Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — Xiwang Sugar Holdings Company — H1 2008 Earnings Presentation
25 slides from Xiwang Property's earnings presentation, Aug 26, 2008
Slide 1: Interim Results 2008
HKSE Stock Code: 2088 Interim Results 2008
Slide 2: Agenda
AGENDA | 2008 Interim Results Overview | Business B siness O Outlook tlook & Future F t re Development De elopment Strategies | Company Profile 2
Slide 3: 2008 Interim Results Overview
2008 INTERIM RESULTS OVERVIEW
Slide 4: Highlights
HIGHLIGHTS | Turnover +58% yoy y Strong volume growth and higher price of crystallised glucose and co-products, co products driven by underlying strong demand y About 50% yoy increase in export sales | Gross profit margin -2% pts yoy y Impacted by rising corn cost y Upward adjustment of product pric
Slide 5: Summary Income Statement
SUMMARY INCOME STATEMENT Rmb (in million) 1H2008 1H2007 % Change R Revenue 1 386 1,386 879 +58% Gross profit 264 186 +42% ‐ Gross profit margin (%) 19% 21% (2%) Operating profit 202 170 +18% ‐ Operating profit margin (%) 15% 19% (4%) Profit before tax 227 158 +44% Net profit 219 152 +44% ‐ Net N pro
Slide 6: Summary Balance Sheet
SUMMARY BALANCE SHEET Rmb (in million) As at 30 Jun 2008 As at 31 Dec 2007 % Change C Current t assets t 1 232 1,232 1 271 1,271 (3%) Cash and cash equivalents 308 343 (10%) Inventories 362 330 +10% Trade and other receivables 537 509 +5% PPE 1,271 1,300 (2%) Total assets 2,805 2,779 +1% Current lia
Slide 7: Summary Cash Flow Statement
SUMMARY CASH FLOW STATEMENT Rmb (in million) 1H2008 1H2007 Net cash h inflow/ fl / (outflow) ( fl ) ffrom Operating 209 (18) activities Net cash outflow from Investing activities (107) (228) Net cash outflow from Financing activities (137) (178) Net decrease in cash & cash equivalents (35) (424) Cas
Slide 8: Liquidity & Financial Ratios
LIQUIDITY & FINANCIAL RATIOS As at 30 Jun 2008 As at 31 Dec 2007 Cash and cash equivalents 308 343 Borrowings 960 1,029 Shareholders’ equity Shareholders 1 519 1,519 1 424 1,424 Current ratio 1.8x 2.5x N debts Net d b to equity i 43% 48% 1H2008 FY2007 EBITDA Interest coverage 9.9x 7.8x Average Inven
Slide 9: Sweetener Products and Co-products
Sweetener Products Co p oducts Co-products F&B Marine Products Corn Gluten Meal Crystallised Fructose Animal Feed Crystallised Livestocks Glucose Corn germ Chemicals/ Pharmaceuticals Corn oil Feedstock for Fermentation 9
Slide 10: Operation Review
OPERATION REVIEW Sweetener Products: | Crystallised glucose: Both ASP and volume grew for wider applications and more volume output to fulfill market needs, but GP margin squeezed due to higher corn cost | Crystallised fructose: successful trial production and pre-marketing Co-products: | Strong vol
Slide 11: Turnover by Products
TURNOVER BY PRODUCTS Rmb (in million) 1H2008 1H2007 % Change Turnover 1,386 879 +58% 58% 1H 2008 1H 2007 Other by- Other by- products products Corn Corn starch 14% starch 10% 4% Crystallised 7% Corn germ glucose Corn germ 9% Crystallised 44% 13% Animal glucose feed 54% 9% Corn Animal feed gluten Cry
Slide 12: Sales Volume and Average Selling Price
SALES VOLUME AND AVERAGE SELLING PRICE Sales Volume (tonnes) 1H2008 1H2007 % Change Crystallised glucose 251,912 207,715 +21% Corn gluten meal 34,363 35,480 (3%) Animal feed 159,871 86,910 +84% Corn germ 40,218 31,187 +29% Corn starch 34,423 36,337 (5%) Average Selling Price*(Rmb/tonne) 1H2008 1H200
Slide 13: Gross Profit Margin
GROSS PROFIT MARGIN 1H2008 1H2007 Change Crystallised glucose 19% 26% (7% pts) Corn gluten meal 24% 23% 1% pts Animal feed 27% 23% 4% pts Corn germ 24% 17% 7% pts Corn starch 16% 19% (3% pts) Group’s 19% 21% (2% pts) 13
