dukang distillers holdings limited fy2015 (jul 14 jun 15) … · 535.6 413.7 146.9 0.3 169.1 105.4...
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![Page 1: DUKANG DISTILLERS HOLDINGS LIMITED FY2015 (Jul 14 Jun 15) … · 535.6 413.7 146.9 0.3 169.1 105.4 28.7 635.8 994.1 957.0 663.0 486.1 893.0 318.3 200.1 0 500 1,000 1,500 2,000 2,500](https://reader035.vdocuments.net/reader035/viewer/2022070213/610a0e519640e7488a73b879/html5/thumbnails/1.jpg)
FY2015 (Jul 14 – Jun 15) Results Presentation
DUKANG DISTILLERS HOLDINGS LIMITED
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CORPORATE PROFILE
FINANCIAL HIGHLIGHTS
GROWTH STRATEGIES
INVESTMENT MERITS
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Corporate profile
B
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Brand origin of Dukang
4
Famous baijiu with a history dating back > 2,000 years
Named after Du Kang (杜康) who lived in the Xia Dynasty (21st – 16th century B.C.)
• Forefather of baijiu in China
Frequently cited by numerous famous poets & personalities
• Cao Cao (曹操) (a central figure in the Three Kingdom Period) said in his poem《短歌行》
“对酒当歌,人生几何, 譬如朝露,去日苦多。
慨当以慷,忧思难忘,何以解忧,唯有杜康。”
Premier Zhou Enlai called for the revival of Dukang baijiu
“复兴杜康,为国争光”
• Yichuan Dukang Group was set up in 1968
• Ruyang Dukang Group Co was established on the original site of Du Kang’s brewery in 1972
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Established brand awareness
5
China Well-Known Trademark (2005)
China Intangible Cultural Heritage (2008)
Dukang’s brand synonymous with market leadership in product quality and brand identity
National awards won include:
China Time-honored Brand (2005)
Top 10 Chinese Wine Brands (2001)
Star Enterprise Of The National Wine Industry (1994)
Henan Well-Known Trademark (2008)
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Financial highlights
C
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535.6 413.7
146.9 0.3
169.1
105.4
28.7
635.8 994.1
957.0
663.0
486.1
893.0
318.3
200.1
0
500
1,000
1,500
2,000
2,500
FY2012 FY2013 FY2014 FY2015
RM
B(m
il)
Siwu Regular Siwu Premium Luoyang Dukang Regular Luoyang Dukang Premium
863.4
7
Sales
Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015
1,826.6
2,406.2
1,450.9
Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015
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Sales volume & Average selling price
8
(Tonnes) (RMB/Kg)
(Tonnes) (RMB/Kg)
FY2014: Jul 13 – Jun 14
290 2,037 2,652 4,580 1,807 1,396
187.2 154.2
180.5 194.3 176.1
143.3
0.0
50.0
100.0
150.0
200.0
250.0
300.0
0
1,000
2,000
3,000
4,000
5,000
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Luoyang Dukang Premium
Total Sales Volume (tonnes) ASP (RMB/kg)
2,272 13,053 18,609 29,330 30,827 23,058
27.8
34.5 34.2 33.8 31.0
28.8
0.0
10.0
20.0
30.0
40.0
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Luoyang Dukang Regular
Total Sales Volume (tonnes) ASP (RMB/kg)
Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015
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Gross profit
Note: Financial Year End - 30 June FY15: Jul 2014 – June 2015
92.0 106.5 130.8 96.6 38.4 0.1
114.0 103.9 89.6 57.6
13.9
18.0
145.8 202.0 345.8
308.3
131.9
27.4
156.4
261.9
484.3
162.7
81.4
0
100
200
300
400
500
600
700
800
900
1000
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
RM
B (
mil)
Yearly Gross Profit
Siwu Regular Siwu Premium Luoyang Dukang Regular Luoyang Dukang Premium
Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015
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Gross profit margins for Dukang brand
FY2014: Jul 13 – Jun 14 10
20.6% 23.4% 24.4% 23.3%
26.2%
19.9%
52.4% 52.2%
53.0%
29.7% 29.8%
0
28.5%
32.0% 31.8% 34.8%
32.2%
25.3%
50.4% 49.5%
53.9%
44.0%
51.1%
40.7%
0%
10%
20%
30%
40%
50%
60%
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Gross Profit Margins
Siwu Regular Siwu Premium Luoyang Dukang Regular Luoyang Dukang Premium
Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015
*No sales for Siwu Premium
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(RMB ‘Mil)
Advertisement and Promotion
China National Sugar and Alcoholic Commodities Fair
Peony Cultural Festival
TV Ads
Luoyang Dukang National Trade Fair
FY2014: Jul 13 – Jun 14
56.2 129.8 224.3 257.2 327.9 18.1
7.2% 9.1%
12.3% 10.7%
22.6%
7.2%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
300
350
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
A&P expenses and A&P as a percentage of sales
