DJ EQS-News: Union Medical Healthcare announces FY2020/21 interim results, Medical services continue being the key growth driver, October's sales volume is expected to be no less than 8% increase
EQS-News / 26/11/2020 / 22:58 UTC+8
[FOR IMMEDIATE RELEASE]
Union Medical Healthcare announces FY2020/21 interim results
October's sales volume is expected to be no less than 8% increase
Medical services continue being the key growth driver
Business Highlights
1) Further acquisition of 24% equity interest of NYMG Group
2) Acquired New Medical Center Holding Limited
3) Makes real estate expert its strategic shareholder to
facilitate its business development in mainland China
4) Received Capital Injections from Goldman Sachs, OrbiMed And
Gaw Capital
5) Revenue from medical services increased by 20.3% to HK$361
million from the second half of last year, accounted for 45%
of total revenue
6) Profit attributable to the shareholders of the Company was
HK$43.9 million, basic earnings per share were 4.4 HK cents
7) The board of directors proposed interim dividend to 3 HK
cents per share
8) As at 30 September 2020, the Group has 118 full-time and
exclusive Registered Practitioners across Hong Kong, the
Mainland China and Macau
(27 November 2020, Hong Kong) Union Medical Healthcare Limited ("Union
Medical Healthcare" or the "Company", which together with its subsidiaries
is referred to as the "Group", SEHK stock code: 2138), a leading integrated
medical group in Hong Kong1, announces today its unaudited interim results
for the six months ended September 2020 (the "Period").
During the period, the global impact of COVID-19 has been unprecedented,
resulting in a highly challenging business environment. Nevertheless, the
Group has been adopting a proactive approach in encountering the challenges
and continued to be the leading non-hospital medical service provider in
Hong Kong, achieving strong business growth while maintaining competitive
operating efficiencies.
Due to the significant decrease in the revenue generated from aesthetic
medical and beauty and wellness services as a result of the impact of
COVID-19 during the Period, the Group's sales volume decreased by 11.1% to
HK$946.8 million and the total revenue decreased by 28.7% to HK$797.4
million. Net Profit for the period decreased by 74.7% to HK$53.3 million and
the net profit attributable to equity shareholders of the Company decreased
by 77.8% to HK$43.9 million. Basic earnings per share were 4.4 HK cents
(2019: 20.1 HK cents). The board of directors proposed an interim dividend
of 3 HK cents per share in cash.
Medical services continue to be the key growth driver
During the Period, revenue from medical services increased by 20.3% to
HK$361.4 million from the second half of last year because the Group
increased in the variety of medical services that the Group is offering,
including but not limited to advanced radiology services, comprehensive
range of surgical specialties care offer services in cardiology,
cardiothoracic, ear, nose and throat (ENT), gastroenterology & hepatology,
general surgery, paediatric, neurosurgery, orthopaedics, oncology and
urology, obstetrics and gynecology specialist, and the number of clients
receiving the Group's medical services also increased.
As an essential part of one's life, demand of medical and healthcare
services continued to grow steadily. The Group strives to setup additional
medical disciplines to satisfy the continuous increase in the demand of
customers. The Group first acquired 51% equity interest of NYMG Group in
2016. Given the remarkable business development and financial performance of
the NYMG Group as well as the growing demand for the provision of
chiropractic, orthopaedic, pain and wellness services in Hong Kong, the
Group finished further acquisition of 24% equity interest during the
reporting period. NYMG Group opened 3 new Chiropractic clinics during the
period.
Moreover, the Group has acquired specialists central New Medical Center
Holding Limited which engaged in the provision of medical service with 11
full-time registered medical practitioners in May 2020. Additionally, the
second centre operation of the Group's Advance Imaging Centre commenced in
July 2020 since its first centre opened in the end of 2018.
The Group is well-positioned to broaden the coverage of medical disciplines.
As at 30 September 2020, including our two flagships in Hong Kong and 12
clinics in the Mainland China, we operate 60 clinics and service centres
occupying an aggregate floor area of approximately 319,000 sq. ft. with 118
full-time and exclusive Registered Practitioners covering 22 medical
disciplines across Hong Kong, mainland China and Macau.
In the Group's business of aesthetic medical services, revenue decreased by
46.3% to HK$248.6 million for the year ended 30 September 2020 primarily
attributable to the travel restrictions and health quarantine arrangement
for inbound cross-border travels, the compulsory closure of all beauty
parlours in Hong Kong for an aggregate of 72 days, and social distancing
measures which inhibited customers sentiments. Revenue of beauty and
wellness services also decreased by 43.3% to HK$135.7 million.
Not less than 8% increase in sales volume in October
The pandemic since February 2020 had affected inbound tourism and domestic
consumption in the near term. Hong Kong entered into a recession driven by
the downturn in tourists and by locals pulling back on spending. To cope
with the city's adverse business environment, the Group adopted a series of
measures, including continued development of new medical services and
broadening of services spectrum through organic expansion and acquisitions
of other medical establishments to fulfill the essential needs of our
customers; proactive client engagement to retain loyal local customers and
promotional campaigns to boost local spending; launching of e-commerce
platform in a timely manner; and implementation of prudent finance
management for rental expenses and cost control initiatives to preserve cash
flow as well as enhance profitability.
