TORONTO, Jan. 24 /CNW/ - China Health Labs & Diagnostics Ltd. ("China
Health" or the "Company") (CHO: TSXV), is pleased to announce that it
has been listed as a supplier to China's National Emergency Rescue Team
(the "NERT") with an initial order of 13 "Type A" Point of Care
Technology (POCT) diagnostic field labs. The initial order is expected
to generate revenue of over RMB 13 million (approximately $2 million),
and is expected to be delivered mostly in the first quarter of 2011.
The NERT was established in 2010 by the central government of China as a
first responder to natural disasters such as earthquakes and floods.
The NERT commenced operations with 13 "Central Level" teams to be
deployed as needed in China and to international emergencies. In
addition, the central government is expected to establish "Provincial
Level" teams to cover China's 32 provinces, municipalities and
autonomous regions. The NERT will be focused on emergency response, and
will work with the Chinese military to coordinate responses to major
natural disasters within China.
"We are very pleased to be named as a supplier to the NERT, our second
major customer for POCT products. Our POCT business had strong growth
in 2010 based on increased orders from the Chinese military, our
initial customer," said Wilson Yao, CEO of China Health. "We have
developed a unique patented solution with no direct competitors in
China based on our healthy relationship with the Chinese military. This
sale validates our confidence to invest the time and resources to
develop a full range of diagnostic products and services for the
military and emergency services sector. With our proprietary products
and early success in delivering results in the field, we believe that
POCT products will be one of our key drivers of revenue and profit
growth as we build our business with the Chinese military and the NERT
and seek new customers."
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 10.8% of
revenues or approximately $2.6 million of $23.8 million of total annual
revenues. As previously announced, the Company expects to report that
POCT sales to the Chinese military has more than doubled for the full
year of 2010 compared to the same period in 2009.
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 the NERT 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:
Kim Oishi, Director
Telephone: (416) 865-3351