San Neng Group Holdings Co., LTD. · TWSE:6671
San Neng — Q3 2023 Earnings Presentation
83 slides from San Neng's earnings presentation, Nov 30, 2023
Slide 1: 2023 Q3 Earnings Conference
Sanneng Group Holdings Co., Ltd. 2023 Q3 Earnings Conference Embrace new opportunities for baking consumption and create new value for corporate advantages Reporter: CEO Hsiao, Kai-Feng Nov. 30, 2023
Slide 2: Disclaimer
Disclaimer The information contained in this presentation, including all forward looking information, is subject to change without notice, whether as a result of new information, future events or otherwise, and Sanneng Group Holdings Co., Ltd. (the “Company”) undertakes no obligation to update or re
Slide 3: Agenda
Agenda 1 Company Overview 2 Business Performance 3 Competitive Advantage Analysis 4 Future Prospects 2
Slide 4: Company Overview
1 Company Overview 3
Slide 5: Corporate Culture
Corporate Culture Become the leading brand of professional, service and Vision trustworthy food ware in Asia Promoter of safety, environmental protection, energy Mission saving and carbon reduction of food ware Values Professionalism, integrity, innovation (Business philosophy) Purpose Improve the l
Slide 6: Company Information
Company Information San Neng - KY was established in Apr 2015 • 1982/06 – San Neng Taiwan • Squires Kitchen Jul. 2017 • 2000/08 – San Neng Wuxi • Xin Neng Wuxi Apr. 2019 • 2010/08 – San Neng Japan • San Neng Guangzhou Jan. 2022 • 2015/11 – San Neng Indonesia Chairman : 張瑞榮 (Mr. Jui-Jung Chang) CEO:
Slide 7: Investment Structure
Investment Structure San Neng - KY CAYMAN (6671) 100% East Gain Investment Limited SAMOA 100% 100% 100% 100% San Neng San Neng Hong San Neng Japan San Neng Taiwan (TW) Kong (HK) (JP) Indonesia (ID) 100% San Neng Wuxi (WX) 55% 52.48% 100% Xin Neng Bakeware Squires Kitchen San Neng Guangzhou (XN) Suga
Slide 8: Our Brands
Our Brands B to B market B to C market B to B market B to C market Professional Family/ Premium / Beautiful Life / Quality Heartwarming Professional 7
Slide 9: Our Products
Our Products Main products: R&D, manufacturing and sales of various baking and food utensils products Baking Baking Customized Moulds Tools Food Homeware & Others 8
Slide 10: Our Products
Our Products Baking Moulds Baking Trays, Loaf Pan, Cake Mould, Pie Pan, Mousse Rings…. Baking Tools Whisks, Bowls, Knives, Brushes, Cake Stands… 9
Slide 11: Our Products: Home Products
Our Products Home Products 10
Slide 12: Our Patents
Our Patents As of Oct 31, 2023 Subsidiary Patent type Got Applying Subtotal 2023/10 2022/10 +/- Model patent 26 2 28 TAIWAN Design patent 3 0 3 39 37 2 Invention patent 5 3 8 Invention patent 10 12 22 Utility model CHINA 107 6 113 144 132 12 patent Appearance 9 0 9 patent Utility model 9 0 9 JAPAN p
Slide 13: R&D Achievements
R&D Achievements Annual R&D achievements R&D benefits Unibody Forged Cake Seamless turntable, will not hide dirty, and increase the Turntable strength. The coating allows cakes to bake smoothly and is easier to Cake Mould Coating clean than hard anodization treatment. Opening cake cooling Movable st
Slide 14: R&D Achievements (continued)
Annual R&D achievements R&D benefits Long-lasting cold storage, easy to whip cream, and good molding Condensation Whisk Bowl effect. Metal and plastic are directly injection molded and can be directly Unibody Whisk boiled and sterilized without water seepage. Spliced Laser Welding Reduce mold openin
Slide 15: Business Performance
