Golden Meditech Announces Annual Results for FY 2009/10
--Profit from Continuing Operations Tripled Year-on-Year --Two Affiliate Companies Successfully Listed on Major US Stock Exchanges
HONG KONG, July 22, 2010 /PRNewswire via COMTEX/ -- China's leading integrated medical enterprise Golden Meditech Holdings Limited ("Golden Meditech" or the "Group," HKEx: 801) is pleased to announce its annual results for the year ended 31 March 2010. During the reporting period, total turnover amounted to HK$285,467,000 (the Group ceased to consolidate revenue from the cord blood banking division into its financial statements), representing a y-o-y increase of 3.2%; the Group's profit from continuing operations amounted to HK$134,395,000, tripled that from the previous year.
To maintain the liquidity of the Company's shares, the Company has issued convertible notes and warrants during the reporting period with a principal amount of US$25,200,000 and US$8,400,000 respectively which are due in 2014. As the Company's shares price has increased after the issuances, a non-cash expense of HK$102,357,000 has been recognised, impacting the Group's profit attributable to equity holders, which has increased by 104% at HK$116,412,000 while basic earnings per share amounted to HK 7.2 cents. Excluding the said expense, profit attributable to equity shareholders would be HK$218,769,000, representing a y-o-y increase of 283%, while earnings per share would be HK13.7 cents. As of the date of announcement, 52% of the convertible notes have been converted into ordinary shares of the Company. The Company does not declare a dividend during the reporting period, though it does not rule out the possibility of sharing with our valuable shareholders benefits from the public offerings in the future.
The Group reported tremendous growth in its two key business areas, namely, the medical devices segment and the healthcare services segment during the year under review. Growth is most notable in the hospital management business, where the Group has completed the acquisition of a hospital management business on the back of the medical reform in China. This business has contributed HK$51,763,000 in revenue for the three quarters ended 31 March 2010, accounted for 18% of the Group's total revenue.
The Group is the only foreign company with a nationwide hospital management license. It also manages two leading specialist hematology hospitals, one each in Beijing and Shanghai respectively. Performance of the medical devices segment has been in-line with management's expectations, accounting for 82% of the Group's total revenue. Medical accessories generated HK$87,455,000 in sales with a y-o-y growth of 20%. The Group has been actively expanding its hospital market and has voluntarily adjusted the average selling price by 25% to encourage greater uptake for medical devices. The management believes that the government will launch more favourable healthcare policies to strengthen controls over safe administration of surgical blood, facilitating greater overall growth in this sector.
Mr. Kam Yuen, Chairman of the Group, revealed that following the Group's successful transfer of listing onto the Main Board of The Hong Kong Stock Exchange in June 2009, the Group's two affiliates -- China Cord Blood Corporation ("CCBC," NYSE: CO) and FunTalk China Holdings Limited /quotes/comstock/15*!ftlk/quotes/nls/ftlk (FTLK 7.99, +0.86, +12.06%) were listed on the New York Stock Exchange (NYSE) and the NASDAQ Stock Exchange respectively at the end of 2009. The combined current market value of the Group's stakes in these two affiliates is close to HK2.1 billion. Hence the management is of the view that the strategy to securitise different business operations via separate listings will strengthen their long-term business growth, while bring in significant return for the Group and the shareholders. Mr. Kam reiterated that the Group would continuously explore opportunities to unleash the intrinsic value of each operation.
About Golden Meditech Holdings Limited
Golden Meditech Holdings Limited is China's leading integrated-healthcare device and service operator, and the first medical device enterprise that was publicly listed outside of the PRC on the Stock Exchange of Hong Kong Limited (HKEX). Golden Meditech is a first-mover in China, having established dominant positions in different market areas over the years, thanks to its strengths in innovation and market expertise and the ability to capture emerging market opportunities. Going forward, the Group will continue its pursuit in becoming a leader in China's medical industry both through organic growth and strategic expansion.
(Financial Highlights overleaf)
Financial Highlights
Year ended 31 March 2010 2009 % Change
(HK$ '000) (restated)
Turnover of Continuing Operations 285,467 276,535 3.2%
Medical Devices 233,704 276,535 (15.5%)
Hospital Management 51,763 -- N/A
Gross Profit of Continuing Operations 172,644 186,698 (7.5%)
Gross Profit Margin of Continuing
Operations 60.5% 67.5% (7.0%)
Non-cash Expenses on the Issuances of
Convertible Notes and Warrants (102,357) -- N/A
Profit from Continuous Operations 134,395 35,514 278%
Profit Attributable to Equity
Shareholders 116,424 57,089 104%
Earnings per share (HK$ cents)
Basic 7.2 3.7 95%
Diluted 6.8 3.6 89%
Adjusted Profit Attributable to Equity
Holders (Excluding Non-cash Expense on
the Issuance of Convertible Notes and
Warrants) 218,769 57,089 283%
Adjusted earnings per share (HK$ cents)
13.7 3.7 270%
* Remark: Since July 2009, the Group's stake in China Cord Blood
Corporation was diluted from 50.25% to 43.6% since its listing on the
NYSE in November 2009. The Group has ceased to include revenue from the
division and has since adopted equity accounting for CCBC's earnings
contribution.
For enquiries, please contact:
Investor Relations Department
Golding Meditech Holdings Limited
Tel: +852-3605-8180
Fax: +852-3605-8181
Email: ir@goldenmeditech.com
SOURCE Golding Meditech Holdings Limited
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