Yip's Chemical Holdings Limited · HKEX:408
Yip's Chemical — H1 2010 Earnings Presentation
32 slides from Yip's Chemical's earnings presentation, 2010
Slide 1: 2010 Interim Results Announcement
(SEHK: 408) 2010 Interim Results Announcement Presenters: Mr. Tony Chi Shing Ip (Chairman) Mr. Kenny Kam Yim Wong (CEO) Mr. Robert Man Kim Young (Executive Director) Mr. George Siu Ping Ng (Executive Director) Mr. Johnson Sai Hou Ho (CFO) 1
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: Programme
Programme Chairman’s Remarks Financial Highlights Consolidated Financial Statements Core Business Analysis Corporate Social Responsibility 3
Slide 4: Chairman's Remarks
Chairman’s Remarks Solid operating results Turnover increased by 36% to HK$3,652,433,000 Sales volume increased by 25% to 350,607 tonnes Challenging operating environment Unusually favorable operating environment in 1H 2009 set a very high benchmark for comparison Higher capex on upgrading existing
Slide 5: Chairman's Remarks
Chairman’s Remarks Raw material prices returned to a relatively normal level since September Gross margin has been recovering Business prospects are positive Sales to continue to grow on the back of China’s expanding domestic market Confident about accomplishing the target of over HK$10 billion in s
Slide 6: Financial Highlights
6 asian YIPSCHEMICAL Financial Highlights
Slide 7: Financial Highlights
Financial Highlights Six months ended 30 Sep (unaudited, HK$’000) 2010 2009 % Change Turnover 3,652,433 2,675,814 36% Gross Profit 587,931 663,103 -11% Gross Profit Margin 16% 25% -9% point Net Profit Attributable to Owners 171,493 227,724 -25% Earnings Per Share HK31.2 cents HK42.5 cents -27% Inter
Slide 8: Financial Highlights
Financial Highlights Products Turnover (HK$ ’000) % Breakdown Six months ended 30 Sep Six months ended 30 Sep 2010 2009 % Change 2010 2009 Solvents* 2,192,649 1,425,717 54% 60% 53% Coatings 1,289,096 1,092,724 18% 35% 41% Lubricants* 174,666 138,024 27% 5% 5% * Non-controlling interests in Solvents
Slide 9: Financial Highlights: Operating Profits
Financial Highlights: Operating Profits Six months ended 30 Sep (unaudited, HK$’000) * Non-controlling interests in Solvents and Lubricants businesses 9
Slide 10: Consolidated Financial Statements
Consolidated Financial Statements 10
Slide 11: Turnover
Turnover O te Oeea HK$ million —Full Year — Interim 7,000 6,000 + 5,456 5,000 + 4,000 + 3,000 + 2,000 + 1,000 0 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010(Apr- Sep) 11
Slide 12: Net Profit Attributable to Owners
Net Profit Attributable to Owners 12
Slide 13: Dividend Per Share
Dividend Per Share * * * * * include special dividend of HK2.0 cents 13
Slide 14: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position As at 31 Mar 10 As at 30 Sep 10 (audited & restated, % Change (unaudited, HK$’000) HK$’000) Non-current assets 1,211,473 1,121,124 8% Current asset 3,645,131 3,359,744 8% Current liabilities (2,008,546) (1,918,792) 5% Net current assets 1,636,585 1,440,95
Slide 15: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Six months ended 30 Sep (unaudited, HK$’000) 2010 2009 Net Cash Inflow (Outflow) - Operating Activities (90,764) (21,031) - Investing Activities 86,116 (133,181) - Financing Activities 82,162 (63,916) Net increase / (decrease) in cash and cash equivalents 77,514
Slide 16: Liquidity and Financial Resources
Liquidity and Financial Resources HK$309,551,000 30 Sep 2010 (Gearing Ratio: 13.9%) Net Borrowing HK$44,823,000 31 Mar 2010 (Gearing Ratio: 2.1%) Estimated Capital 2011 Jan-Dec 2010 Apr-Dec Investments 710,000 299,000 (HK$’000) Banking Facilities Utilized 1,538,975 Utilization Reserved 1,528,521 (HK
Slide 17: Core Business Analysis
Core Business Analysis Solvents Coatings Lubricants 17
