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| Profit after Tax for the Period from 16 May to 30 June 2015 for Dental Prosthetics Business Amounting to HK$5,140,000 |
HONG KONG, Aug 31, 2015 - (ACN Newswire) - Mega Medical Technology Limited ("Mega Medical"/ "the Company") (Stock Code: 876) announces today that the interim results for the six months period ended 30 June 2015 (the "Period"), the Company and its subsidiaries (together the "Group") recorded turnover of approximately HK$167,255,000, representing a decrease of 4.20% from HK$174,588,000 of the corresponding period last year. The gross profit margin decreased to 17.91% (corresponding period of 2014: 20.96%). During the Period, the Group recorded consolidated loss attributable to the Company's owners of approximately HK$22,955,000 (corresponding period of 2014: profit of HK$10,296,000). Basic loss per share for the Period were HK$0.70 cents (corresponding period of 2014: earnings of HK$0.40 cents (adjusted)).
In view of the weakening performance and reshuffling of the Group's EMS business, which the Group expects it will continue and not rebound in the near future, the Group has been actively exploring business diversification opportunities in order to enhance the long-term growth potential of the Group. The Group is optimistic about the long-term outlook of the dental prosthetics market in the PRC, particularly in view of the rising living standard causing surge in sugar consumption by the citizens and thereby faster dental decay among the general public and the increasing awareness of cosmetics, which together are expected to induce augmenting demand for dental prosthesis. In addition, the dental prosthetics industry on a global scale has been growing positively over the past few years and such trend is likely to continue.
Through the completion of acquisition of On Growth Global Development Limited on 15 May 2015, the Group has been diversified into the denture business in the PRC and overseas markets for the sale (both overseas and domestic) and production of dental prosthetics, including crowns and bridges, removable full and partial dentures, implants and full-cast restorations. For the period from 16 May to 30 June 2015, turnover for the Dental Prosthetics Business was recorded HK$23,352,000, while gross profit and profit after tax amounted to HK$11,195,000 and HK$5,140,000 respectively, representing impressive gross profit margin and net profit margin of 47.94% and 22.01% respectively.
Following the acquisition, the Company is expected to transform into a life science company with denture business focus. The Company changed its name to "MEGA MEDICAL TECHNOLOGY LIMITED" with effect from 8 June 2015, signifying a new page for the new life science Company in the making.
After the On Growth Acquisition, the Group has formulated a number of growth strategies in the Dental Prosthetics Business, including enlarging its existing sales network in the PRC and foreign markets like the US, expanding its production capacity in the PRC and developing high-end new denture prosthetics products with beauty attributes. In order to develop the Dental Prosthetics Business, which in the view of the Company would become the most significant business segment of the Group with strongest growth potential, the Group would devote most of the Group's resources and efforts to this segment going forward.
In addition, on 20 August 2015, the Company and Shenzhen BGI Technology Limited's wholly-owned subsidiary Shenzhen BGI Clinical Laboratories Center Limited ("BGI Clinical") entered into a Cooperation Framework Agreement, pursuant to which the parties agreed to cooperate in (i) developing the business of preservation of dental pulp stem cells; (ii) developing the genetic and metabolite testing services through the Company's sales channel in the PRC; and (iii) research and development on tooth preservation technologies, tooth regeneration technologies and products for a term of 3 years to 17 August 2018 (the "Term Period"). Shenzhen BGI Technology Limited is a leading genomics research institute which particularly focus on genetic sequencing and bioinformatics analysis.
Furthermore, on the same date, the Company and BGI Clinical entered into a specific cooperation agreement, pursuant to which the Company will engage BGI Clinical to provide preservation services and testing services to its end customers for the Term Period. Under this cooperation, the BGI Clinical will be responsible for the preservation of the collected dental pulp stem cells from patients with such needs from the clinics of the Company.
Mr. Wu Tianyu, Executive Director and Chief Executive Officer of Mega Medical Technology Limited said, "Our cooperation with the BGI Group, the largest genomic research institute worldwide, is an important step forward for the Group to devote themselves to transforming the Group into a life science company specializing in denture arena."
"The Board believes that the cooperation presents an excellent opportunity for the Group to further expand and diversify its business portfolio as well as create operating synergies with its existing business. It also broadens the income stream for the Group in immediate term. In light of the improving living standard in the PRC and the increasing awareness of dental health in the PRC, the Directors are optimistic about the long-term growth in demand for dental prosthesis in the country and believe that the Group is well-positioned to leverage on its experience and expertise to expand the domestic market while attaining steady profitability in the overseas markets."
About Mega Medical Technology Limited (Stock Code: 00876.HK)
Mega Medical Technology Limited is one of few listed denture enterprise in Asia and one of the largest denture material researcher and manufacturer in the PRC, as well as a well-renowned supplier for dental consumables. It has the widest sales channel in the PRC and ranks as top three dental supplier in the US and France. Currently, Mega Medical has cooperated with nearly 2,000 clinics in China and with more than 10 countries worldwide. In August 2015, the Company and the largest genomics research institute in the world, Shenzhen BGI Technology Limited's wholly-owned subsidiary, Shenzhen BGI Clinical Laboratories Center Limited entered into a legally-binding Cooperation Framework Agreement in relation to the strategic cooperation of the preservation and application of dental pulp stem cells, as well as the application and the healthcare market of tooth regeneration technology.
Media Contacts:
Jovian Communications
Tel: +852 2581 0168
Fax: +852 2854 2012
Email: mega@joviancomm.com
Topic: Press release summary
Source: Kaisa Health Group Holdings Limited
Sectors: Daily Finance, Healthcare & Pharm
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From the Asia Corporate News Network
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