FY12 / 13 Annual Results Presentation (12 Months Ended 31 stfile.irasia.com/listco/hk/goldenmeditech/cpresent/pre130628.pdf · FY12 / 13 Results Summary HK$’000 FY12 / 13 FY11

FY12 / 13 Annual Results Presentation

(12 Months Ended 31st March 2013)

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Data and information contained in this presentation is provided for informational purposes only. GoldenMeditech Holdings Limited takes no liabilities for any errors or delays in the content, or for any actionstaken in reliance thereon.

This presentation and subsequent discussions may contain forward-looking statements that are basedon the current beliefs, assumptions, expectations, estimates, and projections of the management ofGolden Meditech Holdings Limited about its businesses and the industries and markets in which itoperates. 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 anduncertainties, including, but not limited to, changes in legal, financial and regulatory frameworks, actualdemand, exchange rate fluctuations, market shares, competition, environmental risks, internationaleconomic and financial market conditions, project approval, cost estimates and other risks, which arebeyond the control of Golden Meditech Holdings Limited and are difficult to predict. Consequently, futurefinancial results could differ materially from those expressed or forecasted in the forward-lookingstatements.

Disclaimer

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Company Profile

Healthcare Services Segment

• GM Hospital Group (“GMHG”) consists:

• New 600-bed hospital in Beijing (to be operational by 3Q 2013), specializes in hematology and houses departments of various medical disciplines such as IVF Centre

• Shanghai East International Medical Centre (“SEIMC”), a renowned international hospital, provides premium healthcare services in vicinity of Shanghai

• China Cord Blood Corporation (“CCBC”), largest cord blood bank operator in China. Golden Meditech is the founding and largest shareholder of CCBC

• GM-Medicare Management (China) Company Ltd (“GM-Medicare”), a pioneering medical insurance administration solutions provider in China

Medical Devices Segment

• Beijing Jingjing Medical Equipment Co., Ltd. (“BJJJ”), a leading medical devices manufacturer in China

A leading integrated healthcare enterprise focusing on China’s healthcare industry. Its core

operations are categorized into two segments:

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Golden Meditech

(801.HK; 910801.TW)

Medical Devices

Segment

Healthcare Services Segment

China Cord Blood Corporation

(NYSE: CO)

GM Hospital GroupGM-Medicare

Management (China) Co., Ltd.

Strategic Investment

Fortress Group Limited

(formerly known as FunTalk China)

Chinese Herbal Medicine Business

Business Structure

NB: Entities highlighted in BLUE represents publicly-listed entities.

FY12 / 13 Highlights

• Total revenue �20.4% to HK$1,079,062,000, all business segments performed in line with management expectations

• Revenue from Healthcare Services Segment � to HK$776,316,000, driven by strong Cord Blood Bank Business; Revenue

from CCBC reached HK$647,265,000, while revenue from Hospital Management Business � to HK$126,930,000 due to

temporary relocation of new Beijing hospital

• Medical Devices Segment posted solid performance, � 7.5% to HK$277,242,000 in revenue, benefit from new

government healthcare policies

• Affected by temporary suspension of Beijing hospital, Profit Attributable to Shareholders of the Company � 11.3% to

HK$135,660,000

• Declared a final dividend of HK1.3 cents

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Major Developments:

� Has adopted certain new Hong Kong Financial Reporting Standards for the preparation of financial statements. As a

result, the financial statements of the Group have been restated retrospectively with CCBC fully consolidated

� New 600-bed hospital in Beijing’s Haiden district pending for opening by end 3Q 2013

� Fortified our holdings in each subsidiaries

– Repurchased the outstanding convertible notes issued by GM Hospital Group from New Horizon. In return, New

Horizon received 279,344,444 new shares at issue price of HK$0.9 per share

– Increased shareholding in medical devices division to 95.1% to capture opportunities arising from favourable Chinese

government policies

– Invested US$50 mm in CCBC through subscribing 7% Convertible Notes due 2017

• Extended our reach to distribute imported premium medical devices and signed agreement with ThermoGenesis

to distribute AXP System to develop new revenue stream

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FY12 / 13 Results Summary

HK$’000FY12 / 13 FY11 / 12

(Restated)% Change

Turnover

Cord Blood Bank Service Income

Hospital Management Service Income

Medical Insurance Administration Service Income

Medical Devices and Accessories Sales

Chinese Herbal Medicine Sales

647,265

126,930

2,121

277,242

25,504

462,647

147,110

811

257,812

27,489

39.9%

-13.7%

161.5%

7.5%

-7.2%

1,079,062 895,869 20.4%

Share of Profits from Associate

Fortress Group Limited (Formerly FunTalk China) 83,714 94,509 -11.4%

Profit After Tax 208,767 278,160 -24.9%

Profit Attributable to Shareholders of the Company 135,660 152,877 -11.3%

Adjusted Profit Attributable to Shareholders of the

Company*

146,085 195,964 -25.5%

Earnings Per Share (Basic) HK 6.3 cents HK 7.7 cents -18.2%

Adjusted Earnings Per Share (Basic)# HK 6.8 cents HK 9.9 cents -31.3%

* Excluding loss of HK$18,952,000 (year ended 31 March 2012 : a gain of HK$84,523,000) due to the fair value changes of

financial assets and liabilities and excluding the gain on disposal of an associate of HK$8,527,000 (year ended 31 March 2012 :

HK$41,436,000)# Based on Adjusted Profit Attributable to Shareholders of the Company

