Antelope Enterprise Holdings Limited · NASDAQ:AEHL
Antelope Enterprise — China Ceramics — Investor Presentation (March 2010)
27 slides from Antelope Enterprise's investor presentation, Mar 5, 2010
Slide 1: Corporate Presentation March 2010
CORPORATE PRESENTATION March 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements and management may make additional forward-looking statements in response to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of
Slide 3: Equity Snapshot
Equity Snapshot OTCBB Listed: CCLTF.OB Share Price (02/26/2010): $6.00 52 Week Range: $5.45-$10.01 Market Cap: $53.7 Million Shares Outstanding (02/26/2010): 8.95 Million Average Volume (3 Months): 7,437 Net Debt (09/30/2009): $10.8 Million Target Net Income (FY 2009): $23.8 Million 2009 P/E (@ $6.0
Slide 4: Company Overview
Company Overview China Ceramics is a leading manufacturer of ceramic tiles used for exterior siding and for interior flooring in residential and commercial buildings. Founded as Jinjiang Hengda Ceramics in 1993, based in Jinjiang, Fujian Province, China Produces five different types of ceramic tiles
Slide 5: Investment Highlights
Investment Highlights From 2005 through 2008 China Ceramics achieved: Profitable and Rapidly Revenue compounded annual growth rate (CAGR) of 25.1%, Growing Business Net Income CAGR of 23.9% and EBITDA CAGR of 27.2% Strong brand Leading Position in the Large and loyal customer base Ceramics Tile Mark
Slide 6: Superior Products
Superior Products Over two-thousand different combinations of products, colors and sizes manufactured The largest sized tiles measure 600 million by 600 million (23.6 x 23.6 inches) Awarded “Chinese Well-Known Mark” in 2005 and “China Building Ceramic Well-Known Brand” in 2008 6
Slide 7: Established and Loyal Customer Base
Established and Loyal Customer Base Current Distribution Network Products are sold directly to a network of 35 exclusive distributors and to large real estate developers; 9 of the top 10 customers in 2008 have worked with Hengda from 9 to 11 years, the other for 3 years Top 10 clients represent only
Slide 8: Selected Hengda Projects
Selected Hengda Projects Semi-detached dwellings Multi-unit dwelling Commercial Project: Chengdu Kanjun Project: China Resources Land Project: The 11th National Garden Limited Lanxi Town Games Village Project Size: 210,000 sq. meters Project Size: 100,000 sq. meters Project Size: 95,000 sq. meters P
Slide 9: Advanced Manufacturing Equipment and Technology
Advanced Manufacturing Equipment and Technology Jinjiang Facility Gaoan Facility Founded: 1993 January 2010 Capacity of 28 million sq. meters Closed acquisition in January 2010 9 manufacturing lines; 1,692 employees Capacity of 42 million sq. meters by end of Currently operating at 100% capacity 201
Slide 10: Automated Production Lines
Automated Production Lines 10
Slide 11: Macro-Economic Policies Benefit the Construction Industry
Macro- Economic Policies Benefit the Construction Industry The building materials industry benefits directly from PRC central government's 4 trillion stimulus plan and China's continuous urbanization. Significant growth potential PRC central government's 4 trillion stimulus plan 40 billion square me
Slide 12: Urbanization Trend in China Continues to Benefit Construction Industry
Urbanization Trend in China Continues to Benefit Construction Industry Growing Urban Per Capita The rapid urbanization, population growth and rising Living Space in China standard of living are fueling demand for building materials Urbanization Trend in China Growing Population in China % of Populat
Slide 13: Continued Growth in China's Housing & Construction Materials
Continued Growth in China’s Housing & Construction Materials The Chinese construction material market is forecasted to grow with a CAGR of 8.7% through 2013 reaching a value of $323.9 billion Growth in the New Construction market in China resumed in March 2009 after slowing down in the beginning of
Slide 14: Competitive Landscape
Competitive Landscape The ceramic tile market in China is fragmented. The ceramic tile manufacturing industry in China is centralized in four locations: Foshan, Zibo & Linyi and Jiajiang are known for specializing in manufacturing interior wall and floor ceramic tiles Jinjiang specializes in the ext
