Ssy Group Limited · HKEX:2005

Ssy — H1 2024 Earnings Presentation

63 slides from Ssy's earnings presentation, Aug 28, 2024

  1. Slide 1: 2024 Interim Results & Roadshow material

    2024 Interim Results & Roadshow material Updated on 28 August 2024 Copyright ® 2022 SSY Group Limited. All rights reserved.

  2. 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

  3. Slide 3: Business Profile, Competitive Advantages, R&D Status, 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

  4. Slide 4: Business Profile

    PART 01 Business Profile ➢ Financial Highlights ➢ Revenue Overview ➢ Shareholding & ➢ R&D Overview Group Structure

  5. Slide 5: Financial Highlights (1H2024)

    Financial Highlights (1H2024) Increase/ （HK$'000） 1H2024 1H2023 (Decrease) Revenue 3,338,939 3,333,157 0.2% Gross Profit 1,843,455 1,944,751 (5.2%) Gross Profit Margin 55.2% 58.3% (3.1%pt) EBITDA 1,081,255 993,861 8.8% EBITDA Margin 32.4% 29.8% 2.6%pt Net Profit 685,737 638,611 7.4% Net Profit Margi

  6. Slide 6: Financial Highlights (1H2024) (continued)

    Financial Highlights (1H2024)(continued) Increase/ （HK$'000） 30 June 2024 31 December 2023 (Decrease) Cash and Cash Equivalent 1,564,535 1,615,208 (50,673) Bank Borrowings 3,607,505 3,368,141 239,364 Net Asset Value 7,569,754 7,268,692 301,062 Gearing Ratio 22.0% 20.2% 1.8%pt Current Ratio 2.63 2.03

  7. Slide 7: Shareholding & Group Structure

    Shareholding & Group Structure Updated as at 28 August 2024 Sichuan Kelun China Pharmaceutical & UBS Others No. of issued shares : Pharmaceutical Mr. Qu Jiguang 2,969,043,385 21.18% 37.65% 9.99% 31.18% Since January 2023, SSY have repurchased 3.64 million shares SSY Group Limited (Stock Code: 2005.H

  8. Slide 8: Revenue Overview (1H2024)

    Revenue Overview (1H2024) 1H2024 1H2023 By Products Revenue % of Total Revenue % of Total (HK$’000) Revenue (HK$’000) Revenue I.V. Infusion 2,185,363 65.5% 2,069,115 62.1% Ampoule Injections 366,785 11.0% 453,398 13.6% Bulk Pharmaceuticals 398,786 11.9% 453,626 13.6% Oral Preparations 254,365 7.6% 2

  9. Slide 9: Revenue Overview (2023)

    Revenue Overview (2023) 2023 2022 By Products Revenue % of Total Revenue % of Total (HK$’000) Revenue (HK$’000) Revenue I.V. Infusion 4,040,743 62.5% 3,510,342 54.6% Ampoule Injections 826,103 12.8% 978,707 15.2% Bulk Pharmaceuticals 888,867 13.8% 1,358,949 21.1% Oral Preparations 478,195 7.4% 346,0

  10. Slide 10: Revenue Breakdown by Products (1H2024)

    Revenue Breakdown by Products (1H2024) 集团结构 产品销售结构（2021年一季度） Oral Preparations, Medical Materials and other products 11.6% 石药集团有限公司(股票代码：2005.HK) Non-PVC Soft Bag 32.5% Bulk Pharmaceuticals 11.9% 大输液、安瓿小水针、 口服制剂等 Ampoule Upright Soft Bag 11.0% 17.1% Glass Bottle 2.8% PP Plastic Bottle 药用包材 化工原料(甲胺)

  11. Slide 11: I.V. Infusion

    I.V. Infusion Sales volume increase, Upright soft bag and Key products continue growth trend in volume In 1H2024, sales volume of infusion solution reached 1.139 billion bottles (bags), representing an increase of 21.7% y-o-y, revenue reached HKD2,185 million, representing an increase of 5.6% y-o-y

