China Health Labs & Diagnostics Ltd. completes installation of 587 total lab solutions in rural hospitals and clinics in Jili...
August 29 2011 - 9:00AM
PR Newswire (Canada)
TORONTO, Aug. 29, 2011 /CNW/ -- TSX-V: CHO OTCQX: CHLBF
www.chinahealthlabs.com TORONTO, Aug. 29, 2011 /CNW/ - China Health
Labs & Diagnostics Ltd. ("China Health" or the "Company")
(TSXV:CHO; OTCQX:CHLBF), is pleased to announce that it has
completed installation of 587 BK Clinlabs, the Company's medical
diagnostics total lab solution, pursuant to the Company's contract
with Jilin Province to install a total of 587 BK Clinlabs, as
previously announced by the Company in a press release dated April
18, 2011. Jilin Province is located in Northeast China with a
population of approximately 25 million. The BK Clinlabs have
been installed in existing rural hospitals to provide basic
diagnostic testing services for the rural communities of Jilin
Province. The installation of the 587 BK Clinlabs in Jilin is
expected to generate initial revenue of approximately RMB 41
million ($6.2 million) in 2011. In addition, the Company is
negotiating an agreement to provide ongoing service and maintenance
to the Jilin BK Clinlabs as part of its medical diagnostics total
lab solution. In 2010, China Health had revenues of approximately
$33.7 million, of which approximately $3 million was generated from
sales of the BK Clinlab total lab solution. Accordingly, with
the Jilin agreement, China Health expects revenues from rural
hospitals and clinics to grow by more than 100% in 2011, compared
to 2010. After the completion of the Jilin installations, China
Health has installed its BK Clinlab in 797 rural hospitals and
clinics in four provinces of China (Jilin, Henan, Guizhou and
Liaoning), compared to 210 locations at the end of 2010. "We are
very pleased that we completed the Jilin installation ahead of
schedule within the agreed six-month delivery timeframe. We
look forward to working with the rural hospitals in Jilin to
support the BK Clinlab network to provide reliable medical
diagnostics to the large rural population of Jilin," said Wilson
Yao, CEO of China Health. "The successful installation of the
Jilin BK Clinlabs will be a showcase for our ability to install a
large network of diagnostic labs, to train hospital staff to
operate them efficiently and to provide an ongoing supply of
testing reagents, service and other lab consumables. We
believe that the growth of our BK Clinlab total solution is
supported by the Chinese central government policy of improving
rural healthcare, the value to rural hospitals of having reliable
diagnosis capabilities to serve and retain patients for treatment,
the desire of the rural population to have a local diagnostic
service that can be trusted, and the business model that provides
initial and ongoing revenues and profits to China Health." The BK
Clinlab was developed by China Health as a total lab solution
comprising diagnostic equipment, hardware and software,
installation and training and an ongoing supply of reagents and
service for use in rural hospitals and clinics. The Company
believes that this approach provides added value to the rural
hospitals and builds strong customer loyalty compared with selling
individual products. The BK Clinlab total lab solution
includes basic in-vitro diagnostic testing equipment (and
complementary reagents) such as haematology analyzers, coagulation
analyzers, urine analyzers, biochemistry analyzers, and electrolyte
analyzers are mostly produced at the Company's Beijing
manufacturing plant. China Health has developed and patented
the Lab Management System ("LMS"), a proprietary computer hardware
and software system that connects the diagnostic equipment
facilitating ease of operation, quality control, management of
patient information and monitoring of reagent inventory. As
part of the BK Clinlab, a network of service centres staffed with
trained technicians has and is being set up to provide support to
rural labs within the service area and to provide a dependable
source of reagents. As rural diagnostic facilities in China
are typically underserviced and often lack even basic diagnostic
capabilities, China Health believes that it is uniquely positioned
to capitalize on this opportunity, as they are the first company in
China to identify and create a medical laboratory solution
specifically tailored to service the more than 50,000 rural
hospitals throughout China. China Health intends to expand its
business by focusing its efforts on expanding its sales network in
three areas where it provides proprietary solutions, has limited
competition and which are supported by Chinese government policies
and budgets: BK Clinlab total lab solutions for rural hospitals and
clinics, POCT solutions for military and emergency rescue services,
and food safety solutions for large cities in China. Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION This press release contains
forward-looking statements and information that are based on the
beliefs of management and reflect China Health's current
expectations. When used in this press release, the words
"estimate", "project", "belief", "anticipate", "intend", "expect",
"plan", "predict", "may" or "should" and the negative of these
words or such variations thereon or comparable terminology are
intended to identify forward-looking statements and
information. The forward-looking statements and information
in this press release includes information relating to revenue
generation from the Company's BK Clinlabs installed in Jilin and
the expansion of the Company's business through its sales network
in areas where it has proprietary products, limited competition and
strong government support. The forward-looking information is
based on certain assumptions, which could change materially in the
future, including the assumption that the payments for the BK
Clinlabs will be made within a reasonable period of time and
revenue recognized and the Company will be able to expand its sales
network and business. Such statements and information reflect
the current view of China Health with respect to risks and
uncertainties that may cause actual results to differ materially
from those contemplated in those forward-looking statements and
information. By their nature, forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause our actual results, performance or achievements, or
other future events, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among
others, the risks that the Company may not be able to generate the
expected revenue from its BK Clinlabs installed in Jilin and the
Company may not expand its business as expected through its sales
network in any of the areas in which it has proprietary products,
limited competition and strong government support. China
Health cautions that the foregoing list of material factors is not
exhaustive. When relying on China Health's forward-looking
statements and information to make decisions, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events. China Health has assumed
a certain progression, which may not be realized. It has also
assumed that the material factors referred to above will not cause
such forward-looking statements and information to differ
materially from actual results or events. However, the list
of these factors is not exhaustive and is subject to change and
there can be no assurance that such assumptions will reflect the
actual outcome of such items or factors. THE FORWARD-LOOKING
INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE
EXPECTATIONS OF CHINA HEALTH AS OF THE DATE OF THIS PRESS RELEASE
AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE.
READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING
INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY
OTHER DATE. WHILE CHINA HEALTH MAY ELECT TO, IT DOES NOT
UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT
AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS. To view this news
release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/August2011/29/c6828.html
p Babak Pedrambr/ Investor Relationsbr/ TMX Equicom Groupbr/ T:
(416) 815-0700 ext. 264br/ Email: a
href="mailto:bpedram@equicomgroup.com"bpedram@equicomgroup.com/a /p
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