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致力健康事业 共创美好生活
Market Growth and Drivers in China Animal Health
Dr Yongsheng Wang Vice President of Jinyu Bio-Technology Co Ltd
General Manager of Jinyu Baoling Bio-pharma Co Ltd
Forward-Looking Statement bull These statements are based upon the current beliefs and expectations of Jinyursquos
management and are subject to significant risks and uncertainties If underlying assumptions prove inaccurate or risks or uncertainties materialize actual results may differ materially from those set forth in the forward-looking statements
bull Risks and uncertainties include but are not limited to general industry conditions and competition general economic factors including interest rate and currency exchange rate fluctuations the impact of industry regulation and animal health legislation in China trends of animal health product cost technological advances new products and patents attained by competitors challenges inherent in new product development including obtaining regulatory approval Jinyursquos ability to accurately predict future market conditions manufacturing difficulties or delays dependence on the effectiveness of Jinyursquos patents and other protections for innovative products and the exposure to litigation including patent litigation andor regulatory actions
bull Jinyu undertakes no obligation to publicly update any forward-looking statement whether as a result of new information future events or otherwise Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in Jinyursquos 2015 Annual Report and the companyrsquos other filings with the Shanghai Stock Exchange (SSE) available at the SSErsquos Internet site (wwwssecomcn)
Personal Experiences bull Vice President of Jinyu Bio-Technology Co Ltd General
Manager of Jinyu Baoling Bio-pharma Co Ltd since May 2014 bull Vice President of MSD (Merck) China and General Manager of
MSD Animal Health China during Jan 2013 to April 2014 bull Worked in Pfizer Animal Health (Zoetis) in different roles as
Director of Public Affairs in APAC General Manager National Sales Manager Regulatory Affairs Manager amp National Technical Service Manager in China during 1997-2012
bull Got PhD degree from China Agricultural University major in Bio-technology of animal reproduction and also had master and bachelor degree in veterinary medicine
Outline
bull Animal Health Market in China
bull Growth amp Key Drivers in China Animal Health
bull Briefing of Jinyu Bio-Technology Co Ltd
Animal Husbandry Industry
Pork 65
Chicken 25
BeefMutton 10
Meat Consumption
bull Animal husbandry is one of major agro-industry bull High output value290 Billion RMB bull 283 of total agro-industry output bull Swine production value account 18 of Agro-industry
Output of main animal products (10000 MT)
Livestock Industry bull Swine
bull Output 7351 million in 2014 27G bull Inventory of sow 4289 million -147G bull Market 1374 pigs per sow per year
bull Cattle bull Inventory 10385 million - 016G
bull Inner Mongolian6250 million -014G bull Dairy
bull Inventory 1420 million -014G bull Inner Mongolian335 million236 of
nation total bull SheepGoat
bull Inventory 28504million 095G bull Inner Mongoliany5144 million 18 of
total bull Sheep Inventory 14367 million29G
bull Inner Mongolian3484 million243 of total
bull Goat inventory 14136 million - 097G bull Inner Mongolian1660 million 117 of
total
Inventory of livestock ( 10000)
Cattle Sheepgoat Pig
Poultry Industry
bull Broiler bull Output 855 MM
-8G bull White-8G bull Yellow-11G
Layer Inventory 1445 MM-1G Grandparent breeding 5124
thousand 6 big farms Parent breeding178 MM No 1 egg production in the
world since 1985
Million
Animal Health Industry bull 2014 total market is 407
billion RMB Bios 104 billion RMB
bull CAGR is 1084 from 2007
to 2014
bull There are 1809 companies for animal health 82 for vaccine
bull Swine amp poultry vaccine dominated vaccine market bull Swine 488 billion RMB account
47 bull Poultry 367 billion RMB
account 354
Animal Health Industry bull Mandatory Vaccine 556 billion RMB
bull FMD AI bull PRRS amp CSF will exit the list from (2017 bull Brucellosis amp Peste des petits ruminants virus (PPRV) will be
added bull Swine vaccine dominated
Mandatory Common Pig
Poultry
Ruminant
Animal Health Industry bull Innovation
bull 2014 investment in RampD is 273 billion 67 of total revenue
35
52
70
28
40
55
68 73
80
0102030405060708090
2010 2015E 2020E
bull Output increase of livestock amp poultry bull MOA issue 2016-2020 development plan for swine and ruminant
industry bull Productive efficiency improve
bull market 19 pigs per sow per year by 2020 bull Ratio of commercial farms increase
Pig Layer Broiler
Growth amp Key Drivers
Growth amp Key Drivers bull Animal health market will growth more than 10
annually bull Need high quality animal health products especially
vaccines bull Vaccines for private market will replace vaccines for
tender market and drive the growth
101112131415161718
0
5
10
15
20
25
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Cost of Swine Vaccines per Pig
Small farm Commercial far Commercial Farm G Small farm G
Growth amp Key Drivers bull Companion animal
market quick growth bull Number of CA growth bull Expenses for CA increment
bull More specific care required (arthritis obesity diabetes) 150 million dog Annual Expense
Market size Growth
100 million