Golden Meditech Announces 2012 / 2013 Interim Results

            Golden Meditech Announces 2012 / 2013 Interim Results

Revenue from Core Businesses Maintained Steady Growth

Profit Attributable to Shareholders up 11.2%

New Hospital in Beijing Opens by end of FY12 / 13 as Catalyst for Future
Growth

PR Newswire

HONG KONG, Nov. 27, 2012

HONG KONG, Nov. 27, 2012 /PRNewswire/ --

                                            6 months ended
HK$                                         Sep 30 2012   Sep 30 2011   H-o-H
Turnover
Hospital Management Service Income          71,173,000    62,747,000    +13.4%
Medical Insurance Administration Service    497,000       379,000       +31.1%
Income
Medical Devices Sales                       83,432,000    81,900,000    +1.9%
Medical Accessories Sales                   57,217,000    49,994,000    +14.4%
Chinese Herbal Medicine Sales               12,145,000    15,862,000    -23.4%
                                            224,464,000   210,882,000   +6.4%
Share of Profit from Associates
China Cord Blood Corporation ("CCBC,"       30,120,000    29,728,000    +1.3%
CO:US)
China National Medical Equipment Industry   1,608,000     2,272,000     -29.2%
Corp. (CMIC)
Fortress Group Limited (Formerly FunTalk    24,435,000    40,094,000    -39.1%
China)
Profit After Tax                            96,903,000    84,425,000    +14.8%
Profit Attributable to Shareholders         85,255,000    76,645,000    +11.2%
Adjusted Profit Attributable to             30,363,000    83,518,000    -63.6%
Shareholders^*
Earnings Per Share (Basic)                  4.23 HK cents 3.93 HK cents +7.6%
Adjusted Earnings Per Share (Basic)^#      1.51 HK cents 4.28 HK cents -64.7%

   Excluding non-cash and non-operating gain of HK$54,892,000 (6 months ended
   30 September 2011:
   non-cash and non-operating loss of HK$41,526,000) due to fair value changes
^* of financial assets
   and financial liabilities; and excluding gain on partial disposal of an
   associate of HK$34,653,000
   recorded in the 6 months ended 30 September 2011
^# Based on Adjusted Profit Attributable to Shareholders

Golden Meditech Holdings Limited ("Golden Meditech," together with its
subsidiaries collectively as the "Group," - 801.HK; 910801.TW), a leading
integrated healthcare enterprise in China, is pleased to announce the Group's
interim results for the six months ended 30 September 2012.

During the interim period, the Group reported financial results that were in
line with management expectations and barely affected by the current global
environment. Total revenue for the interim period increased by 6.4% to
HK$224,464,000. Profit attributable to shareholders of the period increased
by 11.2% to HK$85,255,000. Excluding non-cash gain of HK$54,892,000 due to
fair value changes of financial assets and financial liabilities, adjusted
profit attributable to shareholders of the period, which included
contributions from associates, dropped by 63.6% to HK$30,363,000.

Mr. Kam Yuen, Chairman and Chief Executive Officer of the Group, said, "Golden
Meditech's solid healthcare businesses have weathered the complicated market
conditions, and allowed the Company to take advantage of the opportunities
that have arisen. The medical devices segment continued to be favoured by the
Chinese policies on blood transfusion, while healthcare services segment
recorded a steady performance despite the Beijing haematology hospital
operations being temporarily suspended until the 600-bed new hospital to be
operational by the end of this fiscal year. With living standard and aging
population continue to grow, public awareness of quality healthcare is
increasing, and the Chinese government has exerted greater support to the
development of healthcare industry, which provides a favourable platform for
Golden Meditech to drive the business forward."

HEALTHCARE SERVICES SEGMENT

For the interim period, revenue from the healthcare services segment remained
steady at HK$71,670,000. Revenue generated from the hospital management
business and medical insurance administration business were HK$71,173,000 and
HK$497,000 respectively.

The flat revenue growth from the hospital management business during the
period was due to the strategic relocation of hospital facilities in Beijing
to a much more spacious site which is scheduled to be opened by the end of the
year. As a result, the Beijing hospital is temporarily closed, which has
slowed down the overall hospital management business this year.

In tandem with the Group's long-term strategies in hospital management
business, it entered into an agreement to increase ownership in its
non-wholly-owned hospital management subsidiary, GM Hospital Group Limited,
through acquiring the US$28,000,000 Convertible Notes from New Horizon Capital
III, L.P. ("New Horizon") in August 2012. New Horizon in return received
279,344,444 new shares from Golden Meditech at the issue price of HK$0.9 per
share.

