Global Corn Group Limited · HKEX:3889
Global Corn — Global Sweeteners Holdings — FY2021 Earnings Presentation
28 slides from Global Corn's earnings presentation, May 5, 2022
Slide 1: 2021 Annual Results
2021 ANNUAL RESULTS 5 May 2022
Slide 2: Results Highlights
RESULTS HIGHLIGHTS ➢ COVID-19 + ↑corn price → suspension of most operations → revenue ↓ 5.3% and GP ↓ 46.6%. ➢ One-off gain of HK$128.3 million from completion of Repurchase Agreements during the Year VS one-off gain of HK$289.4 million from resumption of properties in 2020 → ↓ other income and gain
Slide 3: Financial Overview
2021 ANNUAL RESULTS Financial Overview 3
Slide 4: Operating Results
OPERATING RESULTS HK$ million 2021 2020 % Change Revenue 728.1 769.0 (5.3) • Corn Refined Products 0.8 211.0 (99.6) • Corn Sweeteners 727.3 558.0 30.3 Gross Profit 41.6 77.9 (46.6) • Corn Refined Products 0.1 22.9 (99.6) • Corn Sweeteners 41.5 55.0 (24.5) Gross Profit Margin (%) 5.7 10.1 (4.4)% pt •
Slide 5: Financial Position
FINANCIAL POSITION HK$ million 31 Dec 21 31 Dec 20 % Change Non-current Assets 679.5 692.7 (1.9) Current Assets 255.5 611.8 (58.2) Current Liabilities 1,381.1 1,496.9 (7.7) Cash and Cash Equivalents 7.8 21.3 (63.4) Interest-bearing Bank and Other Borrowings 927.5 995.6 (6.8) Total Deficit (500.6) (4
Slide 6: Borrowings Structure
BORROWINGS STRUCTURE HK$ million 31 Dec 21 31 Dec 20 % Change Short Term Borrowings 927.5 811.0 14.4 Long Term Borrowings - 184.5 (100.0) Total 927.5 995.5 (6.8) HK$ million 1500.0 Short Term Borrowings Long Term Borrowings 1000.0 184.5 500.0 927.5 811.0 0.0 As at 31 December 2020 As at 31 December
Slide 7: Key Financial Ratios
KEY FINANCIAL RATIOS 31 Dec 21 31 Dec 20 Current Ratio 0.2 0.4 Quick Ratio 0.1 0.4 Gearing Ratio* 217.2% 174.4 % Inventories Turnover Days 35 Days 33 Days Trade Receivables Turnover Days 50 Days 46 Days Trade Payables Turnover Days** 61 Days 134 Days * Gearing ratio is calculated by debt (i.e. total
Slide 8: Operation Overview
2021 ANNUAL RESULTS Operation Overview 8
Slide 9: Revenue Breakdown
REVENUE BREAKDOWN 2021 Revenue Breakdown Revenue % (HK$ million) 2012 2020 Change Maltose 19% Upstream HFCS Glucose 57% 10% Corn Refined Products 0.8 211.0 (99.6) Maltodextrin 14% Downstream Corn Refined Products Glucose Syrup 70.0 55.3 26.6 0% Maltose Syrup 141.6 103.9 36.3 2020 Revenue Breakdown H
Slide 10: Gross Profit Breakdown
GROSS PROFIT BREAKDOWN 2021 Gross Profit Breakdown Gross Profit % Maltose 20% (HK$ million) 2021 2020 Change Glucose HFCS Upstream 17% 49% Maltodextrin Corn Refined Products 0.1 22.9 (99.6) 14% Corn Refined Downstream Products 0% Glucose Syrup 7.0 5.7 22.8 Maltose Syrup 8.3 9.7 (14.4) 2020 Gross Pro
Slide 11: Sales Analysis
SALES ANALYSIS Sales Volume (’000 MT) Gross Profit Margin (%) % % pt 2021 2020 Change 2021 2020 Change Upstream Corn Refined Products 0** 87 (100.0) 12.5 10.9 1.6 Downstream Corn Syrup 149 136 9.6 5.7 10.4 (4.7) Corn Syrup Solid 29 38 (23.7) 5.4 7.6 (2.2) Sweeteners Sub-total 178 174 2.3 5.8 9.9 (4.
