Shenzhou International Group Holdings Limited · HKEX:2313
Shenzhou International — FY2021 Earnings Presentation
27 slides from Shenzhou International's earnings presentation, March 2022
Slide 1: Annual Results 2021
ANNUAL RESULTS 2021 March 2022
Slide 2: Financial Highlights, Business Review, Future Strategic, Open Forum
Financial Highlights Business Review Future Strategic Open Forum
Slide 3: Financial Highlights
-< Shenzhou International —— Group Holdings Limited FA ON El BR Se M3 AR BR a] Stock Code AR HAS: 2313 Financial Highlights
Slide 4: Financial Highlights
Financial Highlights (RMB '000) 2021 2020 Change Turnover 23,845,006 23,030,648 3.5% Gross profit 5,789,647 7,194,608 (19.5%) Profit attributable to equity holders 3,371,702 5,106,736 (34.0%) Basic EPS (RMB) 2.24 3.40 (34.1%) Total dividend(HK$) 1.63 2.00 (18.5%) - Interim dividend(HK$) 1.06 0.90 17
Slide 5: Sales Analysis
Sales Analysis Sales Profit Attributable to Equity Holders (RMB million) (RMB million) 6,000 25,000 23,030.65 23,845.01 5,106.74 20,000 4,000 3,371.7 15,000 10,000 2,000 5,000 0 0 2020 2021 2020 2021 ▪ Recorded a slightly increase in revenue ▪ Mainly attributable to the pressure Satisfactory growt
Slide 6: Profit Margin Analysis
Profit Margin Analysis Gross Profit Net Profit Attributable to Equity Holders (RMB million) (RMB million) 8,200 31.2% 32% 6,000 24% 22.2% 7,194.61 24.3% 6,150 24% 5,106.74 18% 5,789.65 4,000 14.1% 4,100 16% 3,371.70 12% 2,000 2,050 8% 6% 0 0% 0 0% 2020 2021 2020 2021 GP GPM NP NPM ▪ Overall gross pr
Slide 7: Quarterly Performance
Quarterly Performance Sales GP Margin (RMB billion) (%) 7 32.5% 35 31.4% 32.1% 6 30.6% 30 28.0% 29.6% 5 25 19.2% 4 20 19.6% 6.47 6.58 3 5.96 5.34 6.00 6.22 15 5.40 4.89 2 10 1 5 0 0 1Q 2Q 3Q 4Q 2021 2020 2021(%) 2020(%)
Slide 8: Operating Expenses Analysis
Operating Expenses Analysis For the year ended 31 Dec (RMB '000) 2021 2020 Change Selling & distribution expenses 231,658 148,679 +82,979 Administrative expenses 1,978,495 1,638,759 +339,736 Finance cost 144,036 108,250 +35,786 Total 2,354,189 1,895,688 +458,501 % to Revenue 9.9% 8.2% +1.7p.p ▪ Sell
Slide 9: Expenses Analysis by Nature
Expenses Analysis by Nature For the year ended 31 Dec (RMB '000) 2021 2020 Change Employee benefit expenses: Wages and salaries 6,638,662 5,420,615 1,218,047 Retirement benefit contributions 639,276 489,551 149,725 Other benefits 289,473 241,128 48,345 Total 7,567,411 6,151,294 1,416,117 Depreciatio
Slide 10: Dividend and Payout Ratio
Dividend and Payout Ratio (HK$) 2.2 60.3% 2.0 60% 53.40% 53.36% 1.8 50.70% 50.67% 50.50% 51.18% 48.70% 50% 46.55% 45.73% 1.6 45.71% 1.10 1.4 1.00 0.57 40% 0.90 1.2 31.35% 30.62% 29.97% 29.60% 0.75 1.0 30% 0.8 0.85 0.72 0.65 20% 0.6 1.06 0.50 0.55 0.90 0.90 0.4 0.85 10% 0.50 0.2 0.35 0.36 0.35 0.35 0
Slide 11: Domestic and International Cotton Prices
Domestic and International Cotton Prices RMB/tonne 43,000 Domestic cotton (328) Price 38,000 CC Index 3128B Cotlook A 1% customs duties 33,000 Cotlook A Sliding duties 28,000 23,000 18,000 13,000 8,000 02/03/ 02/200 05/ 26/200 07/ 26/200 9 09/ 21/200 9 11/ 11/200 9 12/ 04/200 9 02/ 28/200 9 04/ 19/2
Slide 12: Turnover Breakdown by Products
Turnover Breakdown by Products ▪ Revenue from sales of sportswear increased mainly attributable to the recovery of demand for sportswear products in the US and European markets ▪ Increase in casual wear sales was driven by the increase in sales in China and the US market ▪ Revenue remained stable fo
Slide 13: Turnover Breakdown by Regions
Turnover Breakdown by Regions ▪ Both US and European market recorded increase in sales, which were primarily attributable to the increase in sales of sportswear ▪ Recorded a decrease in revenue in the Japanese market mainly due to a significant decrease in the mask products exported to Japan ▪ Sligh
Slide 14: Key Financial Indicators
