China Lesso Group Holdings Limited · HKEX:2128
China Lesso — H1 2020 Earnings Presentation
25 slides from China Lesso's earnings presentation, August 2020
Slide 1: 2020 Interim Results Corporate Presentation
2020 Interim Results Corporate Presentation August 2020
Slide 2: Disclaimer
Disclaimer The slides/materials used in this presentation are strictly confidential. The information contained in this presentation is being furnished to you solely for your information and may not be taken away, reproduced, redistributed, or passed on, directly or indirectly to any other person (wh
Slide 3: Agenda
Agenda 01 Results Highlights 02 Financial Review 03 Business Review 04 Outlook 3
Slide 4: Results highlights
Results highlights ❖ Against the backdrop of the COVID-19 outbreak, the Group was steadily resuming production and proactively captured opportunities that arose from a recovery in the market recovery in Q2 when the situation of the pandemic stabilized, achieving growth in its overall business in the
Slide 5: Results highlights
Results highlights ❖ Focus on establishing strategic partnerships with central government-owned enterprises and state-owned construction companies to seize opportunities arising in the industry’s development ❖ Actively expand foreign markets with a focus on the Southeast Asian market, existing produ
Slide 6: Agenda: Financial Review
Agenda 01 Results Highlights 02 Financial Review 03 Business Review 04 Outlook 6
Slide 7: Steady revenue growth
Steady revenue growth Total revenue Total revenue (by business segment) (RMB million) 1H2020 Supply Chain Service Platform Environmental protection +3.2% 1.3% Business 11,137 11,492 2.2% Others* 203 210 Building materials 1.8% 149 151 256 & interior decoration 137 743 572 products 6.5% Plastic pipin
Slide 8: Overall cost structure
Overall cost structure 1H2019 1H2020 Other Other overheads overheads 1.3% 3.7% Depreciation & Depreciation & amortization amortization 3.6% 4.2% Utilities Utilities 2.9% 3.1% Wages Wages 6.0% 6.8% Raw materials Raw materials 86.2% 82.2% 8
Slide 9: GP & NP continued to increase
GP & NP continued to increase GP and GP margin NP & NP margin (RMB million) (RMB million) 4,000 11.5% 12.1% 29.4% 11.3% 12% 28.6% 28.7% 10,000 30% 10.3% 26.2% 3,028 3,000 7,537 9% 7,500 2,446 6,228 20% 2,000 +10.3% +5.6% 6% 5,000 1,386 3,200 3,380 1,257 10% 2,500 1,000 3% 0 0% 0 0% 2018 2019 1H2019
Slide 10: Healthy & stable key financial indicators
Healthy & stable key financial indicators Trade receivable days Trade payable days (days) 51 (days) 43 39 118 102 98 Jun-19 Dec-19 Jun-20 Jun-19 Dec-19 Jun-20 Inventory turnover days* Cash & bank deposits (days) (RMB million) 81 84 67 7,604 7,152 5,922 Jun-19 Dec-19 Jun-20 Jun-19 Dec-19 Jun-20 * Rem
Slide 11: Remained stable in return ratios
Remained stable in return ratios Return on equity(1) Return on assets(2) Return on invested capital(3) 17.7% 16.3% 15.7% 9.9% 7.4% 9.0% 7.0% 8.4% 6.6% Jun-19 Dec-19 Jun-20 Jun-19 Dec-19 Jun-20 Jun-19 Dec-19 Jun-20 (1) Net profit divided by total equity at the end of the period (2) Net profit divided
Slide 12: Agenda: Business Review
Agenda 01 Results Highlights 02 Financial Review 03 Business Review 04 Outlook 12
Slide 13: Plastic piping systems business: revenue & sales volume
Plastic piping systems business: revenue & sales volume Segment revenue Segment sales volume (tonnes) (RMB million) +7.1% 1,081,998 +0.7% 1,009,853 10,067 10,141 1H2019 1H2020 1H2019 1H2020 13
Slide 14: Plastic piping systems business: revenue breakdown by region
Plastic piping systems business: revenue breakdown by region 1H2019 1H2020 Outside Outside Outside Outside Southern China Southern China 43.8% 2.2% 43.7% 1.5% Southern Southern China China 54.0% 54.8% 14
Slide 15: Plastic piping systems business: revenue analysis
Plastic piping systems business: revenue analysis 1H2019 1H2020 Gas Gas 1.7% Others (1) Others (1) 1.5% 3.9% 4.2% Power supply Power supply By & tele- & tele- communication communication application 17.6% 17.0% Water Water Drainage Drainage supply supply 37.8% 38.4% 39.0% 38.9% Non-PVC (2) Non-PVC (
Slide 16: Plastic piping systems business: ASP & GP margin analysis
Plastic piping systems business: ASP & GP margin analysis ASP per tonne – by material GP margin – by material (RMB) 15,820 15,431 16,003 14,577 29.2% 31.0% 32.0% 28.7% 8,116 8,116 8,170 7,789 29.1% 28.5% 26.6% 23.8% 2018 2019 1H2019 1H2020 2018 2019 1H2019 1H2020 PVC products Non-PVC products PVC pr
Slide 17: Plastic piping systems business: production capacity & utilization rate
Plastic piping systems business: production capacity & utilization rate Annual designed production capacity & average utilization rate (million tonnes) 84.8% 80.7% 80.0% 88.0% 3 2 2.70 2.85 2.62 2.78 1 0 2018 2019 1H2019 1H2020 17
Slide 18: Building materials & interior decoration products
Building materials & interior decoration products Strengthen promotion to existing customers, actively engage new customers and increase sales by provision of diversified product portfolio ❖ To cope with the impact from pandemic, local governments implemented more city-specific policies on the regul
Slide 19: Environmental protection business
Environmental protection business One-stop environmental protection service provider to contribute to the green life of residents ❖ Actively fosters its environmental protection business by capitalizing on municipal projects in various fields and to create synergy between its environmental protectio
Slide 20: Supply chain service platform business
Supply chain service platform business Build a multinational platform for China manufacturers of home furnishings, building materials and consumer products ❖ Recorded revenue of RMB256 million in 1H2020 ❖ Focus on the development in Southeast Asian market, the Group has projects in Thailand, Myanmar
Slide 21: Agenda: Outlook
Agenda 01 Results Highlights 02 Financial Review 03 Business Review 04 Outlook 21
Slide 22: Future prospect
Future prospect Achieve centralized automated & intelligent production to enhance efficiency Focus on R&D to improve product quality ❖ Build its own system for industrial internet ❖ Strive to enhance its competitiveness in the ❖ Press ahead with the automation of its R&D of products and technologies
Slide 23: Q&A
Q&A 23
Slide 24: Appendix: Financial summary
Appendix: Financial summary Statement of profit or loss (RMB million) Statement of financial position (RMB million) 2018 2019 1H2019 1H2020 2018 2019 1H2019 1H2020 Revenue 23,734 26,345 11,137 11,492 Cash & bank 6,452 7,604 5,922 7,152 Gross profit 6,228 7,537 3,200 3,380 deposits EBITDA 4,409 5,556
Slide 25: Appendix: Advanced production bases
Appendix: 25 Advanced production bases 25
China Lesso Group Holdings — H1 2020 Earnings Presentation on 6ix