China Cord Blood Corporation ("CCBC"), an associate company of the Group
continued to post strong half-year results with 31.1% growth in revenue and
33.5% increase in operating profit to US$14,550,000. However, its net profit
was affected by non-cash accounting treatment for derivatives associated with
financial instruments of the convertible notes issued to KKR investment fund
in April 2012. As the results, CCBC's contribution to the Group only
increased slightly by 1.3% to HK$30,120,000.

With strong confidence in the prospects of CCBC and its market leadership,
Golden Meditech invested US$50,000,000 into CCBC in September 2012 through the
subscription of 7% Convertible Notes due 2017. The new investment will allow
CCBC to speed up its development and seize the upcoming opportunities in China
and any other untapped markets.

Meanwhile, the Company's medical insurance administration business,
GM-Medicare has achieved satisfactory progress during the reporting period and
continued to serve as the missing link between multiple stakeholders in the
medical insurance market in China.

MEDICAL DEVICES SEGMENT

Revenue from the Group's medical devices segment amounted to HK$140,649,000,
representing 6.6% increase relative to the previous corresponding period,
accounting for 62.7% of the Group's total revenue.

With the Chinese government initiatives dedicated to elevate the quality and
standard of healthcare industry, a number of favourable policies, such as the
"Level III General Hospital Accreditation and Administration Standards" by the
Ministry of Health which demands hospital managers to promote the clinical
application of autologous blood recovery system (the "ABRS") to alleviate
surgical blood shortages where implemented and one of the Company's key
products, the ABRS, is set to rise in the coming years.

Golden Meditech believes the separate listing of medical devices division at a
right stock exchange under the appropriate market conditions is beneficial to
the Group and its shareholders in the long run. Therefore, the Group has
decided to enter into agreements with shareholders of China Bright Group Co.
Limited ("China Bright") to purchase back the shares, and to extend the
listing of China Bright for another 18 months until February 2014. As of
today, the Group has increased its stake in China Bright to 95.10%.

In addition, leveraging on its seasoned experience in selling blood related
medical devices, the division is exploring to develop the distribution of
imported medical devices in China to expand the revenue sources. In August
2012, Golden Meditech signed a product purchase and distribution agreement
with ThermoGenesis Corp. (NASDAQ: KOOL) for the AXP® AutoXpress® System ("AXP
System"), an automated device used for the processing of stem cells from cord
blood. 

STRATEGIC INVESTMENTS

The performance of Fortress Group Limited ("Fortress") underlying FunTalk
China Holdings Limited ("FunTalk") business was down by 13.8% during the
period, compared with same period last year. In addition, Fortress needed to
account for non-cash expenses associated with derivatives on certain financial
instruments. As a result, the Company's share of profits from Fortress was
down by 39.1% to HK$24,435,000 compared with the previous reporting period.

The Chinese herbal medicine business reported a loss of HK$16,531,000 during
the period, and was below management expectations.

With overall strategy to be focused on the enhancement of core healthcare
businesses, the Company intends to consider disposals of non-strategic
divisions at appropriate time and any proceeds raised will be allocated among
existing businesses, and its shareholders.

OUTLOOK AND STRATEGIES

Looking ahead, Mr. Kam commented, "The Group continues to have high hopes for
the healthcare industry in China. The vast and growing Chinese market
presents great demand for premium medical devices and healthcare services.
Golden Meditech is well positioned to seize the opportunities in the
prospective healthcare industry with its dedication and foresights to
establish the Company into a leading integrated healthcare enterprise in
China." Mr. Kam continued, "In the coming months, Golden Meditech will focus
on the completion of the new hospital in Beijing as part of its long term
strategies for the healthcare services segment. The new hospital has larger
floor areas, more beds and specializes in various departments to address
patients' different needs, not solely haematology patients as before. The
Group believes that the new hospital will soon contribute higher revenue to
the Group and reveal the embedded values of Golden Meditech to the market. In
addition, the Group's medical devices segment will continue to benefit from
the favourable medical policies on blood transfusion. Leveraging on its
existing solid network and ability to penetrate into lower-tiered hospitals,
the medical device segment will be promising in the long run."

About Golden Meditech Holdings Limited

Golden Meditech Holdings Limited (www.goldenmeditech.com) is China's leading
integrated-healthcare enterprise. Golden Meditech is a first-mover in China,
having established dominant positions in medical devices and healthcare
services markets, thanks to its strengths in innovation and market expertise
and the ability to capture emerging market opportunities. Going forward, the
Group will continue to pursue a leading position in China's healthcare
industry both through organic growth and strategic expansion.

For inquiries, please contact:

Golden Meditech Holdings Limited
Investor Relations Department
Tel: (852) 3605 8180
Fax: (852) 3605 8181
Email: ir@goldenmeditech.com

SOURCE Golden Meditech Holdings Limited

Website: http://www.goldenmeditech.com
 
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