Yip's Chemical Holdings Limited · HKEX:408
Yip's Chemical — FY2023 Earnings Presentation
25 slides from Yip's Chemical's earnings presentation, Mar 25, 2024
Slide 1: 2023 Annual Results Presentation
(SEHK: 00408) (Incorporated in the Cayman Islands with limited liability) 2023 Annual Results Presentation 25 March 2024
Slide 2: Disclaimer
Disclaimer The information on these slides does not constitute a recommendation by financial adviser or selling agent that any recipient should invest in the Company. Recipients should make their own independent appraisal, evaluation, assessment and investigation as deemed necessary by them. 2
Slide 3: Contents
Contents 1 Results Highlights 2 Consolidated Financial Statement 3 Core Business Analysis & Growth Strategies 4 ESG Journey
Slide 4: Results Highlights
Results Highlights Improved profitability and stability of core Strong financial position with sufficient businesses despite highly volatile environment deployable financial resources Overall performance in 2023 recorded a remarkable Gearing ratio maintained at a relatively low level turnaround
Slide 5: Strong Positioning in Core Businesses
Strong Positioning in Core Businesses Coatings Inks Lubricants Top 10 player in China’s No. 1 player in China’s Branded player in coatings market* inks market# automobile lubricants *Bauhinia Paints was ranked 7th in Mainland China in “2023 Top International Coatings Companies” of Coatings World Mag
Slide 6: Financial Highlights
Financial Highlights For the Year Ended 31 Dec (HK$ million, audited) 2023 2022^ % Change Revenue 3,217 3,359 -4% Sales Volume (metric tonnes) 292,000 269,000 +9% Gross Profit 782 718 +9% Gross Profit Margin 24.3% 21.4% +2.9% points Profit Attributable to Owners 86.6 1,217.8# -93% Earnings Per Share
Slide 7: Contents
Contents 1 Results Highlights 2 Consolidated Financial Statement 3 Core Business Analysis & Growth Strategies 4 ESG Journey
Slide 8: Revenue & Sales Volume
Revenue & Sales Volume Full Year Revenue (Year ended 31 Dec, audited) Full Year Sales Volume (Year ended 31 Dec, audited) Interim Revenue (Period ended 30 Jun, unaudited) Interim Sales Volume (Period ended 30 Jun, unaudited) HK$ million Tonnes 20,000 2,000,000 17,805 18,000 1,800,000 16,000 1,490,89
Slide 9: Profit Attributable to Owners
Profit Attributable to Owners Full Year (Year ended 31 Dec, audited) Interim (Period ended 30 Jun, unaudited) HK$ million 1,217.8^ 1,200 900 600 406.3 272.9 302.6 299.8 300 88.4 108.3 86.6 58.8 16.3 0 2019 2020 2021 2022 2023 ^Included one-off gain of HK$1.184 billion from the sale of 51% effective
Slide 10: Earnings Per Share
Earnings Per Share Full Year (Year ended 31 Dec, audited) Interim (Period ended 30 Jun, unaudited) HK cents 214.2^ 200 150 100 72.8 53.8 53.9 48.4 50 15.7 19.1 15.2 10.4 2.9 0 2019 2020 2021 2022 2023 ^Included one-off gain of HK208.3 cents per share from the sale of 51% effective stake regarding Ha
Slide 11: Dividend Per Share
Dividend Per Share Final (Year ended 31 Dec) Interim (Period ended 30 Jun) Special HK cents 100 90 90 80 70 60 50 75 40 40 10 30 20 22 20 18 12 13 16 5 10 2 12 10 10 7 6 0 2019 2020 2021 2022 2023 11
Slide 12: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (Audited, HK$ million) As of 31 Dec 2023 As of 31 Dec 2022 % Change Non-current Assets 3,766 3,039 +24% Current Assets 2,653 4,973 -47% Current Liabilities (1,967) (3,145) -37% Net current Assets 686 1,828 -62% Non-current Liabilities (537) (408) +32% Cap
Slide 13: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow Year Year (Audited, HK$ million) Ended 31 Dec 2023 Ended 31 Dec 2022 Net cash inflow (outflow) from: - Operating activities 237 414 - Investing activities 655 77 - Financing activities (1,343) (147) Net decrease in cash and cash equivalents (451) 344 Cash & cash e