A&P A&P as a % of sales
Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015
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Net Profit & Margin
FY2014: Jul 13 – Jun 14
25.0 168.0 218.1 389.7 44.1
-561.4
3.2%
11.8% 11.9% 16.2%
3.0%
-65.0% -70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
-800
-600
-400
-200
0
200
400
600
FY2010* FY2011 FY2012 FY2013 FY2014 FY2015
Pe
rce
nta
ge (
%)
RM
B (
mil)
Net Profit & Margin
Profit attributable to equity holders Net Profit Margin
Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015
*Impairment losses of RMB547.4 million
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Financial position
RMB (mil) As at 30 June 2015 As at 30 June 2014
Total Equity 1,437.3 1,998.7
Total Assets 1,838.4 2,534.0
Inventories 663.7 689.6
Cash & Equivalents 403.0 391.8
Total Liabilities 401.2 535.4
Bank Borrowings 134.8 201.0
Gearing Net Cash Net Cash
RMB (mil) FY2015 FY2014
Net cash generated/(used in) operating activities
149.7 (320.0)
Net cash generated/(used in) investing activities (60.9) (152.1)
Net cash generated/(used in) financing activities (77.6) 106.5
Net Increase/(decrease) in cash and cash equivalents
11.3 (365.5)
Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015
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Turnover ratios
Notes: Accounts Receivable Turnover = Trade receivables as at end of quarter x 365 days 4 x Revenue for the quarter Accounts Payable Turnover = Trade and bills payables as at end of quarter x 365 days 4 x Cost of sales excl. consumption tax for the quarter Inventory Turnover = Inventories as at end of quarter x 365 days 4 x Cost of sales excl. consumption tax for the quarter
Note: Financial Year End - 30 June
No. of days FY2015 FY2014
Accounts Receivable Turnover
0 1
Accounts Payable Turnover 60 72
Inventory Turnover 492 371
FY15: Jul 2014 – Jun 2015
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Growth strategies
D
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Growth strategies and market opportunities
16
Strengthen distribution
network
Improve capacity and utilisation
Enhance brand
awareness
Townships
Villages
Counties
3 Pronged Growth Strategies
New Market Opportunities in Henan Province during challenging times
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Enhance brand awareness
Award winning microfilm International Jindanruo Award for “Father’s Love”
Jinhaitang Award for “Father’s Love”
Silver Award in Pingyao Art Festival for “ Come back home with love”
Customized products for young customers Incorporates cartoon characters and comical comments into
its design of product packaging for wedding
Pioneered various marketing methods WeChat: social as well as sales platform
Weibo: over 7,600 posts, almost 50,000 followers
Joined Chengdu Spring of Rum 2015 Allowed visitors to enjoy a taste of pure baijiu on the spot
from fermentation pools
17
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No. of distributors *
Luoyang Dukang
2011 2012 2013 2014 2015
Henan Province 114 144 88 87 78
The rest of China 56 83 82 81 98
*None of the top 5 distributors accounts for more than 10% of sales
Super Market Restaurant Specialty Store Flagship Store Dennis Department Stores
18
Optimize traditional distribution network
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Exclusive partnership with Sichuan 1919 Wines & Spirit -- Online-to-Offline (“020”)
19
Expand online distribution channels
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Improve capacity & utilization
700
2,200
2,410 2,300
700
2,200 2,200 2,330
922
2,766 2,766
2,161
802
2,313
2,368 2,301
624
2,311
2,364 2,315
803
2,859 3,023
1,777
115%
105% 98% 100%
89%
105% 107%
98%
87%
103% 109%
82%
0%
20%
40%
60%
80%
100%
120%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
Grain Alcohol of Luoyang Dukang*
Quarterly Capacity Output Utilisation Rate
(Tonnes) %
20 Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015
*Annual capacity of 7,203 tonnes from 2,428 fermentation pools ** Fermentation period of 60 days for Luoyang Dukang
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Thank You “何以解憂,唯有杜康。”
Contact details: Ngo Yit Sung Corporate & IR Manager, Dukang Distillers Holdings Ltd Tel: +65 8111 4885 (Singapore) + 886 989 260 687 (Taiwan) Email: [email protected] Zhang Yuchao Investor Relations Consultant Financial PR Pte Ltd Tel: +65 6438 2990 (Singapore) Email: [email protected]
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