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7/31/2019 File Hinh Anh Shineway
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HKEx Stock Code: 2877
Annual Report Presentation 2011 20120326P
ANNUAL RESULT 201127 March 2012
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1. Overview
2. Financial Highlights
3. Business Operation
4. Outlook
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The Largest Chinese medicine injection and soft capsule
manufacturer in China (by sales volume & production capacity)
Manufacturing facilities are located in Shijiazhuang, Lang Fang,
Zhangjiakou and Pengzhou with 4,063 employees
43 medicines are included in the Essential Drug List
Shijiazhuang,Hebei
Lang Fang,Hebei
Zhangjiakou,Hebei
Pengzhou,Sichuan
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Turnover: RMB 1,984 million, decreased by 2.6%
Gross profit: RMB 1,302 million; , decreased by 9.3%
Gross Margin: 65.6%, reduced by 4.8 percentage pointProfit for the year: RMB 756 million; decreased by 8.1%
Profit after tax: decreased by 7.4% if excluding the exchange loss
Earnings per share: decline from RMB 99 cents to RMB 91 cents
Proposed Dividend: RMB 26 cents per share
Financial Overview (2011)
REMARK: 2011 2010
Interim Dividend RMB 11 Cents RMB 11 Cents
Proposed Final Dividend RMB 12 Cents RMB 12 Cents
Proposed Special Dividend RMB 14 Cents RMB 17 Cents
RMB 37 Cents RMB 40 Cents
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Focus on three products: injections, soft capsules and granules
Shineway Modern Chinese Medicine Park (Hebei):
Injection Workshop: Final testing stage
Extraction Workshop: Late 2012
Business Development
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RMB (In millions) Year 2011 Year 2010 Change
Turnover 1,984 2,038 -2.6%
Gross Profit 1,302 1,435 -9.3 %
Gross Margin 65.6% 70.4% -4.8 percentage point
Profit for the year 756 822 -8.1 %
EPS (RMB Cents) 91 99
Dividend per Share (RMB
Cents)37 * 40*
*Interim Dividend RMB 11 Cents (2010: RMB 11 Cents)Proposed Final Dividend RMB 12 Cents (2010: RMB 12 Cents)Proposed Special Dividend RMB 14 Cents (2010: RMB 17 Cents)
RMB 37 Cents (2010: RMB 40 Cents)
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RMB (In millions) Year 2011 Year 2010
Cash on Hand 2,173 2,349
Trade Receivables 13 7
Bills Receivables 404 264
Inventories 283 192
Total Assets 4,377 3,972
Bank Loan - -
Total Liabilities 722 743
Shareholders Equity 3,654 3,230
Balance Sheet Highlights
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RMB (in millions) Revenue % of Total Revenue
Products Yr 2011 Yr 2010 Yr 2011 Yr 2010
Injections 1,142 1,275 58% 63%
Soft Capsules 436 386 22% 19%
Granules 340 328 17% 16%
Others 66 49 3% 2%
Overall 1,984 2,038 100% 100%
Product Mix
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Gross Margin reduced by 4.8 percentage point to 65.6 %
Attributable factors
Price cut
Herb costs increased Slight change in product mix
Gross Margin
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Year 2011 Year 2010
RMB
(in millions)
% of
Turnover
RMB(in millions)
% of Turnover
Distribution Cost 255 12.9% 350 17.2%
Admin Expenses 229 11.6% 197 9.7%
R&D Expenses 57 2.9% 22 1.1%
Exchange (Gain)/Loss 3 (2)
Major P&L Items
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45 medicines in regular production
27 prescription medicines
18 OTC medicines
Own over 180 production permits of medicine formula
43products are included in the Essential Drug List
9 products are designated as State Protected Chinese Medicines
4products are designated as Good Quality / Good Price
Shineway and Wu Fu are China Famous Trademarks
Product Portfolio
http://www.shineway.com/cn/swcp/cpsy/images/20070818/300.jpghttp://www.shineway.com/cn/zszq/xzs/xmgj.jpghttp://www.shineway.com/cn/swcp/cpsy/images/20070818/338.jpg7/31/2019 File Hinh Anh Shineway
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Qing Kai Ling Injection
Largest supplier in China
70% market share
A prescription anti-viral medicine
Included in the National Reimbursement List and EssentialDrug List (2009)
A Must-have Chinese medicine in emergency rooms ofChinese hospitals
Suggested treatments for human Avian Flu and A-H1-N1 fluby Ministry of Health
Recognized as a Good Quality / Good Price product
Continue to tap into the large market potential in the ruralareas via the EDL program
Shen Mai Injection
Largest supplier (by volume) in China
35% market share in China
A prescription drug for treatment of Cardiovasculardiseases
Included in the National Reimbursement List andEssential Drug List (2009)
Suggested treatments for human Avian Flu by Ministry of
Health
Leverage the strong brand recognition to penetrate thenew geographic areas
Continue to tap into the large market potential in the rural areasvia the EDL program
Core Products (Sales of over RMB 100M)
Shu Xie Ning Injection
A prescription drug for cardio-cerebrovascular diseases
State administrative protection till Jan 2012
Included in the National Reimbursement List
Recognized as a Good quality / Good Price product
Well received by distributors and hospitals
Leverage the strong brand recognition to penetrate the newgeographic areas
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Pediatric Qing Fei Hua Tan Granule
An OTC drug for children infected by respiratory relateddiseases
State administrative protection till Jan 2012
Included in the National Reimbursement List Substantial growth potential supported by the enlarged