Slide 14: Liquidity and Financial Resources
Liquidity and Financial Resources 31 Dec 2023 30 Jun 2023 31 Dec 2022 Net Borrowings (HK$ million) 548 4 1,092 Gearing Ratio 14.0% 0.1% 24.8% Banking Facilities Limit (HK$ million) As of 31 Dec 2023 Utilized 1,678 Reserved 599 Total 2,277 14
Slide 15: Contents
Contents 1 Results Highlights 2 Consolidated Financial Statement 3 Core Business Analysis & Growth Strategies 4 ESG Journey
Slide 16: Coatings
Coatings Enhanced Product-mix and Effective Cost Control Yield Results For the Year Ended 31 Dec (HK$ million, audited) (HK$ million) 2023 2022 % Change Revenue 1,585 1,639 -3% Gross Profit 440 392 +12% GP Margin 27.8% 23.9% +3.9% points Operating Profit 57.3 8.5 +571% Performance Outlook Sales vo
Slide 17: Significant Presence in China Architectural Coatings Market
Significant Presence in China Architectural Coatings Market Personalized Offerings for Growing Renovation Market Strong retail network covering all parts of China Total solution for home/business renovation Enhanced customer experience in branded stores • Emerging consumer demands for quality
Slide 18: Inks
Inks Consolidate Market Position and Embrace New Opportunities For the Year Ended 31 Dec (HK$ million, audited) (HK$ million) 2023 2022 % Change Revenue 1,206 1,340 -10% Gross Profit 227 226 +1% GP Margin 18.8% 16.9% +1.9% points Operating Profit 37.9 9.4 +302% Performance Outlook Slowdown in econ
Slide 19: Lubricants
Lubricants Focus on Distributor Network Expansion For the Year Ended 31 Dec (HK$ million, audited) (HK$ million) 2023 2022 % Change Revenue 345 299 +15% Gross Profit 75 60 +25% GP Margin 21.8% 20.1% +1.7% points Operating Profit (Loss) 10.8 (2.1) N/A Performance Outlook Sales revenue and volume in
Slide 20: Other Businesses
Other Businesses Investment in Properties Solvents Associate Segment The Largest Acetate Solvents Investment Properties in Company in the World China and Hong Kong Recorded a strong growth of 15% Revenue increased by 3% to in sales volume in 2023, reaching HK$11 million, comprising mainly a hist
Slide 21: 2024: Strive for High-quality Development Expand into New Dimensions
2024: Strive for High-quality Development Expand into New Dimensions China’s economy is expected to gradually recover under the 1 favorable policies; Further expansion of distribution network and increase in higher-end product supplies will drive overall sales and profitability Remarkable improvemen
Slide 22: Contents
Contents 1 Results Highlights 2 Consolidated Financial Statement 3 Core Business Analysis & Growth Strategies 4 ESG Journey
Slide 23: Embracing ESG for Long-Term Values
Embracing ESG for Long-Term Values 關鍵環境表現績效指標 Empowering and Contributing Key Environmental Performance Indicators 賦能與貢獻 2022和2023年比較 2022 and 2023 comparison* 按每噸產品 (per tonne of products) 企業義工拜訪弱能 溫室氣體排放密度 人士院舍表達關懷 Greenhouse gas emission intensity Company volunteers visited care home of the disab
Slide 24: Key ESG Awards & Recognitions
Key ESG Awards & Recognitions Asia/ Hong Kong Industry Cares Recognition Scheme 2023 - The Federation of Hong Kong Industries Outstanding Caring Awards & The Most Devoted Award (SME Group) HKSAR Environmental Protection Department Hong Kong – Guangdong Cleaner Production Excellent Partners (Manufact
Slide 25: Thank you
Thank you Yip’s Chemical Investor Relations & Corporate Communications Ms. Landico Wong Landico.Wong@yipschemical.com +852 2675 2249 25
Yip's Chemical Holdings — FY2023 Earnings Presentation on 6ix