Agenda. Company Profile FY11/12 Highlights Review of Operations Recent Updates on the Group s Businesses Q&A

Transcription

1 FY11/12 FY 2011/1212 Annual Results Presentation (12 Months Ended March 31, 2012) Investor Presentation Jun 2012

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 Agenda Company Profile FY11/12 Highlights Review of Operations Recent Updates on the Group s Businesses Q&A 3

4 Company Profile Golden Meditech Holdings Limited is a leading integrated healthcare enterprise which focuses on China s healthcare industry. It s core operations are categorized into two key segments: The Healthcare Services Segment GM Hospital Group( GMHG ) consists of: The operation of 2 Daopei Hospitals (Beijing& Shanghai), as leading haematology hospitals in China, and pending expansion of Beijing Daopei by 2012 The operation of Shanghai East International Medical Centre ( SEIMC ), providing premium healthcare services in the vicinity of Shanghai Pioneer in specialized medical insurance administration solutions provider in China, GM- Medicare (China) Company Ltd. ( GM-Medicare ) Founding shareholder of China Cord Blood Corporation ( CCBC ), the largest cord blood banking operator in China The Medical Devices Segment Leading medical devices manufacturer in China -Beijing JingjingMedical Equipment Co., Ltd. (Largest Shareholder of BJJJ ) Second largest shareholder of China s leading medical equipment distributor, China National Medical Equipment Industry Corporation ( CMIC ) 4

5 Group Structure Golden Meditech (801.HK; TW) Medical Devices Segment Healthcare Services Segment Strategic Investment Beijing Jingjing Medical Equipment Co., Ltd. China National Medical Equipment Co., Ltd China Cord Blood Corporation (NYSE: CO) GM Hospital Group GM-Medicare Management (China) Co., Ltd. Fortress Group Limited (formerly known as FunTalk China) Chinese Herbal Medicine Business Beijing Daopei Hospital Shanghai Daopei Hospital Shanghai East International Medical Center NB: Entities highlighted in BLUE represents publicly listed entities. 5

6 FY11/12 Highlights Turnover 32%toHK$433.2mm,solidgrowthfromallbusinesssegments RevenuefromHealthcareServicesSegment 84%fromHK$80.4mmtoHK$147.9mmY-o-Y MedicalDevicesSegmentpostedsolidperformance,churninginHK$257.8mminrevenue 5%Y-o-Y CCBCcontributedHK$63.7mm 53%Y-o-Y AdjustedProfitAttributabletoShareholders 13%* Declared a final dividend of HK1 cent (Including shares repurchased, returning approx. HK3.4 cents per share to shareholders, approx. 40% of current year profit after tax) Major progress and breakthrough in hospital management: Acquired Shanghai East International Medical Center( SEIMC ) Acquired new premise for Beijing Daopei hospital expansion- 5 fold of current capacity Group increased stake in hospital management business from 60% to 75% through share swap with New Horizon Capital, which now owns 6.6% of the Group s shares GM-Medicare trial launched in FY11/12, contributing to the Group s revenue for the first time Group disposed 3% stake in Fortress Group Limited(A SPV privatized FunTalk China) for US$15mm in September 2011 subsequent to its privatisation, thereafter, the Group s shareholdings in Fortress became 29.4%. * Excluding the non-cash and non-operating loss of HK$84,523,000 (FY10/11: non-cash and non-operating gain of HK$132,796,000) due to volatility in the global financial markets which led to decline/ increase in the fair value of listed securities and previously issued convertible notes 6

7 FY2011/12 Results Summary HK$ 000 FY2011/12 FY2010/11 % Change Revenues Hospital Management Service Income Medical Insurance Administration Service Income Medical Devices Sales Medical Accessories Sales Sales Income from Chinese Herbal Medicine Business 147, , ,209 27,489 80, ,581 96,170 2,903 83% N/A 3% 8% 847% 433, ,066 32% Share of Profit from Associates China Cord Blood Corporation ( CCBC, CO.US) China National Medical Equipment Industry Corp. (CMIC) Fortress Group Limited (A SPV Privatized FunTalkChina in August 2011) 63,683 11,384 94,509 41,720 7,408 73,811 53% 54% 28% Profit After Tax 171, ,234-52% Adjusted Profit Attributable to Shareholders* 237, ,412 13% Profit Attributable to Shareholders 152, ,208-55% AdjustedEarningsPerShare(Basic) # 12.0 HK cents 12.2 HK cents -2% Earnings Per Share(Basic) 7.7 HK cents 19.9 HK cents -61% *Excluding the non-cash and non-operating loss of HK$84,523,000 (FY10/11: non-cash and non-operating gain of HK$132,796,000) due to volatility in the global financial markets which led to decline/increase in the fair value of listed securities and previously issued convertible notes # BasedonAdjustedProfitAttributabletoShareholders 7

8 Strong Balance Sheet HK$ 000 FY2011/12 FY2010/11 NAV per share (HK$) Total Assets 6,979,375 6,040,692 Total Assets less Current Liabilities 5,393,986 5,718,161 Net Assets Value 4,921,800 4,256,354 Cash and bank balances 819, ,591 Gearing ratio 13.3% 16.0% Cash and bank deposits amounted to HK$820mm(FY2010/11: HK$771mm); total interest bearing debt stood at HK$654mm(FY2010/11: HK$681mm) The Group is in a satisfactory financial position with sufficient capital and financial resources to meet future business development needs 8

