Ssy Group Limited · HKEX:2005
Ssy — FY2022 Earnings Presentation
50 slides from Ssy's earnings presentation, Mar 28, 2023
Slide 1: 2022 Annual Results & Roadshow material
2022 Annual Results & Roadshow material Updated on 28 March 2023 Copyright ® 2022 SSY Group Limited. All rights reserved.
Slide 2: Disclaimer
免责声明 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 class of
Slide 3: Business Profile, Competitive Advantages, R&D Status and Prospects, Development Strategies
PART 01 PART 02 PART 03 PART 04 Business Competitive R&D Status and Development Profile Advantages Prospects Strategies SSY Group Limited • 3
Slide 4: Business Profile
PART 01 Business Profile ➢ Financial Highlights ➢ Revenue Overview ➢ Shareholding & ➢ R&D Overview Group Structure
Slide 5: Financial Highlights (2022)
Financial Highlights (2022) （HK$'000） 2022 2021 Change Revenue 6,434,025 5,356,763 20.1% Gross Profit 3,567,586 3,170,246 12.5% Gross Profit Margin 55.4% 59.2% (3.8%pt) EBITDA 1,741,844 1,383,315 25.9% EBITDA Margin 27.1% 25.8% 1.3%pt Net Profit 1,122,837 785,533 42.9% Net Profit Margin 17.5% 14.7%
Slide 6: Financial Highlights (2022)
Financial Highlights (2022) （HK$'000） 31 December 2022 31 December 2021 Change Cash and cash equivalent 1,667,547 1,661,736 5,811 Bank borrowings 3,207,648 3,103,195 104,453 Net Asset Value 6,545,824 6,492,708 53,116 Gearing Ratio 19.9% 18.9% 1.0%pt Current Ratio 1.82 2.04 (0.22) Inventory Turnover
Slide 7: Shareholding & Group Structure
Shareholding & Group Structure Sichuan Kelun China Pharmaceutical & Updated as at 28 March 2023 UBS Others No. of issued shares : Pharmaceutical Mr. Qu Jiguang 2,972,683,385 20.41% 36.65% 10.17% 32.77% In last 12 months, SSY have been repurchased 19.5 million shares SSY Group Limited (Stock Code: 20
Slide 8: Revenue Overview
Revenue Overview 2022 2021 By Products Revenue % of Total Revenue % of Total (HK$’000) Revenue (HK$’000) Revenue I.V. Infusion 3,510,342 54.6% 3,304,365 61.7% Bulk Pharmaceuticals 1,358,949 21.1% 533,860 10.0% Ampoule injections 978,707 15.2% 1,093,615 20.4% Solid preparations 413,908 6.4% 247,746 4
Slide 9: Revenue Breakdown by Products (2022)
Revenue Breakdown by Products (2022) 集团结构 产品销售结构（2021年一季度） Solid Preparations, Medical Non-PVC Soft Bag Materials and other products 9.1% 石药集团有限公司(股票代码：2005.HK) 27.8% Bulk Pharmaceuticals 21.1% 大输液、安瓿小水针、 口服制剂等 Upright Soft Bag 10.1% PP Plastic Bottle 13.0% Ampoule 15.2% 药用包材 化工原料(甲胺) Glass Bottle 及
Slide 10: I.V. Infusion
I.V. Infusion Sales volume increase, Optimise product mix, New types of products rapid growth In 2022, sales volume of infusion solution reached 1,580 million bottles (bags), representing an increase of 16.2% as compared to last year, further improved market share Optimise product mix, therapeutic i
Slide 11: Revenue Overview - I.V. Infusion
Revenue Overview - I.V. Infusion 大输液销售概览 Sales volume of Upright soft bag and PP Plastic bottle increased by 28.1% & 20.1% y-o-y respectively I.V. Infusion – 2022 Revenue By Packaging Average Selling Revenue % of IV GP% Price (ASP) (HK$’000) Revenue (HK$) Non-PVC Soft Bag 1,788,791 51.0% 3.74 62.5%
Slide 12: Revenue Overview - I.V. Infusion
Revenue Overview - I.V. Infusion Proportion of therapeutic infusions increased by 4.4 %pt Various products’ volume entered rapid growth period: Peritoneal Dialysis Solution (+77%), Ambroxol Hydrochloride (+169%), Moxifloxacin Hydrochloride (+314%), Ciprofloxacin Lactate (+110%) I.V. Infusion – 2022
Slide 13: Ampoule Injections
Ampoule Injections Increasingly rich in varieties, Production gradually scaled up In 2022, revenue accounted for HK$980 million, decreased by 10.5% y-o-y, mainly due to change of sales channel of Betahistine. Selling expense dropped at the same time, resulting little impact on net profit Sales volum
Slide 14: Solid Preparations
Solid Preparations Accelerated upgrade of production and sales scale In 2022, revenue accounted for HK$346 million, increased by 61.6% y-o-y National centralized procurement products：Cefaclor for Suspension, Cefdinir capsule, Prucalopride Succinate tablet and Felodipine II Sustained-release Tablets;
