Yip's Chemical Holdings Limited · HKEX:408

Yip's Chemical — FY2021 Earnings Presentation

29 slides from Yip's Chemical's earnings presentation, Mar 24, 2022

  1. Slide 1: 2021 Annual Results Presentation

    (SEHK: 00408) (Incorporated in the Cayman Islands with limited liability) 2021 Annual Results Presentation 24 March 2022

  2. Slide 2: Disclaimer

    Disclaimer The information on these slides does not constitute a recommendation by financial adviser or selling agent that any recipient should invest in the Company. Recipients should make their own independent appraisal, evaluation, assessment and investigation as deemed necessary by them. 2

  3. Slide 3: Contents

    1 Results Highlights 2 Consolidated Financial Statements Contents 3 Core Business Analysis & Growth Strategies 4 ESG Journey

  4. Slide 4: Results Highlights

    Results Highlights Record-breaking results amid Progressive shareholder return challenging environment  Full-year dividend amounted to HK40 cents  Revenue and sales volume soared across all per share, up 82% yoy (including special segments dividend)  Profit attributable to owners hit historical 

  5. Slide 5: Diversified Product Portfolio, Strong Brand Positioning

    Diversified Product Portfolio Strong Brand Positioning Solvents Coatings Inks Lubricants The world’s largest Top 10 player in No. 1 player in Branded player in player in the China’s China’s inks automobile acetate solvent coating market* market # lubricants commodity market 78% [ ]% 12% 8% 2% *Bauhi

  6. Slide 6: Financial Highlights

    Financial Highlights For the Year Ended 31 Dec (HK$ million, audited) 2021 2020 % Change Revenue 17,805 10,776 +65% Sales Volume (metric tons) 1,559,000 1,490,000 +5% Gross Profit 2,161 1,723 +25% Gross Profit Margin 12% 16% -4% points Profit Attributable to Owners 406 303 +34% Earnings Per Share HK

  7. Slide 7: Segment Highlights

    Segment Highlights For the Year Ended 31 Dec (HK$ million, audited) Revenue (HK$ million) # Segments^ 2021 2020 % Change Solvents* 14,027 7,868 +78% Coatings 2,037 1,443 +41% Inks* 1,498 1,245 +20% Lubricants 333 220 +51% ^ Properties segment contributed HK$10 million of total revenue in 2021 (2020:

  8. Slide 8: Contents

    1 Results Highlights 2 Consolidated Financial Statements Contents 3 Core Business Analysis & Growth Strategies 4 ESG Journey

  9. Slide 9: Revenue & Sales Volume

    Revenue & Sales Volume Full Year Revenue (Year ended 31 Dec, audited) Full Year Sales Volume (Year ended 31 Dec, audited) Interim Revenue (Period ended 30 Jun, unaudited) Interim Sales Volume (Period ended 30 Jun, unaudited) HK$ million 20,000 2,000,000 17,805 18,000 1,800,000 1,558,636 16,000 1,490

  10. Slide 10: Profit Attributable to Owners

    Profit Attributable to Owners Full Year (Year ended 31 Dec, audited) Interim (Period ended 30 Jun, unaudited) HK$ million 500 406.3 400 302.6 299.8 300 272.9 200 184.8 170.6 100 87.3 88.4 53.6 58.8 0 2017 2018 2019 2020 2021 10

  11. Slide 11: Earnings Per Share

    Earnings Per Share Full Year (Year ended 31 Dec, audited) Interim (Period ended 30 Jun, unaudited) HK cents 80.0 72.8 70.0 60.0 53.8 53.9 50.0 48.4 40.0 32.8 30.2 30.0 20.0 15.5 15.7 9.5 10.4 10.0 0.0 2017 2018 2019 2020 2021 11

  12. Slide 12: Dividend Per Share

    Dividend Per Share Full Year (Year ended 31 Dec, audited) Interim (Period ended 30 Jun, unaudited) Special (Period ended 30 Jun, unaudited) HK cents 45 40 40 35 10 30 22 25 20 20 18 15 16 15 16 13 10 10 10 5 12 5 6 7 6 0 2017 2018 2019 2020 2021 12

  13. Slide 13: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position As of 31 Dec 21 As of 31 Dec 20 % Change (audited, HK$ million) (audited, HK$ million) Non-current Assets 3,026 2,738 +11% Current Assets 7,394 5,701 +30% Current Liabilities (4,654) (3,197) +46% Net current Assets 2,740 2,504 +9% Non-current Liabilities

  14. Slide 14: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows (audited, HK$ million) Year Ended 31 Dec 2021 Year Ended 31 Dec 2020 Net cash inflow (outflow) from: - Operating activities 266 222 - Investing activities (316) (184) - Financing activities 231 (521) Net increase (decrease) in cash and cash equivalents 181 (483)

