Hua Xia Healthcare profit up 7-fold to HK$31.5mn

The company explores further opportunities from China’s Healthcare Reform and the New 12th Five Year Plan.

Hua Xia Healthcare Holdings Limited (“Hua Xia Healthcare”) on Monday announced its (audited) annual results for the year ended 31 March 2011.

The Group managed a turnaround and achieved a revenue increase for the year ended 31 March 2011 attributable to vigourous growth in turnover with the strong sales from pharmaceutical wholesale and distribution and pharmaceutical retail chain business in the PRC last year. During the year under review, the Group’s turnover amounted to approximately HK$1,490.9 million (2010: approximately HK$179.8 million), representing a year-on-year rise of 729%. Gross profit was approximately HK$189.6 million (2010: approximately HK$64.4 million). Net profit attributable to the owners of the Company was approximately HK$31.5 million in comparison with the net loss of approximately HK$211.283 million. Excluding the loss on early redemption of promissory note and the gain on disposal of subsidiaries, the operating profit for the year would have been HK$ 78.985 million.

Basic earnings per share were HK$3.03 cents. (2010: basic loss per share of approximately HK$43.5 cents).

Mr Yung Kwok Leong, Chairman and CEO of Hua Xia Healthcare, commented, “During the year under review, we have seen the further strengthening of our general hospital operations in competiveness. The acquisition of Huihao Medicine Wholesale Group in March 2010 has significantly improved the Group’s sales and distribution penetration in a field characterised by rapid market growth. The Group is pleased with the outcome of drug distribution tendering in 2010 in Fujian Province and has clearly demonstrated the advantages and competitiveness of its well-established sales network in the region”.

According to a Hua Xia Healthcare report, the management in the 2011/2012 fiscal year will continue to rely on its two core businesses, general hospital operations and pharmaceutical products, for growth potential. 

As the final year of the three-year reform plan, 2011 is a critical year for the healthcare reform in the PRC. With the Group’s effective market positioning, its hospitals are expected to benefit from the outcomes of healthcare reform in the PRC, especially based on its solid development of hospital management systems and well-trained professionals. At the same time, the Group plans to further enhance the cost efficiency of its hospitals to maximise profitability.

“Looking ahead, we are optimistic about 2011 and with the strong growth trend, we hope to bring the Company to a new high standard in the PRC’s healthcare industry. The Group plans to actively explore further development opportunities made available by the healthcare reform and the first year of the new 12th Five Year Plan, thereby enhancing shareholder value in the coming years”, Mr Yung concluded.