  12. Slide 12: Revenue Overview - I.V. Infusion (1H2024)

    Revenue Overview - I.V. Infusion (1H2024) 大输液销售概览 I.V. Infusion – 1H2024 By Packaging Revenue Average Selling % of IV Price (ASP) GP% (HK$’000) Revenue (HK$) Non-PVC Soft Bag 1,085,468 49.7% 3.28 58.2% Upright Soft Bag 571,771 26.2% 1.53 69.1% PP Plastic Bottle 435,357 19.9% 1.09 46.1% Glass Bottle

  13. Slide 13: Revenue Overview - I.V. Infusion (1H2024)

    Revenue Overview - I.V. Infusion (1H2024) I.V. Infusion – 1H2024 By Pharmaceutical Average Selling Products Revenue % of IV Price (ASP) GP% (HK$’000) Revenue (HK$) Basic Infusions 1,298,333 59.4% 1.70 59.5% Nutrition Infusions 335,766 15.4% 1.49 48.0% Therapeutical Infusions 551,264 25.2% 3.71 58.0%

  14. Slide 14: Revenue Overview - I.V. Infusion (2023)

    Revenue Overview - I.V. Infusion (2023) 大输液销售概览 I.V. Infusion – 2023 By Packaging Revenue Average Selling % of IV Price (ASP) GP% (HK$’000) Revenue (HK$) Non-PVC Soft Bag 2,094,847 51.8% 3.51 65.1% Upright Soft Bag 880,556 21.8% 1.66 68.3% PP Plastic Bottle 827,264 20.5% 1.21 47.3% Glass Bottle 238,

  15. Slide 15: Revenue Overview - I.V. Infusion (2023)

    Revenue Overview - I.V. Infusion (2023) Proportion of therapeutic infusions (as % of IV revenue) increased by 2.2 %pt Various products’ volume entered rapid growth period: Ambroxol Hydrochloride (+215%), Moxifloxacin Hydrochloride (+233%), Fluconazole (+295%), Peritoneal dialysis solution (+24%) I.V

  16. Slide 16: Ampoule Injections

    Ampoule Injections Increasingly rich in varieties, Production gradually scaled up, Increasing in centralised procurement In 1H2024, sales volume reached 167 million, increased by 26.9% y-o-y; revenue accounted for HK$367 million, decreased by 19.1% y-o-y (RMB333 million, decreased by 17.3% y-o-y) ma

  17. Slide 17: Oral Preparations

    Oral Preparations Accelerated upgrade of production & sales scale, revenue contribution gradually increase In 1H2024, sales volume reached 800 million tablets/capsules, increased by 8% y-o-y; revenue accounted for HK$254 million, increased by 4.1% y-o-y (RMB231 million, increased by 6.4% y-o-y); con

  18. Slide 18: Bulk Pharmaceuticals

    Bulk Pharmaceuticals Sales volume of caffeine increased, volume and price of azithromycin increased In 1H2024, revenue accounted for HK$399 million, decreased by 12.1% y-o-y (RMB362 million, decreased by 10.1% y-o-y ). 32 new bulk pharmaceutical customers, including 13 new caffeine customers Caffein

  19. Slide 19: Medical Materials

    Medical Materials Improve in medical materials and lyophilized powder products In 1H2024, revenue of external sales accounted for HK$94.48 million, increased by 4.9% y-o-y (RMB85.86 million, increased by 7.3% y-o-y), benefit from increased market penetration and coverage. Other product and services:

  20. Slide 20: Foreign exports

    Foreign exports Preparation exports maintain stable In 1H2024, export of infusion solution: volume of 51.72 million bottles (bags), growth of 1.3% y-o-y, revenue of HK$77.62 million, roughly the same y-o-y (RMB70.55 million, roughly the same y-o-y) Developed 13 new customers Completed 17 product reg

  21. Slide 21: Research and Development

    Research and Development Up to 30 June 2024, a total of 66 national production approvals were obtained (increased 43% y-o-y), including 51 for preparations and 15 for bulk pharmaceuticals. Research and development efficiency and quantity of generic drugs are among the best in China's pharmaceutical

  22. Slide 22: Product passed/regarded passing consistency evaluation

    Product passed/regarded passing consistency evaluation (94 Types, 126 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 1 Fluconazole Tablets 150mg 28/04/2019 The First Systemic anti-infectives 2 Doxofylline Injection 10ml:0.1g 21/01/2020 The First Respirat

