Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — Xiwang Sugar Holdings Company — FY2008 Earnings Presentation
26 slides from Xiwang Property's earnings presentation, Apr 23, 2009
Slide 1: 2008 Annual Results
2 XIWANG SUGAR HOLDINGS COMPANY LIMITED (5 + We FIZ AR BRO) HKSE Code SAR (CF: 2088 2008 Annual Results
Slide 2: Agenda
Agenda 2008 Results Highlights Financial Review Market Review Outlook and Development 2
Slide 3: 2008 Results Highlights
2008 Results Highlights We recorded satisfactory results in the first half of 2008 But melamine scandal and global financial crisis posted significant challenges during the second half Corn price reached and stayed at an ever high level for most times in 2008 Resulted in a drop of 82% in net profit
Slide 4: Summary Income Statement
Summary Income Statement 2008 2007 Increase/ (Decrease) RMB million Revenue 2,544 2,062 23% Gross profit 220 464 (53%) Operating profit 50 406 (88%) Profit before tax 61 382 (84%) Net profit 64 361 (82%) RMB per share Basic EPS 0.077 0.435 (82%) Proposed final dividend 0.027 0.15 (82%) % Gross profi
Slide 5: Revenue by Business Segments
Revenue by Business Segments 2008 2007 Increase/ (Decrease) RMB million Sweetener products 1,151 1,136 1% Corn co-products and others 1,393 926 50% Total 2,544 2,062 23% 2008 2007 Crystalline glucose Corn gluten meal Corn gluten feed Corn germ Corn starch Other by-products Financial Review 5
Slide 6: Revenue by Geographical Segments
Revenue by Geographical Segments 2008 2007 Increase/ (Decrease) RMB million Domestic 2,222 1,809 23% Export 322 253 27% Total 2,544 2,062 23% 2008 2007 •Year-on-year growth in export by 27% • Export sales in second half 2008 diminished due to global financial crisis and melamine scandal Financial Re
Slide 7: Sales Volume of Key Products
Sales Volume of Key Products 2008 2007 Increase/ (Decrease) Tonnes Sweetener products Crystalline glucose 485,975 481,135 1% Crystalline fructose 426 - - Corn co-products and others Corn gluten meal 59,374 64,444 (8%) Corn gluten feed 307,788 201,529 53% Corn germ 77,965 67,851 15% Corn starch 104,4
Slide 8: Average Selling Price of Key Products
Average Selling Price of Key Products 2008 2007 Increase/ (Decrease) RMB/ tonne (VAT-inclusive) Sweetener products Crystalline glucose 2,740 2,698 2% Crystalline fructose 10,544 - - Corn co-products and others Corn gluten meal 5,054 3,889 30% Corn gluten feed 1,178 910 30% Corn germ 4,207 3,447 22%
Slide 9: Cost of Sales
Cost of Sales 2008 2007 RMB/ tonne (VAT-inclusive) 2008 2007 Increase Average corn cost 1,680 1,360 23% Financial Review 9
Slide 10: Gross Profit Margin of Key Products
Gross Profit Margin of Key Products Increase/ (Decrease) 2008 2007 Percentage points Sweetener products Crystalline glucose 13% 24% (11% pts) Crystalline fructose - - - Corn co-products and others Corn gluten meal 22% 33% (11% pts) Corn gluten feed 13% 26% (13% pts) Corn germ 7% 28% (21% pts) Corn s
Slide 11: Summary Balance Sheet
Summary Balance Sheet As at Dec 31 2008 2007 Increase/ (Decrease) RMB million Cash & cash equivalents 248 343 (28%) Inventory 326 330 (1%) Bill receivable 206 299 (31%) Trade & other receivables 247 210 18% Others 14 89 (85%) Total current assets 1,041 1,271 (18%) Total non-current assets 1,656 1,50
Slide 12: Liquidity, Capital Resources & Gearing Ratio
Liquidity, Capital Resources & Gearing Ratio As at Dec 31 2008 2007 RMB million Net current (liabilities)/ assets (287) 764 Cash & cash equivalents 248 343 Total borrowings 869 1,029 Shareholders’ equities 1,368 1,424 Current ratio 0.78 2.51 Gearing ratio# 0.45 0.48 Interest coverage 4.05 7.82 Ave.