— BERG » Lo uiaS AES Bs @ #e : Professional Manufacturer of Bakery Equipment @ Business Performance 14
Slide 16: 2023 & 2022 Q3 Consolidated Income Statement
2023&2022 Q3 Consolidated Income Statement In thousands of NTD Account Title \ Period 2023 Q3 2022 Q3 +/- +/- Ratio Operation Revenue 1,403,625 1,368,722 34,903 2.55% Gross Profit 534,874 491,544 43,330 8.82% Gross Margin 38.11% 35.91% 2.19% 6.11% Operation Expense 374,649 359,223 15,426 4.29% Net I
Slide 17: Revenues and EPS
Revenues and EPS 1,550,000 3.00 2.60 2.50 1,500,000 2.13 1,499,980 2.00 1,450,000 1.59 1.50 1,400,000 1,403,625 1.00 1,350,000 1,368,722 0.50 1,300,000 0.00 2021Q3 2022 Q3 2023 Q3 營業收入 revenue EPS(元) (dollar) 17
Slide 18: Financial Ratios
Financial Ratios Projects 2021 2022 2023 Q3 Debt-to-asset ratio (%) 27.32 24.04 22.41 Financial Long-term capital accounts for real Structure estate, plant and equipment ratio (%) 201.30 208.85 213.73 Current ratio (%) Current ratio (%) 234.37 265.06 328.18 Debt-paying Ability Quick ratio (%) 162.26
Slide 19: Financial Ratios (Continued)
Financial Ratios (Continued) Projects 2021 2022 2023 Q3 Return on assets (%) 9.09 6.52 8.21 Return on shareholders' equity (%) 12.27 8.60 10.48 Ratio of operating profit to paid-in capital (%) 40.98 32.12 35.16 Profitability Ratio of pre-tax profit to paid-in capital (%) 42.05 33.68 40.23 Net profit
Slide 20: Six Major Categories
Six Major Categories Analysis of the revenue structure Analysis of the gross profit structure Year Year 2022 Q3 2023 Q3 2022 Q3 2023 Q3 Category Category Customized 33.05% 30.96% Customized 27.42% 30.89% Baking mold 36.30% 39.90% Baking mold 39.88% 40.08% Baking tools 21.79% 22.27% Baking tools 43.1
Slide 21: Brands
Brands Analysis of the revenue structure Analysis of the gross profit structure Year Year 2022 Q3 2023 Q3 2022 Q3 2023 Q3 Brands Brands SN 91.15% 93.13% SN 36.14% 37.99% UN 2.15% 1.39% UN 37.68% 35.97% Agent Brands 6.70% 5.48% Agent Brands 32.25% 40.67% Total 100.00% 100.00% Total 35.91% 38.11% 21
Slide 22: Areas
Areas Analysis of the revenue structure Analysis of the gross profit structure Year Year 2022 Q3 2023 Q3 2022 Q3 2023 Q3 Areas Areas China 64.70% 68.24% China 34.11% 36.31% Taiwan 19.98% 16.22% Taiwan 37.13% 38.78% Asia 13.15% 13.11% Asia 43.20% 45.90% Europe, America Europe, America 2.17% 2.42% 34.
Slide 23: Competitive Advantage Analysis
3 Competitive Advantage Analysis 23
Slide 24: Competitive Advantage Analysis
Comprehensive and Industrial resource stable integration capability distribution system Competitive Advantage Analysis Customized New product research development and leads the market Development capabilities Provide a complete solution 24
Slide 25: Comprehensive and stable distribution
1. Comprehensive and stable distribution Taiwan's domestic market base Northern Area Ⅱ Middle Area Ⅰ 南二區 43 北一區 75 南一區 40 Middle Area Ⅱ Northern Area Ⅰ 中二區 83 北二區 70 中一區 55 Southern Area Ⅰ Southern Area Ⅱ 366 distributors across Taiwan As of Nov 20, 2023 25
Slide 26: China's domestic market base
China‘s domestic market base North China Area Ⅱ 電商83 華東一區 45 華東二區 83 華南二區 130 North China Area Ⅲ 華東三區 79 North China Area Ⅰ West China Area Ⅱ 華西一區 45 East China Area Ⅲ East China Area Ⅰ West China Area Ⅰ 華西二區 43 East China Area Ⅱ 華北一區 65 Fujian 華南一區 154 華北二區 47 South China Area Ⅱ 華北三區71 846 distribu
Slide 27: Industrial resource integration capability
2. Industrial resource integration capability Well-known brands in the baking industry 27
Slide 28: Co-branded with chain store / famous bakers
Co-branded with chain store / famous bakers 28
