( stock code: 2789 ). disclaimer the slides/materials used in this presentation are strictly...
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( Stock Code: 2789 )
Disclaimer Disclaimer
The slides/materials used in this presentation are strictly confidential. The information contained in this presentation is being furnished to you solely for your information and may not be taken away, reproduced, redistributed, or passed on, directly or indirectly to any other person (whether within or outside your organization/firm), or published, in whole or in part, for any purpose. The slides/ materials do not constitute an offer of securities in the United Kingdom, Australia, the PRC, United States, Canada or Japan. In particular, neither the information contained in this presentation nor any copy hereof may be transmitted, reproduced, taken or transmitted into the United Kingdom, Australia, the PRC, United States, Canada or Japan or redistributed, in whole or in part, directly or indirectly, within the United States or to any U.S. person. By attending this presentation, you are agreeing to be bound by the foregoing restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.
These slides/ materials do not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. The shares of Yuanda China Holdings Limited (the “Company”) have not been, and will not be, registered under the U.S Securities Act of 1933, as amended (the “U.S Securities Act”) or the securities laws of any state of the United States and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and any applicable state or local securities laws. There will be no public offering of the Company’s shares in the United States. This document shall not constitute an offer to sell or a solicitation of an offer to buy the Company’s securities nor shall there be any sale of such securities in any state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or country. In Hong Kong, no shares of the Company may be offered to the public unless it is conducted in compliance with the Securities and Futures Ordinance, Chapter 571 of the laws of Hong Kong and a prospectus in connection with the offering for subscription of such shares has been formally approved by the Stock Exchange of Hong Kong Limited and duly registered by the Registrar of Companies of Hong Kong which contains all the information as required under the Companies Ordinances (Cap. 32) of the laws of Hong Kong and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. Any decision to purchase securities in any offering should be made solely on the basis of the information contained such prospectus or international offering circular to be published in relation to such offering.
This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of the Company and factors beyond the Company’s control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from these forward-looking statements. The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such dates.
The information in this presentation should be considered in the context of the circumstances prevailing at the time of its presentation and has not been, and will not be, updated to reflect material developments which may occur after the date of this presentation. The information is not intended to provide, and you may not rely on these materials as providing a complete or comprehensive analysis of the Company's financial or trading position or prospects. Some of the information is still in draft form. This presentation also contains information and statistics relating to the plastic pipes industry. The Company has derived such information and data from unofficial sources, without independent verification. The Company cannot ensure that these sources have compiled such data and information on the same basis or with the same degree of accuracy or completeness as are found in other industries. You should not place undue reliance on statements in this presentation regarding the plastic pipes industries. The information contained in this presentation does not constitute a due diligence review and should not be construed as such. The information contained in these materials has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be place on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. None of the Company, or any of their respective directors, officers, employees, agents or advisers shall be in any way responsible for the contents hereof, or shall be liable whatsoever (in negligence or otherwise) for any loss or damage whatsoever arising from use of the information contained in this presentation or otherwise arising in connection therewith and none of them shall owe you any fiduciary duty in relation to this presentation.
2
Company Overview
Shenyang Art Centre
Shareholding StructureShareholding Structure
Yuanda China (Listed Company)
Shenyang Yuanda
38 subsidiaries / branches
(1) Management represents 6 directors and other senior management
54.51% 9.04% 36.45%
Overseas
China
Mr.Kang Baohua(Chairman) Senior Management(1) Public
26 subsidiaries / branches
Overseas
Covering 30 provinces, autonomous regions and
municipalities
BVI & HK Co
4
Company OverviewCompany Overview
Global leader in curtain
wall industry
Global provider of integrated
curtain wall solutions
The Group is a provider of one-stop integrated curtain wall solutions including the design of curtain wall systems, procurement of materials, fabrication and assembly of curtain wall products, performance testing, installation of products at construction sites, and after-sales services.
