file hinh anh shineway

7/31/2019 File Hinh Anh Shineway

1/31

HKEx Stock Code: 2877

Annual Report Presentation 2011 20120326P

ANNUAL RESULT 201127 March 2012


2/31

HKEx Stock Code: 2877 2

1. Overview

2. Financial Highlights

3. Business Operation

4. Outlook


3/31



4/31


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


5/31


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


6/31


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


7/31



8/31


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)


9/31


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


10/31


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


11/31


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


12/31


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


13/31



14/31


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.jpg


15/31


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
http://www.shineway.com.hk/big5/images/business/injection/1.jpg


16/31


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


17/31


Huamoyan Granule

Qing Kai Ling Soft Capsule

Huang Qi Injection

Shujin Tongluo Granule

Jiangzhi Tongluo Soft Capsule

Xiesaitong Dripping Pills

Other Products


18/31


436386

340 328

1,2751,142

Yr 2011 Yr 2010

Others

Granules

Soft Capsules

Injections

Revenue by Product

58%

22%

17%

63%

19%

16%


19/31


Yr 2011 Yr 2010

Other Products

Anti-viral

Cardiovascular

Revenue by Type

20.9%

37.4%

41.7%47.4%

28.7%

23.9%


20/31


Yr 2011 Yr 2010

OTC

Prescription

Revenue by Distribution

20%

80%

21%

79%


21/31


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


22/31


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


23/31


Medical Reform

Support the Chinese Medicine Industry

New GMP Requirements

Support Research and Development

Essential Drug List

National Drug Reimbursement List

Government Policies


24/31



25/31


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


26/31


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


27/31


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


28/31


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


29/31


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


30/31

HKEx Stock Code: 2877 30HKEx Stock Code: 2877

THANK YOU

ANNUAL RESULT 201127 March 2012


31/31

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.

file hinh anh shineway

Documents