Slide 13: Summary Cash Flow Statement
Summary Cash Flow Statement 2008 2007 RMB million Cash inflow/(outflow) from operating activities 268 (124) Cash outflow from investing activities (136) (278) Cash (outflow)/inflow from financing activities (227) 82 Net change in cash & cash equivalents (95) (320) Cash & cash equivalents at beginnin
Slide 14: Market Review
Market Review • Crystalline glucose • No significant capacity growth • Price suppressed by cane sugar even corn price on the rise • Livestock feed • Strong in 1H08 due to recovery from pig diseases • But weak in 2H08 due to melamine scandal • Corn germ • Prices of general commodities, including corn
Slide 15: Price Trend of Cane Sugar, Crystalline Glucose & Corn
Price Trend of Cane Sugar, Crystalline Glucose & Corn RMB / tonne (VAT-inclusive) Cane sugar price in falling trend since 2006 due to over-supply Crystalline glucose is used in F&B and fermentation, Therefore its price largely suppressed by cane sugar Significant fall in corn price happened by very
Slide 16: Outlook
Outlook Weak economic environment persists in 2009 Recovery of domestic dairy segment faster than anticipated Livestock industry entered into negative margin cycle; however would benefit from government supporting policy Corn price in 1Q09 relatively stable, approx.15% lower than peak in 2008 Demand
Slide 17: Development
Development Enrich product spectrum with distinct market niche: Crystalline fructose Pharmaceutical-grade glucose Target to substitute around 1/3 volume of crystalline glucose that are sold to industrial sector Capex in 2009: not more than RMB 100 million Research & Development Dedicated to new prod
Slide 18: End of Presentation Questions & Answers
End of Presentation Questions & Answers
Slide 19: Company Profile
2 XIWANG SUGAR HOLDINGS COMPANY LIMITED G8 + We FIZ Ax BBR AO) HKSE Code SAR (058: 2088 Company Profile
Slide 20: About Us
About Us Xiwang Sugar refines natural corn to a variety of sweeteners and corn co-products that are widely applied in food and beverage, animal feed, and many consumer and industrial products Production plant located in Shandong, China Leading corn processor No.1 Crystalline glucose No.1 Crystalline
Slide 21: Fully-Integrated Production System
Fully-Integrated Production System Corn refinery plant Corn co-products Corn starch in slurry form Residual liquid such as directly processed in corn steep liquor will glucose production plant enter fermentation plant to produce value-added by-products Corn to derive various products By-products Glu
Slide 22: Our Products
Our Products Crystalline High sweetness, suitable for diabetics Sweetener Products fructose Feedstock for fermentation Food & Beverage Crystalline Simple structure allows heat energy to be easily released glucose Monosaccharide with medium sweet taste Basic unit of organic compounds Syrup products C
Slide 23: Production Yield
Production Yield Corn germ 70,000 tonnes Corn gluten 50,000 tonnes meal 1,000,000 tonnes Corn Corn gluten 200,000 tonnes feed Corn 700,000 tonnes starch Crystalline glucose 600,000 tonnes Raw material Corn co-products Sweetener products Crystalline 1.3 tonnes cry. glucose for fructose 1 tonne cry. f
Slide 24: Organisation Structure
Organisation Structure Management Xiwang Sugar Holdings Company Limited (Bermuda) Free float 62.97% 2088.HK 37.03% Master Team International Limited (BVI) 100% Winning China Limited (HK) Xiwang Sugar (Hong Kong) Limited (HK) 100% 100% Trading business, Investor Relations & Administration Shandong Xi
Slide 25: Corporate Development and Awards
Cry. fructose Corporate Development and Awards 50,000 tonne/yr Capital for Chinese Sweetener Products No. 1 Enterprise in Starch Sweetener Industry Cry. glucose Cry. glucose 250,000 tonne/yr 800,000 tonne/yr Cry. glucose 180,000 tonne/yr National Environmental Friendly Corporation Corn processing 1,
Slide 26: Disclaimer
Disclaimer The information provided to you in this presentation does not constitute, or form part of any offer for subscription of, or solicitation of any offer to subscribe for or to sell any securities of Xiwang Sugar Holdings Company Limited (“Xiwang Sugar” or the “Group”) nor shall it form the b
Xiwang Sugar Holdings Company — FY2008 Earnings Presentation on 6ix