Yip's Chemical Holdings Limited · HKEX:408
Yip's Chemical — FY2008/09 Earnings Presentation
29 slides from Yip's Chemical's earnings presentation, 2009
Slide 1: Annual Results Announcement 2008-2009
(SEHK: 408) 2008-2009 Annual Results Announcement Presenters: Mr. Tony Chi Shing Ip (Chairman) Mr. Kenny Kam Yim Wong (CEO) Mr. Robert Man Kim Young (Director) Mr. George Siu Ping Ng (CFO) 1
Slide 2: Disclaimer
Disclaimer The information on these slides does not constitute a recommendation by financial adviser or selling agent that any recipient should invest in the Company. Recipients should make their own independent appraisal, evaluation, assessment and investigation as deemed necessary by them. 2
Slide 3: Programme
Programme Chairman’s Remarks Financial Highlights Consolidated Financial Statements Core Businesses Analyses 3
Slide 4: Chairman's Remarks
Chairman’s Remarks Challenging operating environment during the past year Extreme volatility in raw material prices, coupled with rising cost pressure in 1H Global financial tsunami lefts its mark in 2H, with the 3Q hit the hardest from the credit crunch, and the consequent weakness in sales Busines
Slide 5: Chairman's Remarks
Chairman’s Remarks The Group remains confident and optimistic for the coming year Continued weak demand in Europe and North American expected Chinese Government’s policies to expand domestic demand to lessen dependence on exports seem effective Expects Group’s current level of 90% domestic demand to
Slide 6: Financial Highlights
Financial Highlights Year ended 31 March (HK$’000) 2009 2008 % Change Turnover 5,089,931 4,648,386 +9% Gross Profit 943,839 860,192 +10% Gross Profit Margin 19% 19% 0% Net Profit Attributable to Equity Holders 224,228 275,183 -19% Earnings Per Share HK 41.9cents HK 56.7 cents -26% Full Year Dividend
Slide 7: Financial Highlights
Financial Highlights Products Turnover (HK$ ’000) % Breakdown Year ended 31 Mar Year ended 31 Mar 2009 2008 % Change 2009 2008 Solvents* 2,976,563 2,745,605 +8% 58% 59 % Coatings 1,852,881 1,666,336 +11% 36% 36 % Lubricants* 257,446 248,656 +4% 5% 5% * Minority interests in Solvents and Lubricants b
Slide 8: Core Business Analyses: Operating Profits
Core Business Analyses: Operating Profits 2008 2009 HK$ ’000 280,000 250,185 240,000 212,682 200,000 160,000 124,046 128,112 120,000 80,000 40,000 9,493 0 -7,284 -40,000 Solvents * Coatings Lubricants* * Minority interests in Solvents and Lubricants businesses 8
Slide 9: Consolidated Financial Statements
Consolidated Financial Statements Turnover Net Profit Attributable to Equity Holders Dividends Per Share Consolidated Balance Sheet Consolidated Cash Flow Statement Liquidity and Financial Resources 9
Slide 10: Turnover
Turnover HK$ million Full Year Interim 6,000 5,090 5,000 4,648 3,914 4,000 3,330 3,085 3,000 2,678 2,350 2,062 1,799 1,761 2,000 1,356 892 1,000 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 10
Slide 11: Net Profit Attributable to Equity Holders
Net Profit Attributable to Equity Holders HK$ million Full Year Interim 300 275.2 250 223.6 224.2 200 168.4 155.4 158.0 150 123.2 128.4 96.2 93.9 100 76.0 60.2 50 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 11
Slide 12: Dividend Per Share
Dividend Per Share HK cents Full Year Interim 28 25 26 25 24 * 22 20 20 18 16 14 14 12 12 10 10 * 10 8 8 8 5 6 4 4.5 4 2 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 * include special dividend of 2.0 cents 12
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet 2009 2008 % Change (HKD’000) (HKD’000) Non-current assets 1,014,539 902,151 +12% Current asset 2,225,242 2,300,926 -3% Current liabilities (1,139,341) (1,424,454) -20% Net current assets 1,085,901 876,472 +24% Non-current liabilities (74,564) (149,658) -50% Capital and res
Slide 14: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Year ended 31 Mar (HK$’000) 2009 2008 Net Cash Inflow (Outflow) - Operating Activities 560,936 307,303 - Investing Activities (15,229) (420,904) - Financing Activities (279,418) 193,684 Net increase in cash and cash equivalents 266,289 80,083 Cash & Cash Equivalents
