Tagged: ERN

August 29, 2014

Shanghai Pharmaceuticals Achieves Double-Digit Growth of Revenue and Profit for 1H2014

HONG KONG, Aug. 30, 2014 /PRNewswire/ — Shanghai Pharmaceuticals Holding Co., Ltd. (“Shanghai Pharmaceuticals” or the “Company” and, together with its subsidiaries, the “Group; stock code: 601607.SH; 2607.HK), the integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical product and distribution markets, today announced its interim results for the first half of 2014. During the Reporting Period, the Company’s operating revenue was RMB44.013 billion, up by 13.68% as compared with the corresponding period of last year. Net profit attributable to the equity holders of the listed Company was RMB1.318 billion, representing an increase of 10.79% as compared with the corresponding period of last year. The operating profit margin after deducting sales and administration expenses was 4.11%, up by 0.08 percentage point from the corresponding period of last year. Basic earnings per share amounted to RMB0.4902, which laid solid foundation to ensure that the objectives for operating budget are achieved throughout the year.

In the first half of 2014, based on the overall arrangements for the new round of the three year development plan for 2013-2015 and the budgetary arrangements made at the beginning of 2014, and guided by the core values which were “innovation, integrity, cooperation, inclusiveness and responsibility”, the Company proactively built a V-shaped collaborative team, started to optimize the marketing and research and development (“R&D”) systems, continued to carry out Lean Six Sigma management projects, comprehensively optimized the organizational structure, deepened the integration of internal resources and proactively promote the external merge and acquisition to effectively control operational risks.

Optimize the R&D system, and enhance the innovation capability

In the first half of 2014, the Company established the science and technology innovation council of the Group to participate in the material decision making process in respect of the R&D, and formulated a program for controlling and assessing the Group’ R&D system with Central Research Institute as the core. In addition to the six branches, the Company set up the No.1 Biochemical Branch under the Central Research Institute, which built a solid foundation for the efficient R&D system. During the Reporting Period, the Company’s R&D expenses amounted to a total of RMB208.9 million , accounting for 3.67% of the Company’s manufacturing sales revenue.

In the first half of 2014, sales revenue from the Company’s new products launched in recent years through R&D amounted to RMB556 million, representing 9.78% of the Company’s manufacturing sales revenue. The proportion of new products has been further increased.

In respect of the R&D of the antibody drugs, the application for pharmaceutical clinical trial on “Recombinant humanized anti-CD20 monoclonal antibody injection” has been accepted by China Food and Drug Administration on May 2014, and passed the registration test and quality standards review by the National Institutes for Food and Drug Control of China. “Recombinant fusion protein of human tumor necrosis factor receptor mutant and Fc fragment injection”, a medicine co-developed with Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd., has been granted a pharmaceutical clinical approval on May 2014, to enter the clinical trial stage. In addition, the Company launched the plan for the construction of the Group’s antibody industrialisation base.

In respect of the R&D of Chinese medicine, since its establishment, the Chinese Medicine Research Institute under the Shanghai Pharmaceuticals Central Research Institute has launched the two projects of secondary development for Chinese medicine products, i.e. Babaodan and Wanbi Tablets. The company also cooperated with the Eastern Hepatobiliary Surgery Hospital subordinated to The People’s Liberation Army Second Military Medical University of China (“Second Military Medical University”) and Shanghai Institutes for Biological Sciences under Chinese Academy of Sciences (“CAS”).

In respect of the R&D of bio-chemical drugs, on April 2014, the approvals were granted to the LLTD-8, a new drug under class 1.1, for the extended clinical trial of phase I, and it was permitted to enter into the extended clinical research of phase I. The Company also developed the plan for the construction of the Group’s industrialization base for chemical active pharmaceutical ingredients (API).

Besides, the Company confirmed 13 innovation co-operation projects under the cooperation of “Translational Medicine Alliance” with the Second Military Medical University.

Main business improved steadily

In the first half of 2014, the Company’s sales revenue from the pharmaceutical business was RMB5.687 billion, representing a growth of 3.27% as compared with the corresponding period of last year; its gross profit margin was 47.79%, increased by 0.63 percentage point as compared with the corresponding period of last year. The Company realized sales revenue of RMB3.347 billion from its 64 key products, an increase of 3.92% as compared to the corresponding period of last year and accounting for 58.85% of the revenue from manufacturing sales with an average gross profit margin of 62.82%, and the average growth rate of the top five products with the highest growth rate amounted to 68.08%. In the first half of 2014, 22 products achieved sales revenue of more than RMB50 million, and the sales revenue of these products amounted to RMB2,565 million, accounting for 45.10% of the manufacturing sales.

Shanghai Pharmaceuticals’ marketing centres have set up a work operating mechanism and defined the principle of dividing various marketing departments by products and devised basic workflows since establishment. In the future, marketing centres will continue to increase its capability in making academic promotion by hospital distribution points, conducting depth distribution, and engaging in investment promotion and agency for products, will focus on 64 key products, and to formulate and define marketing target and strategy of key products and to track its implementation, in order to meet progress target.

Recently, 300 products of the Company were listed on List of Low-price Drugs Among the Pricing Range Set by the National Development and Reform Commission. 10 exclusive products or exclusive dosage forms of the Company, including Weifuchun tablets were on the list, which is expected to have positive impact on the operation results of the Company.

In the pharmaceutical distribution business, Shanghai Pharmaceutical achieved sales revenue of RMB38.51 billion in the first half of this year, an increase of 15.17% year on year; gross profit margin 6.02%, dropped 0.09 percentage points compared with the same period last year. In response to the pressure on gross margin of distribution industry, the Company continued to optimize its product structure to maintain a reasonable proportion of direct sales and promote Lean Six Sigma projects to strengthen cost control. After deducting the SG&A expenses, operating margin rose 0.25 percentage points over the same period last year to 2.78 %, operational efficiency has gradually been improved by expanding the distribution scale.

Through mergers and acquisitions, the Company has begun a nationwide distribution network, focusing on covering the east, north and south of the three key regions with strong competitiveness. The sales in East China regional accounted for 66.81%, North China regional sales accounted for 24.32%, South China regional sales accounted for 6.11%. Meanwhile, Shanghai Pharmaceutical’s active and innovative business models committed to providing customers with quality terminal network and value-added services. The Company service of innovative supply chain and high-end direct-to-patients (DTP) was currently used by a total number of 60 hospital pharmacies. Besides, it continued to maintain rapid growth in vaccines and other high-value consumables business and thus achieved sales of RMB2.77 billion in the first half of year, an increase of 41.46%.

Deepened internal integration, promoted external acquisitions

In the first half of this year, Shanghai Pharmaceutical continued to strengthen internal integration and sharing of resources, improve capital efficiency and reduce financial costs, promote internal manufacturing and distribution synergies, establish market access platform, unify and coordinate throughout tendering and resource allocation. In addition, the Company continued to promote centralized procurement of bulk herbs, packing materials and stationary, and develop Lean Six Sigma management actively so that cost efficiency and profitability are improved.

To further expand the pharmaceutical distribution network, the Company acquired 50% equity interest in Beijing Xin Hai Feng Yuan Biopharma Technology Development Co., Ltd., 85% equity interest in Shaanxi Huaxin Pharmaceutical Co., Ltd. and a 100% equity interest in Ordos Yili Pharmaceutical Co., Ltd. To further expand the pharmaceutical distribution network in Shandong, it acquired 75% equity interest in Shandong SPH Pharmaceutical Co., Ltd., and increased its holding in Shandong SPH Shanglian Pharmaceutical Co., Ltd. to 35% equity interest. To strengthen international cooperation in research and development of innovative drugs, enhance the quality of pharmacodynamics studies on new drugs, the Company made an equity investment by establishing Sichuan Green Tech Biotechnology Co., Ltd. In order to focus on its principle business, Shanghai Medical Devices Co., Ltd. under the Company transferred its 75% stake of Shanghai Shengli Medical Instruments Co., Ltd.

Subsequent progress of Babaodan

During the Reporting Period, Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (hereinafter referred as “Pientzehuang”) filed to the Intermediate People’s Court of Zhangzhou City a lawsuit (hereinafter referred as the “lawsuit”), in relation to an unfair competition dispute, against Xiamen Traditional Chinese Medicine Co., Ltd. (hereinafter referred as “Xiamen Traditional Chinese Medicine”), Xiamen Evening News Media Development Co., Ltd. and Xiamen Daily Press. On 13 March 2014, Xiamen Traditional Chinese Medicine submitted its objection to the jurisdiction to the Intermediate People’s Court of Zhangzhou City. On 18 June, Xiamen Traditional Chinese Medicine Co., Ltd. submitted its objection to the Trademark Office of The State Administration For Industry & Commerce of the People’s Republic of China (hereinafter referred as “Trademark Office of The State Administration For Industry & Commerce”) with respect to the trademarks of “Babaodan Pien Tze Huang” (application number: 11683990) and “Pien Tze Huang Babaodan” (application number: 11683929), registered by Zhangzhou Pientzehuang

Pharmaceutical Co., Ltd on 1 Nov 2012 under the Class 5 of “Chinese Medicine”, requiring the Trademark Office of The State Administration For Industry & Commerce to revoke the registration of the two aforesaid trademarks. Until now, the case is still under investigation procedure. On 23 June 2014, Xiamen Traditional Chinese Medicine received the civil judgment ((2014) Min Min Zhong Zi No. 660), and the Higher People’s Court of Fujian Province finally judged that the lawsuit shall be transferred to the jurisdiction of Xiamen Intermediate People’s Court. On 18 August 2014, the Xiamen Traditional Chinese Medicine received the Notice (2014) Xia Min Zi Di No. 937 issued by the Intermediate Court of Xiamen City, Fujian Province, pursuant to which the case in question was designated by the Higher People’s Court of Fujian Province to be in the jurisdiction of the Intermediate Court of Fuzhou City.

About Shanghai Pharmaceuticals Holding Co., Ltd.

Shanghai Pharmaceuticals is the only integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical product and distribution markets with top-three scale in China, providing solutions in pharmaceutical manufacturing, distribution, logistics storage and retail. The Group currently offers more than 800 pharmaceutical products to more than 11,000 hospitals and medical institutions in China. The Group also operates approximately more than 1,700 self-operated and franchise stores nationwide.

For further information, please contact:

Porda Havas International Finance Communications Group
Kelly Fung	+852 3150 6763	kelly.fung@pordahavas.com
Angie An	+852 3150 6736	angie.an@pordahavas.com
Kit Ng	+852 3150 6705	kit.ng@pordahavas.com
Victoria Huang	+852 3150 6731	victoria.huang@pordahavas.com
Fax: +852 3150 6728

Business

August 29, 2014

Nature Home Achieves Turnaround in 1H2014

Revenue and Gross Profit Up by 37% and 50% to Approximately RMB776 Million and RMB253 Million Respectively

Further strengthened the integrated household product strategy by introducing an O2O platform to seize online and offline shopping opportunities

HONG KONG, Aug. 29, 2014 /PRNewswire/ —

Financial Highlights:

Unaudited results for the 6 months ended 30 June	2014 *RMB’000*	2013 *RMB’000*	*Change* %
Revenue	776,398	566,977	+36.9
Gross Profit	252,658	168,888	+49.6
Profit Before Tax	26,679	(47,370)	N/A
Profit Attributable to Equity Shareholders	19,715	(55,248)	N/A
Profit Attributable to Equity Shareholders (excluding the net change in fair value of biological assets)	25,694	18,111	+41.9
Basic Earnings per Share (RMB)	0.013	(0.037)	N/A

Nature Home Holding Company Limited (“Nature Home” or the “Company“, together with its subsidiaries, the “Group“; HKEx Stock Code: 2083), announced today its interim results for the six months ended 30 June 2014 (the “Period“).

During the Period, the Group achieved encouraging financial results with revenue increased by 36.9% to approximately RMB776 million. Gross profit surged 49.6% to approximately RMB252 million. Profit attributable to equity shareholders reached approximately RMB20 million, representing a turnaround in the Period as compared to the loss attributable to equity shareholders recorded in the corresponding period of 2013. The turnaround is mainly attributable to the reduction of the negative net change in fair value of the Group’s biological assets, as well as the increase in the Group’s revenue and gross profit. During the Period, approximately 10.09 million square meters of flooring products were sold (1H2013: approximately 8.45 million square meters), representing an increase of 19.4% year-on-year.

