Ssy Group Limited · HKEX:2005
Ssy — H1 2023 Earnings Presentation
53 slides from Ssy's earnings presentation, Aug 29, 2023
Slide 1: 2023 Interim Results & Roadshow material
2023 Interim Results & Roadshow material Updated on 29 August 2023 Copyright ® 2022 SSY Group Limited. All rights reserved.
Slide 2: Disclaimer
免责声明 The presentation is prepared by SSY Group Limited (the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form an basis of investment decision for any class of
Slide 3: Business Profile, Competitive Advantages, R&D Status and Prospects, Development Strategies
PART 01 PART 02 PART 03 PART 04 Business Competitive R&D Status and Development Profile Advantages Prospects Strategies SSY Group Limited • 3
Slide 4: Business Profile
PART 01 Business Profile ➢ Financial Highlights ➢ Revenue Overview ➢ Shareholding & ➢ R&D Overview Group Structure
Slide 5: Financial Highlights (1H2023)
Financial Highlights (1H2023) Increase/ （HK$'000） 1H2023 1H2022 (Decrease) Revenue 3,333,157 3,404,513 (2.1%) Gross Profit 1,944,751 1,939,447 0.3% Gross Profit Margin 58.3% 57.0% 1.3%pt EBITDA 993,861 919,046 8.1% EBITDA Margin 29.8% 27.0% 2.8%pt Net Profit 638,611 570,056 12.0% Net Profit Margin 1
Slide 6: Financial Highlights (1H2023)
Financial Highlights (1H2023) Increase/ （HK$'000） 30 June 2023 31 December 2022 (Decrease) Cash and Cash Equivalent 1,789,616 1,667,547 122,069 Bank Borrowings 3,379,969 3,207,648 172,321 Net Asset Value 6,681,527 6,545,824 135,703 Gearing Ratio 20.1% 19.9% 0.2%pt Current Ratio 1.87 1.82 0.05 Accoun
Slide 7: Shareholding & Group Structure
Shareholding & Group Structure Sichuan Kelun China Pharmaceutical & Updated as at 10 August 2023 UBS Others No. of issued shares : Pharmaceutical Mr. Qu Jiguang 2,970,043,385 20.43% 37.07% 10.49% 32.01% Since March 2022, SSY have repurchased 22.14 million shares SSY Group Limited (Stock Code: 2005.H
Slide 8: Revenue Overview (1H2023)
Revenue Overview (1H2023) 1H2023 1H202 By Products Revenue % of Total Revenue % of Total (HK$’000) Revenue (HK$’000) Revenue I.V. Infusion 2,069,115 62.1% 1,833,629 53.8% Ampoule Injections 453,398 13.6% 510,665 15.0% Bulk Pharmaceuticals 453,626 13.6% 776,609 22.8% Oral Preparations 244,391 7.3% 14
Slide 9: Revenue Overview (2022FY)
Revenue Overview (2022FY) 2022 2021 By Products Revenue % of Total Revenue % of Total (HK$’000) Revenue (HK$’000) Revenue I.V. Infusion 3,510,342 54.6% 3,304,365 61.7% Ampoule injections 978,707 15.2% 1,093,615 20.4% Bulk Pharmaceuticals 1,358,949 21.1% 533,860 10.0% Oral preparations and 413,908 6.
