股份代號 StockCode: 2289
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Table of Content 1 Financial Highlights 2 Business Overview 3 4 Future Outlook Q & A
Financial Highlights g
Steady Progress Made in 1H 2016 For the six months ended 30 June 2016 2016 2015 Year on Year RMB 000 RMB 000 Turnover 1,777,949 1,635,397 8.72% Gross profit 98,916 83,613 18.30% Gross profit margin 5.56% 5.11% Up0.45PP Total cost 54,245 52,716 2.90% Cost rate 3.05% 3.22% Down 0.17PP Net profit 36,762 25,234 45.68% Net profit margin 2.07% 1.54% Up0.53PP Basic and diluted earnings per share (RMB cents) 34.04 31.54 7.93% The Board proposed the payment of an interim dividend of RMB0.20 (tax inclusive) per share for the six months ended 30 June, 2016.
( RMB 000 ) 1,626,237, Turnover Breakdown By Segments 1,765,243 9,160 12,706 Sales and Marketing Services 20151H1H 20161H1H 1,248,742 1,165,757, Distributors By Customers 419,657 482,468 Retail Pharmacies 20151H 20161H 40,823 34,033 Note: Thedataof2015weretakenfromtheCompany sprospectusasstatedondecember2,2015. Hospitals, clinics and health centers
( RMB 000 ) 54,500 54,000 53,500 53,000 52,500 52,000 51,500 30,000 20,000 10,000 - Cost-Effectiveness Improved 3.22% Total Cost 52,716 54,245 2015 1H 2016 1H Administrative Expense 3.40% 3.20% 3.05% 3.00% 22,674 23,562 2.80% 1.39% 1.33% 1.40% 1.00% Selling and Distribution Expense 24,000 22,000 20,000 18,000 18,504 16,000 15,000 10,000000 5,000 1.13% 1.23% 2015 1H 2016 1H Financial Cost 11,538 0.71% 0.49% 2015 1H 2016 1H 2015 1H 2016 1H Note: Thedataof2015weretakenfromtheCompany sprospectusasstatedondecember2,2015. - 1.30% 1.20% 21,930 1.10% 1.00% 0.65% 0.70% 0.75% 0.80% 8,753-0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% 0.50% 0.55% 0.60%
( RMB 000 ) Profitability Improved Gross Profit 105,000000 Net Profit 6.00% Gross Profit 5.50% 5.56% 98,916 100,000 95,000 40,000000 90,000 35,000 5.11% 30,000 25,234 5.00% 25,000 83,613 85,000 1.54% 20,000 4.50% 15,000 80,000 10,000 5,000 75,000-2015 1H 2016 1H 36,762 2.50% 2.07% 2.00% 1.50% 1.00% 0.50% 2015 1H 2016 1H Note: Thedataof2015weretakenfromtheCompany sprospectusasstatedondecember2,2015. 0.00%
( RMB 000 ) Solid Financial Stand Total Asset 2,062,970 2,076,755 Total Liabilities 1,648,714 1,625,737 Owner s Equity 414,256 451,018 2015/12/31 2016/6/30 2015/12/31 2016/6/30 2015/12/31 2016/6/30 2016/6/30 / 2015/12/31 / Gearing ratio 0.60 0.70 Net debt/equity ratio 0.31 0.33 Note: Thedataof2015weretakenfromtheCompany sprospectusasstatedondecember2,2015.
Business Overview
Business Overview Distribution Network 1,153153 657 Distributors RetailPharmacies 2,816 Hospitals,clinicsandhealthcenters and centers Suppliers 303 PharmaceuticalManufacturers Distributors suppliers 712 2,242 Distribution Products 116 610 WesternMedicines 2,766 ChinesePharmaceuticalProducts HealthProducts Others
Progressive Exploration in B2B Platform Charmacy e-medicine 3,667 registered customers whom are mainly retail pharmacy stores; As at 30 June, 2016, the turnover was round 78.97 million; In 2016, we updated our original B2B e-commerce platfrom to SAP Hybris management platform, which will be available in October, 2016. Awards Received Member for the first Guangdong Enterprises Association Integrity Promotion National standard pilot enterprises for the "Models for Pharmaceutical Cold Chain Logistics Operation," Best Service Innovation Award for the 12th Five-Year Plan Best Management Innovation Award for the 12th Five-Year Plan Model Enterprise of integrity in Guangdong for five consecutive years.
Optimization of Logistic & Information System Purchase of refrigerated transport t vehicles During the reporting period, the Group purchased 15 refrigerated transport vehicles for 2 distribution centers, providing better transport services for customers. Information system stem transformation On 20 March, the information technology project was officially launched. Build a full-channel and one-in-all information service platform, supported by SAP system from IBM, on the basis of brand new SAP S/4HANA business suite, which integrates the Hybris electronic business platform, SAP customer relationship management, mobile applications, SAP business intelligence solutions, and IBM POWER8 server together with SAP HANA on Power Memory Computing Solutions.
Application of Funds Raised in IPO The Group was listed in the HKEX on 14 December, 2015. The net proceeds of the Global l Offering was around RMB 158.91 million after deducting underwriting commissions and other estimated expenses. Purposes of proceeds raised Proportion of the budget Amount of the budget Amount used ( RMB 000) Proportion of the used amount Repayingbankborrowing 30% 47.67 47.67 100% For workingcapitalandgeneral corporatepurposes For enhancingandpromotingb2becommerceplatform Forstrengthening, expanding,and integratingdistributionnetwork g Foracquiringpharmaceuticaldistribution businessinsouthernchinaregion 10% 15.89 15.89 100% 10% 15.89 6.14 39% 35% 55.62 11.17 20% 15% 23.84 0 0% (Asat30June,2016) Total 100% 158.91 80.87 51%
Future Outlook
01 02 03 Promotion of Business Optimization & Transformation Upgrade information systems Pursue M&A opportunities Expand product span and enhance product mix
A Upgrade information systems Upgrade information systems Accelerate the transformation to intelligence and internet oriented business management Three goals for the information upgrade: 1. Build an integrated information platform with SAP ERP / Hybris as the core, and provide effective access to other professional applications step by step; 2. Adopt an integrated system for business operation and financial management based taking into account of the company's business features; 3. Build up the B2B e-commerce platform on the basis of the integrated information platform and the integrated operation/financial system. The platform is be able to adapt to various business models to provide architectures for front, middle and back counter services which are easy to replicate and create synergies.
Pursuit of M&A and Enrich of Product Mix Pursue M&A Opportunities B The Group will continue to proceed with the mature pharmaceutical distribution business in Southern China cities such as Shenzhen, and to actively look for suitable acquisition targets. Assist in the construction of the Group's new distribution center, broadening its own distribution network, improving the drug distribution capabilities and scales, improving efficiency, forming a competitive pharmaceutical distribution network. Expand Product Span and Enrich Product Mix C Introduce more than 800 products by the end of 2016, and in the meantime off-shelf some of the overstocking and low- margin products. Enrich product mix to strengthen the customer base, improve profitability, and further strengthen our competitive position.
Q&A
Thanks Contact YAO Jiexi Legal Specialist Email: yaojiexi@chmyy.com Tel:(86-754)88109272 LI Yuqin Securities Specialist Email: liyuqin@chmyy.com com Tel:(86-754)88109272