Slide 14: Cost of Sales Breakdown
COST OF SALES BREAKDOWN 1H 2008 1H 2007 Others, 2% Labour, 2% Others,, 2% Labour Labour, 2% Labour Depreciation Depreciation, 3% 3% Utilities, 9% Utilities, 9% Other Other materials, materials, 12% 9% Corn, 75% Corn, 72% Average corn cost (ex-tax): 1H08: Rmb 1 1,486 486 / tonne tonne, 14 1H07: Rmb 1
Slide 15: Business Outlook and Future Development Strategies
BUSINESS OUTLOOK AND FUTURE DEVELOPMENT STRATEGIES
Slide 16: Price Movement of Corn, Crystallised Glucose and Cane Sugar
PRICE MOVEMENT OF CORN, CRYSTALLISED GLUCOSE AND CANE SUGAR Price (RMB/ tonne) 5,000 4,000 3,000 Cane Sugar Crystallised Glucose 2,000 Corn 1,000 0 Note: 16 1 Cane sugar price refers to the refined sugar price of QingDao quoted from www.gsmn.com.cn 2 Crystallised glucose price, refers to the ASP of
Slide 17: Business Updates
BUSINESS UPDATES | Weak cane sugar price continues in short term because of over-supply, but expected p to recover in 2009 | Corn price reached plateau since March, resulted from the Chinese Government’s Government s firm regulation to control industrial demand demand. Coming harvest expected to be
Slide 18: Future Development Strategies
FUTURE DEVELOPMENT STRATEGIES | Solidify the leadership position in crystallised glucose • Continual improvement of product quality • Provision of comprehensive customer services | Develop further downstream, high-value sweetener and food products • First domestic player of crystallised fructose, th
Slide 19: Company Profile
COMPANY PROFILE
Slide 20: We Are / Our Edges
WE ARE | No. 1 crystallised glucose producer in China with an 800,000-tonne annual production capacity | Capable to process 1 1.5 5 million tonnes of corn per annum to produce various co-products | Mission to offer healthy sweetener and food products OUR EDGES | Operational efficiency generated from
Slide 21: History and Development
HISTORY AND DEVELOPMENT Further expanded crystallised glucose production capacity to 800,000 tonnes Expanded pa • Corn p processing g Expanded capacity to Expanded crystallised glucose 1,500,000 tonnes crystallised glucose production capacity Developed pa production capacity to 250,000 tonnes crysta
Slide 22: Vertically Integrated Production Process
VERTICALLY INTEGRATED PRODUCTION PROCESS Corn Starch processing plant Corn gluten Corn steep Corn germ Corn fibre Corn starch meal liquor Glucose production plant Glucose Crystallised glucose syrup Fructose Fermentation Plant production plant Animal feed Semi-alcohols or Residual Crystallised fructo
Slide 23: Production Yield
PRODUCTION YIELD Corn: 1 million tonnes Corn germ: C Corn gluten C l t meal:l Animal feed products: Corn starch: C h 70,000 tonnes 50,000 tonnes 200,000 tonnes 700,000 tonnes Semi-alcohols or Crystallised glucose: other chemicals 600,000 tonnes (ethanol, acetone, butanol) Approx. 30,000 tonnes Cryst
Slide 24: Shareholding Structure
SHAREHOLDING STRUCTURE Atlantis Investment Management Public Float Management Ltd 62.93% 9.04% 28.03% Xiwang Sugar Holdings Co Ltd (Bermuda) Master Team International Limited (BVI) 100% 100% Xiwang Sugar (Hong Kong) Ltd Winning China Limited Export, Investor Relations Export and Administration 100%
Slide 25: Disclaimer
DISCLAIMER The information provided to you in this presentation does not constitute, or form part of any offer for subscription of, or solicitation of any offer to subscribe for or to sell any securities of Xiwang Sugar Holdings Company Limited (“Xiwang Sugar” or the “Group”) nor shall it form the b
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