otcbb: jrss investor presentation ppt en.pdf · hk & overseas. 100% ownership. junsheng zhang....
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OTCBB: JRSSwww.jhcc.cn
Investor PresentationApril 2017
Forward looking statements
This presentation includes certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities Exchange Act of 1934, as amended. Allstatements included in this press release, other than statements of historical facts,address matters that JRSIS HEALTH CARE CORPORATION (“the company” or “JHCC”)reasonably expects, believes or anticipates will or may occur in the future. Thesestatements are made on the basis of management‘s current views and assumptions. As aresult, there can be no assurance that management’s expectations will necessarily cometo pass. Such statements are subject to various assumptions, risks and uncertainties.Investors are cautioned that any such statements are not guarantees of futureperformance and that actual results or developments may differ materially as thosediscussed in the JHCC‘s reports filed with the Securities and Exchange Commission fromtime to time.
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Ambitious business plan: building a vertically integrated business
Full service Western & traditional Chinese medical facility / hospital
About JRSIS – Investment Highlights
Fast growing, profitable business – for 2016 vs. 2015
Large hospital
650 beds 24,000 sq. mt./ 26 floors
Over 490 medical
personnel
Large number of patients (2016)
Over 200,000 outpatients
Over 14,000 inpatients
Full medical services
Wide range of medical services
State of the art medial equipment
Highly trained / educated
doctors
Revenue of $18.12 million
+53%Net Income of $5.02 million
+90%
1 Pharmaceutical manufacturing facility
2 Several hospitals 3 Pharmacy chain + +
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JRSIS HEALTH CARE CORPORATION(USA Registered Company, Abbr. : JHCC)
100% Ownership
JRSIS HEALTH CARE LIMITED (BVI Registered Company)
Runteng Medical Group Company Limited (Hong Kong)
70%30% Inside
China
HK & Overseas
100% Ownership
Junsheng Zhang
Group structure
Runteng Medical Group Company Limited (Hong Kong)
Old hospital
Expansion resulted in over
53%in 2016 revenue vs. 2015
New hospital – currently at approx. 80% capacity
• Larger capacity: 650 beds• Larger space: 24,000 sq. mt. /
26 floors• Advanced equipment• More medical departments• Higher-end services• Larger staff• Full medical Western and
traditional Chinese services
New Hospital – Operational since Dec. 2014
• Limited capacity:150 beds
• Limited space: 3,200 sq. mt. / 7 floors
• Old equipment
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Surgeons35
Doctors149
Dentists3
Nurses218
Management and logistics
57Drug
management37
Departments covering all essential medical services
Staff Breakdown
• Internal Medicine• Surgery• Orthopedics• Pediatrics• Gynecology• Dentistry• ENT• Ophthalmology
• Dermatology• Rehabilitation and
physiotherapy• Integrated Medicine• Emergency department• Laboratory Medicine• Gastroscopy• Emergency service
Comprehensive Health Services
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2011 2012 2013 2014 2015 2016inpatient 2,660 3,620 4,100 5,547 10,238 14,276outpatient 124,243 150,670 249,540 234,502 175,755 200,254
-
50,000
100,000
150,000
200,000
250,000
300,000
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Number of Patients Admitted(2011 – 2016)
Preferred Choice for PatientsIncreased social insurance payments in 2016 resulted in substantially higher number of
inpatients
Note: In 2015,Outpatient number decreased due to increased capacity for inpatients: more beds, more services.
