Yue Yuen Industrial 2018 Annual Resultsinvestor.yueyuen.com/media/report_e.pdf · 2019-06-26 ·...
Transcript of Yue Yuen Industrial 2018 Annual Resultsinvestor.yueyuen.com/media/report_e.pdf · 2019-06-26 ·...
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Yue Yuen Industrial 2018 Annual Results
22 March 2019
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Disclaimer
Yue Yuen and Pou Sheng have taken every reasonable care in preparing this presentation. However, please be
reminded that the information, materials, opinions and statements contained or referred to in this presentation are all
provided on an "as is" basis. None of the aforesaid information, materials, opinions and statements constitutes or will
be viewed as investment advice or an offer, or a solicitation, recommendation or suggestion by Yue Yuen or Pou Sheng
to deal in any investment products including securities, or other financial products and instruments.
If there is any forward-looking statements contained or referred to in this presentation, these forward-looking
statements are based on current expectations and assumptions, of which many are beyond our control. In addition,
these statements are subject to a number of risks, uncertainties and factors and if any of these risks or uncertainties
materialize, or if underlying expectations not occur or assumptions prove incorrect, actual results, performance or
achievements of Yue Yuen and/or Pou Sheng may vary materially from those described explicitly or implicitly in the
relevant forward-looking statement. Neither Yue Yuen nor Pou Sheng intends or assumes any obligation, to update or
revise these forward-looking statements in light of any difference from those anticipated.
Yue Yuen and Pou Sheng including their respective subsidiaries, associated or affiliated companies, or any of their
respective directors, employees, agents, representatives or associates accepts no liability for and shall not be
responsible or liable for any loss or damage of whatever kind or nature, directly or indirectly, arising from action taken,
or not taken, in reliance on, or resulting from access to or use of the aforesaid information, materials, opinions and
statements (including forward-looking statements, if any) contained or referred to in the presentation.
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Company Profile
Founded in 1988, and listed on the HKEx in 1992 (551.HK)
Core Businesses: Footwear manufacturing and Pou Sheng (3813.HK)
Manufacturing – Predominately athletic and casual / outdoor shoes
Pou Sheng – Sportswear retail & sports services in the Greater China Region
A yield play with solid performance – committed to driving return and value for shareholders
FY18 Revenue by Business Segments
FY18 Total Revenue US$ 9,695.3 million
*Revenue from Texas Clothing Holding Corp. (“TCHC”) Group, a subsidiary of Yue Yuen since April 7, 2017
44.5% 35.7%
16.9% 2.9%
45.6% 36.9%
14.4% 3.1%
Vietnam Indonesia PRC Others*
Shoe Production Volume by Location
FY17 FY18
2.8%
3.8%
* Bangladesh, Cambodia, Myanmar and Mexico
# YoY change in production volume
FY18: 326.0 mn vs. FY17: 324.6 mn pairs
7.1%
-14.0%
5% (FY17: 7%)
Casual/ Outdoor
Soles, Components & Others
Athletic
Sports sandals
35% (FY17: 30%)
11 % (FY17: 13%)
1% (FY17: 1%)
44% (FY17: 46%) Retail
3
4% (FY17: 3%)
Apparel Wholesale *
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Source: Company audited financial statements and management accounts * FY18 Total Dividend: HK$ 1.5/share (Total ordinary dividend for FY17 was HK$1.5/share, including HK$1.1/share final dividend and HK$0.4/share interim dividend)
Revenue (USD ’mn)
Profit attrib. to owners (USD ’mn)
307.1
9,695.3
74%
65% 56%
61%
101%
1.15 1.2
1.4 1.5 1.5
2014 2015 2016 2017 2018
Payout ratio*
HK$ per share*
Dividend* (HK$/Share)
Payout Ratio
101%
$1.5
Prod. Vol. (’mn Pairs)
ASP (USD)
$16.53
326.0
17.53 17.25 16.88 16.87 16.53
307
318
322 325
326
2014 2015 2016 2017 2018
Avg. selling price
Production volume
331 390 535 519
307
8,013 8,435 8,481
9,121
9,695
2014 2015 2016 2017 2018
Profit attrib. to owners
Revenue
2018 Financial Performance Overview
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Our Growth Strategy
Speed
Sustainability
Flexibility
Innovation
Quality
Design
OEM / ODM
Material
Process
Equipment
Apparel
Accessories
Footwear
Retail
Values
5
Directions
4
Segments
3
End to End Platform
2
World’s Leading Sporting Goods
MFG Platform
1
5
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Growing Investment in MFG Excellence
Around 60% of CAPEX in FY2018 was for ME and New Projects MFG Capex ME & New Projects Capex
45% 43%
57% 52% 59%
60%
2014 2015 2016 2017 2018 2019F
500
60% 45%
250
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Corporate Social Responsibility
7
Our parent company Pou Chen Group received Fair Labor Association (FLA) accreditation in June, 2018, as a result of our efforts and commitments in promoting workplace standards, responsible production as well as factory condition improvement.
