San Neng Group Holdings Co., Ltd. · TWSE:6671
San Neng — Q1 2024 Earnings Presentation
68 slides from San Neng's earnings presentation, Apr 2, 2024
Slide 1: 2024 Q1 Earnings Conference
Sanneng Group Holdings Co., Ltd. 2024 Q1 Earnings Conference Based on Taiwan, Deep in Asia, and Go global ! Reporter: CFO Chen, Liu-Yu Apr. 02, 2024
Slide 2: Disclaimer
Disclaimer The information contained in this presentation, including all forward looking information, is subject to change without notice, whether as a result of new information, future events or otherwise, and Sanneng Group Holdings Co., Ltd. (the “Company”) undertakes no obligation to update or re
Slide 3: Agenda
Agenda 1 Company Overview 2 Business Performance 3 Competitive Advantage Analysis 4 Future Prospects 2
Slide 4: Company Overview
1 Company Overview 3
Slide 5: Corporate Culture
Corporate Culture Become the leading brand of professional, service and Vision trustworthy food ware in Asia Promoter of safety, environmental protection, energy Mission saving and carbon reduction of food ware Values Professionalism, integrity, innovation (Business philosophy) Purpose Improve the l
Slide 6: Company Information
Company Information San Neng - KY was established in Apr 2015 • 1982/06 – San Neng Taiwan • Squires Kitchen Jul. 2017 • 2000/08 – San Neng Wuxi • Xin Neng Wuxi Apr. 2019 • 2010/08 – San Neng Japan • San Neng Guangzhou Jan. 2022 • 2015/11 – San Neng Indonesia Chairman : 張瑞榮 (Mr. Jui-Jung Chang) CEO:
Slide 7: Investment Structure
Investment Structure San Neng - KY CAYMAN (6671) 100% East Gain Investment Limited SAMOA 100% 100% 100% 100% 100% San Neng San Neng Hong San Neng Japan San Neng San Neng Industry Taiwan (TW) Kong (HK) (JP) Indonesia (ID) Indonesia (ID) 100% San Neng Wuxi (WX) 55% 52.48% 100% Xin Neng Bakeware Squire
Slide 8: Our Brands
Our Brands B to B market B to C market B to B market B to B/C market Professional Family/ Premium / Beautiful Life / Quality Heartwarming Professional 7
Slide 9: Our Products
Our Products Main products: R&D, manufacturing and sales of various baking and food utensils products Baking Baking Customized Moulds Tools Food Homeware & Others 8
Slide 10: Our Products
Our Products Baking Moulds Baking Trays, Loaf Pan, Cake Mould, Pie Pan, Mousse Rings…. Baking Tools Whisks, Bowls, Knives, Brushes, Cake Stands… 9
Slide 11: Our Products: Home Products
Our Products Home Products 10
Slide 12: Our Patents
Our Patents As of Mar. , 2024 Subsidiary Patent type Got Applying Subtotal 2024/03 2023/03 +/- Model patent 27 1 28 TAIWAN Design patent 3 0 3 39 37 2 Invention patent 5 3 8 Invention patent 11 13 24 Utility model CHINA 108 11 119 151 137 14 patent Appearance 9 0 9 patent Utility model 9 0 9 JAPAN p
Slide 13: R&D achievements and benefits
Annual R&D achievements R&D benefits Long-lasting cold storage, easy to whip cream, and good molding Condensation Whisk Bowl effect. Metal and plastic are directly injection molded and can be directly Unibody Whisk boiled and sterilized without water seepage. Spliced Laser Welding Reduce mold openin
Slide 14: R&D achievements and benefits
Annual R&D achievements R&D benefits Peripheral frame rolling Improve existing production efficiency forming machine applications 2023- Increase items to diversify products and meet the Ceramic coating applications 2024 market and future’s demand Development of Industrial Increasing product sales in
Slide 15: Business Performance
— BERG » Lo uiaS AES Bs @ #e : Professional Manufacturer of Bakery Equipment @ Business Performance 14
Slide 16: 2023&2022 Consolidated Balance Sheets
2023&2022 Consolidated Balance Sheets In thousands of NTD Account Title\ Period 2023.12.31 2022.12.31 +/- +/- Ratio Cash 335,199 297,331 37,868 12.74% Amortized cost financial asset - current 249,363 287,402 (38,039) -13.24% Accounts receivable 237,640 222,766 14,874 6.68% Inventories 291,007 280,88
Slide 17: 2023&2022 Consolidated Income Statement
2023&2022 Consolidated Income Statement In thousands of NTD Account Title \ Period 2023 2022 +/- +/- Ratio Operation Revenue 1,905,839 1,861,962 43,877 2.36% Gross Profit 737,004 675,102 61,902 9.17% Gross Margin 38.67% 36.26% 2.41% 6.65% Operation Expense 516,487 479,965 36,522 7.61% Net Income 220
Slide 18: Historical operating performance
