Fountain Set (holdings) Limited · HKEX:420
Fountain Set (holdings) — FY2018 Earnings Presentation
36 slides from Fountain Set (holdings)'s earnings presentation, 2019
Slide 1: 2018 Post-results Investor Presentation
0420.HK 2018 Post-results Investor Presentation 2018业绩發佈後 投资者簡报 1
Slide 2: Disclaimer 免责声明
Disclaimer 免责声明 By attending this presentation and subsequent discussion, or by reading this presentation material, you agree to be bound by the following limitations: 在参加本演讲和随后的讨论后，或阅读 本演讲材料后，表示您同意受以下限制约束： • This presentation and subsequent discussion were prepared by Fountain Set (Holdings) Limite
Slide 3: Disclaimer 免责声明
Disclaimer 免责声明 • Although the information contained in this presentation is obtained or compiled from sources believed to be reliable, no representation or warranty is made. The validity, accuracy, completeness, timeliness, or fairness of the information provided in this presentation and subsequent
Slide 4: FY2018 Financial Information
FY2018 Financial Information 财务信息 4
Slide 5: Shareholding Structure of FSHL
Shareholding Structure of FSHL福田实业集团股權結構 Shareholding Structure of FSHL 福田实业集团股權結構 Shareholding (Note 1) Chinatex Corporation 持股量(附注1) Limited 中国中纺集团有限公司 Chinatex Corporation Limited (Note 2) 442,860,000 36.75% 中国中纺集团有限公司(附注 2) 44.59% Mr. HA C.F. and his family trust share interest Mr. HA C.F. and h
Slide 6: FY2018 – Key Financials
FY2018 – Key Financials 财务概要 (HK$ Mil) (百万港元) Revenue 营业额 7,510.8 ▲8.6% EBITDA 息税折旧及 摊销前利润 429.2 ▲5.5% Profit for the year 是年度盈利 178.3 ▲1.3% Profit attributable to owners of the Company 本公司拥有人应占盈利 160.8 ▲ 2.5% 6
Slide 7: FY2018 – Key Financials
FY2018 – Key Financials 财务概要 (HK$ Mil) (百万港元) EPS– Basic (HK cents) 每股基本 盈利(港仙) 13.3 ▲2.3% Final Dividend 末期股息 10.64 cents港仙 Proposed Dividend per share & Payout Ratio 11.97 Special Dividend (For celebration of 30th listing anniversary ) 1.33 90% 每股拟付股息 ▲1.57 特别股息 cents港仙 ▲10 pp (港仙)及派息比 cents港仙 (为庆
Slide 8: FY2018 – Key Financials
FY2018 – Key Financials 财务概要 Changes (HK$ Mil) 2018 2017 变动 (百万港元) Revenue营业额 7,510.8 6,913.8 ▲8.6 % Gross Profit毛利 820.8 751.5 ▲9.2% GP Margin (%) 毛利率 10.9% 10.9% ----- EBITDA 息税折旧及摊销前利润 429.2 406.8 ▲5.5% EBITDA Margin (%) 5.7% 5.9% ▼0.2pp 息税折旧及摊销前利润率 Profit for the year 178.3 175.9 ▲1.3% 是年度盈利 Pro
Slide 9: FY2018 Results – Key Financials
FY2018 Results – Key Financials 财务概要 (HK$ Mil) 2018 2017 Changes (At 31 Dec) (At 31 Dec) (百万港元) 变动 (于12月31日) (于12月31日) Non-Current Assets 非流动资产 1,771.7 1,746.8 ▲1.4% Current Assets 流动资产 3,892.8 3,842.2 ▲1.3% Current Liabilities 流动负债 1,687.1 1,746.1 ▼3.4% Net Current Assets 流动资产净值 2,205.7 2,096.1 ▲5.
