TORONTO, Nov. 10, 2011 /CNW/ - China Health Labs & Diagnostics Ltd.
("China Health" or the "Company") (CHO: TSXV), 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
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.
SOURCE CHINA HEALTH LABS
For further information:
Chief Financial Officer
China Health Labs & Diagnostics Ltd.
T: (416) 865-3351
TMX Equicom Group
T: (416) 815-0700 ext. 264