Mr. Se Hok Pan, Chairman and Executive Director of Nature Home stated, “In the first six months of 2014, we continued to strengthen our efforts on brand building and sales, to further broaden the coverage in international markets under the intensified industry competition, this is reflected in the significant increase in the trading revenue of timber and wood products. The turnaround recorded during the Period reflected the success of our business development strategies, brand building and sales efforts. With the change of our Company name to ‘Nature Home Holding Company Limited‘, we aim at achieving our goal in offering integrated household products with our ‘Nature‘ brand, representing an image of high quality, safe and environmentally-friendly household brand.”

Manufacturing and Sale of Wood Products

During the Period, turnover of the Group’s manufacturing and sale of wooden products has increased 39.2% to approximately RMB527 million, mainly attributable to the continued recovery of the Group’s flooring business in the PRC and the overall increased sales in flooring products.

The Group has successfully developed a solid and extensive sales network in the PRC. It has 1,856 “Nature” stores, 1,121 “Nature No.1 My Space” stores, 152 “Nature Aesthetics” stores, 99 foreign imported brand stores and 116 other brand stores as at 30 June 2014, amounting to 3,344 stores in total.

Nature Home will continue to focus on the development in the business of wooden doors, wardrobes and cabinets with the “Nature” brand, striving to improve such business in the future with the completion and operation of the new product line in the newly opened Taizhou Production Plant in Jiangsu Province, the PRC and the planned trial production of the Zhongshan Wardrobes and Cabinets Plant in the second half of 2014.

Trading of Timber and Wood Products

For the overseas market, the recovery of the global economy, especially the economy of the U.S., has created a favorable environment for the development of the Group’s business and brought to the group significant growth in the trading business revenue of timber and wood products. The Group’s subsidiaries located in the U.S. have further boosted the Group’s business development by establishing additional sales channels, which resulted in a sustained growth in the Group’s sales for the trading of wood flooring products in the U.S. During the Period, the Group’s trading business of timber and wood products contributed a revenue of approximately RMB165 million, representing a significant increase of 61.8% as compared to approximately RMB102 million in the corresponding period of 2013.

Chairman Se concluded, “Looking forward, the Group is still facing various challenges. However, the Group has captured the opportunities from the trend of online and offline shopping. We plan to establish an online housing O2O platform for the household industry to provide our customers with a one-stop solution with household products, logistics and decoration as well as installation service. The Group also plans to open ‘O2O Household Package Experience Stores’, which will display different packages of household products, offering customers an open experience for household products. We will also continue to implement our strategy of integrated household products and enhancing our household brand with a combination of online and offline platforms, in order to maximize the effectiveness in sales of the household brand. We will also strive for better performance in the future for the relevant business, especially with the new production line of wooden doors in the Taizhou Plant and a new production line of wardrobes and cabinets in the Zhongshan Plant. As one of the largest wood flooring brands in China, we have full confidence in our business and we will continue to reinforce our leading position in the industry to maximize returns to our shareholders.”

About Nature Home Holding Company Limited

Nature Home is the largest wood flooring brand in China in terms of market share by retail sales value of branded wood flooring products. According to an industry report of China’s flooring market conducted by an independent global market research and consulting company (the “Industry Report”), the Group’s “Nature” branded products accounted for 7.0% market share in terms of China’s total retail sales value of branded wood flooring products in 2011. The Group’s branded products are manufactured through a combination of its own manufacturing facilities and exclusive authorized manufacturers.

According to Industry Report, in 2011, the Group’s branded products ranked second in laminated flooring, first in multi-layered engineered flooring and first in solid wood flooring, each in terms of both the market share of retail sales volume and retail sales value in China. The Group is the only company to achieve a top two market share position across the three primary wood flooring product categories in China in 2011. Leveraging its strong brand, extensive distribution network, comprehensive product portfolio and flexible manufacturing model, the Group grew rapidly and gained market share in China from 2008 to 2011.

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140829/8521404880-a

Medical

August 28, 2014

China Cord Blood Corporation Reports First Quarter Fiscal 2015 Financial Results

1Q15 Added 15,548 New Subscribers

1Q15 Revenue Up 19.1% YOY to RMB153.3 Million ($24.7 Million)

1Q15 Operating Income Up 31.1%YOY to RMB60.2 Million ($9.7 Million)

Conference Call to be Held August 29, 2014 at 8:00 a.m. ET

HONG KONG, Aug. 29, 2014 /PRNewswire/ — China Cord Blood Corporation (NYSE: CO) (“CCBC” or the “Company”), China’s leading provider of cord blood collection, laboratory testing, hematopoietic stem cell processing, and stem cell storage services, today announced its preliminary unaudited financial results for the first quarter of fiscal year 2015 ended June 30, 2014.

First Quarter of Fiscal 2015 Highlights

Revenues for the first quarter of fiscal 2015 increased to RMB153.3 million ($24.7 million) from RMB128.7 million in the prior year period.
15,548 new subscribers were added, resulting in an accumulated subscriber base of 392,171.
Gross profit increased to RMB123.6 million ($19.9 million) from RMB104.2 million in the prior year period.
Gross margin was 80.6%, compared to 81.0% in the prior year period.
Operating income increased to RMB60.2 million ($9.7 million), from RMB45.9 million in the prior year period, despite an RMB2.8 million increase in depreciation expense.
Interest expense increased to RMB24.9 million ($4.0 million), compared to RMB14.8 million in the prior year period, due to less interest expense capitalization.
Net income attributable to the Company’s shareholders was RMB29.7 million ($4.8 million), compared to RMB32.9 million in the prior year period.
Operating cash flow for the quarter was RMB124.6 million ($20.1 million).

“We began fiscal 2015 with another solid quarter, adding 15,548 new subscribers which represented a modest year-over-year increase,” stated Ms. Ting Zheng, Chief Executive Officer of CCBC. “Through the implementation of sound marketing strategies that focus on service quality and premium branding, we continued to seize opportunities in the high-end segment of the market. As the majority of our new subscribers selected the one-time upfront payment option, our cash-flow generation remained robust and consistent.”

Ms. Zheng further commented, “With our new facilities in Guangdong and Zhejiang largely completed, we are working through the final stages of their development to ensure they are fully operational as soon as possible. The new processing and storage capacity will effectively resolve our processing bottleneck in Zhejiang and allow us to gradually scale up our operations in this under-penetrated region. The additional capacity will also allow us to further develop and penetrate the Guangdong market, the area in which the majority of our new subscribers in the first quarter are located.”

Summary – First Quarter Ended June 30, 2013 and 2014

	Three Months Ended June 30,
	Three Months Ended June 30,
	2013	2014
(in thousands)	RMB	RMB	US$
Revenues	128,721	153,331	24,716
Gross Profit	104,229	123,555	19,916
Operating Income	45,880	60,167	9,698
Net Income Attributable to the Company’s Shareholders	32,906	29,736	4,793
Earnings per Ordinary Shares – Basic[1] and Diluted (RMB/US$)	0.40	0.37	0.06

Revenue Breakdown (%)
Processing Fees	69.5%	69.2%
Storage Fees	30.5%	30.8%

New Subscribers (persons)	15,260	15,548
Total Accumulated Subscribers (persons)	327,242	392,171

[1] The terms of the convertible notes issued to KKR China Healthcare Investment Limited (“KKR”) and Golden Meditech Holdings Limited (“Golden Meditech”) provide each party with the ability to participate in any excess cash dividend. Therefore, the calculation of basic EPS has taken into consideration the effect of such participating rights of RMB0.04 ($0.01) for the three months ended June 30, 2014.

Summary – Selected Cash Flow Statement Items

	Three Months Ended June 30, 2014
(in thousands)	RMB	US$
Net cash provided by operating activities	124,643	20,091
Net cash used in investing activities	(18,397)	(2,965)
Net cash used in financing activities	–	–

First Quarter of Fiscal 2015 Financial Results

REVENUES. Revenues increased by 19.1% to RMB153.3 million ($24.7 million) in the first quarter of fiscal 2015 from RMB128.7 million in the prior year period. The increase in revenues resulted from solid growth in both processing and storage revenue.

Revenues generated from storage fees increased by 20.1% to RMB47.2 million ($7.6 million), from RMB39.3 million in the prior year period. The increase was mainly due to the steady growth of the Company’s accumulated subscriber base, which has expanded to 392,171 as of the end of June 2014. Revenues generated from storage fees as a percentage of total revenues edged up to approximately 30.8%, from 30.5% in the prior year period.

The difference in processing fees between the first quarter of fiscal 2015 and 2014, combined with the year-over-year growth in subscriber number, contributed to the increase in revenues generated from processing fees to RMB106.1 million ($17.1 million) from RMB89.4 million in the prior year period. As a percentage of total revenues, revenues from processing fees accounted for 69.2%, compared to 69.5% in the prior year period.

GROSS PROFIT. Gross profit for the first quarter of fiscal 2015 increased by 18.5% to RMB123.6 million ($19.9 million). Gross margin decreased slightly to 80.6% from 81.0% in the prior year period primarily due to increased material costs.

OPERATING INCOME. Operating income for the first quarter of fiscal 2015 increased to RMB60.2 million ($9.7 million), resulting in an operating margin of 39.2%, which is a 3.6% improvement from 35.6% in the prior year period. Depreciation and amortization expenses for the first quarter were RMB11.4 million ($1.8 million), compared to RMB8.6 million in the prior year period.

Research and Development Expenses. Research and development expenses remained stable at RMB2.5 million ($0.4 million).

Sales and Marketing Expenses. During the quarter, the Company’s sales and marketing expenses increased to RMB31.7 million ($5.1 million) from RMB28.4 million in the prior year period. However, as a percentage of revenues, sales and marketing expenses decreased to 20.7% from 22.1%. The improvement is a result of the Company’s focus on resource allocation and sales efficiency while further penetrating markets across the Company’s operating regions. While the new facilities in Zhejiang are expected to be operational in the near future, management continues to carefully plan and execute its marketing strategy and ensure that expenses are kept in check in that region.

General and Administrative Expenses. General and administrative expenses increased to RMB29.1 million ($4.7 million) from RMB27.4 million in the prior year period. This increase was primarily due to increased depreciation expenses and administrative overhead stemming from preparation for the full commercial launch of the Company’s new facilities. However as a percentage of revenues, G&A expenses decreased to 19.0% from 21.3%, as the overall increase in revenues exceeded the rise in depreciation and administrative expenses.

OTHER INCOME AND EXPENSES

Interest Expense. Interest expense incurred in the three months ended June 30, 2014 amounted to RMB24.9 million ($4.0 million), which primarily relates to the Company’s outstanding convertible notes. For the prior year period, interest expense was RMB14.8 million due to the RMB8.5 million capitalization of interest expense for the construction of the Company’s new facilities in Zhejiang and Guangdong.

Other. For the first quarter of fiscal 2015, the Company recorded dividend income of RMB1.2 million ($0.2 million), which was derived from the Company’s equity investment in Cordlife Group Limited (“Cordlife”). During the first quarter of fiscal 2014, the Company received dividend income of RMB8.7 million from its equity investments in both the Shandong Cord Blood Bank and Cordlife.

NET INCOME ATTRIBUTABLE TO THE COMPANY’S SHAREHOLDERS. Profit before tax for the first quarter of fiscal 2015 decreased by 6.5% to RMB41.5 million ($6.7 million). The Company’s improved operating income was offset by the increase in interest expense and decrease in dividend income. As a result, net income attributable to the Company’s shareholders for the first quarter of fiscal 2015 decreased by 9.6% to RMB29.7 million ($4.8 million).

EARNINGS PER SHARE. The terms of the convertible notes issued to KKR and Golden Meditech provide each party with the ability to participate in any Excess Cash Dividend[2]. Therefore, the calculation of basic and diluted EPS has taken into consideration the effect of such participating rights of RMB0.04 ($0.01) for the first quarter of fiscal 2015. Basic and diluted earnings per ordinary share for the first quarter of fiscal 2015 were RMB0.37 ($0.06).

[2] “Excess Cash Dividend” means any cash dividend to holders of shares that, together with all other cash dividends previously paid to holders of shares in the same financial year, exceeds, on a per share basis, an amount equal to the interest that has accrued and shall accrue at 7% in such financial year divided by the number of shares into which the note is convertible at the conversion price then in effect on the relevant record date.