  23. Slide 23: Product passed/regarded passing consistency evaluation

    Product passed/regarded passing consistency evaluation (94 Types, 126 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 33 Rosuvastatin Calcium Tablets 10mg 17/08/2020 Cardiovascular System 34 Rosuvastatin Calcium Tablets 5mg 09/06/2022 Cardiovascular Syste

  24. Slide 24: Product passed/regarded passing consistency evaluation

    Product passed/regarded passing consistency evaluation (94 Types, 126 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 65 Tedizolid Phosphate Injection 200mg 26/05/2023 Systemic anti-infectives 66 Urapidil Hydrochloride Injection 5ml 29/05/2023 Cardiovascu

  25. Slide 25: Product passed/regarded passing consistency evaluation

    Product passed/regarded passing consistency evaluation (94 Types, 126 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 97 Propofol Medium/Long Chain Fat Emulsion Injection 20ml 06/02/2024 Nervous system 98 Propofol Medium/Long Chain Fat Emulsion Injection

  26. Slide 26: Products considered as catalyst of growth

    Products considered as catalyst of growth (34 Types, 47 Specifications) Catalyst products It is considered to have room for great growth as it meets the following conditions at the same time: Bulk pharmaceuticals + preparation integration (Self-bulk pharmaceuticals supply) & Five or more companies p

  27. Slide 27: Products considered as catalyst

    Products considered as catalyst (34 Types, 47 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 19 Moxifloxacin Hydrochloride Tablets 0.4g 07/01/2022 Systemic anti-infectives 20 Bromhexine Hydrochloride Injection 2ml 23/03/2021 Second Respiratory system 21

  28. Slide 28: Products considered as catalyst

    Products considered as catalyst (34 Types, 47 Specifications) No. Drug Name Specification Approval Date Approval in PRC Treatment Category 43 Rasagiline Mesylate Tablets 1mg 15/05/2024 Nervous system 44 Ondansetron Hydrochloride Injection 4ml:8mg 21/05/2024 Digestive system and metabolic drugs 45 On

  29. Slide 29: Competitive Advantages

    PART 02 Competitive Advantages

  30. Slide 30: Diversified and Competitive Advantages

    Competitive Advantages Bulk Pharmaceuticals, Medical . Intelligent Manufacturing I.V. Materials, Preparations and Infusion Production Lines, Biotech - Diversified and Largest Production Capacity on Coordinated Development Single Factory Basis Numerous Specifications,. Complete Numerous Prize Recogni

  31. Slide 31: Bulk Pharmaceuticals, Medical Materials, Preparations and Biotech - Diversified and Coordinated Development

    Bulk Pharmaceuticals, Medical Materials, Preparations and Biotech - Diversified and Coordinated Development Production Bases: 2 preparation, 2 bulk pharmaceutical, 1 chemical and 1 medical material, forming synergy and whole-industry-chain by preparations + bulk pharmaceuticals + medical materials +

  32. Slide 32: Diversified and Coordinated Development - Pharmaceutical R&D Institute

    Diversified and Coordinated Development - Pharmaceutical R&D 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 country. I

  33. Slide 33: Diversified and Coordinated Development – Preparations Production Base

    Diversified and Coordinated Development – Preparations 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, Freeze-dried powder injection, Tablets, Capsule and Granules SSY Group Limit

  34. Slide 34: Diversified and Coordinated Development – Bulk Pharmaceuticals Production Base

    Diversified and Coordinated Development – Bulk Pharmaceuticals Production Base Hebei Guangxiang Pharmaceutical Cangzhou Lingang Youyi Chemical Major products: Caffeine, Major products: Methylamine (API for Theophylline, Aminophylline Series, caffeine and other pharmaceutical/ Metronidazole, Ornidazo

  35. Slide 35: Specialised Bulk Pharmaceuticals

    Specialised Bulk Pharmaceuticals Bulk Pharmaceuticals with status A owned by Hebei Guangxiang Pharmaceutical (34) 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 metronida

  36. Slide 36: Specialised Bulk Pharmaceuticals

    Specialised Bulk Pharmaceuticals Bulk Pharmaceuticals with status A owned by Hebei Guangxiang Pharmaceutical (34) Serial Registration No. Drug Name Status 27 Y20220000360 Isoproterenol Hydrochloride A 28 Y20220000117 Lidocaine Hydrochloride A 29 Y20220000599 Rasagiline Mesylate A 30 Y20220000359 Ben

