China High Speed Transmission Equipment Group Co., Ltd. · HKEX:658
China High Speed Transmission Equipment — H1 2010 Earnings Presentation
29 slides from China High Speed Transmission Equipment's earnings presentation, Aug 31, 2010
Slide 1: 2010 Interim Results Presentation
2010 Interim Results Presentation 31 August 2010 0
Slide 2: Forward-Looking Statements
Forward -Looking Statements Forward-Looking The presentation is prepared by China High Speed Transmission Equipment Co., Ltd (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an off
Slide 3: Agenda
Agenda 1 2010 2010Interim InterimResults ResultsReview Reviewand andAnalysis Analysis 2 2010 2010Interim InterimBusiness BusinessReview Review 3 Industry IndustryOutlook Outlook 4 Future FutureProspects Prospects 5 Our OurPlants Plants 6 QQ&&AA 2
Slide 4: 2010 Interim Results Review & Analysis
2010 Interim Results Review & Analysis 3
Slide 5: Financial Highlights
Financial Highlights Sales revenue increased significantly by 52.3% to approx. RMB 3.1 billion RMB MM 1H2010 1H2009 Change (%) Sales Revenue 3,096.8 2,033.0 52.3 Gross Profit 941.1 632.8 48.7 Core EBITDA 858.2 524.1 63.7 Core EBIT 693.1 419.3 65.3 Net Profit Attributable to Equity Holders 563.5 254.
Slide 6: Continuous Strong Growth in Demand for Gear Transmission Equipment
Continuous Continuous Strong Strong Growth Growth in in D emand Demand for G ear T Gear ransmission E Transmission quipment Equipment Revenue Breakdown by Business Segment 1H2010 1H2009 % of revenue (% of total revenue) change RMB MM 3500 Wind Gear 70.9% 63% ▲ 71.4% 3,096.83 % 29 Marine Gear 3.5% 3.
Slide 7: Consolidated Gross Profit Increased
Consolidated Gross Profit Increased Sales Revenue of Wind Gear Transmission Equipment surged 71.4% % of gross 1H2010 1H2009 Gross Profit Breakdown by Business Segment (% of total gross profit) profit change Wind Gear 71.2% 62.8% 68.7% RMB MM Marine Gear 3.3% 3.0% 61.3% 1000 High-speed locomotives %
Slide 8: Gross Profit Margin Analysis
Gross Profit Margin A nalysis Analysis Consolidated Gross Profit Margin Product 1H2010 1H2009 Change (pt.) Wind Gear 30.5% 31.0% ▼ 0.5 (%) 31.1% 30.4% Marine gear 28.4% 27.6% 0.8 30 High speed locomotives and 30.4% 28.2% 2.2 urban light rails 25 High speed heavy duty gear 60.3% 63.2% ▼ 2.9 20 Gear f
Slide 9: Cost Analysis
Cost Analysis Cost of Goods Sold (GOGS to Sales by Segments) (RMB MM) 1H2009 1H2010 1.4% 1.7% 7.3% 8.3% 2.0% 2.4% 7.0% 27.5% 26.2% 5.8% (1) 25.0% Other raw materials 24.0% Cast iron and forged steel Subcontracting & processing Direct labor cost 2,033.0 3,096.8 Manufacturing fee Total Sales Total Sal
Slide 10: Balance Sheet Summary
Balance Sheet Summary RMB MM 1H2010 FY2009 Fixed Assets 5,619 5,198 7,625 5,037 1H2010 Current Assets Inventories 1,396 1,313 Increase in bank note Account Receivables 1,757 1,517 receivables from customer Notes Receivable 998 425 Cash and Deposits 2,881 1,074 Maintain stable inventory level Others
Slide 11: 1H2010 Business Review
China High Speed Transmission Equipment Group Co., Ltd. A ¢ PHSB PRASRARAD
Slide 12: Diversification of Product-mix in Each Business Segment
Diversification of Product -mix Product-mix in Each Business Segment Wind transmission Signed agreement with several domestic companies to open equipment up and develop in 3MW large-scale wind gear box High speed Strengthening business expansion to meet future market Locomotive & light demand, dedic
Slide 13: Continuous Growth in Order of Wind Gear Transmission Equipment
Continuous Growth in Order of Wind Gear Transmission Equipment Revenue Breakdown by Products 1H2010 1H2009 1H2010 1H2009 % of revenue Unit % of total revenue change of wind power RMB MM 4,000 1 - 0.1% N/A 3 MW Gearbox - 3,200 2MW Gearbox 179 119 9.9% 11.9% ▲ 65.8% % 2,400 1.4 2,196 67.9% 7 1.0, 1.3,
Slide 14: Strong Client Portfolio for Wind Gear Transmission Equipment
Strong Client Portfolio for Wind Gear Transmission Equipment Overseas Customers Location USA Denmark Germany Germany Japan France 3 3 3 3 3 3 Co. started 2005 2008 2007 2007 2006 2009 Domestic Customers Location China China China China China 3 3 3 3 3 Co. started 2004 2006 2005 2006 2008 13
Slide 15: High-speed Locomotive and Urban Light Rails with Promising Market Potential
