China Sunsine Chemical Holdings Ltd. · SGX:QES
China Sunsine Chemical — FY2022 Earnings Presentation
41 slides from China Sunsine Chemical's earnings presentation, Mar 1, 2023
Slide 1: 2H2022 & FY2022 Results Briefing
2H2022 & FY2022 Results Briefing 1 March 2023 CHINA SUNSINE CHEMICAL HOLDINGS LTD. 中国尚舜化工控股有限公司 1
Slide 2: Disclaimer
Disclaimer 2 The information included in this presentation is being provided for information purposes only and does not constitute an offer to sell, or a solicitation of an offer to purchase, securities of CHINA SUNSINE CHEMICAL HOLDINGS LTD. (“CHINA SUNSINE”). This presentation contains certain for
Slide 3: Presentation Outline
3 PRESENTATION OUTLINE Our Company Financial Overview Key Developments Industry Info and Outlook
Slide 4: Our Company
4 Our Company
Slide 5: About CHINA SUNSINE
About CHINA SUNSINE 5 ✔ China’s largest rubber chemicals producer ✔ World’s largest producer of Rubber Accelerators ✔ One of the world’s largest producers of Insoluble Sulphur ✔ Superior product quality and comprehensive product range ✔ Accredited by a strong customer base of top tire makers ✔ Benef
Slide 6: Our Products: Rubber Chemicals
Our Products: Rubber Chemicals 6 Rubber Chemicals are Essential Additives in the production of rubber products
Slide 7: Our Products - Rubber Chemicals
Our Products - Rubber Chemicals 7 Rubber Accelerators Insoluble Sulphur Anti-Oxidants MBT/MBTS/CBS/TBBS/TMTD (IS) TMQ /HTMQ DPG/DCBS …. 6PPD 4010NA
Slide 8: Rubber/ Rubber Chemicals Consumption
Rubber/ Rubber Chemicals Consumption 8 Global Rubber Consumption by Applications Anti-oxidants Industrial Others 2% 2.2% 8% Vulcanizing Footwear agents 2.0% 7% Accelerators 1.7% Non-tire automotive 13% Tyre Rubber 70% www.fortunebusinessinsights.com • By volume, rubber chemicals compose around 6% of
Slide 9: Our Strong Customer Base
Our Strong Customer Base 9 Over 1,000 customers globally 1/3 output exported Serving more than 3/4 of the global top 75 tyre makers
Slide 10: Our Rubber Accelerators Market Share
Our Rubber Accelerators Market Share 10 Group’s market share of accelerators continued to grow throughout the years 40% 36% 33% 33% 33% 34% 35% 29% 30% 30% 31% PRC * 30% 28% 24% 24% 25% 24% 25% 22% 19% 20% 20% 20% Global* 20% 17% 17% 18% (Est.) 14% 16% 15% 11% 12% 12% 10% 7% 5% 0% 2008 2009 2010 201
Slide 11: Our Market Leadership Position
Our Market Leadership Position 11 GLOBAL TOP 3 PRC TOP 3 ACCELERATOR PRODUCERS INSOLUBLE SULPHUR PRODUCERS Annual Company Annual Company Capacity 2022 Capacity 2022 China Sunsine 117,000 tonnes China Sunsine 60,000 tonnes 中国尚舜 中国尚舜 Tianjin Kemai 70,00 tonnes Yanggu Huatai 60,000 tonnes 天津科迈 阳谷华泰 Yan
Slide 12: Our Production Bases
Our Production Bases 12 5 production bases in 3 cities Weifang Plant Shanxian • RA: 27,500-tonne • HQ base: - RA: 59,500-tonne - IS: 10,000-tonne - AO: 45,000-tonne • Hengshun New Materials: - IS: Phase I 30,000-tonne Phase II 30,000-tonne (CIP) - MBT: Phase I 20,000-tonne (CIP) • Yongshun New Distr
Slide 13: Financial Overview
13 Financial Overview
Slide 14: Financial Highlights
Financial Highlights 14 RMB ’mln 6 Months Ended 12 Months Ended 31/12/22 31/12/21 Change 31/12/22 31/12/21 Change Group Revenue 1,802.5 1,967.7 (8%) 3,825.0 3,725.2 3% Gross Profit 469.9 494.2 (5%) 1,163.9 1,046.5 11% Gross Profit Margin 26.1% 25.1% +1.0 pts 30.4% 28.1% +2.3 pts Profit Before Tax 26
Slide 15: Revenue Growth
Revenue Growth 15 RMB ’mln 4,000.0 3,725.2 3,825.0 3,500.0 3,283.3 3,000.0 2,738.4 2,691.7 2,500.0 2,333.7 2,077.3 2,036.9 1,967.7 2,000.0 1,695.9 1,859.1 1,802.5 1,500.0 1,000.0 500.0 0.0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 2H21 2H22 • FY2022 revenue up 2.7% yoy due to higher Average
Slide 16: Rubber Chemical Sales By Region
