China Health Labs And Diagnostics Ltd (TSXV:CHO)
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TORONTO, Aug. 29, 2011 /CNW/ --
TSX-V: CHO
OTCQX: CHLBF
www.chinahealthlabs.com
TORONTO, Aug. 29, 2011 /CNW/ - China Health Labs & Diagnostics Ltd.
("China Health" or the "Company") (TSXV:CHO; OTCQX:CHLBF), is pleased
to announce that it has completed installation of 587 BK Clinlabs, the
Company's medical diagnostics total lab solution, pursuant to the
Company's contract with Jilin Province to install a total of 587 BK
Clinlabs, as previously announced by the Company in a press release
dated April 18, 2011. Jilin Province is located in Northeast China
with a population of approximately 25 million. The BK Clinlabs have
been installed in existing rural hospitals to provide basic diagnostic
testing services for the rural communities of Jilin Province.
The installation of the 587 BK Clinlabs in Jilin is expected to generate
initial revenue of approximately RMB 41 million ($6.2 million) in
2011. In addition, the Company is negotiating an agreement to provide
ongoing service and maintenance to the Jilin BK Clinlabs as part of its
medical diagnostics total lab solution.
In 2010, China Health had revenues of approximately $33.7 million, of
which approximately $3 million was generated from sales of the BK
Clinlab total lab solution. Accordingly, with the Jilin agreement,
China Health expects revenues from rural hospitals and clinics to grow
by more than 100% in 2011, compared to 2010. After the completion of
the Jilin installations, China Health has installed its BK Clinlab in
797 rural hospitals and clinics in four provinces of China (Jilin,
Henan, Guizhou and Liaoning), compared to 210 locations at the end of
2010.
"We are very pleased that we completed the Jilin installation ahead of
schedule within the agreed six-month delivery timeframe. We look
forward to working with the rural hospitals in Jilin to support the BK
Clinlab network to provide reliable medical diagnostics to the large
rural population of Jilin," said Wilson Yao, CEO of China Health. "The
successful installation of the Jilin BK Clinlabs will be a showcase for
our ability to install a large network of diagnostic labs, to train
hospital staff to operate them efficiently and to provide an ongoing
supply of testing reagents, service and other lab consumables. We
believe that the growth of our BK Clinlab total solution is supported
by the Chinese central government policy of improving rural healthcare,
the value to rural hospitals of having reliable diagnosis capabilities
to serve and retain patients for treatment, the desire of the rural
population to have a local diagnostic service that can be trusted, and
the business model that provides initial and ongoing revenues and
profits to China Health."
The BK Clinlab was developed by China Health as a total lab solution
comprising diagnostic equipment, hardware and software, installation
and training and an ongoing supply of reagents and service for use in
rural hospitals and clinics. The Company believes that this approach
provides added value to the rural hospitals and builds strong customer
loyalty compared with selling individual products. The BK Clinlab
total lab solution includes basic in-vitro diagnostic testing equipment
(and complementary reagents) such as haematology analyzers, coagulation
analyzers, urine analyzers, biochemistry analyzers, and electrolyte
analyzers are mostly produced at the Company's Beijing manufacturing
plant. China Health has developed and patented the Lab Management
System ("LMS"), a proprietary computer hardware and software system
that connects the diagnostic equipment facilitating ease of operation,
quality control, management of patient information and monitoring of
reagent inventory. As part of the BK Clinlab, a network of service
centres staffed with trained technicians has and is being set up to
provide support to rural labs within the service area and to provide a
dependable source of reagents. As rural diagnostic facilities in China
are typically underserviced and often lack even basic diagnostic
capabilities, China Health believes that it is uniquely positioned to
capitalize on this opportunity, as they are the first company in China
to identify and create a medical laboratory solution specifically
tailored to service the more than 50,000 rural hospitals throughout
China.
China Health 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
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 revenue generation from the Company's
BK Clinlabs installed in Jilin and the expansion of the Company's
business through its sales network in areas where it has proprietary
products, limited competition and strong government support. The
forward-looking information is based on certain assumptions, which
could change materially in the future, including the assumption that
the payments for the BK Clinlabs will be made within a reasonable
period of time and revenue recognized and the Company will be able to
expand its sales network and business. 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 Company may not
be able to generate the expected revenue from its BK Clinlabs installed
in Jilin and the Company may not expand its business as expected
through its sales network in any of the areas in which it has
proprietary products, limited competition and strong government
support. 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.
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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/29/c6828.html
p Babak Pedrambr/ Investor Relationsbr/ TMX Equicom Groupbr/ T: (416) 815-0700 ext. 264br/ Email: a href="mailto:bpedram@equicomgroup.com"bpedram@equicomgroup.com/a /p