China Lesso Group Holdings Limited · HKEX:2128
China Lesso — FY2020 Earnings Presentation
26 slides from China Lesso's earnings presentation, Apr 1, 2021
Slide 1: 2020 Annual Results Corporate Presentation
2020 Annual Results Corporate Presentation
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
Slide 4: Results highlights
Results highlights ❖ Despite the outbreak of COVID-19 pandemic, the Group has steadily promoted the resumption of work and production since March and captured market opportunities after the pandemic in Q2, achieving overall business growth against the adversity in 2020 ❖ Revenue: RMB28.073 billion，+
Slide 5: Results highlights
Results highlights ❖ In August, launched the Shandong smart home production project, injecting new impetus into in-depth development in smart home market ❖ In December, production bases in Fujian and Jiangxi officially commenced operation, accelerating the production output ❖ Made great efforts to e
Slide 6: Agenda
Agenda 01 Results Highlights 02 Financial Review 03 Business Review 04 Outlook
Slide 7: Steady revenue growth
Steady revenue growth Total revenue Total revenue (by business segment) (RMB million) 2020 Supply Chain 28,073 Service Platform Environmental protection +6.6% Business 1.2% 2.5% 521 Others* 26,345 Building materials 1.9% 354 & interior 689 decoration 412 products 326 7.1% 379 1,997 1,519 Plastic pip
Slide 8: Overall cost structure
Overall cost structure 2019 2020 Other overheads Other overheads 2.7% 1.9% Depreciation & Depreciation & amortization amortization 3.9% 2.6% Utilities Utilities 4.1% 2.9% Wages Wages 8.2% 11.0% Raw materials Raw materials 82.4% 80.3% 8
Slide 9: GP & NP continued to increase
GP & NP continued to increase GP & GP margin NP & NP margin (RMB million) (RMB million) 29.9% 32% 4,000 3,757 15% 28.6% 3,028 9,000 2,446 26.2% 8,384 + 24.1% + 11.2% 13.4% 11.5% 7,537 24% 10.3% 6,228 10% 16% 2,000 4,500 5% 8% 0 0% 0 0% 2018 2019 2020 2018 2019 2020 9
Slide 10: Healthy & stable key financial indicators
Healthy & stable key financial indicators Trade receivable days Trade payable days (days) (days) 46 107 39 98 34 76 2018 2019 2020 2018 2019 2020 Inventory turnover days* Cash & bank deposits (days) (RMB million) 76 66 67 7,604 7,447 6,452 2018 2019 2020 2018 2019 2020 * Remark: excluding properties
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) 18.5% 17.7% 16.2% 8.1% 9.9% 10.3% 7.1% 7.4% 9.1% 2018 2019 2020 2018 2019 2020 2018 2019 2020 (1) Net profit divided by total equity at the end of the period (2) Net profit divided by total asset a
Slide 12: Agenda
Agenda 01 Results Highlights 02 Financial Review 03 Business Review 04 Outlook
Slide 13: Plastic piping systems business: revenue & sales volume
Plastic piping systems business: revenue & sales volume Segment revenue Segment sales volume (RMB million) (tonnes) + 8.8% 2,608,958 2,397,864 23,709 + 3.4% 24,512 2019 2020 2019 2020 13
Slide 14: Plastic piping systems business: revenue breakdown by region
Plastic piping systems business: revenue breakdown by region 2019 2020 Outside China Outside China Outside 2.1% Outside 1.8% Southern Southern China China 44.5% 45.2% Southern Southern China China 53.0% 53.4% 14
Slide 15: Plastic piping systems business: revenue analysis
Plastic piping systems business: revenue analysis 2019 2020 Gas Gas 1.6% Others (1) Others(1) 1.7% 4.5% 4.3% Power supply & Power supply & Water tele- Water tele- By supply communication supply communication 38.6% application 17.4% 38.9% 17.2% Drainage Drainage 38.0% 37.8% Non-PVC (2) Non-PVC (2) By
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 14,250 33.2% 29.2% 28.7% 8,116 8,116 7,781 29.1% 28.4% 23.8% 2018 2019 2020 2018 2019 2020 PVC products Non-PVC products PVC products Non-PVC products ASP per tonne - ove
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) 87.9% 84.8% 88.0% 3.00 90.0% 2.50 70.0% 2.00 50.0% 1.50 3.03 30.0% 2.78 2.62 1.00 10.0% 0.50 -10.0% 0.00 -30.0% 2018 2019 2020 17
Slide 18: Plastic piping systems business: agricultural sector expansion
Plastic piping systems business: agricultural sector expansion Actively expanded the agricultural sector Type of Business ❖ Covering a board range of segments ❖ Through in-depth R&D, successfully launching products for emerging market such as agriculture and deep-water aquaculture, further enriching
Slide 19: Building materials & interior decoration products
Building materials & interior decoration products Boosted business growth of building Taking over market share as the primary materials and interior decoration business goal ❖ With the gradual easing of the domestic ❖ Launched environmentally friendly stainless- pandemic and more flexible implementa
Slide 20: Environmental protection business
Environmental protection business Vigorously developed the environmental Scope of Business protection business segment ❖ Capitalized on municipal projects in various fields to create synergy between its environmental protection business and plastic piping systems business for the long term ❖ Stable
Slide 21: Supply chain service platform business
Supply chain service platform business Still in early stage of business Product Category development ❖ Recorded revenue of RMB689 million in 2020 ❖ With its focus on the development in Southeast Asian market, the Group has projects in Thailand and Indonesia ❖ Further boost the distribution network f
Slide 22: Agenda
Agenda 01 Results Highlights 02 Financial Review 03 Business Review 04 Outlook
Slide 23: Future prospect
Future prospect Achieve centralized automated & intelligent production Focus on R&D to improve product quality to enhance efficiency ❖ Strive to enhance its competitiveness in the ❖ Introduce high-precision equipment to R&D of products and technologies, and enhance production automation, actively ex
Slide 24: Q&A
Q&A 24
Slide 25: Appendix: financial summary
Appendix: financial summary Statement of profit and loss (RMB million) Statement of financial position (RMB million) 2018 2019 2020 2018 2019 2020 Revenue 23,734 26,345 28,073 Cash & bank 6,452 7,604 7,447 deposits Gross profit 6,228 7,537 8,384 EBITDA 4,409 5,556 6,195 Total assets 34,636 40,785 46
Slide 26: Appendix: Layout of production bases
Appendix: Layout of production bases With over 30 advanced production bases in 18 provinces of China and in foreign countries 26
China Lesso Group Holdings — FY2020 Earnings Presentation on 6ix