Sihuan Pharmaceutical Holdings Group Ltd. · HKEX:460
Sihuan Pharmaceutical — FY2023 Earnings Presentation
58 slides from Sihuan Pharmaceutical's earnings presentation, March 2024
Slide 1: 2023 Annual Results Presentation
Sihuan Pharmaceutical Holdings Group Ltd. 四环医药控股集团有限公司 (incorporated in Bermuda with limited liability) （于百慕达注册成立之有限公司) Stock Code 股份代号：0460 Building China’s Leading Medical Aesthetic and Biopharmaceutical Company with Rigor and Innovation of a Pharmaceutical Company 2023 Annual Results Presentation
Slide 2: Disclaimer
Disclaimer The sole purpose of this Presentation (the “Presentation”) is to assist the recipient in deciding whether it wishes to proceed with a further investigation of Sihuan Pharmaceutical Holdings Group Ltd. (the “Company”) and it is not intended to form the basis of any decision to purchase sec
Slide 3: Promoting Sihuan Pharm's 2.0 Version in Full Speed in 2023
Promoting Sihuan Pharm’s 2.0 Version in Full Speed in 2023 Category Becoming a leading medical aesthetic and innovative pharmaceutical company with industrial upgrading and development 01 Company Overview 02 Medical Aesthetic Business Overview 03 Pharmaceutical Business Overview 04 Annual Financial
Slide 4: Building China's Leading Medical Aesthetic and Biopharmaceutical Company
Building China’s Leading Medical Aesthetic and Biopharmaceutical Company with Rigor and Innovation of a Pharmaceutical Company Adhere to the dual-wheel drive strategy of “medical aesthetic+innovative pharmaceuticals”, adhere to the transformation and upgrading to innovation, with remarkable results
Slide 5: 2023 Milestones
2023 Milestones Further implementation of strategic measures for the transformation and upgrading to "medical aesthetic+ innovative pharmaceutical" and made multiple achievements Q1 Q2 Q3 Q4 During the year Xuanzhu Biopharm Xuanzhu Biopharm Xuanzhu Biopharm Xuanzhu Biopharm Generic drugs • XZP-KM501
Slide 6: New Products Approved and Launched
New Products that Have Been Approved, and Will Be/Have Been Launched A number of new products will be launched, becoming new driving force for revenue growth Sylfirm X（Dual wave RF treatment device) • 8 modes to effectively improve and reduce skin wrinkles and treat atrophic • The world’s first FDA&
Slide 7: 40+ Medical Aesthetic Products & 60+ Innovative/Biological Drugs
40+ Medical Aesthetic Products & 60+ Innovative/Biological Drugs Accelerate upgrading from innovative pharmaceutical to bio-pharma, with multiple drugs approved for launch within this year Category Therapy Area Product Name Company Business Pre-clinical Clinical Registration Launch Botulinum toxin L
Slide 8: Investment Highlights of Sihuan Pharmaceutical
Investment Highlights of Sihuan Pharmaceutical Sufficient production China’s leading medical Strong R&D and Multiple drugs are about Rich product pipelines capacity, wide sales Stable financial position aesthetic platform registration capabilities commercialization network Building China’s leading R
Slide 9: Development Goals and Strategies
Development Goals and Strategies Focus on the two-wheel drive strategy of “innovative pharmaceutical+medical aesthetic”, accelerate the launch of innovative drugs and product iteration for generics Medical Aesthetic Innovative Medicine • Meiyan Space: Becoming China’s leading medical aesthetic • Acc
Slide 10: Meiyan Space
Sihuan Medical Aesthetic Meiyan Space Building China’s Leading Medical Aesthetic Company
Slide 11: Company Highlights
Company Highlights Meiyan Space: building leading medical aesthetic company with rigor and innovation of a pharmaceutical company Rich product pipeline covering life-cycle needs of beauty lovers Owns 40+ The only Owns 10+class III & 20+class II The exclusive distributed medical aesthetic products, C
Slide 12: Leverage on Strong R&D and BD Capabilities to Develop a Comprehensive Product Portfolio
Leverage on Strong R&D and BD Capabilities to Develop a Comprehensive Product Portfolio Owns rich product pipeline to cover full life-cycle needs of beauty lovers Business Category Product Name Pre-clinical Clinical Registration Launch Collagen complex filler (class III) Filler PLLA filler (class II
Slide 13: The 3.0 Era of Medical Aesthetic Fine-tuned Operation (I)
The 3.0 Era of Medical Aesthetic Fine-tuned Operation (I) Empowering institutional clients through diversified marketing activities, providing high-quality and efficient services and solutions, and helping institutions to enhance comprehensive service capabilities and promote product sales 20cities
Slide 14: The 3.0 Era of Medical Aesthetic Fine-tuned Operation (II)
