Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — Xiwang Sugar Holdings Company — FY2007 Earnings Presentation
34 slides from Xiwang Property's earnings presentation, April 2008
Slide 1: Annual Results 2007
HKSE Stock Code: 2088 Annual Results 2007 April 2008
Slide 2: Agenda
Agenda • 2007 Annual Results • Business Update and Future Development Strategies • Appendix A - Company Profile • Appendix B - Historical Financial Highlights 2
Slide 3: 2007 Annual Results
2007 Annual Results 3
Slide 4: 2007 Result Highlights
2007 Result Highlights • Turnover: Rmb 2,062 million , +48.9% YOY • Net profit: f Rmb 361 million, +24.4% % YOY O • Basic EPS: Rmb 0.435, 0 435 +22 +22.2% 2% YOY • Gross margin: 22.5%, -3.9% YOY • Net profit margin: 17.5%, -3.4% YOY • Average ROE: 27.8% , -1.0% YOY • Net debt-to-equity ratio: 0.48x,
Slide 5: 2007 Major Achievements
2007 Major Achievements • Capacity expansion of crystallised glucose reached 800,000 tonnes pa - Large and core customers increased significantly - Sales volume increased by 130% compared to 2006 - Utilization rate ramped up to over 70% from less than 30% • Corn-refined products experienced signific
Slide 6: 2007 Business Review
2007 Business Review • Demand for crystallised glucose was strong, resulted in solid sales growth • Corn-refined products performed well – Demand for corn oil increased sharply and resulted in exciting demand for corn germ – Animal feed products experienced significant growth due to increasing need
Slide 7: Consolidated Income Statement
Consolidated Income Statement Rmb (in millions) 2007 2006 YOY Change Turnover 2,062 , 1,385 , 48.9% Gross profit 464 365 27.1% ‐ Gross profit margin 22 5% 22.5% 26 4% 26.4% (3 9%) (3.9%) Operating profit 406 312 30.2% ‐ Operating profit margin 19.7% 22.5% (2.8%) Net profit 361 290 24.4% ‐ Net margin
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet Rmb (in millions) As at 31 Dec 2007 As at 31 Dec 2006 YOY Change Current assets 1,271 910 39.7% Cash and cash equivalents 343 663 (48.2%) Inventory 330 136 142.8% Account receivables 509 107 377.3% ((including c ud g bills b s receivable) ece ab e) PPE 1,300 822 58.2% Tota
Slide 9: Financial Ratios
Financial Ratios 2007 2006 YOY Change Average ROE 27.8% 28.8% (1.0%) Current ratio 2.51x 2.53x (0.9%) Net debt‐to‐equity ratio 0.48x 0.18x 170.7% EBITDA Interest coverage 7.82x 11.57x (32.5%) Inventory turnover days 75.4 48.6 55.0% Debtor turnover days 72 9 72.9 22 5 22.5 224 4% 224.4% Creditor turn
Slide 10: Turnover by Products
Turnover by Products Rmb (in millions) 2007 2006 YOY Change Turnover 2 062 2,062 1 386 1,386 48 9% 48.9% 2007 2006 Others 4.3% Others Glutamic acid Lysine 7.9% Corn starch 4.8% 4 8% 0.4% paste 0 4% 7.4% Crystallised Lysine glucose 21.8% Animal feed 37.7% 8.9% Crystallised glucose Glutamic acid Corn
Slide 11: Sales Volume and Average Selling Price
Sales Volume and Average Selling Price Sales Volume (tonnes) 2007 2006 YOY Change Crystallised glucose 481,135 209,692 129.4% Corn gluten meal 64,444 42,215 52.7% Corn germ 67,851 39,525 71.7% Animal feed 201,529 137,882 46.2% Corn starch paste 83,296 56,281 48.0% Glutamic acid 22,136 1,642 1248.1%
Slide 12: Exports by Products
Exports by Products Rmb (in millions) 2007 2006 YOY Change Export Sales 253 162 56 6% 56.6% Export % to Total Turnover 12.6% 11.7% 0.9% 2007 2006 Others Animal feed 19.9% Crystallised Corn germ10.4% glucose 5.4% Crystallised 29.2% glucose 33.3% Animal feed 12.4% Corn gluten Corn gluten meal meal 38.
