Xiwang Property Holdings Co., Ltd. · HKEX:2088
Xiwang Property — Xiwang Sugar Holdings Company — H1 2010 Earnings Presentation
30 slides from Xiwang Property's earnings presentation, Aug 16, 2010
Slide 1: Xiwang Sugar Holdings Company Limited
Oo Xiwang Sugar Holdings Company Limited (Hong Kong Stock Code : 2088) _ Al 1a i} } ra a aauuut
Slide 2: Contents
Contents • 2010 Interim Results Highlights • Financial Review • Outlook and Development • Appendices: Company Background and Five-year Financial Summary 2
Slide 3: 2010 Interim Results Highlights
2010 Interim Results Highlights • We recorded substantial growth in revenue and profits, and significant improvement of p profit margins g for the first half of 2010 • It was attributable to the solid rebound of the Group’s business from the low base in the first half of 2009 that was caused byy the
Slide 4: Summary Income Statement
Summary Income Statement 1H 2010 1H 2009 Increase RMB million Revenue 1,485 1,031 44.0% Gross profit 236 75 2 times* Operating profit 156 20 7 times* Profit before tax 105 1 91 times* Net profit 100 1 86 times* times RMB per share Basic EPS 0.1045 0.0016 64 times Proposed interim dividend - - - % Gr
Slide 5: Summary Balance Sheet and Financial Ratios
Summary Balance Sheet and Financial Ratios RMB million 30 June 2010 31 Dec 2009 Cash and cash equivalents 338 778 Total current assets 2,101 2,184 Total non-current assets 1,936 1,826 T t l assets Total t 4 037 4,037 4 010 4,010 Short-term borrowings 1,238 1,939 Total current liabilities 1,782 2,347
Slide 6: Revenue by Products
Revenue by Products 1H 2010 1H 2009 Corn gluten Corn gluten meal meal 8% 10% Corn gluten feed Corn gluten 7% feed 9% Corn germ 9% Crystalline Corn germ C glucose 10% Crystalline 42% glucose Corn starch 49% 8% Sodium gluconate 10% Corn starch Others 17% 1% Fructose- Crystalline glucose Fructose- fruc
Slide 7: Revenue by Regions
Revenue by Regions 1H 2010 1H 2009 China China 89% 89% Overseas Overseas 11% 11% 7
Slide 8: Key Products Performances
Key Products Performances • Crystalline glucose – Favoured from strong demand and tight supply, gross profit margin improved • Crystalline fructose and fructose-glucose syrup – While it took time for the market to be more aware of the new product crystalline fructose, our fructose plant currently pr
Slide 9: Sales Volume
Sales Volume 1H 2010 1H 2009 Increase/ (Decrease) Tonne Starch sugars: Crystalline glucose 238,777 198,959 20.0% Crystalline fructose 1,143 57 1,905.3% Fructose-glucose syrup 50,858 14,491 251.0% Corn co-products and others: Corn gluten meal 25,918 26,105 (0.7%) Corn gluten feed 87,146 96,415 (9.6%)
Slide 10: Average Selling Price
Average Selling Price 1H 2010 1H 2009 Increase/ (Decrease) RMB per tonne (VAT-inclusive) Starch sugars: Crystalline glucose 3,532 2,537 39.3% Crystalline fructose 7,806 12,640 (38.2%) Fructose-glucose syrup 2,252 2,087 7.9% Corn co-products and others: Corn gluten meal 5,114 4,623 10.6% Corn gluten
Slide 11: Cost of Goods Sold
Cost of Goods Sold 1H 2010 1H 2009 Other raw Other raw materials materials 5% 6% Utilities Utilities 12% 12% Depreciation Depreciation Corn 3% Corn 3% 76% Labour 75% Labour 2% 2% Others Others 2% 2% 1H 2010 1H 2009 YOY change Average corn procurement cost: RMB 1,900 per tonne RMB 1,520 per tonne +25
Slide 12: Gross Profit Margin
Gross Profit Margin 1H 2010 1H 2009 Increase/ (Decrease) Starch sugars: Crystalline glucose 22.9% 9.2% 13.7% pts Crystalline fructose 34.3% 2.9% 31.4% pts Fructose-glucose syrup 8.8% 15.3% (6.5% pts) p Corn co-products and others: Corn gluten meal 3.6% 1.4% 2.2% pts Corn gluten feed 12.1% 6.9% 5.2%
Slide 13: Outlook and Development
Outlook and Development 13
Slide 14: Crystalline Glucose Supply and Demand in China
Crystalline Glucose Supply and Demand in China Major events: Tight-supply Over-supply Tight-supply • We capture 1/3 market share in China Tonne 1,600,000 • Chinese government adopted policy in Sept 2007 1,400,000 to restrict aggressive expansion 1,200,000 • Smaller players left the industry as a res
Slide 15: Price trend of corn, crystalline glucose and cane sugar in China
Price trend of corn, crystalline glucose and cane sugar in China RMB/ tonne 5,500 Cane sugar g 5 000 5,000 4,500 4,000 3,500 Crystalline glucose 3,000 price becomes more sensitive to 2,500 corn price since Crystalline glucose tight supply 2,000 1,500 1,000 Corn 500 - 01/2006 04/2006 07/2006 10/2006
