[FOR IMMEDIATE RELEASE]
Union Medical Healthcare issues positive profit alert again
Interim profit after tax estimated to surge by over 70% year on year for FY2017/18
The company builds on growth momentum by expanding business through acquisitions to reinforce market leadership
(14 November 2017, 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 medical aesthetic service provider in Hong Kong, has issued a positive profit alert following its positive alert about sales contract value issued in October. The Group expects to record a year-on-year increase of over 50% in revenue and a year-on-year growth of over 70% in profit after tax for the six months ended 30 September 2017. The increases are mainly attributable to a year-on-year increase of no less than 45% in total sales contracts, a significant year-on-year increase in revenue from the health management business and contribution from the newly acquired businesses to the revenue.
The outstanding performance has demonstrated the soundness of the Group's strategy for proactive business expansion. To enhance its scope of services and bolster its cross-selling, the Group acquired a chiropractic centre in Central following the integration of the chiropractic services chain into its business in October 2016. Since August, the Group has been offering a one-stop solution to pain management at its multi-service flagship store in Langham Place.
In September, the Group invested and commenced the operation of hair care services centres and the sale of related products. As at 30 September 2017, the Group operated five hair care services centres in Hong Kong under the brands of "TONI&GUY" and "Hairchitect". The Group has also invested and started providing beauty services and selling related products under the brand "Mulan" in that month.
In October 2017, the Group acquired the franchise of beauty product manufactured in Switzerland under the brand "Swissline" in Hong Kong and Macau and a renowned Spanish brand engaged in the design of fashion accessories. The Group is in negotiation to acquire a dental chain, of which the completion of the acquisition is expected to take place by 31 December 2017.
Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of Union Medical Healthcare, said, "Union Medical Healthcare is experiencing rapid growth. Through business expansion the Group is capable of offering one-stop medical, health and beauty services. The diversification of services has added impetus to the momentum of our consistent growth. In recent months the Group has acquired various outstanding brands so as to enhance our scope of services and bolster our cross-selling. We are well-positioned to carry out our strategy for business diversification and to actively capture opportunities for business expansion. This will strengthen the Group's leading position in the market for aesthetic medical services and help it generate better returns for our investors."
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About Union Medical Healthcare Limited
Union Medical Healthcare is principally engaged in the provision of one-stop aesthetic medical, beauty and health management solutions with 46 clinics and servicing centres across Hong Kong, the PRC and Macao as at 30 September 2017. In 2016, the Group obtained the Hong Kong Top Service Brand and opened re:HEALTH, a one-stop health management centre, to provide a full range of services and products, including comprehensive health screening, health product and health management services. The Group is the largest aesthetic medical service provider in Hong Kong in terms of revenue. The Group ranked first in Hong Kong from 2012 to 2016 in terms of the number of aesthetic injection procedures performed involving utilization of the top-six revenue-generating aesthetic medications in Hong Kong; and was the Black Diamond Provider of the transparent orthodontic device for teeth alignment, Invisalign(R), in 2015 and 2016. The Group has successfully built DR REBORN, a well-recognized brand in Hong Kong, with the reputation of being a premier provider of aesthetic medical services in Hong Kong.
For further information, please contact:
iPR Ogilvy & Mather
Callis Lau / Molisa Lau / Maggie Chui / Francesca Yeung
Tel: (852) 2136 6952 / 2136 6953 / 2136 8059 / 3920 7639
Fax: (852) 3170 6606
15/11/2017 Dissemination of a Financial Press Release, transmitted by EQS Group.
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