The Only FLA Accredited Footwear OEM/ODM
A Top-ranking Responsible Investment Target
Pou Chen and Yue Yuen are constituents of world-famous Environmental, Social and Governance (ESG) indexes, including the FTSE4Good Emerging Index and the MSCI World ESG Leaders Index.
Our Focus on Sustainability
Employee Relations
Compliance
Education Implementation Communication Risk Control
ESH & ESG
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FY 2018
Group and Operation Highlights
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Revenue
RMB 22.7 bn + 20.4%
OP Margin
4.3% RMB 966.9 mn
+ 25.5%
Pou Sheng
Revenue
US$ 9,695.3mn + 6.3%
GP Margin
20.7% US$ 1,299.6 mn
- 5.8%
Production Volume
326.0mn pairs
ASP
US$ 16.53
Profit Attrib. to Owners
US$ 307.1 mn - 40.9%
Group
Group excl. PS* * Group excl. PS used in this presentation, unless otherwise specified, includes manufacturing business and TCHC Group
Operating Profit
US$ 498.6 mn - 16.7%
Key Financial Highlights for FY2018
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4,203.8
1,192.2
78.8
2,775.4
253.7 617.5
4,267.7
1,031.0 91.8
3,421.7
392.1 491.0
Athletic Casual/Outdoor
SportsSandals
Retail ApparelWholesale*
Others**
FY17 FY18
23.3%
20.5% 54.6%
1.5%
(US$’ mn) FY18 Shoe Production Revenue by Product Categories
Casual/Outdoor
Sports sandals
Athletic
79%
19%
2%
13.5%
16.5%
Shoe Production
Rev: US$ 5,390.5 mn
Volume 0.4%
ASP 2.0%
* TCHC Group (since April 7, 2017)
** Soles, Components & Others
Y-o-Y Revenue by Product Category
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Shoe Production Volume by Region
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FY18 Production Volume: 326.0 mn pairs
China
Indonesia Vietnam
37%
46%
14%
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FY18 Manufacturing Revenue by Destination Location
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US 31.3% FY17: 32.4% YoY: -6.7%#
Europe 30.2% FY17: 28.7% YoY: +1.3%#
China 13.3%
FY17: 12.1% YoY: +5.5%#
Others* 25.3%
FY17: 26.7% YoY: -8.7%#
FY18 MFG Revenue: US$ 5,881.5 mn FY17 MFG Revenue: US$ 6,092.3 mn
# YoY changes in revenue amount * Others include Rest of Asia, South America, Canada, Australia and Other Area
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Manufacturing Operation Efficiency Indicator
13
795.3
822.5
986.5
982.1
1,031.6
2014 2015 2016 2017 2018
Pairs per person during the year
Productivity – Pairs per person during the year
5.0%
PPH Index – Pairs per person per hour from 2014 (index from 100) to 2018
2014 2015 2016 2017 2018
PPH Index
100.0 104.4 115.6 122.2 133.3
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Manufacturing Operation Efficiency Indicator
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307.1
317.5
322.0 324.6
326.0
386.1K
386.0K
326.4K
330.5K
316.0K
2014 2015 2016 2017 2018
Production Volume 'mn MFG Employees
Productivity – Pairs of shoes produced vs MFG employees from 2014 to 2018
0.4%
4.4%
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YY Group Financial Highlights
(US$’000)
FY 2018 FY 2017 Y-o-Y
Revenue 9,695,282
9,121,426
6.29%
Gross Profit 2,446,058 2,351,146 4.04%
Gross Profit Margin 25.23% 25.78% -0.55pp
Operating Profit 498,591 598,632 -16.71%
Operating Profit Margin 5.14% 6.56% -1.42pp
Profit attrib. to Owners 307,116 519,226 -40.85%
Profit attrib. to Owners Margin 3.17% 5.69% -2.52pp
Non-recurring Profit (Loss) attrib. to Owners
(18,542) 18,397 N/A
Recurring Profit attrib. to Owners 325,658 500,829 -34.98%
Source: Company accounts Please refer to the announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017 For more detail, please refer to Appendix