We also provide ancillary products related to curtain wall systems, including skylights, metal roofs, canopy systems, shading systems, balustrade and breast board systems, fire doors and rolling doors, and energy-saving aluminum alloy doors and windows.
End customers to our curtain wall solutions mainly comprise non-residential and infrastructure
developments both in domestic and overseas market, such as office building of government authorities or headquarters for leading companies from various
industries, hotels, shopping center, center buildings for the use of conference,
culture, sports, art and exhibition, airport, railway station and hospital and universities.
5
World’s Largest: 2011 revenue at RMB10.80 billion
(2011 market share(1) World: 7.84%; China: 23.0%)
Fastest growth: 2008 – 2011 revenue CAGR at 22.2%; 2008 – 2011 Domestic and World
curtain wall market CAGR at 16.5%, 6.2% respectively.
Rooted in the fastest-growing curtain wall market: China, Undertaken projects globally in
over 40 countries and regions
Newly awarded 132 projects in 1H2012 with total contract value of approximately RMB8.0 billion.
The value of backlog amounted to approximately RMB20.0 billion in total as at 30 June, 2012
5(1) According to the Synovate report, Monitor analysis, and Cinda Securities, and expert interviews (calculated on 50million+ revenue curtain wall companies.) based on 2011 revenue
Company Overview (Con’d)Company Overview (Con’d)We believe we are a leading curtain wall provider with a comprehensive product portfolio. Through research and development, we have further developed various curtain wall products by using more complex designs, production and installation as well as combining the new curtain wall products with new materials, technology, energy, environment protection and energy conservation
We are striking to realizing “Low-carbon, Function, Safety” of curtain wall products. Such products include double-skin curtain walls, photovoltaic curtain walls, ecologically friendly curtain walls, video curtain walls and membrane structure curtain walls
6
One of the world’s largest R&D teams, with R&D centers in China, Switzerland, Japan and Australia, 600+ R&D professionals and 1,500+ designers
Launched 80+ new products since 2008, pioneering the extensive use of curtain wall products
Attained 548 patented items
Global marketing network, 38 Chinese and 26 overseas subsidiaries/branches
China‘s world-renowned curtain wall trademark
First time on the ENR’s Top 225 International Contractors List as the only curtain wall supplier in 2011
Undertaken many Landmark projects all around the world
Global leading
curtain wall technology
First brand in global
curtain wall industry
MilestonesMilestones
7
China
Overseas
Completed landmark domestic projects
Leadership position in the Global and China
curtain wall industry Rapid domestic
growth
By 2010, became the world’s largest
curtain wall company
Incorporation
By 2005, all 4 major
production base s
were completed
2006 – 20091993 – 1997 1998 – 2006
Expansion of international business
20102002 – 2009
No.1 in China : 23.0%(1) market share
No.1 in the world: 7.3 market share
China‘s world-renowned curtain wall trademark
Granted as the first chose curtain wall company by customer in the China Curtain Wall Net
600+ R&D professionals and 1,500+ designers
Undertaken projects in 40 countries and regions
Launched 80+ curtain wall products during the past few years
