Golden Meditech FY2011-12 Interim Results

HONG KONG, Nov. 30, 2011 /PRNewswire-Asia-FirstCall/ --

Golden Meditech Holdings Limited ("Golden Meditech," together with its subsidiaries collectively as the "Group," - 801.HK; 910801.TW), a leading integrated healthcare enterprise in China, is pleased to announce the Group's interim results for the six months ended 30 September 2011.  

Reporting satisfactory growth in both Healthcare Services Segment and Medical Devices Segment, the Group's core businesses, total turnover amounted to HK$210,882,000, with 30% growth compared to the previous interim period.  Excluding the non-cash and non-operating loss of HK$41,526,000 due to volatility in global financial markets which led to the decline in value of the Group's securities and previously issued convertible notes, and non-operating gain of HK$34,653,000 due to gain on disposal of partial interest in an associate, the adjusted profit attributable to equity shareholders of the Company should amount to HK$83,518,000, representing 7% increase over the previous corresponding period.  

Healthcare Services Segment

Healthcare Services Segment, which consists of the Group's Hospital Management Business and GM-Medicare, the specialised medical insurance administration business, accounted for 30% of total turnover compared to 23% in the previous reporting period, reflecting the inclusion of revenue contribution from the newly acquired Shanghai East International Medical Centre ("SEIMC").  

Several key events took place during the interim period, including the expansion of Daopei Hospital in Beijing and the acquisition of SEIMC, a joint-venture with the renowned Shanghai East Hospital serving mostly the premium healthcare services market, setting the stage for this segment to become the key growth and revenue driver for the Group going forward.  Hence revenues from the hospital management operations reached HK$62,747,000 during the interim period with 65% increase relative to the previous interim period.  

Contribution from China Cord Blood Corporation (or "CCBC," CO.US), the Group's associate company, continued to report impressive revenue growth of 20% for the first half of the fiscal year relative to the previous year, contributing HK$29,728,000 to the Group during the interim period.  CCBC is already progressing toward establishing its third stem cell cord blood bank facility in Zhejiang Province, after Beijing and Guangdong.  In consideration of its excellent earnings potential and the low market capitalisation, the Group has increased its stake in CCBC to 41% as of this announcement date.

We are delighted to report that GM-Medicare, our medical insurance administration business, commenced operation during the review period with positive feedback from the market, substantiating our initial strategy to serve as the missing-link between multiple stakeholders in the medical insurance market in China.  

Medical Devices Segment

For the relevant interim period, Medical Devices Segment, which constitutes the Group's own-branded blood-related medical devices manufacturing and distribution business and a stake in China Medical National Equipment Industry Corp. ("CMIC"), remained as the largest source of revenue, contributing HK$131,894,000 that is equivalent to 63% of the Group's total turnover.  The segment has benefited from the increase in medical devices accessories sales which accounted for 38% of the revenues for Medical Devices segment, the segment reported 6% growth.

Strategic Investment Projects

The Group also disposed 2% of the shares of the previously NASDAQ-listed FunTalk China Holdings Limited for US$15 million, realizing an unaudited gain of HK$34,653,000 following the privatisation in August 2011, with an implied value of the entire company at US$430 million.  The Group held 19.8% of the company as of 30 September 2011.  FunTalk China contributed HK$40,094,000 to the Group's net profit as an associate company for the interim reporting period, representing 5% increase from the previous year in spite of the decrease in our shareholding during the period.

Outlook and Strategies

Mr. KAM Yuen, Chairman and Chief Executive Officer of the Group, commenting on the interim results of the Group, said, "As our current strategies denotes, the management envisages the healthcare services segment will increasingly become a key business focus for the Group, taking both its brand presence and resources to the next level.  The Healthcare Services Segment such as our hospital and related services as well as medical insurance administrative business, GM-Medicare, will directly benefit from China's growing and increasingly affluent middleclass, which has been a strong driving force behind the impressive growth in the industry, demanding for better care as well as newer products and services.   As we are confident that the ongoing medical reform in China will continuously create more business opportunities that are complementary to our unique strategic position, we are equally confident in our ability to capture these emerging opportunities on an integrated business platform with distinctive synergies between each operation, offering promising returns for our shareholders in the long run."  

About Golden Meditech Holdings Limited

Golden Meditech Holdings Limited is China's leading integrated-healthcare enterprise.  Golden Meditech is a first-mover in China, having established dominant positions in medical devices and healthcare services markets, 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.

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SOURCE Golden Meditech Holdings Limited