TARGET
Intelligence Report
VOLUME XXI  No. 175 T H U R S D A Y August 15, 2019

 

 

 

 

 

IVD  MEDICAL  HOLDING  LTD:

SOME  GOOD  NEWS,  TO  BE  SURE,  BUT  THERE  ARE

SOME  POTENTIALLY  DISTURBING  CONSIDERATIONS,  ALSO

 

 

The gist of the content of the ‘POSITIVE PROFIT ALERT’ Announcement, published on Tuesday, July 16, 2019, signed by Mr Ho Kuk Sing (何鞠誠), Chairman of IVD Medical Holding Ltd (華檢醫療控股有限公司) (Code: 1931, Main Board, The Stock Exchange of Hongkong Ltd) may have appeared to be quite extraordinary and very bullish to a great number of people, but it, certainly, has not seemed to have impressed investors of the Hongkong Special Administrative Region (HKSAR) of the People’s Republic of China (PRC), very positively, at all.

 

Judging by the Company’s share price, only, since the publication of the above-mentioned Announcement, one could, perhaps, describe the intelligence, contained therein, as being akin to a damp squid – having failed, thus far, to live up to its expected hype.

 

The following is a verbatim copy of this Announcement:

 

INSIDE INFORMATION

 

POSITIVE PROFIT ALERT

FOR THE SIX MONTHS ENDED 30 JUNE 2019

 

This announcement is made by IVD Medical Holding Limited (the “Company”, and together with its subsidiaries, the “Group”) pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

 

The board of directors of the Company (the “Board”) wishes to inform the shareholders of the Company (the “Shareholders”) and potential investors that, based on the latest available information and a preliminary assessment of the Group’s unaudited consolidated management accounts, it is expected that the Group will record a significant increase in revenue by approximately 400% and a significant increase in profit attributable to owners of the parent of the Group by approximately 650% (taking into account of the listing expenses incurred during the six months ended 30 June 2019), respectively, for the six months ended 30 June 2019 as compared to those of the revenue and profit attributable to owners of the parent of the Group, respectively, for the six months ended 30 June 2018.

 

Reference is made to the prospectus of the Company dated 29 June 2019 (the “Prospectus”). The Board considers that the significant increase in revenue and profit attributable to owners of the parent of the Group, respectively, for the six months ended 30 June 2019 was primarily attributable to (i) the consolidation of the financial results of Vastec Medical Limited (“Vastec”) together with its subsidiaries after the completion of the acquisition of 60% shareholding interest in Vastec in January 2019 (the “Acquisition”); and (ii) a gain on remeasurement of previously held interest in Vastec of approximately RMB218 million relating to the Acquisition. Details of the Acquisition were set out in the Prospectus.

 

As at the date of this announcement (July 16, 2019), the Group is still in the process of preparing its unaudited consolidated interim results for the six months ended 30 June 2019 and is not able at this time to disclose any further details on the above factors. The information contained in this announcement is only based on the Board’s preliminary assessment with reference to the unaudited consolidated management accounts of the Group for the six months ended 30 June 2019 and information currently available to the Board, which has not been reviewed or confirmed by the Company’s auditors and/or the audit committee of the Company and is subject to changes. Shareholders and potential investors should refer to and review the unaudited consolidated interim results for the six months ended 2019, which will be published by the Company pursuant to the requirements of the Listing Rules.

 

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

 

That which caused the extraordinary increase in the Revenue and the Net Profit Attributable to Shareholders of IVD Medical Holding Ltd in respect of the six months, ended June 30, 2019, was the acquisition of 6,000 shares in the Issued Share Capital of Vastec Medical Ltd (威士達醫療有限公司), a company, incorporated in the HKSAR on August 31, 1993, referred to as, simply, ‘Vastec HK’, in most parts of the Global Offering Prospectus of IVD Medical Holding Ltd, and, upon the completion of this acquisition, then, consolidating the financial results of Vastec HK, along with the results of its subsidiaries, as well as the financial results of IVD Medical Holding Ltd.

 

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