Universe Pharmaceuticals Inc · NASDAQ:UPC
Universe Pharmaceuticals — IPO Roadshow (September 2020)
25 slides from Universe Pharmaceuticals's IPO roadshow presentation, Sep 23, 2020
Slide 1: Free Writing Prospectus
Universe Pharmaceuticals INC Free Writing Prospectus This free writing prospectus relates to the proposed public offering of ordinary shares of Universe Pharmaceuticals INC (the “Company”) that is being registered on a Registration Statement on Form F-1 (No. 333-248067) (the “Registration Statement”
Slide 2: Investor Presentation September 2020
Universe Pharmaceuticals I NC (Nasdaq Proposed Ticker: UPC) Investor Presentation September 2020 1 SEC File Number 333 - 248067
Slide 3: Free writing prospectus notice
This free writing prospectus relates to the proposed public offering of ordinary shares (“Ordinary Shares”) of Universe Pharmaceuticals INC (“we”, “us”, or “our”) and should be read together with the Registration Statement we filed with the Securities and Exchange Commission (the “SEC”) for the offe
Slide 4: Forward-looking statements
This prospectus contains forward - looking statements that reflect our current expectations and views of future events, all of which are subject to risks and uncertainties . Forward - looking statements give our current expectations or forecasts of future events . You can identify these statements b
Slide 5: Offering summary
Issuer Universe Pharmaceuticals INC Offering Type Initial Public Offering Proposed Listing/Symbol Nasdaq Capital Market – “UPC” (Pending Nasdaq Approval) Ordinary Shares offered 5 million Ordinary Shares Offering Price $5.00 - $7.00 Gross Proceeds $25 - 35 million (assuming no exercise of over - all
Slide 6: Investment highlights
Functional products to address chronic diseases (Page 8 - 9) Vertical integration of business value chain (Page 14) Stable and profitable financial performance (Page 19 - 21) With a broad market coverage and a good consumer base (Page 11) Recognized manufacturer of TCMD products in China’s rapidly g
Slide 7: Fiscal year 2019 summary
Fiscal year 2019 Summary Corporate History 22 Years Market Coverage 249 cities ( 30 Provinces) Revenue US $ 33 . 2 Million Gross Profit(Margin) US $ 13 . 4 Million ( 40 . 3 % ) Net Income(Margin) US $ 7 . 5 Million ( 22 . 7 % ) Universe Pharmaceuticals INC is a Chinese manufacturer of medicinal prod
Slide 8: Corporate structure and pre/post-IPO ownership
Pre - IPO%/Post - IPO% 5.00%/3.81% 8.3%/6.32% 78.00%/59.43% 8.70%/6.63% Universe Pharmaceuticals INC “ Universe INC ” Cayman Islands Universe Pharmaceuticals Group (International) Limited "Universe HK" HongKong 100% 100% 100% offshore onshore Sununion Holding Group Limited British Virgin Islands Jia
Slide 9: Functional products for chronic diseases
* T reatment and relief for common chronic health conditions in the elderly designed to achieve physical wellness and longevity Guben Yanling Pill Shenrong Weisheng Pill Quanlu Pill Wuzi Yanzong Oral Liquid Yangxue Danggui Syrup Fengshitong Medicinal Liquor Shiquan Dabu Medicinal Liquor Fengtong Med
Slide 10: Chronic condition treatment products and uses
Category Product Name Intended Uses Chronic Condition Treatments Guben Yanling Pill To relieve fatigue, palpitation, low back pain, and generalized weakness and soreness. Shenrong Weisheng Pill To relieve fatigue, dizziness, excessive sweating, and pain in the waist and the knees. Quanlu Pill To imp
Slide 11: Third-party products
Category Type Products T hird - party P roducts B iomedical D rugs L iquid glucose, prednisolone, and citicoline M edical I nstruments D rug - eluting stents, s urgical tubes and syringes Traditional Chinese Medicine Pieces (“TCMPs”) R ed sage tables, Longdan Xiegan pills, and Chinese skullcap capsu
Slide 12: Customer base and market coverage
See offering documents for further risks and disclosures. Investments may be speculative, illiquid and there is a risk of los s. Past performance is not indicative of future results. 11 Our major customers are pharmaceutical companies, hospitals, clinics and drugstore chains, primarily located in Ji
