Golden Meditech Holdings Limited (SEHK stock code: 00801) (“Golden Meditech” or the “Company”, together with its subsidiaries, the “Group”), a leading integrated healthcare enterprise in China, announces today its interim results for the six months ended 30 September 2019
| Revenue Fluctuated Amidst the Challenging Market Conditions Significant Increase in Revenue Noted at Beijing Sunbow Obstetrics & Gynecology Hospital HONG KONG, Nov. 27, 2019 /PRNewswire/ --
Golden Meditech Holdings Limited (SEHK stock code: 00801) (“Golden Meditech” or the “Company”, together with its subsidiaries, the “Group”), a leading integrated healthcare enterprise in China, announces today its interim results for the six months ended 30 September 2019 (the “Reporting Period”). During the Reporting Period, the overall business operations of the Group remained stable, of which the results of the healthcare services segment showed fluctuations. The Group recorded revenue of HK$157,249,000, representing a slight decrease of 4.1% as compared to the same period last year. Revenue from the healthcare services segment and the medical devices segment accounted for 47.9% and 49.8% of the Group’s revenue, respectively. The adjusted loss attributable to equity shareholders of the Company was HK$152,429,000, up 10.7% as compared to the corresponding period last year; the adjusted basic loss per share was 5.23 HK cents, up 10.8% as compared to the same period last year. Such increase was largely due to the fair value loss recorded on other financial assets during the Reporting Period. Mr. Feng Wen, Chairman of the Group, said, “The progressions of all kinds of industries are affected to a certain extent by the current challenging situations in the global and Chinese economies. However, China’s great healthcare sector is still in its early stage of development and enormous potential remains to be fully tapped. The Group will seize the opportunity and invest in its hospitals in a timely and modest manner to further develop its hospital businesses. Moreover, the Group will focus on innovations and actively develop strategic products in overseas market. This would enable the Group to enhancing its research and development capabilities as well as creating technical barriers, so as to achieve sustainable growth.” Healthcare Services Segment During the Reporting Period, healthcare services revenue fell by 9.8% to HK$75,375,000 as compared to the corresponding period last year, accounting for 47.9% of the Group’s revenue. Revenue generated from hospital business fell slightly by 4.5% to HK$72,201,000 as compared to the same period last year, accounting for 95.8% of the healthcare services revenue. Revenue generated from medical insurance administration business increased by 13.4% to HK$3,020,000 as compared to the corresponding period last year, accounting for 4.0% of the healthcare services revenue. The cells and tissues storage and genetic testing businesses recorded revenue of HK$154,000, accounting for 0.2% of the healthcare services revenue. Hospital Business Beijing Sunbow Obstetrics & Gynecology Hospital recorded revenue of HK$20,863,000, representing a significant increase of 68.9% as compared to the same period last year. The increase was mainly attributable to the growing demand of expectant mothers for quality healthcare services. Beijing Qinghe Hospital’s rental income reduced by 28.0% to HK$25,698,000 as compared to the corresponding period last year. The decline was mainly due to a decrease in utility income. Shanghai East International Medical Center (“SEIMC”) has carried on with its relocation and expansion work, leading to a drop of 6.9% in revenue to HK$25,640,000 as compared to the corresponding period last year. SEIMC moved into the new site in the second half of 2019 and is expected to enhance its operation as well as revenue in the future. Cells and Tissues Storage and Genetic Testing Services Businesses The cells and tissues storage and genetic testing businesses recorded revenue of HK$154,000 due to the laboratory improvement work. Medical Insurance Administration Business Medical insurance administration business recorded revenue of HK$3,020,000, representing an increase of 13.4% as compared to the corresponding period last year. The increase was mainly attributable to the addition of new customers, the increase of existing customers’ underwriting groups as compared to the same period last year and the growth of WeChat online claims business. The Group will further leverage its advantage in areas of smart platform and cloud data, so as to expanding its large insurance company customers and enhancing its business performance. Medical Devices Segment Medical devices revenue increased slightly by 0.7% to HK$78,315,000 as compared to the corresponding period last year, accounting for 49.8% of the Group’s revenue. Strategic Investments Chinese Herbal Medicines Business The Group’s Chinese-herbal-medicines production facility is located in Shanghai Qingpu District. It is principally engaged in the research, development, production and sales of traditional Chinese medicines, active pharmaceutical ingredients and healthcare products. Cell Therapy Business Cellenkos, Inc. (“Cellenkos”), a 20.2% associate of the Group, aims to develop cord blood derived T-regulatory cellular therapies in treating autoimmune diseases, and owns a stand-alone manufacturing facility in Houston that meets good manufacturing practice (“GMP”) standards. Cellenkos has proceeded to phase I clinical trial of its lead product CK0801 for treating patients with bone marrow failure syndrome as well as Guillain-Barré syndrome. Cellenkos plans to further develop cord blood derived T-regulatory cellular products for clinical application to other diseases such as haematologic and demyelinating diseases. Precision Medicine Business Golden Meditech Javadi Precision Medicine Limited (“GM Javadi”), a 40.0% joint venture of the Group, owns a renowned day clinic in the United States of America that focuses on the combined treatment of chemotherapy, immunotherapy and targeted therapy for various cancers. It is believed that the promotion of the cooperation in precision medicine business will bring considerable benefits to the Group in the future. Other Investments ASA Asset Management Co., Ltd. (“ASA”) ASA, a 50.0% joint venture of the Group, is principally engaged in the provision of real estate asset management, investment consultancy and property arrangement services (including trust agreement and financial instrument services) and owns permits in wealth management in Japan. ASA manages offices, residences, commercial facilities as well as healthcare premises. ASA was renamed as KINKA Asset Management Co., Ltd. on 18 November 2019. Life Corporation Limited (“LFC”) LFC, a 50.23% associate of the Group, and its wholly-owned subsidiary are currently developing an automated columbarium in Singapore. The construction of the automated columbarium is expected to be completed in mid-2020. The management believes that once LFC’s automated columbarium business commences, it will bring better returns to the Group. Outlook Looking ahead, Mr. Feng commented, “The Group will seize the window of opportunity in the healthcare sector and further enhance the competitiveness of its business segments. The Group will proactively promote its high-end healthcare services business, so as to continue to improve its operating performance as well as profitability. The Group will take key steps toward exploring high-quality investment projects that fit into the Group’s strategy and developing innovative products, with a view to laying favourable groundwork for the Group’s sustainable development in the great healthcare sector.” About Golden Meditech Holdings Limited (SEHK stock code: 00801) Golden Meditech (www.goldenmeditech.com) is a leading integrated-healthcare enterprise in China. It is a first-mover in China, having established its dominant positions in several markets including the medical devices market and the hospital market in the healthcare industry, thanks to its strengths in innovation and market expertise and the ability to capture emerging market opportunities. Going forward, Golden Meditech will continue to pursue a leading position in China’s healthcare industry both through organic growth and strategic expansion.
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Company Codes: HongKong:0801, OTC-PINK:GMDTY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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