Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — Xiwang Sugar Holdings Company — H1 2011 Earnings Presentation
32 slides from Xiwang Property's earnings presentation, Aug 30, 2011
Slide 1: Xiwang Sugar Holdings Company Limited
iniwrim Qesall ~ '@ | Aiwang Sugar Hoidings Company Limited Hong KongStock code : 2088
Slide 2: Contents
Contents • Highlights • Key Products Performance • Outlook • Appendix 2
Slide 3: Highlights
Highlights • We recorded satisfactory results, revenue growth of 15% and net profit growth of 11% • Revenue was mainly driven by the increase in selling prices of our key products • Corn cost and production overhead rose due to significant inflation • SG&A increased with expanded export and higher f
Slide 4: Summary Income Statement
Summary Income Statement 1H 2011 1H 2010 Change RMB million Revenue 1,713 1,485 15.3% Gross profit 261 236 10.7% O Operating ti profit fit 155 156 (1%) Profit before tax 129 105 22.4% Net profit 110 100 10.8% RMB Basic EPS 0.1097 0.1045 5.0% Dividends Nil Nil NA Gross profit margin 15 3% 15.3% 15 9%
Slide 5: Liquidity, Capital resources and Gearing Ratio
Liquidity, Capital resources and Gearing Ratio 30 Jun 2011 31 Dec 2010 RMB million Cash and cash equivalents 180 549 Total borrowings 1,398 1,565 Net current assets 801 792 Total equity 2 079 2,079 1 966 1,966 Current ratio 1.59 1.67 Gearing ratio 0.59 0.52 Note: • Current ratio = total current asse
Slide 6: Revenue by Products
Revenue by Products 1H 2011 1H 2010 Sodium Others, 1% Others, 1% gluconate, 10% Sodium gluconate, 17% Corn starch , 8% Corn starch , 1% C Corn germ, 9% Corn germ germ, 9% Crystalline Crystalline glucose, 49% glucose, 48% Corn gluten feed, Corn gluten feed, 6% 7% Corn gluten meal, 6% Corn gluten meal
Slide 7: Domestic and Export Sales
Domestic and Export Sales 1H 2011 1H 2010 Overseas, 11% Overseas, 17% China, 83% China, 89% 7
Slide 8: Key Products Performance
Key Products Performance 8
Slide 9: Overall Performance
Overall Performance • Overall corn processing volume was lowered by 4.2% (1H 2011: 592,000 tonnes, 1H 2010: 618 618,000 000 tonnes) as we upgraded our starch plant • As a result of our efforts in converting more corn starch into high value-added products, p oducts, revenue e e ue cocontribution t bu
Slide 10: Key Products Performance
Key Products Performance • Crystalline glucose – Strong demand from food and beverage, and fermentation sectors – High white sugar price also supported glucose price • Crystalline fructose – Growth momentum in sales volume, reflecting our initial success in the Chinese market • Fructose-glucose syru
Slide 11: Sales Volume
Sales Volume Tonne 1H 2011 1H 2010 Change Starch sugars: Crystalline glucose 230,772 238,777 (3.4) Crystalline fructose 4,510 1,143 294.6 Fructose-glucose syrup 80,454 50,858 58.2 Corn co-products and others: Corn gluten meal 25,425 25,918 (1.9) Corn gluten feed 89 074 89,074 87 146 87,146 22 2.2 Co
Slide 12: Average Selling Price
Average Selling Price RMB per tonne (Tax-inclusive) 1H 2011 1H 2010 Change Starch sugars: Crystalline glucose 4,173 3,532 18.2 Crystalline fructose 7,873 7,806 0.9 Fructose-glucose syrup 2,513 2,252 11.6 Corn co-products and others: Corn gluten meal 4,610 5,114 (9.9) Corn gluten feed 1 191 1,191 1 2
Slide 13: Cost of Goods Sold
Cost of Goods Sold 1H 2011 1H 2010 Other raw Other raw materials, 7% materials, 5% Utilities, 14% Utilities, 12% Depreciation, p , 3% Depreciation, 3% Labor, 2% Labor, 2% Others, 2% Corn, 76% Others, 2% Corn, 72% 1H 2011 1H 2010 Change • Corn cost (tax-inclusive): RMB 2,111 RMB 1,845 14.4% • Corn pr
Slide 14: Gross Profit Margin
Gross Profit Margin 1H 2011 1H 2010 Change Starch sugars: Crystalline glucose 21.9 22.9 (1.0) Crystalline fructose 21 1 21.1 34 3 34.3 (13 2) (13.2) Fructose-glucose syrup 8.5 8.8 (0.3) Corn co-products and others: Corn gluten meal (11.9) 3.6 (15.5) Corn gluten feed (6.4) 12.1 (18.5) Corm germ 11.0
Slide 15: Outlook
Outlook 15
Slide 16: Types of Sugar
Types of Sugar Natural Sugar Sugar Substitute White sugar Starch sugars Artificial sugar • Sugar cane, sugar beet • Corn • Chemicals • Sucrose • Glucose or fructose • Amino acids • Sweetness: 1.0 • Sweetness: • Sweetness: - Glucose: 0.7 - Aspartame: 200 - Fructose: 1.8 - Sucralose: 600 • High calori
Slide 17: Sugar Market in China
Sugar Market in China Supply: Demand: Ô White sugar: 11.8 million tonnes Ê F&B, growing at 15-20% Ô Starch sugar: 2 million tonnes Ê Fermentation, growing at 5-10% Ô 2011/2012: 14 million tonnes Ê 2011/2012: 14 million tonnes Starch sugars, 2,000,000 White sugar (sugar beet), Characteristics: 1,000,
Slide 18: Price Trend of Corn, Corn Starch, Glucose and White Sugar in China
Price Trend of Corn, Corn Starch, Glucose and White Sugar in China RMB/ tonne 9,000 8,000 White sugar 7,000 6,000 5,000 Glucose 4,000 Corn starch 3,000 Corn 2,000 1,000 - 01/200604/200607/200610/200601/200704/200707/200710/200701/200804/200807/200810/200801/200904/200907/200910/200901/201004/201007/
Slide 19: Glucose Market in China
Glucose Market in China Major events: • Sept 2007: Government established policy to restrict corn processing expansion • Sept 2008: Melamine Scandal • Demand from F&B and fermentation continued to grow • Returned to demand and supply in tight balance Xiwang Sugar’s output China domestic consumption
Slide 20: Our Starch Sugars Product Mix
Our Starch Sugars Product Mix Glucose Fructose-glucose Fructose Maltodextrin Oligosaccharide syrup (HFCS) Form Crystalline Syrup Crystalline Powder Powder, syrup Constituent Pure glucose Mixture of fructose Pure fructose Glucose units 2-10 simple sugars and glucose Sweetness 0.7 1.0 1.3 – 1.8 0.1 0.