Slide 15: Bulk Pharmaceuticals
Bulk Pharmaceuticals First year in achieving the economies of scale In 2022, revenue of external sales accounted for HK$1,350 million, increased by 155% y-o-y Among which, sales volume of caffeine reached 5,000 tonnes, inceased by 81% y-o-y Metronidazole reached 266 tonnes (up 76% y-o-y), Nifedipine
Slide 16: Medical Materials
Medical Materials Steady operating result In 2022, revenue of external sales accounted for HK$172 million, decreased by 2.9% y-o-y Bioprocessing films annual production capacity of 20 million square meters completed Jiangsu Best New Medical Material’s shares quoted on the National Equities Exchange
Slide 17: Foreign exports
Foreign exports Exports to foreign markets in a positive trend In 2022, export market showed a trend of rebound, with export of preparations accounted for HK$149 million, increased by 78% y-o-y Added or updated 44 product registration certificates in 11 countries Currently 341 product registration c
Slide 18: Research and Development
Research and Development During 2022, a total of 37 national production approvals were obtained (increased 37% y-o-y)，including 27 for preparations and 10 for bulk pharmaceuticals Currently 43 product types with 55 specifications or regarded as passing the consistency evaluation of China During 2022
Slide 19: Product passed/deemed passed consistency evaluation
Product passed/deemed passed consistency evaluation (43 Varieties, 55 Specifications) Drug Name Specification Remark Drug Name Specification Remark Fluconazole Tablets 150mg The First Cefaclor dry suspension 0.125 Fluconazole Tablets 50mg Second Metronidazole Tablets 0.2g Doxofylline Injection 10ml:
Slide 20: Competitive Advantages
PART 02 Competitive Advantages
Slide 21: Diversified and Competitive Advantages
Competitive Advantages Preparations, Bulk I.V. Infusion Production Line . Pharmaceuticals, Medical Intelligent Manufacturing , Materials, Diversified and Largest Production Capacity on Coordinated Development Single Factory Basis in the World Numerous Prize Recognition, Numerous Specifications, . Ma
Slide 22: Diversified and Coordinated Development
Bulk Pharmaceuticals, Medical Materials, Preparations, Diversified and Coordinated Development 1 medical institute, 2 preparation, 2 bulk pharmaceutical, 1 chemical and 1 medical material production plant, forming whole-industry- chain by preparations + bulk pharmaceuticals + medical materials • 22
Slide 23: Pharmaceutical Research Institute
Diversified and Coordinated Development - Pharmaceutical Research Institute It covers an area of 85 acres and has advanced equipment such as high-efficiency/ultra-high- performance liquid chromatographs, gas chromatographs, Fourier infrared spectrometers, and the leading hardware level in the count
Slide 24: I.V. Infusion production base
Diversified and Coordinated Development – I.V. Infusion production base Shijiazhuang No.4 Pharmaceutical Major products: Non-PVC Soft Bag IV, Upright Soft Bag IV, PP Plastic Bottle IV, Glass Bottle IV, PP Ampoule Injections, Tablets, Capsule and Granules SSY Group Limited • 24
Slide 25: Varieties passed consistency evaluation in first 3
Varieties passed/deemed passed consistency evaluation in first 3 Serial Drug Name Specification Remark 1 Fluconazole Tablets 150mg The First 2 Doxofylline Injection 10ml：0.1g The First 3 Ropivacaine Hydrochloride Injection 10ml：100mg The First 4 Ciprofloxacin Lactate Sodium Chloride Injection 100ml
Slide 26: Bulk Pharmaceuticals Production Base
Diversified and Coordinated Development – Bulk Pharmaceuticals Production Base Hebei Guangxiang Pharmaceutical Cangzhou Lingang Youyi Chemical Major products: Caffeine Acquisition completed in March 2022 Theophylline , Aminophylline Series Major product: Methylamine (API for Metronidazole, Benzoyl c
Slide 27: Specialised Bulk Pharmaceuticals
