LUZHOU BIO-CHEM TECHNOLOGY LIMITED

Transcription

1 LUZHOU BIO-CHEM TECHNOLOGY LIMITED FY14 Results Notes February 27, 2015

2 Content Financial Overview Business Outlook Growth Strategies Company Profile 2

3 3 Financial Overview

4 Financial Highlights Group Revenue decreased by 31.1% y-o-y Corn refining Sales volume 26.9%; weighted average selling price 2.3% Animal feeds Sales volume 41.4%; weighted average selling price 3.1% Gross profit margin of 4.5%, 30.8% lower y-o-y; Corn refining: 5.0%, 31.5% lower y-o-y; Animal feeds: 0.1%, 95.0% lower y-o-y; Others : 2.5%, 133.3% higher y-o-y; Net Loss Margin of (16.4%) 331.6% higher y-o-y Cash and cash equivalents of RMB54.6 million as at 31 December, 2014 (RMB66.7 million as at 31 December, 2013) 4

5 Income Statement Highlights RMB mil 4QFY14 y-o-y Chg (%) q-o-q Chg (%) FY14 y-o-y Chg (%) Revenue (25.2) 4.8 2,074.9 (31.1) Gross Profit 18.9 (45.6) (8.7) 93.1 (52.4) (Loss) Before Tax (72.2) (339.8) Net (Loss) (72.2) (339.8) Gross Profit Margin 4.1% (26.8) (12.8) 4.5% (30.8) Net (Loss) Margin (15.6%) (16.4%) Q:Three months ended December 31 FY: Year ended December 31 5

6 Revenue RMB mil 1Q Revenue 2Q Revenue 3Q Revenue 4Q Revenue 2,201 2,594 2,369 3,049 3,906 3,400 3,009 2,075 1,467 1,071 FY: Year ended December 31 1Q: Three months ended March 31 2Q:Three months ended June 30 3Q:Three months ended September 30 4Q:Three months ended December 31 6

7 Revenue by Product Categories FY14 FY13 Total Revenue: RMB2,074.9 mil Total Revenue: RMB3,009.4 mil FY: Year ended December 31 7

8 Revenue by Industries FY13 FY14 Total Revenue: RMB3,009.4 mil Total Revenue: RMB2,074.9 mil FY: Year ended December 31 8

9 Balance Sheet Highlights RMB mil As at end FY14 As at end FY13 Chg (%) Current Assets (18.5) - Cash & Cash Equivalents (18.1) - Inventories (12.6) - Trade and Other Receivables (24.8) Fixed Assets (23.7) Total Assets 1, ,571.4 (21.0) Current Liabilities (0.4) - Trade and Other Payables (1.4) - Short Term Borrowings Long Term Borrowings Total Liabilities 1, , Net Assets (82.5)

10 Balance Sheet Highlights RMB mil As at end FY14 As at end FY13 Chg (%) Inventory Turnover Days Receivables Turnover Days Payables Turnover Days Debt to Equity Ratio # Price to Book Value* # Total interest bearing loans / Total equity * Based on share price of RMB 0.11as at January 29, 2015 FY: Year ended December 31 10

11 Cash Flow Statement Highlights RMB mil FY14 FY13 Chg (%) Net Cash Generated from / (Used in) Operating Activities 45.4 (33.7) Net Cash (Used in) Investing Activities (23.7) (17.3) 37.0 Net Cash (used in) Financing Activities (37.4) (2.3) 1,526.1 Net (Decrease) in Cash & Bank Balances (15.6) (53.3) (70.7) Cash & Bank Balances at Beginning of Period (44.6) Cash & Bank Balances at End of Period (23.6) FY: Year ended December 31 11

12 Business Outlook 12

13 Price Trends RMB/tonnes (excluding taxes) 3,200 3,000 2,800 2,650 2,600 2,587 2,400 2,200 2,175 2,000 1,800 1,641 1,600 1,400 Corn Sweetener Corn Starch By-Products Corn 1,200 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Source: Company 13 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

14 Price Comparisons to Cane Sugar RMB/tonnes 5,700 5,200 4,700 4,626 4,200 3,700 3,200 2,990 2,700 2,611 2,500 2,200 1,700 High Maltose Syrup Dextrose Fructose Cane Sugar 1,200 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Source: Company 14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

15 Growth Strategies 15

16 Growth Strategies Increase capacity utilisation rates Expand market reach Enhance profit levels from modified existing production lines 16

17 Our Capacity & Utilization Rates Corn Sweeteners 4QFY14 Facility / Location Region Served Yishui, Shandong 4QFY13 Production Capacity / (Output) (tonnes) Utilisation Rate Production Capacity / (Output) (tonnes) Utilisation Rate Shandong, Hebei, Anhui, Guangdong, Zhejiang 110,000 (53,633) 48.8% 110,000 (74,489) 67.7% Pengshan, Sichuan South-western region of PRC 35,000 (15,011) 42.9% 35,000 (20,097) 57.4% Fushun, Liaoning Northeast of PRC 40,000 (10,699) 26.8% 40,000 (17,864) 44.7% Xingping, Shaanxi Shaanxi, Shanxi, Gansu, Chongqing, Sichuan, Inner Mongolia 40,000 (30,754) 76.9% 40,000 (30,463) 76.2% Xiping, Henan Henan, Hubei, Hunan, Anhui, Jiangxi 35,000 (27,900) 79.7% 35,000 (28,350) 81.0% 260,000 tonnes 53.1% 260,000 tonnes 65.9% Total Capacity 17