Slide 12: Export Breakdown
EXPORT BREAKDOWN 2021 2020 % Change Export Sales Revenue (HK$ Million) 14.7 26.9 (45.4) Exports Sales Volume (’000 MT) 3 11 (72.7) Export Contribution (%) 2.0 3.5 (1.5) % pt Export Sales by Region 2021 Export Sales by Product 2021 Malaysia Sweeterners 100% 100% 12
Slide 13: CCT – Sales to & Purchase from GBT
CCT – SALES TO & PURCHASE FROM GBT During the Year, the connected 100% transactions between the Group and the GBT Group was kept at minimal 80% level as most of the Group’s production 2020 operations was suspended. 60% 2021 40% 20% 0% 0% 1% 1% 0% Sales to GBT (% to Revenue) Purchase from GBT (% to C
Slide 14: Operating Cost Structure
OPERATING COST STRUCTURE 2021 2020 Raw Material (Corn / Corn Starch) 61.3 % 57.5 % Utilities (Water, Electricity, Steam & Wastewater Treatment) 4.5 % 3.3 % Wages and Salaries 11.1 % 8.9 % Depreciation 7.5 % 8.4 % Production Overhead (Consumable and Packaging Materials) 6.7 % 7.7 % Selling, Administr
Slide 15: Business Outlook & Development Plans
BUSINESS OUTLOOK & DEVELOPMENT PLANS 15
Slide 16: Upstream Raw Material – Corn
UPSTREAM RAW MATERIAL – CORN RMB/MT Corn Price Movement in China (Jan 07 – Mar 22) 3,100 2,900 2,700 2,500 2,300 2,100 1,900 1,700 1,500 1,300 1,100 Source: Feedtrade.com - Based on average price from Northern China (Jilin, Liaoning and Shandong) 2021/22 PRC corn harvest estimates : production at ap
Slide 17: Downstream Substitute – Sugar
DOWNSTREAM SUBSTITUTE – SUGAR RMB/MT Sugar Price Movement in China (Jan 10 – Mar 22) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Source: www.msweet.com.cn In China, 2021/22 sugar production: approx. 10.2 million MT (2020/21: 10.7 million MT) (source: China Sugar Association); consumption
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 ◆ Following the transfer of the ABC Transferred Loans to 中國信達資產管理股份有限公司吉 林省分公司 (Jilin Branch of China Cinda Asset Management Co., Ltd.*) (“China Cinda”)
Slide 19: Corporate Strategies (Con't)
CORPORATE STRATEGIES (CON’T) 3) Relocation opportunities ➢ facilities upgrade ➢ further cost reduction through streamlining and improving production flow ➢ product mix and production capacity re-structure targeting high-end users Due to the challenging economic environment and the continued impact o
Slide 20: 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 21: Capacity Overview
CAPACITY OVERVIEW Designed Capacity (mtpa) 2022 2021 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 Sub
Slide 22: Company Profile
Gr GLOBAL Sweeteners COMPANY PROFILE 22
Slide 23: Corporate Milestones
CORPORATE MILESTONES Global Sweeteners (stock code: The listing of TDR of Global Hao Cheng was established Change in shareholding structure 03889.HK) was listed on the Main Sweeteners (stock code: in Shanghai with a designed Discontinued of GBT’s controlling shareholder; Board of the Stock Exchange
Slide 24: Corporate Structure
CORPORATE STRUCTURE Public 64% 36% 100% 100% 100% 100% 100% 100% Glucose/ Corn HFCS 42 Refinery Maltose (120,000 mtpa) (60,000 mtpa) (800,000 mtpa) Glucose/ Glucose/ Maltodextrin Maltose/ Maltose (30,000 mtpa) HFCS 55 (220,000 mtpa) (200,000 mtpa) Xinglongshan Shanghai Jinzhou 24
Slide 25: Diversified Product Mix
DIVERSIFIED PRODUCT MIX Corn Refinery UPSTREAM Gluten Fibre Corn Starch Corn Oil Corn Sweeteners DOWNSTREAM Corn Syrup Corn Syrup Solid Glucose & Maltose Syrup HFCS Maltodextrin * Sweetness level: 40% * Sweetness level: 80-110% * Sweetness level: 20% • Food & Beverage • Food & Beverage • Food & Beve
Slide 26: Appendix
Gr GLOBAL Sweeteners APPENDIX 26
Slide 27: 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 28: Thank You
X Phe Ha SS FE A BR 2S] * GLOBAL Sweeteners Holdings Limited GLOBAL (incorporated in the Cayman Islands with limited liability) Sweeteners Stock Code: 03889 THANK YOU -- The End -- * For identification purpose only
Global Sweeteners Holdings — FY2021 Earnings Presentation on 6ix