Ssy Group Limited · HKEX:2005
Ssy — FY2019 Earnings Presentation
28 slides from Ssy's earnings presentation, Mar 30, 2020
Slide 1: 2019 Results Analysts Meeting
2019 RESULTS ANALYSTS MEETING Updated on 30 March 2020 Copyright ©® 2016 Copyright 2019 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 Increase/ （HK$'000） 2019 2018 (decrease) Revenue 4,635,675 4,180,788 10.9% Gross Profit 2,876,833 2,606,373 10.4% Gross Profit Margin 62.1% 62.3% (0.2%pt) EBITDA 1,668,004 1,397,436 19.4% EBITDA Margin 36.0% 33.4% 2.6%pt Net Profit 1,136,101 911,774 24.6% Net Profit Margin 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, Pharmaceutical Co., Ltd. Oral formulations, etc. 41% (No.4 Pharma) 59% 75% 100% 71% Jiangsu Best New Hebei Hanlin Hebei Guolong Hebei Guangxiang Other Medical Material Biotechnology Pharmaceutical
Slide 7: Sales Breakdown by Product (2019)
Sales Breakdown by Product (2019) Non-PVC soft bag infusion solution Upright soft bag infusion solution 18.6% 9.6% 8.4% PP plastic bottle 13.7% infusion solution 7.9% Glass bottle infusion solution 41.8% 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 in PRC
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 / Year 2017 % change 2018 % change 2019 Non-PVC Soft Bag 650M 80M/12% 730M 20M/3% 750M (Note) Uprigh
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 1,000,000 955,051 922,568 858,789 Non-PVC Soft Bag 813,628 800,000 Upright Soft Bag 600,000 422,733 438,528 PP Pla
Slide 13: I.V. Infusion – 2019 Revenue by Packaging
Competitive Advantages Largest Production Capacity on Single Factory Basis in PRC Brings “Economy of Scale” in Production I.V. Infusion – 2019 Revenue By Packaging Average Selling Revenue % of IV Price (ASP) GP% (HK$'000) Revenue (HK$) Non-PVC Soft Bag 1,939,661 50.0% 3.74 72.0% Upright Soft Bag 633
Slide 14: I.V. Infusion – 2019 Revenue by Pharmaceutical Products
Competitive Advantages Largest Production Capacity on Single Factory Basis in PRC Brings “Economy of Scale” in Production I.V. Infusion – 2019 Revenue By Pharmaceutical Average Selling Products Revenue % of IV Price (ASP) GP% (HK$'000) Revenue (HK$) Basic Infusions 2,297,343 59.3% 2.27 65.0% 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 2017 2018 2019 Non-PVC Soft Bag Infusion 68% 70% 72% Upright Soft Bag Infusion 69% 73% 71% PP Bottle Infusion 43% 50% 49% Glass Bottle Infusion 52% 63% 61% Sub-total of I.V
Slide 19: Future Outlook – Key products: Therapeutical Infusion
Competitive Advantages Future Outlook – Key products Therapeutical Infusion solutions ◼ Moxifloxacin Hydrochloride Sodium Chloride Injection Revenue of HK$165million in 2019, a y-o-y increase of 80% ◼ Peritoneal dialysis solution Obtained approval for production in 2019 SSY Group Limited • 19
Slide 20: Future Outlook – Key products: Ampoule products
Competitive Advantages Future Outlook – Key products Ampoule products ◼ Revenue of HK$392million in 2019, a y-o-y increase of 208% ◼ Major products include Betahistine, Ambroxol and Doxofylline SSY Group Limited • 20
Slide 21: Future Outlook – Bulk pharmaceuticals
Competitive Advantages Future Outlook – Key products Bulk pharmaceuticals (Hebei Guangxiang) ◼ Locate at Bohai new district in Cangzhou, Hebei Province ◼ Project completed in 2019 and mass production began in October ◼ Mainly produce caffeine, metronidazole, nifedipine, theophylline, aminophylline,
Slide 22: Future Outlook – Research and Development 2019
Competitive Advantages Future Outlook – Research and Development Year 2019 ◼ Submitted review of a Type 1 new drug NP-01 to the China Center for Drug Evaluation of National Medical Products Administration, the first ever submission of innovative drugs by the Company, demonstrating advancement from “
Slide 23: Future Outlook – Prospects for R&D 2020
Competitive Advantages Future Outlook – Prospects for R&D Year 2020 ◼ To maintain leading position in development within the IV industry, complete research works for consistency evaluation of the major types of IV and optimize products mix ◼ To create a new growth pole of the solid preparation produ
Slide 24: Shareholding Structure
Shareholding Structure SSY Group Limited • 24
Slide 25: Shareholding Structure
Shareholding Structure Updated as at 30 March 2020 No. of issued shares 3,032,325,385 Sichuan Kelun China Pharmaceutical Others Pharmaceutical Co., Ltd. Co., Ltd. and Mr. Qu Jiguang 20.0 32.7% 47.3% SSY Group Limited (Stock Code: 2005.HK) 100% 41% Shijiazhuang No.4 Pharmaceutical Co., Ltd. 59% 100%
Slide 26: Financial Highlights
Financial Highlights SSY Group Limited • 26
Slide 27: Financial Highlights
Financial Highlights Increase/ As at 31 Dec 2019 As at 31 Dec 2018 (Decrease) （HK$'000） Cash and cash equivalent 817,429 902,062 (84,633) Bank borrowings 1,695,857 1,494,502 201,355 Net Asset Value 5,081,602 4,378,246 703,356 Net Gearing Ratio 15.0% 12.3% 2.7%pt Current Ratio 2.13 2.22 (0.09) Invent
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