Has 38 branches in China covering 30 provinces and autonomous regions; and 26 overseas branches
1993 Founded Shenyang Yuanda1994 Undertook Shenyang ICBC
Tower project1997 Awarded the 1st Luban
Award for the Beijing Xidan International Building
1998 Founded Shanghai
Yuanda to strengthen the coverage in Eastern China market
2000 Shanghai and
Chengdu production base completed
2005 Foshan production
base completed
2006 China National Swimming
Center “Water Cube” Beijing New Poly Plaza2007 National Stadium of China
“Bird’s Nest”2008 Wuxi Shangneng R&D
Building2009 Theme Pavilion of Expo
2010
2002 Signed the Huangjian Tower project in
Singapore, representing the Group’s first overseas project
2004 – 2007 Established a number of overseas branches2007 – 2010 Completed various overseas projects such as
Cocoon Tower in Japan, the Legacy at Millennium Park in USA, Executive Towers at Business Bay in Dubai, Airrail Center Frankfurt in Germany, etc
Landmarks Projects in the WorldLandmarks Projects in the World
COCOON Tower
Theme Pavilion of Expo 2010 Shanghai China
Beijing Galaxy SOHO China National Swimming Center “Water Cube”
National Stadium of China “Bird’s Nest”
Airrail Center Frankfurt Executive Towers at Business Bay Meydan Racecourse
Leadenhall Building in London
The Legacy at Millennium Park
8
Sales network
R&D centers
Federation Tower
Technology ConceptTechnology Concept
Double-skin energy-saving curtain walls
Introduced the “green” concept in curtain wall
products
Membrane structure curtain walls
Ecologically friendly curtain wallsPhotovoltaic curtain walls
Improve the thermal insulation of the outer building structure, indoor ventilation, sound insulation and daylighting
Possess characteristics such as high transparency, light weight, high resistance to aging and long life
Integrate photo-voltaic system installed on the glass of the curtain wall to generate electricity from solar energy
Outer building structure covered by a botanical layer with a bioclimatic buffering layer, designed to achieve resource conservation and reduce pollution
Low Carbon
SafetyShenyang Art CenterMicrosoft (China)
Headquarters
Theme Pavilion of Expo 2010 Shanghai China
Theme Pavilion of Expo 2010 Shanghai China
Theme Pavilion of Expo 2010 Shanghai China
Wuxi Shangneng R&DBuilding
Beijing Van Palace
Energy-saving Membrane Structure
PhotovoltaicEcologically Friendly
“Water Cube”
Energy-
saving
9
10
Global marketing strategy
Core technology strategy– Technology Leads Market
Brand Strategy– Build the world’s first brand
Extension of industrial chain strategy– Vertical and horizontal integration
M&A and restructuring strategy
Corporate strategy
Corporate strategy
Corporate StrategyCorporate Strategy
Curtain Wall Market
Dalian Hang Lung Plaza
Curtain Wall Market SizeCurtain Wall Market Size
840919
1,028
1,1441,243
1,313
1,455
1,617
1,803
2,017
2,263
0
500
1,000
1,500
2,000
2,500
2005
2006
2007
2008
2009
2010
2011
2012E
2013E
2014E
2015E
(Rm
b 0
0'm
n)
98 109 128
169
210
259
311
374
450
541
650
0
100
200
300
400
500
600
700
2005
2006
2007
2008
2009
2010
2011
2012E
2013E
2014E
2015E
(Rm
b 00
'mn)
Growth in China curtain wall market size Growth in global curtain wall market size
2005 – 2015F CAGR: 10.4%
2005 – 2015F CAGR: 20.8% (1
)
12
(1) According to the Synovate report, Monitor analysis, and Cinda Securities, and expert interviews (calculated on 50million+ revenue curtain wall companies.)
