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| Results markedly improved andturned around to profit; Strong growth of core dental prosthetics business |
HONG KONG, Mar 22, 2018 - (ACN Newswire) - Kaisa Health Group Holdings Limited, ("Kaisa Health" or the "Company"; HKEX stock code: 876.HK), a leading mid-range to high-end dental medical technology company, has announced its annual results for the year ended 31 December 2017.
For the year ended 31 December 2017, the Company's revenue from continuing operation reached approximately HK$226.7 million (2016: approximately HK$188.1 million), representing a year-on-year increase of 20.5%. Profit for the year attributable to owners of the Company from continuing operations was approximately HK$5.55 million, representing a turnaround with basic earnings per share of HK$0.14 cents.
In response to the constantly growing global dental prosthetics market, Kaisa Health has actively adjusted its business structure, focusing on dental prosthetics business, and saw a steady expansion in market share. In 2017, the Company's previous investment in marketing and R&D for its core dental prosthetics business began to pay off, driving the continuous steady growth in revenue and profit. At the same time, aligning with its set strategies, the Company continued to exit, via scale down or disposal, its unprofitable electronic manufacturing services business during the year.
As living standards continue to rise and people are placing more importance on dental aesthetics, the Company has accordingly devoted more R&D effort on high-end new dental prosthetics products with aesthetic attributes. In 2017, Clear Aligner, a new orthodontics product, was launched to timely seize opportunities in the dental aesthetics market. Employing advanced imported technology, the product features the use of 3D printing technology in diagnosing, designing and customizing dental prosthetics products for patients, providing them transparent teeth braces that look better, are hygienic and convenient to use than traditional products. The materials used to make aligners have gained quality accreditations from relevant authorities in Europe, the U.S. and China. The launch of Clear Aligner is expected to enhance the Company's competitiveness in the Chinese dental prosthetics market and facilitate overseas expansion of Kaisa Health in the future.
To strengthen its financial resources, Kaisa Health completed the rights issue at the subscription price of HK$0.40 per rights share and raised net proceeds of HK$507.16 million in 2017. The fund raised is intended for use on land acquisition, potential acquisition, and to meet the working capital requirements of existing business.
Prospects
By stepping up expansion of its medical-health related business, Kaisa Health hopes to raise shareholder value. Armed with professional knowledge and resources advantage in the healthcare sector, the Company will explore the possibility of providing professional consultancy services to cooperating partners in the development of "health town" in the PRC.
In summary, Mr. Luo Jun, Chairman of Kaisa Health, said, "As the Chinese economy grows steadily and urban residents' living standards rise, plus the medical and health industry developing in full scope, huge growth potential of the oral medicine technology market is expected to be unleashed, which will bring opportunities to the Company for achieving long-term sustainable development. To further enhance its market leadership and competitiveness, the Company has boosted its financial resources and will continue to strengthen investment in research and development and innovation, cooperate with technical institutions to recruit outstanding professional technical talent and continue to introduce high value-added products and services to meet the escalating demand for dental prosthetics. While striving for sustainable organic growth, the Company will actively capture high-tech dental related business and investment opportunities, explore cooperation and investment opportunities in the health industry and continue to invest in high-end medical equipment, to the end of enhancing its scale and profitability."
Topic: Press release summary
Source: Kaisa Health Group Holdings Limited
Sectors: Daily Finance, Daily News, Healthcare & Pharm
https://www.acnnewswire.com
From the Asia Corporate News Network
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