China Sxt Pharmaceuticals, Inc. · NASDAQ:SXTC
China Sxt Pharmaceuticals — IPO Roadshow (June 2018)
32 slides from China Sxt Pharmaceuticals's IPO roadshow presentation, Jun 7, 2018
Slide 1: China SXT Pharmaceuticals Investor Presentation June 2018
CHINA SXT PHARMACEUTICALS, INC. Investor Presentation June 2018 1 Filed Pursuant to Rule 433 Issuer Free Writing Prospectus Dated June 7, 2018 (To Preliminary Prospectus dated May 7, 2018) Registration Statement No. 333 - 221899
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation includes statements that are, or may be deemed, "forward - looking statements." In some cases these forward - look ing statements can be identified by the use of forward - looking terminology, including the terms "believes," "estimates," "anticipate s," ex
Slide 3: Free Writing Prospectus Statement
This presentation highlights basic information about us and the offering. Because it is a summary, it does not contain all of th e information that you should consider before investing. We have filed a Registration Statement (including a prospectus) with the SEC for the offering to which this presen
Slide 4: Table of Content
Table of Content 1 2 3 4 5 6 IPO Summary Company Introduction Business Overview Industry Analysis Investment Highlights and Valuation Financials 4
Slide 5: IPO Summary
IPO Summary Issuer China SXT Pharmaceuticals, Inc . Security Ordinary shares Ticker NasdaqCM : SXTC Pre - IPO Shares Outstanding 20 , 000 , 000 Number of Shares Offered 2 , 500 , 000 ~ 4 , 125 , 000 (including over - subscription of up to 375 , 000 ) Post - IPO Shares Outstanding 22 , 500 , 000 ~ 24
Slide 6: IPO Service Providers
IPO Service Providers Investor Relations Underwriter Auditor Underwriter Counsel Issuer Counsel 6
Slide 7: Company Overview
Company Overview 2005 1739 460 o Over 13 years of operating history since 2005 o Recognized brand (“SuXuanTang”, or “ 苏轩堂 ”) in Eastern China with over 270 years of history since 1739 o Over 460 TCMP products (including 13 Advanced TCMPs, 20 Fine TCMPs and 427 Regular TCMPs Based in Taizhou City, Ji
Slide 8: Corporate Structure
Corporate Structure 2005 2017 June: • Jiangsu Suxuantang Pharmaceutical Co., Ltd (“Taizhou Suxuantang”) incorporated July: • China SXT Pharmaceuticals, Inc. incorporated in the British Virgin Islands • China SXT Group Limited (“SXT HK”) incorporated in Hong Kong October: • Taizhou Suxuantang Biotech
Slide 9: Management
Management Feng Zhou Chairman & CEO • CEO and director since July 2017 • CEO of Suxuantang, our VIE Entity, from May 2017 to February 2018 • Associate manager of Suxuantang f rom January 2015 to May 2017 • Graduated from Logistical Engineering University of PLA and majored in Business Administration
Slide 10: Board of Directors
Board of Directors Wenwei Fan Independent Director • Will be our independent director upon closing of this offering • Partner of a Chinese Certified Public Accounting firm, Beijing Huashen Accounting Firm • Worked at Shiyong Zhonghe Accounting firm, which was acquired by PWC in 2000 • Certified Publ
Slide 11: Brand
Brand • The “SuXuanTang” or “ 苏轩堂” brand dates back to 1739 • Over 270 years of brand history, being well - recognized in Eastern China 11
Slide 12: Product Overview
Product Overview Regular TCMP Products o Manufacture 426 Regular TCMP products listed in China Pharmacopoeia (version 2015) Part I for hospitals and drug stores for the treatment of various diseases or as a dietary supplement Advanced TCMP Products o Highest quality of TCMP o Require specialized equ
Slide 13: Products: Fine TCMPs
Products: Fine TCMPs o Produce 20 Fine TCMP products for drug stores and hospitals in China o Manufactured by hand with only high - quality authentic ingredients derived from their regions of origin 13
Slide 14: Products: Regular TCMPs
Products: Regular TCMPs o Manufacture 426 Regular TCMP products listed in China Pharmacopoeia (version 2015) Part I for hospitals and drug stores for the treatment of various diseases or as a dietary supplement o Sell directly to hospitals o Diverse portfolio of products and new product pipelines in
Slide 15: Products: Advanced TCMPs
Products: Advanced TCMPs o Highest quality of TCMP o Require specialized equipment to manufacture o Involves more manufacturing steps to produce than other products o 2 types of products: o Directly - Oral TCMP o After - Soaking - Oral TCMP o Novel Advanced TCMP recently cataloged on Pharmaceutical
Slide 16: Major Products
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Slide 17: Product Pipeline
