Antelope Enterprise Holdings Limited · NASDAQ:AEHL
Antelope Enterprise — China Ceramics — Investor Presentation (June 2010)
27 slides from Antelope Enterprise's investor presentation, Jun 24, 2010
Slide 1: China Ceramics Co., Ltd. Corporate Presentation
CHINA CERAMICS CO., L CORPORATE PRESENTATION June 15, 2010 China Ceramics Co., Ltd. WWW.CCERAMICS.COM
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements and management may make additional forward-looking statements in response to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of
Slide 3: OTCBB Listed: CCLTF.OB
OTCBB Listed: CCLTF.OB Share Price (06/04/2010): $6.18 52 Week Range: $5.45-$10.01 Market Cap: $62.8 Million Shares Outstanding (03/31/2010): 10.16 Million(2) Average Volume (3 Months): 5,852 Net Cash (3/31/2009): $6.1 Million Revenue (TTM) $130.9 Million Non-GAAP Net Income (TTM): $28.3 Million()4)
Slide 4: China Ceramics is a leading manufacturer of ceramic tiles
China Ceramics is a leading manufacturer of ceramic tiles used for exteri ng and for interior flooring in reside! | and commercial bu “Hengda” or “HD” trademark Founded as Jinjiang Hengda Ceramics in 1993, based in Jinjiang, Fujian Province, China Produces five different types of ceramic tiles and o
Slide 5: Investment Highlights
Investment Highli Profitable and Rapidly Growing Business Leading Position in the Ceramics Tile Market in China + From 2007 through 2009 China Ceramics achieved: + Revenue compounded annual growth rate (CAGR) of 22.8% + Non-GAAP Net Income (excluding Merger Costs) CAGR of 17.1% + _Pre-tax income CAG
Slide 6: Product types: porcelain, glazed and glazed porcelain tiles
* Stronger and harder than other types of oramictiles olor fs the same throughout = Wearesistant and absorbless waterthan, ‘other types of tiles * Hess productintraduced in 2007 + Arealso used for interior walls and. flooring in addition to exterior walls + Aesthetically appealing with greater ‘vers
Slide 7: Established and Loyal Customer Base
Established and Loyal Customer Base Current Distribution Network + Products are sold directly to a network of 37 exclusive distributors and to large real estate developers; 9 of the top 10 customers in 2009 have worked with Hengda for over 10 years, the other for 4 years + Top 10 clients represented
Slide 8: Selected customer projects
Project: China Resources Land Limited Lanxi Town Project Size: 100,000 sq. meters Project: Chengdu Kanjun_ Garden Project Size: 210,000 sq. meters Project: The 11th National Games Village Project Size: 95,000 sq. meters Project: Hangzhou Redbud Garden Project: Shenyang Institute of Aeronautical Engi
Slide 9: Advanced Manufacturing Equipment and Technology
Advanced Manufacturing Equipment and Technology Jinjiang Facility Founded: 1993 an 1 es $98 ooh 3k EON Gaoan Facility [ January 2010 + Capacity of 28 million sq. meters + 9 manufacturing lines; 1,692 employees » Currently operating at 100% capacity + Production lines are fully automated + Over $3 mi
Slide 10: Automated Production
Automated Productio Raw Materials Inspection Mixing and Grinding = + Clay and coloring materials are mixed Ina Water extracted from stury after specific proportion and ground stabilized + Misture's tered to form a surry to 3 Powder of standardized size and specific specific density and flow speed ‘m
Slide 11: Macro-Economic Policies Benefit the Construction Industry
Macro- Economic Policies Benefit the Construction Industry * The building materials industry benefits directly from PRC central government's 4 trillion stimulus plan and China's continuous urbanization. fo PRC central government's 4 trillion [ stimulus plan Affordable: Housing Post Earthquake 10% Re
Slide 12: Urbanization Trend in China Continues to Benefit Construction Industry
Urbanization Trend in China Continues to Benefit Construction Industry ‘Growing Urban Per Capita > The rapid urbanization, population growth and rising standard of Living Space in China living are fueling demand for building materials 30 5 Urbanization Trend in China ar 850) 4% 5 15 I 48% 10 | ions
Slide 13: Continued Growth in China's Housing & Construction Materials
Continued Growth in China’s Housing & Construction Materials + The Chinese construction material market is forecasted to grow with a CAGR of 8.7% through 2013 reaching a value of $323.9 billion + Growth in the New Construction market in China resumed in March 2009 after slowing down in the beginning
Slide 14: The ceramic tile market in China is fragmented
