China Health Labs & Diagnostics Ltd. provides update on rural lab installations
March 15 2012 - 9:00AM
PR Newswire (Canada)
TSX-V: CHO OTCQX: CHLBF www.chinahealthlabs.com TORONTO,
March 15, 2012 /CNW/ - China Health Labs & Diagnostics Ltd.
("China Health" or the "Company") , is pleased to announce that it
now has 906 BK Clinlabs installed or contracted for installation in
eight provinces of China. In addition, it has delivered 63
Rural Mobile Labs to the Health Care Bureau in Xinjiang Uygur
Autonomous Region. As previously announced, China Health increased
its installed base of BK Clinlabs to 833 in five provinces of China
at the end of 2011, compared to 210 labs in three provinces at the
start of 2011 (see press release dated February 21, 2012).
The additional 73 BK Clinlabs and 63 Rural Mobile Labs are expected
to be delivered in the first and second quarters of 2012. The Rural
Mobile Labs are a new product developed to serve sparsely populated
remote rural areas that do not have local hospitals. China
Health worked with the customer, the Health Care Bureau in Xinjiang
Uygur Autonomous Region, to develop a solution that integrates its
lab diagnostic equipment, point of care technology and lab
management system (LMS) into a vehicle equipped with an extensible
treatment space. The Company expects to generate
approximately RMB 11.8 million ($1.9 million) from the sale.
The vehicles were provided by a separate supplier. Included in the
906 BK Clinlabs are 44 that are being installed in Chongqing,
China, 16 of which were installed in the fourth quarter of
2011. The Chongqing labs are being installed under a new
business model, whereby the Company will install the labs in return
for a five-year contract to provide testing reagents and
maintenance services that is expected to generate revenues of RMB
17.7 million ($2.8 million). Also included in the 906 BK Clinlabs
are a total of 45 labs for customers in Hebei Province, Qinghai
Province and Xinjiang Uygur Autonomous Region, with installations
expected to be completed before the end of the second quarter of
fiscal year 2012. The Company is also pleased to report that
Biosino Bio-Technology and Science Inc. has been allocated five
provinces in China (Sichuan, Jiangxi, Anhui, Shanxi and Shandong)
to lead marketing of the BK Clinlab rural hospital total diagnostic
lab solution, pursuant to the agreement signed in 2011. (See
press release dated November 7, 2011.) "Our track record of
delivering a total diagnostic solution to rural hospitals in China
has been the key to expanding our installed base to over 900
locations in eight provinces of China, compared to 86 locations in
two provinces when we listed on the TSXV in October of 2010," said
Wilson Yao, CEO of China Health. "Our diagnostic laboratory
equipment, lab design and installation, proprietary LMS, training
and ongoing service is providing rural hospitals with the ability
to diagnose and treat patients and helping the Chinese government
achieve its goal of providing improved health care to the rural
population. Our team did a great job using our technology and
knowledge of customer needs to develop the Rural Mobile Labs, a
great solution for remote areas without access to hospitals.
We plan to expand our installed base in the eight provinces where
we have locations, and add new provinces in 2012." 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 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 the
installations to be delivered and revenues to be generated from the
installations, reagents and maintenance services, the completion of
the installations by the second quarter of fiscal year 2012, the
expansion of the Company's installed base in the eight provinces
and expansion to new provinces in 2012 and the growth 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 deliver the new
installations, that the new installations will be completed by the
second quarter of fiscal year 2012, that payment for the
installations, reagents and maintenance services will be made and
revenue recognized, that the Company will have the resources and
ability to expand its installed base and expand to new provinces
and that the Company will be able to grow 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 deliver the outstanding
installations as scheduled or at all, the Company may not be able
to generate the expected revenue from its installations, reagents
and maintenance services as expected, the customers may not make
payment on a timely basis or at all upon installation, the Company
may not have the ability or resources to expand its installed base
in the eight provinces and to new provinces, and the Company may
not be able to grow 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 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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