9 Highlights of Healthcare Services Segment Healthcare Services (HK$ 000) 600, , , , , ,63 51, ,857 80, , , ,268 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 Strengthening Healthcare Services Segment CCBC separately listed deconsolidated with contribution as affiliate Hospital Management Cord Blood Banking Hospital Management Business reported impressive second full-year revenue since the Group completed the acquisition of the hospital group in June 2009 Group acquired 56% of Shanghai East International Medical Center for US$10mm in cash and shares. SEIMC boasts a strong reputation in municipal Shanghai serving expatriate and high end hospital markets Beijing Daopei Hospital is also due for expansion with a new facility in Haidian District in Beijing. New facility will host 500 beds over a floor area of 74,035 m 2 9

10 Highlights of Healthcare Services Business Summary of Hospital Management Division First foreign company to have a nation-wide hospital management license, to provide hospital management consultancy services Currently operating 3 hospitals: Daopei Hospitals - 2 largest privately-owned haematology hospitals in China, in Beijing and Shanghai with 100 beds each(beijing Daopei Hospital expansion see below) Shanghai East International Medical Center (completed acquisition in August 2011) to penetrate high-end expatriate market Group increased stake in hospital management company from 60% to 75% by share swap with New Horizon Capital (131,756,756 shares of the Group s at HK$1.48). New Horizon Capital owns 6.6% interest in Golden Meditech Holdings as of today Acquisitions complementary with core strategy to achieve long-term growth and become a leader in China s hospital management industry both through organic growth and strategic expansion Total number of beds including SEIMC and New Hospitals will be close to 700 beds by 2012, about 2.5 times current capacity 10

11 Target Expansion of Beijing Daopei Hospital in 2012 Haidian District, Beijing Group acquired 57.9% of a partially completed new hospital facility in Beijing s Haidian District for total consideration of HK$600mm Siteareaisapprox.18,692m 2 ;permissibleconstructionareaof74,035m 2 with500beds Expectedtobecompletedbytheendof2012 Considerably relieve the shortage in bed spaces and cater to patients who are seeking to be admitted based on the hospital s strong reputation Artist s impressions of proposed designs for new hospital in Beijing only 11

12 Highlights of Healthcare Services Business CCBC (CO.US) posted impressive growth and contributed HK$63.7mm to the Group. The Group currently owns 41.4% of CCBC s shares CCBC s FY2012 results FY2012 revenue up 12% Y-O-Y to RMB380.5mm Total accumulative subscribers reached 239,754 Gross margin remained at 77.2% Operating income increased 9% to RMB134.8mm Net income attributable to shareholders up 43.9% to RMB132.0mm 12

13 Highlights of Healthcare Services Business Medical Insurance Administration Service Business GM-Medicare Management (China) Co., Ltd., is a pioneering specialist in medical insurance administration serviceprovider in China Established in April 2010 as a sino-foreign joint venture with leading U.S. health maintenance organizations, SynerMed & EHS Churned in maiden revenue for the interim period upon a trial launched during the interim period positive feedback from users and in line with management expectations GM Medicare will leverage the extensive hospital network, China market knowledge construction of backbone systems to create one-stop shop Advanced IT infrastructure tailor-made for China market 13

14 Highlights of Medical Devices Segment Medical Devices (HK$ 000) 400,000 Strategic Price Cut 300, , , , , , ,603 Medical Devices Medical Accessories 100, ,892 73,157 87,455 96, ,209 FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 Medical Accessories 5-year CARG=16% Stable Revenue and Cashflow Revenue up 5% to HK$257.8mm, mostly attributable to increase in device utilization The segment accounted for 60% of Group s total revenue, and with medical devices sales accounted for 60% of segmental revenue while accessories sales accounted for 40% Implementation of the MOH s Regulation Governing Hospital Standard Accreditation and Administration ( 綜合醫院評析標準 ) will allow hospital operators to initiate strategies to alleviate shortage in surgical blood supply 14

15 Strategic Investments Group disposed 3% interest in its associate, Fortress Group Limited(A SPV privitized FunTalk China in August 2011), for US$15mm in September After the disposal, Group s effective interest in Fortress Group Limited became 29.4% Fortress Group Limited contributed HK$94.5mm compared to HK$73.8mm in the prior period, increased by 28% Through Chinese herbal medicine business, the Group currently own a piece of prime land in Shanghai. The land offers excellent prospects for appreciation once the property market in China stabilises 15

16 Company Outlook Healthcare Services Segment: Cord blood bank to further increase market penetration in Beijing and Guangdong, and future maiden contribution from its Zhejiang operation New hospital will contribute to Group upon completion GM-Medicare, medical insurance claim processing TPA to capture significant unaddressed demands in a new industry in China Medical devices segment: New strategies to promote device sales to lower tier hospitals Drive for growth in accessories sales New products launch and innovations 16

17 Q & A 17

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