Global Bio-chem Technology Group Co. Ltd. · HKEX:809
Global Bio-chem Technology — Investor Presentation (January 2009)
26 slides from Global Bio-chem Technology's investor presentation, January 2009
Slide 1: Corporate Presentation
Corporate Presentation January 2009 1
Slide 2: Agenda
Agenda Business Updates 2008 Interim Results & Analysis Appendix 2
Slide 3: Corporate Information
Corporate Information Global player in lysine business Pioneer in using corn as raw materials for the production of polyol chemicals Major vertically-integrated corn-based biochemical and corn-refined products manufacturer in Asia 3
Slide 4: Corn Price Movement in China
Corn Price Movement in China RMB / mt 1,750 1,700 1,650 1,600 1,550 1,500 1,450 1,400 1,350 1,300 1,250 Jul-07 Jul-08 Jan-07 Feb-07 Oct-07 Nov-07 Dec-07 Mar-07 Apr-07 May-07 Jun-07 Aug-07 Sep-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Source: eFeedlink. Based on
Slide 5: Amino Acids – Price Trend
Amino Acids – Price Trend RMB/mt 16,000 14,000 Lysine 12,000 10,000 8,000 6,000 4,000 Protein Lysine 2,000 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2008 Source: eFeedlink 4Q 08 – lysine price ↓ approx 10% Demand remains stable End
Slide 6: Amino Acids – Detail Breakdowns
Amino Acids – Detail Breakdowns 1H 2008 Amino Acids Turnover Breakdown Others 3% Lysine 39% Protein Lysine 58% 1H 08 Quantity (mt) YOY Export YOY change volume (mt) change Lysine 60,150 13% 34,900 1% Protein Lysine 159,750 25% 42,800 36% Others 3,400 (39%) 920 49% 6
Slide 7: Lysine Business Overview
Lysine Business Overview Remain one of the global players position; market shares: Global: ~35% PRC: ~75% 2009 market environment • Sensitive market price • Sustainable volume • Challenging environment to small players Cost & production control Stable income with GP margin of 20+ 7
Slide 8: Corn Based Polyol Chemicals
Corn Based Polyol Chemicals Polyol – a collective name for a group of chemicals Corn Starch Saccharification Glucose ((C6H10O5)n + H2O) Hydrogenation Reaction Sorbitol (C6H14O6) Chemical reaction with catalysts Polyol chemicals mixture Sales & (or product: Resin): Marketing – Ethylene Glycol (C2H6O2
Slide 9: Polyol – Sales & Marketing
Polyol – Sales & Marketing Applications Adhesive Raw Materials Intermediate Materials Plastics Coatings Footwear Films EG Glasses Polymers PG Fiberglass Polymeric Coolant Glycerin polyol Lubrication Solvent Resins Detersive GBT’s products Fibre Polyester Textile 9
Slide 10: Polyol – Business Overview
Polyol – Business Overview Production facilities : • Pilot Plant (for R&D purposes): 10,000 mtpa • Commercial Plant : 200,000 mtpa Readily markets: • Chemicals demand/consumption in PRC: 5 – 6 million mt • Over 70% demand relies on imports • Petroleum-based chemicals vs green products Breakeve
Slide 11: Future Development
Future Development New production base: Xinglongshan Vertically integrated facilities: •Corn refinery: 1.7 million mtpa •Polyol chemicals: 1.0 million mtpa Phase 1: 1 million mtpa Phase 3: 700,000 mtpa Corn Refinery Corn Refinery Phase 2: 500,000 mtpa Phase 4: 500,000 mtpa Polyol Chemicals Polyo
Slide 12: Capex 2008 - 2009
Capex 2008 - 2009 1600 Corn Refinery1400 Corn Refinery & supporting & supporting facilities 1200 facilities Maintenance 1000 HK$ (million) 800 Polyol chemical facilities 600 400 200 0 2008* 2009* 2008 2009 * Original plan in 1Q 08 Latest schedule 12
Slide 13: Designed Capacity
Designed Capacity Designed Capacity (mtpa) FY2008 FY2009 FY2010 Upstream Corn Refinery 2,400,000 3,400,000 3,400,000 Downstream • Amino Acids 450,000 450,000 450,000 • Modified Starch 80,000 80,000 80,000 • Polyol Chemicals 210,000 210,000 210,000 • Corn Sweeteners Global Sweeteners Holdings Limited
