Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — Xiwang Sugar Holdings Company — FY2009 Earnings Presentation
26 slides from Xiwang Property's earnings presentation, Apr 13, 2010
Slide 1: 2009 Annual Results Presentation
G@ivti-tala t ~ ar LIanldingan r , | iment ' ng Sugar Holdings Company Limitec 1g Stock Code : 2088) Building Better Life |
Slide 2: Contents
Contents • Company Profile • 2009 Overview • Financial Review • Outlook and Development 2
Slide 3: Company Profile
Company Profile • We are a leading provider of functional starch sugars and corn related products in China No. 1 in crystalline glucose No. 1 in crystalline fructose No. 1 in sodium gluconate • Our products are important ingredients to a variety of industries: Food & Beverages, Pharmaceuticals, Ferm
Slide 4: 2009 Overview
2009 Overview • We recorded substantial improvement in financial performance in 2009, net profit of RMB 102 million up p 60% from 2008 • Indeed, our view on 2008 and 2009 performances was unsatisfactory, as the Group suffered from the impact of melamine scandal ((2007 net profit: RMB 361 million) •
Slide 5: Financial Review
Financial Review 5
Slide 6: Summary Income Statement
Summary Income Statement 2009 2008 Increase/ (Decrease) RMB million Revenue 2,481 2,544 (3%) Gross profit 317 220 44% Operating profit 172 50 241% Profit before tax 116 61 91% Net profit 102 64 60% RMB per share Basic EPS 0.120 0.075 60% Proposed final dividend 0.037 0.027 37% % Gross profit margin
Slide 7: Summary Balance Sheet and Financial Ratios
Summary Balance Sheet and Financial Ratios RMB million 31 Dec 2009 31 Dec 2008 Total current assets 2,184 1,041 Total non-current assets 1,826 1,656 Total assets 4,010 2,697 Total current liabilities 2,347 1,329 Total non-current liabilities 190 - Total liabilities 2 537 2,537 1 329 1,329 Total equi
Slide 8: Revenue by Products
Revenue by Products Corn gluten meal Corn gluten meal 10% 10% Corn gluten feed 9% Corn gluten feed 14% Crystalline glucose Corn germ 42% 10% Crystalline glucose 45% Corn germ 12% Corn starch 14% Corn starch Syrup 7% 2% Others Sodium gluconate 5% Others 8% 12% 2009 2008 8
Slide 9: Revenue by Regions
Revenue by Regions Chi China China 88% 87% Overseas Overseas 12% 13% 2009 2008 9
Slide 10: Sales Volume
Sales Volume 2009 2008 Increase/ (Decrease) Tonnes Starch sugars Crystalline glucose 442,583 485,975 (9%) Crystalline fructose 809 426 90% Fructose-glucose syrup 33,791 5,646 498% Corn co-products and others Corn gluten meal 62,229 59,374 5% Corn gluten feed 204,725 307,788 (34%) Corm germ 88,474 77
Slide 11: Average Selling Price
Average Selling Price 2009 2008 Increase/ (Decrease) RMB per tonne (VAT-inclusive) Starch sugars Crystalline glucose 2,775 2,740 1% Crystalline fructose 8,543 10,544 (19%) Fructose-glucose syrup 2,053 1,928 6% Corn co-products and others Corn gluten meal 4,792 5,054 (5%) Corn gluten feed 1,059 1,178
Slide 12: Cost of Sales
Cost of Sales Other materials Other materials 4% 8% Utilities 12% Utilities 11% Corn Depreciation Depreciation 76% Corn 3% 4% 74% Labour Labour 2% 2% Others Others 2% 2% 2009 2008 2009 2008 Average corn cost per tonne (with VAT) : RMB 1,600 RMB 1,680 dropped by 5% Volume of corn processed : 1.15 mil
Slide 13: Gross Profit Margin
Gross Profit Margin 2009 2008 Increase/ (Decrease) Starch sugars Crystalline glucose 17% 13% 4% pts Crystalline fructose 33% NA NA Fructose-glucose syrup 17% NA NA Corn co-products p and others Corn gluten meal 5% 22% (17% pts) Corn gluten feed 15% 13% 2% pts Corm germ 5% 7% (2% pts) Corn starch 9%
Slide 14: Outlook and Development
Outlook and Development 14
Slide 15: Crystalline Glucose Supply and Demand in China
