China Health Labs & Diagnostics Ltd. provides update on operating performance in 2011
February 21 2012 - 9:00AM
PR Newswire (Canada)
TSX-V: CHO OTCQX: CHLBF www.chinahealthlabs.com TORONTO,
Feb. 21, 2012 /CNW/ - China Health Labs & Diagnostics Ltd.
("China Health" or the "Company") , is pleased to announce that it
made progress in its mission of becoming a leading provider of
total solutions for medical diagnostics and food safety testing in
China and achieved its operational goals for the three months and
year ended December 31, 2011. Highlights include the following: --
Completed installation of 623 BK Clinlab total lab solutions in
rural hospitals in China, including 36 in the fourth quarter.
Installed base of BK Clinlabs increased to 833 in five provinces of
China by the end of 2011, compared to 210 labs in three provinces
of China at the start of 2011 (see press release dated December 13,
2011 for previous disclosure); -- Delivered 67 point of care
technology ("POCT") diagnostic solutions to four customers,
including 30 delivered in the fourth quarter of 2011, compared with
35 POCT diagnostic solutions to one customer delivered in the full
year of 2010 (see press release dated November 10, 2011 for
previous disclosure); -- Delivered on a $10.1 million (RMB 61.5
million) sales order for food safety total lab solutions to the
Beijing municipal government in the fourth quarter of 2011,
compared to $5.5 million delivered in the full year of 2010 (see
press release dated November 28, 2011 for previous disclosure); --
Strong growth of revenue and profits expected for the year ended
December 31, 2011 driven by growth in the three areas where the
Company provides total lab solutions, rather than selling
individual products. As previously reported, revenue grew by 42% to
$25.626 million and profit grew by 66% to $4.228 million for the
nine months ended September 30, 2011 compared to the same period
last year. Revenue and profit results for the fourth quarter
and year ended December 31, 2011 will be reported when the
Company's audited financial statements have been completed and
approved, expected before the end of April 2012. The Company
expects that in 2011, revenue seasonality will be similar to
previous years with the first quarter revenues being the smallest
due to the budgeting process of the Company's customers and Chinese
New Year holidays, and the fourth quarter revenues expected to be
the largest due to deliveries of products and services that have
been ordered during the year. Revenues for the nine months
ended September 30, 2010 accounted for approximately 54% of total
revenues of $33.705 million for the year ended December 31, 2010.
"Our team in China achieved the Company's operational goals for
2011, growing our sales and customer base in our total lab
solutions business, improving our technology, and expanding our
product lines", said Wilson Yao, CEO of China Health. "We
will continue to work with our customers to develop and implement
diagnostic solutions, improve our lab management system and provide
ongoing supplies of testing reagents and service. We believe
that the future growth of the Company will be driven by revenues
and profits from the proprietary solutions we have developed."
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 that are supported by Chinese government policy 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 the
reporting of the Company's financial results for the fourth quarter
and year ended December 31, 2011, the Company's revenue
seasonality, the future growth of the Company being driven by
revenues and profits from proprietary solutions, 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 Company will be able to
report its financial results as expected, that the Company's
revenue seasonality will continue to be similar to previous years,
that the Company's deliveries on sales orders will result in
revenues, that revenues and profits from the Company's proprietary
total lab solutions will drive the Company's growth, and that 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
risk that the Company may not be able to report on its fourth
quarter and year-end financial results as expected, the Company's
revenue seasonality may differ from previous years, customers may
not make payment on a timely basis or at all on the Company's
deliveries, the revenues and profits from the total lab solutions
may not drive the Company's growth if any, and the Company may not
be able to 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. China Health has also
included in this press release figures based on deliveries on sales
orders, 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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