Slide 14: 2008 Interim Results & Analysis
2008 Interim Results & Analysis
Slide 15: Turnover Breakdown
Turnover Breakdown 1H 2008 Turnover Breakdown Polyol Turnover 1H 2008 1H 2007 Change Chemicals (HK$‘000) 13% Corn Refinery 32% Upstream Corn • Corn Refinery 1,511,139 753,544 101% Sweeteners 13% Downstream Modified Starch 2% Amino Acids • Amino Acids 1,932,676 1,326,140 46% 40% • Polyol Chemicals 69
Slide 16: Gross Profit Breakdown
Gross Profit Breakdown 1H 2008 Gross Profit Breakdown Corn Refinery Gross Profit 1H 2008 1H 2007 Change 23% (HK$‘000) Polyol Chemicals Upstream 21% • Corn Refinery 288,242 102,798 180% Corn Sweeteners 13% Amino Acids Downstream Modified Starch 42% • Amino Acids 535,905 342,976 56% 1% • Polyol Chemic
Slide 17: Sales Analysis
Sales Analysis Quantity (mt) Gross Profit Margin (%) 1H 08 1H 07 % Change 1H 08 1H 07 % Change Upstream Corn Refinery 650,160 425,540 53% 19% 14% 5% Downstream Amino Acids 223,330 186,350 20% 28% 26% 2% Polyol Chemicals 83,723 985 N/A 39% N/A N/A Modified Starch 30,090 33,890 (11%) 15% 15% - Corn Sw
Slide 18: Export Breakdown
Export Breakdown 1H Export Turnover By Regions Turnover Volume Australia Africa US$’000 mt 3% 0% Amino Acids 98,373 70% 78,600 34% South & North Modified Starch 4,769 3% 12,660 6% America 17% Asia Corn Refined Products 38,249 27% 137,000 60% 44% TOTAL 141,391 228,260 Europe 36% Export to Total Turno
Slide 19: Operating Cost Structure
Operating Cost Structure 1H 08 1H 07 Raw materials (Corn + Sweeteners) 56% 56% Other chemicals 11% 5% Utilities 12% 16% Labour 1% 1% Depreciation 5% 7% Packaging 3% 2% Production Overhead 1% 2% Selling and Distribution Expenses 7% 6% Administrative Expenses 3% 4% Other Operating Expenses 1% 1% 19
Slide 20: Operation Results
Operation Results 2008 1H 2007 1H Change HK$ million Turnover 4,852 2,734 78% Gross Profit 1,266 601 111% • Corn based biochemical products 977 498 96% • Corn refined products 288 103 180% EBITDA 1,111 549 102% Operating Profit 883 381 132% Net Profit to GBT’s shareholders 602 230 162% Basic EPS HK
Slide 21: Operational Indicators
Operational Indicators 30 Jun 08 30 Jun 07 Change Gross Profit Margin (%) 26% 22% 4% • Corn based biochemical products 29% 25% 4% • Corn refined products 19% 14% 5% Operating Margin (%) 18% 14% 4% Net Margin (%) 13% 8% 5% ROE 8% 4% 4% 21
Slide 22: Balance Sheet
Balance Sheet HK$ million 30 Jun 2008 31 Dec 2007 Change (unaudited) (audited) Non-current Assets 9,767 8,732 12% Current Assets 5,557 4,666 19% Current Liabilities 5,093 3,264 56% Cash and Bank Balances 2,439 2,022 21% Shareholder’s Equity 7,311 6,463 13% Interest-bearing Loans 5,583 4,803 16% 22
Slide 23: Key Financial Ratios
Key Financial Ratios 30 Jun 2008 31 Dec 2007 Current Ratio 1.1 1.4 Quick Ratio 0.8 1.1 Gearings: - Total Debt to Total Assets 49% 48% - Net Debt to Equity 43% 43% Inventories Turnover Days 73 87 Debtors’ Turnover Days 52 58 23
Slide 24: Appendix
Appendix
Slide 25: Milestone
Milestone 1994 2000 2001 2002 2004 2005 2008 Protein lysine GBT was Lysine plant Listed on HFCS JV & polyol pilot Sorbitol Scales up founded began Main Board plant began plants began plant began polyol project operation of HKEx operation operations operations 1994 1996 1998 1999 2000 2001 2002 2003
Slide 26: Vertical Integration and Product Diversification
Vertical Integration and Product Diversification Raw Material Corn Kernel Corn Refinery Upstream Process Gluten Corn Starch Fibre Corn Oil Biochemical / Chemical processes Global Downstream Process Sweeteners Holdings Limited Amino Acids Polyol Chemicals Modified Starch Corn Sweeteners 26
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