Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — China Minzhong Food — FY2016 Earnings Presentation
20 slides from Singapore Exchange's earnings presentation, Aug 11, 2016
Slide 1: China Minzhong Earnings Presentation FY2016
China Minzhong Earnings Presentation FY2016 11 August 2016
Slide 2: Agenda
Agenda Financial Performance Review Outlook & Growth Strategies 1
Slide 3: Income Statement Highlights
Income Statement Highlights Financial Summary (Profitability) Full year ended 30 Jun 3 months ended 30 Jun FY15 4Q FY16 4Q FY15 % Change (RMB’million) FY16 (Restated) % Change (Restated) Revenue 1,822.5 1,971.1 (7.5%) 379.9 463.8 (18.1%) Cost of sales (1,313.2) (1,359.7) (3.4%) (278.8) (286.4) (2.7%
Slide 4: Notes on Income Statement (Full year analysis)
Notes on Income Statement (Full year analysis) Revenue Revenue for FY2016 decreased by 7.5% or RMB148.6 million, to RMB1,822.5 million (FY2015: RMB1,971.1 million). This was mainly due to a decrease in sales of RMB39.6 million from the cultivation business segment and RMB156.8 million from the br
Slide 5: Revenue and Gross Profit breakdown across business segments
Revenue and Gross Profit breakdown across business segments Full year ended 30 Jun 3 months ended 30 Jun (RMB’million) FY16 FY15 % Change 4Q FY16 4Q FY15 % Change Revenue 1,822.5 1,971.1 (7.5%) 379.9 463.8 (18.1%) Processed Business Segment 952.6 904.8 5.3% 225.9 191.1 18.2% Processed vegetables 952
Slide 6: Segmental Revenue by Proportion
Segmental Revenue by Proportion Revenue Mushroom Mushroom spores 4.6% FY16 spores FY15 3.9% Fresh Fresh vegetables vegetables produce produce 33.9% 33.7% Processed vegetables Processed 45.9% Other vegetables branded 52.3% Beverages products Other 15.8% 1.3% branded products Beverages 0.7% 7.9% Mushr
Slide 7: Revenue breakdown across segments
Revenue breakdown across segments RMB’ million 2000.0 1500.0 952.6 904.8 1000.0 617.7 663.6 500.0 312.3 143.8 83.6 77.3 24.8 13.1 0.0 FY16 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 FY15 Processed Fresh vegetables Mushroom spores Beverages Other branded vegetables produce products Processed Business Se
Slide 8: Gross profit breakdown across segments
Gross profit breakdown across segments RMB’ million 700.0 600.0 500.0 400.0 300.0 222.8 223.3 239.2 215.8 200.0 143.3 100.0 59.7 8.5 5.6 2.0 0.5 0.0 FY16 FY15 FY16 FY15 FY15 FY15 FY16 FY15 FY16 FY15 Processed Fresh vegetables Mushroom spores Beverages Other branded vegetables produce products Proces
Slide 9: ASP and Sales Volume Breakdown
ASP and Sales Volume Breakdown FY16 FY15 % FY16 FY15 % ASP/ RMB ASP/ RMB Change Sales volume/ Sales volume/ Change per kg per kg ‘000 tonnes ‘000 tonnes Processed vegetables (1) 44.72 39.78 12.4% 21.3 22.7 (6.3%) Fresh vegetables produce 3.60 3.27 10.3% 171.4 203.1 (15.6%) (1) The ASP and sales volu
Slide 10: Financial Summary: Balance Sheet (Key Highlights)
Financial Summary Balance Sheet (Key Highlights) As at 30 June 2016 As at 30 June 2015 (RMB’million) (restated) % Change Total Assets 7,516.8 7,476.4 0.5% Non-current assets 2,717.1 2,513.1 8.1% Property, plant and equipment 2,178.6 2,019.8 7.9% Land use rights 128.4 131.5 (2.4%) Land improvement co
Slide 11: Notes to Balance Sheet
Notes to Balance Sheet Assets Total non-current assets of RMB2,717.1 million was 8.1% or RMB204.0 million higher than 30 June 2015. The increase was principally attributable to additions to property, plant and equipment and land improvement costs, partly offset by depreciation and amortisation of
Slide 12: Financial Summary: Cash Flow Highlights
Financial Summary Cash Flow Highlights For full year ended 30 Jun For 3 months ended 30 Jun FY15 4QFY15 FY16 % Change 4QFY16 % Change (RMB’million) (Restated) (Restated) Net cash from operating activities 667.1 866.8 (23.0%) 305.4 188.3 62.2% Net cash (used in) / generated from (374.1) 76.3 n.a. (10
Slide 13: Agenda: Outlook & Growth Strategies
Agenda Financial Performance Review Outlook & Growth Strategies 12
Slide 14: Favorable industry conditions and strong government support
Favorable industry conditions and strong government support PRC vegetables export market poised for World’s top producer of vegetables continued strong growth Estimated breakdown of production volume of fresh Market size of vegetables exports (PRC), 2012–2016E vegetables produce and processed vegeta
Slide 15: PRC government's supportive initiatives
PRC government’s supportive initiatives PRC’s 12th Five Year Plan continues to support large-scale farming 1 Food security / ensuring food supply 2 Food safety Optimizing variety structure, improving yield Enhance animal & plant disease prevention and and standardizing the management of large- c
Slide 16: PRC's No. 1 Central Document focuses on agriculture for 12th consecutive year
PRC’s No. 1 Central Document focuses on agriculture for 12th consecutive year Source: Ministry of Agriculture, PRC
Slide 17: Key growth strategies
Key growth strategies 1 Continued shift of product mix towards higher value products Rising affluence of China’s population –> increased demand for champignon mushrooms, king oyster mushrooms and black fungus Introduction of wider range of products and optimization of product mix to meet demands
Slide 18: Cultivation of champignon mushrooms using industrialized farming
Cultivation of champignon mushrooms using industrialized farming Front view of Tianjin Minzhong’s second phase of industrialized farming facilities Strategy During peak season – industrialized farming of champignon mushrooms in-house for processing needs. This reduces the Group’s working capital n
Slide 19: Advantages of Industrialized farming
Advantages of Industrialized farming What is industrialized farming? Advantages of industrialized farming Cultivation of vegetables under closed-room, air- Ability to grow vegetables even during off-peak conditioned environment seasons when local climatic conditions are not conducive Centralized
Slide 20: Contact Us
Contact Us China Minzhong Food Corporation Limited 229 Mountbatten Road #02-05 Mountbatten Square Singapore 398007 Tel: +65 6346 7506 Fax: +65 6346 0787 www.chinaminzhong.com 19