Why patients prefer JRSIS Hospital- The only private hospital in the area- The only hospital to provide full medical
services- Better equipped patient rooms- State-of-the-art medical equipment- Western and Chinese medicine educated
doctors and nurses- Better patient – staff relationship
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In April 2014 JHCC purchased a CliniCar(mobile clinic) to promote business and build the JRSIS brand
- Provides paid-forroutine checkup services to corporate customers
- Provides free clinical services to the local community
CliniCar – Attracting New Patients
Strategy:
- Utilize CliniCar’s flexibly to promote JRSIS’s services and expand healthcarecoverage into other neighboring towns
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Yanhui Xing DirectorMany years in accounting and investment banking
Lihua SunCEO, Director Co-founder of Jiarun Hospital Former GM of Ankang MedicineDirector of Heilongjiang Dahua Medicine
Junsheng Zhang President, ChairmanFounder of Jiarun Hospital and Jiarun MedicalFormer General Manager of Dongtai Medical LtdMore than 30 years working experience in the Chinese healthcare industryOwns multiple medical companies
Xuewei ZhangCFO, DirectorFinancial manager of Jiarun Hospital since 2009
Strong Management Team with a Vision for Growth
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On Nov 1, 2015 Harbin Jiarun Hospital won“China’s Most Valuable Private Hospital in 2015” Award during the annual meeting of Development of China Private Hospitals in Xi'an
Left 3rd Zhang Junsheng the president of JHCC
Awards
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Financial Results &
Guidance
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(USD Million –except for per
share data)
Fiscal Year ended December 31,(Audited)%
change2016 vs.
20152011 2012 2013 2014 2015 2016
Revenue 2.66 3.48 4.35 5.98 11.87 18.12 53%
Operating Cost and Expenses
1.68 2.33 3.03 5.06 9.24 13.10 42%
Net income 0.99 1.15 1.32 0.94 2.64 5.02 90%
EBITDA 1.07 1.25 1.45 2.13 4.75 7.49 58%
EPS 0.0453 0.1293 0.2495 93%
History of Strong Growth
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EBITDARevenue
$2.05 $2.66 $3.48
$4.35 $5.98
$11.87
$18.12
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
2010 2011 2012 2013 2014 2015 2016
$ in U.S. Millions
$0.90 $1.07 $1.25 $1.45
$2.13
$4.75
$7.49
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2010 2011 2012 2013 2014 2015 2016
$ in U.S. Millions
YOY CAGR
Financial Highlights
YOY CAGR
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Revenue Contributors (Full Year 2016)
Internal Medicine41.27%
Surgery18.39% Gynecology
7.48%
Paediatrics4.43%
emergency department
1.29%ENT
3.06%Ophthalmology2.56%
Others21.51% -
2,000,000 4,000,000 6,000,000 8,000,000
10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000
2013 2014 2015 2016
48% 49%46%
44%52%
51%
54%
56%
Medicine Patient services
Revenue & Net Income Contributors
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Growth Strategy
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New Major Departments
Obstetrics & GynecologyEstimated
incremental annual revenue
Reached $2.6 million net revenue in 2016
+ $1.5M
Increase 500
150
Medical beds increase Investment in New / Advanced Medical Equipment to
Physical capacity of the hospital increased
Original departmentswill keep a
double digitgrowth rate
US$2,107,453
US$5,083,628
US$8,787,107 US$11,538,910
2014/06/30 2014/12/31 2015/12/31 2016/12/31
Complying with the two-child policy in China
Rehabilitation Physical Therapy DepartmentIncreasingly popular with patients
Cardiovascular interventional treatment DepartmentSet up by famous physician Hu Dayi and his team
Expansion of Services and Facilities
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Set up a second hospital
to serve local residents
• New hospital to commence operations in mid-2016
• 4,000 square meters operating capacity
• Targeting over 400,000 local residents (300,000 students plus 100,000 residents)
• Located near 23 universities, in an area called “university city”
Expandcurrent hospital operationsthrough a new outpatient
department
• New outpatient department building to commence decoration before 2016 year-end and operations in May of 2017.