LIQUIDITY. As of June 30, 2014, the Company had cash and cash equivalents of RMB1,989.5 million ($320.7 million) compared to RMB1,882.9 million as of March 31, 2014. The Company had total debt of RMB848.0 million ($136.7 million) as of June 30, 2014. Operating cash inflow for the first quarter of fiscal 2015 amounted to RMB124.6 million ($20.1 million).

Conference Call

The Company will host a conference call at 8:00 a.m. ET on Friday, August 29, 2014 to discuss its financial performance and give a brief overview of recent developments, followed by a question and answer session. Interested parties may access the audio webcast through the Company’s IR website at http://ir.chinacordbloodcorp.com. A replay of the webcast will be accessible two hours after the presentation and available for three weeks at the same URL link above. Listeners may also access the call by dialing 1-631-514-2526 or 1-855-298-3404 for US callers or +852-5808-3202 for Hong Kong callers, access code: 1856118.

About China Cord Blood Corporation

China Cord Blood Corporation is the first and largest umbilical cord blood banking operator in China in terms of geographical coverage and the only cord blood banking operator with multiple licenses. Under current PRC government regulations, only one licensed cord blood banking operator is permitted to operate in each licensed region and only seven licenses have been authorized as of today. China Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services. For more information, please visit our website at http://www.chinacordbloodcorp.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company’s future financial performance. The Company has attempted to identify forward-looking statements by terminology including “anticipates”, “believes”, “expects”, “can”, “continue”, “could”, “estimates”, “intends”, “may”, “plans”, “potential”, “predict”, “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions; uncertainties and other factors may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this press release is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this press release is issued, and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to conform these statements to actual results, unless required by law.

The forward-looking statements included in this press release are subject to risks, uncertainties and assumptions about the Company’s businesses and business environments. These statements reflect the Company’s current views with respect to future events and are not a guarantee of future performance. Actual results of the Company’s operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include, among other things: continued compliance with government regulations regarding cord blood banking in the People’s Republic of China, or PRC and any other jurisdiction in which the Company conducts its operations; changing legislation or regulatory environments (including revisions to China’s One Child Policy) in the PRC and any other jurisdiction in which the Company conducts its operations; the acceptance by subscribers of the Company’s different pricing and payment options and reaction to the introduction of the Company’s premium-quality pricing strategy; demographic trends in the regions of the PRC in which the Company is the exclusive licensed cord blood banking operator; labor and personnel relations; the existence of a significant shareholder able to influence and direct the corporate policies of the Company; credit risks affecting the Company’s revenue and profitability; changes in the healthcare industry, including those which may result in the use of stem cell therapies becoming redundant or obsolete; the Company’s ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; the availability of capital resources, including in the form of capital markets financing opportunities, in light of industry developments affecting issuers that have pursued a “reverse merger” with an operating company based in China, as well as general economic conditions; compliance with restrictive debt covenants under our senior convertible notes; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission in the United States.

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars as of and for the periods ending June 30, 2014 were made at the noon buying rate of RMB6.2036 to $1.00 on June 30, 2014 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. China Cord Blood Corporation makes no representation that the Renminbi or U.S. dollar amounts referred to in this press release could have been or could be converted into U.S. dollars or Renminbi, at any particular rate or at all.

For more information, please contact:

China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com

ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.Zima@icrinc.com

EXHIBIT 1

CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31 and June 30, 2014

	March 31,	June 30,
	2014	2014
	RMB	RMB	US$
	(in thousands except share data)

ASSETS
Current assets
Cash and cash equivalents	1,882,901	1,989,506	320,702
Accounts receivable, less allowance for doubtful accounts (March 31, 2014: RMB20,322; June 30, 2014: RMB22,145)	95,273	101,900	16,426
Inventories	31,583	29,008	4,677
Prepaid expenses and other receivables	37,010	27,339	4,407
Debt issuance costs	3,616	3,615	583
Deferred tax assets	7,664	7,948	1,281
Total current assets	2,058,047	2,159,316	348,076
Property, plant and equipment, net	626,632	618,553	99,709
Non-current prepayments	208,894	214,825	34,629
Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2014: RMB42,703; June 30, 2014: RMB43,722)	225,496	220,924	35,612
Inventories	48,385	51,256	8,262
Intangible assets, net	120,549	119,394	19,246
Available-for-sale equity securities	144,247	148,711	23,972
Other investment	189,129	189,129	30,487
Debt issuance costs	7,854	6,951	1,120
Deferred tax assets	1,789	1,893	305
Total assets	3,631,022	3,730,952	601,418

LIABILITIES
Current liabilities
Bank loan	60,000	60,000	9,672
Accounts payable	10,422	14,957	2,411
Accrued expenses and other payables	102,559	68,567	11,053
Deferred revenue	196,432	198,717	32,033
Amounts due to related parties	21,453	16,820	2,711
Income tax payable	2,571	1,525	246
Deferred tax liabilities	3,900	5,200	838
Total current liabilities	397,337	365,786	58,964
Convertible notes	777,753	787,988	127,021
Non-current deferred revenue	823,921	897,363	144,652
Other non-current liabilities	164,077	177,551	28,621
Deferred tax liabilities	27,938	27,639	4,455
Total liabilities	2,191,026	2,256,327	363,713

EQUITY
Shareholders’ equity of China Cord Blood Corporation
Ordinary shares
– US$0.0001 par value, 250,000,000 shares authorized, 73,140,147 shares issued and 73,003,248 shares outstanding as of March 31 and June 30, 2014, respectively	50	50	8
Additional paid-in capital	798,221	798,221	128,671
Treasury stock, at cost (March 31 and June 30, 2014: 136,899 shares, respectively)	(2,815)	(2,815)	(454)
Accumulated other comprehensive income	84,263	89,298	14,395
Retained earnings	555,323	585,059	94,309
Total equity attributable to China Cord Blood Corporation	1,435,042	1,469,813	236,929
Non–controlling interests	4,954	4,812	776
Total equity	1,439,996	1,474,625	237,705
Total liabilities and equity	3,631,022	3,730,952	601,418

EXHIBIT 2

CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months ended June 30, 2013 and 2014

	Three months ended June 30,
	2013	2014
	RMB	RMB	US$
	(in thousands except share data)

Revenues	128,721	153,331	24,716
Direct costs	(24,492)	(29,776)	(4,800)
Gross profit	104,229	123,555	19,916
Operating expenses
Research and development	(2,523)	(2,499)	(403)
Sales and marketing	(28,424)	(31,743)	(5,117)
General and administrative	(27,402)	(29,146)	(4,698)
Total operating expenses	(58,349)	(63,388)	(10,218)
Operating income	45,880	60,167	9,698
Other expense, net
Interest income	4,182	4,266	688
Interest expense	(14,758)	(24,895)	(4,013)
Exchange (loss)/gain	(124)	180	29
Dividend income	8,722	1,196	193
Others	530	617	99
Total other expense, net	(1,448)	(18,636)	(3,004)
Income before income tax	44,432	41,531	6,694
Income tax expense	(11,373)	(11,937)	(1,924)
Net income	33,059	29,594	4,770
Net income attributable to non-controlling interests	(153)	142	23
Net income attributable to China Cord Blood Corporation’s shareholders	32,906	29,736	4,793

Net income per share:
Attributable to ordinary shares
– Basic	0.40	0.37	0.06
– Diluted	0.40	0.37	0.06

Other comprehensive income
– Net effect of foreign currency translation, net of nil tax	6,805	529	85
– Net unrealized gain in available-for-sale equity securities, net of nil tax	24,338	4,506	726
Comprehensive income	64,202	34,629	5,581

Comprehensive income attributable to non-controlling interests	(153)	142	23
Comprehensive income attributable to China Cord Blood Corporation’s shareholders	64,049	34,771	5,604

Business / FIN / OIL

August 28, 2014

Steady Development with Solid Performance in 1H 2014

HONG KONG, Aug. 28, 2014 /PRNewswire/ — CNOOC Limited (the “Company”, NYSE: CEO, SEHK: 00883, TSX: CNU) today announced its interim results for the six months ended June 30, 2014.

For the first half of the year, the Company’s total net oil and gas production reached 211.6 million barrels of oil equivalent (BOE), up 6.8% year-on-year (yoy), with 36.3 million BOE contributed by Nexen.

The Company’s average realized oil price was US$106.30 per barrel in the first half of 2014, representing an increase of 2.0% yoy, while average realized gas price rose 13.5% yoy to US$6.44 per thousand cubic feet.

Benefited from the growth of net oil and gas production and increase in realized oil and gas prices, the Company recorded RMB117.1 billion in oil and gas sales revenue, a yoy increase of 5.7%; meanwhile, net profit fell 2.3% yoy to RMB33.59 billion.

In the first half of 2014, the Company’s all-in cost was US$43.20 per BOE, up slightly by 2.0 % yoy, while operating cost was US$11.78 per BOE, up 7.0 % yoy, mainly attributable to the consolidation of two more months of Nexen’s performance.

In the area of exploration, the Company made 9 new discoveries and 23 successful appraisal wells. Among them, Lingshui 17-2, discovered by “Haiyangshiyou 981”, was successfully tested and is expected to become the first large-sized deepwater gas field made by our independent exploration activities. While Luda 16-3 South structure is expected to become a mid-sized discovery after appraisal, Kenli 16-1 structure uncovers the good exploration potential of southern slope of Laizhou Bay Sag in Bohai. Kenli 3-2 oilfields, Panyu10-2/5/8 project and Wenchang 13-6 oilfield have commenced production within the year as scheduled while other projects are progressing accordingly.

During the period, the Company continued to advance the integration of Nexen, especially in the areas of management, resources development and corporate culture. Nexen’s safety and environmental protection achieved best performance in its history in the first half of 2014. Production efficiency of Buzzard oilfield in the UK North Sea was further enhanced, while production and operation of Long Lake oil sands project achieved significant improvement. The progress of integration reached the Company’s expectation.

Mr. Wang Yilin, Chairman of the Company, said, “In the first half of 2014, the Company has executed its ‘New Leap Forward’ strategy in a solid way and achieved satisfactory results. We will endeavor to strengthen our management, enhance the growth quality and efficiency of the Company to create greater value for our shareholders.”

Mr. Li Fanrong, CEO of the Company commented, “During the first half of 2014, we have actively pushed ahead different areas of our business. Good progress was made in the production and operation and a healthy financial position was maintained. In the second half of the year, we will continue to work diligently to ensure that we meet our annual production and business targets.”

In the first half of the year, the Company’s basic earnings per share reached RMB0.75. The Board has declared an interim dividend of HK$0.25 per share (tax inclusive).

Notes to Editors:

More information about the Company is available at http://www.cnoocltd.com.

This press release includes “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate under the circumstances. However, whether actual results and developments will meet the expectations and predictions of the Company depends on a number of risks and uncertainties which could cause the actual results, performance and financial condition to differ materially from the Company’s expectations, including those associated with fluctuations in crude oil and natural gas prices, the exploration or development activities, the capital expenditure requirements, the business strategy, whether the transactions entered into by the Group can complete on schedule pursuant to its terms and timetable or at all, the highly competitive nature of the oil and natural gas industries, the foreign operations, environmental liabilities and compliance requirements, and economic and political conditions in the People’s Republic of China. For a description of these and other risks and uncertainties, please see the documents the Company files from time to time with the United States Securities and Exchange Commission, including the 2013 Annual Report on Form 20-F filed on 17 April 2014.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realised or, even if substantially realised, that they will have the expected effect on the Company, its business or operations.

For further enquiries, please contact:

Ms. Michelle Zhang
Deputy Manager, Media / Public Relations
CNOOC Limited
Tel: +86-10-8452-6642
Fax: +86-10-8452-1441
E-mail: MR@cnooc.com.cn

Ms. Cathy Zhang
Hill+Knowlton Strategies Asia
Tel: +852-2894-6211
Fax: +852-2576-1990
E-mail: cathy.zhang@hkstrategies.com

Logo – http://www.prnasia.com/sa/200701301659.jpg

Business / FIN

August 28, 2014

The Lombard Odier Group Reports Results for the First Half of 2014

GENEVA, Aug. 28, 2014 /PRNewswire/ —

Total client assets on 30 June 2014 amounted to CHF 211 billion of which assets under management were CHF 156 billion
Consolidated net profit was CHF 62.5 million for the Group
Fully-loaded Basel III CET1 ratio stood at 23.8%

Assets under management and strategic diversification across three business lines

Several years ago, Lombard Odier decided to accelerate the expansion of its private client business in Europe, Asia and Switzerland, to sharpen the scope of its asset management business and to turn its technology platform into a profit centre. This long-term strategic evolution is showing steady progress and positions the firm for the future.

