China Healthcare division

Hutchison China Meditech Limited 21 January 2008 Hutchison China MediTech Limited ('Chi-Med') (AIM: HCM) Strong growth in China Healthcare division Streamlining of product range set to further improve financial performance London, 21st January 2008: Chi-Med, the Hutchison Whampoa backed pharmaceutical and healthcare Group, today announces very strong growth in revenues and operating profit in its China Healthcare division as well as the discontinuation of its loss making Nao Ling Tong memory supplement ('NLT') thereby materially improving the division's profits for the current 2008 financial year. All following 2007 figures are unaudited and may be subject to change. While performance on NLT improved marginally in 2007, with operating losses narrowing to -US$2.4 million (2006: -US$2.9m), its performance contrasted with the rest of Chi-Med's China Healthcare division where sales grew 28% to US$61.4 million (2006: US$48.1m) and operating profit grew 27% to US$6.8 million (2006: US$5.4m). Mr. Christian Hogg, CEO of Chi-Med, said: 'The continuing operations of our China Healthcare division have succeeded to out-perform the rapidly growing and still highly fragmented China healthcare market. Net profit after tax on these continuing operations, attributable to Chi-Med equity holders, reached US$4.5 million in 2007 and we expect this to continue to grow organically at similar rates.' Discontinuing NLT will eliminate the operating losses of this product line and will materially increase projected profits for Chi-Med's China Healthcare division in 2008 and beyond. A one-off provision of US$2.6 million, of which around US$2.1 million is non-cash in nature, will be taken in the 2007 accounts to cover charges associated with the discontinuation of the NLT. Chi-Med now holds US$67.2 million in cash and guaranteed bills receivable and plans to utilise a portion of this in 2008 to augment China Healthcare division profits through selective earnings enhancing acquisitions. Chi-Med will be announcing its preliminary financial results for 2007 in mid-March. Ends Enquiries: Chi-Med Telephone: +852 2121 8200 Christian Hogg, CEO Citigate Dewe Rogerson Telephone: +44 (0) 20 7638 9571 Anthony Carlisle +44 (0) 7973 611 888 David Dible +44 (0) 7967 566 919 About Chi-Med Chi-Med is the holding company of a pharmaceutical and healthcare group focused on Traditional Chinese Medicine (TCM) based primarily in China and was admitted to trading on the Alternative Investment Market of the London Stock Exchange in May 2006. Chi-Med operates three core business segments: 1) China healthcare - the manufacture, distribution and marketing of pharmaceuticals and health supplements in China; 2) Drug R&D - the discovery and global development of novel drug in the oncology and auto-immune therapeutic areas; and 3) Consumer products - global retailing and distribution consumer health and personal care products derived from TCM and botanical ingredients. Chi-Med is majority owned by Hutchison Whampoa Limited, an international corporation listed on the Main Board of The Stock Exchange of Hong Kong Limited. This information is provided by RNS The company news service from the London Stock Exchange
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