China Health Labs & Diagnostics Ltd. Announces Sales Orders for its POCT Field Diagnostics Business
November 08 2011 - 6:45AM
PR Newswire (Canada)
TSX-V: CHO OTCQX: CHLBF www.chinahealthlabs.com TORONTO,
Nov. 10, 2011 /CNW/ - China Health Labs & Diagnostics Ltd.
("China Health" or the "Company") , is pleased to announce that it
has secured sales orders of over RMB 41.3 million ($6.6 million)
for its point of care technology ("POCT") diagnostics total
solutions and products for delivery in 2011, including $3.75
million in orders that were delivered in the six-month period ended
June 30, 2011. This represents an increase of 16% compared
with POCT revenues of $5.7 million for the full year of 2010, with
additional sales orders expected for delivery in 2011. The sales
orders are from two new customers, the Chinese Armed Police Force
and the Beijing Emergency Affairs Office and two customers that
have been previously disclosed, China's National Emergency Rescue
Team (the "NERT", see press release dated January 24, 2011), and
the Chinese military. The POCT diagnostic solutions and
products include the Type A POCT diagnostic field lab, POCT
backpacks and a customized POCT diagnostic field lab developed for
the Chinese Armed Police Force. "Our track record in delivering
POCT diagnostic field lab solutions to the Chinese military since
2009 has enabled us to add new customers this year,'" said Wilson
Yao, CEO of China Health. "Our unique patented solution has
delivered results in the field on rescue missions and military
exercises and we have no direct competitors in China. Our
investment in research and product development is providing good
returns as evidenced by our ability to provide a custom solution
for the Chinese Armed Police Force. We are working hard to
generate additional sales orders of our high margin POCT diagnostic
solutions for this year, and we believe that POCT products will
continue to be one of our key drivers of revenue and profit
growth." China Health has established a strong working relationship
with the Chinese military, which has lead to the cooperative
development of POCT products for a wide range of
applications. As disclosed in a press release dated December
8, 2010, China Health signed a three-year research and development
agreement with the Chinese Military Medical Equipment Research
Institute, based in Tianjin, and with the Third Military Medical
University, based in Chongqing, to develop POCT solutions and
products for military and rescue diagnostic field lab applications.
In 2009, when China Health made its first sales of the POCT "Type
A" diagnostic field labs, sales to the military accounted for 11%
of revenues or approximately $2.6 million of $23.8 million of total
annual revenues. In 2010, POCT sales to the Chinese military
more than doubled to $5.7 million, or 17% of $33.7 million of total
annual revenues, compared to the same period in 2009. In
2011, while the Chinese military is expected to remain the
Company's largest POCT customer, China Health has added three new
customers and expects continued strong growth in POCT revenues.
About China Health Labs & Diagnostics Ltd. China Health,
operating in China as the Biochem Group, is a leading diagnostic
lab solution provider for the public healthcare industry in China.
The Company develops and sells Biochem Group branded and
third-party medical diagnostic products and services to diagnostic
facilities in China. Customers include large urban hospitals, rural
hospitals, Chinese military and rescue operations, the Beijing
government and third-party distributors. In 2010, China Health had
revenues of approximately $33.7 million, and 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 AND NON-GAAP MEASURES 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 sales of
POCT products, the delivery schedule of POCT products, and the
revenue and profit growth of POCT products. The
forward-looking information is based on certain assumptions, which
could change materially in the future, including the assumption
that the orders for POCT products will result in sales, payment and
revenue recognition, the delivery of POCT products will be on
schedule, and POCT products will be key drivers of the Company's
revenue and profit growth. 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 POCT product orders from may not result
in sales, the Company may not be able to deliver the POCT products
on schedule, and the Company's POCT products may not contribute to
revenue and profit growth as expected. 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. China Health has also
included in this press release figures based on orders received,
which is a non-GAAP measure. Readers are cautioned that such
a measure is not recognized under Canadian GAAP and should not be
construed to be an indicator of performance or liquidity or cash
flows. China Health's method of calculating this measure may
differ from the method used by other entities and accordingly China
Health's measure may not be comparable to the measure used by other
entities. 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. CHINA HEALTH LABS & DIAGNOSTICS CONTACT: Judyanna
ChenChief Financial OfficerChina Health Labs & Diagnostics
Ltd.T: (416) 865-3351Email: jchen@chinahealthlabs.comBabak
PedramInvestor RelationsTMX Equicom GroupT: (416) 815-0700 ext.
264Email: bpedram@equicomgroup.com
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