Slide 10: Revenue Breakdown by Products (1H2023)
Revenue Breakdown by Products (1H2023) 集团结构 产品销售结构（2021年一季度） Oral Preparations, Medical Materials and other products 10.7% 石药集团有限公司(股票代码：2005.HK) Non-PVC Soft Bag 33.2% Bulk Pharmaceuticals 13.6% 大输液、安瓿小水针、 口服制剂等 Ampoule Upright Soft Bag 13.6% 12.7% Glass Bottle PP Plastic Bottle 药用包材3.6% 化工原料(甲胺) 1
Slide 11: I.V. Infusion
I.V. Infusion Sales volume increase, Optimise product mix, New types of products rapid growth In 1H2023, sales volume of infusion solution reached 936 million bottles (bags), representing an increase of 24.1% y-o-y, revenue reached HKD2,069 million, representing an increase of 12.8% y-o-y Production
Slide 12: Revenue Overview - I.V. Infusion (1H2023)
Revenue Overview - I.V. Infusion (1H2023) 大输液销售概览 Sales volume of Upright soft bag and PP Plastic bottle increased by 43.0% & 23.6% y-o-y respectively I.V. Infusion – 1H2023 By Packaging Average Selling Revenue % of IV GP% Price (ASP) (HK$’000) Revenue (HK$) Non-PVC Soft Bag 1,107,007 53.5% 3.67 67.
Slide 13: Revenue Overview - I.V. Infusion (1H2023)
Revenue Overview - I.V. Infusion (1H2023) Proportion of therapeutic infusions (as % of IV revenue) increased by 2.6 %pt Various products’ volume entered rapid growth period: Ambroxol Hydrochloride and Sodium Chloride (+294%), Moxifloxacin Hydrochloride & Sodium Chloride (+255%), Fluconazole and Sodi
Slide 14: Revenue Overview - I.V. Infusion (2022FY)
Revenue Overview - I.V. Infusion (2022FY) 大输液销售概览 Sales volume of Upright soft bag and PP Plastic bottle increased by 28.1% & 20.1% y-o-y respectively I.V. Infusion – 2022FY By Packaging Average Selling Revenue % of IV GP% Price (ASP) (HK$’000) Revenue (HK$) Non-PVC Soft Bag 1,788,791 51.0% 3.74 62.
Slide 15: Revenue Overview - I.V. Infusion (2022FY)
Revenue Overview - I.V. Infusion (2022FY) Proportion of therapeutic infusions increased by 4.4 %pt Various products’ volume entered rapid growth period: Peritoneal Dialysis Solution (+77%), Ambroxol Hydrochloride (+169%), Moxifloxacin Hydrochloride (+314%), Ciprofloxacin Lactate (+110%) I.V. Infusio
Slide 16: Ampoule Injections
Ampoule Injections Increasingly rich in varieties, Production gradually scaled up In 1H2023, sales volume reached approx. 131 million, increased by 92% y-o-y; revenue accounted for HK$453 million, decreased by 11% y-o-y mainly due to change of sales channel of Betahistine, revenue droped (selling ex
Slide 17: Solid Preparations
Solid Preparations Accelerated upgrade of production & sales scale, revenue contribution increases year by year In 1H2023, revenue accounted for HK$244 million, increased by 68% y-o-y, contributed for 7.3% of total sales, increased by 3%pt y-o-y Antiviral drug : Abidol capsules, revenue accounted fo
Slide 18: Bulk Pharmaceuticals
Bulk Pharmaceuticals Softer market demands and dropped product prices in the first half of the year, successively obtained approvals for featured bulk pharmaceuticals products with high-value added, product mix further diversified In 1H2023, revenue accounted for HK$454 million, decreased by 42% y-o
Slide 19: Medical Materials
Medical Materials Steady operating result In 1H2023, revenue of external sales accounted for RMB80.04 million, increased by 6.4% y-o-y Newly developed products, such as bioprocessing films, specialised films for peritoneal dialysis solution, pistons for pen injectors, rubber plugs with coating and b
Slide 20: Foreign exports
Foreign exports Exports of preparations rose against the trend In 1H2023, export of infusion solution: volume of 51.08 million bottles (bags), growth of 17% y-o-y, revenue of HK$80.08 million, growth of 25% y-o-y In 1H2023, completed 24 product registrations in foreign countries Developed 11 new cus
