Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — H1 2006 Earnings Presentation
23 slides from Xiwang Property's earnings presentation, August 2006
Slide 1: 2006 Interim Results
2006 Interim Results August 2006 0
Slide 2: Agenda
Agenda Financial Highlights Business Overview Future Strategies and Business Plans Open Forum 1
Slide 3: Financial Highlights
Financial Highlights 2
Slide 4: Results Highlights
Results Highlights For the six months ended 30 June RMB 1H 2006 1H 2005 Change Turnover (Mn) 687.7 409.9 +68% Gross profit (Mn) 191.9 91.3 +110% Operating profit (Mn) 170.0 80.6 +111% Profit attributable to equity 158.9 75.7 +110% holders (Mn) EPS - Basic (RMB) 0.198 0.135 +47% 3
Slide 5: Continuous Growth in Turnover and Profit
Continuous Growth in Turnover and Profit Operating Profit Turnover RMB mil RMB mil 400 1,200 % 0 .8 0 1,037.7 R :1 228.3 G 1,000 200 CA 170.0 110.6 % 80.6 5.1 56.6 8 R: 800 G 0 CA 8% 2003 2004 2005 1H 2005 1H 2006 +6 687.7 For the year For the 6 months 602.7 ended 31 December ended 30 June 600 Profi
Slide 6: Turnover by Products
Turnover by Products 1H 2005 1H 2006 Glucose Syrup Glucose Syrup 15% 9% Lysine Lysine Products Products 4.6% 26.9% Crystallised Glucose 37.7% Corn refined Crystallised Corn refined products Glucose products 29.2% 51.2% 26.4% For the six months ended 30 June 2006 5
Slide 7: Gross Profit Breakdown by Products
Gross Profit Breakdown by Products 1H 2005 1H 2006 Glucose Syrup Glucose Syrup 18.1% 11.5% Lysine Lysine Products Products 21.7% 5.6% Corn refined Crystallised Corn refined Crystallised products Glucose products Glucose 14.5% 61.8% 17.9% 48.9% For the six months ended 30 June 2006 6
Slide 8: Improving Margins
Improving Margins Overall Profit Margins 30% 27.9% 25.2% Margin improvement 25% 22.3% attributable to: 20.3% 23.1% 19.7% Increase in selling price 20% 20.2% 18.5% of crystallised glucose 15% 13.1% Launch of lysine 13.6% products with higher 10% profit margins 5% 0% 2003 2004 2005 1H 2005 1H 2006 For
Slide 9: Cost of Sales
Cost of Sales 1H 2005 1H 2006 Depreciation Electricity and steam Depreciation Electricity and steam 2.5% 10% 3% 13% Labour Labour 1.5% 2% *Raw material *Raw material 86% 82% * Average cost of corn in 1H 2006 was RMB1,245/ton (2005 1H:RMB1,260/ton) For the six months ended 30 June 2006 8
Slide 10: Margin Analysis
Margin Analysis Gross Margin by Product Categories Change % 1H 2006 1H 2005 (% pts) Corn based biochemical products Crystallised glucose 36 27 +9 Glucose syrup 36 27 +9 Lysine products 22.5 26.6 (4.1) Corn refined products 19 12 +7 Overall 27.9 22.3 +5.6 9
Slide 11: Other Financial Figures
Other Financial Figures 1H 2006 2005 As at 30 June 2006 As at 31 Dec 2005 Total assets (RMB Mn) 1,571.1 1,387.5 Net assets (RMB Mn) 993.0 840.0 Cash on hand (RMB Mn) 439.0 502.0 Current ratio 2.61 2.2 Gearing ratio* (%) 29 24.8 1H 2006 1H 2005 For the 6 months ended For the 6 months ended 30 June 30
Slide 12: Business Updates
Business Updates 11
Slide 13: Market Leader in Crystallised Glucose
Market Leader in Crystallised Glucose Xiwang Sugar’s Production Volume and Market Share Ranked the largest crystallised glucose 000’ tonnes producer in the PRC 700 2005 market share: approx 600 30% 2005 output: 200,000 tonnes 500 400 One of the top ten starch- 300 based sweetener manufacturers 200 S
Slide 14: Average Selling Price of Key Products
Average Selling Price of Key Products (RMB/tonne) 1H 2006 1H 2005 Change Crystallised glucose 2,920 2,595 +12.5% Glucose syrup 2,262 1,760 +29.0% 63% Lysine 4,760 5,915 -19.5% 98.5% Lysine 10,825 -- N/A Remarks: Price quoted above include VAT 13
Slide 15: Expanding into New Geographical Markets
Expanding into New Geographical Markets Europe Russia, Chile, Germany, Turkey, Greece, Holland, Belgium and Czech Middle East Saudi Arabia, Egypt, Dubai and Pakistan Africa Asia Pacific Region Kenya and Agana Japan, Korea, Singapore, Malaysia, Indonesia, Taiwan, the Philippines, Vietnam, Thailand, A
Slide 16: New Product – Crystallised Fructose-glucose
New Product – Crystallised Fructose-glucose Crystallised Fructose-glucose is a natural sweetener made from corn and can be found in numerous foods and beverages Benefits include: Sweetness intensity higher than cane sugar More convenient to freight as compared to Fructose syrup Enhances fruit, citru
Slide 17: New Product – Crystallised Fructose-glucose
New Product – Crystallised Fructose-glucose China’s Sugar Market 2005 – 2006 R&D expenditure: RMB 5 million Recognized by industry experts in Beijing Mn tonnes 15 11.5 12.0 10.6 11.0 10.2 9.4 9.2 10 6.8 8.7 8.3 2H 2006 Apply for patent 5 0 2000/01 2001/02 2002/03 2003/04 2004/05 Production Consumpti
Slide 18: Future Expansion Plans
Future Expansion Plans 17
Slide 19: Future Growth Drivers
Future Growth Drivers Further expansion of production capacity in the PRC Launch of Crystallised Fructose-glucose To tap into international markets, target markets include Asian and European countries To expand products types through R&D 18
Slide 20: Expansion of Production Capacity
Expansion of Production Capacity Annual Production 1H 2006 2007 Change Capacity (tonnes) Starch paste 400,000 1,000,000 +150% Crystallised glucose 250,000 800,000 +220% 19
Slide 21: Capital Expenditures Plans
Capital Expenditures Plans Capital Completion Investment by Construction of new starch paste plant RMB 200 mil 3Q 2006 (600,000 tonnes) Construction of new crystallized RMB 420 mil 4Q 2006 glucose plant (550,000 tonnes) Warehouse (90,000 tonnes) RMB 100 mil 2006 20
Slide 22: Open Forum
Open Forum 21
Slide 23: Disclaimer
Disclaimer These materials are being furnished to you on a confidential basis and solely for your information only and may not be reproduced or distributed or passed on to any other person. Neither these materials nor any copy thereof may be given or distributed to the press or any other media. THES
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