Slide 21: Prospects
Prospects Sugar market organic growth: • Per capita consumption: - 2011: 11 kg Ö 2015: 13 kg+ - Far below the world average of 23 kg • Population: (Source: National Bureau of Statistics, - 2010: 1 1.34 34 billion Ö 2015: 1 1.40 40 billion National N ti lP Population l ti anddF Family il Pl Plannin
Slide 22: Appendix
Appendix 22
Slide 23: Who Are We?
Who Are We? • We are a leading starch sugar company • The largest glucose provider in China • The largest fructose provider in China • Our products are healthy and functional in nature • Our p products are widely y applied pp to F&B,, fermentation,, p pharmaceutical,, construction and animal feed se
Slide 24: Overview of Corn Processing Industry
Overview of Corn Processing Industry Basic Refinery Starch Starch Gluten Fiber Germ Deep Processing Starch Sugars g Sugar g Alcohols Bio-products p Fermented Products Glucose Sorbitol Amino acids: Lysine Sodium gluconate Fructose Xylitol Organic acids: Citric Acid MSG Oligosaccharide Bio-fuel: Ethan
Slide 25: Our Circular Economy
Our Circular Economy Starch Plant Corn 1.5 million tonnes Corn Storage 500,000 tonnes Water recycling Sodium Gluconate 120,000 tonnes Sewage Treatment Glucose 800,000 tonnes Oligosaccharide Fructose 30,000 tonnes 50,000 tonnes Note: The above are designed capacities based on 365 days continued opera
Slide 26: Key Events and Financials
Key Events and Financials Capacity Melamine New expansion Recovery products IPO scandal 12/05 12/06 12/07 12/08 12/09 12/10 Revenue (RMB million) 1 038 1,038 1 385 1,385 2 062 2,062 2 544 2,544 2 481 2,481 3 257 3,257 Gross profit margin 25.2% 26.4% 22.5% 8.6% 12.8% 14.5% EBITDA (RMB million) 255 35
Slide 27: Sales Volume
Sales Volume tonnes 1H 2008 2008 1H 2009 2009 1H 2010 2010 1H 2011 • Crystalline glucose 250,543 485,975 198,959 442,583 238,777 517,801 230,772 • Crystalline fructose - - - 809 1,143 6,636 4,510 • Fructose-glucose syrup - - 14,491 33,791 50,858 119,919 80,454 • Corn gluten meal 34,363 59,374 26,105
Slide 28: Average Selling Price
Average Selling Price RMB per tonne (tax-inclusive) 1H 2008 2008 1H 2009 2009 1H 2010 2010 1H 2011 • Crystalline glucose 2,823 2,740 2,537 2,775 3,532 3,531 4,173 • Crystalline fructose - - - 8,543 7,806 7,477 7,873 • Fructose-glucose syrup - - 2,087 2,053 2,252 2,434 2,513 • Corn gluten meal 5,081
Slide 29: Corn Cost and Gross Profit Margin
Corn 1H 2008 2008 1H 2009 2009 1H 2010 2010 1H 2011 Volume processed (tonnes) 597,000 1,130,000 548,000 1,150,000 618,000 1,230,000 592,000 Corn cost 1,680 1,680 1,520 1,600 1,845 1,910 2,111 (RMB per tonne, tax-inclusive) Gross Profit Margin 1H 2008 2008 1H 2009 2009 1H 2010 2010 1H 2011 • Crystall
Slide 30: Summary Statement of Financial Position
Summary Statement of Financial Position (RMB million) 2006 2007 2008 2009 2010 30 June 2011 Current assets 910 1,271 1,041 2,184 1,976 2,150 Non-current assets 1,285 1,507 1,656 1,826 2,005 2,028 Total assets 2,195 2,778 2,697 4,010 3,981 4,178 Current liabilities 360 507 1,329 2,347 1,184 1,349 Non
Slide 31: Forward-looking Statement and Disclaimer
Forward-looking Statement and Disclaimer The information provided to you in this presentation contains forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These statements relate to events that involve known and unknown risks, uncertainties and other
Slide 32: Contact
Contact Xiwang Sugar Holdings Company Limited Unit 1508-09, 15th Floor, Great Eagle Centre 23 Harbour Road, Wanchai Hong Kong Investor Relations and Corporate Communications Department Gisele Suen Email : ir@xiwang-sugar.com.hk Phone o e : (85 (852)) 3 3104 0 05 0576 6 Company Website www.xiwang-sug
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