TSX-V: CHO
OTCQX: CHLBF
www.chinahealthlabs.com
TORONTO, Jan. 15, 2013 /CNW/ - China Health Labs & Diagnostics Ltd.
("China Health" or the "Company") (CHO: TSXV; CHLBF: OTCQX), is pleased
to announce that it has entered into and delivered on a new sales order
of RMB 12.4 million ($2.0 million) for 39 food safety rapid test labs,
which were installed in large restaurants and hotels in Beijing. The
Company's Type B BK Food Safety Rapid Test System ("BK-iRT") was also
delivered as part of this food safety rapid test labs installation. The
delivery of the food safety rapid test labs and BK-iRT was completed in
December 2012.
The Company also delivered in December 2012 on the sales order of RMB
74.0 million ($11.7 million) for food safety products and its BK-iRT,
as previously announced by the Company on October 3, 2012. The BK-iRT
product and other food safety products are to be used by Beijing's food
safety detection units in monitoring the thousands of food preparation
and distribution nodes in Beijing.
Subsequent to the Company's delivery on the RMB 74.0 million ($11.7
million) sales order of its food safety and BK-iRT products, a number
of Chinese government officials and food safety and health institutions
toured the Company's facilities to learn more about the food safety
total solutions and products offered by the Company. They provided
positive feedback and this resulted in the additional sales order of
RMB 12.4 million ($2.0 million), which was delivered in December 2012.
The BK-iRT is a compact and mobile food safety testing solution and can
conduct approximately 100 rapid and accurate types of tests, including
testing for physicochemical residues, veterinary drug residues,
biotoxins, heavy metal residues, prohibited additives, and food
additives. The solution also includes an information management module
equipped with a 3G telecommunication function to transmit and
communicate data with a network of mobile and stationary labs, which
allows data sharing, real-time monitoring and dynamic instructions.
Other target markets for the BK-iRT include food distribution centres
and facilities such as canteens for large organizations, hospitals and
universities.
The Company has continued to expand its presence in the food safety
industry and has delivered products and food safety labs that could
represent revenues of over RMB 86.4 million ($13.7 million) for the
fiscal year 2012, representing growth of approximately 52% for the
Company's food safety business sector compared to the fiscal year 2011
during which the Company had revenues of $9.0 million. Further, the
Company's gross margins in this sector has increased for fiscal year
2012 as the BK-iRT is a proprietary product developed and manufactured
in the Company's Beijing facility, whereas sales in prior years
consisted of third party products which generated lower gross margins.
The Company is actively marketing to other large cities and
municipalities in China in growing its food safety sector outside of
Beijing based on the Company's past success in delivering to the
Chinese government effective solutions to address food safety concerns
and also in developing new products to meet future demands.
About China Health Labs & Diagnostics Ltd.
China Health, operating in China as the Biochem Group, is a leading
diagnostic lab solution provider for the public healthcare industry in
China. The Company develops and sells Biochem Group branded and
third-party medical diagnostic products and services to diagnostic
facilities in China. Customers include large urban hospitals, rural
hospitals, Chinese defense and rescue operations, the Beijing
government and third-party distributors.
The Company intends to continue its growth by focusing its efforts on
expanding its sales network in three areas where it provides
proprietary solutions, has limited competition and which are supported
by Chinese government policies and budgets: BK Clinlab total lab
solutions for rural hospitals and clinics, POCT solutions for military
and emergency rescue services, and food safety solutions for large
cities in China. In 2011, China Health increased its revenues by 35%
to $45.6 million, and increased its installed base of BK Clinlab total
solution diagnostic labs ("BK Clinlabs") from 210 at the start of 2011
to 899 rural hospitals to date. In addition, the Company grew revenues
from its overall total lab solutions business by 99% from 2010, which
increased gross margins to 44% in 2011 as compared to 39% in 2010.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements and information
that are based on the beliefs of management and reflect China Health's
current expectations. When used in this press release, the words
"estimate", "project", "belief", "anticipate", "intend", "expect",
"plan", "predict", "may" or "should" and the negative of these words or
such variations thereon or comparable terminology are intended to
identify forward-looking statements and information. The
forward-looking statements and information in this press release
includes information relating to the revenue growth for the Company's
food safety business sector, the expansion of the Company's business
through its sales network in areas where it has proprietary products,
limited competition and strong government support. The forward-looking
information is based on certain assumptions, which could change
materially in the future, including the assumption that the Company
will be able to expand its sales network and business. Such statements
and information reflect the current view of China Health with respect
to risks and uncertainties that may cause actual results to differ
materially from those contemplated in those forward-looking statements
and information. By their nature, forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements, or other future
events, to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking
statements. Such factors include, among others, the risk that the
Company may not be able to generate the expected revenue growth, the
Company may not be able to expand its business as expected through its
sales network in any of the areas in which it has proprietary products,
limited competition and strong government support. China Health
cautions that the foregoing list of material factors is not
exhaustive. When relying on China Health's forward-looking statements
and information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties and
potential events. China Health has assumed a certain progression,
which may not be realized. It has also assumed that the material
factors referred to above will not cause such forward-looking
statements and information to differ materially from actual results or
events. However, the list of these factors is not exhaustive and is
subject to change and there can be no assurance that such assumptions
will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE
REPRESENTS THE EXPECTATIONS OF CHINA HEALTH AS OF THE DATE OF THIS
PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE.
READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING
INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER
DATE. WHILE CHINA HEALTH MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE
THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN
ACCORDANCE WITH APPLICABLE LAWS.
SOURCE: CHINA HEALTH LABS & DIAGNOSTICS