Market share(1) around the world for Yuanda
Global Curtain Wall Market Distribution & Yuanda Curtain Wall Market ShareGlobal Curtain Wall Market Distribution & Yuanda Curtain Wall Market Share
23.0% 24.1%
5.8%2.9% 1.7%
0.1%0%
5%
10%
15%
20%
25%
30%
China Middle East Other areasin the world
Other areasin Asia
Europe USA
Global Market Share :7.4%
Regional Market Size ( RMB bn )
31.2 6.0 17.3 18.7 36.8 35.5
25%25%
21%21%
25%25% 12%12%
13%13%
4%4%
Other areas in the world
Europe
USA
China
Middle East
Other areas in Asian
Global Mar-ket share
Distribution
Low Market Share in the Blooming American Market by now
13
U.S. market and the European market constitute each 1/4 of the global
curtain wall market Brazil, Southeast Asia and other emerging markets are growing fast Australia, Russia and other markets still in great growth potential
(1) According to the Synovate report, Monitor analysis, and Cinda Securities, and expert interviews (calculated on 50million+ revenue curtain wall companies.) based on 2011 revenue
China Curtain Wall MarketChina Curtain Wall Market
14
Three major driving factors
of China curtain wall
market development
Inner driving force - Replacement needs
New Driving Force - Energy saving construction
Original driving force - Urbanization
620
1500
4000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2005 2010 2015
(Rm
b00
'mn)
2005 – 2010 CAGR: 19.33%
12th Five-Year Plan: Expected production value of Rmb400 bn in the curtain wall market by 2015
(1) According to Industry Association
China Curtain Wall Market Urbanization
China Curtain Wall Market Urbanization
15
China's urbanization rate reached 51.27% in 2011(2)
Urbanization
The rise of the Midwest, the second and third tier cities
Continued strong demand for commercial real estate
Continued growth in the construction of public buildings
expected that the urbanization rate will exceed 55% in 2015
Regional average annual urbanization growth rate in 2005-2010 around the world(1)
0%
10%
20%
30%
40%
50%
60%
70%
80%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2015
E
2.0%
0.4%0.2% 0.1%
0.4%0.2%
0%
1%
1%
2%
2%
3%
China MiddleEast
Australia Russia U.S. U.K.
51.27%
(2) Source: National Bureau of Statistics(1) Source: Bloomberg
Fastest urbanization rate in China
16
Office building investment growth accelerating
Completed Investment value of office building maintains rapid growth
Investment in commercial business buildings growing fast
Investment in commercial business buildings maintains rapid growth
China Curtain Wall Market Urbanization - Commercial real estate & public buildings (con’d)
China Curtain Wall Market Urbanization - Commercial real estate & public buildings (con’d)
Completed investment value in office building (Bmb 100m)
YoY growth (Right Axis)
Investment value in commercial business building (Bmb 100m)
YoY growth (Right Axis)
Completed investment value in real estate development: Office Building: Accumulated value (Rmb 100m)
Accumulated YoY (Right Axis)
Completed investment value in real estate development: Commercial Business Building: Accumulated value (Rmb 100m)
Accumulated YoY (Right Axis)
China Curtain Wall Market Urbanization - Commercial real estate & public buildings (con’d)China Curtain Wall Market Urbanization - Commercial real estate & public buildings (con’d)
South Australian Institute of Health and Medical (RMB160 mn)
BBVA Bank, Mexico (RMB220 mn)
High-end Residential inYekaterinburg, Russia (RMB120 mn)
Dalian Henglong Plaza (RMB320 mn)
Landmark projects awarded in 1H2012
Shenyang Art Centre (RMB190 mn)
Bohai Bank Tianjin Branch (RMB180 mn)
Beijing Gezhouba Building (RMB120 mn)
Fuzhou Administrative Center (RMB150 mn)
17
• The 12th Five-Year Plan driven further development on new energy, culture, tourism, health care, finance, electricity, logistics, automotive and other industries, which brings a new round of development of commercial real estate and public buildings
Chart : …which account for more than 95% of the market in China
2007 – 2012 China curtain wall market breakdown
5 7 8 9 11 13
104 122146
176215
262
38 48 62 74 89 107
0
50
100
150
200
250
300
2007 2008 2009 2010F 2011F 2012F
(RM
B 1
00
m)
Residential Commercial Public(1)
( 1) Public buildings include government buildings, schools, libraries, pharmaceutical and public systems
According to the Synovate report, Monitor analysis, and Cinda Securities, and expert interviews (calculated on 50million+ revenue curtain wall companies.)
