Slide 1: 2020 Results Analysts Meeting
2020 RESULTS ANALYSTS MEETING Updated on 30 March 2021 Copyright ©® 2016 Copyright 2020 SSY SSYGroup GroupLimited. Limited. All All rights rights reserved. reserved.
Slide 2: Disclaimer
Disclaimer 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 cla
Slide 3: Financial Highlights
Financial Highlights （HK#039;000） 2020 2019 Change Revenue 4,260,898 4,635,675 (8.1%) Gross Profit 2,708,375 2,876,833 (5.9%) Gross Profit Margin 63.6% 62.1% 1.5%pt EBITDA 1,077,222 1,668,004 (35.4%) EBITDA Margin 25.3% 36.0% (10.7%pt) Net Profit 611,971 1,136,101 (46.1%) Net Profit Margin 14.4% 24.5%
Slide 4: Agenda
Agenda 1. Business Profile 2. Competitive Advantages 3. Shareholding Structure 4. Financial Highlights SSY Group Limited • 4
Slide 5: Business Profile
Business Profile SSY Group Limited • 5
Slide 6: Group Structure
Group Structure SSY Group Limited (Stock Code: 2005.HK) 100% Shijiazhuang No.4 I.V. infusion solution, Ampoule Pharmaceutical Co., Ltd. products, Oral preparations, etc. 41% (No.4 Pharma) 59% 75% 100% 70% Jiangsu Best New Hebei Hanlin Hebei Guolong Hebei Guangxiang Other Medical Material Biotechnolo
Slide 7: Sales Breakdown by Product (2020)
Sales Breakdown by Product (2020) Non-PVC soft bag infusion solution Upright soft bag 22.8% infusion solution 5.7% PP plastic bottle 16.4% infusion solution 15.3% Glass bottle 9.7% infusion solution 30.1% Ampoule injections Other products and medical materials SSY Group Limited • 7
Slide 8: Competitive Advantages
Competitive Advantages SSY Group Limited • 8
Slide 9: Competitive Advantages
Competitive Advantages Future Outlook Among Highest Gross Profit Margin and Net Profit Margin in the Industry Best Quality in the Industry, “Shimen” as “Well-known Trademark” in PRC Highest Degree of Production Automation with Most Advanced Machineries Largest Production Capacity on Single Factory B
Slide 10: Largest Production Capacity on Single Factory Basis
Competitive Advantages Largest Production Capacity on Single Factory Basis in PRC Brings “Economy of Scale” in Production I.V. Infusion Solution Business ◼ 20 Production Lines, of which 9 for Non-PVC Soft Bag, 3 for Upright Soft Bag, 6 for PP Bottle and 2 for Glass Bottle ◼ Annual production capacit
Slide 11: I.V. Production Capacity Expansion
Competitive Advantages Largest Production Capacity on Single Factory Basis in PRC Brings “Economy of Scale” in Production I.V. Production Capacity Expansion No. 4 Pharma Year Increase / Year Increase / From 2017 % change 2018 % change Year 2019 Non-PVC Soft Bag 650M 80M/12% 730M 20M/3% 750M (Note) U
Slide 12: Summary of I.V. Infusion - Revenue
Competitive Advantages Largest Production Capacity on Single Factory Basis in PRC Brings “Economy of Scale” in Production Summary of I.V. Infusion - Revenue (HK$ '000) 1,200,000 984,610 1,000,000 955,051 858,789 Non-PVC Soft Bag 800,000 668,399 614,878 Upright Soft Bag 600,000 422,733 438,528 PP Pla
Slide 13: I.V. Infusion – 2020 Revenue by Packaging
Competitive Advantages Largest Production Capacity on Single Factory Basis in PRC Brings “Economy of Scale” in Production I.V. Infusion – 2020 Revenue By Packaging Average Selling Revenue % of IV Price (ASP) GP% (HK#039;000) Revenue (HK$) Non-PVC Soft Bag 1,283,277 48.6% 3.46 67.9% Upright Soft Bag 412
Slide 14: I.V. Infusion – 2020 Revenue by Pharmaceutical Products
Competitive Advantages Largest Production Capacity on Single Factory Basis in PRC Brings “Economy of Scale” in Production I.V. Infusion – 2020 Revenue By Pharmaceutical Average Selling Products Revenue % of IV Price (ASP) GP% (HK#039;000) Revenue (HK$) Basic Infusions 1,612,293 61.1% 2.07 60.8% Nutriti
Slide 15: Highest Degree of Production Automation