• 8,000 square meters operating capacity
2016 Expansion Plan
Acquisitions exploring opportunities
• Merge and/or acquire another hospital, targeting the highly fragmented industry
Platform for Growth
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JRSS – Longer Term Growth Strategy
Building a vertically integrated business
Organic growth Expand current
hospital outpatient capacity
Provide high-end services
Expand services and departments
Growth through acquisitions:
Acquire 1-3 hospitals each year
Acquire a pharma manufacturing
company
Acquire a pharmacy retailer – chain of stores
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2.66 3.48 4.35 5.98
11.8718.12
26.05
37.46
0
10
20
30
40
50
60
2011 2012 2013 2014 2015 2016 2017 2018
$ in U.S. Millions Revenue
JRSS – Projected Revenue
Due to long-term growth initiatives
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Market Opportunity
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Opened healthcare market to foreign capitalEqual treatment to government hospitalsNov 26, 2010
Five-year plan (2011-2015):National commitment to developing healthcare sectorMar 14, 2011
Cut administrative costs, and encourage private investment in hospitalsTax credits for private hospitals, payment options for medical insuranceOct 14, 2013
Liberalized pricing, private hospitals get greater flexibility and autonomyPrivate hospitals can differentiate and diversifyMar 25, 2014
Circular on Carrying out the Pilot Programme for the Establishment of Wholly Foreign-owned Hospitals (Guoweiyihan [2014] No.244Carrying out the Pilot Programme for the Establishment of Wholly Foreign-owned Hospitals
July 25, 2014
The thirteenth five-year plan of PRC (2016-2020):Focus on health care, internet, media, environmental protection and other industriesNovember, 2015
China unveils health-care reform guidelines
New Challenges and New Opportunities for Private Equity Investment
China opens healthcare market to private investment
Guoweiyihan [2014] No.244
The thirteenth five-year plan of PRC
References:
Healthcare Reform in China
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285325
395452
00
200
400
600
800
1000
1200
1400
2009 2010 2011 2012 2020
Expenditure size of the health services industry
Source: 2009-2012 data from the National Bureau of Statistics of China2020 projection from the Notice regarding certain opinions on promoting the development of the health services industry (Guofa [2013] No. 40)Exchange rate used: 6.156
(Billion $)
Large Market – Substantial Opportunities
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1300
Stocks dividends
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The company plans to pay dividends after filing the financial repot of 2018, the detail as following(estimated figures):
Net income in 2016 $5,019,985
Net income in 2018
Natural increasing* $10,510,734
Outpatient Building increasing $1,898,507
Total net income in 2018 $12,409,241
Dividends ** $2,574,704
Total shares $23,915,000
Dividends per share $ 0.1077
Dividends of 20000 shares $ 2,153.21
Rate of return*** 10.77%
Note:* By CAGR of 2012-2016;** 30% of net income attributable to the Company;*** Do not include the profit or loss in stock transactions
This presentation is for informational purposes only and does not constitute an offer or solicitationto sell shares or securities in the Company or any related or associated company. Any such offer orsolicitation will be made only by means of the Company's confidential Offering Memorandum andin accordance with the terms of all applicable securities and other laws. None of the information oranalyses presented are intended to form the basis for any investment decision, and no specificrecommendations are intended. Accordingly this presentation does not constitute investmentadvice or counsel or solicitation for investment in any security. This presentation does notconstitute or form part of, and should not be construed as, any offer for sale or subscription of, orany invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form thebasis of, or be relied on in any connection with, any contract or commitment whatsoever. TheCompany expressly disclaims any and all responsibility for any direct or consequential loss ordamage of any kind whatsoever arising directly or indirectly from: (i) reliance on any informationcontained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) anyaction resulting there from.
Securities Disclaimer
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ContactMary XingInvestor Relations and CommunicationsTel (WeChat): +86 135 1001 6379 Email: [email protected]: marymary4098
Contacts Us
JRSIS Healthcare Corporation1 st – 7 th Floor, Industrial and Commercial Bank Building,Xingfu Street, Hulan Town, Hulan District, Harbin CityHeilongjiang Province, China 150025 Website: www.jhcc.cn
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