CHINA / Taiwan, HK, Macao |
CK Life Science triples profit(China Daily HK Edition)Updated: 2006-11-14 11:31 Tycoon Li Ka-shing's biotechnology arm CK Life Science has tripled its three-quarter net profit to HK$33 million, thanks to its revenue from a new acquisition and a surge in its product sales. CK Life Science paid US$166 million (HK$1.29 billion) to acquire 80 per cent stakes in Vitaquest International Holdings LLC, a US-based nutritional product company, in July. That acquisition has paid off, boosting the company's sales substantially, chairman Victor Li Tzor-kwoi said yesterday. Its sale revenue for the first nine months of the year exceeded HK$1.4 billion, an increase of 287 per cent, while its bottom line grew threefold to HK$33 million. And its total revenue for the first three quarters was HK$1.5 billion, 2.09 times higher from the year-ago period. Las year, Vitaquest had suffered an unaudited net loss of HK$40.5 million on a turnover of HK$1.1 billion, though it had made a net profit of HK$168 million in 2004. Chief executive H.L. Kam explained that the loss was because of the Vitaquest founder's private financial activities, including personal and non-business-related expenses, and that it would not roll over to the next accounting years. He applauded the company's strong turnover, with an average 12 per cent growth between 2005 and 2006. Li said the strong third-quarter result showed that the company was on the right track. "We will press on with global expansion and continue to search appropriate targets to acquire in overseas markets..." Global acquisitions could help the company consolidate its health and environment-related product businesses. At present, CK Life Science has HK$1.55 billion cash war chests for the expansion. Li wants to make a foray into the European market, too. The company's health care product, Adrien Gagnon, is now available on the shelf in Holland's retail chain stores of Kruidvat. "It's a milestone for us to enter the European market," he said. CK Life Insurance shares settled at HK$0.83 yesterday, dropping 3.49 per cent. |
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