Global Corn Group Limited · HKEX:3889
Global Corn — Global Sweeteners Holdings — FY2022 Earnings Presentation
27 slides from Global Corn's earnings presentation, Mar 30, 2023
Slide 1: 2022 Annual Results
2022 ANNUAL RESULTS 30 March 2023
Slide 2: Results Highlights
RESULTS HIGHLIGHTS ➢ COVID-19 → lockdown in Shanghai → temporary suspension in Shanghai site → sales volume ↓ → revenue ↓ 50.6%; → GP ↓ 34.4% ➢ Other income and gains ↓ (absence of items such as the recognition of the one-off gain of HK$128.3 million from completion of Repurchase Agreements in 2021)
Slide 3: Financial Overview
2022 ANNUAL RESULTS Financial Overview 3
Slide 4: Operating Results
OPERATING RESULTS HK$ million 2022 2021 % Change Revenue 359.6 728.1 (50.6) • Corn Refined Products - 0.8 (100.0) • Corn Sweeteners 359.6 727.3 (50.6) Gross Profit 27.3 41.6 (34.4) • Corn Refined Products - 0.1 (100.0) • Corn Sweeteners 27.3 41.5 (34.2) Gross Profit Margin (%) 7.6 5.7 1.9% pt • Corn
Slide 5: Financial Position
FINANCIAL POSITION HK$ million 31 Dec 22 31 Dec 21 % Change Non-current Assets 564.9 679.5 (16.9) Current Assets 122.2 255.5 (52.2) Current Liabilities 1,329.0 1,381.1 (3.8) Cash and Cash Equivalents 4.3 7.8 (44.9) Interest-bearing Bank and Other Borrowings 795.4 927.5 (14.2) Total Deficit (681.0) (
Slide 6: Borrowings Structure
BORROWINGS STRUCTURE HK$ million 31 Dec 22 31 Dec 21 % Change Short Term Borrowings 795.4 927.5 (14.2) Long Term Borrowings - - N/A Total 795.4 927.5 (14.2) HK$ million 1,000 500 927.5 795.4 - As at 31 December 2021 As at 31 December 2022 Short Term Borrowings Long Term Borrowings 6
Slide 7: Key Financial Ratios
KEY FINANCIAL RATIOS 31 Dec 22 31 Dec 21 Current Ratio 0.09 0.19 Quick Ratio 0.06 0.14 Gearing Ratio* 115.8% 99.2% Inventory Turnover Days** 47 Days 35 Days Trade Receivables Turnover Days 50 Days 50 Days Trade Payables Turnover Days*** 94 Days 61 Days * Gearing ratio is calculated by debts (i.e. to
Slide 8: Operation Overview
2022 ANNUAL RESULTS Operation Overview 8
Slide 9: Revenue Breakdown
REVENUE BREAKDOWN 2022 Revenue Breakdown Revenue % Maltose (HK$ million) 2022 2021 Change 27% Upstream Glucose HFCS 11% 49% Corn Refined Products - 0.8 (100.0) Maltodextrin 13% Downstream Corn Refined Products Glucose Syrup 40.6 70.0 (42.0) 0% Maltose Syrup 95.4 141.7 (32.7) 2021 Revenue Breakdown H
Slide 10: Gross Profit Breakdown
GROSS PROFIT BREAKDOWN 2022 Gross Profit Breakdown Gross Profit % Maltose (HK$ million) 2022 2021 Change 24% Glucose 23% Upstream HFCS 27% Corn Refined Products - 0.1 (100.0) Maltodextrin 26% Corn Downstream Refined Products 0% Glucose Syrup 6.3 7.0 (10.0) Maltose Syrup 6.5 8.3 (21.7) 2021 Gross Pro
Slide 11: Sales Analysis
SALES ANALYSIS Sales Volume (’000 MT) Gross Profit Margin (%) % % pt 2022* 2021 Change 2022 2021 Change Upstream Corn Refined Products - 0 (100.0) - 12.5 N/A Downstream Corn Syrup 74 149 (50.3) 6.4 5.7 0.7 Corn Syrup Solid 12 29 (58.6) 15.7 5.4 10.3 Sweeteners Sub-total 86 178 (51.7) 7.6 5.7 1.9 Tot
Slide 12: Exports Breakdown
EXPORTS BREAKDOWN 2022 2021 % Change Export Sales Revenue (HK$ Million) 13.0 14.7 (11.6) Exports Sales Volume (’000 MT) 3 3 - Export Contribution (%) 3.6 2.0 1.6% pt Export Sales by Region Export Sales by Product Malaysia Sweeterners 100% 100% 12
Slide 13: CCT – Sales to & Purchase from GBT
CCT – SALES TO & PURCHASE FROM GBT During the Year, the connected transactions between the Group and the GBT Group was kept at minimal level as most of the Group’s production operation was suspended. 13
Slide 14: Operating Cost Structure