  37. Slide 37: Specialised Bulk Pharmaceuticals

    Specialised Bulk Pharmaceuticals Bulk Pharmaceuticals with status A owned by Hebei Guolong Pharmaceutical (26) Serial Registration No. Drug Name Status 1 Y20200001123 Cinacalcet Hydrochloride A 2 Y20200000767 Ipratropium Bromide A 3 Y20200000466 Dexmedetomidine Hydrochloride A 4 Y20190001004 Blonans

  38. Slide 38: Specialised Bulk Pharmaceuticals

    Specialised Bulk Pharmaceuticals Bulk Pharmaceuticals with status A owned by Hebei Guolong Pharmaceutical (26) Serial Registration No. Drug Name Status 22 Y20220000426 Etomidate A 23 Y20220000427 Trelagliptin Succinate A 24 Y20220000910 Doxazosin Mesylate A 25 Y20220001251 Betahistine Mesylate A 26

  39. Slide 39: Diversified and Coordinated Development – 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 • 39

  40. Slide 40: Diversified and Coordinated Development – Biotechnology and product development

    Diversified and Coordinated Development – Biotechnology and product development Hebei Hanlin Technology Major products： In vitro diagnostic reagents, Cosmetic Peptide, Medical Ultrasound Coupling Agent and Medical Radiation Protection Spray SSY Group Limited • 40

  41. Slide 41: Numerous Varieties, Complete Dosage Form, Wide coverage

    Numerous Varieties, Complete Dosage Form, Wide coverage No. of Production approvals: 436 No. of Preparations approved: 331 including including 331 Preparations, 63 Bulk Pharmaceuticals, 206 in Essential Drug List, 126 passed Consistency Evaluation, 17 in National Centralised Procurement 42 Medical M

  42. Slide 42: Numerous Varieties, Complete Dosage Form, Wide coverage

    Numerous Varieties, Complete Dosage Form, Wide coverage I.V. Infusion National Centralised Procurement： Ampoule Injections & Lyophilized powder Oral preparations • • National Centralised Procurement： Fluconazole Sodium Chloride Injection, • National Centralised Procurement： Doxofylline, Ambroxol Hyd

  43. Slide 43: Market share increases for products in national centralised procurement

    Market share increases for products in national centralised procurement National centralised Change in market share* procurement batch Products selected in tender (Date of Result) 2020_ 2021_ 2022_ Prucalopride Succinate tablet 1.09% 6.59% 9.44% 3rd batch（Aug 2020） Cefdinir capsule 2.30% 32.60% 38.5

  44. Slide 44: 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 -

  45. Slide 45: Awards and recognitions

    Awards and recognitions ✓ Ranked 10 in Chemical Drugs R&D Capabilities in China in 2023 ✓ China pharmaceutical independent innovation pioneer enterprise ✓ China innovative pharmaceutical companies ✓ National-level manufacturing individual champion enterprise ✓ Selected in the 2022 list of outstandin

  46. Slide 46: 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

  47. Slide 47: 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

  48. Slide 48: 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

  49. Slide 49: Bulk Pharmaceuticals under review (Hebei Guangxiang)

    Bulk Pharmaceuticals under review (Hebei Guangxiang) No. Registration No. Drug Name Status Expected approval 1 Y20210000927 Doxofylline A Approved 2 Y20210000931 Tinidazole A Approved 3 Y20210000930 Theobromine A Approved 4 Y20210000678 Tedizolid Phosphate A Approved 5 Y20210001167 Uradil A Approved

  50. Slide 50: Bulk Pharmaceuticals under review (Hebei Guangxiang)

    Bulk Pharmaceuticals under review (Hebei Guangxiang) No. Registration No. Drug Name Status Expected approval 22 Y20230001010 Nikethamide I 2025 23 Y20230001037 Benidipine Hydrochloride I 2025 24 Y20230001109 Benidipine Hydrochloride I 2025 25 Y20230001169 Nimodipine I 2025 26 Y20230001287 Morpholina

