Yip's Chemical Holdings Limited · HKEX:408
Yip's Chemical — H1 2012 Earnings Presentation
32 slides from Yip's Chemical's earnings presentation, 2012
Slide 1: 2012 Interim Results Announcement
(SEHK: 00408) 2012 Interim Results Announcement Presenters: Mr. Tony Chi Shing Ip (Chairman of the Group) Mr. Stephen Tsz Hin Yip (Deputy Chairman of the Group & Chairman of the Group Executive Committee) Mr. Johnson Sai Hou Ho (CFO)
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
Slide 3: Agenda
Agenda Chairman’s Remarks Financial Highlights Consolidated Financial Statements Core Business Analysis Outlook 2012 CSR Development 3
Slide 4: Chairman's Remarks
WY SUL YIPSCHEMICAL Chairman’s Remarks
Slide 5: Chairman's Remarks
Chairman’s Remarks Yip’s Chemical shows solid improvement Turnover in the first half of this year rose 7% from last year to HK$4,045,144,000 Profit attributable to owners up 20% from last year to HK$123,875,000 A 15% growth in tonnage terms despite a decline in selling prices at 7% Cautiously optimi
Slide 6: Financial Highlights
WY SUL YIPSCHEMICAL Financial Highlights
Slide 7: Financial Highlights
Financial Highlights Six months ended 30 Jun (HK$’000, unaudited) 2012 2011 % Change Turnover 4,045,144 3,768,244 +7% Gross Profit 657,713 519,222 +27% Gross Profit Margin +2.5% 16.3% 13.8% point Net Profit Attributable to Owners 123,875 103,119 +20% Earnings Per Share HK 22.3 cents HK 18.6 cents +2
Slide 8: Financial Highlights
Financial Highlights Six months ended 30 Jun (HK$’000, unaudited) Turnover (HK$’000) % Breakdown# Products 2012 2011 % Change 2012 2011 Solvents* 2,394,488 2,351,372 +2% 59% 62% Coatings 1,486,247 1,251,954 +19% 37% 33% Lubricants 202,890 191,831 +6% 5% 5% * Non-controlling interests in solvents bus
Slide 9: Operating Profits
Operating Profits 2011 (6-mth, unaudited) 2012 (6-mth, unaudited) HK$'000 160,000 140,000 132,808 124,714 120,000 - 6% 100,000 80,000 68,490 60,000 40,000 18,401 20,000 +272% 2,808 0 -20,000 -7,373 Solvents * Coatings Lubricants * Non-controlling interests in solvents business 9
Slide 10: Consolidated Financial Statements
Consolidated Financial Statements 10
Slide 11: Turnover
Turnover Full Year (Year ended 31 Mar, audited) Full Year (Year ended 31 Dec, audited) Interim (Period ended 30 Sep, unaudited) Interim (Period ended 30 Jun, unaudited) HK$ million 10,000 9,000 8,276 8,000 7,038* 7,000 5,456 6,000 5,090 4,648 5,000 4,045 3,768 4,000 3,085 3,155 2,676 3,000 2,350 2,0
Slide 12: Net Profit Attributable to Owners
Net Profit Attributable to Owners Full Year (Year ended 31 Mar, audited) Full Year (Year ended 31 Dec, audited) Interim (Period ended 30 Sep, unaudited) Interim (Period ended 30 Jun, unaudited) HK$ million 500 450 378.1 400 350 309.5* 300 275.2 224.2 227.7 250 201.3 200 155.4 158.0 150 116.2 123.9 1
Slide 13: Dividend Per Share
Dividend Per Share Full Year (Year ended 31 Mar, audited) Full Year (Year ended 31 Dec, audited) Interim (Period ended 30 Sep, unaudited) Interim (Period ended 30 Jun, unaudited) HK cents 40 35 32 30 25 25 24 25 22* 20 15 12 12* 12# 10 10 10 8 5 0 2007/08 2008/09 2009/10 2010 2011 2012 Strong commit
Slide 14: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position As of 30 Jun 12 As of 31 Dec 11 % Change (unaudited, HK$’000) (audited, HK$’000) Non-current assets 1,681,992 1,537,325 +9% Current assets 4,658,571 4,903,117 -5% Current liabilities (2,318,105) (2,405,248) -4% Net current assets 2,340,466 2,497,869 -6% N
Slide 15: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Six-month period Six-month period (unaudited, HK$’000) ended 30 Jun 2012 ended 30 Jun 2011 Net cash inflow (Outflow) - Operating activities (59,063) (241,805) - Investing activities 115,563 (29,615) - Financing activities (132,388) 275,706 Net (decrease)/increase
Slide 16: Liquidity and Financial Resources
