Slide 1: 2018 Results Analysts Meeting
2018 RESULTS ANALYSTS MEETING Updated on 13 March 2019 Copyright © 2016 SSY Group Limited. All rights 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#039;000） 2018 2017 (Decrease) Revenue 4,180,788 3,076,369 35.9% Gross Profit 2,606,373 1,807,188 44.2% Gross Profit Margin 62.3% 58.7% 3.6%pt EBITDA 1,397,436 1,112,235 25.6% EBITDA Margin 33.4% 36.2% (2.8%pt) Net Profit 911,774 664,719 37.2% Net Profit Margin 21.8% 2
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% 64% Jiangsu Best New Hebei Hanlin Hebei Guolong Hebei Guangxiang Other Medical Material Biotechnology Pharmaceutical
Slide 7: Sales Breakdown by Product (2018)
Sales Breakdown by Product (2018) Non-PVC soft bag infusion solution 19.5% Upright soft bag 11.2% infusion solution 15.1% PP plastic bottle 11.6% infusion solution 42.6% Glass bottle infusion solution 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
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 Increase / Increase / 2019 end 2017 2018 % change % change (forecast) 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) 1,000,000 922,568 900,000 858,789 813,628 800,000 Non-PVC Soft Bag 700,000 666,453 615,442 600,000 Upright Soft Bag 500,000 399,252
Slide 13: I.V. Infusion – 2018 Revenue by Packaging
Competitive Advantages Largest Production Capacity on Single Factory Basis in PRC Brings “Economy of Scale” in Production I.V. Infusion – 2018 Revenue By Packaging Average Selling Revenue % of IV Price (ASP) GP% (HK#039;000) Revenue (HK$) Non-PVC Soft Bag 1,781,357 48.2% 3.51 70.0% Upright Soft Bag 631
Slide 14: I.V. Infusion – 2018 Revenue by Pharmaceutical Products
Competitive Advantages Largest Production Capacity on Single Factory Basis in PRC Brings “Economy of Scale” in Production I.V. Infusion – 2018 Revenue By Pharmaceutical Average Selling Products Revenue % of IV Price (ASP) GP% (HK#039;000) Revenue (HK$) Basic Infusions 2,223,246 60.2% 2.37 64.8% 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 Profit Margin and Net Profit Margin
Competitive Advantages Among Highest Gross Profit Margin and Net Profit Margin in the Industry By Gross Profit Margin Packaging 2016 2017 2018 Non-PVC Soft Bag Infusion 63% 68% 70% Upright Soft Bag Infusion 58% 69% 73% PP Bottle Infusion 43% 43% 50% Glass Bottle Infusion 37% 52% 63% Sub-total of I.V
Slide 19: Research and Development 2018
Competitive Advantages Research and Development 2018 ◼ Recognized as the National Enterprise Technology Centre by the National Development and Reform Commission ◼ Recognized as the National Technology Innovation Enterprise by the Ministry of Industry and Information Technology and the Ministry of Fi
Slide 20: Research and Development: Looking Forward to 2019
Competitive Advantages Research and Development Looking forward to 2019 ◼ Annual sales target of IV solutions more than 1,600 million bottles/bags ◼ Sales for therapeutic products will be realized on a large scale ◼ Large-volume (2,000ml to 4,000ml) soft bag infusion production line expected to be r
Slide 21: Shareholding Structure
Shareholding Structure SSY Group Limited • 21
Slide 22: Shareholding Structure
Shareholding Structure Updated as at 13 March 2019 No. of issued shares 3,014,025,385 Sichuan Kelun China Pharmaceutical Others Pharmaceutical Co., Ltd. Co., Ltd. and Mr. Qu Jiguang 19.2% 32.1% 48.7% SSY Group Limited (Stock Code: 2005.HK) 100% 41% Shijiazhuang No.4 Pharmaceutical Co., Ltd. 59% 100%
Slide 23: Financial Highlights
Financial Highlights SSY Group Limited • 23
Slide 24: Financial Highlights
Financial Highlights As at 31 December As at 31 December Increase/ （HK#039;000） 2018 2017 (Decrease) Bank balances and cash 902,062 687,319 214,743 Bank borrowings 1,494,502 1,748,709 (254,207) Net Asset Value 4,378,246 3,486,742 891,504 Net Gearing Ratio 12.3% 23.4% (11.1%pt) Current Ratio 2.22 1.67 0
Slide 25: 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 • 25