Meihua International Medical Technologies Co., Ltd. · OTC:MHUAF
Meihua International Medical Technologies — IPO Roadshow (January 2022)
30 slides from Meihua International Medical Technologies's IPO roadshow presentation, Jan 25, 2022
Slide 1: Investor Presentation January 2022
M ei hu a I nt e rn a t i on a l M e d i ca l T ec hno l og i e s Co . , Ltd . Investor Presentation January 2022 Issuer Free Writing Prospectus Dated January 25, 2022 Filed Pursuant to Rule 433 Relating to Preliminary Prospectus D ated August 10, 2021 Registration Statement No. 333 - 258659
Slide 2: Forward-Looking Statements
Forward - Looking Statements This presentation includes statements that are, or may be deemed, “forward - looking statements”. In some cases these forward - looking statements can be identified by the use of forward - looking terminology, including the terms “believes,” “estimates,” “anticipates,” “
Slide 3: Free Writing Prospectus Statement
Free Writing Prospectus Statement This free writing prospectus relates to the proposed initial public offering of the ordinary shares (the “Ordinary Shares”), par value US $ 0 . 0005 per share, of Meihua International Medical Technologies Co . , Ltd . (the “ Company ” ), which are being registered o
Slide 4: Offering summary
Issuer Meihua International Medical Technologies Co., Ltd. (“Meihua International”) Securities Ordinary Shares, par value US$0.0005 per share Ticker Nasdaq Global Market: MHUA Pre - Offering Ordinary Shares Outstanding 20,000,000 shares Number of Shares Offered xxxx Post - Offering Shares Outstandin
Slide 5: Table of Contents
Table of Contents 01 02 03 04 05 Company O v er v iew 6 I n v estment Hig h l i ght 10 Industry Overview 21 Growth Strategies 25 Financ i als 27
Slide 6: Provider of Class I, II, and III Disposable Medical Devices in China
We are a Provider of Class I,II, and III Disposable Medical Devices in China ▪ Class II Medical Devices Devices with moderate risks, that must be strictly controlled and regulated to ensure their safety and effectiveness ▪ Class I Medical Devices Devices with low level of risks, whose safety and eff
Slide 7: Three operating subsidiaries in PRC
We operate our business through three operating subsidiaries in PRC Yangzhou Huada Medical Equipment Co., Ltd. Jiangsu Yada Technology Group Co., Ltd. Jiangsu Huadong Medical Device Industry Co., Ltd. • Mainly manufactures and sells Class I disposable medical devices under our own brands • Distribut
Slide 8: Our Multifaceted Revenue Model
Sales from our own brands Resales from other brands • Manufacturing and sales of Class I, II, III disposable medical devices under our own brands • Resales of Class I, II, III disposable medical devices sourced by us from other manufacturers % of 2020 Revenue 55.54% 50.06% 44.46% Company Overview In
Slide 9: Domestic and International Models
Domestic Model Provide medical supplies to hospitals, pharmacies, and other medical institutions through distributors 1 Deliver direct sales to domestic customers • Solid client base with more than 485 hospitals and medical institutions 2 $43,389,567 Total 1H2020 Revenue $48,360,993 Total 1H2021 Rev
Slide 10: Strong Sales & Distribution Network
1. Strong Sales & Distribution Network established via over 40 - year operation 316 exporting distributors Each distributor covers at least three o v ersea s cu st om e rs 900+ customers Clients based in more than 30 countries in Europe, North America, South America, Asia, Africa and Oceania Supply
Slide 11: Fully licensed manufacturer with market-oriented R&D
CE, FDA certified • Sound quality assurance system • 20+ FDA certified p r o d uc t s • ISO 13485 certification Wholly licensed • Production license • Operation license • Export registration for Class I, II, and III medical devices Strong R&D • Expert R&D crew of 78 people, 12.4% of our personnel •
Slide 12: Products in Our Product Portfolio
920 Products in Our Product Portfolio One - stop service: R&D, Production, Sales Covering all Class I, II, and III disposable medical devices Cost - effectively address our clients’ needs D o m e s tic Sal e s Overseas Sales 18 % 82% Company Overview Investment Highlights Industry Overview Growth St
Slide 13: Massive distribution network of clients, distributors, and suppliers
4. Massive distribution network of clients, distributors, and suppliers Hospitals Pharmacies Medical Institutions 83 Employees in our sales department 5 , 0 00 2 , 0 95 301 Independent sales agents Distributors for domestic sales Exporting distributors for overseas sales Company Overview Meihua Inte
Slide 14: Geographical advantages in Touqiao Town
Touqiao Town, Yangzhou City, Jiangsu Province One of the four medical device centers in PRC “Hometown of Medical Devices & Consumables in China” Our PRC operating subsidiaries and primary operations are located in Receive an order • From hospital clients or distributors Quickly fulfill the order • C
Slide 15: Economies of scale and automation
Increase Profit Margin • The scale of our production is regional - leading within Yangtze River Delta region of China. • Through scaled production, we are able to increase our profits margin. 6. Economies of scale and automation provide significant cost advantages Lower Procurement Costs • In the pr