Specialised Bulk Pharmaceuticals Bulk Pharmaceutials with status A owned by Hebei Guangxiang Pharmaceutical (18) Serial Registration No. Drug Name Status 1 Y20200001269 Epalrestat A 2 Y20190007857 Aminophylline A 3 Y20190007856 Theophylline A 4 Y20190006345 Niacin A 5 Y20190002961 Benzoyl metronidaz
Slide 28: Specialised Bulk Pharmaceuticals
Specialised Bulk Pharmaceuticals Bulk Pharmaceutials with status A owned by Hebei Guolong Pharmaceutical (17) Serial Registration No. Drug Name Status 1 Y20200001123 Cinacalcet hydrochloride A 2 Y20200000767 ipratropium bromide A 3 Y20200000466 Dexmedetomidine Hydrochloride A 4 Y20190001004 blonanse
Slide 29: Medical Materials Production Base
Diversified and Coordinated Development – Medical Materials Production Base Jiangsu Best New Medical Material Major products: Bioprocessing film series Multi-layer co-extrusion infusion films Rubber stopper series Gasket series SSY Group Limited • 29
Slide 30: Biotechnology and product development
Diversified and Coordinated Development – Biotechnology and product development Hebei Hanlin Technology Major products： Medical Devices (Medical Beauty) In vitro diagnostic reagents Disinfectants SSY Group Limited • 30
Slide 31: Numerous Varieties, Complete Dosage Form, Wide coverage
Numerous Varieties, Complete Dosage Form, Wide coverage No. of Production approvals: 371 No. of Preparations approved: 268 including including 268 Preparations, 34 bulk pharmaceuticals 163 in Essential Drug List, 55 passed consistency 41 medical materials and 28 other products evaluation, 8 in Natio
Slide 32: Numerous Varieties, Complete Dosage Form, Wide coverage
Numerous Varieties, Complete Dosage Form, Wide coverage Ampoule Injections I.V. Infusion Solid preparations • Packaging︰Non-PVC soft bag, upright soft • Betahistine volume continued to grow rapidly • National Centralised procurement： bag, PP bottle, glass bottle • National Centralised procurement：Am
Slide 33: Market share increases for products in national centralised procurement
Market share increases for products in national centralised procurement National centralised Market share in PRC procurement batch Products being selected government hospitals （Time） 2020 2021 1H of 2022 Prucalopride Succinate tablet 1.09% 6.59% 9.26% 3rd batch（Aug 2020） Cefdinir capsule* 2.30% 32.6
Slide 34: Largest Production Capacity on Single Factory Basis in PRC
I.V. Infusion Production Line Intelligent Manufacturing, Largest Production Capacity on Single Factory Basis in PRC I.V. Production Capacity Expansion No.4 Pharma Year Increase / Year Increase / Year Increase / Year 2019 % change 2021 % change 2022 % change 2023 Non-PVC Soft Bag 750M - 750M - 750M -
Slide 35: Awards and recognitions
Awards and recognitions ✓ 3 entities of the Group in bulk pharmaceuticals recognised as High and New Technology Enterprises as well as provincial level “Specialised and New” small and medium-size enterprises ✓ Selected in the 2022 list of outstanding smart manufacturing scenarios ✓ National Intellec
Slide 36: R&D Status and Prospects
PART 03 R&D Status and Prospects ➢ Strategy in generic drugs R&D ➢ Products for approval application ➢ Specialised drug platform ➢ Key innovative drug R&D projects ➢ Products awaiting approval ➢ Strong external R&D support
Slide 37: Strategy in generic drugs R&D
Strategy in generic drugs R&D Bulk pharmaceuticals Solid preparations ➢ Products requires difficult process/ special process ➢ Focus on products with large market demand and products, self-owned patented technology products urgent clinical needs ➢ Forming Product series ➢ Bulk pharmaceuticals + prep
Slide 38: Strategy in generic drugs R&D (Key therapeutic fields)
Strategy in generic drugs R&D (Key therapeutic fields) Respiratory system: injections/inhalation/oral Cardiovascular system: oral/injection Stimulates lysosomal release from mucus-secreting cells Hypertension (single prescription, compound (bromhexine); Phosphodiesterase (PDE) Inhibitors preparation