Slide 10: Financial Information
Financial Information 财务信息 (HK$ Mil) (百万港元) 01 Financial Highlights 财务摘要 -0.4 ▼ 33.3% Net Debt/ EBITDA 2.3 ▲0.1pp Ratio 净债务/息税折旧及摊 销前利润率 Current Ratio 流动比率 Bank & Cash (bank deposits inclusive; - 5.3% excluded restricted bank deposits) 975.7 ▲ 14.8% Net Debt to ▼ 1.7 pp 银行结余及现金 Equity Ratio (包括银行存款;
Slide 11: Financial Information
Financial Information 财务信息 Turnover Period 02 周转期 81 ▼5 days Inventory Turnover Period (days) 存货周轉期(日) 60 ▼7 days Trade and Bills Receivable Turnover Period (days) 營業及票據应收款項周轉期(日) 11
Slide 12: Financial Information
Financial Information 财务信息 2018 2017 Changes (At 31 Dec) (At 31 Dec) (于12月31日) (于12月31日) 变动 Bank Borrowings 银行借贷 (HK$ Mil) (百万港元) Total Bank Borrowings总银行借贷 798.5 735.2 ▲8.6% Net Bank Borrowings 银行借贷净值 (191.1) (127.4) ▼50.0% Financial Ratios 财务比率 Net Debt/ EBITDA Ratio (0.4) (0.3) ▲ 33.3% 净债務/ 息税折旧及
Slide 13: Cost Analysis (Y-o-Y)
Cost Analysis (Y-o-Y) 成本分析 (HK$ Mil) (百万港元) Distribution & Selling Expenses 分销及销售费用 181.7 ▲5.1% Admin. Expenses 行政费用 442.7 ▲ 7.2% Finance Costs 融資成本 30.4 ▲34.9% 13
Slide 14: Cost Analysis (Y-o-Y)
Cost Analysis (Y-o-Y) 成本分析 FY18 FY17 Changes For the year ended 31 Dec 31 Dec 变动 截至下列日期止年度 HK$ Mil % of Revenue HK$ Mil % of Revenue % PP 百万港元 占营业额比率 百万港元 占营业额比率 Revenue 营业额 7,510.8 100 6,913.8 100 ▲8.6 N/A Gross Profit 毛利 820.8 10.9 751.5 10.9 ▲9.2 ----- Distribution & Selling Expenses 181.7 2.4 17
Slide 15: Revenue by Business Segments
Revenue by Business Segments 营业额 – 按业务分类 Production & Sales of Garments制造及销售成衣 11.7% (13.2%) ▼ 6,635.6 ▲10.6% Production & Sales of Dyed Fabrics & Yarns 制造及销售色布及纱 88.3% (86.8%) ▲ 875.2 ▼4.3% Production & Sales of Production & Sales of Dyed Fabrics & Yarns Garments 制造及销售色布及纱 制造及销售成衣 GREEN =2018A figu
Slide 16: Revenue by Geographical Segments
Revenue by Geographical Segments (Billing addresses of customers) 营业额 – 按地域分类 (按客户账单地址) Europe 0.3% 欧洲 (0.7%) ▼ Taiwan 10.7%▲ 台湾 (9.5%) Hong Kong 香港 Mainland China 21.8% 中国大陸 (22.5% ) ▼ 22.1% ▲ (20.7%) ▼ Other countries or America regions 美洲 其他國家或地區 ▲ 8.9% (7.4%) 13.2% (13.9%) ▼ Korea 11.6% 韩国 (14.8
Slide 17: Revenue & Profit Margins
Revenue & Profit Margins 营业额及盈利 Y-O-Y H-O-H 7,511 Revenue 营业额 Revenue (HK$ Mil) 营业额(百万港元) 9,000 6,914 Revenue (HK$ Mil) 营业额(百万港元) 6,000 150 Profit (HK$ Mil) 盈利(百万港元) 180.0 Profit for the year attributable to Owners of Profit (HK$ Mil) 盈利(百万港元) 8,000 5,500 6,329 175.9 178.3 5,000 the Company 本公司拥有人应占
Slide 18: Trade & Bills Receivables and Turnover Period
Trade & Bills Receivables & Trade & Bills Receivables Turnover Period 营业及票据应收款项及营业及票据应收款项周转期 (按年比较) Y-O-Y 90 1,500 1,209 1,262 1,237 80 HK$ Mil 百万港元 1,000 Days (日) 70 67 70 500 60 60 0 50 Year FY16 FY17 FY18 Trade and Bills Receivables 營業及票據应收款项 Trade and Bills Receivables Turnover Period 營業及票據应收款项周
Slide 19: Inventory and Bank Borrowings
Inventory and Inventory Turnover Period (Y-o-Y) & Total Bank Borrowings and Net Debt to Equity Ratio (Y-o-Y) 存货及存货周转期 (按年比较)及银行借贷总值及淨负债权益比率 (按年比较) Inventory and Inventory Turnover Period (Y-o-Y) 存货及存货周转期 (按年比较) 2,000 150 Days (日) 1,302 1,410 1,402 1,500 120 Inventory HK$ Mil 百万港元 存货 1,000 92 Total B
Slide 20: Business Review: Factors affecting 2018 Results
Business Review 业务回顾 Factors affecting 2018 Results 影响2018财政年度因素 Fluctuation of cotton/ New markets in Europe yarn price Change in product mix and Japan 棉花/纱缐价格波动 产品组合的变化 欧洲及日本新市场 % of SG&A to sales flat via Dramatically increase in Tighten credit control stringent cost-cutting chemical dyestuff pri
Slide 21: Business Review: What we have done and will continue to do