The cer: le market in China is fragmented. The ceramic tile manufacturing industry in China is centralized in four locations: + Foshan, Zibo & Linyi and Jiajiang are known for specializing in manufacturing interior wall and floor ‘ceramic tiles + _ Jinjiang specializes in the exterior wall ceramic t
Slide 15: Consistent track record of execution driving growth
Consistent track record of execution driving revenue and net profit growth. Well recognized “HD” and “Hengda” brands were awarded the coveted “Chinese Well-Known Mark” award by the Central Government Continuous focus on R&D to sustain competitive edge — Granted 33 design patents and 4 utility patent
Slide 16: Gradually expand capacity at the Gaoan plant
Gradually expand capacity at the Gaoan plant to reach target of 42 million sq. meters by end of 2011 » Broaden distribution network Evaluate opportu s to increase expot > Evaluate selective acquisition opportunities that can broaden product line, expand customer base and penetrate new geographic reg
Slide 17: Three Year China Ceramics Management Forecast
Three Year China Ceramics Management Forecast Ain US$ ‘000 / Net Sales COGS Gross Profit Expenses Operating Income Other Income (Loss) Income Before Taxes Income Taxes Net Income EBITDA Revenue Growth Net Income Growth EBITDA Growth Gross Profit Margin Operating Income Margin 2010 2014 2012 $152,985
Slide 18: Strong Track Record of Growth
Revenue (million) aay 8% $900!5 AS — a Ses" YOY increase =34.5% ~il -—- soo B_ Net Income (million) ort 1% crea st 2” $300 $200 TAME increase = 43.5% Teo $00 Pre-tax Income (million) © CAGR=19.5%. $272 Suz YOY increase = 45.9% Strong Track Record of Growth Recent Performance © “* Revenue for Q1 2010
Slide 19: Balance sheet
iin 000's of USD 31-Dec-09 31-Mar-10 Cash 21,957 19,289 Accounts Receivable 39,613 41,469 Inventory 16,770 21,115 Other Current Assets 21,832 874 Non-current Assets 9,411 43,963 Total Assets 109,583 126,710 Accounts Payable 18,465 22,542 Short-term Borrowing 3,876 8,046 Long-term Borrowing - 5,120 O
Slide 20: Transaction with China Holdings Overview
Transaction with China Holdings Overview On November 20, 2009, China Holdings (CHAC, a SPAC), through BVI located intermediary entities, acquired 100% of the equity shares of Jinjiang Hengda Ceramics Co., Ltd (“Hengda”) — China Holdings re-domiciled as a BVI based company and the combined entity is
Slide 21: Attractive Valuation
Attractive Valuation Folly Diluted Shares (ins) 41959 (14.136 Fully Diluted Earnings Per Share (EPS) 262 $3.08 EPsGrowth Rate ® 18% 174% P/E Ratio 25K 25K 20 Assumes a $10.00 Share Pric in mil for share pic 10 11 Fly Diluted Shares {in mm's) 1380315598 17.774 Fay Diluted Earnings Per Share (EPS) SLT
Slide 22: Management team
Huang Jia Dong Chief Executive Officer Founded Jinjiang Hengda Ceramics Co., Ltd. in 1993 20 years of experience in the ceramic tile industry Vice chairman of Fujian Province Ceramic Industry Association Hen Man Edmund Chief Financial Officer Joined in August 2008 Former CFO of a Sichuan switchgear
Slide 23: Board of Directors
Board of Directors Paul K. Kelly Non-Executive Chairman Founder, President and CEO of Knox & Co. and Peers & Co., both international financial advisory firms focused on Asia; over 200 ‘cross-border M&A transactions completed Chairman and CEO of the Westgate Group, Inc., a strategic advisory firm foc
Slide 24: Summary of investment case
China’s urbanization trend expected to drive long-term demand for construction materials Aggressive production ‘capacity expansion to Ww Profitable and rapidly capitalize on growing growing business market demand y x ; . Commitment to » \ ww. manufacturing Leading position technology, R&D and with e
Slide 25: Reconciliation of GAAP to Non-GAAP
Reconci GAAP: RMB’000 Income before tax 212,148 Netincome 152,861 EPS-Basic 24.47 EPS-Diluted 23.65 Non-GAAP Reconciliation Table in of GAAP to Non-GAAP Year ended December 31, 2009 Merger Costs(?) RMB’000 26,429 26,429 Non- GAAP RMB’000 238,577 179,290 28.70 27.74 GAAP) USD’000 31,012 22,345 3.58 3
Slide 26: Contact Information
China Ceramics Co. Ltd. Mr. Edmund Hen, CFO. Email: info@cceramics.com SEC Attorney Loeb & Loeb Phone:+1(212) 407-4000 Contact Information CCG Investor Relations: Mr. Ed Job, CFA Phone: +86-21-3133-5075 Email: ed.job@ccair.com Mr. Bryan Blake, Sr. Ml Executive Phone: +1-646-833-3416 Email: bryan.bla
Slide 27: Thank you
CHINA CERAMICS CO., LTD. Thank you China Ceramics Co., Ltd. WWW.CCERAMICS.COM