Key Financial Indicators 2021.12.31 2021.06.30 2020.12.31 Inventory turnover days 116 125 116 Debtor turnover days 59 62 62 Creditor turnover days 25 25 22 2021.12.31 2021.06.30 2020.12.31 Gross gearing ratio (debt to equity) (%) 38.1 28.0 24.2 Current ratio (times) 2.0 2.5 2.7 Cash and cash equival
Slide 15: Inventory Turnover Days Analysis
Inventory Turnover Days Analysis (Day) 160 140 139 140 135 129 125 124 124 122 125 120 116 116 120 100 80 60 40 20 0 2016 Jun 2016 Dec 2017 Jun 2017 Dec 2018 Jun 2018 Dec 2019 Jun 2019 Dec 2020 Jun 2020 Dec 2021 Jun 2021 Dec
Slide 16: Inventory
Inventory (RMB’000) 31-Dec-21 31-Jun-21 Change 31-Dec-20 Change Raw materials 1,567,062 1,290,540 276,522 1,194,287 372,775 Work in progress 3,065,628 2,750,546 315,082 2,217,369 848,259 Finished goods 2,138,783 2,296,400 (157,617) 1,499,560 639,223 6,771,473 6,337,486 433,987 4,911,216 1,860,257 Pr
Slide 17: Treasury Management
Treasury Management (RMB’000) 31 Dec 2021 31 Dec 2020 Change Bank Interest Income 224,496 332,255 (107,759) Other Interest Income/ Fair Value Gain 19,956 53,940 (33,984) Total Interest Income 244,452 386,195 (141,743) Less: Bank Interest Expenses 138,317 102,918 35,399 Other Interest Expenses on lea
Slide 18: Treasury Management (Con't)
Treasury Management (Con’t) (RMB’000) 31 Dec 2021 31 Dec 2020 Change Cash & Cash Equivalents 6,687,623 8,227,060 (1,539,437) Less: Bank Loan (10,588,679) (6,608,303) (3,980,376) Net (Debts)/ Cash (3,901,056) 1,618,757 (5,519,813) Long Time Deposits (+1 year) 1,710,000 1,410,000 +300,000 Bank Deposit
Slide 19: Business Review
-< Shenzhou International —— Group Holdings Limited FA ON El BR Se M3 AR BR a] Stock Code AR HAS: 2313 Business Review
Slide 20: Epidemic Prevention Measures for COVID-19
Epidemic Prevention Measures for COVID-19 Proactively implemented various epidemic prevention measures • Paid extra production • Continued to pay subsidies and wages during accommodation production subsidies • Distributed anti- suspension to • Provided free epidemic assure employees meal, welfare •
Slide 21: Major Achievements in 2021
Major Achievements in 2021 Expansion of overseas production facilities Completed civil engineering work New reclaimed Near half of water recycling More than 11,000 workshops finished project is under employees equipment construction installation Gradual improved Expect increase to production efficie
Slide 22: Major Achievements in 2021 (Con't)
Major Achievements in 2021 (Con’t) Improvement on PRC production facilities • Use more automated equipment • Improve equipment utilization rate • Continuously • Promoting the use upgrade of energy-saving • and improve equipment, improve • Upgrade and improve equipment production process fabric facto
Slide 23: Major Achievements in 2021 (Con't)
Major Achievements in 2021 (Con’t) Highly recognized suppliers ESG achievement IR excellence
Slide 24: Optimization of Product Structure
Optimization of Product Structure Sportswear customers Casual wear customers ▪ Strengthened cooperation with strategic customers by prioritizing the allocation of production resources and reducing the orders the Group obtained from small- to medium-sized customers, the Group also introduced certain
Slide 25: Future Strategic
-< Shenzhou International —— Group Holdings Limited FA ON El BR Se M3 AR BR a] Stock Code AR HAS: 2313 Future Strategic
Slide 26: Future Strategies
Future Strategies Automated Research & Digital production development transformation • Increasing • Strengthen R&D and • Promote digital automation innovation to adapt the transformation of • Optimization of trend of consumption enterprises production process upgrading • Aim to improve • Improve pro
Slide 27: Open Forum
-< Shenzhou International —— Group Holdings Limited FA ON El BR Se M3 AR BR a] Stock Code Akt} 4a: 2313 Open Forum
Shenzhou International Group Holdings — FY2021 Earnings Presentation on 6ix