  51. Slide 51: Bulk Pharmaceuticals under review (Hebei Guolong)

    Bulk Pharmaceuticals under review (Hebei Guolong) No. Registration No. Drug Name Status Expected approval 1 Y20190000687 L-malic acid A Approved 2 Y20210000821 Stippentol A Approved 3 Y20220000356 Nicorandil A Approved 4 Y20220000818 Dapagliflozin A Approved 5 Y20220000910 Doxazosin Mesylate A Appro

  52. Slide 52: Bulk Pharmaceuticals under review (Hebei Guolong)

    Bulk Pharmaceuticals under review (Hebei Guolong) No. Registration No. Drug Name Status Expected approval 17 Y20230000948 L-Lysine I 2025 18 Y20230001087 Piribedil I 2025 19 Y20230001251 Indocyanine Green I 2025 20 Y20230001271 Lornoxicam I 2025 21 Y20230001345 Riluzole I 2025 22 Y20240000182 Azilsa

  53. Slide 53: Type 3 Preparations under review

    Type 3 Preparations under review Expected to be approved by the end of 2024 No. Acceptance No. Drug Name Specification 1 CYHS2201367 Magnesium Sulfate Injection 20ml 2 CYHS2201366 Magnesium Sulfate Injection 10ml 3 CYHS2201365 Magnesium Sulfate Injection 2ml 4 CYHS2201309 Sodium Bicarbonate Ringer's

  54. Slide 54: Type 4 Preparations under review

    Type 4 Preparations under review Expected to be approved by the end of 2024 No. Acceptance No. Drug Name Specification 1 CYHS2201023 Ropivacaine Hydrochloride Sodium Chloride Injection 100ml 2 CYHS2302754 Vortioxetine Hydrobromide Tablets 10mg 3 CYHS2201196 Propofol Medium / Long Chain Fat Emulsion

  55. Slide 55: Type 4 Preparations under review

    Type 4 Preparations under review Expected to be approved by the end of 2024 No. Acceptance No. Drug Name Specification 26 CYHS2201044 Rasagiline Mesylate Tablets 1mg 27 CYHS2301413 Phloroglucinol Injection 4ml：40mg 28 CYHS2301960 Vonolazen Fumarate Tablets 10mg 29 CYHS2301959 Vonolazen Fumarate Tabl

  56. Slide 56: Preparations under consistency evaluation review

    Preparations under consistency evaluation review Expected to be approved by the end of 2024 No. Acceptance No. Drug Name Specification 1 CYHB2350257 Chlorpheniramine Maleate injection 1ml:10mg 2 CYHB2350256 Chlorpheniramine Maleate injection 2ml:20mg 3 CYHB2350237 Potassium Chloride Injection 20ml:3

  57. Slide 57: Production approvals to submit by end of 2024

    Production approvals to submit by end of 2024 即将上报的产品（2022年） (updated as of 30 Jun 2024) To submit soon ◆ 17 types of bulk pharmaceuticals ◆ 23 types of liquid preparations with 26 specifications ◆ 13 types of oral preparations with 15 specifications SSYSSY Group Limited Group • 57 Limited • 57

  58. Slide 58: 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）SYN-045：Anti-pulmonary hypertension drug, Phase I clinical trial is underway, expected to be completed by the end of the year and is currently in good progress （b）ADN-9： Anti-hepatic fibrosis type I new drug, expected to apply

  59. Slide 59: Strong External R&D and Industrialization Support/Cooperation

    Strong External R&D and Industrialization Support/Cooperation ◆ Collaborative R&D of ◆ Undergraduate and Chinese Shenyang postgraduate Type I New Drugs Pharmaceutical Pharmaceutical internship base ◆ Technological R&D of University University ◆ Professional master's training Type II New Drugs ◆ Coll

  60. Slide 60: Development Strategies

    PART 04 Development Strategies ➢ Fields for development ➢ Production chains ➢ Bioprocessing films ➢ Advanced preparations ➢ Intelligent production

  61. Slide 61: 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

  62. Slide 62: Prospects for development

    Prospects for development IV：Further expand market share of basic therapeutic infusion in hospitals of different tiers, focus on increasing the sales volume of key infusion products, consolidate its market share Ampoule：Explore the market potential of dominant products, step up effort to increase sa

  63. Slide 63: Company Contacts

    Company Contacts Direct line： +852-2688 0869 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 Manager isabellawang@ssygroup.com.hk – Investor Rel

SSY Group — H1 2024 Earnings Presentation on 6ix