Business Review 业务回顾 What we have done and will continue to do 已开始并将继续实施 “Sophistication, Integration of quality, uniqueness” Technology production, supply fabric mills strategic automation and and sales positioning Machinery upgrade 「产供销一体化」 「精、優、特」面料廠 技术自动化及机械升 房策略性定位 级 Fountain Set TPM (Total Cos
Slide 22: Business Review: Sales Drive
Business Review 业务回顾 Business Collaboration 协同效应 Clients in Top 10 end- Europe and buyer Japan 10大 欧洲及 最終客户 日本客户 2018/9 Sales Drive 2018/9销售重点 22
Slide 23: Business Outlook
Business Review 业务回顾 Business Outlook 业务前景 Strongly committed to increasing sales with existing quality customers as well as growing new customers 积极致力于藉助优质客户以及不断增长的新客户增加销量 Enhance product R&D 增加产品研发 IT-driven smart production upgrade 資訊化智慧化生產轉型升級 Maintain a prudent and pragmatic approach 保持务实审慎的态度
Slide 24: Group Production Capacity Plan
Group Production Capacity Plan 集团产能计划 End of Fiscal Year FY16 FY17 FY18 Fabric Dyeing (lbs/month) 染布 (磅/月) 25m 27.5m 27.5m Yarn Dyeing (lbs/month) 纱染 (磅/月) 3m 3m 3m Fabric Printing (yds/month) 印花布 (码/月) 4m 4m 4m Fabric Business 布業務 Total Category Lakeside JY Fuhui YC Fuhui Ocean Lanka Million/m 销售类型
Slide 25: Group Production Capacity Plan
Group Production Capacity Plan 集团产能计划 Jiangyin Mill 江阴厂房 Yancheng Mill 盐城厂房 Dongguan Mill 东莞厂房 Sri Lanka Mill 斯里兰卡厂房 25 25
Slide 26: Market Distribution
Market Distribution 市场分布 Geographic Locations % of Sales in 2018 Category Major End Buyers of End-buyers 2018年主营业务 销售类型 主要最终买家 最终买家所在国家或地区 收入占比 Walmart U.S.A. Export Polo Ralph Lauren 1. 美国 外销 69 Gap Kohl’s Marks & Spencer (英国） Europe Export Next（英国） 2. 欧洲 外销 9 George （英国） LIDL（德国） Japan Export GU 3
Slide 27: Global Organization
Global Organization Headquarters -1 环球网络 Hong Kong 香港 Production Facility - 9 China 中国 9 ▪ Knitting & Dyeing Fabric 针织及染色布 ▪ Knitting & Dyeing Yarns 针织及染色纱 ▪ Garment Manufacturing 制衣 Suqian Yancheng ▪ Sewing Threads Manufacturing 宿迁 盐城 缝纫线生产 Shanghai Jiangyin 上海 Jakarta 耶加达 1 江阴 Colombo 科伦坡 1 Ningbo
Slide 28: Position of FSHL in Supply Chain
Position of FSHL in Supply Chain 福田实业集团于供应链之定位 28
Slide 29: Diversified Global Brand Relationships
Established Customer Relationships & Diversified Global Brand Relationships 已建立的客户关系网络和多元化的全球性品牌关系 ▪ Strong business relationships with a broad range of internationally renowned brands ▪ The aggregate revenue attributable to the Group’s five largest customers was less than 30% of the total revenue i
Slide 30: Textiles & Apparel Industry Updates
Textiles & Apparel Industry Updates 纺织与服装行业动态 30
Slide 31: Industry Outlook – Cotton and Cotton Yarn
Textiles & Apparel Industry Outlook - Cotton and Cotton Yarn 纺织及服装行业展望 – 棉花及棉纱 (Source: Cotton Incorporated – Monthly Economic Letter (March 2019)) 31
Slide 32: Industry Outlook – Cotton (CT, NYBOT)
Textiles & Apparel Industry Outlook - Cotton (CT, NYBOT) 纺织及服装行业展望 – 棉花 (CT,NYBOT) (Source: Cotton Incorporated – Monthly Economic Letter (February 2019)) 32
Slide 33: Industry Outlook – World Cotton Balance Sheet
Textiles & Apparel Industry Outlook - World Cotton Balance Sheet 纺织及服装行业展望 – 世界棉花供需情况 (Source: Cotton Incorporated – Monthly Economic Letter (March 2019)) 33
Slide 34: Cotlook A Index of cotton prices
Cotlook A Index of cotton prices Cotlook A 棉花格價指數 Cotlook A Index from 2017 - 2019 100 95 90 85 80 75 70 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 82.33 85.15 86.79 87.04 88.64 84.76 84.09 79.34 80.6 78.6 80.41 85.42 2017 91.06 88.27 92.14 94.24 94.48 97.71 96.18 94.55 90.36 86.8 86.78 86
Slide 35: Collaborations. Boundless Innovation.
> COLLABORATIONS. BOUNDLESS INNOVATION. eee * i “ng > a — ae
Slide 36: Thank you
ees pa Thank you
Fountain Set (Holdings) — FY2018 Earnings Presentation on 6ix