Slide 18: Core Business Analysis: Overview
Core Business Analysis: Overview Solvents turnover reached HK$2.2 billion, up 54% while operating profit reached HK$117 million, a decrease of 23% Coatings turnover and operating profit were at HK$1.3 billion and HK$90 million respectively, representing an increase of 18% and a decrease of 39% respe
Slide 19: Core Business Analysis: Solvents
Core Business Analysis: Solvents Solvent sales volume grew by 25% to 265,519 tonnes, raw solvents sales reached 248,747 tonnes, an increase of 26% Decline in gross margin as a result of unusually and remarkably large volatilities in raw material prices Plans are now underway to expand acetate solven
Slide 20: Core Business Analysis: Coatings
Core Business Analysis: Coatings Total coating volume increased by 16% to 74,909 tonnes Lower gross margin resulted from unusual volatilities in raw material prices and higher operating expenses because of increased efforts in brand management Gross margin has started to recover towards the latter h
Slide 21: Core Business Analysis: Coatings
Core Business Analysis: Coatings Household Coatings: Store revamping project to be fully completed by 2011 Continue to add new distributorships in the secondary and tertiary towns Step up brand building efforts by investing in web-based and TV advertising New water-based household coating production
Slide 22: Core Business Analysis: Coatings
Core Business Analysis: Coatings “Furnish Your Home; Bring Colour and Change to Your Life” online marketing campaign launched in June 2010 22
Slide 23: Core Business Analysis: Coatings
Core Business Analysis: Coatings Ink Plant in Zhongshan Offset Printing Ink Plant in Tungxiang Inks: Expansion of production facilities in the Zhongshan plant and the Tungxiang plant for offset printing inks is in smooth progress A new production plant next to the Tungxiang plant for post- printing
Slide 24: Core Business Analysis: Lubricants
Core Business Analysis: Lubricants Lubricants business improved and achieved a breakeven Specialty lubricants have returned to growth Automotive lubricants recorded close to 20% growth on the back of aggressive marketing strategies and strong auto sales In particular, anti-freeze sales have recorded
Slide 25: Group R&D Centre in Shanghai
Group R&D Centre in Shanghai Location Shanghai Zhangjiang Hi-Tech Park (located in the middle part of Pudong New Area) Comprising Technical Innovation Zone, Hi-Tech Industry Zone, Scientific Research and Education Zone, and Residential Zone Investment (1st phase) & registered capital USD5 million Co
Slide 26: Group R&D Centre in Shanghai
Group R&D Centre in Shanghai 26
Slide 27: Corporate Social Responsibility
Corporate Social Responsibility 27
Slide 28: Flagship CSR Program
Flagship CSR Program In Aug 2010, the Group inaugurated its second mobile eye surgery centre to Jiangsu Province, following the one donated to Ningxia Hui Autonomous Region in 2008 In May 2010, the Group signed an agreement to donate at least 10 mobile eye surgery centres to different provinces in M
Slide 29: Summary
Summary The pressure of raw material prices on gross margin has shown signs of easing The outlook of the remaining three months of the current financial year and the medium term is positive – improvement in operation profit and gross margin is expected Benefiting from successful efforts in developin
Slide 30: asian
6 asian YIPSCHEMICAL 30
Slide 31: Appendix
6 asian YIPSCHEMICAL Appendix 31
Slide 32: Capacity of Three Businesses
Capacity of Three Businesses Solvents Raw solvents : 500,000 MT Mixed solvents : 70,000MT Coatings Paints : 161,800 MT Inks : 60,000 MT Resins : 20,000 MT Varnishes : 25,000 MT Lubricants Automotive and Industrial lubricants : 50,000 MT 32
Yip's Chemical Holdings — H1 2010 Earnings Presentation on 6ix