Slide 16: Crystalline Fructose
Crystalline Fructose • Consumer pack was launched in May 2010 • Commenced marketing campaigns at Beijing, Hangzhou, Ningbo, Shaoxing to explore the high sugar consumption cities • A an iingredient As di t off b baby b ffood d products d t and d di diabetic b ti sweeteners t • GI19# & low calories –
Slide 17: Prospects
Prospects Per capita sugar consumption (starch sugar + cane sugar) Australia 54 kg America 34 kg World AVERAGE 23 kg China 10 kg … to reach 15kg in 2015 China’s current consumption is 14 million tonnes, forecasted to reach 21 million tonnes by 2015, suggesting the supply should increase by at least
Slide 18: Our Ambition
Our Ambition Our mission is to continue to be the market leader of functional starch sugars in China ► China China’s s per capita sugar consumption is still far below developed countries and world average ► Population to reach 1.4 billion and half will be living in urban areas by 2015 ► Higher aware
Slide 19: Product Development
Product Development ♠ Our products are important ingredients for many food products and pharmaceuticals ♠ Forecasted growth rates of F&B and pharmaceutical industries in China are 15% p.a. or above ♠ Crystalline fructose as B2C product, to enhance the overall gross profit margin in the long-run Succ
Slide 20: International and Domestic Prices
International and Domestic Prices PRC white sugar price (RMB/ tonne) PRC corn price (RMB/ tonne) USA, New York raw sugar price (USD/ pound) USA, Chicago corn price (USD/ bushel) 20
Slide 21: Questions and Answers
Questions and Answers For further information or IR requests, please contact our IR team at ir@xiwang ir@xiwang-sugar sugar.com.hk com hk or visit our company website at www.xiwang-sugar.com THANK YOU! 21
Slide 22: Appendix 1 – Company Background
Appendix 1 – Company Background 22
Slide 23: Overview of Corn Processing Industry
Overview of Corn Processing Industry Basic Refinery - Separation of corn to obtain the major components Starch Starch Gluten Fiber Germ Deep Processing - Technological processing of starch to become higher values products Starch Sugars Sugar Alcohols (Polyol) Bio-products/ Fermentation Products Ferm
Slide 24: Background
Background • We are a leading provider of functional starch sugars in China No. 1 in crystalline glucose No. 1 in crystalline y fructose No. 1 in sodium gluconate • Our products are important ingredients to a variety of industries: Food & Beverages, g , Pharmaceuticals,, Fermentation,, Chemicals,, A
Slide 25: Our Circular Economy and Production Capacity
Our Circular Economy and Production Capacity Starch Plant Process max. 1.5 million tonnes of corn to obtain : ． Corn gluten meal ． Corn gluten feed ． Corn germ ． Corn starch Corn S C Storage C Capacity max. 500,000 tonnes Used water is recycled Glucose Plant 800,000 tonnes Sewage Treatment Facility
Slide 26: Our Products
Our Products Products Functions Nature of Customers Starch sugars: • Crystalline C t lli glucose l U i Unique sweett perception ti F d and Food d beverages b producers d High fermentation ability Fermentation and chemical products manufacturers Immediate energy source Hospitals and pharmaceuticals p
Slide 27: Appendix 2 – Five-year Financial Summary
Appendix 2 – Five-year Financial Summary 27
Slide 28: 5-year Financial Summary
5-year Financial Summary RMB million 2005 2006 2007 2008 2009 Operating performance Revenue 1,038 1,385 2,062 2,544 2,481 Gross profit 261 365 464 220 317 EBITDA 255 357 521 216 269 Operating profit 228 312 406 50 172 Net profit 210 290 361 64 102 Basic earning per share (RMB) 0.365 0.356 0.435 0.07
Slide 29: Key Product Performances
Key Product Performances 2007 2008 2009 ASP (VAT-inclusive, (VAT inclusive RMB/ tonne) • Crystalline glucose 2,698 2,740 2,775 • Crystalline fructose - 10,544 8,543 • Fructose-glucose syrup - 1,928 2,053 • Corn gluten meal 3 889 3,889 5 054 5,054 4 792 4,792 • Corn gluten feed 910 1,178 1,059 • Corn
Slide 30: Forward-looking Statement and Disclaimer
Forward-looking Statement and Disclaimer The information provided to you in this presentation contains forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These statements relate to events that involve known and unknown risks, uncertainties and other
Xiwang Sugar Holdings Company — H1 2010 Earnings Presentation on 6ix