Slide 16: Leading competitive position through high quality standard systems
7. Leading competitive position maintained by high quality standard systems Core Value Quality Management System Internal Control Standard System • Quality: We aim to become a world - leading manufacturer of medical consumables with high quality. • Safety: It depends on the effectiveness of our qual
Slide 17: Market-driven research and development
78 $2,492,059 $3,214,326 R&D team of 78 people – 12.4% of our total employees Investment in the products and R&D in 2020: $2,492,059 Investment in the products and R&D in 2019: $3,214,326 Uni v ersities Hospitals Medical Institutions Distributors Independent Sales Agents Market - oriented R&D Approa
Slide 18: Visionary and experienced management team
9. Visionary and experienced management team Yongjun Liu – Founder and Chairman ▪ A successful entrepreneur with over 40 years experience in the medical device industry ▪ Awarded as Excellent Entrepreneur, Honest Entrepreneur Representative and Medical Device Industry Representative for many times ▪
Slide 19: Our Experienced Management Team
Our Experienced Management Team Able to Leverage The Capabilities of Our Organization Yulin Wang, CEO and Director Tongying Zhang, CFO • Chief Executive Officer and Director since October 2020 • Chief Executive Officer of Kang Fu International Medical Co., Ltd. since March 2020 and Special Assistant
Slide 20: Independent Director Nominees
Xiaoming E, Independent Director Nominee • Director nominee of our Company who will become a director upon the effectiveness of this registration statement • From January 2010 to present, Chairman and General Manager of Jiangsu Changfeng Medical Industry Co., Ltd. • From May 2004 to present, • Vice
Slide 21: Strictly regulated industry, high barriers to entry
01 Strictly regulated industry High barriers to entry • Class I devices subject to recordation administration • Class II, III subject to registration administration 02 Approved distributors • business license and disposable medical device operation license • exporting license • Sales channels and di
Slide 22: Market Size of China's Low Value-added Disposable Medical Devices
Growth Strategies Financials Market Size of China’s Low Value - added Disposable Medical Devices from 2016 - 202 0 ( Un it : R M B10 0 m illi on , % ) Global Low Value - added Disposable Medical Device Market Scale and China’s Market Share from 2016 - 2019 (Unit: $100 million, %) Company Overview In
Slide 23: Regional Development of China's Disposable Medical Device Industry
Regional Breakdown of China’s Disposable Medical Devices in 2019 (Unit: %) Qualification of China’s Medical Device Manufacturers in 2019 (Unit: number of companies) As the industry grows, four regional disposable medical device centers were gradually formed in China. 10,033 Class II medical device m
Slide 24: Development of Medical Device Industry in Touqiao Town
Disposable Medical Device Industry Size in Touqiao Town, Yangzhou, Jiangsu Province from 2017 - 2019 (Unit: RMB100 million) • Touqiao was named “The Town of Disposable Medical Devices in China” in 2017 • About 357 medical device manufactures covering Class I, II, and III medical devices. Its distrib
Slide 25: Growth Strategies: market share and quality
Company Overview Investment Highlights Industry Overview Growth Strategies Financials 1. Solidify industry position by gaining additional market share 2. Uphold commitment to high quality products ▪ Participate in more expos or exhibitions for more exposure ▪ Expand production capacity through horiz
Slide 26: Growth Strategies: distribution network and talent
3. Expand sales and distribution network 4. Enhance abilities to attract, incentivize, and retain talented industry professionals Formulating a mar k e t - o rie n t ed employee compensation structure Implementing a s t a n da r di z ed m u l t i - level performance review mechanism Maintaining and
Slide 27: Financial Highlights
1 2 Steady increase of revenue ($MM) 12% 4 High Gross Margin and Profit Margin Gross Margin Profit Margin Healthy Liquidity and Operating Cash Flow ($MM) Cash Operating Cash Flow 23% Company Overview Investment Highlights Industry Overview Growth Strategies Financials 2020: Fiscal year 2020 ended De
Slide 28: Appendix
Appendix
Slide 29: Onshore and Offshore Corporate Structure
O n s ho re O f fshore Corporate Structure Meihua International Technologies Co., Ltd. (Cayman) Kang Fu International Medical Co., Ltd. (Hong Kong) Yangzhou Huada Medical Device Co., Ltd. (PRC) Jiangsu Yada Technology Group Co., Ltd. (PRC) Jiangsu Huadong Medical Device Industrial Co., Ltd. (PRC) Ya
Slide 30: Thank You
THANK YOU Co m p a n y Amy Zhu Meihua International Medical Technologies Co., Ltd. [email protected] +86 15366426268 Und er w r i t e rs Frank Wang [email protected] +86 15221989673 Investor Relations Janice Wang EverGreen CQ Consulting Inc. I R @c h a ngq i ng c on s u l t ing. c o m +1 - 571 - 4
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