[Yestar International 2393.HK] Announces 2016 Interim Results Revenue Increased by 43.7% to 1.44 Billion Profit for the Period Surged by 109.1% yoy to 140.1 Million

EQS-News / 16/08/2016 / 10:20 UTC+8

15 August 2016 

Yestar International Holdings Company Limited
(Stock code: 2393.HK)

Announces 2016 Interim Results
Revenue Increased by 43.7% to 1.44 Billion
Profit for the Period Surged by 109.1% yoy to 140.1 Million

(Hong Kong - 15 August 2016) Yestar International Holdings Company Limited
("Yestar" or the "Company" together with its subsidiaries, the "Group",
stock code: 2393.HK) is pleased to announce the annual results for the six
months ended 30 June 2016 (the "Period").

The Group is the sole distributor and manufacturer of Fujifilm photographic
paper in the PRC, and starting from 2014, has gradually transformed into a
high-margin medical consumable manufacturer and distributor in the PRC. The
Group mainly targets the booming medical industry in the PRC, with a focus
in high-margin, high-consumption medical consumables, namely the IVD
products and medical imaging products. With the professional management
system and experienced senior management team, the Group has successfully
built an extensive sales network in the PRC. Leveraging on the success
track record, the Group has established a trustful partnership with global
leaders, namely Roche Diagnostics ("Roche"), Becton Dickinson ("BD") and
Thermo Fisher Scientific ("Thermo Fisher").

IVD business contribute to the substantial profit growth

Yestar has continued to achieve exceptional results for the six months
ended 30 June 2016 (the "Period"). With the favourable performance of
medical imaging products and the rewarding contributions from Jiangsu Uno
Technology Development Company Limited (江蘇歐諾科技發展有限公司) ("Jiangsu UNO") and
Shanghai Emphasis Investment (上海安百達投資) ("Shanghai Anbaida") which were
acquired in November 2014 and August 2015 respectively, the Group's total
revenue has significantly increased by 43.7% year-on-year ("yoy") to
RMB1,436.8 million (1H2015: RMB 999.5 million). Gross profit amounted to
RMB356.2 million, showing an increment of 98.4%. Since medical consumable
products generated a higher gross profit margin of 26.9%, the Group's
overall gross profit margin has been driven up to 24.8% (1H2015: 18.0%),
with an increase of 6.8 percentage points. Further, as the contribution
from the medical consumable segment has been increasing, the Group's profit
for the period substantially surged by 109.1% to RMB140.9 million (1H2015:
RMB67.4 million). Profit attributable to the owners of the parents rose by
91.2% to RMB106.3 million comparing to RMB55.6 million in 2015. Net profit
margin was also enhanced by 1.8 percentage points to 7.4% (1H2015: 5.6%).
Earnings per share was RMB5.0 cents (1H2015: RMB3.0 cents). The Board of
Directors declared no interim dividend for the Period (1H2015: Nil).

Medical Consumable Business - Accounting for 77.3% of overall revenue

The Group distributes IVD products for Roche in Shanghai, Jiangsu and Anhui
provinces, manufactures medical films (use in X-Ray, Magnetic Resonance
Imaging (MRI) and Computer Tomography (CT-scan) etc.) for Fujifilm in the
PRC. The Company also produces and sells dental film products under the
house brand "Yes!Star".

Under favourable government policies and the rapid development of the
medical consumable industry, the Group's medical consumable business
remains the biggest revenue contributor and profit generator for the
Period, in which accounted for 77.3% of the Group's total revenue. During
the Period, the segment has generated revenue of approximately RMB1,110.2
million, indicating a 76.5% yoy increment (1H2015: RMB629.1 million). The
gross profit margin of the segment rose by 7.6 percentage points yoy to
26.9% (1H2015: 19.3%). The Group has also further extended its distribution
network to the most affluent regions in the PRC, including 260, 70 and 258
hospitals and clinics in Jiangsu, Anhui and Shanghai respectively.

Imaging printing products - Accounting for 22.7% of overall revenue

The Group also engaged in manufacturing, marketing, distribution and sale
of Fujifilm color photographic paper (professional and minilab) as well as
the industrial imaging products (NDT x-ray films and PWB films) in the PRC.
Apart from Fujifilm, the Company also produces and sells NDT x-ray films
under the house brand "Yes!Star". During the Period, revenue of the segment
accounted for 22.7% of the overall revenue, decreasing by 11.9% from
approximately RMB370.4 million to RMB326.6 million in the first half of
2015. However, the segment's gross profit margin has improved by 1.8
percentage points to 17.6%.

Prospects

The Group is optimistic towards its future development as the demand for
medical consumables is prompted by the termination of the one-child policy
and the ageing population subsequently creates plentiful opportunities for
Yestar to explore in the PRC. There will be an extra 2.1 million newborns
expected under the termination of the one-child policy which is a business
opportunity for the IVD industry. Meanwhile, the ageing population will
consequently increase the demand for body checkups and disease-related
diagnosis, which requires more medical consumables products.
 
Facing the enormous opportunities, Mr. James Hartono, the Chairman of
Yestar International, stated, "Over the past three years, Yestar has
completed business transformation and now we are a fast-moving, high-margin
medical consumable company that delivered exceptional financial results.
Leveraging on our extensive sales network in the most prosperous regions in
the PRC, we are ready to propel forward to capture more market shares."

Mr. Hartono continued, "In order to accelerate our sales network expansion,
we will increase the number of sales representative, deepen our sales
network and at the same time seeking for potential merger and acquisition
opportunities. In terms of product line, apart from continuing to produce
and market dental film products under house brand "Yes!Star", we will
further explore and broaden our product offering. Looking forward, we will
further enhance the cooperation with Roche in the medical consumable
industry in the PRC. In pursuance of a strong marketing and distribution
alliance, we will enhance our relationship with Fujifilm and other global
industry giants. Through collaboration with these strategic partners, we
believe Yestar can achieve fruitful results for shareholders in the coming
years.


- End -
 
About Yestar International Holdings Company Limited

The Group is sole distributor and manufacturer of Fujifilm photographic
paper in the PRC, and starting from 2014, has gradually transformed into a
high-margin medical consumable manufacturer and distributor in the PRC. The
Group mainly targets the booming medical industry in the PRC, with a focus
in high-margin, high-consumption medical consumables, such as the IVD
products and medical imaging products. With professional management system
and experienced senior management team, the Group has successfully built a
systematic sales network in the PRC. Leveraging on the good track record,
the Group has established a trustful partnership with global leaders, such
as Fujifilm, Roche, Becton Dickinson and Thermo Fisher. The Group currently
manufactures medical films for Fujifilm and distributes Roche and BD
branded IVD products in Shanghai, Jiangsu and Anhui provinces, the PRC. The
Group is also a sole processor and exclusive distributor of Fujifilm color
photographic papers and industrial imaging products (including NDT x-ray
films and PWB films) in the PRC. In addition, the Group also manufactures
and sells dental films under the house brand "Yes!Star".


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Document: http://n.eqs.com/c/fncls.ssp?u=QPIQUCQAJG
Document title: [Yestar International 2393.HK] Announces 2016 Interim
Results Revenue Increased by 43.7% to 1.44 Billion Profit for the Period
Surged by 109.1% yoy to 140.1 Million

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Key word(s): Half Year Results

16/08/2016 Dissemination of a Press Release, transmitted by EQS Group.
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