China Health Labs & Diagnostics Ltd CHLBF

Excellent and record Q2 Financials

[TheRock07]

These are available on Sedar and will be press released this am.

Key points.................

Overall Performance
For the mission of becoming a leading provider of total solutions for medical diagnostics and food safety testing, the
Company achieved its business and financial goals and made progress during the three and six months periods ended June  30, 2011:

• Revenue grew by 67% to $8.095 million and profit grew by 24% to $1.413 million for the three months ended June
30, 2011, compared to the same period last year;

• Revenue grew by 60% to $14.854 million and profit grew by 80% to $2.636 million for the six months ended June
30, 2011 compared to the same period last year;

• Contract to install the BK Clinlab total lab solution in 587 rural hospitals in Jilin Province, China, in which
approximately 288 of the 587 BK Clinlab installations were completed as at June 30, 2011, with the remaining 299
BK Clinlab completed subsequent to the second quarter.

• Strong growth in sales of point of care technology (“POCT”) diagnostic solutions to the Chinese military and
government. The Company is well positioned for further growth and with sufficient capital to expand its business for rural lab total solutions, POCT lab solutions and food safety lab solutions.

Cash increased by $2 million to about $3.3 million and book value increased by nearly $3 million

CHO has earned
.04 for the first 2 quarters of this fiscal year.
There is a strong seasonal trend in sales, with Q1 being the weakest quarter and Q4 the strongest quarter.
In addition, 299 of the BKlabs was installed early in Q3.

Accordingly, sales for 2011 should be in the $45-$47 million range ( $33 million in 2010 ) and net earnings should be above
.10 per share.