As a result, today the Group is organised around three business lines with total client assets at the end of June 2014 of CHF 211.0 billion. Total client assets in the private clients business amounted to CHF 114.7 billion. Asset management clients invested CHF 47.8 billion. Technology and banking services clients entrusted an additional CHF 48.5 billion of assets to Lombard Odier.

Solid earnings

The Group’s consolidated income in the first six months was CHF 527.1 million and the operational cost base was CHF 429.7 million. Operating cost-income ratio for the Group stood at 80%, reflecting long-term investments in three strategic areas: the private client businesses in Europe, Asia and Switzerland; asset management expertise for institutional clients; and further developments into the technology platform that Lombard Odier provides to third parties.

“These results are in line with our expectations and reflect both the investments we make towards our strategic objectives as well as the conservative use of our balance sheet,” said Patrick Odier, Senior Managing Partner. “Our Group is increasingly diversified, more international and more balanced between private and asset management clients and we are expanding our partnerships with financial services providers. Our solid net profit allows us to continue investing in all three businesses.”

Strong and liquid balance sheet

The consolidated balance sheet totals CHF 17.1 billion and is conservatively invested. The Group has no external debt and is well capitalised with a fully-loaded Basel III CET1 ratio of 23.8%, which is well above the FINMA’s 12% target. The Liquidity Coverage Ratio was 653%.

One of the Group’s objectives is to remain one of the best capitalised banks in the world. Lombard Odier’s strong capitalisation is a foundation of its clients’ trust in the firm.

About Lombard Odier

Lombard Odier provides its private clients with a full range of bespoke services such as succession planning, discretionary and advisory portfolio management, tax reporting and custody services. With a view to remaining close to its clients’ needs, the Group is able to harness expertise and technology to provide wealth management solutions across the globe. Lombard Odier has developed significant private banking operations in Europe, Asia and Switzerland.

Lombard Odier Investment Managers (LOIM), the Group’s asset management unit, seeks to deliver performance by identifying sources of both risk and return through absolute return, smart beta and high conviction strategies. LOIM offers its clients a range of innovative solutions including risk-based asset allocation, thematic equity investments, convertible bonds and absolute return as well as alternative strategies.

Lombard Odier provides its technology and banking clients with its own IT and operational infrastructure as well as global custody and reporting services.

The Lombard Odier Group has a presence in the world’s main financial centres and offers its clients a global perspective through its network of offices in 19 jurisdictions. The Group employs about 2,000 people.

The Group has a AA- Fitch rating with a “stable” outlook.

Lombard Odier is headed by eight Managing Partners, who represent up to the seventh generation of bankers running the Firm. They are both owners and managers and are involved with leading the firm’s strategy and management as well as serving clients. Since its founding in 1796, the Firm has stayed true to its primary vocation of preserving and nurturing the assets entrusted to it and helping to hand them to future generations.

For more information: http://www.lombardodier.com

Bank Lombard Odier & Co Ltd
Rue de la Corraterie 11
1204 Geneva
http://www.lombardodier.com

Warren Giles
Media Relations (English)
Tel: +41(22)709-31-57
w.giles@lombardodier.com

Christoph G. Meier
Head of Communications
Tel: +41(0)22-709-17-46
c.meier@lombardodier.com

Marionna Wegenstein
Pressverantwortliche (Deutsch)
Tel: +41(44)214-14-10
m.wegenstein@lombardodier.com

Media Relations
Tel: +41(22)709-21-21

Francois Mutter
Relations Medias (Francais)
Tel: +41(22)709-93-64
f.mutter@lombardodier.com

FAS / Fashion / FIN / General

August 27, 2014

China Fordoo Holdings Limited (Stock Code: 2399) Announces 2014 Interim Results

— Turnover Reached RMB766.2 Million

— Gross Profit Increased by 13.0% to RMB269.1 Million

HONG KONG, Aug. 28, 2014 /PRNewswire/ — China Fordoo Holdings Limited (“Fordoo” or the “Company” and, together with its subsidiaries, the “Group”, Stock Code: 2399), a reputable menswear brand in the PRC, is pleased to announce its interim results for the period ended 30 June 2014 (the “period”).

During the period, benefited from the growing recognition of the Group’s “FORDOO” brand and an increase in the average wholesale price of products, the Group’s turnover increased to RMB766.2 million, representing an increase of 6.8% over the corresponding period last year (1H2013: RMB717.4 million). The expansion of distribution network further strengthened the profitability of the Group. Net profit increased by 8.5% to RMB128.7 million over the corresponding period in 2013. Basic and diluted earnings per share were RMB36 cents, representing an increase of 8.5% as compared to the corresponding period last year (1H2013: RMB33 cents).

Mr. Kwok Kin Sun, Executive Director, Chief Executive Officer and Chairman of the Board said, “In the first half of 2014, China’s economic growth continued to slowdown and the retail market remained weak. For the apparel retail industry, the total retail sales of garments, hats, footwear and knitwear recorded a 10.0% year-on-year increase, which was 1.9 percentage points lower than that of the corresponding period in 2013. Therefore, the Group adopted a prudent operation strategy and focused on improving the distribution channel management and enhancing product quality and design. We are very satisfied that the purchase orders from the sales fair held in March 2014 increased by 24% from the ones held in September 2013.”

Business Review

As a reputable menswear brand in the PRC, by product type, Fordoo continued to lead the market in the men’s trousers segment. In the first half of 2014, turnover from men’s trousers increased by 16.9% to RMB458.1 million as compared to the corresponding period last year (1H2013: RMB392.0 million). In addition, sales of trousers remained the major contributor to the total turnover with a proportion of 59.8%. In terms of product style, the Group maintained a healthy growth in the business formal and business casual series. The business casual series continued to be the largest turnover contributor to the Group with a proportion of 63.4% (1H2013: 61.1%).

The Group has been striving to optimize its retail and sales network for the sustainable business growth. As of 30 June 2014, the retail and distribution network of the Group further expanded to 52 distributors and 180 sub-distributors. During the period, the Group had a total 1,353 retail outlets (including 2 self-operated retail stores), representing a net increase of 53 retail outlets as at 31 December 2013, spanning over 240 cities and 31 provinces, autonomous regions and central government-administered municipalities in the PRC. The increase in retail outlets was a strategy to further penetrate into the markets in the second and third-tier cities.

In the first half of 2014, as part of the Group’s marketing and promotion plan to enhance and reinforce its brand image, the renovation of 41 existing stores had completed, and the plan for renovating another 59 stores by the end of the year remained on track. In addition, the Group continued to actively carry out regular advertising and promotion campaign through various channels, such as advertisements in fashion magazines, promotion activities in the internet and other media, as well as advertisements on large outdoor billboards in airports, highways and well-known department stores.

Prospects

Looking ahead to the second half of 2014, the Group sustains its cautiously optimistic view with respect to the growth of consumer demand in menswear market in China. It is confident that the ongoing urbanization and expanding middle class in China will generate a strong demand on apparels in the long run. Therefore, the Group maintains its target for distributors of adding approximately 200 retail outlets within the year. In the coming 2014 spring/summer sales fair to be held in September 2014, the Group will launch a new casual fashion line targeting young customers aged 18 to 30.

Mr. Kwok concluded, “Fordoo will strive to seize the opportunities arising from the continuous growth of the men’s casual wear and trousers market in PRC, as well as strengthen its cooperation with the distributors and sub-distributors. The Group will equip itself for the future development through enhancing its product design and development capability and kicking off the implementation of the ERP system. Driven by the success of men’s trousers, business formal and business casual series, it is believed that the Group could continue its sustainable growth and maximize shareholders’ returns.”

– End –

About China Fordoo Holdings Limited

Fordoo is a reputable menswear brand in the PRC. Positioned in the middle-upper menswear segment, Fordoo primarily targets men aged 30 to 60. According to Frost & Sullivan, Fordoo brand was ranked sixth in the middle-upper menswear market with a market share of 2.9%, fifth in both the middle-upper business casual menswear segment and the middle-upper business formal menswear segment with respective market share of 4.0% and 2.9%, and second in the men’s trousers category with a market share of 3.0%, all of which were in terms of retail sales in 2013. Fordoo manages and operates the business through a strategically integrated model, comprising brand management and marketing, design and product development, ordering process, procurement of raw materials, self-production and outsourced production and sales and distribution. As of 30 June 2014, Fordoo’s distribution network comprised of 52 distributors, 180 sub-distributors and 1,353 retail outlets (excluding the two self-operated stores).

Issued by Porda Havas International Finance Communications Group for and on behalf of China Fordoo Holdings Limited.

Business / CST

August 27, 2014

Dongpeng Holdings Company Limited Announces 2014 Interim Results

Revenue Increased by 27.4% to RMB1,623.9 Million

Profit Attributable to Owners of the Company Surged by 47.7% to HK$179.1 Million

HONG KONG, Aug. 27, 2014 /PRNewswire/ —

Financial Highlights	For the six months ended 30 June（RMB Million）
Financial Highlights	2014 (Unaudited)	2013 (Audited)	Change %
Revenue	1,623.9	1,274.7	+27.4%
Gross profit	579.5	473.4	+22.4%
Gross margin	35.7%	37.1%	-1.4pts
Profit attributable to owners of the Company	179.1	121.2	+47.7%
Net Profit Margin	11.0%	9.5%	+1.5pts
Basic earnings per share	RMB0.14	RMB0.13	+7.7%

Dongpeng Holdings Company Limited (“Dongpeng” or the “Company” and, together with its subsidiaries, the “Group”, Stock Code:3386), the largest ceramic tile company in China, announced its interim results for the period ended 30 June 2014 (the “Period”).

In the first half of 2014, the Group leveraged its dual sales model of direct sales and third party distributors to continuously realize an effective and efficient expansion strategy, increase market recognition of “Dongpeng” brand, expand the customer base, deliver high quality customer services, and further enhance the Group’s leading position in the industry. During the Period, the Group’s total revenue amounted to approximately RMB1,623.9 million, representing an increase of 27.4% (1H2013: approximately RMB 1,274.7 million). The increase in total revenue was primarily attributable to an increase in the sales of the high-end glazed tile products and bathroom products.

During the Period, the Group recorded the gross profit of RMB579.5 million, representing an increase of 22.4% over the corresponding period last year (1H2013: approximately RMB473.4 million). The gross profit margin slightly decreased 1.4 percentage points to 35.7% (1H2013: 37.1%). Profit attributable to owners of the Company was approximately RMB179.1 million (1H2013: approximately RMB121.1 million), representing a significant increase of 47.7% as compared to the same period last year.

Business Review

	For the six months ended 30 June（RMB Million）
	Revenue		Change	% of Total Revenue
	2014 (Unaudited)	2013 (Audited)	%	2014	2013
Unglazed Tile Products	647.6	621.8	+4.1%	39.9%	48.8%
Glazed Tile Products	754.5	596.9	+26.4%	46.4%	46.8%
Subtotal	1,402.1	1,218.7	+15.1%	86.3%	95.6%
Bathroom Products	221.8	56.0	+295.8%	13.7%	4.4%
Total Revenue	1,623.9	1,274.7	+27.4%

Ceramic Tile Business

The ceramic tile business is mainly consisted of the sales from unglazed tile products and glazed tile products. During the Period, revenue from glazed tile products increased by 26.4% to RMB754.5 million (1H2013: RMB596.9 million), while revenue from unglazed tile products increased by 4.1% to RMB647.6 million (1H2013: RMB621.8 million).

The Group’s continuous sales and marketing efforts and expansion of sales channels sustained the growth of the ceramic tile business during the Period. The Group newly increased 216 retail outlets (including self owned and third party operated) to the total number of 1,825, covering over 600 cities across all provinces in China. Meanwhile, the Group continued to devote significant resources into technological innovation, new product design and development, and introduced 19 new product series including the glossy glazed tiles product series, namely Iran White Jade series, Cappuccino series and landscape stone series, and the unglazed tiles product series, namely matt supreme travertine series and world travertine series. In addition, the Group continued to expand and diversify the product of ceramic chips into the mass-market products and boosted the sales growth. At the same time, sales of the antique-inspired tiles also ramped up and their usage in real estate projects increased.