Slide 21: Research and Development
Research and Development Up to 11 August 2023, a total of 51 national production approvals were obtained (increased 37% y-o-y), including 43 for preparations and 8 for bulk pharmaceuticals Currently 54 product types with 72 specifications passed or regarded as passing consistency evaluation Research
Slide 22: Product passed/regarded passing consistency evaluation
Product passed/regarded passing consistency evaluation (54 Types, 72 Specifications) No. Drug Name Specification Remark 1 Fluconazole Tablets 150mg The First 2 Doxofylline Injection 10ml:0.1g The First 3 Ropivacaine Hydrochloride Injection 10ml:100mg The First 4 Ciprofloxacin Lactate Sodium Chloride
Slide 23: Product passed/regarded passing consistency evaluation
Product passed/regarded passing consistency evaluation (54 Types, 72 Specifications) No. Drug Name Specification No. Drug Name Specification 33 Rosuvastatin Calcium Tablets 10mg 53 Ipratropium Bromide Solution for Inhalation 2ml:500μg 34 Rosuvastatin Calcium Tablets 5mg 54 Ipratropium Bromide Soluti
Slide 24: Competitive Advantages
PART 02 Competitive Advantages
Slide 25: Diversified and Competitive Advantages
Competitive Advantages Bulk Pharmaceuticals, Medical . I.V. Infusion Production Line Materials, Preparations and Intelligent Manufacturing , Biotech - Diversified and Largest Production Capacity on Coordinated Development Single Factory Basis Numerous Prize Recognition, Numerous Specifications,. Mai
Slide 26: Diversified and Coordinated Development
Bulk Pharmaceuticals, Medical Materials, Preparations and Biotech - Diversified and Coordinated Development 1 R&D institute, Production Bases: 2 preparation, 2 bulk pharmaceutical, 1 chemical and 1 medical material, forming whole- industry-chain by preparations + bulk pharmaceuticals + medical mater
Slide 27: Pharmaceutical R&D Institute
Diversified and Coordinated Development - Pharmaceutical R&D Institute It covers an area of 85 acres and has advanced equipment such as high-efficiency/ultra-high- performance liquid chromatographs, gas chromatographs, Fourier infrared spectrometers, and the leading hardware level in the country. I
Slide 28: Preparations Production Base
Diversified and Coordinated Development – Preparations Production Base Shijiazhuang No.4 Pharmaceutical Major products: Non-PVC Soft Bag IV, Upright Soft Bag IV, PP Plastic Bottle IV, Glass Bottle IV, PP Ampoule Injections, Tablets, Capsule and Granules SSY Group Limited • 28
Slide 29: Bulk Pharmaceuticals Production Base
Diversified and Coordinated Development – Bulk Pharmaceuticals Production Base Hebei Guangxiang Pharmaceutical Cangzhou Lingang Youyi Chemical Major products: Caffeine Major product: Methylamine (API for Theophylline , Aminophylline Series caffeine and other pharmaceutical/ag Metronidazole, Benzoyl
Slide 30: Specialised Bulk Pharmaceuticals
Specialised Bulk Pharmaceuticals Bulk Pharmaceutials with status A owned by Hebei Guangxiang Pharmaceutical (22) Serial Registration No. Drug Name Status 1 Y20200001269 Epalrestat A 2 Y20190007857 Aminophylline A 3 Y20190007856 Theophylline A 4 Y20190006345 Niacin A 5 Y20190002961 Benzoyl metronidaz
Slide 31: Specialised Bulk Pharmaceuticals
Specialised Bulk Pharmaceuticals Bulk Pharmaceutials with status A owned by Hebei Guolong Pharmaceutical (18) Serial Registration No. Drug Name Status 1 Y20200001123 Cinacalcet Hydrochloride A 2 Y20200000767 ipratropium Bromide A 3 Y20200000466 Dexmedetomidine Hydrochloride A 4 Y20190001004 Blonanse
Slide 32: Medical Materials Production Base
