Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — Xiwang Sugar Holdings Company — H1 2009 Earnings Presentation
25 slides from Xiwang Property's earnings presentation, Aug 25, 2009
Slide 1: 2009 Interim Results
oO XIWANG SUGAR HOLDINGS COMPANY LIMITED OT a RISA BRA) HKSE Code Bi@ Acta 5k: 2088 2009 Interim Results
Slide 2: Content
Content About Us 2009 Interim I t i Results R lt Hi Highlights hli ht Financial and Business Review Outlook and Development Appendix Company Profile Fully-integrated Production System Our Products Production Yield Organisation Structure Corporate Development and Awards 2
Slide 3: About Us
About Us The largest crystalline glucose manufacturer and supplier in China The largest crystalline fructose manufacturer and supplier in China Refines corn to a series of healthy, natural sweeteners and ingredients which are widely applied in F&B, animal feed, and many consumer and industrial produ
Slide 4: 2009 Interim Results Highlights
2009 Interim Results Highlights We recorded a substantial decline in financial results in the first half of 2009 The Group’s business continued to suffer from adverse impact of melamine scandal and global financial crisis Certain production facilities were upgraded for new products, resulting in an
Slide 5: Summary Income Statement
Summary Income Statement 1H 2009 1H 2008 Increase/ (Decrease) RMB million illi Revenue 1,031 1,386 (25.6%) Gross profit 75 264 (71.4%) Operating profit 20 202 (89.9%) Profit before tax 1 227 (99.5%) Net profit 1 219 (99 5%) (99.5%) RMB per share Basic EPS 0.0016 0.2633 (99.5%) Proposed interim divid
Slide 6: Summary Balance Sheet
Summary Balance Sheet As at Jun 30 2009 As at Dec 31 2008 Increase/ (Decrease) RMB million Cash & cash equivalents 833 248 236% Inventory 311 326 (5%) Bill receivables 223 206 8% Trade & other receivables 276 247 12% Others 19 14 36% Total current assets 1,662 1,041 60% Total non-current assets 1,73
Slide 7: Summary Cash Flow Statement
Summary Cash Flow Statement 1H 2009 1H 2008 RMB million Cash inflow from operating activities 46 209 Cash outflow from investing activities (183) (107) Cash inflow/(outflow) from financing activities 722 (137) Net change in cash & cash equivalents 585 (35) Cash & cash equivalents at beginning of Per
Slide 8: Business Review
Business Review Crystalline glucose Lower production volume due to upgrade of glucose production plant Price in Q2 was 4% higher than Q1 Crystalline fructose Commercial production had not begun in 1H 2009 Corn gluten feed and corn gluten meal Oversupply of hogs and concerns of H1N1 influenza Prices
Slide 9: Revenue by Business Segments
Revenue by Business Segments 1H 2009 1H 2008 (Decrease) RMB million Sweetener products 458 609 (25%) Corn co-products and others 573 777 (26%) Total 1,031 1,386 (26%) 1H 2009 1H 2008 Crystalline Corn gluten meal glucose 11% Corn gluten meal 42% 10% Crystalline glucose 44% Corn gluten feed Corn glute
Slide 10: Revenue by Geographical Segments
Revenue by Geographical Segments 1H 2009 1H 2008 (Decrease) RMB million Domestic 917 1,182 (22%) Export 114 204 (44%) Total 1,031 1,386 (26%) 1H 2009 1H 2008 11% 15% • Export sales was seriously dampened by Domestic approx. 44% due Export to the melamine scandal and the global financial crisis 89% 8
Slide 11: Sales Volume of Key Products
Sales Volume of Key Products 1H 2009 1H 2008 Increase/ (Decrease) Tonnes Sweetener products Crystalline glucose 198,959 250,543 (21%) Crystalline fructose 57 152 (63%) Other syrup products 14 491 14,491 1 369 1,369 959% Corn co-products and others Corn gluten meal 26,105 34,363 (24%) Corn gluten fee
Slide 12: Average Selling Price of Key Products