18 Our Capacity & Utilisation Rates Corn Sweeteners FY14 Facility / Location Region Served Yishui, Shandong FY13 Production Capacity / (Output) (tonnes) Utilisation Rate Production Capacity / (Output) (tonnes) Utilisation Rate Shandong, Hebei, Anhui, Guangdong, Zhejiang 440,000 (201,943) 45.9% 440,000 (319,701) 72.7% Pengshan, Sichuan South-western region of PRC 140,000 (74,295) 53.1% 140,000 (102,178) 73.0% Fushun, Liaoning Northeast of PRC 160,000 (53,400) 33.4% 160,000 (65,445) 40.9% Xingping, Shaanxi Shaanxi, Shanxi, Gansu, Chongqing, Sichuan, Inner Mongolia 160,000 (126,700) 79.2% 160,000 (141,314) 88.3% Xiping, Henan Henan, Hubei, Hunan, Anhui, Jiangxi 140,000 (96,537) 69.0% 140,000 (124,526) 89.0% 1,040,000 tonnes 53.2% 1,040,000 tonnes 72.4% Total Capacity 18

19 Expand Market Reach Improve domestic and overseas marketing efforts and enhance sales Re-strategise local and overseas marketing efforts Reaching out to new customers Focusing on high margin products 19

20 Company Profile 20

21 Who We Are Market leader in maltose-related products More than 20 years of growth Capacity to produce 1,040,000 tonnes of corn sweeteners per year OUR COMPETITIVE EDGE Long-serving core management team Production facilities located at the corn producing belt of China Ensuring ample and competitively priced raw materials Quality products and strong branding Enhanced production efficiency: Own power generating capabilities and water resources Economies of scale through higher capacities and utilisation of plant facilities 21

22 Company Milestones Listing on SGX-ST Mainboard Commenced production of sugar alcohol (Shandong), Expansion of production capacity of dextrose powder (Liaoning), high maltose syrup (Liaoning & Shaanxi) & high fructose syrup (Henan & Shaanxi) Established Shaanxi Luzhou to expand reach to Northwestern PRC Upstream diversification to produce liquid glucose Established to produce hard and soft candies Established Liaoning Luzhou to expand reach to Northeastern PRC Completion of thermoelectricity generator in Shandong Luzhou Set up R&D centre in Shandong Commenced production of animal feeds and corn oil in Shandong Expansion of production capacity of sugar alcohol in Shandong Completion of thermoelectricity generators in Liaoning & Shaanxi Commenced operations in new production facilities in Shandong & Sichuan Relocated our Liaoning plant to new premises and completed the construction of new plant. Completion of Acquisition of the entire non-controlling interest in our two joint venture subsidiaries Production of amino acids commenced in 2QFY09 Established a new wholly-owned subsidiary Luzhou Bio-chem Technology (Henan) Co. Ltd. Production of HFCS 55 commenced in 4QFY

23 Production Process Corn Starch Corn Corn Corn Corn germ gluten fibre Corn Sweeteners Corn Liquid steep corn meal Corn Animal Steep oil feeds water Maltose Sweeteners -Maltodextrin -High Maltose Syrup -Isomaltooligo Saccharide -Maltitol Amino Acids Glucose Sweeteners -Liquid glucose -Dextrose powder -High fructose syrup -Sorbitol 23

24 Location Advantage PRC Port of Yingkou Port of Dalian Port of Qingdao Location of Luzhou factories: Port of Rizhao Shandong Liaoning Shaanxi Henan Sichuan Production facilities in Liaoning and Shandong gain easy access to nearby ports for exports 24

25 Corporate Structure Luzhou Bio-chem Technology Limited 100% 100% Luzhou Bio-chem Technology (Shaanxi) Co. Ltd. 100% Luzhou Bio-chem Technology (Shandong) Co. Ltd. Luzhou Bio-chem Technology (Sichuan) Co. Ltd. 100% Luzhou Bio-chem Technology (Liaoning) Co. Ltd. Shandong Luzhou Amino Acid Co. Ltd. *100% Animal Feed Yishui Branch Office Branch Office 100% Luzhou Bio-chem Technology (Henan) Co. Ltd. Shandong Hongzhou Chemical Equipment Co. Ltd. * The paid up share capital of Luzhou Bio-chem Technology (Sichuan) Co. Ltd, is RMB96.0m, of which the Company holds 37.2% (RMB35.7m) and Luzhou Bio-chem Technology (Shandong) Co., Ltd holds 62.8% (RMB60.3m). 25

26 LUZHOU BIO-CHEM TECHNOLOGY LIMITED Thank You