High -speed Locomotive and High-speed Urban Light Rails with Promising Market Potential Further Developing Domestic and International Markets Becomes the Group’s New Revenue Growth Point • The Group’s transmission equipment passed the product quality certification in April 2008 and launched for sale
Slide 16: Industry Outlook
China High Speed Transmission Equipment Group Co., Ltd. <= | A ¢ PHSB PRASRARAD |ndustry Outiook
Slide 17: The Gear Box Makes Up the Core Part of Wind Turbines
The Gear Box M akes U Makes Upp the C ore P Core art of W Part ind T Wind urbines Turbines Gearbox is the critical component in manufacturing wind turbines Spare Parts Gearbox Wind Turbine Wind Farm Among all renewable energies, wind power is the sector benefited the most from the government financi
Slide 18: Favorable Policies Accelerate Wind Power Development
Favorable Policies Accelerate Wind Power Development According to the plan of China National Energy Administration, for the next 10 years from 2011- 2020, by opening the market to attract domestic and foreign investment, the direct investment to the domestic new energy industries is expected to incr
Slide 19: Offshore Wind Power Development Drives the Demand for Multi Mega Watt Gearbox
Offshore Wind Power Development Drives the Demand for Multi Mega Watt Gearbox Offshore wind power will increase domestic installed wind power gearbox capacity to 30GW between 2010 and 2012 China’s accumulated installed capacity (as of end 2009) Heilongjiang 1709.3 Jilin 2063.9 Liaoning Xinjiaing Inn
Slide 20: Optimistic View on High-speed Trains and City Light-rail in China and Overseas
Optimistic View on H igh-speed High-speed Trains and C Trains ity LLight-rail City ight-rail in China and Overseas • The locomotive inventory volume will The Group will further expand both domestic and reach 1,600 by 2012 overseas markets, making this a new source of growth • Potential demand for el
Slide 21: Future Prospects
China High Speed Transmission Equipment Group Co., Ltd. A ¢ PHSB PRASRARAD
Slide 22: Future Prospects of the Company
Future P rospects of the C Prospects ompany Company It is expected that the PRC government will launch policies to encourage new energy industries which will greatly support the growth of the wind gear business The Group has negotiated business with an Indian wind power equipment provider, which mig
Slide 23: Our Plants
China High Speed Transmission Equipment Group Co., Ltd. A ¢ PHSB PRASRARAD Our Piants
Slide 24: Production Base - Wind Gear Transmission Equipment I
Production B ase - Base Wind G ear Transmission E Gear quipment - I Equipment Plant size︰258 acreage (about 172,000sq. m) Annual production：approx. 4,000MW Main product︰ Wind power gearbox Plant Exterior: Spare parts processing Heat treatment Measuring Assembling Finished products 23
Slide 25: Production Base - Wind Gear Transmission Equipment II
Production B ase – Base Wind G ear Transmission E Gear quipment - II Equipment Three Dimension Test Bench Measurement Plant exterior Plant size︰400 acreage (about 266,000 sq. m) Annual production︰approx. 6,000MW Main product︰ Wind power gearbox Hobbing Machine Finished wind power gearbox 24
Slide 26: Production Base - Traditional Gear Transmission Equipment
Production B ase – Base Traditional Gear Transmission E quipment Equipment Hobbing Machine Plant size︰163 acreage (about 110,000 sq. m) Main products︰ Gear transmission equipment for Construction Gearbox transmission equipment for bar rolling, wire-rolling and plate-rolling mills of metallurgy indus
Slide 27: Production Base - Marine Gear Transmission Equipment
Production B ase – Base Marine Gear T ransmission E Transmission quipment Equipment Factory Exterior Plant size︰ 100 acreage (about 67,000 sq. m) Main product: Marine Transmission system Including︰ Pitch Propeller Marine Gearbox Tunnel Thruster Hydraulic Coupling Full Circle Swinging Fixed Pitch Pro
Slide 28: China High Speed Transmission Equipment Group Co., Ltd.
China High Speed Transmission Equipment Group Co., Ltd. A ¢ PHSB PRASRARAD
Slide 29: Thank you!
Thank you ! Investor Investor Relations Relations contacts contacts Website︰www.chste.com Email︰ir@chste.com Tel︰(86) 25 5247 2000 Fax︰(86) 25 5241 2731 28
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