ASIApharm Group Ltd

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ASIApharm Group Ltd
? ? ? ? ? ? ? ? ? ?
1H2006 RESULTS PRESENTATION MR LIU DIANBO,
EXECUTIVE CHAIRMAN August 2006
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FINANCIAL Highlights
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Key Financial Highlights
based on the weighted average number of
429,583,082 and 407,764,900 shares respectively
FY2005 value
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REVENUE GROWTH DRIVERS BY SEGMENT 1H05 TO 1H06
Revenue Growth Drivers
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Pharmaceutical Sales
RMB(m)
For period ending 30 June
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REVENUE GROWTH DRIVERS BY PRODUCT 1H05 TO 1H06
Revenue Growth Drivers
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Revenue Segmentation
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Net Profit
RMB(m)
For period ending 30 June
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BUSINESS OVERVIEW
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Profile in Brief

• AsiaPharm Group Ltd
• Leading pharmaceutical group of specialty drugs
  in China
• Focus on research development, production and
  sale of natural drugs and Drug Delivery Systems
  (DDS)
• Main operations based in Yantai of Shandong

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Product Specialisations
Orthopaedics ??
Neurology ???
Gastroenterology ???
Hepatology ???
Oncology ???
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Business Scope
COMPREHENSIVE RANGE OF PRODUCTS SERVICES
MANUFACTURE AND SALE OF PHARMACEUTICAL DRUGS
SALE OF R D RESULTS / PATENTS
TRADING OF ACTIVE INGREDIENT DISTRIBUTION
PRESCIPTIVE DRUGS FOR HOSPITAL USAGE
NEW PRODUCTS INTRODUCED ANNUALLY
EXPORT TO NORTH AMERICA WESTERN EUROPE
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Competitive Strengths

• Strategically located in Yantai high-tech
  Industrial
• Development Zone
• -Fully integrated, FDA/SFDA compliant production
  facilities
• Strong RD capability
• -Over 120 research staff
• -62 products developed or currently under
  development
• Significant market penetration
• -Distribution network encompassing more than
  2,000 hospitals
• -35 sales offices covering 30 provinces and
  municipals
• -280 sales staff

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OUR KEY PRODUCTS
KEY PRODUCTS

• Maitongna (???)
• (Sodium Aescinate for injection)
• Okai (??)
• (Sodium Aescinate tablet)
• Olai (??)
• (Compound Sodium Aescinate Gel)

• Anti-inflammatory and anti-swelling drug used in
  the fields of orthopaedics and neurology
• Used for vein dysfunction, varix, piles
• Used in pain relief and anti- inflammatory
  purposes

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KEY PRODUCTS

• Used in gastroenterological ailments
• Used in hepatology
• (liver ailments) and antioxidants
• Used for orthopaedics (osteoporosis)

• Nuosen (??)
• (Sodium Pantroprazole for Injection)
• Lutingnuo (???)
• (Reduced Glutathione for Injection)
• Sidinuo (???)
• (Elcatonin for Injection)

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New Products

• Ximingting
• (???)
• Otong (??)
• (Capsaicin Gel)
• Sailimai (??? )
• (Encapsulated Smectite powder)

• Used in the treatment of menopausal ailment
• Used in pain relief for rheumatism and
  soft-tissue damage
• Used in the treatment of acute and chronic
  diarrhoea

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KEY PRODUCTS APPROVED UNDER NHI
PRODUCTS APPROVED UNDER NHI

• Maitongna (???)
• Lutingnuo (???)
• Nuosen (??)
• Sidinuo (???)

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PRODUCT PIPELINE
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Product Pipeline
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Product Pipeline
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STRATEGIC PARTNERSHIPS
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Strategic Partnerships
NAPO
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LATEST DEVELOPMENTS
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Latest Developments
8 May 06

• Placement of 80 million new shares to strategic
  investors
• Attracts significant interest from investment
  community with entry of several key investors
• Raises RMB 322.0 million to fund future growth
  initiatives

• New product OTONG obtains SFDA new drug approval
• Used in the treatment of Rheumatism and
  soft-tissue injury
• Targets over 100 million Rheumatism patients in
  PRC

17 May 06
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Latest Developments
30 May 06

• Acquires remaining stake in trading subsidiary
  Luye Trading
• Strategic restructuring of Yantai Luye Drug
  Trading to focus on higher margin in-house and
  imported drugs

30 June 06

• New product SailiMai obtains SFDA new drug
  approval
• Used in the treatment of acute and chronic
  diarrhoea
• Targets a market worth approximately RMB 500
  million annually

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Industry Outlook
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Industry Outlook

• Regulatory reviews follows initiative to keep
  health-care affordable to the general population
• Government to increase expenditure in the
  health-care sector
• NHI to double total number of participants from
  140 million to 300 million by 2010
• Extend basic healthcare into to rural communities
• Control percentage of revenue from sales of
  prescription drugs for hospitals

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Industry Outlook

• Temporary restriction of promotional activities
  in hospitals and purchase of drugs not under
  stocklist
• SFDA new procedures and guidelines on new drug
  approvals
• Stricter compliance with GMP and GSP standards
• Price cutting measures on generic drugs but will
  encourage companies to develop new proprietary
  drugs
• These reforms will benefit established
  pharmaceutical companies like AsiaPharm in the
  long run

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FORWARD STRATEGIES
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Forward Strategies

• Domestic pharmaceutical sales
• Increase in selling efforts of key products
  Lutingnuo, Nuosen, Sidinuo and Okai to achieve
  steady growth
• Recovery in sales of Maitongna by switching to
  other dosage
• Ximingting, a safe, natural alternative to the
  chemical drugs used for Hormone Replacement
  Therapy (HRT) will drive future growth

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Forward Strategies

• Capsaicin gel (Otong) and Dioctahedral Smectitie
  Disperse Tablet (Sailimai), together with Olai
  will form OTC portfolio of the Group
• Pantoprazole Pellets Capsule (oral formulation of
  Nuosen), targeted for launch in FY2006
• Restructuring of Luye Drugs Trading, to focus on
  our own drugs and distribute imported drugs with
  higher margin

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Forward Strategies

• International pharmaceutical sales
• Sale of drugs to Vietnam, Pakistan and other
  Asian countries
• Attaining GMP approvals by TGA, EMEA and FDA
  through the collaboration with foreign
  pharmaceuticals companies
• Strategic alliance with foreign partners to
  manufacture and distribute products overseas

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Forward Strategies

• RD
• Devote more resources towards RD for our future
  product pipeline
• Provide third party contract services and
  transfer of technology
• Co-develop new products with foreign partners
  (eg. Napo, USA)

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Forward Strategies

• Merger Acquisition
• Placement of new shares provides RMB 322.0
  million for Asiapharm to fund its MA strategy
• Strategic targets with high-earning potential,
  similar strategic direction and products
• Currently in final negotiations with several MA
  targets
• Objective finalisation probable by 2006/07

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QUESTION ANSWER
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ASIApharm Group Ltd