Zhongchao Inc. · NASDAQ:ZCMD
Zhongchao — IPO Roadshow (December 2019)
36 slides from Zhongchao's IPO roadshow presentation, Dec 13, 2019
Slide 1: Zhongchao Inc. Investor Presentation December 2019
NasdaqCM: Zhongchao Inc. Investor Presentation December 2019 ZCMD
Slide 2: Safe Harbor Statements
2 Safe Harbor Statements This presentation includes statements that are, or may be deemed, "forward - looking statements . " In some cases these forward - looking statements can be identified by the use of forward - looking terminology, including the terms “we believe," "estimates," "anticipates," e
Slide 3: Zhongchao at a Glance
3 Zhongchao at a Glance 2018 Revenues $12.9 Million Gross Margin 65.4% Net Income $3.0 Million 390,000 Registered medical professionals (as of 6/30/2019) 2,000,000 User visits (during 2018) 150 Forums (as of today) 4,950,000 Subscriptions (as of today) 1,250,000,000 Click - throughs (as of today) 1,
Slide 4: Table of Contents
4 Table of Contents 1 2 3 4 5 Offering Summary Company Introduction Business Overview Industry Analysis Financial Highlights
Slide 5: Offering Summary
5 1 OFFERING SUMMARY
Slide 6: Offering Summary
6 Offering Summary Issuer Zhongchao Inc . Securities Class A Ordinary Shares Ticker NasdaqCM : ZCMD (subject to Nasdaq approval) Pre - Offering Shares Outstanding 16 , 102 , 420 Class A Ordinary Shares* and 5 , 497 , 715 Class B Ordinary Shares Number of Shares Offered 3 , 500 , 000 Class A Ordinary
Slide 7: Investment Thesis
7 Investment Thesis One of the leading healthcare information, education and training services platforms for healthcare professionals and the public in China with well recognized brands and significant user base Platforms & Brands IPO and Nasdaq listing improve financial condition and access to capi
Slide 8: Company Introduction
8 2 COMPANY INTRODUCTION
Slide 9: Mission and Value
9 Mission and Value We strive to become the premier healthcare destination platforms in China where physicians, allied healthcare professionals and the public visitors can find reliable and comprehensive information that enables them to make better and more informed medical and health decisions.
Slide 10: Corporate Structure and History
10 201 2 Zhongchao Medical T echnology (Shanghai) Corp. was established 2015 Shanghai Maidem u Cultural Communication Corp established Investments from GF Securities and Kaisa Jiayun Technology (300242.SHE) 2016 Zhongchao Medical T echnology (Shanghai) Corp. was l isted on NEEQ ( 众巢医学 837797) Shangh
Slide 11: Institutional Shareholders
11 Institutional Shareholders 2,250,000 Shares (10.4%) 1,350,068 Shares (6.3%) 540,000 Shares (2.5%) 270,000 Shares (1.2%)
Slide 12: Management
12 Management Chief Financial Officer and Director Pei Xu • CFO and Director of the Company; CFO of Zhongchao Shanghai since 2016 • Financial director of Zhongchao Shanghai from 2013 to 2016 • Financial director of Otsuka(China) Investment Co., Ltd. from 2008 to 2013 • Bachelor’s degree in Finance f
Slide 13: Independent Directors
13 Independent Directors Independent Director Independent Director Kevin Vassily • Independent director of the Company • Advisor for Woodseer Global since 2019 • Advisor at Go Capture and Prometheus Fund since 2018 • Associate Director of Research at KeyBanc Capital Markets from 2015 to 2018 • Direc
Slide 14: Business Overview
14 3 BUSINESS OVERVIEW
Slide 15: Company Overview
15 Company Overview MDMOOC Online + Onsite healthcare information, education and training for professionals since 2013 Sunshine Health Forums Community - based healthcare information and education for the public since 2016 A provider of healthcare information, education, and training services to hea
Slide 16: MDMOOC Overview
16 MDMOOC Overview MDMOOC Users • Access a variety of accredited editorial resources and programs • Obtain continuing medical education credits which are required for the healthcare qualification of doctors, nurses, and pharmacists One of the largest online libraries of continuing medical education
Slide 17: MDMOOC Website
17 MDMOOC Website O rganize professional information by the following medical specialty and subject areas, including but not limited to : Internal Medicine • www.mdmooc.org since 2013 • Users can access online healthcare information, education and training content and services through website • M ai
Slide 18: MDMOOC Mobile App and WeChat
18 MDMOOC Mobile App and WeChat MDMOOC Mobile A pp - 2015 M DM OOC Medical mobile app offers healthcare professionals relevant healthcare knowledge and study insights MDMOOC WeChat Subscription Account - 2016 WeChat Subscription Account provides a new means to propagate information for the media and
Slide 19: MDMOOC Onsite Education Activities
19 MDMOOC Onsite Education Activities Onsite Courses Cooperate with: • Beijing Chronic Disease Prevention • Health Education Research Association For Example: • Essential Course for Wound Care Management • Advanced Course for Surgical Wound Treatment Jan 2019 Launched European Wound Management Assoc
