Hutchison China Meditech Limited
21 January 2008
Hutchison China MediTech Limited ('Chi-Med')
(AIM: HCM)
Strong growth in China Healthcare division
Streamlining of product range set to further improve financial performance
London, 21st January 2008: Chi-Med, the Hutchison Whampoa backed pharmaceutical
and healthcare Group, today announces very strong growth in revenues and
operating profit in its China Healthcare division as well as the discontinuation
of its loss making Nao Ling Tong memory supplement ('NLT') thereby materially
improving the division's profits for the current 2008 financial year.
All following 2007 figures are unaudited and may be subject to change.
While performance on NLT improved marginally in 2007, with operating losses
narrowing to -US$2.4 million (2006: -US$2.9m), its performance contrasted with
the rest of Chi-Med's China Healthcare division where sales grew 28% to US$61.4
million (2006: US$48.1m) and operating profit grew 27% to US$6.8 million (2006:
US$5.4m).
Mr. Christian Hogg, CEO of Chi-Med, said:
'The continuing operations of our China Healthcare division have succeeded to
out-perform the rapidly growing and still highly fragmented China healthcare
market. Net profit after tax on these continuing operations, attributable to
Chi-Med equity holders, reached US$4.5 million in 2007 and we expect this to
continue to grow organically at similar rates.'
Discontinuing NLT will eliminate the operating losses of this product line and
will materially increase projected profits for Chi-Med's China Healthcare
division in 2008 and beyond. A one-off provision of US$2.6 million, of which
around US$2.1 million is non-cash in nature, will be taken in the 2007 accounts
to cover charges associated with the discontinuation of the NLT. Chi-Med now
holds US$67.2 million in cash and guaranteed bills receivable and plans to
utilise a portion of this in 2008 to augment China Healthcare division profits
through selective earnings enhancing acquisitions.
Chi-Med will be announcing its preliminary financial results for 2007 in
mid-March.
Ends
Enquiries:
Chi-Med Telephone: +852 2121 8200
Christian Hogg, CEO
Citigate Dewe Rogerson Telephone: +44 (0) 20 7638 9571
Anthony Carlisle +44 (0) 7973 611 888
David Dible +44 (0) 7967 566 919
About Chi-Med
Chi-Med is the holding company of a pharmaceutical and healthcare group focused
on Traditional Chinese Medicine (TCM) based primarily in China and was admitted
to trading on the Alternative Investment Market of the London Stock Exchange in
May 2006. Chi-Med operates three core business segments: 1) China healthcare -
the manufacture, distribution and marketing of pharmaceuticals and health
supplements in China; 2) Drug R&D - the discovery and global development of
novel drug in the oncology and auto-immune therapeutic areas; and 3) Consumer
products - global retailing and distribution consumer health and personal care
products derived from TCM and botanical ingredients.
Chi-Med is majority owned by Hutchison Whampoa Limited, an international
corporation listed on the Main Board of The Stock Exchange of Hong Kong Limited.
This information is provided by RNS
The company news service from the London Stock Exchange
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