Global Corn Group Limited · HKEX:3889
Global Corn — Global Sweeteners Holdings — FY2020 Earnings Presentation
29 slides from Global Corn's earnings presentation, Mar 31, 2021
Slide 1: Annual Results
ae* Hk oi SEE A ORAS 2 GLOBAL Sweeteners Holdings Limited GLOBAL _ (incorporated in the Cayman Islands with limited liability) Sweeteners Stock Code: 03889 ANNUAL RESULTS 31 March 2021 * For identification purpose only
Slide 2: Results Highlights
RESULTS HIGHLIGHTS ➢ Suspension of most of the Group’s production facilities during the Year → sales volume ↓ leading to revenue and GP ↓ 60.7% and 62.5% respectively. ➢ One-off gain of HK$289.4 million from Dihao Resumption → EBITDA of HK$201.4 million and net loss narrowed to HK$8.7 million. HK$ m
Slide 3: 2020 Annual Results: Financial Overview
2020 ANNUAL RESULTS Financial Overview 3
Slide 4: Operating Results
OPERATING RESULTS HK$ million 2020 2019 % Change Revenue 769.0 1,956.8 (60.7) • Upstream Products 211.0 1,038.4 (79.7) • Corn Sweeteners 558.0 918.4 (39.2) Gross Profit 77.9 207.6 (62.5) • Upstream Products 22.9 101.7 (77.5) • Corn Sweeteners 55.0 105.9 (48.1) Gross Profit Margin (%) 10.1 10.6 (0.5)
Slide 5: Financial Position
FINANCIAL POSITION HK$ million 31 Dec 20 31 Dec 19 % Change Non-current Assets 692.7 939.4 (26.3) Current Assets 611.8 459.6 33.1 Current Liabilities 1,496.9 1,570.9 (4.7) Cash and Cash Equivalents 21.3 30.8 (30.8) Total Deficit (424.9) (411.4) N/A Interest-bearing Bank and Other Borrowings 995.6 96
Slide 6: Bank Borrowings Analysis
BANK BORROWINGS ANALYSIS HK$ million 31 Dec 20 31 Dec 19 % Change Short Term Borrowings 811.0 762.5 6.4 Long Term Borrowings 184.6 200.0 (7.7) Total 995.6 962.5 3.4 HK$ million 1500 1000 200.0 184.6 500 762.5 811.0 0 As at 31 December 2019 As at 31 December 2020 Short Term Borrowings Long Term Borro
Slide 7: Key Financial Ratios
KEY FINANCIAL RATIOS 31 Dec 20 31 Dec 19 Current Ratio 0.4 0.3 Quick Ratio 0.4 0.2 Gearing Ratio* 174.4 % 174.7 % Inventories Turnover Days 33 Days 40 Days Trade Receivables Turnover Days 46 Days 36 Days Trade Payables Turnover Days** 134 Days 82 Days * Gearing ratio is calculated by debt (i.e. tota
Slide 8: 2020 Annual Results: Operation Overview
2020 ANNUAL RESULTS Operation Overview 8
Slide 9: Revenue Breakdown
REVENUE BREAKDOWN 2020 Revenue Breakdown Revenue % Glucose Maltose 7% (HK$ million) 2020 2019 Change 14% Corn Refined Products Upstream* 27% HFCS 38% Corn Refined Products 211.0 1,038.4 (79.7) Maltodextrin 14% Downstream** Glucose Syrup 55.3 110.2 (49.8) Maltose Syrup 103.9 191.2 (45.7) 2019 Revenue
Slide 10: Gross Profit Breakdown
GROSS PROFIT BREAKDOWN 2020 Gross Profit Breakdown Gross Profit % Glucose (HK$ million) 2020 2019 Change 7% Maltose Corn Refined 13% Products Upstream* 29% HFCS Maltodextrin 41% Corn Refined Products 22.9 101.7 (77.5) 10% Downstream** Glucose Syrup 5.7 15.5 (63.2) Maltose Syrup 9.7 17.3 (43.9) 2019
Slide 11: Sales Analysis
SALES ANALYSIS Sales Volume (’000 MT) Gross Profit Margin (%) % % pt 2020 2019 Change 2020 2019 Change Upstream Corn Refined Products 87 423 (79.4) *10.9 9.8 1.1 Downstream Corn Syrup 136 186 (26.9) 10.4 11.7 (1.3) Corn Syrup Solid 38 113 (66.4) 7.6 11.3 (3.7) Sweeteners Sub-total 174 299 (41.8) 9.9
Slide 12: Export Breakdown
EXPORT BREAKDOWN 2020 2019 % Change Export Sales Revenue (HK$ Million) 26.9 145.6 (81.5) Exports Sales Volume (’000 MT) 10.7 56.0 (80.9) Export Contribution (%) 3.5 7.4 (3.9) % pt Export Sales by Region 2020 Export Sales by Product 2020 Sweeterners Russia 40% 2% Japan 60% Malaysia 31% Upstream Produ
Slide 13: CCT – Sales to & Purchase from GBT
CCT – SAELS TO & PURCHASE FROM GBT 100% During the Year, the Group’s purchase 80% from the GBT Group decreased as a result of the suspension of certain 2019 production operations. 60% 2020 40% 10% 20% 0% 0% 1% 0% Sales to GBT (% to Revenue) Purchase from GBT (% to COGS) 13
Slide 14: Operating Cost Structure
OPERATING COST STRUCTURE 2020 2019 Raw Material (Corn / Corn Starch) 57.5 % 63.4 % Utilities (Water, Electricity, Steam & Wastewater Treatment) 3.3 % 8.3 % Wages and Salaries 8.9 % 5.9 % Depreciation 8.4 % 3.9 % Production Overhead (Consumable and Packaging) 7.7 % 9.8 % Selling, Administrative and O
