Golden Meditech Holdings Limited. Corporation Presentation (July 2014)

Transcription

1 Golden Meditech Holdings Limited Corporation Presentation (July 2014)

2 Disclaimer Data and information contained in this presentation is provided for informational purposes only. Golden Meditech Holdings Limited takes no liabilities for any errors or delays in the content, or for any actions taken in reliance thereon. This presentation and subsequent discussions may contain forward-looking statements that are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of Golden Meditech Holdings Limited about its businesses and the industries and markets in which it operates. These forward-looking statements include, without limitation, statements relating to revenues, earnings and stock performance. The words believe, intend, expect, anticipate, project, estimate, predict and similar expressions are also intended to identify the forward-looking statements. These statements are not guarantees of future performance and are subject to various risks and uncertainties, including, but not limited to, changes in legal, financial and regulatory frameworks, actual demand, exchange rate fluctuations, market shares, competition, environmental risks, international economic and financial market conditions, project approval, cost estimates and other risks, which are beyond the control of Golden Meditech Holdings Limited and are difficult to predict. Consequently, future financial results could differ materially from those expressed or forecasted in the forward-looking statements. 2

3 Company Profile A leading integrated healthcare enterprise, focuses on China s healthcare industry and its core operations are categorized into two segments: Healthcare Services Segment Hospital Management Business Owns and operates Beijing Qinghe Hospital ( Qinghe Hospital ) and Shanghai East International Medical Centre ( SEIMC ) through GM Hospital Group Qinghe Hospital located in Beijing s Haidian District, has started trial run since December Providing broad range of medical disciplines and offering 600 beds. Aiming to provide high quality and comprehensive healthcare services to general public in Beijing SEIMC, renowned international hospital brand. Providing premium healthcare services in vicinity of Shanghai Cord Blood Storage Business China Cord Blood Corporation ( CCBC ), largest cord blood bank operator in China. Golden Meditech is the founding and largest shareholder of its subsidiary Medical Insurance Administration Business Pioneering medical insurance administration solutions provider in China, providing claim process and bill settlement services through GM-Medicare Medical Devices Segment Beijing Jingjing Medical Equipment ( BJJJ ), leading medical devices manufacturer in China. Develops, manufacturers, sells and distributes blood-related medical devices in China 3

4 Proven Track Record of Excellence Beijing medical devices production facility obtained GMP certification and commenced production Strategic investment in FunTalk China, valued at RMB$460m New cord blood storage facility in Guangdong Province commenced operation Entered into hospital management business Established GM- Medicare, a JV with SynerMed & EHS providing medical insurance information management solutions and back-office BPO KKR Invested US$65m in CCBC through subscribing 7% CB due 2017 Increased shareholding in medical devices division to 95.1% Established new distribution business for imported high-end overseas medical devices Guangdong and Zhejiang new cord blood storage facilities scheduled to open in first half of fiscal year Entered into agreement to dispose entire interest in Fortress IPO of Golden Meditech on the GEM of HKEx (Stock Code: 8180) 2002 Beijing cord blood bank commenced operation Expanded cord blood bank operation into Guangdong Province New cord blood facilities in Beijing opened for use NYSE listing of China Cord Blood Corporation (CO) NASDAQ listing of FunTalk China (FTLK) Transferred listing to HKEx main board (Stock code: 801.HK) Completed acquisition of hospital management operation Listed on TWSE through Taiwan Depositary Receipt offering Obtained approval to establish new cord blood storage facility in Zhejiang Province Entered into premium healthcare services by acquiring SEIMC in Shanghai FTLK privatized, the Group sold 3% interest in Fortress for US$15m Beijing Qinghe Hospital with 600 beds began its trial run in December

5 Business Structure Golden Meditech (801.HK; TW) Medical Devices Segment Healthcare Services Segment Strategic Investment China Cord Blood Corporation (NYSE: CO) GM Hospital Group GM-Medicare Management (China) Co., Ltd. Chinese Herbal Medicine Business NB: Entity highlighted in Blue represents publicly-listed entity 5

6 Business Model Hospital Management Company Medical Devices Cord Blood Banks HOSPITALS Target Customers General Public INSURANCE COMPANIES GM Medicare Serves as the bridge between insurance companies, hospitals and patients by providing claims processing and bill settlement services 6

