Golden Meditech total turnover increases 15% to HK$328,066,000 for year ended 31 March, 2011

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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 annual results for the year ended 31 March, 2011.  During the reporting period, the Group's core businesses reported total turnover of HK$328,066,000, 15% growth compared to the previous year.  Profit attributable to shareholders increased substantially by 195% at HK$343,208,000 while basic earnings per share amounted to HK19.9 cents.

Mr. KAM Yuen, Chairman and Chief Executive Officer of the Group, said the results are in-line with Group management's expectations.  The remarkable growth in revenue is primarily driven by stable growth in the core businesses of medical devices and healthcare services and contribution from associates and jointly controlled entities.  At the same time, management believes the healthcare services, as one of the Group's key strategic businesses, will become a key driver for future growth as it expand its operation under the favourable policy and market environment.

The Group's healthcare services business currently consists of hospital management, medical insurances administration outsourcing business and cord blood banking operation, of which, hospital management demonstrated most significant growth during the review period.  Revenue from hospital management (generated from the two haematology hospitals under the Daopei brand name), reported remarkable 55.4% increase in hospital management income to HK$80.4million, accounted for 25% of the Group's total turnover and increased by 7 percentage points compared to the previous year.  

On the other hand, the Group has announced two major acquisition transactions, one in Beijing and the other in Shanghai.  The Beijing acquisition will increase the bed count of Beijing Daopei Hospital to 500, to alleviate the hospital admission waiting list, and expedite growth of the haematology hospital.  On the other hand, the Group will leverage the acquisition of Shanghai East International Medical Center to enter into premium healthcare services market, creating a solid foundation for the future development of the Group's hospital management operations.

As another key focus in Golden Meditech's healthcare services segment, the Group's associate company, China Cord Blood Corporation (CCBC), is the largest specialized cord blood stem cell storage operator in China.  CCBC has obtained three of the seven exclusive licenses for provincial or municipal operation, and a minority stake in the fourth operator.  Its total turnover increased by 29.8% during the reporting period at US$51.9million (approximately HK$400million).  In view of CCBC's positive outlook and strong management team, the Group has increased its shareholding in CCBC to 39.5%.  GM Medicare, the Group's medical insurance information management service provider, has reported significant breakthrough in the construction of IT infrastructure, paving way for full launch of operation within the year.

He reiterated that the blood-related medical devices business has brought about impressive revenue and profit for the Group, while the joint venture with Fenwal Inc., will also be finalized within the year.  On the other hand, demand driven growth resulting from nation-wide surgical blood shortage will also enable the penetration into second tier hospitals in China.

In January 2011, the Group has successfully listed its shares on the Taiwan Stock Exchange, enabling the Group to become the first healthcare enterprise to have a tripartite business platform between the "two shores and three locations." This will enable the Group to expand its presence in the Greater China market and leverage its resources and regional advantage, giving it a head start in capitalizing on the emerging business opportunities on the back of China's medical reform and the Economic Cooperation Framework Agreement (ECFA).

SOURCE Golden Meditech Holdings Limited

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