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Source: Company accounts (figures rounded) Please refer to the announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017
(US$’mn) FY 2018 FY 2017
Depreciation & Amortization 337.6 304.0
EBITDA 825.9 893.0
Capital Expenditure 494.4 552.6
Product Development 205.9 210.2
31 December 2018 31 December 2017
Total Borrowings 2,123.9 1,963.3
Net Borrowings 1,272.5 926.5
Total Debt to Equity 46.7% 42.0%
Net Debt to Equity 28.0% 19.8%
Quick Ratio (X) 1.1 X 1.3 X
Current Ratio (X) 1.9 X 2.0 X
FY 2018 FY 2017
Total Debt to EBITDA (X) 2.6 X 2.2 X
Net Debt to EBITDA (X) 1.5 X 1.0 X
Financial Ratios
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1,036.8 851.4
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YY Group Sources and Uses of Fund
(US$’mn)
Cash from Operation
+584.5 -494.4
CAPEX Disposal of Equity Investment
Net bank Borrowings
Beginning Cash 1 Jan 18
Ending Cash 31 Dec 18
+50.6
+52.4 +44.2 -20.3
Others FX Effect
-312.1 -90.3
Cash Dividend
Share Buyback
Return to Shareholders
US$402.4 mn
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YY Group ROE & ROA Trend
4.8
6.4
5.8
6.5
7.6
7.4
6.6
5.3
4.1
7.5
9.9
8.7
9.4
11.3 11.3
12.1
10.0
7.4
FY14 1H15 FY15 1H16 FY16 1H17 FY17 1H18 FY18
ROA ROE
(%)
Remark: ROE=Profit attributable to owners of the company/ (Total Equity - Minority Interests); half year data is on LTM basis ROA=Net Profit / Total Asset; half year data is on LTM basis
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YY Group GPM Analysis
19
(%)
18.7 18.9 18.9 19.7 19.8 20.2 20.3 20.9 21.0
20.8 20.7
21.0
18.7
18.8 19.3 19.5
22.3 22.6 22.7 23.4
24.4 24.7 24.8 25.1
25.0
25.4 25.4 25.8
25.2 25.0 25.0
25.2
30.9 32.2 32.5
33.3
34.9 35.6 35.8 35.5
33.6
34.6
34.5
35.0
33.8 33.5 33.1
33.5
1Q15 1H15 9M15 FY15 1Q16 1H16 9M16 FY16 1Q17 1H17 9M17 FY17 1Q18 1H18 9M18 FY18
MFG Group PS
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Group excl. PS Note: The figures in the following slides cover the core manufacturing and other operations of the consolidated entity of Yue Yuen Group, and are for
analytical purposes only (prepared using the management accounts)
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(US$’000) MFG only
FY 2018 FY 2017 Y-o-Y FY 2018 FY 2017 Y-o-Y
Revenue 6,273,625 6,346,026
-1.14% 5,881,494 6,092,328
-3.46%
Gross Profit 1,299,557 1,379,472 -5.79% 1,149,027 1,277,811 -10.08%
Gross Profit Margin 20.71% 21.74% -1.03pp 19.54% 20.97% -1.43pp
Operating Profit 351,760 484,299 -27.37% 323,361 467,041 -30.76%
Operating Profit Margin 5.61% 7.63% -2.02pp 5.50% 7.67% -2.17pp
Profit attrib. to Owners 256,035 482,959 -46.99% 240,038 466,997 -48.60%
Profit attrib. to Owners Margin 4.08% 7.61% -3.53pp 4.08% 7.67% -3.59pp
Group excl. PS Financial Highlights
Source: Company management accounts For more detail, please refer to Appendix
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7.8
0 0 0 0 0 0 0 0
4.1
FY17 FY18
22
Manufacturing – Net Profit Margin
(%)
Material
+0.7
-0.9
Overhead
-1.3
Labor Product Mix
Wage Inflation
-0.6
Hedging Loss
Fair Value & Realized
Borrowing
Finance Cost
Others
-0.5 -0.4
Reduction of FX Gains
-0.5 -0.2
SG&A
Deleverage
Other Income
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26.5% 27.1%
24.9% 26.1%
48.6% 46.8%
23
Manufacturing – COGS Decomposition and Y-o-Y
Cost Amount Y-o-Y
Labor
2.8%
Material
5.3%
Overhead
0.7%
GPM 21.0%
GPM 19.5%
% of COGS % of COGS
FY18 FY17
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18.7
19.1
18.9
21.9
19.8
20.5 20.5
22.8
21.0
21.6 21.6
22.7
20.1 19.9
21.4
21.3
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Gross Profit Margin
(%)
GP Margin % - MFG only
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
20.7 20.4 21.8 18.7 18.9 20.2 20.3