Revenue In thousands of NTD Historical operating performance Net Profit After Tax In thousands of NTD 2,100,000 250,000 2,050,000 220,416 200,000 2,000,000 145,572 150,000 1,950,000 1,900,000 100,000 1,850,000 50,000 1,800,000 1,750,000 - 2018 2019 2020 2021 2022 2023 營業收入(Revenue) 本期淨利 (Net Profit
Slide 19: Historical Financial Performance and Dividend Policy
Historical Financial Performance and Dividend Policy 96.46% 4.00 100% 91.46% 3.66 3.50 86.51% 85.71% 90% 3.50 3.28 81.97% 82.30% 3.11 3.00 3.00 3.00 3.00 80% 3.00 2.89 70% 2.50 2.43 2.50 60% 2.00 2.00 50% 40% 1.50 30% 1.00 20% 0.50 13.33% 10% 11.45% 11.51% 12.27% 10.49% 8.60% - 0% 2018年度 2019年度 2020
Slide 20: Financial Ratios
Financial Ratios Projects 2021 2022 2023 Debt-to-asset ratio (%) 27.32 24.04 22.19 Financial Long-term capital accounts for real Structure estate, plant and equipment ratio (%) 201.30 208.85 220.46 Current ratio (%) Current ratio (%) 234.37 265.06 291.38 Debt-paying Ability Quick ratio (%) 162.26 19
Slide 21: Financial Ratios (Continued)
Financial Ratios (Continued) Projects 2021 2022 2023 Return on assets (%) 9.09 6.52 8.22 Return on shareholders' equity (%) 12.27 8.60 10.49 Ratio of operating profit to paid-in capital (%) 40.98 32.12 36.29 Profitability Ratio of pre-tax profit to paid-in capital (%) 42.05 33.68 42.00 Net profit ra
Slide 22: Six Major Categories
Six Major Categories Analysis of the revenue structure Analysis of the gross profit structure Year Year 2021 2022 2023 2021 2022 2023 Category Category Customized 28.88% 33.29% 29.64% Customized 30.99% 28.21% 32.06% Baking mold 38.35% 36.39% 41.24% Baking mold 39.80% 39.80% 39.88% Baking tools 23.93
Slide 23: Brands
Brands Analysis of the revenue structure Analysis of the gross profit structure Year 2021 2022 2023 Year 2021 2022 2023 Brands Brands SN 91.16% 91.47% 93.18% SN 37.62% 36.48% 38.56% UN 1.77% 2.08% 1.42% UN 35.84% 37.51% 37.10% Agent Agent 7.07% 6.45% 5.40% 31.40% 32.71% 40.98% Brands Brands Total 10
Slide 24: Areas
Areas Analysis of the revenue structure Analysis of the gross profit structure Year Year 2021 2022 2023 2021 2022 2023 Areas Areas China 66.23% 65.60% 69.01% China 38.02% 34.40% 35.98% Taiwan 19.76% 19.39% 16.00% Taiwan 34.85% 37.70% 38.94% Asia 11.79% 12.77% 12.92% Asia 37.18% 43.43% 52.28% Europe,
Slide 25: Competitive Advantage Analysis
3 Competitive Advantage Analysis 24
Slide 26: Competitive Advantage Analysis
Comprehensive and Industrial resource stable integration capability distribution system Competitive Advantage Analysis Customized New product research development and leads the market Development capabilities Provide a complete solution 25
Slide 27: Comprehensive and stable distribution: Taiwan
1. Comprehensive and stable distribution Taiwan's domestic market base Northern Area Ⅱ Middle Area Ⅰ 南二區 42 北一區 76 南一區 39 Middle Area Ⅱ Northern Area Ⅰ 中二區 85 北二區 73 中一區 55 Southern Area Ⅰ Southern Area Ⅱ 370 distributors across Taiwan As of Mar. , 2024 26
Slide 28: China's domestic market base
China‘s domestic market base North China Area Ⅱ 電商84 華東一區 49 華東二區 83 華南二區 125 North China Area Ⅲ 華東三區 79 North China Area Ⅰ West China Area Ⅱ 華西一區 68 East China Area Ⅲ East China Area Ⅰ West China Area Ⅰ 華西二區 21 East China Area Ⅱ 華北一區 66 Fujian 華南一區 156 華北二區 47 South China Area Ⅱ 華北三區78 856 distribu
Slide 29: Industrial resource integration capability
2. Industrial resource integration capability Well-known brands in the baking industry 28
Slide 30: Co-branded with chain store / famous bakers
Co-branded with chain store / famous bakers 29
Slide 31: Industrial alliance co-branding
Industrial alliance co-branding 30
Slide 32: World Bread Champion Chef Strategy Alliance
World Bread Champion Chef Strategy Alliance 31
Slide 33: Customized research and development capabilities
3. Customized research and development capabilities
Slide 34: Slide 34
Slide 35: Slide 35
Slide 36: Starbucks customized products
Starbucks customized products
Slide 37: JBCW Customized-Grilled Fish Plate
JBCW Customized-Grilled Fish Plate
Slide 38: New product development leads the market
4. New product development leads the market Dessert Spoon 58 37
Slide 39: New product development leads the market
4. New product development leads the market Carving knife/paring knife 38
Slide 40: New product development leads the market
4. New product development leads the market Transformers Burger Mould
Slide 41: New product development leads the market
4. New product development leads the market Clould Shape Loaf Pan
Slide 42: Provide complete solutions - diagnostic services