7 FY13 / 14 Highlights Major Developments: Qinghe Hospital has started trial run since December 2013, expect to contribute stronger cash flow to the Group CCBC s new storage facilities in Guangdong and Zhejiang are expected to be in use from 1H-FY15 to speed up penetration in both markets Capitalise on existing business platforms to distribute AXP System, an automated device used for extracting blood stem cells from cord blood Disposed of entire Fortress shareholdings to Sanpower Group for consideration over US$100 M. To share part of the proceeds with shareholders in the form of special dividend of HK3 cents per share and bonus warrants. Rest of the proceeds to be used for core businesses development Restructured hospital management business to sustain long-term development. Increased shareholdings in GM Hospital Group to 82.7%, and made non-cash impairment provision on underlying intangible assets and trade receivables in accordance with current accounting standards Undertook open offer with over 90% shareholders applied and excess offer shares was over-subscribed by over 35 times The Board recommended final dividend of HK2.6 cents per share and continue to adopt relatively stable dividend policy Annual results of core businesses in-line with management s expectations with significant operational improvements. FY13/14 total revenue 0.6% to HK$1,085,068,000 Loss attributable to equity shareholders of the Company totaled HK$429,081,000, while basic loss per share was HK33.6 cents Loss was results of: I. Non-operating fair value losses on accounting treatment of financial assets and financial liabilities II. One-off impairment losses on certain financial assets, intangible assets and share of losses of a joint venture Excluding such losses, adjusted profit attributable to equity shareholders of the Company 18.5% to HK$86,464,000 7

8 FY 13 / 14 Results Summary HK$ 000 For the year ended Change % 31 March March 2013 Turnover Cord Blood Storage Service Income Hospital Management Service Income Medical Insurance Administration Service Income Medical Devices and Accessories Distribution and Sales Chinese Herbal Medicine Sales 722,167 71,181 4, ,201 12, , ,930 2, ,242 25, (43.9) (1.1) (50.7) 1,085,068 1,079, Share of Profits of An Associate 39,573 83,714 (52.7) Other One-off Impairment Losses (net of associated tax impacts) Changes in Fair Value of Financial Assets and Liabilities (468,616) - N/A (385,381) (18,952) 1,933.5 (Loss) / Profit After Tax (712,864) 208,767 N/A Adjusted Profit After Tax* 141, ,719 (38.0) (Loss) / Profit Attributable to Equity Shareholders (429,081) 135,606 N/A Adjusted Profit Attributable to Equity Shareholders* 86, ,062 (18.5) (Loss) / Earnings Per Share (Basic) HK(33.6) cents HK12.7 cents N/A Adjusted Earnings Per Share # HK6.8 cents HK9.9 cents (31.3) *Excluding loss due to fair value changes of financial assets and liabilities, and one-off impairment losses and their associated tax impacts # Based on Adjusted Profit Attributable to Equity Shareholders of the Company 8

9 Strong Balance Sheet HK$ 000 FY 13 / 14 FY 12 / 13 Total Assets 9,613,145 9,701,460 Total Assets less Current Liabilities 8,111,649 8,210,950 Total Equity Attributable to Equity Shareholders of the Company 4,492,861 4,465,441 NAV per share (HK$) Cash and Bank Deposits 2,797,974 2,164,424 Gearing Ratio 27.7% 26.6% Total interest-bearing debts stood at HK$1,618,700,000 (2013: HK$1,629,520,000) Satisfactory financial position with sufficient capital and financial resources to meet future business development needs. From a long-term perspective, the management is committed to maintain an optimal and stable debt ratio to achieve maximum capital efficiency 9

10 Highlights of Healthcare Services Segment Healthcare Services (HK$ 000) 800, , , , ,121 4,941 71, , , ,167 FY 12 / 13 FY 13 / 14 Medical Insruance Administration Hospital Management Cord Blood Storage Financial Performance of Qinghe Hospital Expected to be Greatly Improved Revenue from healthcare services segment increased by 2.8% to HK$798,289,000. Revenue generated from cord blood storage business, hospital management services and medical insurance administration business were HK$722,167,000, HK$71,181,000 and HK$4,941,000 respectively Qinghe Hospital has started trial run since December Financial of hospital management business is expected to be greatly improved CCBC achieved higher market penetration in targeted markets 10