24
Group excl. PS GP Margin Trend
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5.3
6.1
3.7
6.8
5.9
7.5
6.7
9.8
6.9
7.1
8.0
8.4
6.0
4.7
5.2
6.5
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Operating Profit Margin
OP Margin % - MFG only
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
7.2 7.8 8.6 5.7 4.8 4.8 6.7
25
(%)
Group excl. PS OP Margin Trend
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MFG only
(US$’mn) FY 2018 FY 2017 FY 2018 FY 2017
Depreciation & Amortization 260.6 240.2 194.4 233.7
EBITDA 603.0 715.8 508.5 692.0
Capital Expenditure 411.1 467.3 405.2 463.0
31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017
Total Borrowings 1,619.5 1,577.1 1,525.6 1,492.5
Net Borrowings 874.5 597.8 787.7 520.9
Total Debt to Equity 42.6% 39.7% 41.1% 38.3%
Net Debt to Equity 23.0% 15.1% 21.2% 13.4%
FY 2018 FY 2017 FY 2018 FY 2017
Total Debt to EBITDA (X) 2.7 X 2.2 X 3.0 X 2.2 X
Net Debt to EBITDA (X) 1.5 X 0.8 X 1.5 X 0.8 X
Return on Owner’s Equity 6.8% 12.2% 6.5% 12.1%
Return on Asset 3.8% 7.2% 3.7% 7.2%
Source: Company management accounts (figures rounded)
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Group excl. PS Financial Ratios
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Manufacturing Operation Efficiency
57
49
2017 2018
28
52
Trade Receivable Days
60
30
78 82
Inventory Days
Trade Payable Days
Working Capital Days
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Pou Sheng International Note: The figures in the following slides are based on Pou Sheng’s
management accounts and announcements, and Pou Sheng adopts RMB as its reporting currency
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Pou Sheng Key Business Activities
Retail Business
Leading distributor of footwear, apparel & accessories for international brands in the Greater
China region
A key partner to Nike and adidas
Sells through directly operated stores, or on a wholesale basis to sub-distributors, online & offline
Store locations include department stores, shopping malls, sports cities, street level & outlets
Brand licensee business
Sport Services Platform
Provides full range of sports services
Products + Services
364 + 1
Online & Offline
Mainland China & Taiwan
29
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Directly Operated Stores
Sub-Distributor Stores Mono Brand Stores
Multi-Brand Stores
YY Sports Outlets: New shopping experience for fast growing
brands
Omni-Channel Strategy Across China
Brick and Mortar Stores
Online Stores
Retail Network
YYsports.com
Rockport.com
3rd party: T-Mall, JD, etc. B2B services
Covers 300 cities in the Greater China
B2C
B2B
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Distinguished Partners and Events
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RMB'mn US$'000
FY 2018 FY 2017 Y-o-Y FY 2018 FY 2017 Y-o-Y
Revenue 22,677
18,833
20.41% 3,421,657 2,775,400
23.29%
Gross Profit 7,599 6,594 15.24% 1,146,501 971,674 17.99%
Gross Profit Margin 33.51% 35.01% -1.50pp 33.51% 35.01% -1.50pp
Operating Profit 967 770 25.58% 145,887 113,513 28.52%
Operating Profit Margin 4.26% 4.09% +0.17pp 4.26% 4.09% +0.17pp
Profit attrib. to Owners 543 394 37.82% 81,913 58,110 40.96%
Profit attrib. to Owners Margin 2.39% 2.09% +0.30pp 2.39% 2.09% +0.30pp
Source: Based on Pou Sheng’s announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017 For more detail, please refer to Appendix
Pou Sheng Financial Highlights
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30.9
33.4
33.2
35.8
34.9
36.3
36.2
34.8
33.6
35.6
34.5
36.3
33.8 33.3
32.2
34.6
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Gross Profit Margin
Pou Sheng GP Margin Trend
(%)
33