Rubber Chemical Sales By Region 16 Region FY2022 FY2021 FY2020 Rest of Asia 27% PRC 61% 62% 71% Rest of 27%Asia 28 % 28% 20% PRC 62% US 2% 3% 2% US 2% Europe 2% 8% 5% 4% 8% Europe 8% Others 1% 2% 3% Total 100% 100% 100% Others 1%
Slide 17: Rubber Chemical Sales By Products
Rubber Chemical Sales By Products 17 IS 8% FY22 FY21 FY20 Revenue % Revenue % Revenue % (RMB mln) (RMB mln) (RMB mln) Accelerators 2,043.3 54 2,228.1 61 1,435.3 62 Accelerators 27% Insoluble 54% Anti- Sulphur 297.7 8 307.5 8 229.0 10 oxidants 37% Anti-Oxidants 1,405.2 37 1,112.6 30 610.8 27 2% Other
Slide 18: Overall ASP vs Major Raw Material price
Overall ASP vs Major Raw Material price 18 RMB/Tonne 25,000 21.5K 20.2k 19.1K 19.4K 20,000 18.8K 17.2K 16.2K 15.0K 16.0K 15,000 13.6K ASP 10.2K 9.2K 8.3K 9.5K 10,000 8.4K 7.8K Aniline 5.2K 4.8K 5.5K 5.0K 5,000 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
Slide 19: Sales Volume
Sales Volume 19 Tonnes 240,000 195,405 200,000 186,153 167,455 169,876 160,000 151,486 135,791 140,476 120,000 108,973 114,572 102,243 95,731 98,345 80,000 40,000 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 2H21 2H22 FY22 sales volume decreased by 5% y-o-y, mainly due to: • Accelerators sale
Slide 20: Sales Volume vs Effective Capacity
Sales Volume vs Effective Capacity 20 Project expansion in recent years provides stronger support to meet the demand for our products and allows us to scale up sales volume in the future Tonnes 250,000 200,000 69,000 45,000 45,000 150,000 47,283 45,000 54,566 58,058 60,000 41,095 45,000 46,035 30,00
Slide 21: Gross Profit
Gross Profit 21 RMB ’mln 1400.0 1200.0 1125.9 1163.9 1046.5 1000.0 788.1 780.8 800.0 567.4 600.3 600.0 547.1 494.2 492.0 469.9 400.0 308.0 200.0 0.0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 2H21 2H22 • FY22 gross profit increased by 11% yoy due mainly to higher ASP • 2H22 gross profit decre
Slide 22: Net Profit
Net Profit 22 RMB ’mln 700 641.3 642.4 600 506.3 500 388.9 400 341.3 300 241.1 214.9 220.2 195.2 221.7 218.8 200 100 76.7 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 2H21 2H22 • FY22 net profit increased by 27% yoy due mainly to higher ASP and concessionary tax rate • 2H22 net profit decreas
Slide 23: Margins Analysis
Margins Analysis 23 40.0% 34.3% 35.0% 30.4% 30.0% 28.8% 29.0% 28.1% 27.3% 26.5% 26.9% 25.0% 25.7% Gross Profit Margin 25.0% (GPM) 18.2% 19.5% 20.0% 17.2% Net Profit Margin 17.0% 14.4% (NPM) 15.0% 12.5% 13.6% 10.6% 10.5% 10.9% 9.4% 10.0% 8.5% 4.5% 5.0% 2.3% 0.0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY1
Slide 24: Balance Sheet Highlight
Balance Sheet Highlight 24 31/12/2022 31/12/2021 31/12/2020 Current Assets (RMB’mln) * 3,149.8 2,839.5 2,239.2 Current Liabilities (RMB’mln) 532.7 747.2 451.4 Current Ratio 5.91 3.80 4.96 Shareholders’ Equity (RMB’mln) 3,691.8 3,176.1 2,720.7 D/E ratio 0 0 0 ROE 17% 16% 8% NAV per share (RMB cents)
Slide 25: Key Developments
25 Key Developments
Slide 26: Expansion Projects Completed in recent years
Expansion Projects Completed in recent years 26 Project Completion 30,000-tonne fully-automated Accelerator TBBS capacity at Shanxian: -- Phase I of 10,000-tonne Jan 2019 -- Phase II of 20,000-tonne 1H2020 60,000-tonne Insoluble Sulphur Capacity at Chemical Zone in Shanxian Phase I of 30,000-tonne D
Slide 27: Expansion Projects in Progress
Expansion Projects in Progress 27 Project Schedule CapEx Notes • Adopts continuous production 60,000-tonne Insoluble Sulphur method, the highest standard of production technology, which To be was developed in-house Phase 2 of 30,000-tonne capacity • Awarded “First Prize of completed by RMB 100 mln S
Slide 28: Annual Capacity
Annual Capacity 28 FY17 FY18 FY19 FY20 FY21 FY22 FY23e Rubber Accelerators 87,000 87,000 97,000 117,000 117,000 117,000 117,000 Insoluble Sulphur 20,000 30,000 30,000 30,000 30,000 60,000 60,000 Anti-oxidants (TMQ & 6PPD) 45,000 45,000 45,000 45,000 45,000 77,000 77,000 Total 152,000 162,000 172,000