Slide 15: Business Outlook & Development Plans
BUSINESS OUTLOOK & DEVELOPMENT PLANS 15
Slide 16: Upstream Raw Material – Corn
UPSTREAM RAW MATERIAL – CORN RMB/MT Corn Price Movement in China (Jan 07 – Mar 21) 3,100 2,900 2,700 2,500 2,300 2,100 1,900 1,700 1,500 1,300 1,100 Source: Feedtrade.com - Based on average price from Northern China (Jilin, Liaoning and Shandong) 2020/21 corn harvest in China: approx. 264.7 million
Slide 17: Downstream Substitute – Sugar
DOWNSTREAM SUBSTITUTE -- SUGAR RMB/MT Sugar Price Movement in China (Jan 01 – Mar 21) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Source: www.msweet.com.cn 2019/20 PRC sugar production: approx. 10.7 million MT (source: USDA) Huge difference between PRC and international sugar prices cont
Slide 18: Corporate Strategies
CORPORATE STRATEGIES 1) Active negotiations with banks and creditors for the debt restructuring plan of the Group to improve its financial position ➢ Subsequent to the transfer of the BOC Transferred Loans (which included the Dajincang Indebtedness) from BOC Jilin Branch to 中國信達資產管理股份有限公司吉林省分公司 (Jil
Slide 19: Corporate Strategies (Con't)
CORPORATE STRATEGIES (CON’T) 2) Resumption of the Relevant Properties As disclosed previously, in 2018, the Relevant Properties have been confirmed as part of the subject properties for redevelopment under the PRC’s Slum Redevelopment Policy which could shorten procedures and exempt certain taxes. O
Slide 20: Corporate Strategies (Con't)
CORPORATE STRATEGIES (CON’T) 3) Relocation opportunities ➢ facilities upgrade ➢ further cost reduction through streamlining and improving production flow ➢ product mix and production capacity re-structure targeting high-end users In respect of the relocation projects, in view of changes in the opera
Slide 21: Corporate Strategies (Con't)
CORPORATE STRATEGIES (CON’T) 4) GSH’s value chain Strengthen services and Stringent control on corn inventory → customer relationship improve operation flexibility and cash flow management Sales & Purchase Operations Services Marketing Product Provide post-sale services Development such as consultin
Slide 22: Capacity Overview
CAPACITY OVERVIEW Designed Capacity (mtpa) 2021 2020 Upstream Corn Starch 560,000 560,000 Other Corn Refined Products 240,000 240,000 Upstream Sub-total 800,000 800,000 Downstream Glucose / Maltose Syrup 360,000 360,000 HFCS 220,000 220,000 Maltodextrin 30,000 30,000 Crystallised Glucose - - Downstr
Slide 23: Company Profile
COMPANY PROFILE 23
Slide 24: Corporate Milestones
CORPORATE MILESTONES Global Sweeteners (stock code: The listing of TDR of Global Hao Cheng was established Change in shareholding structure 03889.HK) was listed on the Main Sweeteners (stock code: in Shanghai with a designed Discontinued of GBT’s controlling shareholder; Board of the Stock Exchange
Slide 25: Corporate Structure
CORPORATE STRUCTURE Public 64% 36% 100% 100% 100% 100% 100% 100% Glucose/ Corn HFCS 42 Refinery Maltose (120,000 mtpa) (60,000 mtpa) (800,000 mtpa) Glucose/ Glucose/ Maltodextrin Maltose/ Maltose (30,000 mtpa) HFCS 55 (220,000 mtpa) (200,000 mtpa) Xinglongshan Shanghai Jinzhou 25
Slide 26: Diversified Product Mix
DIVERSIFIED PRODUCT MIX Corn Refinery UPSTREAM Gluten Fibre Corn Starch Corn Oil Corn Sweeteners DOWNSTREAM Corn Syrup Corn Syrup Solid Glucose & Maltose Syrup HFCS Crystallised Glucose Maltodextrin * Sweetness level: 40% * Sweetness level: 80-110% * Sweetness level: 70% * Sweetness level: 20% • Foo
Slide 27: Appendix
APPENDIX 27
Slide 28: PRC Sugar & Sweeteners Production
PRC SUGAR & SWEETENERS PRODUCTION Natural Sweeteners Sugar Starch Sweeteners Raw Material: Raw Material: Cane, Beet Corn, Potatoes, Tapioca Regions: Regions: • Cane: Southern parts of China (e.g. Guangxi) Corn is produced mainly in Northern China: Jilin, Shandong & • Beet: Northern parts of China He
Slide 29: Thank You
ae* Hk oi SEE A ORAS 2 GLOBAL Sweeteners Holdings Limited GLOBAL _ (incorporated in the Cayman Islands with limited liability) Sweeteners Stock Code: 03889 THANK YOU -- The End -- * For identification purpose only
Global Sweeteners Holdings — FY2020 Earnings Presentation on 6ix