Slide 15: Competitive Strengths
Competitive Strengths Consistent track record of execution driving revenue and net profit growth. Well recognized “HD” and “Hengda” brands were awarded the coveted “Chinese Well-Known Mark” award by the Central Government Continuous focus on R&D to sustain competitive edge Granted 33 design patents
Slide 16: Growth Strategy
Growth Strategy Added 4 new distributors since December 2009 Gradually expand capacity at the Gaoan plant to reach target of 42 million sq. meters by end of 2011 Broaden distribution network by entering into exclusive contracts with large real estate developers Evaluate opportunities to increase exp
Slide 17: Four Year Hengda Management Forecast
Four Year Hengda Management Forecast Assumptions: In US$ '000 2009 2010 2011 2012 Sales of 32.5, 39.0, 47.0, Net Sales $126,645 $161,037 $204,782 $276,175 and 60.0 million sq.m COGS 86,326 106,238 132,385 173,482 from 2009-2012 Gross Profit $40,319 $54,799 $72,397 $102,693 respectively Expenses 8,60
Slide 18: Strong Track Record of Growth
Strong Track Record of Growth EBITDA Revenue CAGR=25.1% CAGR=27.2% Net Income CAGR=35.3% Assuming Hengda CAGR=23.9% achieves all of its earn-out targets, Net Income CAGR would be 35.3% from 2009 to 2011 2 3 Notes: 1. All figures converted at 6.85 RMB/US$ 2. Implied Net Income based on Net Income Bef
Slide 19: Strong Recent Performance - 9 Months 2009 Update
Strong Recent Performance - 9 Months 2009 Update Revenue EBITDA Revenue increased by 9.6% Sales volume for 9 months increased from 21.6 million sq. m to 25.0 million sq. m (+15.7%) EBITDA increased by 12.7% and Net Income (PF) was up Net Income 12.4% Hengda increased prices by 4% at the beginning of
Slide 20: Summary Balance Sheet: Pre-SPAC Deal
Summary Balance Sheet: Pre-SPAC Deal (1) In 000's of US$ 2008-12-31 2009-6-30 2009-9-30 Cash $7,534 $13,613 $23,700 Accounts Receivable 28,591 36,739 42,515 Inventory 19,206 15,744 14,938 Other Current Assets 491 622 95 Non-Current Assets 10,561 9,461 8,936 Total Assets $66,382 $76,179 $90,184 Accou
Slide 21: Transaction with China Holdings Overview
Transaction with China Holdings Overview On November 20, 2009, China Holdings (CHAC, a SPAC), through BVI located intermediary entities, acquired 100% of the equity shares of Jinjiang Hengda Ceramics Co., Ltd (“Hengda”) China Holdings re-domiciled as a BVI based company and the combined entity is ca
Slide 22: Attractive Valuation
Attractive Valuation Notes: 1. Assumes 25% tax rate on Net Income before Tax Target of $31.7 million for 2009 2. The warrants are valued under Treasury Method with a $7.50 strike price 3. There are 15.55 million warrants outstanding callable if stock price is exceeds $14.25 22
Slide 23: Senior Management Team and Board
Senior Management Team and Board Senior Management Team Founded Jinjiang Hengda Ceramics Co., Ltd. in 1993 Huang Jia Dong 20 years of experience in the ceramic tile industry Chairman* Vice chairman of Fujian Province Ceramic Industry Association Li Shun Qing Joined in 1993 as Manufacturing Vice Gene
Slide 24: Summary
Summary China’s urbanization trend expected to drive long-term demand for construction materials Aggressive production capacity expansion to Profitable and rapidly capitalize on growing growing business market demand Commitment to manufacturing Leading position technology, R&D and with established q
Slide 25: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table 000's of $USD 2005 2006 2007 2008 9 Mo. 2008 9 Mo. 2009 Net Income $12,660 $14,782 $21,256 $24,090 $19,059 $18,564 Plus Tax 0 2,018 2,900 3,508 2,758 6,226 Plus Interest 0 44 84 137 64 136 Plus Dep. and Amort. 1,919 2,004 2,159 2,279 1,726 1,726 EBITDA $14,579 $18,848 $
Slide 26: Contact Information
Contact Information China Ceramics Co. Ltd. CCG Investor Relations: Mr. Ed Job, CFA Mr. Edmund Hen, CFO Phone: +1-646-213-1914 (New York) Email: info@hengdatile.com ed.job@ccgir.com Auditors SEC Attorney Grant Thornton PRC Loeb & Loeb Tel: +86-21-2322-0200 Phone:+1(212) 407-4000 26
Slide 27: Thank You
CHINA CERAMI Thank You