Shandong Weigao Group Medical Polymer Co. Ltd. Class H · HKEX:1066
Shandong Weigao Group Medical Polymer Co. Ltd. Class H — FY2020 Earnings Presentation
22 slides from Shandong Weigao Group Medical Polymer Co. Ltd. Class H's earnings presentation, March 2021
Slide 1: Investor Presentation: 2020 Annual Results
CONSCIENCE | INTEGRITY | LOYALTY The Leading Total Solutions Provider in the PRC Medical Devices Sector Investor Presentation 2020 Annual Results March 2021 0
Slide 2: Business Update
Business Update Revenues continued to grow: For the year ended 31 December 2020, we continued to record revenue growth despite the impact of COVID-19, with revenues increasing 9.3% y-o-y to RMB11,345m. • In 2020, because of the decline in hospital visits due to COVID-19, various business sectors wer
Slide 3: Social Responsibility, Strategy and Enormous Effort in Counteracting COVID-19
Social Responsibility, Strategy and Enormous Effort in Counteracting COVID-19 Our work with COVID-19 Our strategy to combat COVID-19 • Since the outbreak of COVID-19 as early as December 2019, the pandemic • Despite the extended impact of COVID-19, our diversification has caused an unprecedented imp
Slide 4: Table of contents
Table of contents Section 1 FY2020 Financial Results 4 Section 2 Operational Highlights 11 Section 3 Strategic Outlook 15 Appendix A Historical Reconciliation of Net Profit 19 3
Slide 5: FY2020 Financial Results
Section 1 FY2020 Financial Results Notes: In 2020, Weigao had a business combination under the same control, the consolidated financial statements of FY2019 have been restated accordingly.
Slide 6: Results Summary
Results Summary Net profit attributable to Revenue Gross profit1 owners of the Company1 9.3% 0.9% 5.3% y-o-y growth y-o-y decline y-o-y growth 11,345 2,030 6,514 1,928 6,457 10,384 2019 2020 2019 2020 2019 2020 RMBm FY2019 FY2020 Growth (%) RMBm FY2019 FY2020 Growth (%) RMBm FY2019 FY2020 Growth (%)
Slide 7: Key Financial Figures
Key Financial Figures Revenue (RMB million) Gross profit1 (RMB million) Margin % 62.2% 62.8% 56.9% 11,345 10,384 8,809 6,514 6,457 5,475 2018 2019 2020 2018 2019 2020 EBITDA1 (RMB million) Net profit attributable to owners of the Company1,2 (RMB million) Margin % Margin % 31.5% 31.4% 29.3% 18.7% 19.
Slide 8: Revenue Breakdown By Products
Revenue Breakdown By Products Revenue Breakdown FY2020 FY2019 % of sales % of sales Clinical Care Clinical Care 41.0% 37.6% Wound Management Wound Management 3.6% 3.1% Anesthesia and Surgery 1.7% Anesthesia and Surgery 1.4% Medical Testing 2.4% Medical Testing 1.8% Other Consumables 5.9% Other Consu
Slide 9: A Track Record of Sustainable and Steady Growth
A Track Record of Sustainable and Steady Growth Turnover and margin evolution since IPO FY2020, we have continued to further upgrade our product mix and develop higher value-add products, which has allowed us to continue to expand our margin profile while growing our business. Our product mix change
Slide 10: Geographic Information
Geographic Information Geographic breakdown FY2020 FY2019 % of sales % of sales 中国 PRC 80.5% PRC 81.9% 美国 States United 8.1% United States 8.8% 欧洲，中东及非洲 4.3% EMEA EMEA 4.1% 其他 Districts Other 7.2% Other Districts 5.1% Segmental revenues (RMBm) % of revenues FY2020 FY2019 % Change FY2020 FY2019 PRC 9
Slide 11: Other Financial Figures
Other Financial Figures Other financial figures FY2020 FY2019 Inventory turnover (days)1 101 days 111 days Working capital Accounts receivable (days)1 135 days 128 days Accounts payable (days)1 81 days 68 days Debt / LTM EBITDA (x) 1.3x 1.7x Net debt / LTM EBITDA (x) _ 0.4x Leverage Interest coverag
Slide 12: Operational Highlights
Section 2 Operational Highlights
Slide 13: Nationwide Sales Network
Nationwide Sales Network Distribution Network in China We have established an extensive sales network comprising of 37 sales offices, 36 customer service centers and 2,616 sales representatives across 238 cities in China Number of existing clients in China and corresponding coverage ratios (as of 31
Slide 14: Product portfolio
Product portfolio Product development Number of products as of 31 December 2020 China Overseas With product registration certificates 531 584 Under application for product registration certificates 20 91 Patented products 538 162 Under patented application 111 8 13
Slide 15: Corporate Structure
Corporate Structure Weigao Holdings 48.8% 1.0% Share Award Scheme 50.2% Public Float & Management Weigao (stock code: HK-1066) Weigao (stock code: 1066-HK) 100% Weigao Weigao Argon Medical 100% 80.5% 89.8% 95.9% Purui Medical 28.1% Weigao Blood Medical Device Orthopaedic (US) • Clinical Care • Wego
Slide 16: Strategic Outlook
WEGOM ES Section 3 Strategic Outlook
Slide 17: Corporate Milestones
Corporate Milestones • Weigao was founded, with • Announced the its business • Weigao transferred • Entered the acquisition of focusing on from the GEM to the hemodialysis Argon, a leading manufacturing main board of HKEX • Selected as one of industry by intervention disposable • Established its int
Slide 18: Management Vision
Management Vision Innovation Strategy • Continuous optimization of product mix through product upgrades, innovation and import substitution • Continuous upgrades in manufacturing facilities, automation and engineering technologies to ensure we produce the best-in-class products for our customers • K
Slide 19: Growth Initiatives
Growth Initiatives Growth Strategies Benefiting from the continuous expansion of the global medical industry, Weigao plans to build a platform company and provide systematic solutions to accelerate future growth Opportunistic Acquisitions Product Upgrades and Diversification 06 01 • Replicating the
Slide 20: Historical Reconciliation of Net Profit
Appendix A Historical Reconciliation of Net Profit
Slide 21: Historical Reconciliation of Net Profit
Historical Reconciliation of Net Profit 12 months ended 12 months ended Change 31 Dec 2019 31 Dec 2020 (%) RMB'000 RMB'000 Profit for the year 1,925,233 2,150,391 11.7% Less: Non-controlling interest 75,297 120,254 59.7% Profit for the year attributable to owners of the Company 1,849,936 2,030,137 9
Slide 22: Disclaimer
Disclaimer This document does not constitute, or form part of any offer for subscription or sale of, or solicitation of any offer to subscribe for or sale of any securities of Shandong Weigao Group Medical Polymer Company Limited ("Weigao Group"), nor shall it be construed as calculated to invite an
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