production capacity and promotion
Xin Nao Qing Soft Capsules
Largest supplier in China
90% market share in China
A prescription drug for treatment of Cardiovasculardiseases
A top 10 TCM oral drug for Cardiovascular diseases
Competitive pricing lowest cost in terms of daily dosage
Currently covered by provincial insurance
high potential to be included in the new National
Reimbursement List
Core Products (Sales of over RMB 100M)
Huo Xiang Zheng Qi Soft Capsule
An OTC product for heat stroke, stomachache, nausea anddiarrhea
Included in the National Reimbursement List
Very popular formula name in China
Strengthen market promotion to increase brand loyalty
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Huamoyan Granule
Qing Kai Ling Soft Capsule
Huang Qi Injection
Shujin Tongluo Granule
Jiangzhi Tongluo Soft Capsule
Xiesaitong Dripping Pills
Other Products
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436386
340 328
1,2751,142
Yr 2011 Yr 2010
Others
Granules
Soft Capsules
Injections
Revenue by Product
58%
22%
17%
63%
19%
16%
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Yr 2011 Yr 2010
Other Products
Anti-viral
Cardiovascular
Revenue by Type
20.9%
37.4%
41.7%47.4%
28.7%
23.9%
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HKEx Stock Code: 2877 20
Yr 2011 Yr 2010
OTC
Prescription
Revenue by Distribution
20%
80%
21%
79%
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10 projects of new products under development, including
3 projects for cardiovascular diseases
2 projects for genitourinary system
1 project for digestive system illness
1 project for gynecological diseases
1 for the treatment of orthopedics
1 for cancer adjuvant illnesses
Joint research project with an university in Australia for Alzheimers diseases is progressingas planned
Research & Development
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CurrentCapacity
End of 2012Annual Capacity
Extraction 10,000 Tons 20,000 Tons
Injections 2 Billion Vials 3.2 Billion Vials
Soft Capsules 3.5 Billion Capsules 3.5 Billion Capsules
Granules 3.4 Billion Bags 3.4 Billion Bags
Production Capacity
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Medical Reform
Support the Chinese Medicine Industry
New GMP Requirements
Support Research and Development
Essential Drug List
National Drug Reimbursement List
Government Policies
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43 products are included in the Essential Drug List Re-evaluation of Chinese medicine
Increase of production capacity:
Shineway Modern Chinese Medicine Industrial Park (Hebei)
Improve sales network and sales staff
Increase the coverage ofcounty-level hospitalsand strategic partnership with OTCdrug stores
Other products:
Shujin Tongluo Granule
Jiangzhi Tonghuo Soft Capsule
Xiesaitong Dripping Pills
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Target on three high growth market the middle and old aged, anti-viral
and children medicines
Increase investments in research and development to form a pipeline of
broad span innovative products
New Injection workshop is now at final testing stage
New Extraction workshopto be completed by the end of 2012
Growth Strategies
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Additional sales staff to cover prescription medicines, OTC
products at the clinic level (such as mining field hospitals, factory
hospitals, community clinics and rural healthcare centers) to
strengthen the support at these points of sales
Delegation of responsibility to regional management Additional training to support the end user network development
Increase promotion to strengthen corporate brands ofShineway,
WuFu,ShenMiao and Beisi
Growth Strategies Market Development
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Work with national and cross regional distributors with strong
distribution capabilities
Work with distributors with strong network of points of sales to
increase the coverage of community clinics and rural healthcarecenters
Host academic seminars and consumer education program to
promote Shineways prescription and OTC products
Growth Strategies Distribution Channels
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Prescription medicine team Commercial team OTC team/Key account team
Shineway Sales
Hospitals and Clinics Pharmacies and Other Retail Outlets
Patients and Consumers
National and Regional Distributors*
Local Distributors
Distribution Channel
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THANK YOU
ANNUAL RESULT 201127 March 2012
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HKEx Stock Code: 2877 31HKEx Stock Code: 2877
All information contained in this presentation is provided for reference only.
Some information relating to forward-looking statements of future events or
future financial, business or development of the Company is subject to
various risks and uncertainties that could cause actual results to differ
materially. Neither the Company nor any of its respective subsidiaries,
directors, employees or advisors, directly or indirectly, gives anyrepresentation or warranty as to the completeness and accuracy of all the
information contained therein (including all the forward-looking statements).
The Company expressly disclaims all the liabilities in respect of any loss
incurred or sustained by the participants of this presentation, their employers,
entities, agents or any of their related parties as a result using the
information contained in this presentation.