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Strong Balance Sheet

HK$ ‘000 FY12 / 13 FY11 / 12

Total Assets 9,701,460 8,614,988

Total Assets less Current Liabilities 8,210,950 6,787,272

Total Equity Attributable to Equity Shareholders of the

Company4,465,441 4,063,492

NAV per share (HK$) 1.97 2.04

Cash and bank deposits 2,164,424 1,796,015

Gearing ratio 26.6% 12.1%

• Cash and bank deposits amounted to HK$2,164,424,000 (year ended 31 March 2012 :

HK$1,796,015,000); total interest bearing debts stood at HK$1,629,520,000 (year ended 31

March 2012 : HK$709,212,000)

• Satisfactory financial position with sufficient capital and financial resources to meet future

business development needs

• Revenue from Healthcare services segment increased to HK$776,316,000

• Hospital Management Business revenue was HK$126,930,000, affected by the temporary suspension

of Beijing hospital facilities pending for relocation to new hospital facility

• New hospital in Beijing is scheduled to be operational by 3Q 2013. New facility will have over 600

beds with total floor area of approximately 75,000 m2

• Group repurchased convertible notes issued by GMHG from New Horizon to fortify interest in hospital

management businesses

• Further invested US$50 mm in CCBC by acquiring Convertible Notes to capture growing contributions

from CCBC 8

Highlights of Healthcare Services Segment

Deepen Business Transformation, Proactively Expand into Healthcare Services Segment

Healthcare Services

462,647647,265

147,110

126,930811

2,121

0

200,000

400,000

600,000

800,000

FY 11 / 12 FY 12 / 13

Medical insurance Administration

Hospital Management

Cord Blood Bank

(HK$ ‘000)

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Highlight of GM Hospital Group

• New hospital facility in Beijing’s Haidian District to be

operational by 3Q 2013

• The new hospital specializes not only in hematology,

but also houses departments of various medical

disciplines such as the In-Vitro Fertilization Centre to

address patients with different needs

• The total floor area is approximately 75,000 m2, with

over 600 beds which include 48 beds for the

hematology wards

• SEIMC continued to deliver strong performance and it

focuses on servicing expatriates and high-end markets in

Shanghai and neighbouring areas

Highlights of Healthcare Services Segment

• GM-Medicare Management (China) Co., Ltd., a pioneering specialist in medical insurance

administration solutions provider

• Established in April 2010, to develop missing link between insured, insurance companies

and local governments

• Building advanced IT infrastructure tailor-made for China market, to meet demands of

various health insurance operators

• Growing recognition in China market led to 161.5% increase in revenue to HK$2,121,000

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Medical Insurance Administration Business

Highlights of Healthcare Services Segment

Cord Blood Bank Business

• Invested US$50 mm into CCBC in September 2012 through subscribing 7% convertible notes due

2017

• Highlights of CCBC’s results FY2012 / 2013:

– Revenue increased by a remarkable 39.9% to HK$647,265,000

– New subscriber sign-ups reached 72,228 and increased its accumulated subscriber base to

311,982 subscribers

– Profit for the year of CCBC dropped as a result of the fair value changes of the convertible

notes issued to Kohlberg Kravis Roberts investment fund in April 2012

– Accelerate the expansion of Guangdong storage capacity and new Zhejiang storage facility

– New pricing effective in May 2013 will enhance profitability and offset rising production

costs and lower birth rate in 201411

Highlights of Healthcare Services Segment

Highlights of Medical Devices Segment

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• Revenue up 7.5% to HK$277,242,000, mostly attributable to increase in device utilization

• The segment accounted for 25.7% of Group’s total revenue, with medical devices sales accounted

for 58.4% and medical accessories sales accounted for 41.6% of segmental revenue respectively

• Implementation of the MOH’s “Level III General Hospital Accreditation and Administration

Standards”, (三級綜合醫院評審標準) allows hospital managers to initiate autologous blood

recovery programmes to alleviate surgical blood shortages

• Leverage on existing network to expand new revenue stream by entering into distribution

business for overseas premium medical products such as Thermogenesis' AXP System

Solid Performance

Medical Devices

(HK$ ‘000)

153,603 162,036

104,209 115,206

0

100,000

200,000

300,000

FY11 / 12 FY12 / 13

Medical Accessories

Medical Devices

Strategic Investments

• Currently holds two strategic investments

– 29.4% stake in Fortress Group (special private vehicle which privatized formerly

NASDAQ-listed FunTalk China Holdings Limited in August 2011)

– 100% shareholding in Chinese herbal medicine business

• Operating profit from FunTalk was up by 44.7% Y-o-Y. Profit contributions from Fortress

was down by 11.4% to HK$83,714,000 due to non-cash expenses associated with changes in

fair value of financial liabilities

• Chinese herbal medicine business reported an operating loss of HK$28,407,000, below

management expectations

• Consider disposals of strategic investments at appropriate time to focus on enhancing core

healthcare business and any proceeds raised will be allocated among existing businesses

and shareholders

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Company Outlook

• Cord blood bank to further increase market penetration in Beijing,Guangdong and Zhejiang province

• New hospital operation is expected to contribute good source of income toGroup

• GM-Medicare, new medical insurance claim processing BPO to further tapinto unaddressed markets

Healthcare Services Segment:

• Promote the use of our key products in China

• Lead to the growth of recurring sales of medical accessories

• Develop distribution of overseas premium medical devices business

Medical device segment:

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Investor Relations Department

Email: [email protected]

Tel: +852 3605 8180

Website: www.goldenmeditech.com