Slide 39: Bulk Pharmaceuticals under review (Hebei Guangxiang)
Bulk Pharmaceuticals under review (Hebei Guangxiang) Expected Registration No. Drug Name Status approval Y20210000927 Doxofylline A Approved Y20210000931 Tinidazole A Approved Y20210000930 Theobromine A Approved Y20210000678 Tedizolid Phosphate I 2023.04 Y20210001167 Uradil I 2023.04 Y20210001168 Ur
Slide 40: Bulk Pharmaceuticals under review (Hebei Guolong)
Bulk Pharmaceuticals under review (Hebei Guolong) Expected Registration No. Drug Name Status approval Y20190000687 L-malic acid I 2023.06 Y20210000821 Stippentol I 2023.08 Y20220000356 Nicorandil I 2023.11 Y20220000426 etomidate I 2023.12 Y20220000427 Trexagliptin succinate I 2023.12 Y20220000598 ci
Slide 41: Type 3 Preparations under review
Type 3 Preparations under review Expected to be approved by the end of 2023 Serial Acceptance No. Drug Name Specification 1 CYHS2101884 Terbutaline Sulfate Injection 1ml:0.5mg 2 CYHS2102018 Lipoic Acid Injection 24ml:600mg 3 CYHS2101827 Ornidazole Injection 3ml:0.5g 4 CYHS2101828 Ornidazole Injectio
Slide 42: Type 4 Preparations under review
Type 4 Preparations under review Expected to be approved by the end of 2023 Serial Acceptance No. Drug Name Specification 1 CYHS2101193 Lacosamide Injection 20ml : 200mg 2 CYHS2101621 Felodipine sustained release tablets 5mg 3 CYHS2101759 Lurasidone Hydrochloride Tablets 40mg 4 CYHS2102124 Argatroba
Slide 43: Preparations under consistency evaluation review
Preparations under consistency evaluation review Expected to be approved by the end of 2023 Serial Acceptance No. Drug Name Specification 1 CYHB2250308 Azithromycin for injection 0.5g 2 CYHB2250342 Sodium Lactated Ringer Injection 500ml 3 CYHB1950801 Peritoneal Dialysis Solution (Lactate - G2.5% ) 2
Slide 44: Production approvals application to submit in 2023
Production approvals application to submit in 2023 即将上报的产品（2022年） To submit soon ◆ 24 types of bulk pharmaceuticals ◆ 40 types of liquid preparations with 50 specifications ◆ 29 types of solid preparations with 38 specifications SSYSSY Group Limited Group • 44 Limited • 44
Slide 45: Major projects of innovative drug development
Major projects of innovative drug development 创新药的研发策略 Type I New Drug （a）NP-01：Type I new drug for gastric cancer, undergoing phase I clinical trials, expected to start the phase II clinical trials in July 2023 （b）ADN-9： Anti-hepatic fibrosis type I new drug, phase I clinical trials expected to sta
Slide 46: Support Cooperation Institutions
Strong External Scientific R&D and Industrialization Support Cooperation Institutions ◆ Collaborative R&D of ◆ Undergraduate and Chinese Shenyang postgraduate Type I New Drugs Pharmaceutical Pharmaceutical internship base ◆ Technology R&D of University University ◆ Professional master's training Typ
Slide 47: Development Strategies
PART 04 Development Strategies ➢ Fields for development ➢ Production chains ➢ Bioprocessing films ➢ Advanced preparations ➢ Intelligent production
Slide 48: Development Strategies
Fields for development Generic Drugs：Increase R&D continuously; focus on high-end bulk drugs; integrate specialized bulk drug + preparations Innovative Drugs：Clinical trials and commercialization to proceed on schedule；plan on drug development for children and elderly Bioprocessing films Production
Slide 49: Prospects for development (2023)
Prospects for development (2023) IV：Maintain market leading position; increase proportion of therapeutic and bag forms; potential for higher profits and margins Ampoule：Continuously enrich in varieties and increase capacity utilization Bulk pharmaceuticals：Lower cost + increase efficiency; focus on
Slide 50: Company Contacts
Company Contacts Direct line： +852-2688 0869 Wang Xianjun +86-14716028769 （Senior Consultant） Meng Guo +86-13933073928 （Executive Director） mengguo@ssygroup.com.hk Henry Chow +852-9721 2670 （Executive Director & CFO） henrychow@ssygroup.com.hk Isabella Wang +86-13801231199 （Wechat） （Deputy General Ma