Bathroom Products Business

The acquisition of Dongpeng Sanitary Ware in May 2013 significantly promoted the bathroom products business with the revenue increased by 295.8% to RMB221.8 million (1H2013: RMB56.0 million). In July 2014, the Group acquired 62% equity interests in Innoci in order to expand its business in the mid to high-end bathroom product market. Leveraging excellent product design capabilities and brand positioning of Innoci’s talented and experienced product design team, as well as production capacity, distribution channels and logistic advantage of the Company, it will bring new momentum to Dongpeng to expand its business and sales in the contemporary and design-driven market sector, propelling the long-term steady development of the bathroom product business.

Utilization of On-line Sales Platform

Due to changing consumers’ shopping habits, the Group has increased its online sales effort. During the first half of 2014, the Group has conducted online marketing sales events across China with many well known internet portals, including Jia.com, CityTogo.com, Meilele.com, 17house.com, to8to.com, etc. These online sales events allow the Group to reach out to customers, and capture new market shares rapidly. For illustration, regarding the strategic collaboration with Jia.com, the Group planned to set up 11 provincial experience centers across China, of which 5 are already opened and the remaining 6 centers are under renovation. Further, there were a total of 14 marketing sales events with Jia.com during the six months ended 2014, each highly successful with an attendance of over 1,200 people.

Looking ahead, the Group will strive to achieve greater synergic effect between its ceramic tile business and bathroom products business. The Group will also draw on the high-end stylish positioning of Innoci to strengthen its brand recognition and solidify its leading market position in the PRC ceramic tile market. Furthermore, the Group will increase its effort in cross selling, enhance distributor management, improve its product mix and operational efficiency, as well as allocate more resources into the development of online sales channels so as to seize the business opportunities in the online consumer market and create connections between online and offline stores.

Mr. He Xinming, the Chairman of Dongpeng said, “China’s economy is expected to maintain its steady growth in the second half of 2014. In addition, as the home decoration and improvement market has always been less volatile in comparison to the property market, the Group believes that continued urbanization, increasing in per capita disposable income, growing demand for home renovation and upgrading activities will continue to fuel China’s home decoration and renovation market in the second half of 2014. Leveraging on the long-established Dongpeng brand, its outstanding operational, marketing and logistics efficiencies and direct access to the capital market after the IPO, Dongpeng will actively expand its business and optimize nationwide sales network, bringing returns to its shareholders.”

About Dongpeng Holdings Company Limited

Dongpeng Holdings Company Limited is the largest ceramic tile company in China with leading market share in high-end ceramic tiles market in China. Dongpeng designs, develops, produces, markets and sells a wide variety of ceramic tile and bathroom products sunder the “Dongpeng” brand, which has been recognized as the most valuable brand in the industry among China’s 500 Most Valuable Brands by the World Brand Laboratory for eight consecutive years. Dongpeng manages an extensive nationwide sales network 1,825 retail outlets covering over 600 cities across China. Its products are also sold in 66 countries worldwide. Leveraging on its strong innovation and development capabilities, advanced SAP system and extensive nationwide sales network, Dongpeng will continuously strengthen its brand recognition, optimize its sales network, enhance its product mix and expand its bathroom products business, so as to solidify its leading market position.

To see the full version of this release, click here:: http://photos.prnasia.com/prnk/20140827/8521404828-a

Business / FIN / TRA

August 27, 2014

Insurance Segment Taking Shape, Investments Gathering Strengths: Fosun Adheres Comprehensively to the Warren Buffett Model

HONG KONG, Aug. 27, 2014 /PRNewswire/ — Fosun International Limited (together with its subsidiaries, “Fosun” or the “Group”, HKEx stock code: 00656) announces today its interim results for 2014. As at June 30, 2014, net assets attributable to owners of the parent of the Group amounted to RMB43.99 billion, up 11.0% from end-2013. Profit attributable to owners of the parent of the Group amounted to RMB1.83 billion, up 8.4% from the same period of 2013.

Fosun has been persistently making a major stride towards becoming a world-class investment group underpinned by the twin drivers of “insurance-oriented comprehensive financial capability” and “industrial-rooted global investment capability” since the beginning of 2014 to date. Following the completion of the acquisition of the three insurance companies namely Fidelidade, Multicare and Cares under Caixa Seguros e Saude (“CSS”) of Portugal (“Fosun Insurance Portugal”); the successful investment in one of the largest independent private banks in Europe, BHF of Germany; the successful acquisition of the Japanese real estate capital management firm IDERA; and signing of an equity purchase agreement with the US insurance company Ironshore Inc., the Group’s “insurance-oriented comprehensive financial capability” under the twin drivers development model has already taken on firm foothold. Meanwhile, Fosun will continue to leverage and pursue its another driver of “industrial-rooted global investment capability”, seeking to deliver more successful investment cases under the value investing principle.

Insurance funds available for investments close to RMB120 billion

Significant enhancement of Fosun’s “insurance-oriented comprehensive financial capability”

Fosun has always been considering the development of the insurance business as a premium path in connecting its investment capability to long-term high-quality capital. Currently, Fosun’s insurance business comprises over one-third of its total assets. Fosun’s latest investment in insurance business was signing an equity purchase agreement with the US insurance company Ironshore Inc., for acquisition of 20% of its total outstanding ordinary shares (on a fully diluted basis) and to become its largest shareholder. Excluding the investment in Ironshore of which the acquisition has not yet been closed and completed, Fosun’s insurance segment comprises four companies, namely Yong’an P&C Insurance, Pramerica Fosun Life Insurance, Peak Reinsurance and Fosun Insurance Portugal, constituting a comprehensive insurance platform underpinned by property and casualty, life, and re-insurance. Following the successful completion of the Fosun Insurance Portugal acquisition on May 15, 2014, Fosun successfully matched and commenced a total of 14 equity and debt investment projects for Fosun Insurance Portugal, including investments in the Portuguese power grid company Redes Energeticas Nacionais SGPS, S.A. (REN), China’s leading film distributor with an integrated business chain Bona Film Group, etc., aggregating an investment amount of approximately EUR460 million. Leveraging its successful connection to Fosun’s investment capability, the profit attributable to owners of the parent of insurance segment amounted to RMB114.5 million during the first half of 2014, up 19.9% from the same period of 2013, with an investible fund stood at approximately RMB119.06 billion.

Besides investing in the insurance segment, Fosun also extended its footholds to the comprehensive financial area including banking, real estate capital management, securities brokerage and asset management. Fosun succeeded in investing in one of the largest independent private banks in Europe, BHF of Germany in the first half of 2014. For this transaction, Fosun acquired an approximately 19% interest in KBG to secure an indirect ownership of the BHF and the well-established UK private bank with a very long history, Kleinwort Benson, thereby gaining footholds in two big financial hubs, Frankfurt and London. Fosun will capitalize on their connections with billionaires and family enterprises to establish a platform and a network for Fosun’s investment businesses in Europe. It is the first time Fosun holds indirect interests in a private-banking business which will successfully enhance its comprehensive financial capability. In addition, Fosun completed the acquisition of a 98% equity interest in a Japanese real estate capital management firm IDERA. Japan is one of the important markets in the global property investment mix for institutional investors. IDERA will become the most important property investment and management platform in Japan for Fosun. After the IDERA acquisition, the Group can efficiently acquire capital and asset management capability in the Japanese property market. In July 2014, Fosun acquired Hong Kong Hani Securities (It is still waiting for the final approval by the SFC). Hani Securities has licenses including for dealing in securities and assets management. Looking forward, it will help secure a foothold for Fosun in supporting “Shanghai-Hong Kong Stock Connect” and start pursuing differentiated assets management business in Hong Kong, while engaging in further development with Fosun’s other financial platforms.

Investments gathering strengths

Accomplished successful large-scale global value investment cases based on deep industrial footholds in China

During the first half of the year, Fosun sped up establishment of localized investment capabilities in overseas markets. It proactively invested in local platform entities, put together local partner teams in Europe, the US, Japan, Hong Kong, Southeast Asian countries and regions. Ripping benefits from the significant acceleration of globalization of China’s growth momentum, Fosun completed many investments across Asia, Europe and North America. Fosun’s global investment strategies are based on “benefits from China’s growth momentum” to further implement its “industrial-rooted global investment capability”, accomplishing a long list of value investment cases.

On the top of its successful investments in the global leisure resort hotel chain Club Med of France and the Greek renowned fashion retail group Folli Follie, etc., Fosun took its “Combining China’s Growth Momentum with Global Resources” investment model further. Since last year until lately, Fosun and funds under its management invested, respectively, in the US high-end female apparel brand St. John, the premium Italian menswear manufacturer Caruso, the world’s leading medical and cosmetic energy-based device manufacturer Alma Lasers originated in Israel, the largest lifestyle restaurant chain group in Southeast Asia Secret Recipe, a leading German fashion and lifestyle brand TOM TAILOR, as well as a renowned Spanish premium ham, wines and spirits producer Osborne Group. Fosun believes in co-operation with its investees and partners to discover and share investment opportunities brought about by China’s sustaining economic growth.

Fully “Embracing the Mobile Internet”: already become a major “mobile internet“ investor in China

Facing the comprehensive reform brought about by the internet, Fosun proactively implement its “Embracing the Mobile Internet Strategy”. Following the successful investment in Perfect World and completion of the Focus Media privatization, Fosun and funds under its management expanded their mobile internet investments comprehensively in many areas, including the internet medical company Scanadu; the online education companies such as Mofangge, and Uniquedu; the mobile game portal Joyme.com; and the online travel company Lailaihui.com; and Southeast Asia mobile internet company Main Spring, etc. Furthermore, Fosun also invested in high-growth traditional industries ancillary to the internet, including distribution warehousing, freight express, smart logistics systems, etc., such as China Smart Logistics Network (CSN) — “Cainiao”. Fosun and funds under its management also invested in and pushed forward traditional enterprises to innovate and achieve O2O, for example, invested successfully in Ali Small-Loan and participated in its rapid growth. In the first half of 2014, the Group has a total of 18 PE and VC projects in the internet sector, for investment amounts aggregating approximately RMB1.85 billion.

Spearheaded investments in industries associated with middle-class lifestyles

Exponential growth in successful cases of experience-driven consumption and consumption upgrade

China’s middle class population is growing rapidly, and the middle class lifestyles are set to become the major driver of consumption in the country. Fosun is eyeing on investment opportunities brought about by the changing lifestyles of the middle class in China, extending its footholds in experience-driven consumption in tourism and the filming and television entertainment industry, as well as focusing on investments in consumption upgrades, etc.

Fosun further extended its investment footholds in experience-driven consumption in the first half of 2014, initiated at a high starting point in the filming and television entertainment industry by investing in Studio 8, an US Hollywood multi-platform media company; increased its holding in Bona Film Group and became the second largest shareholder; and signed a strategic cooperation agreement with one of China’s largest and strongest modern film groups Shanghai Film Group. For experience-driven tourism consumption investments, besides the investment in China International Travel Services and the increased holding in Shanghai Yuyuan Tourist Mart, Fosun continued to develop the world’s third ultimate high-end hotel and ocean theme park Atlantis Resort along the Haitang Bay National Coast in Sanya, Hainan, with Kerzner Group, while facilitated Club Med’s expansion in China and on the heels of Yabuli and Guilin resorts, Club Med has already beta-launched its third resort in China this year. Meanwhile, Fosun persists in its focus on investments in consumption upgrades. Since the beginning of 2014 to date, Fosun and funds under its management invested in the leading lifestyle restaurant chain group in Southeast Asia Secret Recipe, a renowned Spanish premium ham, wines and spirits producer Osborne Group, a leading German fashion and lifestyle brand TOM TAILOR etc.

Transformation of traditional property businesses: Full landing of “Hive Community”, a PPP urbanization model that pioneered “provision of core urban functions, industry-backed urban development and urban-industry integration“

Implementing the new model of urbanization is a major highlight of the Central Government, and a major driver of the sustaining economic development in China. Hive Community is a product integrated Fosun’s industrial resources to assist local governments in the construction of core urban functions, with a key feature of “industry-backed urban development and urban-industry integration”. Through providing core urban functions required by the cities, Fosun is able to take a lead in introducing its core industrial resources and to further introduce ancillary industries that support the core industries, with a view to promoting “Urban-Industry integration” by establishing a 24-hour plus 3-in-1 vibrant community for work, consumption and living, as well as introducing living and consumption services industries. The Hive Community products, therefore, provide clear and distinctive functions with active dispersal of peripheral services. They also provide adequate and diverse job opportunities (no more dormant cities, ghost cities), seeking to constitute functional communities that drive employment by industries. As such, a new model of communities which is self-sufficient and built with flexible combination of modules comprising different functions are established.