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3.5
5.8
4.3
2.9
6.6 7.2
5.5
3.5
4.5
6.1
2.9 2.8
4.6 4.9
3.0
4.5
1Q15 2Q15 3Q15 4Q15*1Q16*2Q16*3Q16* 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Operating Profit Margin
* The figures have been restated due to the application of merger accounting
34
(%)
Pou Sheng OP Margin Trend
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(RMB’mn) FY 2018 FY 2017
Depreciation & Amortization 510 433
EBITDA 1,483 1,197
Capital Expenditure 532 576
31 December 2018 31 December 2017
Total Borrowings 3,531 2,642
Net Total Borrowings 2,800 2,155
Total Debt to Equity 50.2% 41.0%
Net Debt to Equity 39.8% 33.5%
FY 2018 FY 2017
Total Debt to EBITDA (X) 2.4 X 2.2 X
Net Debt to EBITDA (X) 1.9 X 1.8 X
Return on Owner’s Equity 7.9% 6.2%
Return on Asset 4.2% 3.6%
35
Source: Internal analysis report (figures rounded)
Pou Sheng Financial Ratios (in RMB)
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Operation Efficiency
149
2017 2018
16
149
Based on RMB
27
15
36
28
161 161
Trade Receivable Days
Inventory Days
Trade Payable Days
Working Capital Days
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Pou Sheng Store Performance
Number of Stores
Directly Operated Sub-Distributors Total Stores
As at December 31, 2017 5,465 3,313 8,778
Net New Store + / (-) 183 238 421
As at December 31, 2018 5,648 3,551 9,199
2018 1Q 2Q 3Q 4Q Full Year
Directly Operated Stores 10.1% 2.2% 8.9% 8.7% 7.4%
Same Store Sales Growth (SSSg)
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Appendix
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Shareholding Structure
39
Pou Chen (9904.TT)
Yue Yuen Industrial (Holdings) Ltd. (551.HK)
62.32%
50.97%
* As at December 31, 2018
100%
Manufacturing and Others Pou Sheng (3813.HK)
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Started first overseas production in South China
Established production bases in Vietnam & Huangjiang, China
Established production bases in Mexico
Established production bases in eastern and inland China
Began operations at the new headquarters in Taichung, Taiwan
Established production bases in Bangladesh & Cambodia
Established production bases in Myanmar
1988
1992
1994
1998
2001
2002
2006
2008
2009
2014
2015
Expanded into retail business in China
Brand licensee for Hush Puppies in Taiwan
Pou Sheng International listed on HKEX (3813.hk)
Brand licensee for Pony in Taiwan & China
Yue Yuen
Pou Sheng
2012 New CEO on board
Yue Yuen Industrial listed on HKEX (551.hk)
Yue Yuen Industrial founded
2019
Parent Pou Chen Group is accredited by FLA
Company Milestones
40
2018
Parent Pou Chen Group’s 50th Anniversary
Sales channels reached 9,199
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Revenue
In US$’mn
Profit Attrib. to Owners
In US$’mn
Pou Sheng
Group excl. PS
The above figures of Pou Sheng exclude profit attributable to “Non-YY” shareholders (i.e. the 37.7% minority interests)
Pou Sheng
Group excl. PS
51.08
256.04
36.27
482.96
-40.9%
FY17 FY18
2,775.40
6,346.03
+6.3%
FY17 FY18
3,421.66
6,273.63
+23.3%
+40.8%
-47.0%
Revenue & Profit Attributable to Owners
41
-1.1%
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Source: Company accounts Please refer to the announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017
YY Group Financial Highlights
FY 2018 FY 2017 Y-o-Y
US$'000 % US$'000 % + / -
Revenue 9,695,282 100.00 9,121,426 100.00 6.29%
Cost of Sales (7,249,224) -74.77 (6,770,280) -74.22 7.07%
Gross Profit 2,446,058 25.23 2,351,146 25.78 4.04%
SG&A (1,818,348) -18.76 (1,621,919) -17.78 12.11%
Other Income & Expenses, net (129,119) -1.33 (130,595) -1.44 -1.13%
Operating Profit 498,591 5.14 598,632 6.56 -16.71%
Share of Results of A&JV 39,480 0.41 64,586 0.71 -38.87%
