1 / 25

2004 Annual Results 15 March 2005

2004 Annual Results 15 March 2005. 2004 Annual Results 15 March 2005. 2004 Annual Results 15 March 2005. Highlights. Highlights. This is the third consecutive year it recorded double-digit growth in both turnover and net profit.

miya
Download Presentation

2004 Annual Results 15 March 2005

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2004 Annual Results 15 March 2005 2004 Annual Results 15 March 2005 2004 Annual Results 15 March 2005

  2. Highlights

  3. Highlights • This is the third consecutive year it recorded double-digit growth in both turnover and net profit. • Dominant position in Vietnam further enhanced; also deeper penetration in the PRC, ASEAN and European markets • Significant sales growth in major products including MSG, lysine and cassava starch-based products • Completed acquisition of Shanghai Vedan Foods’ MSG business; started to bring in revenue • Research and development capability enhanced through establishment of a technology research and development centre

  4. Summary of Final Results Twelve months ended 31 December, USD million 2004 Change 2003 +10.4% +18.6% +10.2% -6% N/A N/A Turnover Gross Profit Net Profit EPS (US cents) Gross profit margin Net profit margin 225.0 64.8 24.3 1.61* 28.8% 10.8% 203.8 54.6 22.1 1.72 26.8% 10.8% * 2003 Weighted average of ordinary shares in issue was 1,264,508,000 while it is 1,514,746,000 in 2004.

  5. Factors Undermined Growth (I) Short Term Influences Undermined Robust Growth: • Temporary suspension of the co-generation power plant, the rise in prices of raw materials, packaging materials and transportation costs affected overall production cost • Some of the plants expansion works delayed due to shortage of building materials • These influences, however, are seen as temporary; the Group is confident in its long term growth and profit margin is expected to improve

  6. Factors Undermined Growth (II) • Production Cost (2H 2004 compared with 2H 2003): Change Raw materials 21%~40%  (such as Molasses, Cassava, etc.) Packing materials 20%~25%  Transportation 10%  Admin. & Sales Expenses 12%  2H 20032H 2004 Gross Profit Margin 28.1% 23.7%

  7. Strong Balance Sheet

  8. Key Financial Figures 31 Dec 2004 31 Dec 2003 2.09 9.0% 11.2% 1.79 14.4% 10.6% Current Ratio (Times) Net Gearing Ratio* (%) ROE Ratio (%) * net debt / equity

  9. Business Review

  10. Market Analysis Revenue Growth Across all Markets Europe 2.4% ASEAN Countries 4.1 Europe 1.5% ASEAN Countries 2.8% Taiwan & others 2.2% Taiwan & others 3.8% PRC 13.1% Vietnam 56.3% PRC 10.6% Vietnam 58.4% Japan 22.9% Japan 21.9% 2004 For the year ended 31 December 2003

  11. +36.4% +61.1% +67.8% +5.7% +6.4% USD Million 126.7 119.0 2003 2004 49.3 46.6 29.5 21.6 9.2 5.3 5.7 3.2 Vietnam Japan PRC ASEAN Market Analysis Revenue Growth Across all Markets Europe For the year ended 31 December

  12. 61.1% to US$9.2 million 6.4% to US$126.7 million Major Market Analysis Vietnam • Growth in sales volume and turnover; driven by higher MSG sales • Higher sales due to effective nationwide promotional activities and deeper market penetration into rural areas Japan • Main boost came from growing lysine sales at higher price ASEAN • Sales growth through aggressive and effective market expansion activities 5.7% to US$49.3 million

  13. 67.8% to US$5.3 million Major Market Analysis PRC • Contribution from Shanghai Vedan; MSG sales grew at an average rate of 28% per month since July • Sales of modified starch enjoyed significant growth • Overall prospects remain promising Europe • MSG and modified starch sales up significantly 36.4% to US$29.5 million

  14. Specialty chemicals 3.0% Others 2.3% Cassava starch based products 6.6% MSG 69.5% Lysine 14.4% G.A. 4.2% Product Analysis Turnover by Products Specialty chemicals 2.7% Others 2.2% Cassava starch based products 6.4% MSG 69.0% Lysine 13.5% G.A. 6.3% 2004 2003 For the year ended 31 December

  15. Turnover by Products USD Million 156.3 140.6 2003 2004 32.5 27.4 13.1 14.7 12.8 9.5 5.5 6.8 Cassava starch based products Specialty Chemicals Lysine MSG G.A. Product Analysis +11.2% +18.6% +12.9% -25.4% +25.2% For the year ended 31 December

  16. 25.4% to US$6.8 million Major Product Analysis • MSG • Rising living standard in Vietnam boosted food processing industry resulting in even stronger eemand • Lysine • Strong demand from PRC drove prices up significantly in the first half • Starch • : Native Starch • : Modified Starch • Strategically reduced sales of native starch to focus on the modified starch market that enjoys a higher margin • Specialty Chemicals • Industrialization and modernization of Vietnam prompted market demand 11.2% to US$156.3 million 18.6% to US$32.5 million 12.9% to US$14.7 million 44.4% to US$4.9 million 132.2% to US$9.8 million

  17. Research and Development Establishment of a Technology R&D Centre • Hired a new R & D director • Equipped with new laboratory and facilities • To enhance technical expertise and boost research and development capabilities • Responsible for the development of new products and new production processes • Initial focus on starch and food related areas • Diversify source of carbohydrates

  18. Prospects For 2005

  19. Enhance cost structure by reducing production and raw material costs • Further expansion into new markets especially in ASEAN countries and PRC • Excellent market potential of new products: r-PGA and high value-added seasonings Major Growth Drivers Growth Drivers • Continual capacity expansion to capture rising market demand

  20. Enhance Cost Structure Cost Reduction Measures: • Expanded GA production facilities: to enhance the scale of production efficiency • To set up 2 more starch raw material processing plants in central and central northern part of Vietnam • Explore an alternative source of carbohydrates • Improve existing processing technology

  21. Capacity Expansion Expansion works, completed in 2004, increases production capacity for 2005: • Expanded GA production facilities: increasing annual production capacity from 140,000 tons to 180,000 tons (Dec. 2004) • Expanded specialty chemicals production facilities: increase annual production capacity of 100% Caustic Soda from 60,000 tons to 80,000 tons (Dec. 2004) • Increased annual production capacity of modified starch from 40,000 tons to 60,000 tons (Mar. 2005)

  22. Versatile flavor enhancers made from MSG and • various natural seasonings • Enjoys strong demand due to diverse tastes of • Asian dishes • Product launch expected in second quarter of • 2005 High Value-added Seasonings New Product Launch • Plant construction delayed due to material storage. Estimated completion is 4th quarter 2005 • Work underway on application for Sales permit • Cooperate with potential sales agent to develop sales and marketing plan • Continue to work with clients and research institutions on various industrial applications r-PGA

  23. New Market Expansion I) PRC: growth by mergers, acquisitions and strategic alliances - Shanghai Vedan as base in the central region and Xiamen Mao Tai plant as base in the south to support future expansion into second and third-tier cities - M & A strategy remained; several targets identified, discussion underway - Strategic alliance with local GA suppliers to secure raw material supplies II) ASEAN: a major growth market with total population over 500 million; comprised of some of Asia’s fastest growing economies - Explore opportunities for M & A and strategic alliances III) Europe: a largely unexplored market with high growth potential

  24. “To be Asia’s leading manufacturer of fermentation-based amino acids, food additive products and cassava starch based products” Mission

  25. 2004 Annual Results 15 March 2005 2004 Annual Results 15 March 2005 2004 Annual Results 15 March 2005

More Related