Slide 29: Industry Info and Outlook
29 Industry Info and Outlook
Slide 30: China's New Car Sales
China’s New Car Sales 30 in million units 35 20.0% 30 28 28.9 28.1 25.8 26.3 26.9 15.0% 24.6 25.3 25 23.5 22 10.0% 20 5.0% sales 15 growth yoy 0.0% 10 5 -5.0% 0 -10.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: China Association of Automobile Manufacturers （CAAM) • China is the world'
Slide 31: PRC Vehicle Population
PRC Vehicle Population 31 PRC Motor Vehicle & Car Population In mln units 450 417 395 400 372 348 350 327 319 310 302 279 290 281 300 264 260 250 240 250 217 194 200 172 154 150 137 100 50 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Car Population Motor Vehicle Poluation http://www.gov.cn/sh
Slide 32: Global Car Population
Global Car Population 32 Car ownership per 1000 people in global major auto markets in 2022 In units 900 837 800 759 731 684 700 639 637 612 600 500 472 461 400 363 329 300 269 226 223 219 200 101 100 29 0 Source: www.163.com • Global vehicle population is growing, mainly driven by rising car owners
Slide 33: Tire Industry Info
Tire Industry Info 33 PRC Vehicle Tyre Production in million units The global tyre market size reached 2,321.3 %12 1200 1,114 Million Units in 2022. Looking forward, it 965 925 947 926 10 1000 892 899 856 will reach 2,741.2 Million Units by 2028, 832 816 842 818 8 800 6 exhibiting a growth rate (CAG
Slide 34: Operating Environment & Industry Outlook
Operating Environment & Industry Outlook 34 • Greater challenges and uncertainties in macro-economic environment, impacted by a variety of factors, such as Ukraine-Russia conflict, interest rate hike, high inflation, US- China relationship tension • Volatile International crude oil prices leading to
Slide 35: Group's Strategy
Group’s Strategy 35 Production and Sales Equilibrium Higher production leads to higher sales volume, which in turn stimulates even higher production • Our goal - Increase market share and strengthen our market leadership position • Expanding capacity to meet the increased demand for our products • I
Slide 36: Competitive Strengths
Competitive Strengths 36 - World largest accelerators and China’s biggest IS producer Market Leadership - Our accelerator products capture 36% of PRC market and 24% of global market - Listed in the first batch of “National Champion Manufacturing Enterprise” - Full range of essential rubber chemicals
Slide 37: Listed On SGX Mainboard
Listed On SGX Mainboard 37 SHARE PERFORMANCE • Since IPO, no new share placement and rights issue
Slide 38: Dividend Payment History
Dividend Payment History 38 1: 2 share Net Profit Dividend split in Nov (in RMB ’mln) 2019 (in SGD cents) 700 641.3 642.4 6 5.5 5.5 600 5 506.3 500 4.5 4 388.9 3.5 400 341.3 3 3 3 Net Profit 300 2.5 Dividend 220.2 221.7 218.8 195.2 2 2 200 76.1 106.7 88.3 115.3 99.4 1.5 76.7 1.5 1.5 1.5 100 1 1 1 1
Slide 39: Investment Merits
Investment Merits 39 ✔ Market leadership position and largest market share in rubber accelerators ✔ Strong customer base ✔ Capacity expansion ongoing, focusing on growing sales volume and market share ✔ Strong cash position (cash per share SGD 27.6 cents) with no bank loan ✔ 15-year track record & a
Slide 40: Chairman's Message
Chairman’s Message 40 “The Chinese economy is facing insufficient demand, which is impeding economic growth and development. However, the recent reopening from COVID-19 has paved the way for a faster- than-expected recovery. We expect that work and life will be back to normal, and demand for goods a
Slide 41: Q & A Media/Investor Contact
41 Q&A MEDIA/INVESTOR CONTACT Tong Yiping, CFO, tongyiping@ChinaSunsine.com Jennie Liu, IR Manager, jennie@ChinaSunsine.com 18 Cross Street, #07-08 Singapore 048423 (+65) 6220 6686 www.ChinaSunsine.com
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