Finance Cost & Other Gains/(Losses) (98,507) -1.02 (27,918) -0.31 252.84%
Income Tax (98,448) -1.01 (85,967) -0.94 14.52%
Profit for the Period 341,116 3.52 549,333 6.02 -37.90%
Profit attrib. to Owners 307,116 3.17 519,226 5.69 -40.85%
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Group excl. PS Financial Highlights
FY 2018 FY 2017 Y-o-Y
US$'000 % US$'000 % + / -
Revenue 6,273,625 100.00 6,346,026 100.00 -1.14%
Cost of Sales (4,974,068) -79.29 (4,966,554) -78.26 0.15%
Gross Profit 1,299,557 20.71 1,379,472 21.74 -5.79%
SG&A (779,464) -12.42 (735,595) -11.59 5.96%
Other Income & Expenses, net (168,333) -2.68 (159,578) -2.52 5.49%
Operating Profit 351,760 5.61 484,299 7.63 -27.37%
Share of Results of A&JV 39,620 0.63 65,112 1.02 -39.15%
Finance Cost & Other Gains/(Losses) (75,898) -1.21 (10,963) -0.17 592.31%
Income Tax (58,996) -0.94 (50,277) -0.79 17.34%
Profit for the Period 256,486 4.09 488,171 7.69 -47.46%
Profit attrib. to Owners 256,035 4.08 482,959 7.61 -46.99%
Source: Company management accounts
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Group excl. PS Financial Highlights – MFG only
FY 2018 FY 2017 Y-o-Y
US$'000 % US$'000 % + / -
Revenue 5,881,494 100.00 6,092,328 100.00 -3.46%
Cost of Sales (4,732,467) -80.46 (4,814,517) -79.03 -1.70%
Gross Profit 1,149,027 19.54 1,277,811 20.97 -10.08%
SG&A (658,261) -11.19 (652,819) -10.71 0.83%
Other Income & Expenses, net (167,405) -2.85 (157,951) -2.59 5.99%
Operating Profit 323,361 5.50 467,041 7.67 -30.76%
Share of Results of A&JV 39,620 0.67 65,112 1.07 -39.15%
Finance Cost & Other Gains/(Losses) (70,626) -1.20 (7,786) -0.13 807.09%
Income Tax (51,866) -0.88 (52,158) -0.86 -0.56%
Profit for the Period 240,489 4.09 472,209 7.75 -49.07%
Profit attrib. to Owners 240,038 4.08 466,997 7.67 -48.60%
Source: Company management accounts
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Pou Sheng Financial Highlights (in RMB)
FY 2018 FY 2017 Y-o-Y
RMB’mn % RMB’mn % + / -
Revenue 22,677 100.00 18,833 100.00 20.41%
Cost of Sales (15,078) -66.49 (12,239) -64.99 23.20%
Gross Profit 7,599 33.51 6,594 35.01 15.24%
SG&A (6,913) -30.49 (6,052) -32.13 14.23%
Other Income & Expenses, net 281 1.24 228 1.21 23.25%
Operating Profit 967 4.26 770 4.09 25.58%
Share of Results of A&JV (1) -0.00 (4) -0.02 -75.00%
Finance Cost & Other Gains/(Losses) (144) -0.64 (109) -0.58 32.11%
Income Tax (261) -1.15 (242) -1.29 7.85%
Profit for the Period 561 2.47 415 2.20 35.18%
Profit Attrib. to Owners 543 2.39 394 2.09 37.82%
Source: Based on Pou Sheng’s announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017
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Pou Sheng Financial Highlights (in USD)
FY 2018 FY 2017 Y-o-Y
US$’000 % US$’000 % + / -
Revenue 3,421,657 100.00 2,775,400 100.00 23.29%
Cost of Sales (2,275,156) -66.49 (1,803,726) -64.99 26.14%
Gross Profit 1,146,501 33.51 971,674 35.01 17.99%
SG&A (1,038,884) -30.37 (886,324) -31.93 17.21%
Other Income & Expenses, net 38,270 1.12 28,163 1.01 35.89%
Operating Profit 145,887 4.26 113,513 4.09 28.52%
Share of Results of A&JV (140) -0.00 (526) -0.02 -73.38%
Finance Cost & Other Gains/(Losses) (21,665) -0.64 (16,135) -0.58 34.27%
Income Tax (39,452) -1.15 (35,690) -1.29 10.54%
Profit for the Period 84,630 2.47 61,162 2.20 38.37%
Profit Attrib. to Owners 81,913 2.39 58,110 2.09 40.96%
46
Source: Internal analysis report (figures rounded); various accounting reclassification and adjustments are made to some of the figures when consolidating Pou Sheng numbers into the Yue Yuen Group in order to comply with the requirements of accounting standards
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Thank you
Q&A