Shandong Weigao Group Medical Polymer Company Limited

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Annual Results 2005 March 2006
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Content

• Major Accomplishments in 2005
• Financial Highlights
• Business Review
• Future Plans and Strategies

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Major Accomplishments in 2005
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Major Accomplishments in 2005

• Trademark recognised as a Well-Known
  Trademark, the ONLY medical device company with
  the recognition
• Formed Weigao Bone for RD, production and sale
  of orthopedic products. Orthopedic products
  launched in 4Q well received by the market
• Weigao Blood formed Weigao Huading to produce
  dialysis products
• Successfully developed world class drug eluting
  heart stent and obtained product registration
  certificate in Dec 2005

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Major Accomplishments in 2005 (Contd)

• Weigao became the 1st company to obtain both
  patent for pre-filled syringes in the PRC and
  registration certificate in Nov 2005
• Successfully developed non-PVC based materials
  which is classified as 2005 State Torch Plan
  Hi-tech Industry Model Project by the Ministry
  of Science and Technology
• Needle production capacity reached 3 billion pcs
  per annum
• Placement of 52,900,000 new H shares in Nov 2005

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Latest Group Structure
Senior Management
Weigao Holding
Shareholders of H shares
59.88
32.87
7.25
The Company
4
96
50
53
95
51
90
70
Jierui Subsidiary
JW Medical
Weigao Jinbao
Weigao Blood
Weigao Bone
Fuzhou Fanzhun
Weigao Mould
51.6
Weigao Huading
Weigao Holding is held by 14 holders and the
largest shareholder is Mr. Chen Xue Li who holds
30 shares of Weigao Holding Including over
10 well-known investment funds
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Financial Highlights
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Results Summary

• Gross margin and net margin improved
• Increased in the proportion of high value added
  products
• Enhanced operation efficiency

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High Growth in Turnover and Net Profit
RMB million
570.0
407.8
317.9
278.2
101.2
65.9
50.5
43.5
For the year ended 31 December

• 02 05 CAGR of Turnover 27.0
• 02 05 CAGR of Net Profit 32.5

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Turnover Breakdown by Products- High Value-added
Products/Conventional Products
Turnover
Gross Profit Margins
66.2
67.1
62.2
61.2
38.9
36.8
33.2
33.6
Conventional products
High value-added products
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Turnover Breakdown by Products
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Turnover Breakdown by Geographical Regions
Over 30 countries including US, Germany,
Romania, Australia and UK
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Cost Analysis
excluding staff costs and depreciation
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Balance Sheet
The increase in non-current assets was mainly
resulted from the increase of the Groups new
investment in machinery and production
facilities The increase in current assets was
mainly resulted from the proceeds received for
the placing of new H shares and the significant
increase in the Groups turnover in 2005 The
increase in the bank and other loans was mainly
resulted from the expansion of the Companys
production and operation
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Other Financial Figures
The increase of the inventory turnover days was
mainly due to the Companys more stringent
quality control procedures, its expansion in its
sales network and the increase in the total
number of products it carries
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Business Review
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Product Diversification to High-end Area
Major Products

• Orthopedic
• Products
• Medulla nail
• Steel plate
• Bone connecting screw
• Spine fixing products

Blood Purification i) Products - Dialyzers -
Adsorption column ii) Service - To establish
blood purification centers

• Consumables
• - Syringes
• - Blood bags
• - Infusion sets
• - Needles
• Dentals

Medication Package Material - Pre-filled
syringes
Stents - Drug eluting heart stent - Catheters
- Other stents (under development)
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Increasing Production Scale
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Expanding Customer Base
Source lt????gt and Weigao
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Expanding Sales Network
Note 1 Increase in sales staff due to launching
new projects and enlarging sales network
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New Product Development
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Future Plans and Strategies
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Corporate Strategies 3 Enhancement and 1
Expansion

• 3 Enhancement-
• Strive to develop high-tech products
• Increase the proportion of high value-added
  products
• Strengthen services to high-end customers
• 1 Expansion-
• Expansion in market share of conventional
  products

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Future Plans and Strategies
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Future Plans and Strategies