The 3.0 Era of Medical Aesthetic Fine-tuned Operation (II) Meiyan Space adheres to the “essence of medicine”, through the dialogue and cooperation with industry KOL, from academic aspect to show the differentiated value of the product, and to create a benchmark in the medical aesthetic industry Acti
Slide 15: Professional Medical Aesthetic Sales Team and Nationwide Sales Network
Professional Medical Aesthetic Sales Team and Nationwide Sales Network Fully optimise sales strategic, successfully promote upgrading and development of 3.0 version marketing business reform 350+ city coverage 4,700+ 100% medical aesthetic top 500 institution 310+（2022） institution coverage coverage
Slide 16: Main Medical Aesthetic Products
Main Medical Aesthetic Products Letybo® High quality High effect High safety Comfort 99.5% 900KD high purity protein similar efficacy with Botox strict QC standard, patented exclusive cocktail blend, close to Botulinum toxin type A for Injection technology, safe and reliable human pH • 99.5% 900KD e
Slide 17: Pharmaceutical Business
Pharmaceutical Business Successfully transformed from a generic drug company to a biopharmaceutical company Upgrading and developing into a leading biopharmaceutical company in China at full speed
Slide 18: Pharmaceutical Business Overview
Pharmaceutical Business Overview Sped up the R&D progress, accelerating its upgrade from “Bio-tech” to Bio-pharma, with many independently developed products approved for launch within this year Generic/MCM drugs During the year, generic business has made During the year, further build the strategic
Slide 19: Generic Medicine
Pharmaceutical Segment Generic Medicine Solid“Cash Cow”
Slide 20: Leverage on the Core Capacities of Registration, Manufacture and Sales
Leverage on the Core Capacities of Registration, Manufacture and Sales, to Realize Products Launch rapidly Generic drug business Rich high-end generic and MCM Strong drug registration and High-efficiency, low-cost, full made significant progress drug pipelines government affairs capability dose form
Slide 21: 8 Core products
Main Generic Drugs 8 Core products 7 Non-PVC solid-liquid dual chamber bags, The "Cash Cow" generic drug business Included in NRDL Midazolam Oromucosal Solution achieved multiple progress Kelin’ao ® Non-PVC solid-liquid dual chamber bag Midazolam Oromucosal Solution Sufficient EBM, barriers obvious
Slide 22: Huisheng Pharm
Pharmaceutical Segment Huisheng Pharm A leading biopharmaceutical company with full product coverage in the field of diabetes and complications, aiming to become the leading platform for the whole-course management of diabetes patients
Slide 23: Huisheng Pharm Overview
Huisheng Pharm Overview Huisheng Pharm focuses on diabetes and complications that integrates R&D, manufacture and sales Innovative Target Drugs Main Cornerstone Drugs GLP-1 analogues SGLT-2 inhibitors 2nd generation 3rd generation New generation • Semaglutide Injection (T2DM, weight • Ganagliflozin
Slide 24: Rich Product Pipeline, Realizing Full Coverage in Diabetes and Complications
Rich Product Pipeline, Realizing Full Coverage in Diabetes and Complications Multiple products approved for launch, and the core drug’s R&D progress leading the industry R&D Stage NDA/ANDA Therapy area Category Sub-Category Drug Name Approval Pre-Clinical IND Phase I Phase II Phase III Evaluation Or
Slide 25: Milestones
Milestones During the year, promote the products’ R&D progress and commercialization rapidly • Insulin degludec • Semaglutide • Insulin degludec • Mecobalamin • Semaglutide and insulin aspart injection for the and liraglutide injection injection begin injection treatment of type 2 injection Phase II
Slide 26: Main Products of Huisheng Pharm
Main Products of Huisheng Pharm Innovative drugs continue to emerge Ganagliflozin Proline Tablets (Huiyoujing®） Insulin Degludec Series Semaglutide Series SGLT-2 inhibitor Insulin Degludec, Insulin Degludec/Insulin Aspart, Semaglutide injection, Class 1 Innovative drug Insulin Degludec/Liraglutide S
Slide 27: Xuanzhu Biopharm
Pharmaceutical Segment Xuanzhu Biopharm One of the Companies with the Most Comprehensive Layout for the Treatments of Breast Cancer in China, a Leading Biopharmaceutical Company in China with Diverse Internal R&D Capabilities of Innovative Drugs in Both Small Molecules and Large Biologics
Slide 28: Investment Highlights
Investment Highlights One of the companies with the most comprehensive layout for breast cancer in China, with diverse internal R&D capabilities of innovative drugs in both small molecules and large biologics Strong independent R&D capabilities and rich pipelines Excellent management team One of the
Slide 29: Milestones
Milestones Multiple products has made positive clinical progress, advancing the process of spin-off and listing on STAR Market rapidly • XZP-KM501, a HER2 • The submission of • Anaprazole Sodium • Birociclib, single drug or in • The results of the bispecific antibody the Phase II research Enteric-co
