otcbb: jrss investor presentation ppt en.pdf · hk & overseas. 100% ownership. junsheng zhang....

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OTCBB: JRSS www.jhcc.cn Investor Presentation April 2017

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Page 1: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

OTCBB: JRSSwww.jhcc.cn

Investor PresentationApril 2017

Page 2: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 3: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 4: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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)

Page 5: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 6: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 7: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 8: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 9: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 10: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 11: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

Financial Results &

Guidance

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Page 12: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

(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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Page 13: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 14: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 15: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

Growth Strategy

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Page 16: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 17: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 18: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 19: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 20: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

Market Opportunity

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Page 21: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 22: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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

Page 23: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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

Page 24: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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Page 25: OTCBB: JRSS Investor Presentation ppt EN.pdf · HK & Overseas. 100% Ownership. Junsheng Zhang. G. roup structure. Runteng Medical Group Company Limited (Hong Kong) Old hospital. Expansion

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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