Zheneng Jinjiang Environment Holding Co., Ltd. · SGX:BWM
Zheneng Jinjiang Environment — FY2020 Earnings Presentation
35 slides from Zheneng Jinjiang Environment's earnings presentation, March 2021
Slide 1: FY2020 Results Corporate Presentation
FY2020 Results Corporate Presentation March 2021 1
Slide 2: Important Notice
Important Notice This document has been prepared by Zheneng Jinjiang Environment Holding Company Limited ( “Zheneng Jinjiang Environment" or the "Company"), solely as presentation materials to be used by the Company’s management. The information is current only as of its date and shall not, under an
Slide 3: Contents
Contents 1. Company Overview 2. FY2020 Financial Highlights 3. FY2020 Operational Highlights 4. Growth Strategy 3
Slide 4: Company Overview
Company Overview 4
Slide 5: About Zheneng Jinjiang Environment
About Zheneng Jinjiang Environment • First mover and leader in PRC’s Waste-To-Energy (WTE) industry, as well as one of the first WTE operators in the PRC • Established PRC’s first WTE plant using Circulating Fluidised Bed (CFB) incineration technology in 1998 and built a track record spanning over 2
Slide 6: Extensive Network in China and Overseas
Extensive Network in China and Overseas CHINA 22 WTE facilities* & Current waste treatment capacity: 1 Organic Waste Treatment project* & 38,060 tons/day 6 Resource Recycling projects When fully completed, total capacity to reach 63,206 tons/day in Operation In 13 provinces autonomous regions and ce
Slide 7: Important Milestones
Important Milestones Established In 1998, with leading Waste-to-Energy (WTE) treatment capacity in the PRC 2017 1999 21 August 2019 15 July 2020 2004 • First foray into India; secured 3 PRC government Zheneng Provincial Energy Zheneng Jinjiang WTE projects approved The IFC, a Group Co., completed th
Slide 8: About Zhejiang Provincial Energy Group Co., Ltd (Zheneng Group)
About Zhejiang Provincial Energy Group Co., Ltd (Zheneng Group) • State-owned provincial energy enterprise involved mainly in energy-related businesses • Strong capabilities across the entire energy production value chain, with resources and strong financial expertise that will facilitate the Compan
Slide 9: Strong Shareholding Structure
Strong Shareholding Structure Strong Shareholder Background Provides Firm Support For Company’s Development (1) Zhejiang Provincial Energy 100.00% Group Co., Ltd Zheneng Capital Holdings Co., Ltd. 63.29% 60.00% 40.00% Mr Dou Zhenggang Zhejiang Energy International Co., Ltd. Hangzhou Jinjiang Group D
Slide 10: Strong Management Team
Strong Management Team Key Management Team Members Have More Than 20 Years Of Industry Experience As at 31 December 2020 • More than 20 years of corporate leadership and senior management experience in the energy industry • Member of the Nominating Committee • Served as the General Manager of Zhenen
Slide 11: FY2020 Financial Overview
FY2020 Financial Overview 11
Slide 12: FY2020 Key Financial Overview
FY2020 Key Financial Overview FY2020 revenue decreased 20.4% year-on-year to approximately RMB 3,084.7 million Key recurring income from core revenue contributor Waste-to-Energy Business recorded 10.6% growth to RMB2,443.1 million FY2020 gross profit fell 6.0% to RMB892.5 million, but gross profit m
Slide 13: Results Overview
Results Overview RMB million FY2020 FY2019 Change (%) Revenue 3,084.7 3,877.5 (20.4) Including: 2,443.1 2,209.2 10.6 WTE Business Revenue Gross Profit 892.5 949.8 (6.0) Profit Before Tax 477.7 306.2 56.0 Profit after tax attributable 326.9 153.3 113.2 to owners of the Company Changes in profit attri
Slide 14: Revenue Overview
Revenue Overview WTE Business Is The Main Revenue Contributor (RMB million) WTE BOT Construction EMC and project technical and management service CAGR 3,877 9.76% 315 20.4% 3,031 3,084 212 2,632 2,715 1,353 578 429 283 391 1,936 645 728 556 273 322 2,443 2,209 1,768 1,808 1,621 1,341 FY2015 FY2016 F
Slide 15: Revenue Breakdown by Business Segment
Revenue Breakdown by Business Segment WTE BOT Construction (RMB million) 10.6% CAGR: 12.8% CAGR: 5.7% 2,443 2,209 1,768 1,808 1,621 1,353 68.3% 1,341 728 645 556 429 325 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Steady growth in WTE revenue due to: BOT busin
Slide 16: Gross Profit & Gross Profit Margin
Gross Profit & Gross Profit Margin CAGR: 2.5% Segmental Gross Profit FY2020 FY2019 Change (RMB million) WTE 712.4 616.3 15.6% 40.7 39.9 6.0% 38.1 BOT Construction* 97.1 208.5 -53.4% 34.4 EMC Business 83.0 125.0 -33.6% 28.9 24.5 Segmental Gross Profit Margin FY2020 FY2019 WTE 29.2% 27.9% BOT Construc
Slide 17: Capital Structure
Capital Structure Total Assets & Net Assets (RMB million) 17,950 Total Assets Net Assets 16,609 14,594 5,603 5,815 6,103 31 December 2018 31 December 2019 31 December 2020 Interest-bearing Debt/Total Assets EBITDA and Interest expense EBITDA/Interest EBITDA Interest 3.0 1,277.0 2.8 1,218.0 1,091.0 2
Slide 18: Prudent Capital Management
Prudent Capital Management Our Capital Management Policy Annual Adoption of a Reduce liquidity repayment and 30:70 equity-to- flexible financing Spacing out of pressure by rolling over of a debt ratio Continue to policy and aims CAPEX based extending large proportion maintained for lower financing t
