Golden Meditech Announces 2010/2011 Interim Results

Golden Meditech Holdings Limited
2010-11-29 15:45 1092

Total Turnover Up 24% and Profit After Tax Substantially Increased by 171%

Devices Business Made Significant Inroads into Mid-tier Hospitals with Double Digit Growth in Accessories Sales

Services Business Strengthened by Growing Hospital Management Business  and New Medical Insurance BPO

HONG KONG, Nov. 29, 2010 /PRNewswire-Asia/ -- Golden Meditech Holdings Limited ("Golden Meditech" or the "Group," HKEx: 801), China's leading integrated healthcare enterprise, is pleased to announce today its interim results for the 2010/2011 financial year.  For the six month period ended September 30, 2010, the Group reported total revenue of HK$163million with 24% increase compared to the previous interim period.  Profit after tax amounted to HK$161million, representing an increase of 171% relative to the previous interim period. 

Mr. Kam Yuen, Chairman and Chief Executive Officer of the Group said, "Benefiting from China's medical reform and a favourable market environment, the Group's medical devices segment has gradually penetrated more mid-tier hospitals as the product garnered greater acceptance, which in turn has substantially benefited medical accessories sales leading to 14% revenue growth relative to the previous year.  In order to cater to the shortage in surgical blood supply, the Ministry of Health has strengthened its policies on surgical blood safety and encouragement for the use of autologous blood, which translated into more business opportunities for the Group.  In August 2010, the Group raised HK$283million from private equity investors to expand its production capacity while it also stepped up marketing and brand building initiatives to reinforce its leading position and respective share in the blood purification market."

On the other hand, the Group's hospital management business reported the first full-term interim revenue since acquisition of this division was completed in June 2009, which amounted to HK$38million, accounted for 23% of total revenue.  The Group's hospital management business is the first foreign company with a nation-wide hospital management license and currently manages two leading haematology hospitals in China.

The Group's US-listed affiliates, China Cord Blood Corporation and FunTalk China Holdings Limited, both sustained high yet stable growth and together contributed HK$54million to the Group's earnings.

As its business operations reported continuous across-the-board growth, in April 2010, the Group teamed-up with two leading health maintenance organizations that are service providers of the Medicare programme for the US government to form a new joint venture in Shanghai.  This new business is China's first medical insurance information management and Business Process Outsourcing service provider to cater to the emergent needs for such services in China.

Commenting on the Group's business outlook, Mr. Kam reiterated that as the ongoing medical reform will bring about even more opportunities within China's healthcare sector, the Group is poised to enjoy significant synergies between individual operations within its integrated business platform, rendering it in an excellent position with encouraging growth prospects.

About Golden Meditech Holdings Limited

Golden Meditech Holdings Limited is China's leading integrated-healthcare device and service operator, and the first medical device enterprise that was publicly listed outside of the PRC on the Stock Exchange of Hong Kong Limited (HKEx).  Golden Meditech is a first-mover in China, having established dominant positions in medical devices and healthcare services markets over the years, thanks to its strengths in innovation and market expertise and the ability to capture emerging market opportunities.  Going forward, the Group will continue to pursue a leading position in China's healthcare industry both through organic growth and strategic expansion.

For enquiries, please contact:

Investor Relations Department
Golding Meditech Holdings Limited
Address:  48/F, Bank of China Tower, 1 Garden Road, Central, Hong Kong
Tel:  +852-3605-8180
Fax:  +852-3605-8181

Source: Golden Meditech Holdings Limited