China Sunsine Chemical Holdings Ltd. · SGX:QES
China Sunsine Chemical — 2Q2009 Earnings Presentation
23 slides from China Sunsine Chemical's earnings presentation, Jul 30, 2009
Slide 1: 2Q2009 Results Briefing
2Q2009 Results Briefing 30 July 2009 1
Slide 2: Presentation Outline
Presentation Outline Financial Highlights Key Developments Outlook 2
Slide 3: Financial Highlights
euUNSING Financial Highlights
Slide 4: Financial Highlights
Financial Highlights RMB ’ million Half Year Ended Change Quarter Ended Change 30 Jun 09 30 Jun 08 30 Jun 09 31 Mar 09 Group Revenue 311.8 402.1 (22.5%) 177.7 134.1 32.5% Gross Profit 65.9 92.8 (29.0%) 43.6 22.3 95.5% Gross Profit Margin 21.1% 23.1% -2 pts 24.5% 16.6% +7.9 pts Profit Before Tax 41.9
Slide 5: Revenue
Revenue Revenue Q-Q: 33% Y-Y: 24% RMB’million Revenue 300 258.6 250 234.9 200 167.2 177.7 150 137.1 134.1 100 50 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 5
Slide 6: Overall Average Selling Price
Overall Average Selling Price 6
Slide 7: Sales Volume
Sales Volume Sales Volume Q-Q: 21% Y-Y: 17% Tons Sale Volume 12,000 11,130 10,000 9,496 9,187 7,877 8,000 7,130 6,095 6,000 4,000 2,000 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 • Sales volume up 21% compared with 1Q09 reflects increase of competitiveness and market share • Continued support from existing cus
Slide 8: Sales Contribution
Sales Contribution 1Q09 2Q09 RMB44.7 m 26% RMB89.4 m 74% RMB71.5 m RMB106.2 m Major Customers: • Hangzhou Zhongce • GITI Tyres Major Customers: • Double Coin Tyres • Sumitomo Rubber (China) • Bridgestone • Korean Humho (China) • Pirelli • Continental • Sumitomo Rubber • PT Gajah Tunggal 8 • Goodyear
Slide 9: Gross Profit
Gross Profit Gross Profit Q-Q: 96% Y-Y: 27% RMB’million Gross Profit 100 92 80 59.4 60 41.9 43.6 40 33.4 22.3 20 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 9
Slide 10: Net Profit
Net Profit Net Profit Q-Q: 134% Y-Y: 31% RMB’million Net Profit 50 45 40 37 30 25.5 20 16.5 10.9 10 8.1 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 10
Slide 11: Operating Expenses (2Q09 vs 2Q08)
Operating Expenses (2Q09 vs 2Q08) • Selling and distribution expenses Declined by 6.7% to RMB5.6 mln in 2Q09 Due to lower shipping cost offset by higher volumes of shipments incurred • Administrative expenses Increased by 11.1% to RMB10.0 mln in 2Q2009 Due to increase in overall headcount an
Slide 12: Margins Analysis
Margins Analysis % Gross Profit Margin Net Profit Margin 35 30 24.5 25 20 14.4 15 10 5 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 • Gross profit margin improved due to lower raw material costs, increase of efficiency, economics of scale • Demand picked up from the lowest period in 4Q08 12
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights RMB ’million 30/06/2009 31/12/2008 Current assets 551.9 477.2 Current liabilities 202.2 122.6 Non-current assets 199.7 185.9 Non-current liabilities 0 0 Shareholders’ equity 548.7 540.5 Cash+Notes receivables* 316.4 252.7 *Note: Cash RMB285.9 mln, Notes receivables RMB30.5 m
Slide 14: Key Financial Ratios
Key Financial Ratios 2Q09 1Q09 FY08 Current assets / Current 2.7 3.4 3.9 Liabilities Avg Receivables Turnover 59 69 52 (days) Avg Payables Turnover 10 15 10 (days) Avg Inventory Turnover 31 44 31 (days) Cash Conversion Cycle 80 98 73 (days) Gearing Ratio Net cash Net cash Net cash NAV per share (RMB
Slide 15: Key Developments
euUNSING Key Developments
Slide 16: Key Development in 2Q09
Key Development in 2Q09 Completion of 7000-ton MBTS Plant ( Foray into pharma market) Setting up Risk Management Advisory Committee Partnership with India’s Leading Distributor- Malaney Group 16
Slide 17: Ongoing Projects Glance
Ongoing Projects Glance Project Progress CapEx Insoluble Sulphur plant Completion by End 2009 RMB 10 million from 5,000 to 10,000 tons Anti-Oxidant TMQ plant Completion by End 2009 RMB 10 million from 5,000 to 10,000 tons DCBS of 3,000 tons Completion by FY2009 RMB 15 million production workshop MBT
Slide 18: Outlook for FY2009
euUNSING Outlook for FY2009
Slide 19: PRC Automotive Market
PRC Automotive Market ’000 units PRC Car Sales % 1400 36.4 34 1200 1000 24.7 24.7 19.8 19.2 17 15.4 800 14.1 9.4 600 3.9 3.4 5 400 -2.7 -6.3 200 -12 -14 -15 0 Sales Growth Rate (y-o-y) 19
Slide 20: Challenges & Opportunities Ahead
Challenges & Opportunities Ahead Benefiting from the strong PRC automotive market recovery in 1H09 Challenges: High oil price may dampen the sales of cars International car market recovery? Potential protectionist action from the U.S government to reject Chinese tyre imports into US market Opp
Slide 21: Chairman's Message
Chairman’s Message “ The improvement of business results illustrates the effectiveness of our strategy which is to be more price competitive , and expand new markets through various channels. As a result, we have achieved another historical high sales volume. We are confident of the profitability fo
Slide 22: Beyond FY2009…2010-2012
Beyond FY2009…2010-2012 • Recovery in global tyre/auto, China/India/Brazil growth Engines • Strategy: • Up market share – N. America, LatinAmerica, Europe • Global mkt share 15%-20% for accelerators • 2 growth engines for China Sunsine - Insoluble Sulphur - Antioxidant 22
Slide 23: China Sunsine Chemical Holdings Ltd.
China Sunsine Chemical Holdings Ltd. 中国尚舜化工控股有限公司 Q&A Media/Investor Contact Koh Choon Kong, CFO, choonkong@ChinaSunsine.com Jennie Liu, jennie@ChinaSunsine.com Singapore office: 112 Robinson Road #12-04 Singapore 068902 Tel: (65) 6220-9070 Web: www.ChinaSunsine.com 23 23
China Sunsine Chemical Holdings — 2Q2009 Earnings Presentation on 6ix