In the first half of 2014, Fosun combined its resources to fully extend property businesses migration, securing a foothold to the “Hive Community” development. Currently, Fosun has been exploring actively in this area with several satisfactory case studies: Financial Hive — BFC on the Bund in Shanghai and Chengdu Financial Hive; Healthcare Hive — Shanghai Starcastle Senior Living community; Culture Hive — Shenyang Yulong City and Dongyang Woodcarving City; Tourism Hive — Atlantis Resort in Hainan; and Logistics Hive — Tian Mao Plaza in Xiangyang and Ankang; comprising GFA aggregating 3.96 million sq.m.

Signficant results from long-term vigilance on and grasping of opportunities from China’s SOE mixed ownership reforms

The Third Plenary Session of the 18th Communist Party of China Central Committee proposed to “actively participate in mixed ownership reforms” which confirmed the overall direction for SOE reforms. Mixed ownership reforms are an important move for China’s further reform and opening up, deepening the SOEs reform and enhancing the state-owned assets management system and the economic system. In the past ten years, Fosun actively invested in 21 SOE restructuring projects in a number of industries, accomplished a base of valuable experiences. To grasp opportunities in history, Fosun has been actively participating in mixed ownership reforms since The Third Plenary Session of the 18th Communist Party, and invested in several leading corporates in China as Sanyuan Food in dairy industry, CNFC Fishery in overseas fishing industry and Zhongshan Public Utilities in professional environmental protection industry. (Sanyuan Food project and CNFC Fishery project are still waiting for final approval by the China Securities Regulatory Commission)

Outlook

Led by a spiritual courage of “Reinitiating two decades of entrepreneurship”, Fosun will follow the trends by combining resources, continue to enhance and implement its twin drivers of “insurance-oriented comprehensive financial capability” and “industrial-rooted global investment capability”, enabling the Group to better and timely grasp the value investing opportunities and making a major stride towards becoming a world-class investment group.

FAS / Fashion / General

August 25, 2014

Natural Beauty Announces 2014 Interim Results

Turnover Rose 22.1% to HK$248.5 Million

Contribution from Higher-margin Products Drove

Gross Margin Improvement

HONG KONG, Aug. 26, 2014 /PRNewswire/ — Natural Beauty Bio-Technology Limited (“Natural Beauty” or the “Group”; Stock Code: 00157), the leading professional skin-care, spa services and beauty training provider in China, announced today its interim results for the six months ended 30 June 2014.

For the six months ended 30 June 2014, turnover of the Group grew 22.1% to HK$248.5 million year-on-year (1H2013: HK$203.6 million), driven by an increase in product sales as a result of higher store productivity in Mainland China and Taiwan. Overall gross profit margin improved to 76.7%, as contribution from higher-margin products increased within the Group’s sales mix during the period (1H2013: 75.9%). Profit for the period amounted to HK$29.7 million for the six months ended 30 June 2014 (1H2013: HK$36.2 million). Earnings per share were 1.48 HK cents (1H2013: 1.81 HK cents). The Board recommended to distribute an interim dividend of 2.1 HK cents per share, equivalent to a dividend payout ratio of 141.5%.

Despite the economic growth slowdown in the Mainland China, turnover in the Mainland China market rose by 25.3% to HK$201.8 million for the six months ended 30 June 2014. The growth was driven by increase in sales of products, mainly due to the pilot-testing of “direct-own retail” management system to exercise better control over franchisees in order to drive higher store productivity. During the first half of 2014, gross margin on product sales was up 2.4 percentage points to 81.2%. Turnover for the Taiwan market also registered growth of 11.7% to HK$44.4 million, as the Group adopted door-by-door management via franchisee differentiation to utilize company resources efficiently. Gross margin on product sales expanded 3.5 percentage points to 82.4%. The gross margin improvement in both Mainland China and Taiwan was a result of higher sales contribution from higher-margin products such as NB-1, and lower promotion discounts during the period under review. On the other hand, sales in other regions, including Hong Kong, Macau and Malaysia, decreased 17.9% to HK$2.3 million for the six months ended 30 June 2014, accounting for an insignificant 0.9% of the Group’s turnover.

The Group derives its income principally from its network of distribution channels, including spas and concessionary counters in department stores. As at 30 June 2014, there were 1,358 spas and 14 concessionary counters. A total of 11 new stores were opened and 72 stores were closed during the six months ended 30 June 2014.

During the period, average sales per store of the Group amounted to HK$179,000 (1H2013: HK$138,000), of which average sales per store in the Mainland China grew 32.6% to HK$183,000, while average sales per store in Taiwan increased by 20.6% to HK$164,000.

The Group puts significant emphasis on research and development which allows it to maintain its competitive edge by continuously improving the quality of its existing products and developing new products. The Group has been collaborating with overseas skin-care companies on technological development, drawing on the experience of its team of experts to continually create high-quality beauty and skin care products. During the six months ended 30 June 2014, nearly 191,395 sets/bottles of the Group’s flagship NB-1 family products were sold with turnover amounting to HK$101.3 million, accounting for more than one-third of the Group’s total product sales during the period. The Group has also collaborated with a leading researcher in the field of human genome and stem cell technology. The stem cell technology is patented in the United States to protect the uniqueness of the NB-1 products.

Ms. Karen Chang, Chief Executive Officer of the Group said, “In 2014, the beauty and personal care sector maintained better than GDP growth and we are pleased to have achieved a much higher growth than the industry. Our growth is mainly attributed to the improved channel quality by implementing ‘direct-own retail’ management methodology to drive much higher door productivity. In order to maintain the encouraging growth momentum, we will strengthen trainings provided to our franchisees to ensure their operational quality. We also rationalize our products lines by relaunching NB-1 Revital products to increase the penetration of home care. We will press on with our prudent growth strategy, and strive to strengthen our position as a leading skin care brand and spa operator in the Greater China Region, so as to generate better returns for our shareholders.”

– End –

About Natural Beauty Bio-Technology Limited

Natural Beauty is a leading beauty and spa services and products provider in Greater China. The Group principally offers tailor-made beauty and skin care solutions through its trained professional beauticians. The Group is engaged in research and development, manufacture and sale of skin care, aroma-therapeutic and beauty products, marketed under the brandname “NB®”. The products are distributed through a distribution network of over 1,300 NB’s SPAs and dedicated counters in Greater China.

Medical

August 22, 2014

PW Medtech 2014 Interim Adjusted Net Profit Surged 53.6% to RMB102.3 Million

HONG KONG, Aug. 22, 2014 /PRNewswire/ — PW Medtech Group Limited (“PW Medtech” or the “Company” and, together with its subsidiaries, the “Group”; stock code: 1358), a leading medical device company in China, today announced its interim results for the six months ended 30 June 2014 (the “period”). Adjusted net profit was approximately RMB102.3 million, representing an increase by 53.6% over the corresponding period in 2013. During the period, gross profit was approximately RMB190.7 million, representing an increase of 29.4% when compared to corresponding period last year. Profit attributable to owners of the Company amounted to approximately RMB84.1million, representing an increase of 68.2% from approximately RMB50.0 million for the corresponding period in 2013.

Financial Highlights	For the year ended June 30 (RMB Million)
Financial Highlights	2014 (Unaudited)	2013 (Unaudited)	Change (%)
Revenue	268.2	218.8	+22.6%
Gross profit	190.7	147.4	+29.4%
Gross profit margin	(71.1%)	(67.4%)	(+3.7pts)
Profit attributable to owners of the Company	84.1	50.0	+68.2%
Adjusted net profit *	102.3	66.6	+53.6%

Note *: To supplement its consolidated financial statements which are presented in accordance with HKFRS, the Group also uses adjusted net profit as an additional financial measure to evaluate the financial performance by eliminating the impact of items that the Group does not consider indicative of the performance of its business. The Group’s adjusted net profit was derived from its net profit for the year excluding share-base compensation expenses, listing-related expenses as well as the expenses incurred in the acquisition of Tianxinfu.

During the period, revenue amounted to RMB268.2 million, representing an increase of 22.6% over the corresponding period last year. The advanced infusion sets business and orthopedic implant maintained growth, providing a stable development for the Group. The two core business of the Group recorded continuous growth. Revenue of advanced infusion sets business and orthopedic implant and were RMB183.9 million and RMB84.3 million respectively, which contributed 68.6% and 31.4% to the Group’s revenue.

Mr. Jiang Liwei, Chief Executive Officer of PW Medtech said, “The continuous process of urbanization, the increasing government investments into public healthcare sector and aging population contributed to growing demand for quality medical services; thus brought significant growth opportunities for China’s medical device industry. As the leading company in orthopedic implant and advanced infusion sets industry, PW Medtech has further expanded its product portfolio and manufacturing capacity, enhanced the innovation and R&D capabilities, extended domestic distribution network and diversified the product line by strategic acquisitions. The Group successfully entered into the biological materials segment and neurosurgery segment, which has massive growth potential and prospects, and therefore created new profit growth drivers.”

Acquisition of Tianxinfu and Enter the Biological Materials Segment and Neurosurgery Segment

In August 2014, the Group’s wholly-owned subsidiaries, Health Forward Holdings Limited and Beijing Fert Technology Co., Ltd., completed the acquisition of the entire equity interest in Beijing Tianxinfu Medical Appliance Co., Ltd. (“Tianxinfu”) with a total consideration of approximately RMB802.6 million. Tianxinfu has become an indirect wholly-owned subsidiary of the Group and contributed its revenue to it. Tianxinfu is a high-tech enterprise integrating R&D production and sales services. Its main products include regenerative medical biological materials and orthopedic implant products. The medical biological material segment is a segment with massive growth potential and prospects in China’s medical device industry. Upon completion of the acquisition, the Group will enter into the biological materials segment and created new profit growth drivers. The Group opt to expand biological material products applications to more area with R&D investment and technological improvement. After the acquisition of Tianxinfu, the Group will obtain huge neurosurgical medical devices segment distribution network in China. Meanwhile, the Group will also further expand the market share through synergy between the Company and Tianxinfu’s R&D, production and distribution capabilities;

Expansion of Product Portfolio

In order to fully seize market opportunities in the advanced infusion set and orthopedic implant markets, the Group continued to broaden the product portfolio by strengthening its R&D efforts and entering into strategic acquisitions.

With regard to the infusion sets business, the Group has been developing a series of advanced infusion set products with new functions and features. In view of delivering safer and improved infusion treatments, the Group plans to enhance the precision filter infusion sets by including more precise filter pore sizes, new features such as precise flow control, automatic air venting, etc. Further, in an effort expand the Group’s non-PVC-infusion set portfolio, improve product features and broaden its applications fields, the Group is currently developing new non-PVC materials, in order to replace the existing PVC-based infusion set.

The orthopedic implant business had seen much progress with the Group’s continued research on perfecting the three main product categories: trauma products, spine products and joint products. For the trauma implants, the Group is seeking to further improve properties of the bridge-link combined fixation system which was commercially launched in July 2012; the spine implants sees the on-going development of the PEEK (polyethereth erketone) fusion cage and vertebro plasty tools. The Group will continue to devise new ideas and develop advanced materials to satisfy varied patient demands for the hip and knee implants.

As for regenerative medical biological materials business, Tianxinfu has been working with large scale Class III hospital to upgrade the current products to develop a series of regenerative medical biological materials products with new applications, functions and features in order to diversify product portfolio.

Emphasis on Innovation and Research and Development

As a leader in development of innovative products, the Group currently possesses an experienced R&D team comprising of approximately 100 members. As at June 30, 2014, the Group has obtained 50 patents, including 25 for infusion set products and 25 for orthopedic implant products, and has applied for 34 patents. The Group will continue to invest in product innovation and R&D in future, and cooperate closely with surgeons, hospitals, university research centers and other research institutions to integrate results from R&D and develop products which meet market demands.

Expansion of Distribution Network

The Group currently has three experienced and dedicated sales and marketing teams to support and consolidate nationwide distribution network and strengthen product promotion. Approximately 50% of the sales and marketing staff who have medical experience; with key salespersons in each business segment have an average of 10 years’ experience in their respective areas. Their experience and expertise helps them to communicate with doctors and nurses in a succinct and effective manner.

