Phoenix Healthcare Group Co. Ltd (Stock code : 1515) 2014 Full Year Results Overview

Transcription

1 Phoenix Healthcare Group Co. Ltd (Stock code : 1515) 014 Full Year Results Overview

2 014 Full Year Results Overview The largest private healthcare group in China 1 No.1 in Beds in Operation No. 1 in Total Patient Visits 014 Revenue increased 35.9% to RMB1,06m (013: RMB887m) 014 Net income increased 149.1% to RMB40m (013: RMB96m) Extensive hospital network serving whole of Beijing 1 11 Comprehensive hospitals Specialty hospitals 8 Community clinics EBITDA increased 6.6% to RMB314m (013: RMB48m 3 ) Total no. of patient visits increased 14.9% to 3.93m (013: 3.4m patient visits) Operating beds increased.0% to 3,390 (013: 3,33 operating beds) Capturing the growth opportunities brought by China's public hospital reform Citic Trust RMB00 m loan was fully repaid in January As of 31 December 014 EBITDA calculated as profit before tax + finance costs + total depreciation and amortization - interest income on bank deposits and short-term investments 3 Exclude IPO related expenses

3 Innovative Business Model Capturing Multiple Parts of the Value Chain and Realizing Synergies Jian Gong Hospital IOT Hospitals Commercialize the Value Chain of Healthcare Service ( 产 业 化 ) Identify key parts in the healthcare service value chain and transform them into commercial benefits Centralize procurement of supplies and equipments Economies of Scale Supply Chain Services and Ancillary Services Better Efficiency and Care Quality Standardize Practices and Information System at Group Level ( 标 准 化 ) Adopt group-wide best practices Standardize and use of advanced information technology Improvement in quality of care Synergies and efficiency benefits Resource Sharing ( 资 源 共 享 ) Share human resources and medical knowledge across in-network hospitals Commercializing other parts of the healthcare value chain 3

4 Operational Results Overview 11 General hospitals Specialty hospitals 8 Community clinics Total Out-patient and In-patient Visits Total Number of Beds in Operation ( 000) 3,050 3,43 3,935 3,194 3,33 3,390,56 1,366,891,897 Group Average In-patient Spending per Visit Group Average Out-patient Spending per Visit (RMB) 15,413 16,007 (RMB) ,548 14,074 14, Source : Company 4

5 Achieved Year on Year Improvement on All Fronts Jian Gong Hospital Yan Hua Hospital Group Mentougou Hospital Jing Mei Hospital Group MTG TCM Hospital MTG women and children hospital % change from % change from % change from % change from % change from % change from Total patient visits 758, % 947, % 68,58 1.0% 1,000, % 467, % 131,744.% In-patient visits 11, % 16, % 10,01 9.9% 19,531.3% 1, % 1,0 9.5% Average in-patient spend per visit (RMB) 17, % 15, % 14, % 16, % 10, % 3,98 0.7% Out-patient visits 747, % 931, % 618, % 981, % 466, % 130,7.1% Average out-patient spend per visit (RMB) Average length of stay (days) Beds occupancy rate (%) 449.4% % 353.0% % % % % % % % % % 77.5% 3.9% 101.3% 16.0% 70.9%.6% 98.6% -1.3% 60.6% 10.6% 6%.% Number of beds in operation (beds) % 663 No Change % 1,738 No Change 100 No Change 7-5.0% Source : Company 5

