Slide 1: Annual Results Presentation 29 June 2021
2020-2021 Annual Results Presentation 29 June 2021 1
Slide 2: Disclaimer
Disclaimer NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS NOT PERMITTED UNDER THE LAW OF THAT JURISDICTION This document has been prepared by Precision Tsugami (China) Corporation Limited (the “Company”) solely
Slide 3: Agenda
Agenda Annual Results 1 Summary Annual Business 2 Review 03 Appendix 3
Slide 4: Annual Results Summary
1 Annual Results Summary (April 2020 to March 2021) 1.1 Financial Results Summary 1.2 Key Financial Indicators 1.3 Sales Revenue by Product Category Domestic and Overseas Sales 1.4 Revenue and Distribution Domestic Downstream Customers 1.5 Distribution by Industry 4
Slide 5: 1.1 Financial Results Summary
1.1 Financial Results Summary • The Group’s sales revenue, gross profit, net profit, and earnings per share hit a record high; • Sales revenue amounted to RMB3.117 billion. Gross profit was RMB765 million. Net profit was RMB392 million. Earnings per share were RMB1.03; • Sales revenue increased by 6
Slide 6: 1.2 Key Financial Indicators
1.2 Key Financial Indicators 1. Safety FY2019 FY2020 FY2021 1.1 Current Ratio (Current assets ÷ Current liabilities) 2.9 3.2 2.4 1.2 Quick Ratio ((Current assets - Inventory) ÷ Current 1.7 1.8 1.6 liabilities) 1.3 Gearing Ratio ((Total Liabilities ÷ Total Assets)×100%) 28.4% 23.9% 35.1% 2. Revenue F
Slide 7: 1.3 Sales Revenue by Product Category
1.3 Sales Revenue by Product Category • The Group’s main product, precision lathes, maintained a leading position in China. Sales revenue increased by 61.1% year-on-year to reach a record high; • Driven by the automotive and 3C* industries, the precision machining centers category achieved an outsta
Slide 8: 1.4 Domestic and Overseas Sales Revenue and Distribution
1.4 Domestic and Overseas Sales Revenue and Distribution • With a huge demand for high-end CNC machine tools from domestic downstream industries, sales revenue increased by 85.4% year-on-year to reach a historical high of RMB2.67 billion. (Unit: RMB 100 million) 31.17 28.51 4.47 （14.3%） 23.15 8.77 （
Slide 9: 1.5 Sales Revenue from Domestic Downstream Customers by Industry
1.5 Sales Revenue from and Distribution of Domestic Downstream Customers by Industry • Benefiting from the strong performance of the communications, cell phone, automation and construction machinery industries, sales in the 3C and pneumatic and hydraulic industries increased significantly; the autom
Slide 10: Annual Plans & Progress
2 Annual Plans & Progress 2.1 Launch of New Models 2.2 Active Capacity Expansions 2.3 Business Improvements 2.4 Stable Dividend Policy 10
Slide 11: 2.1 New Models Launched This Fiscal Year
2.1 New Models Launched This Fiscal Year Type Model Highlights Oriented to the auto parts and hydraulic parts industries, can Precision Lathe BW329ZJ be controlled at 9 axes at the same time, company's most high-end product. Oriented to smartphone parts industry such as lens gasket Precision Lathe B
Slide 12: 2.1 New Models to be Launched
2.1 New Models to be Launched Type Model Highlights 10-12 inch chuck series launched for the first time, filling the Precision Lathe M10J gap in the turret lathe product line. Will become an important product to expand sales in the automotive industry Precision Machining The BT40 series is built for
Slide 13: 2.2 Active Capacity Expansion - Anhui New Factory
2.2 Active Capacity Expansion - Completion and Production Commencement in Anhui New Factory • The new factory in Anhui was completed in March, providing impetus to the Group’s development • The new plant is expected to contribute about 30% cast supply of the Group and increase the overall production
Slide 14: 2.2 Active Expansion of Production Capacity – Capital Expenditure
2.2 Active Expansion of Production Capacity – Continuous Increases in Capital Expenditure • The Group is confident about the growth of China's CNC machine tool market and will continue to increase capital expenditures to further expand in scale. (Unit: RMB'000) TBD 151,883 100,811 100,690 78,797 41,
Slide 15: 2.3 Improvements in Business Strength
2.3 Improvements in Business Strength • The Group continues to increase business outlets, intensively develop markets in the "three provinces and one city", and strengthen sales and service forces to improve customer satisfaction; • The Group actively cultivates new distributors to attract new custo
Slide 16: 2.4 Stable Dividend Policy
2.4 Stable Dividend Policy • In the second half of the year, the Board of Directors recommended a dividend of HK$0.25 per share, representing a total dividend of HK$0.4 for the year and totaling HK$151 million, the highest since listing; • The Company will continue to generate investment returns for
Slide 17: Appendix
PRECISION TSUGAMI CHINA Appendix 17
Slide 18: Appendix I. Consolidated Statement of Profit and Loss
Appendix I. Consolidated Statement of Profit and Loss and Other Comprehensive Income For the Year Ended 31 March No. (RMB'000) FY2019 FY2020 FY2021 1 Income 2,850,883 1,943,569 3,116,976 2 Cost of sales (2,138,067) (1,551,476) (2,351,669) 3 Gross profit 712,816 392,093 765,307 4 Other income and gai
Slide 19: Appendix II. Consolidated Statement of Financial Position
Appendix II. Consolidated Statement of Financial Position No. (RMB'000) FY2019 FY2020 FY2021 1 Property, plant and equipment 346,093 452,116 507,688 2 Right-of-use assets - 45,590 44,997 3 Prepaid land lease payments 42,235 - - 4 Intangible assets 3,936 3,592 4,151 5 Deferred tax assets 8,664 10,416
Slide 20: Appendix III. Consolidated Statement of Cash Flow
Appendix III. Consolidated Statement of Cash Flow For the Year Ended 31 March No. (RMB'000) FY2019 FY2020 FY2021 Cash flow from operating activities 1 Profit before tax 483,679 223,413 570,258 Adjustments for: 2 Finance costs - 76 990 3 Bank interest income (3,096) (4,808) (10,615) Net gain/(loss) o
Slide 21: Appendix III. Consolidated Statement of Cash Flow (Cont.)
Appendix III. Consolidated Statement of Cash Flow (Cont.) For the Year Ended 31 March No. (RMB'000) FY2019 FY2020 FY2021 Cash flow from investing activities 24. Interest received 3,096 4,808 10,615 25. Purchase of items of property, plant and equipment (66,948) (151,282) (99,143) Proceeds from dispo
Slide 22: Q&A
Q&A