Cord Blood Bank Services: Revenue Up 77%, and Pending Spin-Off and Listing on NYSE
HONG KONG, Nov. 12 /Xinhua-PRNewswire-FirstCall/ -- China's leading integrated medical device and healthcare services provider, Golden Meditech Company Limited ("Golden Meditech" or "the Group", HKEx: 8180) today announced the interim results of financial year 2008/09. During the period under review, the Group has not only sustained high growth of key businesses, but also made significant progress with the proposed overseas listing of the umbilical cord blood bank business and market expansion beyond China.
In the first half of this year, the Group recorded turnover totaling HK$ 241,109,000, a 27% increase on a year on year basis.
Mr. KAM Yuen, Chairman and CEO of Golden Meditech, said that the Group, being a China-focused healthcare company, is benefited from the sustained growth of China's economy and the strong market dynamics of the healthcare industry. In the first six months of this year, revenues of the umbilical cord blood bank services and the ABRS consumables increased by 77% and 36% respectively. The cord blood bank services division has contributed up to 39% of the Group's total revenue, he noted.
He further explained that all the Group's key businesses have great potential to be explored. In domestic market, the Group sustained the high growth of umbilical cord blood bank business and reported over 45% increase of the newly sign-up customers during the period under review. The number of new sign-ups increased remarkably by over 75% in the second quarter on a year-on- year basis.
As part of its efforts to expand overseas, the Group, through CCBS, increased its strategic shareholding of Cordlife (Stock Code: CBB.AX) listed on Australia Stock Exchange and became the latter's single largest shareholder. This makes CCBS not only the largest cord blood bank operator in Southeast Asia, but also the World's largest in terms of the total addressable population. Along with the further development of the services in India, Indonesia and other countries, Asia will turn into the largest market of cord blood bank services.
Notable achievements have also been made with the proposed spinoff and U.S. listing of the cord blood bank businesses (China Cordblood Bank Services Corporation, "CCBS"). The Group and the selling shareholders of CCBS have signed agreements with a blank check company Pantheon China Acquisition Corp. ("Pantheon", OTC bulletin board listed) on the proposed sales of CCBS in exchange of Pantheon's ordinary shares at an agreed valuation of the entire CCBS at USD 350 million.
Once the proposed transactions are approved, CCBS will become Pantheon's principal business and Pantheon will be able to pursue listing onto the New York Stock Exchange at any appropriate time. This will make Golden Meditech the first hi-tech healthcare company that contemplates the spin-off and listing of its operations overseas since the establishment of the Growth Enterprise Market in Hong Kong.
The Group's jointly controlled company -- Pypo Digital Company Limited has also reached an agreement with a blank check company Middle Kingdom Alliance Corporation (OTC Bulletin Board listed) to sell all its shares at a valuation of USD 378 million. Once the proposed transaction is completed, the new company will be seeking for listing on NASDAQ.
The management believes that the proposed spin-offs of the two business entities will not only be beneficial to their developments, but also be able to generate long-term return to all Golden Meditech's shareholders.
For inquiry, please kindly contact:
Investor Relations Division
Golden Meditech Company Limited
Tel: +852-3605-8138
Fax: +852-3605-8181
Email: ir@goldenmeditech.com
SOURCE Golden Meditech Company Limited
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