5. Provide complete solutions - diagnostic services Baguette Stacking Problem－ Rimless Baguette No borders, easy to stack, save space; Reduce weight and save costs; Reduce the accumulation of dirt and evil; Easy to clean and better demolding
Slide 43: Labor-intensive product removal problem: Slant baking pan
The labor-intensive problem of product removal － Slant baking pan 42
Slide 44: Future Outlook
— BERG » Lo uiaS AES Bs = @ : Professional Manufacturer of Bakery Equipment 3 J Future Outlook
Slide 45: Future Outlook
Future Outlook 1. R&D aspect - comply with legal regulations/trend of the times 2. Industry aspect - Catering/Outdoor Products 3. Channel aspect - Live broadcast (course) /we media/ operating Agency 4. Product aspect - products and processes are in line with ESG trends 5. Market aspect - expanding t
Slide 46: R&D aspect - future R&D plan
1. R&D aspect-future R&D plan Development of next-generation anti-stick coating technology for surface of food utensils PVD titanium plating process application development Replace sandblasting process development Surface hydrophobic treatment technology of steel plates and aluminum plates Plastic r
Slide 47: Industry Aspect - Catering/Outdoor Products
2. Industry Aspect--Catering/Outdoor Products Catering Market 46
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Slide 50: From the heart, everywhere is home
從心出發 到哪裡都是家 From the heart, everywhere is home.
Slide 51: Products sale in the outdoor market
Products sale in the outdoor market
Slide 52: Products sale in the outdoor market
Products sale in the outdoor market
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Slide 54: Channel aspect - Live broadcast / we media / Operating Agency
3. Channel aspect—Live broadcast (course) /we media/ Operating Agency • Sanneng actively participates in and executes the live broadcast (such as Tmall and Tiktok etc.) and we media (such as wechat, Tiktok Xiaohongshu etc.) through SK Company. • Currently, we also develop and provide live broadcast
Slide 55: Channel aspect - Live broadcast / we media / Operating Agency
3. Channel aspect—Live broadcast (course) /we media/ Operating Agency 54
Slide 56: Channel aspect - Live broadcast / we media / Operating Agency
3. Channel aspect—Live broadcast (course) /we media/ Operating Agency
Slide 57: Operating Agency by SK Company
Operating Agency by SK Company Increase operating income and the added value of fans 56
Slide 58: Product aspect - in line with ESG trends
4. Product aspect—products and processes are in line with ESG trends 57
Slide 59: San Neng Wuxi Solar PV installation
4. Product aspect—products and processes are in line with ESG trends San Neng Wuxi- Solar PV installation
Slide 60: Product aspect - ESG trends: flocked fiber products
4. Product aspect—products and processes are in line with ESG trends flocked fiber products wood fiber powder Oyster shell powder coffee grounds Annual plastic use of 222 metric tons of plastic produces approximately 600 tons of carbon dioxide 59
Slide 61: Product aspect - in line with ESG trends
4. Product aspect—products and processes are in line with ESG trends 60
Slide 62: Energy-saving products - low sugar toast mold
4. Product aspect—products and processes are in line with ESG trends Energy-saving products-low sugar toast mold
Slide 63: Non-stick treatment process
4. Product aspect—products and processes are in line with ESG trends Non-stick treatment process Environmental protection Recoating Process Coating Backside New Frontside Backside Removal Cleaning Coating 62
Slide 64: Chinese Grill Fish Pan, Korean BBQ grid
SANNENG Professional in Bakeware Chinese Grill Fish Pan Korean BBQ grid 63
Slide 65: Market aspect - expanding the Southeast Asian market
5. Market aspect – expanding the Southeast Asian market Korea Based on Taiwan, deep in Asia, and China Japan go global! Asia Layout Thailand Philippines Westward：Strengthen industrial resource cooperation and jointly serve major customers Malaysia Southward：Gradually expand ASEAN market based on San
Slide 66: Southeast Asian market: Indonesia factory location
5. Market aspect – expanding the Southeast Asian market Location： Rent an existing factory in Solo, Jawa Tengah, Indonesia. Factory area is approximately 1,800㎡=545square meters.
Slide 67: ABs
ABs RmBARSEKR RABI RE AO HES
Slide 68: Thank You
Thank You 67
Sanneng Group Holdings — Q1 2024 Earnings Presentation on 6ix