Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — Xiwang Sugar Holdings Company — FY2006 Earnings Presentation
26 slides from Xiwang Property's earnings presentation, April 2007
Slide 1: Xiwang Sugar Holdings Company Limited 2006 Annual Results Presentation
Xiwang Sugar Holdings Company Limited 2006 Annual Results Presentation April 2007
Slide 2: Contents
Contents Major Achievements in 2006 2006 Annual Results Business Review Future Prospects Open Forum 2
Slide 3: 2006 Major Achievements
2006 Major Achievements 3
Slide 4: 2006 Major Achievements
2006 Major Achievements In 2006, Xiwang Sugar continued to be ranked as the largest producer of starch based glucose in the PRC Turnover amounted to approximately RMB1,385 million, up 33.5% Profit attributable to equity holders reached RMB290 million, up 38.3% Proposed final dividend of HK 14 cents
Slide 5: 2006 Annual Results
2006 Annual Results 5
Slide 6: Financial Highlights
Financial Highlights For the year ended 31 December Unit: RMB (Millions) 2006 2005 Change (%) Turnover 1,384.9 1,037.7 33.5% Gross profit 365.1 261.2 39.7% Operating profit 316.4 228.3 38.6% Profit attributable to equity 290.2 209.8 38.3% holders EPS - Basic (RMB) 0.356 0.365 -2.5% 6
Slide 7: Continuous Growth in Turnover
Continuous Growth in Turnover Rmb Mil Turnover Analysis 1,500 33.5% 1384.9 72.2% 1037.7 1,000 602.7 500 0 2004 2005 2006 For the year ended 31 December 7
Slide 8: Continuous Growth in Net Profit
Continuous Growth in Net Profit Rmb Mil Net Profit Analysis 350 38.4% 290.2 300 250 166.2% 209.8 200 150 100 78.8 50 0 2004 2005 2006 For the year ended 31 December 8
Slide 9: Improving Margins
Improving Margins 30% 25.2% 26.4% 25% 20.3% 19.7% 21.0% 20% 20.2% 15% 13.1% 13.6% 10% 5% 0% 2003 2004 2005 2006 For the year ended 31 December Gross profit margin Net profit margin 9
Slide 10: Margin Analysis
Margin Analysis Gross Margin by Product Categories For the year ended 31 December Change % 2006 2005 (%pts) Corn based biochemical 28.6 29.7 -1.1 products Crystallised glucose 31.4 29.8 +1.6 Glucose syrup 31.4 29.8 +1.6 Lysine products 23.0 29.5 -6.5 Corn refined products 21.7 13.3 +8.4 Overall 26.4
Slide 11: Margin Contribution Analysis
Margin Contribution Analysis 2006 2005 Crystallised Crystallised Gluose Gluose 44.9% 52.1% Others 0.2% Corn refined Lysine products Lysine Products 26.4% Products 19.2% 19.1% Corn refined Glucose Syrup Glucose products 9.4% Syrup 14.7% 14.0% Margin Contribution by Product Categories For the year end
Slide 12: Turnover by Products
Turnover by Products 2006 2005 Crystallised Gluose Crystallised 37.7% Gluose 44.2% Corn refined Others products 0.5% 32.1% Lysine Products Lysine Products 21.8% 16.4% Corn refined Glucose Syrup products Glucose Syrup 7.9% 27.6% 11.8% For the year ended 31 December 12
Slide 13: Cost of Sales Breakdown
Cost of Sales Breakdown Corn 75.0% General Xiwang users Sugar Electricity (Rmb/kwh) 0.61 0.375 Steam (Rmb/ton) 95 85 Electricity and Other raw steam Labour materials Depreciation * 13.0% 2.0% 3.0% 7.0% For the year ended 31 December 2006 * Average cost of corn in the year ended 31 December 2006 was
Slide 14: Financial Ratio Analysis
Financial Ratio Analysis As at 31 As at 31 December 2006 December 2005 Total assets (Rmb mil) 2,195.5 1,387.5 Net assets (Rmb mil) 1,171.4 841.0 Cash on hand (Rmb Mil) 662.6 502.0 Current ratio 2.5 2.2 Net gearing ratio* 17.8% N/A *Footnote – net gearing ratio = (Debt – Cash/Bank Balance / sharehold
Slide 15: Business Review
Business Review 15
Slide 16: Business Review
Business Review Favourable market environment, continued economic growth and rising consumer purchasing power in the PRC fuelled the Group’s remarkable results in 2006 Due to the surge in the cane sugar price in the first half of 2006, an increasing number of manufacturers, especially in the food an
Slide 17: Price Trends of Corn, Glucose and Cane Sugar
0.00 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 1/1/2005 1/2/2005 1/3/2005 1/4/2005 1/5/2005 1/6/2005 1/7/2005 1/8/2005 Corn Price 1/9/2005 1/10/2005 1/11/2005 1/12/2005 1/1/2006 Glucose Price 1/2/2006 1/3/2006 1/4/2006 1/5/2006 1/6/2006 1/7/2006 Cane Sugar Price 1/8/2006 1/9/2006 1/10/20
Slide 18: Strengthen Market Leading Position
Strengthen Market Leading Position Aggressive production capacity expansion program – new starch paste and glucose production plants under construction; expected increase in annual production capacity: • Starch paste: from 400,000 tonnes to 1,000,000 tonnes • Crystallised glucose 250,000 tonnes to 8
Slide 19: Diversified and Excellent Customer base
Diversified and Excellent Customer base 19
Slide 20: Enhancing Operating Efficiency
Enhancing Operating Efficiency Sourcing of raw materials: • Forming strategic alliances with our major suppliers and entering into longer term contracts for the purchasing of the corn • Diversifying the sources of our raw material from other provinces and overseas - During the year under review, 52,
Slide 21: Strengthen R&D Capabilities
Strengthen R&D Capabilities Partnerships and collaborations with various universities and research institutes in the PRC Invention of a new type of starch sweetener namely Crystallized Fructose Glucose (CFG) • Healthier and 10% sweeter than cane sugar • Target to market this product to customers in
Slide 22: Future Prospects
Future Prospects 22
Slide 23: Future Prospects and Development Strategies
Future Prospects and Development Strategies The new production facilities for starch paste and crystallized glucose are expected to commence production in the first quarter of 2007, strengthening the Group's leading position Continuous sales and marketing efforts in the overseas markets, especially
Slide 24: Capacity Expansion
Capacity Expansion Capacity expansion plan for FY2007 FY2007 Designed FY2007 Estimated Product FY2006 Capacity Capacity Expansion Actual Capacity Starch Paste 400,000 tonnes 1,000,000 tonnes 700,000 tonnes Crystallised Glucose 250, 000 tonnes 800,000 tonnes 500,000 tonnes Glutamic Acid - 80,000 tonn
Slide 25: Share Data
Share Data Based on the closing price as of 30 Mar 2007 Share price HKD 3.73 52 Weeks High / Low HKD 6.9 / 3.3 Issued shares 827.7 m Basic EPS HKD 0.356 (for the year ended 31 December 2006) P/E 10.5x Dividend yield 3.75% Market capitalization 3.09 bn 25
Slide 26: Open Forum
Open Forum 26
Xiwang Sugar Holdings Company — FY2006 Earnings Presentation on 6ix