6 Industry Update Unprecedented opportunities for Phoenix Healthcare 015 will be a year for further deepening reforms for the Chinese healthcare industry. Pilot schemes at both municipal and county public hospitals will be expanded, bringing in unprecedented opportunities of healthcare investment Document No. 40 by the State Council By 00, the total size of the health service industry is expected to reach more than RMB 8 trillion Active healthcare services development through: Encourage businesses, charities, foundations, commercial insurance institutions to actively invest in new projects, participate in restructuring, custody, joint private/public operation and other forms of investment. Strongly support private/social capital to run non profit-taking medical institutions or to provide basic health services. Further deregulate Sino-foreign JV and partnership conditions, and gradually expand pilot medical projects wholly-funded by qualified foreign investors Promote the development of professional and standardized healthcare services. Support clinical care services pricing adjustment to better reflect service cost and the value of skilled medical practitioners Summary of health care reforms, 18 th Third Plenary Session Deepen medical and pharmaceutical healthcare system Reduce / cancel overall medical cost being subsidized / paid for from drugs sales, rationalize pharmaceutical prices, and establish a scientific compensation mechanism. Accelerate and optimize medical insurance and subsidy system for serious illnesses Encourage medical services by private/social capital. Priority to be granted to non-profit-taking institutions. Private/social capital may directly invest into areas of scarce resources and diverse needs; Various forms of participation into public hospital restructuring and reorganization are accepted; Allow physicians to provide services at multiple sites/hospitals; Government health insurance reimbursement extended to cover private hospitals Summary of Report on Budget Draft by Central and Municipal Governments in 015 In 015, central government s budget for healthcare and family planning amounts to RMB93.1 billion, an annual increase of 11% Summary of 015 State Council Government Work Report Improve the fund-raising system under which governments, units and individuals to reasonably share basic medical insurance cost; for urban and rural residents, basic government medical subsidies to increase to RMB380 per capita Expand general reform/reorgansiation schemes to cover urban public hospitals Withdraw the system under which medical cost to be compensated by drugs sales, rationalize pharmaceutical pricing, innovate medical operation run by social capital Basic public services subsidies to be increased to RMB40 per capita Summary of Beijing Medical Institutions Setup Planning Increase medical resources utilization, number of beds to increase from 4.9 to 5.5 per thousand population. It is expected that Beijing will have an additional 10,000 to 0,000 beds over the next four years Key support for private institutions to invest and build medical facilities to meet the demand for higher-end and more comfortable medical services Within the 5 th -ring road in Beijing, new hospital construction and renovation will not be allowed so as to control the blind expansion of public hospitals 6

7 Our Revenue Model Innovative Business Model Revenue Model Provide healthcare services Jian Gong Hospital General Healthcare Service Revenue Patients Pay fees IOT Hospitals Management Fee Procurement of pharmaceuticals, medical devices and medical consumables Supply of pharmaceuticals, medical devices and medical consumables Supply Chain Business Supply Chain Revenue 7

8 Financial Performance Overview Revenue Gross Profit and Gross Profit Margin ,06 3.6% 4.1% 4.4% % % EBITDA 1 & Margin Net Income Attributable to Shareholders & Margin 1.5%.1% % 8.0% % % 9.4% % % % adjusted adjusted EBITDA calculated as profit before tax + finance costs + total depreciation and amortization - interest income on bank deposits and short-term investments Exclude IPO related expenses Source : Company 8

9 Revenue of each Segment 014 Revenue by Segment Segment Revenue Growth Total revenue: RMB 1,06 million General Healthcare Services Supply chain business 50.% General Healthcare Service 44.8% Hospital Management Services Hospital management services 5.0% Supply Chain Business External revenue Inter-segment revenue Source : Company 9

10 General Hospital Services General Hospital Services Segment Performance General Hospital Services Segment Revenue Reported segment revenue COGS (8) (59) (39) (385) (454) 403 Gross profit Gross profit margin 0.9% 0.0% 18.4% 18.% 16.0% Segment results Segment margin 13.4% 1.7% 10.1% 9.% % 1 Restated in 014 Source : Company 10

11 Hospital Management Services Hospital Management Services Segment Performance Segment Revenue of Each Hospital 60.1 Reported segment revenue % COGS (Amortisation charges) (1.5) (3.) (1.4) (14.1) (14.6) % % Gross profit % % % Gross profit margin Segment results 90.8% 83.5% 69.3% 65.5% 75.7% % 9.8% % % % 5.1% % Segment margin 84.8% 99.% 66.0% 48.1% % Yan Hua Hospital Group Jing Mei Hospital Mentougou Hospital Mentougou Traditional Chineese Medicine Hospital 1 Restated in 014 Source : Company 11

12 Supply Chain Business Supply Chain Segment Performance Supply Chain Revenue from Each Hospital 1 Adjusted Gross Profit and Adjusted Gross Profit Margin (RMB million) 777 Reported segment revenue COGs (133) (3) (348) (379) (616) Gross profit Gross profit 11.8% 15.8% 19.% 0.9% 1.% margin Adjusted gross profit Adjusted gross profit 11.8% 15.8% 14.4% 15.3% 15.7% margin Segment results Segment margin % 14.0% 3.9% 9.7% 4.9% % 58.8 % %.9% 59.8% % 0.5% 5.5% % 39.6% % 4.1% 8.1% 15.8% 30.3% % 5.3% 7.7% 14.7% 9.6% Yan Hua Hospital Mentougou Hospital Jing Mei Hospital Mentougou Traditional Chinese Medicine Hospital Jiang Gong Hospital and other sales 15.8% 11.8% % 15.3% % 74.4% % 63.5% 17.0% 166 Segment gross profit Free income Fee Income 15.7% 0.% 79.8% 1 Reported segment revenue before inter segment elimination Adjusted segment revenue = segment revenue + pharmaceuticals purchased by Jian Gong Hospital, Yan Hua Hospital and Jing Mei Hospital from suppliers other than Beijing Wanrong; Adjusted gross profit = segment gross profit + fee income; Adjusted gross profit margin = adjusted gross profit / adjusted segment revenue Source: Company 1