Crystalline Glucose Supply and Demand in China Major events: Tight-supply Over-supply Tight-supply • We enjoy 1/3 market share in China Tonne 1,600,000 • Chinese government adopted policy in Sept 2007 1,400,000 to restrict aggressive expansion 1,200,000 • Smaller players left the 1,000,000 industry
Slide 16: Price trend of corn, crystalline glucose and cane sugar in China
Price trend of corn, crystalline glucose and cane sugar in China RMB per tonne 5,500 5,000 4,500 Cane sugar 4,000 , 3,500 3,000 Crystalline glucose price becomes more sensitive to 2,500 corn price since Crystalline glucose tight supply 2,000 1,500 1,000 Corn 500 - 01/2006 04/2006 07/2006 10/2006 01/
Slide 17: Something interesting …
Something interesting … Sugar consumption in terms of cane sugar and starch sugar (kg per capita per year) Australia 54.3 Europe 36.9 N. America 33.6 Hong Kong 27.7 World 22.7 China 10.1 … to reach 15 kg by 2015 China ice‐cream production rose 16 times in ten years, to become the world’s world s lar
Slide 18: Outlook and Development
Outlook and Development Our mission is to enhance healthiness and qualities of lives of human beings • Variety of functional starch sugars • Rising health awareness • Increasing coverage of personal healthcare in rural area • Fulfilling national’s sustainable development plan Our products developmen
Slide 19: Questions and Answers
Questions and Answers For further information or IR requests, please contact our IR team at ir@xiwang ir@xiwang-sugar sugar.com.hk com hk or visit our company website at www.xiwang-sugar.com THANK YOU. 19
Slide 20: Appendix
Appendix 20
Slide 21: Overview of Corn Processing Industry
Overview of Corn Processing Industry Basic Refinery - Separation of corn to obtain the components Starch Starch Gluten Fiber Germ Deep Processing - Technological processing of starch to become higher values products Starch Sugars Sugar Alcohols (Polyol) Bio-products/ fermentation products Other Prod
Slide 22: Our Circular Economy and Production Capacity
Our Circular Economy and Production Capacity Starch Plant Process max. 1.5 million tonnes of corn p.a. Corn to obtain various corn products: • Corn gluten meal • Corn gluten feed • Corn germ • Corn starch Corn storage capacity max. 500,000 tonnes Corn Starch + + Sewage treatment Glucose Plant Used w
Slide 23: Our Products and Customers Profile
Our Products and Customers Profile Key Products Functions/ Applications Nature of Customers Starch sugars • Crystalline glucose Unique sweet perception Food and beverages producers High fermentation ability Fermented products and chemicals manufacturers Immediate energy source Hospitals and pharmace
Slide 24: 5-year Financial Summary
5-year Financial Summary RMB million 2005 2006 2007 1H 2008 2008 1H 2009 2009 Operating performance Revenue 1,038 1,385 2,062 1,386 2,544 1,031 2,481 Gross profit 261 365 464 264 220 75 317 EBITDA 255 357 521 297 216 60 256 Operating profit 228 312 406 202 50 20 172 Net profit 210 290 361 219 64 1 1
Slide 25: Key Operational Data
Key Operational Data 2007 1H 2008 2008 1H 2009 2009 ASP (VAT-inclusive, RMB/ tonne) • Crystalline glucose 2,698 2,823 2,740 2,537 2,775 • Fructose-glucose syrup 2,366 2,608 1,928 2,087 2,053 • Corn gluten meal 3,889 5,081 5,054 4,623 4,792 • Corn gluten feed 910 1,185 1,178 941 1,059 • Corn germ 3,4
Slide 26: Forward-looking Statement and Disclaimer
Forward-looking Statement and Disclaimer The information provided to you in this presentation contains forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These statements relate to events that involve known and unknown risks, uncertainties and other
Xiwang Sugar Holdings Company — FY2009 Earnings Presentation on 6ix