Average Selling Price of Key Products 1H 2009 1H 2008 Increase/ (Decrease) RMB/ tonne (VAT-inclusive) Sweetener products Crystalline glucose 2,537 2,823 (10%) Crystalline fructose 12,640 11,536 10% Other syrup products 2 087 2,087 2 608 2,608 (20%) Corn co-products and others Corn gluten meal 4,623
Slide 13: Cost of Sales
Cost of Sales 1H 2009 1H 2008 Other materials 6% Other materials 9% Utilities 12% Utilities 9% Depreciation Depreciation 3% 3% Corn Corn 75% 75% Labour Labour 2% 2% Others Others 2% 2% RMB/ tonne (VAT-inclusive) 1H 2009 1H 2008 (Decrease) Average corn cost 1,520 1,680 (10%) Business Review 13
Slide 14: Gross Profit Margin of Key Products
Gross Profit Margin of Key Products 1H 2009 1H 2008 Increase/ (Decrease) Sweetener products Crystalline glucose 9% 19% (10% pts) Crystalline fructose 3% 12% (9% pts) Other syrup products 15% (9%) 24% pts Corn co-products and others Corn gluten meal 1% 24% (23% pts) Corn gluten feed 7% 27% (20% pts)
Slide 15: Price Trend of Cane Sugar, Crystalline Glucose & Corn
Price Trend of Cane Sugar, Crystalline Glucose & Corn RMB / tonne (VAT-inclusive) 6,000 5,000 Since beginning 2009, price of cane sugar in China in upward trend due to reduced supply Recovery of crystalline 4,000 glucose price since Q2 2009 3 000 3,000 2,000 1,000 Domestic corn price started to clim
Slide 16: Outlook
Outlook Crystalline glucose Consumption in China in 2009: approx. 1.3 – 1.4 million tonnes Steady St d growth th in i F&B and d pharmaceuticals h ti l products d t Demand from fermentation and chemicals sectors gradually recover Crystalline fructose Worldwide demand in 2009 is approx. 400,000 tonnes
Slide 17: Development
Development Leading supplier of healthy sweeteners and ingredients to global customers Changing tastes Cane C sugar per capita: China 11kg, it Chi 11k worldld average 25k 25kg, US 29k 29kg, EU 34k 34kg Rising disposable income, western diets Health concerns Diabetes obesity, Diabetes, obesity tooth
Slide 18: Appendix
oO XIWANG SUGAR HOLDINGS COMPANY LIMITED G5 + itd FR IS AY BBR ZG) HKSE Code i@ ix ta tts: 2088 Appendix
Slide 19: Company Profile
Company Profile 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 Crys
Slide 20: Fully-Integrated Production System
Fully-Integrated 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 products Corn to derive various products G
Slide 21: Our Products
Our Products Crystalline fructose High sweetness with lower calories Sweetener Products Feedstock for fermentation Food & Beverage Simple structure allows Crystalline heat energy to be glucose Monosaccharide with easily released medium di sweett ttaste t Basic unit of organic compounds Syrup product
Slide 22: Production Yield
Corn 70,000 tonnes Production Yield germ Corn gluten 50,000 tonnes meal 1,000,000 tonnes Corn Corn gluten 180,000 tonnes feed Corn 700,000 tonnes starch Crystalline 1.3 tonnes cry. glucose for Crystalline fructose 1 tonne cry. fructose Raw material glucose 600,000 tonnes Corn co co-products products
Slide 23: Organisation Structure (as at 30 Jun 2009)
Organisation Structure (as at 30 Jun 2009) 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% Sales & trading Shandong Xiwang Bio Bio-chem
Slide 24: Corporate Development and Awards
Cry. fructose Corporate Development and Awards 50,000 tonne/yr Capital for Chinese Sweetener Products No. 1 E N Enterprise t i iin 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 proc
Slide 25: 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 b ib ffor or to sellll any securities i i off Xi Xiwang S Sugar H Holdings ldi C Company Limited (“Xiwang Sugar” or the “Group
Xiwang Sugar Holdings Company — H1 2009 Earnings Presentation on 6ix