To help combat novel coronavirus pneumonia, the Group has launched the sale
of RT-PCR COVID19 Test and has cooperated with medical testing institutions
which are recognised by the government in conducting a one-stop novel
coronavirus nucleic acid test programme at the latter's branches.
In addition, the Group sales volume is expected to be no less than HK$180
million of October 2020, representing an increase of no less than 8% as
compared with the same period last year, based on the management sales
record. The Group expects the operation shall continue to be challenging in
the near future, yet, are confident the business model and flexibility
together with the Group being customer and IT centric will facilitate the
Group to thrive during recovery.
Integrated Multi-Discipline Strategy
The Group is actively exploring partnerships with leading enterprises in
four main sectors: technology, telecom, insurance and property, to form
strategic alliances to broaden the breadth and depth of our healthcare and
wellness service offerings. The Group will expand market share by
identifying potential acquisition targets or via an organic expansion in the
Greater Bay Area, currently plan to reach 30 to 50 outlets in the next three
to five years, with a focus in discretionary medical and healthcare services
including but not limited to medical aesthetic, chiropractic, dental and
paediatric services. In order to facilitate the Group's geographical
expansion in mainland China, the Group will setup an office in Futian,
Shenzhen.
Moreover, the Group is exploring acquisition targets as well as partnership
opportunities with local medical players in the Mainland China cautiously,
including but not limited to reputable medical service and healthcare
service providers, suppliers and investors, to fuel sustainable growth in
this market with immense potential.
Strategic collaborations
The Group has conditionally agreed to sell the 10 million existing shares to
Renowned Idea Investments Limited, which is wholly-owned by a non-executive
director of Agile Group (SEHK stock code: 3383) through Top-up Placing. Such
shares will account for approximately 0.97% of the Company's enlarged issued
share capital. The sale price is HK$4.25 per share and the Group expects to
receive net proceeds of approximately HK$42.3 million from the transaction
and intends to use them for its general corporate purposes.
In addition, the Company has entered into subscription agreements with
Goldman Sachs, OrbiMed and Gaw Capital pursuant to which the Company shall
issue convertible bonds in principal amounts of HK$234 million, HK$31.2
million and HK$39 million to Goldman Sachs, OrbiMed and Gaw Capital,
respectively. The Company shall also issue warrants in amounts of
approximately HK$273 million and HK$36.4 million to Goldman Sachs and
OrbiMed, respectively, raising total proceeds of HK$613.6 million.
Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of
Union Medical Healthcare said, " As the leading medical group in Hong Kong,
Union Medical Healthcare aims to expand the depth of existing medical
disciplines and extend the coverage of disciplines with demand. Looking
ahead, the Group will continue to focus its deployment of resources in IT,
services and brands to sustain and enhance its competitive advantage as a
(MORE TO FOLLOW) Dow Jones Newswires
November 26, 2020 09:59 ET (14:59 GMT)
DJ EQS-News: Union Medical Healthcare announces -2-
leader in the market, and further expand its market share in the primary
healthcare market. We will also continue to seek new ways to raise
productivity standards through increased digitalisation, innovation and
technology and generate encouraging return to our shareholders"
-End-
About Union Medical Healthcare Limited
Union Medical Healthcare is Hong Kong's largest non-hospital medical service
provider*, leveraging its core businesses of preventive and precision
medicine, and committed to developing medical artificial intelligence by
integrating its multi-disciplinary medical services. The move, which is
supported by the Group's high-end branding and quality customer services, is
aimed at offering customers safe and effective medical services with
professionalism.
The Group principally engages in the provision of one-stop medical and
health care services in Greater China. The Group provides a full range of
services and products under its well-known brands, including those of its
one-stop aesthetic medical solutions provider DR REBORN which has ranked
first in Hong Kong by sales for years, primary care clinics jointly
established with Tencent Doctorwork, chiropractic services centre SPINE
Central, New York Spine and Physiotherapy Center NYMG, health management
centre re:HEALTH, a vaccine centre Hong Kong Professional Vaccine HKPV, a
comprehensive dental centre UMH DENTAL CARE, a diagnostic and imaging centre
HKAI, an oncology treatment centre reVIVE, a day procedure centre HKMED, a
specialty clinic SPECIALISTS CENTRAL, obstetrics and gynecology specialist
Zenith Medical Center and Prenatal Diagnosis Centre, specialists central New
Medical Center, Hong Kong International Cardiology Center and a professional
hair care center HAIR FOREST.
*According to the independent research conducted by Frost and Sullivan in
terms of revenue in 2018 and 2019
For further information, please contact:
iPR Ogilvy Limited
Callis Lau / Molisa Lau / Shana Li / Ada Chew
Tel: (852) 2136 6952 / 2136 6953 / 3920 7649 / 3920 7650
Fax: (852) 3170 6606
Email: umh@iprogilvy.com
File: Union Medical Healthcare announces FY2020/21 interim results October's
sales volume is expected to be no less than 8% increase Medical services
continue being the key growth driver [1]
26/11/2020 Dissemination of a Financial Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
November 26, 2020 09:59 ET (14:59 GMT)