Slide 30: 25+ Drugs Under R&D, with Comprehensive Coverage of Major Targets for Breast Cancer
25+ Drugs Under R&D, with Comprehensive Coverage of Major Targets for Breast Cancer Focus on Digestion, Oncology, and NASH, sustainable and balanced short- to long-term innovative pipeline Independent Clinical trials Pre- NDA/ Category Drug Name Target Category R&D / Indications IND Approve clinical
Slide 31: Main Products of Xuanzhu Biopharm
Main Products of Xuanzhu Biopharm Anaprazole Sodium Enteric-coated Tablets （Anjiuwei®） Birociclib KM-257/KM-501 New generation PPI CDK4/6 inhibitor HER2 BsAb/HER2 BsAb ADC Overview a new generation of PPI drug, internal R&D A highly selective CDK4/6i, internal R&D for KM257 Overview HER2/HER2 BsAb,
Slide 32: Annual Financial Review
DOP ER 24 SihuanPharm TORE 2 SthuanPharm Annual Financial Review Ne —
Slide 33: 2023 Financial Review
2023 Financial Review High growth in medical aesthetic business, R&D expenses entered pivot point, driving operating profit back to profitability Revenue of medical Revenue of generic Revenue of Total Revenue Cash and cash equivalents, wealth management products, aesthetic products medicine innovati
Slide 34: The Group's operating profit turn losses into profit: RMB162 million
The Group’s operating profit turn losses into profit：a profit of RMB162 million, a reversal of performance Both revenue and profit of medical aesthetics increase, R&D started to decrease yoy, profit into pivot point RMB Million 金额:人民币百万元 RMB Million 564 181 162 92 (16) 4 (518) (676) 2022 2023 (1,400
Slide 35: Revenue of medical aesthetic increase significantly
Revenue of medical aesthetic increase significantly: at RMB449.9 million, increase 200.3% yoy The upgraded marketing strategy was effective and successfully assisted the medical aesthetic sales revenue to achieve high growth rate RMB Million Segment Revenue Percentage of Total Revenue% 6.9% 24.2% Me
Slide 36: Revenue of Generic Medicine decrease
Revenue of Generic Medicine decrease: at RMB1,398.8 million, decrease about 29.0% Part of the generic products affected by the industrial policies saw decrease in sales price and volume Segment Revenue Percentage of Total Revenue% RMB Million - 29.0% decrease 90.3% 75.2% 1970.5 15.1 ppt yoy 1398.8 G
Slide 37: R&D expenses started to decrease
R&D expenses started to decrease: at RMB577.7 million, still 41% of the revenue of medicine business Continuously investing heavily in R&D to facilitate the Group's rapid transformation and development from generic drugs to innovative drugs RMB Million 金额:人民币百万元 研发开支 937 - 38.3% 868 R&D expenses as
Slide 38: Stable financial position: Cash and cash equivalents plus wealth management products
Stable financial position: Cash and cash equivalents plus wealth management products, time deposits etc at about RMB4,610 million Cash flow from operating activities remained net cash inflow throughout the period, pay 2022 annual dividend of RMB300 million RMB Million 615 - 663 4,969 - 311 4,610 • O
Slide 39: Appendix
& COME 24 SihuanPharm Appendix 39
Slide 40: Development History
Development History • Letybo® launched and sold • Established joint venture company (“JV”) with Austria-based • PLLA gel obtained the medical device pharmaceutical company CROMA- Pharma GmbH (“Croma-Pharma”), manufacturing license approval from the NMPA, which is Meiyan Space's first 2023 expanding
Slide 41: Main Product of Medical Aesthetic: Letybo
Main Product of Medical Aesthetic Letybo®（Letybo 100U/50U） Anti-aging product: short course of treatment, quick effect, short repair period for minimally invasive wound, the fourth Botulinum toxin type A launched in China Letybo is positioned as cost-effective and high-quality, which is much higher
Slide 42: Main Product of Medical Aesthetic: Persnica
Main Product of Medical Aesthetic PersnicaTM Hyaluronate gel: good support, non-spreading displacement, uniform metabolism, long-lasting shaping, high viscosity value, high cross-linking degree and high shaping capacity One of the most popular hyaluronic acid filler brands in South Korea, can be use
Slide 43: Main Product of Medical Aesthetic: Sylfirm X
Main Product of Medical Aesthetic SYLFIRM X Dual-wave RF Treatment Device Minimal damage, short treatment time, short resumption time, safe and comfortable, instant and significant results The newest generation of dual wave RF treatment device The world’s first dual wave RF 300μm 0.3s precise therap
Slide 44: Main Product of Medical Aesthetic: Lipivage