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Slide 18: Production and Facilities
Production and Facilities GMP - certified facilities Located in Taizhou City • 1,200 square meters for regular TCMP production • 450 square meters for fine TCMP production • 240 square meters for Directly - Oral TCMP and After - Soaking - Oral TCMP production • 250 square meters for TCMP raw materia
Slide 19: Customers and Suppliers
Customers and Suppliers Suppliers • Long - term relationships with 5 major suppliers in Bozhou city of Anhui province in China • Other major suppliers in Anhui, Qinghai, Gansu and Yunnan Province Customers • Major customers are hospitals, especially TCM hospitals primarily in the Jiangsu and Hubei p
Slide 20: R&D
R&D o Research and developments efforts are led by our CSO/COO Dr. Jingzhen Deng o 14 patent applications have been submitted, 8 of which have entered into the substantive examination stage o Received 3 awards on the research and development of Directly - Oral TCMP and After - Soaking - Oral TCMP pr
Slide 21: Patents Application
Patents Application 21 *SIPO refers to the State Intellectual Property Office of China
Slide 22: Honors
Honors Taizhou Well - Known Trademark Jiangsu Private Science and Technology Enterprise Talent Introduction Enterprise Certificate of Taizhou Famous Products Number One Outstanding R&D Article Award Directly - oral and After - soaking - oral TCMPs 2017 Innovation Enterprise Directly - oral and After
Slide 23: Industry Overview: Chinese TCMP Market Overview
Industry Overview Chinese TCMP Market Overview According to China’s Ministry of Industry and Information Technology’s 2016 Pharmaceutical Industry GDP Growth Report: • Major companies in the pharmaceutical industry generated total revenue of $433.36 billion in 2016, representing an increase o f 9 .9
Slide 24: Competitive Strength
Competitive Strength Recognized Brand Name o “Suxuangtang”( 苏轩堂 ), which has over 270 years of history, is a famous TCM brand in Eastern China o Our Fine and Regular TCMP products have been in pharmaceutical markets such as hospitals and drug stores for more than a decade, receiving consistent posit
Slide 25: Growth Strategy
Growth Strategy Increase National Recognition • Plan to promote the efficacy and safety profiles of all of our advanced TCMP products to physicians at hospitals and clinics through the efforts of our sales force, independent distributors and educational physician conferences and seminars Introduce A
Slide 26: Investment Highlights
Investment Highlights 1 Innovative TCMP manufacturer with capabilities in research, development, manufacturing, marketing and sales 2 The TCMP market is one of the fastest growing segments in the pharmaceuticals industry in China, benefitting from favorable government policies and increasing awarene
Slide 27: Peer Valuation
Peer Valuation Price Mkt Cap EV BVPS P/B Company Name Ticker 5/22/18 ($M) 5/22/18 (MRQ) TTM 2017E 2018E TTM 2017E 2018E TTM 2017E 2018E TTM 2017E 2018E (MRQ) China SXT Pharmaceuticals, Inc. SXTC 4.00 $97 $91 $0.76 0.07 $0.07 NA 57.9x 57.9x NA $6.7 $6.7 NA 13.5x 13.5x NA 5.3x China Jo-Jo Drugstores,
Slide 28: Financial Highlights
3,719 4,882 3,730 5,587 21.4% 47.4% 45.4% 46.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 0 1,000 2,000 3,000 4,000 5,000 6,000 FY16 FY17 9MFY17 9MFY18 Financial Highlights $5.6 Million ▪ Revenue increased by 32% YoY to $4.9 million in FY17 ▪ Gross margin increased by 26% to
Slide 29: Income Statement
Income Statement (US$ thousands, except per share data) FY16 FY17 9M FY17 9M FY18 Revenue - third parties 3,63 5 4,150 3,3697 4,36 1 Revenue - related parties 84 73 2 36 1 1,22 6 Total revenues 3,71 9 4,88 2 3,7 30 5,58 7 Cost of revenues (2,92 5 ) (2,5 70 ) (2,03 7 ) (2,997) Gross profit 79 4 2,312
Slide 30: Balance Sheet
Balance Sheet (US$ thousands) As of 3/31, 2016 As of 3/31, 2017 As of 12/31, 2017 Cash and cash equivalents 11 6 6 241 Restricted cash - - 40 Notes receivable - - 278 Accounts receivable 1,945 2,74 2 2,46 6 Inventories 1,35 3 89 1 1,246 Advance to suppliers 36 6 12 8 205 Amounts due from related par
Slide 31: Statement of Cash Flows
Statement of Cash Flows (US$ thousands) FY16 FY17 9M FY18 Net income 14 2 1,185 1,00 6 Depreciation of PPE 87 94 95 Amortization of intangible assets 2 5 4 Loss on disposal of PPE 1 1 - - Restricted cash - - (3 9 ) Notes receivable - - (2 70 ) Accounts receivable (1,027) (94 3 ) 42 5 Inventories (57
Slide 32: Thank You
Thank You Alex Shi , CFO +86 139 5110 0456 IR@sxtchina.com www.sxtchina.com