OPERATING COST STRUCTURE 2022 2021 Raw Material (Corn / Corn Starch) 45.6 % 61.3 % Utilities (Water, Electricity, Steam & Wastewater Treatment) 3.5 % 4.5 % Wages and Salaries 17.3 % 11.1 % Depreciation 14.3 % 7.5 % Production Overhead (Consumable and Packaging Materials) 8.8 % 6.7 % Selling, Adminis
Slide 15: Business Outlook & Development Plans
BUSINESS OUTLOOK & DEVELOPMENT PLANS 15
Slide 16: Upstream Raw Material -- Corn
UPSTREAM RAW MATERIAL -- CORN Corn Price Movement in China (Jan 2007 – Mar 2023) RMB/MT 3,000 2,500 2,000 1,500 1,000 500 0 Source: Feedtrade.com - Based on average price from Northern China (Jilin, Liaoning and Shandong) 2022/23 PRC corn harvest estimates : production at approx. 277.2 million MT (2
Slide 17: Downstream Substitute – Sugar
DOWNSTREAM SUBSTITUE – SUGAR Sugar Price Movement in China (Jan 2010 – Mar 2023) RMB/MT 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Source: www.msweet.com.cn PRC 2022/23 sugar production: approx. 10.1 million MT (2021/22: 9.6 million MT) (Source : Ministry of Agriculture and Rural Affair
Slide 18: Corporate Strategies
CORPORATE STRATEGIES 1) Active negotiations with banks and creditors for the debt restructuring plan of the Group to improve its financial position The Group will continue to negotiate actively with creditors and endeavour to facilitate the implementation of the debt restructuring plan to improve th
Slide 19: Corporate Strategies (Con't)
CORPORATE STRATEGIES (CON’T) 4) GSH’s value chain Strengthen services and Stringent control on corn inventory → customer relationship improve operation flexibility and cash flow management Sales & Purchase Operations Services Marketing Product Provide post-sale services Development such as consultin
Slide 20: Capacity Overview
CAPACITY OVERVIEW Designed Capacity (mtpa) 2023* 2022 Upstream Products Corn Starch 560,000 560,000 Other Corn Refined Products 240,000 240,000 Upstream Sub-total 800,000 800,000 Downstream Products Glucose / Maltose Syrup 360,000 360,000 HFCS 220,000 220,000 Maltodextrin 30,000 30,000 Downstream Su
Slide 21: Company Profile
COMPANY PROFILE 21
Slide 22: Corporate Milestones
CORPORATE MILESTONES Global Sweeteners (stock The listing of TDR of code: 03889.HK) was listed Global Sweeteners The delisting of TDR of on the Main Board of the (stock code: 913889.TW) Global Sweeteners (stock Stock Exchange of Hong on the Taiwan Stock code: 913889.TW) on the Kong Limited on 20 Exc
Slide 23: Corporate Structure
CORPORATE STRUCTURE Public 64% 36% 100% 100% 100% 100% 100% 100% Glucose/ Corn HFCS Refinery Maltose (220,000 mtpa) (60,000 mtpa) (800,000 mtpa) Glucose/ Glucose/ Maltodextrin Maltose Maltose (30,000 mtpa) (100,000 mtpa) (200,000 mtpa) Xinglongshan Shanghai Jinzhou 23
Slide 24: Diversified Product Mix
DIVERSIFIED PRODUCT MIX Corn Refinery UPSTREAM Gluten Fibre Corn Starch Corn Oil Corn Sweeteners Corn Syrup Corn Syrup Solid DOWNSTREAM Glucose & Maltose Syrup HFCS Maltodextrin * Sweetness level: 40% * Sweetness level: 80-110% * Sweetness level: 20% • Food & Beverage • Food & Beverage • Food & Beve
Slide 25: Appendix
APPENDIX 25
Slide 26: PRC Sugar & Sweeteners Production
PRC SUGAR & SWEETENERS PRODUCTION Natural Sweeteners Sugar Starch Sweeteners Raw Material: Raw Material: Cane, Beet Corn, Potatoes, Tapioca Regions: Regions: • Cane: Southern parts of China (e.g. Guangxi) Corn is produced mainly in Northern China: Jilin, Shandong & • Beet: Northern parts of China He
Slide 27: The End
A Py HS Se FE A BR DS)” GLOBAL Sweeteners Holdings Limited GLOBAL (incorporated in the Cayman Islands with limited liability) Sweeteners Stock Code: 03889 (2) °e90 - The End - * For identification purpose only
Global Sweeteners Holdings — FY2022 Earnings Presentation on 6ix