Slide 29: Co-branded with chain store / famous bakers
Co-branded with chain store / famous bakers 29
Slide 30: Industrial alliance co-branding
Industrial alliance co-branding 30
Slide 31: World Bread Champion Chef Strategy Alliance
World Bread Champion Chef Strategy Alliance
Slide 32: ROR: Gee
ROR: Gee
Slide 33: HBG > Pedi at ALR Be bE
HBG > Pedi at ALR Be bE Professional Manufacturer of Bakery Equipment
Slide 34: Hare BANS
Hare BANS Bie ERBER BIS BNET IMAG: 4% AM 11:00-11:45 Bie ERR FF be PM 14:00-14.45 Sirs Sate (Lewis) Ju < SG RA i 1 8 9 Raz. 97 2 - (A) a i eo! ol(@ Berg AM 11:00 - 11:45 . -E*F#% AM 11-00-1145 Bras settee FFi PM 14:00-14:45 ane sm SAE K806 RE Acs => —_ 34
Slide 35: 35
35
Slide 36: Certificate: largest baking lesson
CERTIFICATE The largest baking lesson consists of 500 participants and was achieved by Jiangsu Daddy ‘Sweety Catering Management Co., Ltd. and SANNENG (both China) in Suzhou, Jiangsu, China, on 1 August 2020 OFFICIALLY AMA n= 68 Oxc PH AK GH RMRTOR ‘Sit MG680KG LUSRRING, RE LGKTPUABE ZS jonal Manufa
Slide 37: Customized research and development capabilities
3. Customized research and development capabilities
Slide 38: Fast food restaurant meal basket
Fast food restaurant meal basket Total sales volume 130,000+
Slide 39: Total sales volume
Total sales volume 13,000,000+
Slide 40: Rice Dumpling Mould
Rice Dumpling Mould
Slide 41: IMIBS:
IMIBS: 682
Slide 42: Old Shanghai Landmark - Wukang Building
Old Shanghai Landmark- Wukang Building
Slide 43: Starbucks customized products
Starbucks customized products
Slide 44: JBCW Customized - Grilled Fish Plate
JBCW Customized-Grilled Fish Plate
Slide 45: New product development leads the market
4. New product development leads the market Dessert Spoon 45
Slide 46: — BEA + Ce ih EL MEME RNS PBL
— BEA + Ce ih EL MEME RNS PBL = GH) AE Professional Manufacturer of Bakery Eauipment 46
Slide 47: Carving knife/paring knife
Carving knife/paring knife 47
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48
Slide 49: Transformers Burger Mould
=& <s) 3) AE eke » Pediat AMR ea Rs Professional Manufacturer of Bakery Eauipment > Transformers Burger Mould
Slide 50: Provide complete solutions - diagnostic services
5. Provide complete solutions - diagnostic services
Slide 51: Baguette Stacking Problem - Rimless Baguette
Baguette Stacking Problem－ Rimless Baguette No borders, easy to stack, save space; Reduce weight and save costs; Reduce the accumulation of dirt and evil; Easy to clean and better demolding
Slide 52: Labor-intensive product removal - Slant baking pan
The labor-intensive problem of product removal － Slant baking pan 52
Slide 53: Slide 53
Slide 54: Product quality improvement - packaging design
Product quality improvement-packaging design
Slide 55: Future Outlook
BRE > Peviteet A eT Be 3 J Future Outlook Professional Manufacturer of Bakery Equipment 55
Slide 56: Future Outlook
Future Outlook 1. R&D aspect - comply with legal egulations/trend of the times 2. Industry Aspect - Catering/Outdoor Products 3. Channel aspects - self-media/live broadcast/courses 4. Product aspect - products and processes are in line with ESG trends 5. Market aspect - expanding the Southeast Asian
Slide 57: R&D aspect - future R&D plan
1. R&D aspect-future R&D plan Development of next-generation anti-stick coating technology for surface of food utensils R&D of more energy-saving baking equipment Surface hydrophobic treatment technology of steel plates and aluminum plates Plastic reduction products/heat-resistant plastic product de