World One Tower 444m印度最高楼
财务摘要Operating information
Shanghai Tower 632m
Operation ScaleOperation Scale
11.77%
5.31%3.84%
6.05%4.28%
1.33%
23.46%
9.59%
16.99%
6.73%
10.64%
0%
5%
10%
15%
20%
25%
MiddleEastFarEastAustralia Europe American Others NortheastNorthern Eastern WesternSouthern
(%
)
Backlog by Region
Overseas China
19
Value of Backlog
48.9%54.8% 51.9%
61.3%
67.4%
56.9%
51.1%45.2%
48.1%
38.7%
32.6%
43.1%
11,90012,488
14,331
17,186
13,196
20,015
0
5,000
10,000
15,000
20,000
2008 2009 2010 2011 1H2011 1H2012
(RM
B¥ m
n)
Overseas
China
(For the year ended 31 Dec) (For 6 months ended 30 Jun)
Newly-awarded ProjectsNewly-awarded Projects
4.16%
4.13%
2.41%3.01%
8.50%
0.00%
37.24%
7.74%
17.32%
6.33%9.16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Middle EastAsia AustraliaEuropeAmericanOthers NortheastNorthernEastern WesternSouthern
(%
)
Chart 2 : Newly-awarded Projects by region
Overseas China
Chart 1 : Value of Newly-awarded Projects
China Overseas
4,7555,3546,577
10,272
3,767
6,257 6,003
2,2954,528
3,3802,0541,786
0
2,000
4,000
6,000
8,000
10,000
12,000
2008 2009 2010 20111H20111H2012 2008 2009 2010 20111H20111H2012
(RM
B¥
mn)
(For the year
ended 31 Dec)(For the 6 months
ended 30 Jun)(For the year
ended 31 Dec)(For the 6 months
ended 30 Jun)
20
Chart 3 : Newly-awarded projects sorted by end consumers
Offi
ce b
uild
ing
by
func
tion
Public buildings25%
Commercial Real Estate70%
Residential5%
5.4%
0.5%
9.4%
4.4% 4.7%2.5% 3.0%
19.9%
1.9%
6.2%
42.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Hou
se &
Hom
e
Stat
ium
Cul
ture
Logi
stic
Gov
ernm
enta
lIn
stitu
tion
Med
ical
Indu
stria
lC
ompl
ex
Bus
ines
sD
istr
ict
Tour
ism
Hot
el
Offi
ceB
uild
ing
Finance32.29%
IT6.60%
Petrifaction2.89%
House & Home0.84%
Motor0.82%Electricity
7.17%
Media3.43%
Others45.96%
Financial Stats
South Australian Institute of Health and Medical
Financial AbstractsFinancial Abstracts
22
1H2012 1H2011 Change
(RMB¥ mn) (For the 6 months ended 30 Jun)
Turnover 5,213.5 4,802.0 8.6%
Gross profit margin (%) 18.8% 23.8% (5.0%)
EBITDA 402.7 647.9 (37.8%)
Profit attributable to equity shareholders of the Company
262.4 416.6 (37.0%)
Basic and diluted earnings per share (RMB cents)
4.2 8.9 (52.8%)
Net cash used in operating activities (1,122.2) (204.9) 447.7%
Debt/Equity ratio (%) 45.9% 45.8% 0.1%
Liquidity ratio (times) 1.55 1.38 4.54%
TurnoversTurnovers
Turnover breakdown by regionTurnover
66.8% 61.4%
64.5%66.5%
65.7% 63.4%
33.2%
35.5%
33.5%
34.3% 36.6%
5,911
7,062
9,261
10,797
4,8025,214
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2008 2009 2010 2011 1H2011 1H2012
(RM
B¥ m
n)
Overseas
China
35.5%
(for the year ended 31 Dec) (For the 6 months ended 30 Jun)
China65.74%
Middle East
14.23%
Europe4.73%
Australia11.60%
USA 0.11%
Asia 1.97%
Others1.61%
China63.40
%
Middle East10.50
%
Europe7.39%
Aus-tralia
8.43%
Asia8.55%
USA 1.39%
Other 0.55%
23Turnover of 1H2012 : RMB 5,214 mn
Turnover of 1H2011: RMB 4,802 mn
Profit MarginProfit Margin图 1 :毛利润及毛利率Chart 1: Gross profit and
Gross margin