Slide 20: Sunshine Health Forums Overview
20 Sunshine Health Forums Overview 150 forums* 4. 95 million subscriptions* 1.2 5 billion aggregate click - throughs* Aug 2016 WeChat subscription account 2017 Mobile App May 2016 www.ygjkclass.com *Note: data as of today Short – Form Videos • Produce popular, original, short - form videos covering
Slide 21: Research and Development
21 Research and Development R&D consists of product development and technology support Product development team: • 25 researchers, focused on market research and product development • Monitors the market to adjust and upgrade existing educational products, and designs new products based on customers
Slide 22: Marketing and Branding
22 Marketing and Branding • P romote platform and enhance brand awareness through a variety of online and offline activities • C ooperate with third - party apps, popular search engines and social media platforms for online and mobile marketing • C onduct onsite marketing through d onation activitie
Slide 23: Customers
23 • P harmaceutical and healthcare corporations • E ngaged in R&D of pharmaceuticals, vaccines, and consumer healthcare products, and drug innovation, manufacturing and medical journals • Contributed for 33.6 % of revenues in 1H19* Corporate C ustomers - 34 in 1H 1 9* • Charity organizations, natio
Slide 24: Alliances & Partners
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Slide 25: Competitive Strength
25 Competitive Strength Reliable professional content production Acknowledged by leading pharmaceutical corporations High - quality, timely and original medical information Cost - effective access to users Well organized and easy - to - use websites and Apps High - level and small - class teaching o
Slide 26: Growth Strategy
26 Growth Strategy 01 Brand Recognition • Build up MDMOOC as the leading single brand for healthcare information, education, and training for professionals and Sunshine Health Forums as the leading brand for online healthcare information forums • Pursue a brand development strategy through online an
Slide 27: Industry Analysis
27 4 INDUSTRY ANALYSIS
Slide 28: Industry Overview
28 Industry Overview Healthcare is the largest sector of the Chinese economy * China Health Statistics Yearbook ( by the end of 2018 ) 950 974 981 984 983 987 1,004 920 930 940 950 960 970 980 990 1000 1010 2012 2013 2014 2015 2016 2017 2018 China’s Healthcare Institutions* (‘000) 1,639 28% 2,494 43
Slide 29: Latest Industry Trends
29 Latest Industry Trends *According to the China Big Health Industry Development Report 2018 Healthcare Trends* • The Chinese government is promoting healthy lifestyle for the public • The need for integrated services for the prevention and treatment of chronic diseases and the need to maintain peo
Slide 30: Peer Valuation
30 Peer Valuation Price Mkt Cap EV BVPS P/B Company Name Ticker 12/4/19 ($M) 12/4/19 (MRQ) TTM FY19E FY20E TTM FY19E FY20E TTM FY19E FY20E TTM FY19E FY20E (MRQ) TAL Education Group TAL $44.24 $26,138 $26,229 $4.23 $0.34 $0.33 $0.89 130.1x 134.1x 49.7x $2,950 $3,500 $4,720 8.9x 7.5x 5.6x 10.5x New Or
Slide 31: Financial Highlights
31 5 FINANCIAL HIGHLIGHTS
Slide 32: Financial Highlight
32 9,816 12,866 5,232 6,988 10.7% 25.5% 10.1% 18.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2017 2018 1H18 1H19 Revenue Operating Margin Financial Highlight Revenues ($’000) and Operating Margin (%) $ 7.0 Million 1H19 Revenues
Slide 33: Income Statement
33 Income Statement Income Statement (US$ thousands, except per share data) 2017 2018 1H18 1H19 Revenues 9,816 12,866 5,232 6,988 Cost of revenues (3,970) (4,456) (1,737) (2,237) Gross profit 5,846 8,410 3,495 4,750 Selling and marketing expense (2,715) (2,261) (1,456) (1,304) Gen eral and administr
Slide 34: Balance Sheet
34 Balance Sheet (US$ thousands) 12/31 2017 12/31 2018 06/30 2019 Cash and cash equivalents 2,979 7,919 6,558 Short - term investments 1,812 1,164 437 Accounts receivable 1,302 1,993 5,128 Prepayments 2 563 426 Other current assets 306 923 818 Total current assets 6,400 12,561 13,367 Property and eq
Slide 35: Statement of Cash Flows
35 Statement of Cash Flows Statement of Cash Flows (US$ thousands) 2017 2018 1H18 1H19 Net income 1,495 3,001 551 1,709 Depreciation and amortization expenses 16 39 14 47 (Reversal of) share - based compensation (benefits) expenses 111 (14) 54 77 Deferred tax expenses (benefits) (154) 61 (79) (42) C
Slide 36: Thank You!
Thank You ! At the Company: James Yang, CEO yangweiguang@mdmooc.org +86 135 8185 4518 Investor Relations: Tony Tian, CFA ttian@weitianco.com +1 732 910 9692 At the Underwriter: Steven Sun jsun@netw1.com +1 973 204 9757 At the Company: Vivi Xu , C F O xupei @mdmooc.org +86 1 39 1772 9098