Shandong Weigao Group Medical Polymer Co. Ltd. Class H · HKEX:1066
Shandong Weigao Group Medical Polymer Co. Ltd. Class H — FY2022 Earnings Presentation
26 slides from Shandong Weigao Group Medical Polymer Co. Ltd. Class H's earnings presentation, March 2023
Slide 1: Investor Presentation FY2022 Results Announcement
Investor Presentation FY2022 Results Announcement March 2023 CONSCIENCE | INTEGRITY | LOYALTY The Leading Total Solutions Provider in the PRC Medical Devices Sector
Slide 2: Contents
Contents P2 FY2022 Business Highlights P5 Strategic Outlook P15 FY2022 Financial Performance 1
Slide 3: FY2022 Business Highlights
WEGOHMS FY2022 Business Highlights
Slide 4: Key business highlights of 2022
Key business highlights of 2022 Robust growth despite Blood irradiators the pandemic for civil use • Despite the challenges posed by the COVID-19, VBP, and stock channeling, WEGO’s key • Revenue of Rad Source was RMB0.43 billion, products have maintained an upward growth representing a y-o-y growth
Slide 5: Business segment update
Business segment update 2022 % y-o-y revenue % of segment1 % of revenue growth profit ❖ Despite the impact of the pandemic on demand for medical devices, which further adversely affected the sales volume of medical consumables, the Company leveraged the balanced product portfolio, expanded customer
Slide 6: Strategic Outlook
WEGOHMS Strategic Outlook
Slide 7: Company strategy
Company strategy In response to the policy changes, competition landscape, clinical demands and the accumulation of resources, WEGO proposed the three operational strategies – “platform-based”, “international” and “digital” development, and two guarantee strategies – “talents” and “innovation” Platf
Slide 8: Platform-based development — sales platform integration
Platform-based development —— sales platform integration ❖ Continue to promote sales channel integration, and redirect marketing resources on core customer development and retention. The Company has seen increasing penetration rate among the key clients (especially the tertiary hospitals) ❖ Continue
Slide 9: Platform-based development — new business initiatives
Platform-based development —— new business initiatives Digital clinical care Life science information Urology Endocrinology products and support solutions • Trusted by nearly 50 top-tier • Leveraged the expertise of the • Stents: leveraging the latest • Developed a team in 2022 tertiary hospitals sa
Slide 10: New business initiatives (cont')
Platform-based development —— new business initiatives (cont’) Safe automatic drug Endoscopy Rehabilitation administration system • Leveraging partnership with • There is enormous potential for growth in the • Developed various drug external experts and integration demand for rehabilitation medical
Slide 11: International development
International development Connecting China to the globe, building stronger WEGO business by global collaboration WEGO has integrated the internal resources and established an overseas business unit, to continuously drive the international development process. By leveraging the global resources, the
Slide 12: Digitalization development
Digitalization development Digitalized production 1 2 Digitalized products and operation WEGO leverages the power of digital development • WEGO has established a hospital-centric to improve operational efficiency, reduces production information infrastructure system, offering costs, and enhances pro
Slide 13: Innovation and talents strategies
Innovation and talents strategies WEGO thrives to accelerate future development embracing new opportunities, pushing boundaries of innovation, expanding in-house R&D investment, and gathering top talents Iteration of existing product Strategic planning for offerings new products ✓ Improving the exis
Slide 14: ESG
ESG Sustainable green development • Environment management: stay committed to the principles of green development. With a robust and comprehensive environmental management system in place, WEGO adheres strictly to all relevant environmental protection laws and regulations in the areas where the comp
Slide 15: Core competitiveness
Core competitiveness Corporate culture, reputation and impact Open and inclusive platform • Always follow the corporate culture of • Promote the synergy and resource conscience, integrity and loyalty to meet sharing between segments, clinical needs stimulating flexibility and vitality of each sector
Slide 16: Spring has come, so has the Season of Hope
Spring has come, so has the Season of Hope 15
Slide 17: FY2022 Financial Performance
FY2022 Financial Performance
Slide 18: Key financials
Key financials Revenue 3 (RMBmm) Operating profit 1,3,4 (RMBmm) Growth (%) Operating profit margin(%) 17.7% 9.5% 15.9% 3.6% 18.0% 19.9% 19.9% 21.8% 23.0% 13,152 13,619 11,345 10,364 3,128 8,809 2,866 2,066 2,255 1,586 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 EBITDA1,2,3,5 (RMBmm) Net profit
Slide 19: Revenue and profit breakdown (by business segment)
Revenue and profit breakdown (by business segment) Revenue breakdown Profit breakdown 2022 2022 % of revenue % of profit1 Medical device 50.4% Medical device 41.5% Orthopedic 13.4% Orthopedic 18.4% Interventional 12.7% Interventional 4.7% Pharma packaging 15.5% Pharma packaging 28.6% Blood managemen
Slide 20: Geographic presence of the business
Geographic presence of the business Geographic presence Sales from overseas operations was RMB3,170mm, accounting for 23% of revenue 2022 2021 % of revenue % of revenue China 76.8% China 79.8% US 9.3% US 8.7% Asia 6.8% Asia 5.3% EMEA 4.1% EMEA 3.8% Others Others 3.0% 2.4% Revenue by category (RMBmm)
Slide 21: Cash flow and CAPEX
Cash flow and CAPEX Cash flows and CAPEX Affected by the COVID pandemic in 2022, account receivable days of the hospital was slightly extended, while the Company's operating cash flow and free cash flow slightly decreased on a y-o-y basis The Company has recorded positive free cash flow for the fift
Slide 22: Other financial data
Other financial data Other financial data 2022 20213 Inventory turnover in days1 113 101 Account receivable turnover Working capital 138 132 in days1 Account payable turnover in 76 84 days1 Cash and bank balances 6.86 6.63 (RMBbn) Cash and debt Total debt (RMBbn) 4.36 4.06 Net cash (Net debt) 2.50 2
Slide 23: Development plan
Development plan Development strategy Benefited from the continuous expansion of global healthcare industry, WEGO plans to boost future development by establishing a platform company and providing systematic solutions. Strategic acquisition Product diversification and upgrading 06 01 • Replicating t
Slide 24: Key milestones
Key milestones • WEGO switched from • Selected as one the GEM to the Main of China's • Announced the Board in HK leading private • Completed the acquisition of Argon companies with • Formed a JV with Medical, a leading acquisition of Rad Nikkiso in terms of outstanding Source, a leading U.S. manufac
Slide 25: WEGO's corporate structure
WEGO's corporate structure 2.06% Equity incentive 45.94% Weigao Holdings 52.00% Public WEGO (stock code: HK-1066) WEGO（Stock code： HK-1066） 100% Medical WEGO Argon Medical Puri Blood Blood 100% 72.21% 89.8% 95.9% 100% 26.6% Device Orthopaedic (U.S.) Packaging Technology Purification • Clinical care
Slide 26: 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 WEGO Group Medical Polymer Company Limited ("WEGO Group"), nor shall it be construed as calculated to invite any su
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