China Health Industries Holdings, Inc.
OTC: CHHE
Investor Presentation April 2015
Safe Harbor Statement
This presentation contains certain statements that may include 'forward-looking
statements' as defined in the Securities Act of 1933, and the Securities Exchange
Act of 1934. All statements, other than statements of historical facts, included
herein are 'forward-looking statements.' Although the Company believes that the
expectations reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. You should not place undue reliance on these forwardlooking statements, which speak only as of the date of this presentation.
The Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of factors, including
those discussed in the Company's periodic reports that are filed with and available
from the Securities and Exchange Commission. All forward-looking statements
attributable to the Company or persons acting on its behalf are expressly qualified
in their entirety by these factors. Other than as required under the securities laws,
the Company does not assume a duty to update these forward-looking
statements.
Overview
China Health Industries Holdings, Inc. (CHHE) produces, markets and
distributes 21 CFDA-approved Traditional Chinese Medicines, 14 high-quality
nutritional supplements, plus various health devices and cosmetics. These
products address key market sectors, including female, juvenile and geriatric.
CHHE also aims to become one of China’s few vertically-integrated companies
in the mobile health sector. Through this endeavor, the company plans to
utilize physicians and other health experts to provide consumers owning a
mobile device with a subscription service offering instructions on healthy
living plus automatic alerts directing them to nearby pharmacies, hospitals or
other outlets carrying the company’s products, or other quality
pharmaceutical products.
CHHE has established an e-business center connecting consumers with
outlets that sell its products, and has also begun the acquisition of
comprehensive consumer data revealing individual susceptibility to certain
types of diseases and health conditions.
China Mobile Health (mHealth) Industry
• Chinese mobile medical applications market now approx.
$300 million on the way to $2 billion in 2017 (Brookings
Institution).
• mHealth particularly useful for Chinese rural and elderly
patients who often cannot visit quality health care providers.
• mHealth technology can enable doctors and health care
experts to monitor these patients with health advice provided
online.
• Current law prohibiting mobile health service providers from
offering prescriptions online under review by Chinese
authorities.
• China moving ahead with important mHealth initiatives,
including Wireless Heart Health project treatment and China
Center for mHealth Innovation (CCmHI) program.
• Major China tech companies investing heavily in mHealth
market include China Mobile, Lenovo, Tencent Holdings and
Alibaba.
Major Company Products
CHHE’s 21 medical drugs and 14 health supplements are
distributed primarily through sales agents in 26 provinces and
several large municipalities, including Beijing and Shanghai.
2014 Product Sales:
•Waterlilies Soft Capsule. For freckle removal and supplementing
water content of the skin: 55% of Fiscal 2014 revenue.
•Propolis and Black Ant Capsule. For immunoregulation. 25% of
Fiscal 2014 revenue
•Other Drug/Health Supplement Products: 20% of Fiscal 2014
revenue
Revenue/Income Highlights
• Fiscal (June) 2014 Revenue of $9.71 Million vs.
Fiscal 2013 Revenue of $9.0 Million
• Fiscal 2014 Net Loss of $658,467 vs.
Fiscal 2013 Net Loss of $1,246,528
• Fiscal 6M 2015 Revenue of $6.28 Million vs.
Fiscal 6M 2014 Revenue of $3.95 Million
• Fiscal 6M 2015 Net Income $330,255 vs.
Fiscal 6M 2014 Net Loss of $1,005,392
Balance Sheet Highlights
As of 12/31/2014:
•Cash and cash equivalents $28,321,000
•Total assets of $41,540,000
•Total liabilities of $5,167,000
•Current ratio 6:1
•No long-term debt
•Shareholder equity of $36,373,000
Financial Forecast
Revenue Growth
$ million
69.9
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
42.5
27.3
9.7
FY 2014
2015E
2016E
2017E
Net Income
$ million
11.1
12.0
10.0
8.0
6.4
6.0
3.7
4.0
2.0
0.0
(2.0)
(0.6)
FY 2014
2015E
2016E
2017E
Corporate Structure
China Health Industries Holdings, Inc.
(a Delaware company)
100%
China Health Industries Holdings Limited
(a Hong Kong company)
Outside of China
100%
Within China
Harbin Humankind Biology Technology
Co., Limited (a PRC company)
99%
Harbin Huimeijia Medicine Company
(a PRC company)
100%
Heilongjiang Huimeijia Pharmaceutical
Co., Ltd (a PRC company)
Management
Sun Xin, Chairman & CEO
Since 2003, Mr. Sun has been president and CEO of CHHE, founded as Harbin Humankind
Biology Technology Co., Ltd. From 1996 to 2002, he was founder and CEO of Heilongjiang
Bijie Chemical Industry Co., Ltd. Previously, he was director of marketing for Ha Yao Group
Sanchine Medicine Joint-Stock Co. Ltd. From 1991 to 1994, Mr. Sun was director for the
Northeast District of China for Pfizer Pharmaceuticals Ltd. For the prior three years, he was
production manager at Ha Yao Group Sanchine Medicine Joint-Stock Co. Ltd. He attended
Jia Mu Si Medical College and obtained his MBA from Renmin Univ. of China.
Baosen Ma, General Manager
In 2004, Mr. Ma was appointed president, secretary and director of Harbin Humankind.
For the prior eight years, he served as East China manager for Ha Yao Group Sanchine
Medicine Joint-Stock Ltd. From 1992 to 1996, he was vice general manger and sales
manager for ShangHai Dahua Solar Battery Co., Ltd., and for the previous five years was an
accountant with Harbin Keluola Solar Power Co., Ltd. Mr. Ma graduated from China Univ.
of Political Science and Law with a major in financial accounting.
Tao Feng, Financial Deputy General Manager
Ms. Feng joined Harbin Humankind as financial deputy general manager in 2009. From
1991 to 2008, she was financial officer at Harbin Measuring Machine and Tool Group. Ms.
Feng graduated from Peking University with a major in Financial Management.
Reasons to Invest
•
•
•
•
Wide range of successful products
Strong balance sheet
Accelerating sales and earnings
Seasoned management – CEO a former Pfizer District
Manager
• Undervalued player in one of China’s fastest growing
industries
• Optimally positioned to leverage product portfolio
and cash-on-hand to become one of China’s few
vertically-integrated mHealth companies