Slide 15: Liquidity and Financial Resources
Liquidity and Financial Resources 31 March 2009 HK$369,131,000 Net Cash Position HK$156,458,000 31 March 2008 (Net Borrowing) (Gearing Ratio: 10%) 2010/11 2009/10 Estimated Capital First Half 20,000 103,000 Investments (HK$’000) Second Half 20,000 17,000 40,000 120,000 Banking Facilities Utilized 66
Slide 16: Core Business Analyses
Core Business Analyses Solvents Coatings Lubricants 16
Slide 17: Core Business Analyses: Overview
Core Business Analyses: Overview Solvents reached record turnover, turnover grew by 8% Coatings recorded steady growth; turnover and operating profit went up 11% and 3% respectively Lubricants business faced extremely difficult operating environment, the business reached turnover growth of 4% but wi
Slide 18: Core Business Analyses: Solvents
Core Business Analyses: Solvents Record turnover of HK$2,976,563,000; operating profit was HK$212,682,000, a decline of 15% In the 1H, the division benefited from strong demand and good growth from coatings sector; but by 2H, demand weakened coupled with inventory loss from drastic decline in raw ma
Slide 19: Core Business Analyses: Solvents
Core Business Analyses: Solvents Relative prices of tapioca and corn turned favorable since early 2009, allowing the Taixing Chemical plant to return to profitability, and also favoring the production of acetate solvents in Eastern China Investment of HK$70 million to build 120,000 tonnes manufactur
Slide 20: Core Business Analyses: Coatings
Core Business Analyses: Coatings Coatings business had steady growth despite a difficult operating environment During the period, the market was faced with credit crunch, weakening demand, and serious decline in export markets The division undertook actions plans: (1) Improve “brand-pull” with incre
Slide 21: Core Business Analyses: Coatings
Core Business Analyses: Coatings Plant construction to meet the needs for long-term business development: 6-hectare Tungxiang plant commissioned in May this year provides good production base for inks and industrial paints business to further expand in Eastern China With inks production moving from
Slide 22: Bauhinia's New Logo and Marketing Campaign
Bauhinia’s New Logo and Marketing Campaign 22
Slide 23: Core Business Analyses: Lubricants
Core Business Analyses: Lubricants Turnover recorded a slight increase of 4% but operating results reversed to an operating loss of HK$7,284,000 Business restructuring in recent years started to bear fruit, but financial tsunami in 2H created havoc in both the markets and operating environment Indus
Slide 24: Summary
Summary The after-math of the financial tsunami and the weakened global economy will take time to heal. With its extensive business experience in China, its accumulated competitive advantages over the years, and its focus of core businesses concentrating on domestic market in China, the Group remain
Slide 25: asian
6 asian YIPSCHEMICAL 26
Slide 26: Appendices
6 saan YIPSCHEMICAL Appendices 27
Slide 27: Capacity of Three Businesses
Capacity of Three Businesses (End of 2009) Solvents Raw solvents : 430,000 MT 120,000 MT of raw solvents production facility in Taixing to be commissioned in end of 2009 Mixed solvents : 70,000MT Coatings Paints : 143,000 MT Inks : 41,000 MT Resins : 20,000 MT Varnishes : 25,000 MT Lubricants Automo
Slide 28: Consolidated Turnover
Consolidated Turnover First half Second half HK$ million 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 30
Slide 29: Profit Attributable to Equity Holders of the Company
Profit Attributable to Equity Holders of the Company First half Second half HK$ million 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 0 -20 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 31
Yip's Chemical Holdings — FY2008/09 Earnings Presentation on 6ix