Slide 19: Secures up to US$270 million Term Loan Facility
Secures up to US$270 million Term Loan Facility Secured a US dollar syndicated term loan facility of up to US$270,000,000 (the “Facility”) under a facility agreement (“Agreement”) with Standard Chartered Bank (Hong Kong) Limited as original mandated lead arranger and bookrunner and agent of the fina
Slide 20: FY2020 Operational Highlights
FY2020 Operational Highlights 20
Slide 21: COVID-19 Updates
COVID-19 Updates Impact on Business ü At the beginning of 2021, there were outbreaks in multiple local q As of the fourth quarter of year 2020, the Company has areas in China, bringing uncertainty to the continued economic preliminarily recovered from the impact of the COVID-19 recovery. pandemic, a
Slide 22: Operational Analysis
Operational Analysis Electricity Generated (‘000 KWh) On-Grid Electricity Supplied (‘000 KWh) 3,081,622 2,298,994 2,750,978 1,987,809 12.0% 15.7% FY2020 FY2019 FY2020 FY2019 Steam Supplied (‘000 tonnes) Waste Treated (‘000 tonnes) 2,803 2,639 5.9% 9.2% 10,661 9,764 As at 31 December 2020 FY2020 FY20
Slide 23: Extensive Portfolio in the PRC with Growing Overseas Footprint
Extensive Portfolio in the PRC with Growing Overseas Footprint As at 31 December 2020 Zheneng Jinjiang Environment Total Capacity 63,206 tons/day China Projects India Projects No. of Project Category Capacity No. of Projects Project Category Capacity projects 2 In the Preparatory 2,106 tons/day 23 O
Slide 24: China – Our Extensive Footprint
China – Our Extensive Footprint Installed Capacity In Operation Under Preparation Under Construction or Expansion Waste recycling projects (tons/day) Heilongjiang Hebei Inner Mongolia Suihua Green Energy BOO, 800 Tangshan Jiasheng BOO, 1000 Hohhot New Energy BOO, 1,000 Qitaihe Green Energy BOO, 1,00
Slide 25: FY2020 Operational Updates
FY2020 Operational Updates In FY2020, the Group’s project construction proceeded in an orderly manner in accordance with the set plan. Key updates below: ü The Group’s waste treatment capacity increased by 1,000 tons/day, due to the first phase of the Linzhou Jiasheng WTE Facility in Henan Province,
Slide 26: FY2020 Operational Updates
FY2020 Operational Updates New Projects under Construction New Projects under Preparation Songyuan Kitchen Waste and Expansion of Hohhot Sludge Resource Recycling First phase of Zhongwei Project Increase WTE Facility in Inner project Increase • BOT phased construction 750t/d Mongolia Jilin 500t/d •
Slide 27: Government Subsidies
Government Subsidies WTE Facilities Location Date of inclusion Hohhot New Energy WTE Facility Inner Mongolia September 2020 Jilin Xinxiang WTE Facility Jilin Province October 2020 Songyuan Xinxiang WTE Facility Jilin Province Gaomi Liliangmingde WTE Facility Shandong Province Wuhu Jinjiang WTE Facil
Slide 28: Government Recognition
Government Recognition – National High-Tech Enterprise Award Ten subsidiaries were awarded the “National High-Tech Enterprise” certification Awarded by the respective Provincial Departments of Science and Technology (省级科学技术厅), Provincial Departments of Finance (省级财政厅) and Taxation Bureau of the Stat
Slide 29: Growth Strategy
Growth Strategy 29
Slide 30: In the future, we will work to…
In the future, we will work to… 1. Maintain leading market position 2. Continuously improve technical capabilities • Localisation of advanced pre-treatment • Expanding waste treatment capacity of existing technologies from Europe, in synergy with facilities and pursue capacity increment our own • Se
Slide 31: 1. Maintain Leading Market Position
1. Maintain Leading Market Position 3 Main Strategy Pillars For Capacity Expansion And Growth Increase the capacity Acquire underperforming of waste treatment in New region and new facility existing facilities, projects with growth potential and pursue capacity increment • Management restructuring •
Slide 32: 2. Continuously Improve Technical Capabilities
2. Continuously Improve Technical Capabilities • Localised advanced European pre-treatment technology, coupled with own Research & Development and completed the promotion and application at Linzi WTE Plant in Zibo City (in operation) and Shijiazhuang Jiasheng WTE Facility in Hebei (in construction)
Slide 33: 3. Diversify Within the WTE Value Chain
3. Diversify Within the WTE Value Chain Expand the scope of WTE business to the relevant areas Potential diversification areas for WTE 1. Turning waste into resources 2. Sludge Treatment 3. Animal Carcass Treatment • Currently, there are 11 waste recycling • Currently, there are 6 urban • Invested i
Slide 34: 4. Expand Internationally
4. Expand Internationally • Seeking project opportunities from the ‘Belt and Road Initiative’ • Improve brand image and international reputation to be a world-class WTE management company • Riding on the “Belt and Road Initiative”, to strive to internationalise its WTE business and establish demonst
Slide 35: Thank You
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Zheneng Jinjiang Environment Holding Company — FY2020 Earnings Presentation on 6ix