13 Why Invest in PHG? Largest Private Hospital Group in China with Unparalleled Growth Prospects Industry Reform with Significant Growth Potential 1 Fast-Growing Healthcare Service Market Key Competitive Advantages and Track Record 1 Largest Private Hospital Group in China Huge Potential for Public Hospital Reform, Supported by Government Policy 3 Beijing: The Leading Healthcare Service Market in China Successful Track Record in Hospital Reform and Management Well positioned to capture huge growth potential for healthcare service in China and become the leading hospital group in Asia 3 Innovative Business Model 4 Strategic Focus on Beijing, the Largest Healthcare Market in China 5 Experienced Management Team and Professional Experts 13

14 Future Strategy and Development Plan Innovation and the development of clinical service have been the major driving force behind our success. Over the next 3 5 years, our overall development objective would be to advance from a hospital group to a healthcare medical group, and from a hospital management operations to a healthcare service operation 1 3 Deepen public hospitals reforms and take control of core resources Construct collaborative healthcare system and explore partnerships opportunities with the medical insurance service providers Further explore and develop aging-related industry and explore combined treatmentnursing care services Leverage on PHG s core operational and management expertise to capture the opportunities that arise from the deepening of public hospitals reforms Further participate public hospital reforms through deepening of both breadth and depth, and accelerate PHG s investment and control of its core resources Pave the basis of PHG becoming a large-scale healthcare medical group, so as to further foster our sector leading core competitiveness. Through designing the layout of basic healthcare and rehabilitation care services, establish a collaborative and integrated healthcare operations system Continue to further enhance the capacity and quality of PHG s clinical care, so as to provide patients with better treatment experience as well as expand the number of patients receiving PHG s service On the basis of a collaborative healthcare system, PHG to further explore the new and innovative HMO model through cooperating with insurance service providers, and to develop commercial medical insurance and medical insurance trust collaborations, pioneering the blue ocean strategy of the healthcare service industry Supported by the increasing abundance of medical resources and cost-controllable investment opportunities, PHG to further explore extending its medical services to cover the care specifically for the aged In addition to providing an integrated treatment and nursing care services for the aged, PHG to explore opportunities on aging and pension fund related innovative financial products, thereby expanding services for senior people as well as the value chain creation of our Group in an effective manner 14

15 Appendix: Jian Gong Hospital Operation Overview Out-patient Visits In-patient Visits Operational Beds Average Out-patient Spend Average In-patient Spend Average Length of Stay (RMB) (RMB) (Day) , ,558 1,961 1,38 13, 资 料 来 源 : 公 司

16 Appendix: Yan Hua Hospital Operation Overview Out-patient Visits In-patient Visits Operational Beds Average Out-patient Spend Average In-patient Spend Average Length of Stay (RMB) (RMB) (Day) , ,30 14,86 1,448 1, 资 料 来 源 : 公 司

17 Appendix: Jing Mei Hospital Operation Overview Out-patient Visits In-patient Visits Operational Beds ,446 1,500 1,618 1,738 1,738 Average Out-patient Spend Average In-patient Spend Average Length of Stay (RMB) (RMB) (Day) , ,396 17, ,746 16, 资 料 来 源 : 公 司

18 Appendix: Mentougou Hospital Operation Overview Out-patient Visits In-patient Visits Operational Beds Average Out-patient Spend Average In-patient Spend Average Length of Stay (RMB) (RMB) (Day) ,715 13, ,079 13, , 资 料 来 源 : 公 司

19 Appendix: Mentougou Traditional Chinese Medicine Hospital Operation Overview Out-patient Visits In-patient Visits Operational Beds Average Out-patient Spend Average In-patient Spend Average Length of Stay (RMB) (RMB) (Day) 34 10,589 10, , , , 资 料 来 源 : 公 司