Competitive Advantages Highest Degree of Production Automation with Most Advanced Machineries Overseas Imported Key Production Machineries Production Machineries & Technique Supported by Group's Own Research & Development Team SSY Group Limited • 15
Slide 16: Full Automation from Production to Storage
Competitive Advantages Highest Degree of Production Automation with Most Advanced Machineries Full Automation from Production to Storage SSY Group Limited • 16
Slide 17: Best Quality in the Industry, Shimen Well-known Trademark
Competitive Advantages Best Quality in the Industry, “Shimen” as “Well-known Trademark” in PRC ◼ Fully automated production lines guarantee high quality products ◼ Role model of latest GMP standard certification in PRC ◼ Centralised production to ensure consistency in product quality control ◼ “Shim
Slide 18: Among Highest Gross and Net Profit Margins in the Industry
Competitive Advantages Among Highest Gross Profit Margin and Net Profit Margin in the Industry By Gross Profit Margin Packaging 2018 2019 2020 Non-PVC Soft Bag Infusion 70% 72% 68% Upright Soft Bag Infusion 73% 71% 68% PP Bottle Infusion 50% 49% 47% Glass Bottle Infusion 63% 61% 41% Sub-total of I.V
Slide 19: Future Outlook – Ampoule Injections
Competitive Advantages Future Outlook – Key products Ampoule Injections ◼ Revenue of RMB863 million in 2020, a y-o-y increase of 150% ◼ Newly built special production line for 10ml PP ampoule in 2020 ◼ Major products include Betahistine, Ambroxol and Doxofylline SSY Group Limited • 19
Slide 20: Future Outlook – Solid Preparations
Competitive Advantages Future Outlook – Key products Solid preparations ◼ Cefdinir Capsule and Prucalopride Succinate Tablet First tender won in centralised procurement in the PRC ◼ Abidol Hydrochloride Capsule Broad-spectrum antiviral drug, revenue of RMB93.4 million in 2020, a y-o-y increase of 13
Slide 21: Future Outlook – Bulk Pharmaceuticals
Competitive Advantages Future Outlook – Key products Bulk Pharmaceuticals (Hebei Guangxiang) ◼ Located at Bohai new district in Cangzhou, Hebei Province ◼ Mainly produce caffeine, metronidazole, theophylline, aminophylline, nifedipine and arbidol ◼ Plan of listing on a securities market of the PRC S
Slide 22: Future Outlook – Research and Development 2020
Competitive Advantages Future Outlook – Research and Development Year 2020 ◼ Obtained clinical trial approval of Type 1 innovative drug NP-01, the Group’s first innovative drug ◼ Obtained 6 new production approvals of Type 4 chemical drug, including Doxofylline Injection, Ropivacaine Hydrochloride I
Slide 23: Future Outlook – Prospects for R&D 2021
Competitive Advantages Future Outlook – Prospects for R&D Year 2021 ◼ To achieve recovery growth of intravenous infusion solution segment ◼ To maintain the fast growth of ampoule injection business ◼ To utilize the production capacity of bulk pharmaceuticals, improve capacity utilization and lay a s
Slide 24: Shareholding Structure
Shareholding Structure SSY Group Limited • 24
Slide 25: Shareholding Structure
Shareholding Structure Updated as at 30 March 2021 No. of issued shares 3,027,073,385 Sichuan Kelun China Pharmaceutical Others Pharmaceutical Co., Ltd. Co., Ltd. and Mr. Qu Jiguang 20.0% 34.5% 45.5% SSY Group Limited (Stock Code: 2005.HK) 100% 41% Shijiazhuang No.4 Pharmaceutical Co., Ltd. 59% 100%
Slide 26: Financial Highlights
Financial Highlights SSY Group Limited • 26
Slide 27: Financial Highlights
Financial Highlights Increase/ As at 31 Dec 2020 As at 31 Dec 2019 (Decrease) （HK#039;000） Cash and cash equivalent 1,445,905 817,429 628,476 Bank borrowings 2,427,072 1,695,857 731,215 Net Asset Value 5,915,211 5,081,602 833,609 Net Gearing Ratio 14.9% 15.0% (0.1%pt) Current Ratio 2.01 2.13 (0.12) Inv
Slide 28: Thank You!
THANK YOU! Company contacts Wang Xianjun (Executive Director) Henry Chow (CFO & Com. Sec.) Tel : 852-2688 0869 Email : wangxj@ssygroup.com.hk henrychow@ssygroup.com.hk SSY Group Limited • 28