Liquidity and Financial Resources HK$1,247,240 30 Jun 2012 Net Borrowing (Gearing Ratio: 48.4%) (HK$’000) HK$997,944 31 Dec 2011 (Gearing Ratio: 40.4%) Capital 2012 (Estimated) 2011 (Actual) Investments 514,000 359,000 (HK$’000) Banking Facilities Utilized 2,265,592 Utilization Reserved 2,269,246 (H
Slide 17: Core Business Analysis
Core Business Analysis Solvents Coatings Lubricants 17
Slide 18: Solvents
Solvents (HK$’000) 2012 2011 % Change Turnover 2,394,488 2,351,372 +2% Gross Profit 227,879 219,011 +4% GP Margin 9.5% 9.3% +0.2% point Operating Profit 124,714 132,808 -6% Wide fluctuations in oil prices, sluggish economies at home and abroad and marked slowdown in market demand have all contribute
Slide 19: Coatings
Coatings (HK$’000) 2012 2011 % Change Turnover 1,486,247 1,251,954 +19% Gross Profit 356,919 237,142 +51% GP Margin 24.0% 18.9% +5.1% point Operating Profit 68,490 18,401 +272% Turnover has reached a new historical high while profitability has improved markedly Sales volume up 15% Modest drop in raw
Slide 20: Coatings
Coatings Turnover (HK$'000) 26.00% 30.50% $387,254 $453,221 Household Industrial Coatings Paints Inks 43.50% $645,772 Positive effects of the following measures becoming increasingly evident: Stimulate a surge in sales in a bid to raise plant utilisation rates Formulate an internal technology platfo
Slide 21: Lubricants
Lubricants (HK$’000) 2012 2011 % Change Turnover 202,890 191,831 +6% Gross Profit 41,157 41,524 -1% GP Margin 20.3% 21.6% -1.3% point Operating Profit (7,373) 2,808 N/A Due to a drop in market demand, competition within the industry was severe With business environment expected to turn for the bette
Slide 22: Outlook 2012
WY SUL YIPSCHEMICAL Outlook 2012
Slide 23: Continued Technological Advancement to Boost Competitiveness
Continued Technological Advancement to Boost Competitiveness Solvents Continuous capacity expansion, energy consumption reduction and market share enlargement in peripheral provinces and export markets A high-level strategic focus group has been formed to identify opportunities of developing upstrea
Slide 24: Continuous Strong Earnings Improvement: Coatings
Continuous Strong Earnings Improvement Coatings Step up efforts in brand building Expand sales of Bauhinia’s exclusive branded products Strengthen technology platform to spur further growth Strong focus on R&D capability – the Group R&D Centre will be a bright spot Continue to raise plant utilizatio
Slide 25: Yip's Chemical Delivers Solid Earnings Growth
Yip’s Chemical Delivers Solid Earnings Growth A 20% growth in bottom line despite harsh business environment Initial success has been achieved in the implementation of various measures to enhance operational excellence – yet plenty of room to intensify and improve these measures Strive for continued
Slide 26: CSR Development
WY SUL YIPSCHEMICAL CSR Development
Slide 27: Strong Commitment to CSR
Strong Commitment to CSR Focus Areas of Contribution Environmental Health Education Concerns Strive a balance Provide surgeries for Support education between business poor cataract patients development growth and in the remote areas of program in China environmental the Mainland to restore Establish
Slide 28: Flagship CSR Program
Flagship CSR Program Ten-year Donation Plan for Mobile Eye Surgery Centres 2008: Ningxia Hui Autonomous Region We helped restore vision for almost 10,000 2011: Shandong Province cataract patients 2009: Jiangsu Province We offered free surgeries to patients in Jiangsu and Shandong Provinces in 2011 W
Slide 29: Education Sponsorship Initiatives
Education Sponsorship Initiatives Student Sponsorship Program in Yip’s Care Extension Jiangmen Foundation 29
Slide 30: WY SUL
WY SUL YIPSCHEMICAL 30
Slide 31: Appendix
WY SUL YIPSCHEMICAL Appendix 31
Slide 32: Capacity of Core Businesses
Capacity of Core Businesses As of 28 Aug 2012 Solvents Raw solvents : 700,000 MT Coatings Household paints : 122,000 MT Inks : 90,000 MT Industrial paints: 88,000 MT Resins : 20,000 MT Lubricants Automotive and industrial lubricants : 130,000 MT 32
Yip's Chemical Holdings — H1 2012 Earnings Presentation on 6ix