Shenzhou International Group Holdings Limited · HKEX:2313
Shenzhou International — FY2014 Earnings Presentation
20 slides from Shenzhou International's earnings presentation, March 2015
Slide 1: Annual Results 2014
ANNUAL RESULTS 2014 MARCH, 2015
Slide 2: Agenda
Agenda Financial Highlights Business Review Strategies and Plans Open Forum
Slide 3: Financial Highlights
Shenzhou International - Group Holdings Limited FB i BPR SE 3 A BS” Financial Highlights
Slide 4: Financial Highlights
Financial Highlights (RMB '000) 2014 2013 % Change Turnover 11,131,532 10,047,217 10.8% Gross profit 3,226,621 2,838,683 13.7% Profit attributable to equity holders 2,065,867 1,802,989 14.6% Basic EPS (RMB) 1.48 1.32 12.1% Final dividend per share (HK$) 1.00 0.75 33.3% - Final dividend 0.65 0.55 18.
Slide 5: Sales Analysis
Sales Analysis Turnover Profit Attributable to Equity Holders (RMB million) (RMB million) 2065.9 11131.5 10047.2 1803.0 2013 2014 2013 2014 Sustainable sales growth amid challenging operating environment: - Robust growth in sportswear sales - Increased production capacity from Anhui factory and Ph
Slide 6: Profit Margins Analysis
Profit Margins Analysis Gross Profit Net Profit (RMB million) (RMB million) 3,300 30.0% 2,200 20.0% 29.0% 28.3% 3,000 27.0% 2,000 19.0% 18.6% 2,700 3226.6 2065.9 24.0% 1,800 17.9% 18.0% 2838.7 2,400 1803.0 1,600 17.0% 2,100 21.0% 2013 2014 2013 2014 NP NPM GP GPM Overall gross profit margin increa
Slide 7: Dividend and Payment Ratio
Dividend and Payment Ratio (HK$) 60% 1.2 53.40% 48.08% 46.55% 45.71% 45.73% 0.9 40% 0.35 31.35% 30.62% 29.97% 29.60% 0.20 0.6 0.20 20% 0.3 0.65 0.50 0.50 0.55 0.35 0.36 0.15 0.16 0.20 0.0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Final Dividend Special Dividend
Slide 8: Domestic and International Cotton Prices
Domestic and International Cotton Prices D o mes ti c C o tl o o k C o tl o o k c o tto n A 1% A sliding (328) c u s to ms d u ti es p ri c e d u ti es Unit price 12-Apr 19,351 16,050 16,551 (dollar/tonne) 12-May 18,731 13,116 14,181 43,000 12-Jun 18,164 13,113 14,179 12-Jul 18,323 13,428 14,411 40,
Slide 9: Turnover Breakdown by Products
Turnover Breakdown by Products Growth in sportswear sales was mainly attributable to the increasing orders from international sportswear brands and resumed growth from domestic customers Decrease in sales of casual wear was mainly due to the diminishing demand for casual wear in Japan and optimi
Slide 10: Turnover Breakdown by Regions
Turnover Breakdown by Regions Decrease in sales from the Japanese market was primarily due to the diminishing demand for imported casual wear in face of the depreciation of Japanese Yen Sales growth in the European market mainly attributable to 1) favorable tariff policies on garment products fr
Slide 11: Key Financial Indicators
Key Financial Indicators 2014.12.31 2014.06.30 2013.12.31 Inventory turnover days 116 125 110 Debtor turnover days 49 55 50 Creditor turnover days 20 23 20 2014.12.31 2014.06.30 2013.12.31 Gross gearing ratio 24.6 26.8 N/A (debt to equity) (%) Current ratio (times) 8.1 9.0 7.1 Cash and Cash Equivale
Slide 12: Business Review
.enzhou International roup Holdings Limited FH HH PS 32 BR BR” Business Review
Slide 13: Major Achievements in 2014
Major Achievements in 2014 Accelerating the establishment of vertically integrated overseas production • Phase I of the fabric production base in Tay Ning Province, Vietnam, commenced production in November 2014, with production gradually rising to the designed capacity • The Group has also commence
Slide 14: Major Achievements in 2014 (con't)
Major Achievements in 2014 (con’t) Reinforcing lean production management to mitigate rising labour costs • Improved utilization rate of raw materials • Reduced the consumption levels for electricity and steam per product unit • Productivity of employees improved in the second half of 2014 followed
Slide 15: Optimization of Product Structure
Optimization of Product Structure Sports wear customers Casual wear customers • Strengthened cooperation with key customers by prioritizing the allocation of production resources and reducing the orders the Group obtained from medium- to small-sized customers • Three renowned sports wear customers,
Slide 16: Retail Business Update
Retail Business Update • Prudent control over store expansion • Directly managed 38 stores in cities within the Yangtze River Delta region • Open 12 new stores in 2015
Slide 17: Strategies & Plans
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Slide 18: Future Strategies
Future Strategies Accelerate the establishment Enhance production of vertically-integrated efficiency and increase production and expand the equipment automation via scale of overseas production lean production management gradually Nike awards “Overall Factory Performance” & “Do the Right Thing”
Slide 19: The Group Holds a Cautiously Optimistic View on 2015 Prospects
Positive Negative Stable exchange rate of RMB Stringent against USD environmental protection policies Relatively low cotton prices Increasing wages VAT rebate New capacity from Customs duty new plants in Vietnam The Group Holds a Cautiously Optimistic View on 2015 Prospects
Slide 20: Open Forum
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Shenzhou International Group Holdings — FY2014 Earnings Presentation on 6ix