Slide 13: Competitive strengths
See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results. 12 We are a recognized manufacturer of TCMD produc
Slide 14: Growth strategies
Build a strong brand image to achieve national recognition Enhance our distribution network to increase market penetration and customer retention Integrate our internal manufacturing capacity to ensure production, supply and selection of products Further grow our research and development capacities
Slide 15: Vertical integration of the value chain
* All the information and data presented have been derived from Frost & Sullivan (Beijing) Inc., Shanghai Branch Co.’s indust ry report commissioned by us in December 2019 entitled “The PRC Chinese Patent Medicine Industry Independent Market Research”, unless otherwise noted. Upstream Downstream Min
Slide 16: Market size of Chinese patent medicine and dietary supplements
580.7 616.7 669.7 573.6 630.9 668.8 708.9 751.5 796.5 844.3 0 300 600 900 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E Market Size of Chinese Patent Medicine By Principal Business Revenue (the PRC), 2014 - 2023E Billion RMB 2014 - 2018 2019E - 2023E CAGR 2.1% 6.0% 60.9 67.0 73.1 79.3 86.6
Slide 17: Market drivers and trends
* Frost & Sullivan Report Increasing disposable income and healthcare awareness in the Chinese population Growing aging population and prevalence of chronic diseases Outbreak of COVID - 19 presents growth opportunities for TCMD products Favorable governmental policies and regulations Market Drivers
Slide 18: Management and directors
Gang Lai Chairman of the Board of Directors and Chief Executive Officer • Mr . Lai has served as the chief executive officer of Jiangxi Universe since 2004 and founded Universe Trade in 2010 . • Mr . Lai graduated from Jingdezhen Ceramic Institute with a bachelor’s degree in mechanical engineering .
Slide 19: Financial highlights
18 See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.
Slide 20: Revenue, gross profit and net income FY2018-FY2019
$28.51 $13.41 $7.60 $33.23 $13.41 $7.55 $0 $5 $10 $15 $20 $25 $30 $35 Revenue Gross Profit Net Income Millions USD Revenue, Goss Profit and Net Income FY2018 FY2019 47.0% 26.7% 40.3% 22.7% 0% 10% 20% 30% 40% 50% Gross Profit Margin Net Income Margin Goss Profit Margin & Net Income Margin FY2018 FY20
Slide 21: Revenue, gross profit and net income 1H2019-1H2020
$18.13 $7.04 $4.08 $16.39 $8.52 $5.07 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 Revenue Gross Profit Net Income Millions USD Revenue, Goss Profit and Net Income 1H2019 1H2020 38.9% 22.5% 52.0% 31.0% 0% 10% 20% 30% 40% 50% 60% Gross Profit Margin Net Income Margin Goss Profit Margin & Net Income Margin
Slide 22: Revenue breakdown
Revenue Breakdown 61.8% 38.2% FY2018 62.9% 37.1% FY2019 68.4% 31.6% 1H2019 45.4% 54.6% 1H2020 See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past perfo
Slide 23: Sales volume, selling price and customers
23.72 25.50 14.41 10.98 0 5 10 15 20 25 30 Sales Volume Millions Total Sales Volume 16.05 17.77 10.53 5.76 0 5 10 15 20 Sales Volume Millions 1.10 1.18 1.18 1.29 $0.0 $0.5 $1.0 $1.5 Average Selling Price per unit TCMD Products 7.67 7.73 3.88 5.22 0 5 10 Sales Volume Millions 1.42 1.59 1.48 1.71 $0.0
Slide 24: Use of proceeds
23 Approximately 28% for upgrading and expanding our manufacturing facilities Approximately 27% for research and development Approximately 24% for branding, advertising and marketing Approximately 21% for working capital and for other general corporate purposes See offering documents for further ris
Slide 25: Contacts
Edric Guo COO Email: yguo@univest.us Tel: +1 - 646 - 775 - 0000 Address: 375 Park Avenue. 15th Floor New York, NY 10152 USA Investor Relations Ascent Investor Relations LLC Tina Xiao President Email: tina.xiao@ascent - ir.com Tel: +1 - 917 - 609 - 0333 Address: 733 Third Avenue 16th Floor New York,
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