1,148
1,657
2,074
2,306
1,143
982
19.4%
23.5% 22.4% 21.4%23.8%
18.8%
0%
10%
20%
30%
40%
50%
0
500
1,000
1,500
2,000
2,500
3,000
2008 2009 2010 2011 1H2011 1H2012
(R
MB
¥ m
n)
Gross profit Gross margin
551
943
1,195 1,205
648
4039.3%
13.4% 12.9% 11.2%13.5%
7.7%
0%
10%
20%
30%
40%
50%
0
500
1,000
1,500
2008 2009 2010 2011 1H2011 1H2012
(RM
B¥ m
n)
EBITDA EBITDA margin
Chart 2: EBITDA and EBITDA margin Chart 3: Net Profit and Net Profit Margin
328
661
806850
422
2495.5%
9.4% 8.7%7.9% 8.8%
4.8%
0%
10%
20%
-200
200
600
1,000
2008 2009 2010 2011 1H2011 1H2012
(R
MB
¥ m
n))
Net pro fit Net pro fit margin (excl. non-controlling in terest)
(for the year ended 31 Dec) (for the 6 months ended 30 Jun)
24
(for the year ended 31 Dec) (for the 6 months ended 30 Jun)
(for the 6 months ended 30 Jun)(for the year ended 31 Dec)
Cost of Sales & Operating ExpensesCost of Sales & Operating Expenses
Chart 1: Stable cost of sales Chart 2: Operating expenses(as % of revenue) continue to decrease steadily
52.9% 49.9%
23.0%25.0%
6.0% 7.0%
4.5% 5.1%3.0% 2.7%2.9% 2.8%2.9% 2.9%3.2% 3.3%1.6% 1.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1H2011 1H2012
Raw material
Installation
Processing
On-siteTransportationWagesR&D
OthersTaxation
25
11.6% 11.4%10.9%
11.6%
(for the year ended 31 Dec) (for the 6 months ended 30 Jun)
11.8%11.3%
(for the year ended 31 Dec)
2.6% 2.7%2.1% 2.1% 2.2% 2.2%
9.0% 8.7%8.8%
9.5% 9.1%9.6%
0%
3%
6%
9%
12%
15%
2008 2009 2010 2011 1H2011 1H2012
Selling ExpensesAdministrative Expenses
Operating Turnover DaysOperating Turnover Days
Chart 1: Inventory and trade receivables turnover days Chart 2: Account payables turnover days
Due to the influences of economies and tight credit policy, turnover days has slightly increased
32 32 29 33 38
56 60
87
132
183
0
20
40
60
80
100
120
140
160
180
200
2008 2009 2010 2011 1H2012Inventory turnoverdays
Net contract workreceivables turnover days
97 97101 101
126
149
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
2007 2008 2009 2010 2011 1H2012
(day
)
(d
ay)
26
(For the year ended 31 Dec) (For the 6 months ended 30 Jun)(For the year ended 31 Dec) (For the 6 months ended 30 Jun)
Competitors Comparison
BBVA Bank, Mexico
Leading R&D CapabilitiesLeading R&D Capabilities
Possesses 187 proprietary patented technologies in 2012 1H;Newly applied for the registration of 388 patents; (included patents on 2011 for 2012); 548 patents have obtained the certificate.
One of the world’s strongest R&D teams, with 600+ R&D professionals
Global R&D network with 4 regional R&D teams located in China, Switzerland, Australia, and Japan, respectively
No.1 in Terms of R&D Investment (1H2011) R&D Investment Continues to Grow
Source: Company Announcement, by the end of 2012, converted into RMB refer to the exchange rate in September 2012
Growth Rate:16%
106.9123.9
0
50
100
150
1H2011 1H2012
(Rm
b m
n)
123.9
26.0 19.7
2.3%
0.6%
1.0%0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
0
20
40
60
80
100
120
140
(Rm
b m
n)
R&D Expenditure % of Total Revenue
28