Diversified and Coordinated Development – Medical Materials Production Base Jiangsu Best New Medical Material Major products: Bioprocessing film series Multi-layer co-extrusion infusion films Rubber stopper series Gasket series SSY Group Limited • 32
Slide 33: Biotechnology and product development
Diversified and Coordinated Development – Biotechnology and product development Hebei Hanlin Technology Major products： Medical Devices (Medical Beauty) In vitro diagnostic reagents Disinfectants SSY Group Limited • 33
Slide 34: Numerous Varieties, Complete Dosage Form, Wide coverage
Numerous Varieties, Complete Dosage Form, Wide coverage No. of Production approvals: 391 No. of Preparations approved: 282 including including 282 Preparations, 40 bulk pharmaceuticals 199 in Essential Drug List, 72 passed consistency 41 medical materials and 28 other products evaluation, 13 in Nati
Slide 35: Numerous Varieties, Complete Dosage Form, Wide coverage
Numerous Varieties, Complete Dosage Form, Wide coverage I.V. Infusion Ampoule Injections • National Centralised Procurement： Solid preparations Fluconazole Sodium Chloride Injection, • National Centralised Procurement： • National Centralised Procurement： Metronidazole Injection Doxofylline, Ambroxol
Slide 36: Market share increases for products in national centralised procurement
Market share increases for products in national centralised procurement National centralised Market share in PRC procurement batch Products being selected government hospitals （Time） 2020 2021 2022 Prucalopride Succinate tablet 1.09% 6.59% 9.44% 3rd batch（Aug 2020） Cefdinir capsule* 2.30% 32.60% 38.
Slide 37: Largest Production Capacity on Single Factory Basis in PRC
I.V. Infusion Production Line Intelligent Manufacturing, Largest Production Capacity on Single Factory Basis in PRC I.V. Production Capacity Expansion No.4 Pharma Year Increase / Year Increase / Year Increase / Year 2019 % change 2021 % change 2022 % change 2023 Non-PVC Soft Bag 750M - 750M - 750M -
Slide 38: Awards and recognitions
Awards and recognitions ✓ Ranked 10 in Chemical Drugs R&D Capabilities in China in 2023 ✓ China pharmaceutical independent innovation pioneer enterprise ✓ China innovative pharmaceutical companies ✓ National-level manufacturing individual champion enterprise ✓ Selected in the 2022 list of outstandin
Slide 39: R&D Status and Prospects
PART 03 R&D Status and Prospects ➢ Strategy in generic drugs R&D ➢ Products for approval application ➢ Specialised drug platform ➢ Key innovative drug R&D projects ➢ Products awaiting approval ➢ Strong external R&D support
Slide 40: Strategy in generic drugs R&D
Strategy in generic drugs R&D Bulk pharmaceuticals Solid preparations ➢ Products requires difficult process/ special process ➢ Focus on products with large market demand and products, self-owned patented technology products urgent clinical needs ➢ Forming Product series ➢ Bulk pharmaceuticals + prep
Slide 41: Strategy in generic drugs R&D (Key therapeutic fields)
Strategy in generic drugs R&D (Key therapeutic fields) Respiratory system: injections/inhalation/oral Cardiovascular system: oral/injection Stimulates lysosomal release from mucus-secreting cells Hypertension (single prescription, compound (bromhexine); Phosphodiesterase (PDE) Inhibitors preparation
Slide 42: Bulk Pharmaceuticals under review (Hebei Guangxiang)
Bulk Pharmaceuticals under review (Hebei Guangxiang) No. Registration No. Drug Name Status Expected approval 1 Y20210000927 Doxofylline A Approved 2 Y20210000931 Tinidazole A Approved 3 Y20210000930 Theobromine A Approved 4 Y20210000678 Tedizolid Phosphate A Approved 5 Y20210001167 Uradil A Approved