Main Product of Medical Aesthetic Lipivage®fat harvesting system Innovative fat harvesting system, with independent and ready-to-use two-step fat harvesting, cleaning and transferal system Innovative technology improves the survival rate of fat transplantation to 80%-90% China’s body contouring mark
Slide 45: Main Product of Medical Aesthetic: PHA microspheres
Main Product of Medical Aesthetic PHA microspheres and biomanufacturing-based regenerative medical materials PHA is a natural polyester, can be used in regenerative injection products, is a good choice for light medical aesthetics as a new material Sihuan Pharmaceutical’s Meiyan Space and Bluepha to
Slide 46: Anaprazole Sodium Enteric-coated Tablets
Main Product Anaprazole Sodium Enteric-coated Tablets (Anjiuwei®) • The first and only innovative drug PPI independently developed in China. It can effectively inhibit the secretion of gastric acid and has the characteristics of fast onset, stable therapeutic effect, less individual variation, and l
Slide 47: Birociclib
Main Product Birociclib • A blockbuster drug for ABC[1] , a CDK4/6 inhibitor innovative drug that was independently developed by the company. The first and fastest follower of Abemaciclib • Monotherapy for end line treatment is effective, and can be administered continuously, can pass through the bl
Slide 48: XZP-3621
Main Product XZP-3621 • An ALK/ROS1 inhibitor, developed by the company independently, benchmarking with Lorlatinib • XZP-3621 has strong activity on the first and second generation of ALK inhibitor drug resistance; with better safety • It can cross the blood-brain barrier and is effective for tumor
Slide 49: XZP-KM257
Main Product XZP-KM257 • KM257 is a HER2 bispecific antibody (BsAb), independently developed by Xuanzhu Biopharm technology platform with independent intellectual property rights, with better molecular design, better stability and stronger anti-tumor efficacy, for HER2+ patients with high expression
Slide 50: XZP-KM501 ADC
Main Product XZP-KM501 ADC • KM501-ADC is a HER2 BsAb ADC, a modification of KM257, used for patients with HER2+ medium to low expression (such as breast cancer, gastric cancer, colorectal cancer, etc.) • The first BsAb ADC to apply for patent in China • There is no HER2 BsAb ADC was approved, KM-50
Slide 51: XZB-0004
Main Product XZB-0004 • Authorized cooperation with SignalChem, to introduce the exclusive development and commercialization rights of the drug in Greater China（Mainland China, Hong Kong, Macau and Taiwan) • An oral small molecule AXL inhibitor with high selectivity, high efficacy and low side effec
Slide 52: Ganagliflozin Proline Tablets
Main Product Ganagliflozin Proline Tablets（Huiyoujing®） • An innovative drug of SGLT-2 inhibitor for the treatment of T2DM ( Type 2 Diabetes Mellitus), independently developed by the company • A new non-insulin-dependent hypoglycemic drug, which can be used alone or in combination with other drugs,
Slide 53: Insulin Degludec Series
Main Product Insulin Degludec Injection, Insulin Degludec and Insulin Aspart Injection, Insulin Degludec and Liraglutide Injection • A new generation of long-acting insulin analogs with unique long-acting mechanism, excellent hypoglycemic effect and low risk of hypoglycemia. Combination of Insulin D
Slide 54: Semaglutide
Main Product Semaglutide • Semaglutide is a once-week GLP-1RA for the treatment of T2DM ( Type 2 Diabetes Mellitus) • Multiple advantages have been recognized, and the recommendation level of authoritative guides has been improved. GLP-1RA has the advantages of hypoglycemia, weight loss, cardiovascu
Slide 55: Kelin'ao (Cinepazide Maleate Injection)
Main Product Kelin’ao®(Cinepazide Maleate Injection) • In 2020, Kelin’ao® was the first and exclusively complete a large-scale confirmatory clinical study of Cinepazide • In 2020, new indication was approved for improving neurological symptoms, activities of daily living, and functional impairments
Slide 56: Non-PVC solid-liquid dual chamber bag series
Main Product Non-PVC solid-liquid dual chamber bag series - cephalosporin antibiotics • Beijing Ruiye (an affiliated company of Sihuan Pharm) is the first domestic company to has solid-liquid dual chamber bag drugs. • Currently, Beijing Ruiye has a total of 9 Non-PVC solid-liquid dual chamber bags w
Slide 57: Midazolam Oromucosal Solution
Main Product Midazolam Oromucosal Solution • Midazolam Oromucosal Solution, first domestic generic drug, domestic exclusive in China • The first mucosal dosage form drug developed in China for infants, children, and adolescents, used to treat acute and persistent seizures caused by high fever or epi
Slide 58: Thank you!
Thank you！ Investor Relations Dept ir.sihuanpharm.com E: ir@sihuanpharm.com 58
Sihuan Pharmaceutical Holdings Group — FY2023 Earnings Presentation on 6ix