  15. Slide 15: Liquidity and Financial Resources

    Liquidity and Financial Resources 31 Dec 2021 30 Jun 2021 31 Dec 2020 Net Borrowings (HK$ million) 1,392 1,887 1,059 Gearing Ratio 36.6% 51.7% 31.1% 2021 2020 Capital Investments (HK$ million) 498 154 Banking Facilities Limit (HK$ million) As of 31 Dec 2021 Utilized 2,737 Reserved 3,852 Total 6,589

  16. Slide 16: Contents

    1 Results Highlights 2 Consolidated Financial Statements Contents 3 Core Business Analysis & Growth Strategies 4 ESG Journey

  17. Slide 17: Solvents: Robust growth leading to historical highs

    Solvents Robust growth leading to historical highs (HK$ million) 2021 2020 % Change Revenue 14,027 7,868 +78% Gross Profit 1,304 904 +44% GP Margin 9.3% 11.5% -2.2% points Operating Profit 830 471 +76% Performance Outlook  Export volume reached a record  Decline in raw material prices is high of n

  18. Slide 18: Coatings: Sales expansion amid challenging macro environment

    Coatings Sales expansion amid challenging macro environment (HK$ million) 2021 2020 % Change Revenue 2,037 1,443 +41% Gross Profit 434 424 +2% GP Margin 21.3% 29.4% -8.1% points Operating Profit (Loss) (124) 51.2 N/A Performance Outlook  GP margin slipped due to the drastic  Manage and control our

  19. Slide 19: Inks: Sales increased with significant pressure on margin

    Inks Sales increased with significant pressure on margin (HK$ million) 2021 2020 % Change Revenue 1,498 1,245 +20% Gross Profit 246 265 -7% GP Margin 16.4% 21.3% -4.9% points Operating Profit 47.3 60.8 -22% Performance Outlook  GP margin declined mainly due to rising raw  Build team capacity to bo

  20. Slide 20: Lubricants: Achieved stable and healthy growth

    Lubricants Achieved stable and healthy growth (HK$ million) 2021 2020 % Change Revenue 333 220 +51% Gross Profit 81 58 +40% GP Margin 24.4% 26.5% -2.1% points Operating Profit 19.7 7.59 +160% Performance Outlook  Succeeded in boosting sales  Continue to invest in marketing despite rising raw mater

  21. Slide 21: Damai - Car Maintenance Chain

    Damai - Car Maintenance Chain Prudent expansion of chain store network Chain Store Network of Damai Performance (As of 31 Dec 2021)  Opened 8 new outlets in Guizhou by end of 2021 despite the sporadic outbreaks of pandemic Hebei  A total of 124 outlets (including 62 self-operated stores • 9 self-o

  22. Slide 22: New Venture – Sanitizing Products and Services

    New Venture – Sanitizing Products and Services Enriched product lines to safeguard public health Long-lasting Antimicrobial On-the-Go Sanitizers Coating Service  EUCA continues to serve the rising hygiene demands from consumers as well as various institutions with our sanitizers and long-lasting an

  23. Slide 23: Properties: Effective use of assets

    Properties Effective use of assets  Rental income increased by 14% to HK$10 million, generated from leasing of the R&D centre in Shanghai  Sale of Yip’s Chemical Building in Fanling resulted in a profit of HK$69 million (inclusive of revaluation appreciation and sales profits)  Operating profit r

  24. Slide 24: Outlook 2022

    Outlook 2022 Continue to face challenges in the global macroeconomic 1 environment, including high raw material prices, supply chain disruptions and the ongoing pandemic 2 Explore more opportunities in the domestic market riding on China’s economic rebound 3 Advance the separate listing of the ink b

  25. Slide 25: Contents

    1 Results Highlights 2 Consolidated Financial Statements Contents 3 Core Business Analysis & Growth Strategies 4 ESG Journey

  26. Slide 26: “Home is” Craftsman Impact Project

    “Home is”(匠心･活) Craftsman Impact Project An award-winning CSV showcase in the chemical industry Create Shared Values Garnered  Enhance business profile  Promote maker spirit HKMA/ViuTV & Now TV and brand exposure and craftsmanship Awards for Marketing Excellence Master Club (匠人堂) #Wellness Platfor

  27. Slide 27: Create Long-Term Values

    Create Long-Term Values 2020 Yip’s Chemical ESG Report http://www.yipschemical.com 27

  28. Slide 28: Create Long-Term Values

    Create Long-Term Values 2020 Yip’s Chemical ESG Report http://www.yipschemical.com 28

  29. Slide 29: Thank you

    Thank you Yip’s Chemical Investor Relations Ms. Candy Chan Ms. Connie Fan candy.chan@yipschemical.com connie.fan@yipschemical.com +852 2675 2377 +852 2675 2384 29

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