Slide 43: Bulk Pharmaceuticals under review (Hebei Guolong)
Bulk Pharmaceuticals under review (Hebei Guolong) No. Registration No. Drug Name Status Expected approval 1 Y20190000687 L-malic acid A Approved 2 Y20210000821 Stippentol I 2023.08 3 Y20220000356 Nicorandil I 2023.11 4 Y20220000426 Etomidate I 2023.12 5 Y20220000427 Trexagliptin Succinate I 2023.12
Slide 44: Type 3 Preparations under review
Type 3 Preparations under review Expected to be approved by the end of 2023 No. Acceptance No. Drug Name Specification 1 CYHS2101884 Terbutaline Sulfate Injection 1ml:0.5mg 2 CYHS2102018 Lipoic Acid Injection 24ml:600mg 3 CYHS2101827 Ornidazole Injection 3ml:0.5g 4 CYHS2101828 Ornidazole Injection 6
Slide 45: Type 4 Preparations under review
Type 4 Preparations under review Expected to be approved by the end of 2023 No. Acceptance No. Drug Name Specification 1 CYHS2101193 Lacosamide Injection 20ml : 200mg 2 CYHS2101621 Felodipine sustained release tablets 5mg 3 CYHS2101759 Lurasidone Hydrochloride Tablets 40mg 4 CYHS2102124 Argatroban I
Slide 46: Preparations under consistency evaluation review
Preparations under consistency evaluation review Expected to be approved by the end of 2023 No. Acceptance No. Drug Name Specification 1 CYHB2250308 Azithromycin for injection 0.5g 2 CYHB2250342 Sodium Lactated Ringer Injection 500ml 3 CYHB1950801 Peritoneal Dialysis Solution (Lactate - G2.5% ) 2000
Slide 47: Production approvals to submit (update: Aug 2023)
Production approvals to submit (update: 11 Aug 2023) 即将上报的产品（2022年） To submit soon ◆ 15 types of bulk pharmaceuticals ◆ 19 types of liquid preparations with 21 specifications ◆ 11 types of oral preparations with 15 specifications SSYSSY Group Limited Group • 47 Limited • 47
Slide 48: Major projects of innovative drug development
Major projects of innovative drug development 创新药的研发策略 Type I New Drug （a）NP-01：Type I new drug for gastric cancer, expected to complete phase I clinical trial by Nov 2023, start phase II clinical trial in Dec 2023 （b）ADN-9： Anti-hepatic fibrosis type I new drug, phase I clinical trial expected to s
Slide 49: Strong External R&D and Industrialization Support/Cooperation
Strong External R&D and Industrialization Support/Cooperation ◆ Collaborative R&D of ◆ Undergraduate and Chinese Shenyang postgraduate Type I New Drugs Pharmaceutical Pharmaceutical internship base ◆ Technological R&D of University University ◆ Professional master's training Type II New Drugs ◆ Coll
Slide 50: Development Strategies
PART 04 Development Strategies ➢ Fields for development ➢ Production chains ➢ Bioprocessing films ➢ Advanced preparations ➢ Intelligent production
Slide 51: Development Strategies
Fields for development Generic Drugs：Increase R&D continuously; focus on high-end bulk drugs; integrate specialized bulk drug + preparations Innovative Drugs：Clinical trials and commercialization to proceed on schedule；plan on drug development for children and elderly Bioprocessing films Production
Slide 52: Prospects for development (2nd half of 2023)
Prospects for development (2nd half of 2023) IV：Maintain market leading position; increase proportion of therapeutic and soft bags; potential for higher profits and margins Ampoule：Continuously enrich in varieties and increase capacity utilization; develop key products with market potential Bulk pha
Slide 53: Company Contacts
Company Contacts Direct line： +852-2688 0869 Wang Xianjun +86-14716028769 （Senior Consultant） Meng Guo +86-13933073928 （Executive Director） mengguo@ssygroup.com.hk Henry Chow +852-9721 2670 （Executive Director & CFO） henrychow@ssygroup.com.hk Isabella Wang +86-13801231199 （Wechat） （Deputy General Ma