11 Highlights of Healthcare Services Segment Hospital Management Business Beijing Qinghe Hospital has started trial run since December 2013 Located at Beijing s Haidian District with total floor area of approximately 75,000 m 2 Designed to meet highest healthcare standards in Mainland China, specialised not only in haematology but also provides a broad range of medical disciplines such as O&G, paediatrics, ophthalmology and dentistry Offering 600 beds of which 48 beds are haematology wards, to provide comprehensive and high quality hospital services to patients Work seamlessly with Peking University People s Hospital for securing employment of highly competent medical personnel and provision of quality hospital services Expect financial performance will be greatly improved SEIMC has continued to deliver contributions in-line with management's expectations and is expected to further extend market share through renowned brand Restructured management service contracts with a view to sustaining healthy growth of hospital management business Increased its shareholdings in GM Hospital Group to 82.7% Made non-cash impairment provision of HK$448,048,000 and HK$61,698,000 respectively on the underlying intangible assets and trade receivables in accordance with current accounting standards Fundamentals of Qinghe Hospital and SEIMC remain strong and not affected by such non-cash impairment losses The Group will save around HK$18million amoritsation charge on intangible assets each year 11

12 Highlights of Healthcare Services Segment Cord Blood Storage Business Revenue increased by 11.6% to HK$722,167,000 Successfully implemented new marketing strategies to recruit targeted premium clientele, resulting in increasing cash flow Focused on mid-high end market, recruited over 376,000 accumulated subscribers, with over 64,000 new subscribers signed up Speed up penetration in Guangdong and Zhejiang markets where combined scale is 5 to 10 times larger than Beijing market Guangdong and Zhejiang new storage facilities are expected to be in use from 1H-FY15 Relaxed one-child policy, allowing couples for second child if one of them is single child. Promote a balanced mix of population, driving market for cord blood storage to grow and create future demand 12

13 Highlights of Healthcare Services Segment Medical Insurance Administration Business Established in April 2010, GM-Medicare Management (China) Co., Ltd., a pioneer specialized in providing medical insurance administration solutions Serves as a missing link by providing claim process and bill settlement services to medical insurance companies, hospitals and policy holders Devoted ample resources to enhance claim administration system and explore any market opportunities Obtained higher market recognition and seeking closer collaborations with insurance companies and local governments At early stage of development, expect healthcare reforms will generate vast opportunities for business to grow substantially 13

14 Highlights of Medical Devices Segment Medical Devices (HK$ 000) 300, , ,206 4, ,202 Medical Devices and Accessories Distribution Medical Accessories 100, , ,207 Medical Devices 0 FY 12 / 13 FY 13 / 14 Capitalise on Solid Business Platforms to Develop Distribution Business Revenue amounted to HK$274,201,000, slight decrease of 1.1%, accounting for 25.3% of Group s total revenue Sales of medical devices, sales of medical accessories and distribution of medical devices and accessories accounted for 52%, 46% and 2% of segment s revenue respectively. Sales of medical accessories continue to maintain double digit growth Gained production and price advantages to develop and manufacture blood related medical devices in Mainland China Capitalise on existing business platforms to distribute AXP System, an automated device developed by Cesca Therapeutics Inc. used for extracting blood stem cells from cord blood 14

15 Strategic Investments Fortress Group Limited Disposed of 2,942 ordinary shares, representing approximately 27.9% of the issued share capital of Fortress to Sanpower Group Limited ( 三 胞 集 團 有 限 公 司 ) for a consideration of US$101,264,437 (equivalent to approximately HK$789,862,611) Share part of the proceeds with shareholders in the form of special dividend of HK3 cents per share and bonus warrants Rest of the proceeds will be used for core healthcare businesses development, as part of long term development plan Chinese Herbal Medicine Business Management undertook cost control measures and ceased overseas operations to mitigate losses Exploring all options to unlock the commercial value of the Shanghai production facility 15

16 Company Outlook Healthcare Services Segment Qinghe Hospital to contribute stronger cash flow to the Group CCBC to further increase market penetration in Beijing, Guangdong and Zhejiang province GM-Medicare to enhance market recognition and gain collaborations with insurance companies and local governments Medical Devices Segment Leverage on healthcare reforms to drive the sales of core medical devices and accessories in Mainland China Capitalise on existing business network to distribute high quality imported medical devices 16

17 Investor Relations Department Tel: Website: 17