Slide 13: Cost of Sales Breakdown
Cost of Sales Breakdown 2007 2006 Others, 2.0% Others 3.1% Others, 3 1% Labour, 1.8% Labour, 1.8% Depreciation, Depreciation, 3.9% 3.3% Utilities, Utilities, 8 7% 8.7% 12.3% Other raw materials, 10.8% Other raw materials, Corn, 16.8% Corn, 72.8% 62.8% Average corn procurement cost +13.3% YOY 2007: R
Slide 14: Gross Profit Breakdown
Gross Profit Breakdown Rmb (in millions) 2007 2006 YOY Change Gross Profit 464 365 27.1% 2007 2006 Others 0.4% Others, 0 4% Lysine, Lysine 0.6% 0 6% Corn starch Others paste, 6.4% 4.7% Animal feed, Lysine 10 2% 10.2% 18.5% Glutamic acid Corn germ, 0.2% Crystallised 12.5% Corn starch glucose Crystall
Slide 15: Gross Profit Margin
Gross Profit Margin GP Margin 2007 2006 Change Crystallised ll d glucose l 23.9% 33.6% ( (9.7%) ) Corn gluten meal 33.2% 16.0% 17.2% Corn germ 28.0% 23.8% 4.2% Animal feed 25 9% 25.9% 34 2% 34.2% (8 3%) (8.3%) Corn starch Paste 19.3% 15.7% 3.6% Glutamic acid (11.9%) 11.2% (23.1%) Lysine 30.0% 22.2%
Slide 16: Inventory Breakdown
Inventory Breakdown Rmb (in millions) As at 31 Dec 2007 As at 31 Dec 2006 YOY Change Inventory 330 137 143 8% 143.8% 2007 2006 006 Finished Finished goods, goods, 19.0% 28.9% Corn, WIP, 13.0% 53.3% Other raw materials, Corn, WIP, 15.2% 2.4% 65.6% Other raw materials, 2.6% 16
Slide 17: Account Receivables
Account Receivables Rmb (in millions) As at 31 Dec 2007 As at 31 Dec 2006 YOY Change Trade Receivables 412 85 383.0% ‐ Bills Receivable 299 36 728.0% Other Receivables 97 21 354.7% Account Receivables 509 107 377.3% Trade Receivables Bills Receivable 450,000 450,000 400,000 00 000 400,000 14.1% 350,
Slide 18: Business Update and Future Development Strategies
Business Update and Future Development Strategies 18
Slide 19: Price Movement of Corn, Crystallised Glucose and Cane Sugar
Price Movement of Corn, Crystallised Glucose and Cane Sugar Price (RMB/ tonne) 5,000 4,000 3,000 Sugar Cane Crystallised Glucose 2,000 Corn 1,000 0 Jan‐05 Apr‐05 Jul‐05 Oct‐05 Jan‐06 Apr‐06 Jul‐06 Oct‐06 Jan‐07 Apr‐07 Jul‐07 Oct‐07 Jan‐08 Note: 1 Sugar cane price refers to the refined sugar price of
Slide 20: Business Update
Business Update • Product demand remains strong – Rapid economic growth and rising living standard – Growing outsourcing trend at customers’ end – Increasing needs for food and animal feed • Glutamic acid production facilities were converted to produce semi-alcohols – To digest g mother liquid q mor
Slide 21: Future Development Strategies
Future Development Strategies • Continue to develop large and core customers, and strive to achieve better product economics, by enhancing product quality and customer services • Selectively develop international markets for export sales, e.g. Korea • Set up a new 50,000 tonnes crystallised fructose
Slide 22: Thank You Very Much
Thank You Very Much Q&A 22
Slide 23: Appendix A - Company Profile
Appendix A ‐ Company Profile 23
Slide 24: Company Profile
Company Profile • The largest and leading crystallised glucose producer in the PRC, with 800,000 tonnes annual production capacity installed • Leading corn processor in the PRC, with 1.5 million tonnes processing capacity installed • Based in Shandong, one of the fastest economic development and the
Slide 25: Vertically Integrated Production Process
Vertically Integrated Production Process Corn Starch processing plant Corn gluten Corn starch Corn germ Corn fibre Corn slurry Corn steep liquor meal paste Animal feed processing plant Animal feed products Corn‐refined products Glucose production plant Glucose Crystallised syrup glucose Other raw Se
Slide 26: Production Yield
Production Yield Corn:1 million tonnes Corn starch paste: 700,000 tonnes Corn germ: 70,000 tonnes Corn gluten meal: 60,000 tonnes Crystallised glucose: 600,000 tonnes Animal feed products: 100,000 tonnes Semi-alcohols: 60,000 60 000 tonnes 26
Slide 27: Source of Corn Purchased
Source of Corn Purchased Tonnes 1 200 000 1,200,000 1,000,000 800,000 54% 600,000 400,000 43% 46% 200,000 57% ‐ 2006 2007 Peasants Government collecting agents 27
Slide 28: Diversified Applications of Crystallised Glucose
Diversified Applications of Crystallised Glucose The Group enjoys diversified product applications which enhances revenue potentials and ensures stable income. income Food and Beverages Fermentation Chemicals Pharmaceuticals 28
Slide 29: History and Development
History and Development Further expanded crystallised y gglucose production capacity to 800,000 tonnes pa Expanded • Corn starch Expanded p crystallised y Expanded crystallised processing i capacity it glucose production glucose production to 1,000,000 tonnes Developed crystalline capacity to 250,00
Slide 30: Shareholding Structure
Shareholding Structure Atlantis Management Public Float Investment 62.93% 9.04% 28.03% Xiwang Sugar Holdings Co Ltd (Bermuda) Master Team (BVI) 100% 100% Winning China Limited Xiwang Sugar (Hong Kong) Ltd 100% 100% Export, Investor Relations and Administration Shandong Xiwang Bio-chem Shandong Xiwan
Slide 31: Appendix B - Historical Financial Highlights
Appendix B - Historical Financial Highlights 31
Slide 32: Historical Financial Highlights
Historical Financial Highlights Rmb (in millions) 2003 2004 2005 2006 2007 Turnover 303 603 1 038 1,038 1 385 1,385 2 062 2,062 Gross profit 62 118 261 365 464 Operating profit 57 111 228 312 406 Net Profit 40 82 210 290 361 Gross margin (%) 20.3% 19.7% 25.2% 26.4% 22.5% Operating margin (%) 18.7% 1
Slide 33: Historical Financial Highlights
Historical Financial Highlights Rmb (in millions) 2003 2004 2005 2006 2007 Current Assets 185 318 691 910 1,271 Cash & Cash Equivalents 11 53 502 663 343 Non‐current Assets 267 351 696 1,285 1,507 Total Assets 452 669 1,387 2,195 2,779 Current Liabilities 302 213 312 360 507 Non‐current Liabilities
Slide 34: Disclaimer
Disclaimer Disclaimer The information provided to you in this presentation does not constitute, 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”) n
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