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2004
Annual
Results
2004
Annual
Results
2004 Annual Results
15 March 2005
15 March 2005
15 March 2005
-1-
Highlights
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
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Summary of Final Results
Twelve months ended 31 December, USD million
Change
2003
2004
Turnover
203.8
225.0
+10.4%
Gross Profit
54.6
64.8
+18.6%
Net Profit
22.1
24.3
+10.2%
EPS (US cents)
1.72
1.61*
-6%
Gross profit margin
26.8%
28.8%
N/A
Net profit margin
10.8%
10.8%
N/A
* 2003 Weighted average of ordinary shares in issue was 1,264,508,000
while it is 1,514,746,000 in 2004.
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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
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Factors Undermined Growth (II)
• Production Cost (2H 2004 compared with 2H 2003):
Change
21%~40% 
Raw materials
(such as Molasses, Cassava, etc.)
Packing materials
20%~25% 
Transportation
10% 
Admin. & Sales Expenses
12% 
Gross Profit Margin
2H 2003
2H 2004
28.1%
23.7%
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Strong Balance Sheet
As of
31 Dec 2003
(USD million)
As of
31 Dec 2004
(USD million)
Cash
35.4
33.2
Short-term Debt
31.5
41.2
Long-term Debt
24.3
25.7
Total Debt
55.8
66.9
Shareholders’ Equity
225.1
234.5
Debt to Equity Ratio
24.8%
28.5%
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Key Financial Figures
31 Dec 2003
31 Dec 2004
Current Ratio (Times)
2.09
1.79
Net Gearing Ratio* (%)
9.0%
14.4%
ROE Ratio (%)
11.2%
10.6%
* net
debt / equity
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Business
Review
Market Analysis
Revenue Growth Across all Markets
Europe ASEAN
2.4% Countries
Europe
1.5%
Taiwan & others
3.8%
ASEAN
Countries
2.8%
PRC
10.6%
Taiwan & others
2.2%
4.1
PRC
13.1%
Vietnam
56.3%
Vietnam
58.4%
Japan
22.9%
Japan
21.9%
2003
For the year ended 31 December
2004
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Market Analysis
Revenue Growth Across all Markets
USD Million +6.4%
140.0
126.7
119.0
120.0
100.0
80.0
2003
2004
+5.7%
60.0
46.6 49.3
+36.4%
40.0
29.5
21.6
20.0
+61.1%
5.7
9.2
+67.8%
3.2 5.3
0.0
Vietnam
Japan
PRC
ASEAN
For the year ended 31 December
Europe
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Major Market Analysis
Vietnam
6.4% to US$126.7 million

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

5.7% to US$49.3 million
61.1% to US$9.2 million
Sales growth through aggressive and effective market
expansion activities
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Major Market Analysis
PRC
36.4% to US$29.5 million

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

67.8% to US$5.3 million
MSG and modified starch sales up significantly
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Product Analysis
Turnover by Products
Specialty
Otherschemicals
Cassava starch 2.2%
2.7%
based products
6.4%
Lysine
13.5%
MSG
69.0%
Specialty
Others chemicals
Cassava starch 2.3%
3.0%
based products
6.6%
MSG
69.5%
Lysine
14.4%
G.A.
6.3%
G.A.
4.2%
2003
For the year ended 31 December
2004
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Product Analysis
Turnover by Products
USD +11.2%
Million
156.3
160
140.6
140
120
2003
2004
100
80
60
+18.6%
40
27.4
32.5
+12.9%
-25.4%
12.8 9.5
20
0
MSG
Lysine
G.A.
13.1 14.7
+25.2%
5.5 6.8
Cassava starch Specialty
based products Chemicals
For the year ended 31 December
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Major Product Analysis
MSG

11.2% to US$156.3 million
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

12.9% to US$14.7 million
44.4% to US$4.9 million
132.2% to US$9.8 million
Strategically reduced sales of native starch to focus on the modified starch market
that enjoys a higher margin
Specialty Chemicals

18.6% to US$32.5 million
25.4% to US$6.8 million
Industrialization and modernization of Vietnam prompted market demand
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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
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Prospects
For 2005
Major Growth Drivers
Growth Drivers


Enhance cost structure by reducing production
and raw material costs

Continual capacity expansion to capture rising market
demand

Excellent market potential of new products: r-PGA and
high value-added seasonings
Further expansion into new markets especially in
ASEAN countries and PRC
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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
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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)
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New Product Launch
• Plant construction delayed due to material storage.
Estimated completion is 4th quarter 2005
• Work underway on application for Sales permit
r-PGA
• Cooperate with potential sales agent to develop sales
and marketing plan
• Continue to work with clients and research institutions
on various industrial applications
• Versatile flavor enhancers made from MSG and
various natural seasonings
High Value-added • Enjoys strong demand due to diverse tastes of
Seasonings
Asian dishes
• Product launch expected in second quarter of
2005
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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
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Mission
“To be Asia’s leading manufacturer of
fermentation-based amino acids,
food additive products and
cassava starch based products”
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2004
Annual
Results
2004
Annual
Results
2004 Annual Results
15 March 2005
15 March 2005
15 March 2005
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