In response to the ever-increasing market demand, the Group will make further efforts to develop the sales and marketing teams in order for them to support the Group’s extensive distribution network and, promote the Group’s products and brand name to surgeons, nurses and hospitals. For the Orthopedic Implant Business, the Group will continue to focus on expanding its business at Class 2 hospitals in the second and third tier cities, and concentrate on developing sales and marketing capabilities for the newly acquired joint implant business. In relation to the advanced infusion set business, the Group will focus initially on the Class 3 hospitals in larger-than-average cities in the more developed regions of China, and then penetrate into smaller hospitals and cities.

Increase Production Capacity

In view of the growing potential of the orthopedic implants market in China, the increasing popularity of the advanced infusion sets is now replacing conventional infusion sets. In the next 3-5 years, in addition to expanding the capacity in the existing plants in Beijing, the Group is also planning to make an addition of two manufacturing plants in Linyi (Shandong province) and Pinggu (Beijing) to expand its production capacity for advanced infusion sets. Meanwhile, the Group sets to increase the production capacity of trauma and spine implants of the facility in Tianjin.

Mr. Jiang Liwei, Chief Executive Officer of PW Medtech concluded, “Looking forward, the Group will be seeking to identify fast-growing, high-margin and high-potential opportunities in the medical device industry by utilizing its capabilities on strategic acquisitions; giving support to the rapid business growth and consolidating market leadership in the medical device industry. While maintaining rapid organic growth of the two core business including orthopedic implant and advanced infusion sets segments, the Group will leverage on its outstanding acquisition and integration capability to support sustainable and rapid growth of the Group’s business. It is believed that through continuous effort in enhancing the overall operational efficiency and profitability, the Group will be able to bring satisfactory return to shareholders.”

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140822/8521404726-a

About PW Medtech Group Limited

Listed on the main board of Hong Kong Exchange on 8 November 2013, PW Medtech Group Limited is the leading medical device company in China, focusing on R&D, production and distribution of orthopedic implants and advanced infusion sets products. In August 2014, the Group successfully entered into the biological materials segment through the completion of its acquisition of Beijing Tianxinfu Medical Appliance Co., Ltd. The Group is one of the only two major domestic companies with a full product portfolio of orthopedic implants, as well as among the top advanced infusion sets enterprises in the PRC. The Group manages an extensive nationwide distribution network located across 30 provinces, municipalities and autonomous regions in China.

Issued by Porda Havas International Finance Communications Group for and on behalf of PW Medtech Group Limited.

FOD / Food and Beverage

August 21, 2014

YuanShengTai Dairy Farm Limited Announces 2014 Interim Results, Net Profit Surged 150.1% to RMB249.1 Million

HONG KONG, Aug. 21, 2014 /PRNewswire/ —

Revenue Increased by 44.4% to RMB556.0 Million
Net Profit Surged 150.1% to RMB249.1 Million
Basic Earnings per Share Increased by 61.9%

* * * * * * * * * * *

Continuous Expansion in Overall Herd Size
Increase in Production and Sales Volume
Benefited from Long-term National Policy
Capture Business Development Opportunities

* * * * * * * * * * *

Financial Highlights	For the Year Ended 30 June (RMB MM)
Financial Highlights	2014 (Unaudited)	2013	Changes
Revenue	556.0	385.1	+44.4%
Gross profit	260.6	150.5	+73.2%
Gross profit margin	46.9%	39.1%	+7.8ppt
Net Profit	249.1	99.6	+150.1%
Basic Earnings per Share	6.8 cents	4.2 cents	+61.9%

YuanShengTai Dairy Farm Limited (“YuanShengTai” or the “Company” and, together with its subsidiaries, the “Group”) (Stock Code: 1431), a leading dairy farming company in China, reported a revenue of RMB556.0 million for six month ended 30 June 2014 (the “period”), up 44.4% (1H2013: RMB385.1 million). The increase was attributable to the increase in the production of raw milk while gross profit margin increased by 7.8 percentage points to 46.9% (1H2013: 39.1%). During the period, net profit surged by 150.1% to RMB249.1 million (1H2013: RMB99.6 million) with basic earnings per share of approximately RMB6.8 cents (1H2013: RMB4.2 cents).

During the period, benefited from the rising average price of high-quality raw milk and continuous expansion in overall herd size which led to the increase in production, the Group’s business recorded a significant growth. In 1H2014, the sales volume reached 105,640 tons, representing a strong growth of 24.2% (1H2013: 85,079 tons).

Mr. Zhao Hongliang, Executive Director and Chairman of YuanShengTai, said, “The Chinese government has implemented a number of policies to support the development of large-scale farms at national and regional levels in the first half of 2014, including tax incentive and government subsidy for the reconstruction and expansion of standardized management of large-scale farms, which contributed to the transition from extensive farming to standardized large-scale farming. Benefited from the national policy and the increasing demand for high quality raw milk, we are confident toward the long-term business development of the Group. Looking forward, the Group will capture the opportunities in developing China’s dairy products industry, especially the high-end raw milk industry, to maintain a sustainable business growth. The Group dedicated to becoming a national leading supplier of premium raw milk in order to maximize returns to our shareholders.”

Business Review

As the leading dairy farming company in China, YuanShengTai is dedicated to production and sales of premium raw milk. During the period, the number of dairy cows across all four of YuanShengTai’s dairy farms increased from 40,396 as of 31 December 2013 to 42,836 as of 30 June 2014. The total number of milkable cows increased from 21,544 for 2013 to 24,505 for the first half of 2014. The increase in the number of matured milkable cows in herd has enabled the Group to produce more raw milk. During the period, the average annual milk yield per cow was 9.38 tons, representing an increase of 4.2% (1H2013: 9.0 tons). It is expected that the average milk yield per cow will further increase with the maturity of the farms and a more balanced age group of herd.

Due to the rising demand for high quality raw milk, the average selling price of the Group’s quality raw milk increased 16.3% from RMB4,527 per ton in 1H2013 to RMB5,263 per ton in 1H2014.

During the period, the Group maintained long-term and stable relationships with customers including the four leading dairy products manufacturers in China namely Feihe Dairy Group, Mengniu Group, Bright dairy Group and Yili Group. Feihe and Mengniu have been purchasing premium raw milk from the Group for their production of high-end dairy products since the commencement of the Company.

YuanShengTai has been exploring the development of selenium-rich raw milk with certain research institutions in order to increase the value of the products and thus meet the user’s demand for raw milk with superior quality. The Group will further cooperate with the research institutions, and after satisfaction of relevant tests, the selenium-rich raw milk can be put into commercial production.

Prospects

Looking ahead, the continuous rise in per capita income and consumption levels of residents in the PRC and their growing concerns about health will continue to increase demand for high quality raw milk. The strengthened regulations enforced by relevant regulatory authorities help to promote integration of the industry, and will also be beneficial to the growth of market share for enterprises producing high quality raw milk. Besides, with the Chinese government’s easing measures on the ”One Child Policy”, the space for the development of dairy products industry will be further expanded, creating favorable opportunities for continuous growth of the Group.

With advanced herd management techniques, a large scale of herd, privileged geographic environment and favorable government support policies, the Group will further expand the business scale of its super large dairy farms. The Kedong Yongjin Farm, which will have an actual designed capacity of 12,000 dairy cows, is under construction and will be put into service in the fourth quarter of 2014. The construction of Baiquan Farm, which will have an actual designed capacity of 15,000 dairy cows, is scheduled to commence in the second half of 2014. It is expected to be in service in the fourth quarter of 2015. In addition, the Group is planning to build another three farms in the Songnen Plain in the next three years, two of which will be named the Keshan Farm and the Gannan Farm, with a view to replicating the business model of operating mega scale dairy farm. Among these new farms under construction, some of them will be established as organic dairy farms in the future. As scheduled, the Group will increase its total herd size to 100,000 by 2017. Fueled by the expansion of the Group’s business scale, the milk production and sales volume are anticipated to experience further increase, while the operational efficiency will be improved and the management of dairy farms will be optimized. The Group’s advantage in terms of economies of scale is expected to be consolidated as a result of these favourable developments.

The Group will also explore opportunities to cooperate with overseas suppliers of dairy feed. The technologies of feeding, breeding and producing to improve production efficiency will continue to be enhanced. Meanwhile, the Group will take efforts to expand the business to upstream business through long-term cooperation with local agricultural companies to diversify revenue sources, so as to further strengthen the Group’s position as China’s leading dairy farming company.

－End－

About YuanShengTai Dairy Farm Limited

Listed on 26 November 2013 on the Main Board of the Hong Kong Stock Exchange, YuanShengTai is a leading dairy farming company in China dedicated to the production of super-premium raw milk. The Company ranked No. 5 in China in terms of herd size as of 31 December 2012 and No. 4 in China in terms of raw milk production volume in 2012. The Company operates a total of 4 dairy farms, 3 in Heilongjiang and 1 in Jilin, raising a total of 42,836 dairy cows, with half-year sales volume 105,640 tons of high quality raw milk as of 30 June 2014. The standardized farming methods have enabled the Group to consistently produce raw milk of a quality that surpasses the EU raw milk quality standard, which is among the highest industrial standards for raw milk and other dairy products in the world. In further, YuanShengTai will continue to provide high quality to Chinese consumers through unified farm operations by implementing uniform farm designs and layouts, systematic operating procedures, centralized management functions and automated information systems.

ENT / Fashion / FIN / General / LEI / TRA

August 19, 2014

Galaxy Entertainment Group Reports Record Interim Results in 1H 2014

Record Net Profit Attributable to Shareholders of $6.0 Billion, Up 29% Year-On-Year

Record Group Adjusted EBITDA of $7.3 Billion, Up 26% Year-On-Year

Galaxy Macau™ Phase 2 On Schedule and On Budget to Complete As The Next Major Project in Macau by Mid-2015

Announced Enhanced Employee Benefits for Team Members

Announced $1.3 Billion GEG Charitable Foundation

Announced Another Special Dividend

HONG KONG, Aug. 19, 2014 /PRNewswire/ — Galaxy Entertainment Group Limited (“GEG” or “the Group”) (HKEx stock code: 27) today reported unaudited results for the three and six month periods ended 30 June 2014.

HIGHLIGHTS

GEG: Record Half Year Revenue, Adjusted EBITDA and NPAS

Half year revenue increased 25% year-on-year to $38.4 billion
Half year Adjusted EBITDA of $7.3 billion, up 26% year-on-year
Net profit attributable to shareholders grew 29% year-on-year to $6.0 billion
Second quarter Adjusted EBITDA of $3.5 billion, a year-on-year increase of 15%

Galaxy Macau™: Celebrates its Third Year Anniversary with Another Strong Performance

Half year revenue grew 38% to $25 billion, and Adjusted EBITDA surged 35% to $5.4 billion
Second quarter Adjusted EBITDA of $2.65 billion, grew 27% year-on-year

StarWorld Macau: Solid Half Year Performance Despite Bad Luck

Half year revenue grew 7% year-on-year to $12.3 billion, and Adjusted EBITDA up 9% to $1.9 billion
Second quarter Adjusted EBITDA of $822 million down 7% year-on-year due primarily to the worst VIP luck quarter in history

Development Update: Advancing with Clearly Defined Pipeline

Galaxy Macau™ Phase 2 — Remains on budget and on schedule to complete by mid-2015
Cotai Phases 3 & 4 — Site investigation works for the $50-60 billion resort due to commence later this year
Grand Waldo Complex — Plan to unveil plans in Q4 2014 and re-launching in early 2015
Hengqin Island — Continue to develop conceptual plans for a RMB10 billion resort on the 2.7 sq km land parcel
International — Continuously exploring opportunities in overseas markets primarily in Asia

Balance Sheet: Remains Well Capitalised and Liquid

Cash on hand at 30 June 2014 of $14.4 billion, up from $10.3 billion at 31 December 2013
Gearing ratio remains at zero as at 30 June 2014 with virtually no debt

Subsequent Events: Announced Enhanced Employee Benefits Package, GEG Charitable Foundation and Another Special Dividend

Announced enhanced employee benefits package for all 16,000 Macau general employees in August 2014
Celebrates 10th Anniversary in Macau by announcing the establishment of the $1.3 billion GEG Charitable Foundation on 4 July 2014
Special dividend of $0.70 per share paid to shareholders on 31 July 2014
Another special dividend of $0.45 per share to be paid on or about 31 October 2014

Dr. Lui Che Woo, Chairman of GEG said:

“We celebrated our ten year anniversary in Macau after achieving another half year of record financial results. Our continued success lies in consistently delivering memorable leisure and entertainment experiences to guests through our spectacular high quality resorts and our exemplary ‘World Class, Asian Heart’ service standards.

