material: Corn • Disaccharide, (C6H12O6 )2 • Monosaccharide, C6H12O6 • Sweetness : 1 1.0 0 (as reference) • Sweetness : 0 0.7 7 – 1.8 18 • Reasons for use: Relatively easy production • Reasons for
Slide 16: Demand and Supply of Sugar in China
Demand and Supply of Sugar in China Demand: Ê Sugar is mainly used to provide a sweet taste Starch sugar from corn, Ê 2011: 14.8 million tonnes+ 12.7% Supply: White sugar import, 11.5% Ô White sugar output : slightly below 12 million tonnes White sugar Ô Starch sugar output: approx. 2 million tonnes
Slide 17: Price Trend of Corn, Corn Starch, Glucose and White Sugar in China
Price Trend of Corn, Corn Starch, Glucose and White Sugar in China RMB/ tonne 8,000 Whit sugar White 7,000 6,000 5,000 4,000 Glucose 3,000 Corn starch 2,000 Corn 1,000 - 01/2006 04/2006 07/2006 10/2006 01/2007 04/2007 07/2007 10/2007 01/2008 04/2008 07/2008 10/2008 01/2009 04/2009 07/2009 10/2009 01
Slide 18: Supply and Demand of Glucose in China
Supply and Demand of Glucose in China Major events: • NDRC’s policy in Sept 2007 to restrict corn processing expansion • Output reduced in 2009 as a result of melamine scandal in Q3 2008 • Demand driven by F&B and pharmaceutical industries • Conclusion: strong demand AND tight supply Xi Xiwang S Sug
Slide 19: Sugar Market Long-term Prospective
Sugar Market Long-term Prospective Supply-side: Agricultural A i lt l lland d available il bl ffor expansion i iis lilimited it d Government policy on limiting industrial corn consumption remains intact Demand-side: F&B: - Production of sugar-containing food increased 20%+ in 2010 by volume
Slide 20: Our Starch Sugars Product Mix
Our Starch Sugars Product Mix Crystalline HFCS Crystalline Oligosaccharide glucose fructose Form and constituent Crystalline form Crystalline-form Syrup Crystalline form Solid or liquid Pure glucose Mixture of fructose and Pure fructose Three to ten glucose monosaccharides link together Sweetness 0.
Slide 21: Key Drivers for Functional Sugars
Key Drivers for Functional Sugars Population • Population growth – 2008: 1.32 billion Ö 2015: 1.40 billion • Urban population: – 2008: 45% Ö 2015: >50% (Source: National Population and Family Planning Commission) Emerging wealthy middle-class • 23% of national population • g y food More intake of su
Slide 22: Appendix
Appendix 22
Slide 23: Who Are We?
Who Are We? A “Sugar” g company p y We produce functional starch sugars from corn A glucose giant L Largestt glucose l producer d in i China Chi A fructose pioneer Onlyy fructose f producer p in China Diversity of products applications c Glucose for F&B, fermentation d Fructose ffor F&B, pharmaceuti
Slide 24: Overview of Corn Processing Industry
Overview of Corn Processing Industry Basic Refinery - Separation of corn to obtain the major components Starch Starch Gluten Fiber Germ Deep Processing - Technological processing of starch to become higher values products Starch Sugars Sugar Alcohols (Polyol) Bio-products Fermented Products Glucose
Slide 25: Our Circular Economy and Production Capacity
Our Circular Economy and Production Capacity Starch Plant Process max. 1.5 million tonnes of corn to obtain : ． Corn gluten meal ． Corn gluten feed ． Corn g germ ． Corn starch Corn Storage Capacity 500,000 tonnes Used water is recycled Sodium Gluconate Production Facility Sewage Treatment Facility 1
Slide 26: Key Events and Financials
Key Events and Financials Melamine scandal & Capacity financial IPO expansion tsunami New products 12/05 12/06 12/07 12/08 12/09 12/10 Revenue (RMB million) 1 038 1,038 1 385 1,385 2 062 2,062 2 544 2,544 2 481 2,481 3 257 3,257 Gross profit margin 25.2% 26.4% 22.5% 8.6% 12.8% 14.5% EBITDA (RMB mill
Slide 27: Sales Volume
Sales Volume Tonnes 1H 2007 2007 1H 2008 2008 1H 2009 2009 1H 2010 2010 Starch Sugars: • Crystalline glucose 207,715 481,135 250,543 485,975 198,959 442,583 238,777 517,801 • Crystalline fructose Nil Nil Nil Nil Nil 809 1,143 6,636 • Fructose-glucose Fr ctose gl cose s syrup r p Nil Nil Nil Nil 14 4
Slide 28: Average Selling Price
Average Selling Price RMB per tonne 1H 2007 2007 1H 2008 2008 1H 2009 2009 1H 2010 2010 (tax-inclusive) Starch Sugars: • Crystalline glucose 2,686 2,698 2,823 2,740 2,537 2,775 3,532 3,531 • Crystalline fructose NA NA NA NA NA 8,543 7,806 7,477 • Fructose-glucose syrup NA NA NA NA 2,087 2,053 2,252
Slide 29: Corn Gross Profit Margins
Corn 1H 2007 2007 1H 2008 2008 1H 2009 2009 1H 2010 2010 Volume of corn processed 450,000 971,000 597,000 1,130,000 548,000 1,150,000 618,000 1,230,000 ( (Tonnes) ) Corn cost 1,386 1,360 1,680 1,680 1,520 1,600 1,900 1,910 (RMB per tonne, tax-inclusive) Gross Profit Margins 1H 2007 2007 1H 2008 2008
Slide 30: 5-year Summary Statement of Financial Position
5-year Summary Statement of Financial Position (RMB million) 2006 2007 2008 2009 2010 Current assets 910 1,271 1,041 2,184 1,976 Non-current assets 1,285 1,507 1,656 1,826 2,005 Total assets 2,195 2,778 2,697 4,010 3,981 Current liabilities 360 507 1,329 2,347 1,184 Non-current liabilities 664 847 N
Slide 31: Forward-looking Statement and Disclaimer
Forward-looking Statement and Disclaimer The information provided to you in this presentation contains forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These statements relate to events that involve known and unknown risks, uncertainties and other
Slide 32: Contact
Contact Xiwang Sugar Holdings Company Limited Unit 1508-09, 15th Floor, Great Eagle Centre 23 Harbour Road, Wanchai Hong Kong Investor Relations and Corporate Communications Department Ms. Gisele Suen Email : ir@xiwang-sugar.com.hk Phone o e:33104 0 05 05766 Company Website www.xiwang-sugar.com 32
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