Slide 58: Industry Aspect - Catering/Outdoor Products
2. Industry Aspect--Catering/Outdoor Products Catering Market 58
Slide 59: Ilva ee hh > BS
Ilva ee hh > BS
Slide 60: Dine > fet ae LSS
Dine > fet ae LSS Minis k OM<H-TS SeRaH\ ‘SaEnEs maxan ~ \ ee cee :
Slide 61: = AC wne ar
= AC wne ar . ‘ nae Ee my BR +
Slide 62: — Bee ~ Pot dt ASE eat
— Bee ~ Pot dt ASE eat = @ ve . > BdobAmms DRAB PEEK B PABST LAE | SRK Be HRA BOUT RAR » 5 ODE SE SERS BIANES Ch BHR AU RET APR RMT REED te ele SO RABANNE SUPRR MANS ROSS Ls) RAS BF SALLE AE LE ME ER LL oR FAS, PEAS Bt LS AN TRIE EA BAP ALB IR- 62
Slide 63: More than 30 kinds of commercialized products
More than 30 kinds of commercialized products 63
Slide 64: jonal Manufacturer of Bakery Equipment
> fe RE = jonal Manufacturer of Bakery Equipment SANTENG
Slide 65: Slide 65
Slide 66: 66
66
Slide 67: Channel aspects - Live Broadcast
3. Channel aspects – self-media/ live broadcast/courses Live Broadcast • Sanneng actively participates in and executes the live broadcast through SK Company. • Currently, we also develop and provide live broadcast solutions for many alliance companies. 67
Slide 68: Course
Course • Current partner colleges: • 叁拾而立烘焙學院 • 麵包研修社 • 王森西點烘焙學院 68
Slide 69: Agent operation
Agent operation • Increase operating income • Increase the added value of fans 69
Slide 70: — Bee ~ Pot dt ASE eat
— Bee ~ Pot dt ASE eat = @ ve . Professional Manufacturer of Bakery Equipment Zeelandia a @)s Sto) AT gee [BAKER'S KINGDOM] \% JOR Feeeseee am = Taobaocom — fase iSO KiNSe RMD Ea @ HS |anmanewarene @ # O oa Whipping Cream ~— Ee, HaseMmRee a SHMGRE, BMOSIRNONED
Slide 71: Products and processes in line with ESG trends
4. Product aspect—products and processes are in line with ESG trends 71
Slide 72: Plastic-reduced product
Plastic-reduced product wood fiber powder Oyster shell powder coffee grounds Annual plastic use of 222 metric tons of plastic produces approximately 600 tons of carbon dioxide 72
Slide 73: a» sess feb Bi ELE Be |
Il a» sess feb Bi ELE Be | wy) FE WOOL PASTRY BRUSH BARE ERI eemaN, ARSE
Slide 74: s/S BOWL
s/S BOWL SCRAPER-WPC HANDLE AW AZ Bl 7] - 2B AK 74
Slide 75: Antibacterial Products
Antibacterial Products Food safety upgrade Antibacterial products
Slide 76: HBG > Pedi at ALR Be bE
=@ se HBG > Pedi at ALR Be bE ARS 5: EGZ2303090076C00101R FU: 2023 4 03 A 21. 2H HH WER: Pn eA 1 Sire WAR: HME: GBT 31402-2015* POMS: EET esbSOHE Fabs HURRAY en 208 | eps een ERI Oh seawsase oan | teenie on | FEM | ogy | Br BINNIE SHIA BL PAE RL (%) (cfulem?) (cfulem?) (cfulem?) H Pendle 4.8x10" 2.5
Slide 77: Energy-saving products - low sugar toast mold
Energy-saving products-low sugar toast mold
Slide 78: Non-stick recoating treatment process
Non-stick recoating treatment process Heavy Medium Light 78
Slide 79: Recoating Process
Recoating Process Coating Backside New Frontside Backside Removal Cleaning Coating 79
Slide 80: Chinese Grill Fish Pan, Korean BBQ grid
SANNENG Professional in Bakeware Chinese Grill Fish Pan Korean BBQ grid 80
Slide 81: Expanding the Asian market
Expanding the Asian market Korea Based on Taiwan, deep in Asia, and China Japan go global! Asia Layout Thailand Philippines Westward：Strengthen industrial resource cooperation and jointly serve major customers Malaysia Southward：Gradually expand ASEAN market based on Sanneng Indonesia Northward：Expl
Slide 82: ABs
ABs RmBARSEKR RABI RE AO HES
Slide 83: Thank You
Thank You 83
Sanneng Group Holdings — Q3 2023 Earnings Presentation on 6ix