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Aptus Holdings Limited
(Stock Code: 8212)
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Listing Date: |
14 May 2002 |
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Offer Price: |
HK$0.45 to HK$0.55 per share |
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Par Value: |
HK$0.01 each |
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No. of Shares under the offer : |
127,760,000 shares |
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No. of Shares under Placing: |
127,760,000 Placing Shares |
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Market Capitalization: |
HK$270 million to HK$330 million |
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Sponsor: |
Kingston Corporation Finance Ltd |
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Chairman: |
Mr. Chen Vee Li, Felix |
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Fund Raising |
HK$54.79 million to HK$66.97 million |
Major Shareholder:
- Mr. Chen Vee Li, Felix - 28.11% interest
- Mr. Ma Wai Hung, Vincent - 22.11% interest
Company Subsidiaries:
- Peaceford International Ltd (100%): Provision of sales force management consulting services
- Aptus Medical Group Limited (100%): Investment holding & product consulting services
- Albatross Overseas Ltd (100%): Provision of product consulting services
- Beijing Webyiyao Management Co.,Ltd (80%): Provision of product consulting services
- Beijing Webyiayo.com Co., Ltd (80%): Provision of direct marketing services (PRC)
COMPANY OVERVIEW
Aptus Group is a total solutions provider to international and PRC pharmaceutical and healthcare companies by providing them with sound and integrated product commercialization services as a CSO in the PRC. Such commercialization services include direct marketing, product consulting and sales force management consulting services.
Aptus Group aims to establish a leadership position in the PRC as a commercialization services provider in the sales and marketing of high quality pharmaceutical and healthcare products and in the dissemination of technological information relating to the pharmaceutical and healthcare industries in the PRC. Also, the product consulting services offered by Aptus Group include the provision of advice on product positioning product packaging, product launching, product research, market research, marketing strategies and drug registration advisory services.
Direct marketing services offered by Aptus Group are "one-to-one" marketing services aimed to deliver a specific message to target audiences in order to influence their usage habits. The services are primarily on a "per product" or "per program" basis, which include direct mailing, market research programs, sample fulfillment, call-centre services and distribution of sponsored healthcare publications. Some selected services as available on Aptus Group's website at www.webyiyao.com.
COMPETITIVE ADVANTAGES
The Directors believe that the Group has the following competitive advantages:
- Its comprehensive and continually updated database of physicians and hospitals in the PRC which as at the Latest Practicable Date contained details of over 600,000 physicians and over 6,000 hospitals in the PRC;
- The in-depth experience of its management team in the PRC pharmaceutical and healthcare industries especially with the operations of international pharmaceutical companies in the PRC and overseas.
- Its alliances with renowned companies and institutions in the pharmaceutical and information technology industries the PRC and overseas thereby enabling its clients to lower their operating costs involved in product launch, sales and marketing and to focus on their core business; and
- Its value enhancing business model, in which each functional unit can add substantial value to its clients businesses via sharing of its internal resources.
RISK FACTORS
Reliance on major clients;
Limited operating history ;
Risk related to the Aptus Group future operation ;
Reliance on key personnel and executives;
Risk related to the trademark and intellectual rights.
FINANCIAL RECORD
| ¡@ |
Year ended 30th Sep 2000 (HK$'000) |
Year ended 30th Sep 2001 (HK$'000) |
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Turnover |
2,126 |
8,504 |
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Profit/(Loss) before tax |
(1,158) |
472 |
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Net profit/(Loss) |
(1,129) |
209 |
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Total Assets |
21,826 |
19,025 |
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Total Liabilities |
5,78 |
2,77 |
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Total equities |
16,046 |
16,255 |
FUTURE PLANS
The Group will increase the number of experienced and accomplished accounts executives in both the direct marketing team and the product consulting team and to improve direct marketing support facilities and purchase additional support facilities order to exploit the full potential of each of the existing and new clients.
The Group will secure distribution rights of overseas blockbuster products by paying royalties. Aptus Group intends to commence such business so as to maximize the return on Aptus Group 's existing resources and to vertically extend Aptus Group's existing services. With the acquisition of distribution rights of overseas blockbuster products, Aptus Group will be able to develop a diversified product portfolio and to achieve greater economies of scale.
The Group will enrich the information contained in the database, to upgrade the hardware and software computer facilities of the database management system and recruit more database management personnel. With these enhancements, Aptus Group will be able to develop specialized database for hospitals, pharmacies, patients, disease and physicians.
To actively secure more overseas strategic alliances including medical journal publishers, continuing medical education service providers and database management companies. The Directors believe that the alliances with renowned overseas strategic partners would enhance the image of Aptus Group and extend its business network which will enhance Aptus Group's opportunities to obtain more business and, as a result, enlarge tis earnings base.
TURNOVER BREAKDOWN FOR THE YEAR ENDED 30 SEPTEMBER 2001

USE OF PROCEEDS
The net proceeds from the Placing, after deducting the related expenses, are estimated to amount to approximately HK$32.5 million (based on the offer price HK$0.5 per share). The Group at present intends to apply the net proceeds as follows:
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To recruit Aptus Group's direct marketing account executives and direct marketing support personnel |
18.5% |
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To recruit Aptus Group's product consulting executives and product consulting support personnel |
18.5% |
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To recruit Aptus Group's sales force management consulting team |
20.6% |
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To secure additional overseas pharmaceutical products distribution rights |
10.8% |
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To enrich database content |
13.5% |
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To enrich the Internet portal |
2.5% |
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To introduce human resource management services |
7.7% |
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To form alliances with medical journal publishers |
4.6% |
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Working capital |
3.3% |
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