During the half year we made excellent progress in realising our primary strategic objectives across our flagship properties including enhancing our existing operations as the market evolves and building foundations for the Group’s long term sustainable growth. We are confident that Phases 2, 3 and 4 of GEG on Cotai, re-launching the Grand Waldo Complex, and our conceptual plans for Hengqin Island will enhance Macau’s world-wide reputation as a tourism capital, catalyse our earnings growth and maximise long term shareholder returns.

Reflecting the importance of our strong team and the critical role each and every member plays in our continued success, we recently extended an enhanced employee benefits package for all our 16,000 Macau general team members. These new incentive measures will help the Group to retain and attract high quality talent while maintaining the exemplary ‘World Class, Asian Heart’ service philosophy for which we are renowned.

Also, reflecting the importance we place on giving back to the community, we recently announced the establishment of the $1.3 billion GEG Charitable Foundation that will focus on educating and empowering young people in Macau and on the Mainland. I am deeply excited by this project and hope it can contribute to future stability and prosperity.

And finally on 31 July 2014, we paid a special dividend of $0.70 per share. I am pleased to announce another special dividend of $0.45 per share will be payable on or about 31 October 2014. This reflects our confidence in the outlook for the Group and for Macau.

Once again, I would like to thank every one of our team members in GEG for their commitment and contributions to the Group’s success.”

Market Overview

The Macau gaming market saw healthy growth in the half year as total gaming revenue increased by 13% year-on-year to $187.5 billion. Second quarter revenue grew at a more modest 6% year-on-year, largely as a result of more cautious spending due to a softer economy in China and the distraction of the 2014 FIFA World Cup. However, visitor numbers to Macau jumped 8% to 15.3 million, a faster rate of growth than that achieved in the same period last year. Arrivals from Mainland China now account for 67% of total visitors.

Macau’s growing appeal as a premier holiday destination with a broad array of entertainment and leisure options, was borne out by the higher margin mass segment revenue climbing an impressive 36% to $63.9 billion in the first half of 2014. This structural shift in the market will be sustained by major infrastructure improvement works such as the Guangzhou-Zhuhai Intercity Mass Rapid Transit and the Hong Kong-Zhuhai-Macau Bridge coming on stream in the near future, and increased domestic consumption on the Mainland. Additionally, the transformation of Hengqin Island into a new regional business and leisure hub, with new attractions such as the resort amusement park, will assist in attracting new visitors to the region.

The VIP segment, which accounts for 62% of the total gaming revenue, registered year-on-year growth of 3% to $116.2 billion.

Group Financial Results

Record Group revenue and earnings were achieved in the first half of the year with revenue climbing 25% year-on-year to $38.4 billion and Adjusted EBITDA surging 26% to $7.3 billion. Net profit attributable to shareholders reached an all-time high of $6.0 billion, up 29% year-on-year. The Group’s flagship properties achieved solid half year results, while the Construction Materials Division and City Clubs made solid contributions in line with management expectations.

The Group’s total gaming revenue on a management basis[1] grew 24% year-on-year to $38.2 billion in the first half of 2014 driven by healthy growth in both mass and VIP. Total mass revenue increased 28% year-on-year to $9.9 billion while total VIP revenue grew 24% year-on-year to $27.5 billion.

The Group’s balance sheet at 30 June 2014 remains well capitalised and liquid, with cash on hand of $14.4 billion and net cash of $14.1 billion. GEG reported debt of just $348 million at 30 June 2014.

Group Adjusted EBITDA (HK$’m)

Galaxy Macau™

Galaxy Macau™ celebrated its third year anniversary in May 2014, and remains the key growth driver in the Group. First half revenue increased by 38% to a record $25 billion against the same period last year. Adjusted EBITDA for the same period increased by 35% to a record $5.4 billion. Adjusted EBITDA grew 27% year-on-year to $2.6 billion in the second quarter, down slightly by 5% sequentially as a result of playing unlucky in VIP and lower mass volumes.

Latest twelve months ROI[2] improved from 45% in 1H 2013 to 59% as of 30 June 2014. Adjusted EBITDA margin under HKFRS and US GAAP remained constant year-on-year at 22% and 31%, respectively, at 30 June 2014.

VIP Gaming Performance

Total VIP rolling chip volume for the period was $517 billion, up 49% year-on-year. This translated to revenue of $17 billion, up 44% year-on-year. Second quarter volume of $264 billion was the best on record, 48% higher than the same period last year and up 5% over Q1 2014.

VIP Gaming
HK$’m	Q2 2013	Q1 2014	Q2 2014	QoQ%	YoY%	1H 2013	1H 2014	YoY%
Turnover	178,196	252,834	264,340	5%	48%	346,210	517,174	49%
Net Win	5,965	8,697	8,364	-4%	40%	11,875	17,061	44%
Win %	3.3%	3.4%	3.2%			3.4%	3.3%

Mass Gaming Performance

Revenue in the mass segment was $6.4 billion, up 32% on 1H 2013. Second quarter revenue increased by 19% year-on-year to $3 billion, but dipped 9% sequentially as June and subsequently July were impacted by the FIFA World Cup.

Mass Gaming
HK$’m	Q2 2013	Q1 2014	Q2 2014	QoQ%	YoY%	1H 2013	1H 2014	YoY%
Table Drop	6,845	7,368	6,943	-6%	1%	13,539	14,311	6%
Net Win	2,538	3,331	3,020	-9%	19%	4,799	6,351	32%
Hold %	37.1%	45.2%	43.5%			35.4%	44.4%

Electronic Gaming Performance

Electronic gaming revenue rose 7% year-on-year to $796 million. Second quarter revenue was in line with the same period last year.

Electronic Gaming
HK$’m	Q2 2013	Q1 2014	Q2 2014	QoQ%	YoY%	1H 2013	1H 2014	YoY%
Slots Handle	7,781	8,918	8,823	-1%	13%	13,968	17,741	27%
Net Win	383	412	384	-7%	0.3%	742	796	7%
Hold %	4.9%	4.6%	4.4%			5.3%	4.5%

Non-Gaming Performance

Revenue increased by 3% year-on-year to $744 million. Hotel occupancy on a combined basis at the resort’s three luxury hotels averaged near capacity at 98% for the half year. The property’s diverse and compelling retail, dining and accommodation options continued to attract customers.

StarWorld Macau

StarWorld Macau delivered solid half year results. Revenue increased by 7% year-on-year to $12.3 billion, and Adjusted EBITDA climbed 9% to $1.9 billion. These results were achieved on the back of strong growth in the mass gaming segment, and VIP revenues coming in slightly ahead of the same period last year despite significant bad luck in the second quarter.

Second quarter Adjusted EBITDA was $822 million, down 7% year-on-year due primarily to the worst VIP luck quarter in history. StarWorld Macau reported the latest twelve months ROI[3] of 109% compared to 92% for the same period last year. Adjusted EBITDA margin in the half year was constant at 15% and 25% under HKFRS and under US GAAP, respectively.

VIP Gaming Performance

StarWorld Macau reported 12% year-on-year growth in VIP rolling chip volume to $349 billion in the first six months of 2014, which translated into revenue of $9.8 billion.

Despite enjoying a strong first quarter, demand and win softened in Q2, as weaker economic data out of China affected sentiment and spending, and the property experienced its worst quarterly luck in history with 2.5%.

VIP Gaming
HK$’m	Q2 2013	Q1 2014	Q2 2014	QoQ%	YoY%	1H 2013	1H 2014	YoY%
Turnover	161,913	180,213	168,460	-7%	4%	311,353	348,673	12%
Net Win	4,807	5,556	4,260	-23%	-11%	9,612	9,816	2%
Win %	2.9%	3.1%	2.5%			3.1%	2.8%

Mass Gaming Performance

Mass gaming win in the first half of the year grew by 35% year-on-year to $2.2 billion on table drop of $5.8 billion, up 9% year-on-year.

Mass Gaming
HK$’m	Q2 2013	Q1 2014	Q2 2014	QoQ%	YoY%	1H 2013	1H 2014	YoY%
Table Drop	2,663	2,934	2,874	-2%	8%	5,327	5,808	9%
Net Win	856	1,147	1,094	-5%	28%	1,658	2,241	35%
Hold %	32.2%	38.6%	37.6%			30.9%	38.1%

Electronic Gaming Performance

StarWorld Macau’s electronic gaming generated revenue of $100 million, down 11% on last year as a result of lower hold. Second quarter net win was in line with the same quarter last year, and broadly in line with Q1 2014.

Electronic Gaming
HK$’m	Q2 2013	Q1 2014	Q2 2014	QoQ%	YoY%	1H 2013	1H 2014	YoY%
Slots Handle	777	997	727	-27%	-6%	1,675	1,724	3%
Net Win	48	52	48	-8%	0%	112	100	-11%
Hold %	6.1%	5.2%	6.6%			6.7%	5.8%

Non-Gaming Performance

Non-gaming revenue in the period was $181 million, in line with the same period last year. Hotel room occupancy remained at near capacity throughout the period at 99%. StarWorld Macau continues to be regarded as one of Macau’s preeminent luxury hotels.

City Clubs

City Clubs achieved $92 million of Adjusted EBITDA in the period (1H 2013: $94 million). It continues to perform in line with management expectations.

Construction Materials Division

The Construction Materials Division achieved results in line with the same period last year, delivering revenue of $1 billion and Adjusted EBITDA of $187 million.

Cotai and Hengqin Island Development Update

GEG arguably has the largest and best defined short, medium and long term development pipeline in the Macau gaming market and the global gaming industry.

Short term

Galaxy Macau™ Phase 2 remains on budget and on schedule to complete as Macau’s next major project by mid-2015. We have a significant work force on site completing the building exterior and fitting out the interior.
The Grand Waldo Complex will re-launch in early 2015 following an extensive refit, we will unveil our plans in Q4 2014.

Medium term

Site investigation works for Cotai Phases 3 & 4 are expected to commence later this year. Doubling GEG’s Cotai footprint to 2 million square metres, it will feature thousands of luxury hotel rooms, a state-of-the-art multi-purpose arena and a large convention centre.

Long term

GEG continues to advance its conceptual plans to develop a world class destination resort on a 2.7 square kilometre land parcel on Hengqin Island. The RMB10 billion, low rise, low density resort will complement the Group’s high energy properties located in Macau.

Selected Major Awards

	Award	Presenter
GEG	Best Managed Companies in Asia – Gaming	Euromoney Magazine
	Gaming and Lodging – Best Company	Institutional Investor Magazine – All Asia Executive Team Survey
	Casino Operator of the Year Australia / Asia	International Gaming Awards
Galaxy Macau™	Best Resort of the Year (HK/Macau)	Travel Weekly Magazine and Events Magazine jointly organized – China Travel & Meetings Industry Awards
	Best Service Resort Asia	Golden Horse Award of China Hotel
	Top 10 Resort Hotels of China	China Hotel Starlight Awards
	Best Integrated Resort Brand and Service	Exmoo
	Hurun Report Best of the Best Awards – Luxury Hotel in Macau Star Performer	Hurun Report
StarWorld Macau	Best Service Hotel of the Year	Travel Weekly Magazine and Events Magazine jointly organized – China Travel & Meetings Industry Awards
	Macau Elite Service Hotel Award	Ming Pao Weekly
	Best Service Hotel of Asia	Golden Horse Award of China Hotel
	Top 10 Glamorous Hotels of China	China Hotel Starlight Awards
	Best Hotel Brand and Service	Exmoo

Subsequent Events

Incentivising Employees

Reflecting the importance of our strong team and the critical role each and every member plays in our continued success, we recently extended a new employee benefits package for all our 16,000 Macau general team members. These new incentive measures will help the Group to retain and attract high quality talent while maintaining the exemplary ‘World Class, Asian Heart’ service philosophy for which we are renowned.

Announced $1.3 Billion GEG Charitable Foundation

To celebrate its 10^th year in operation and the 3^rd Anniversary of its flagship property Galaxy Macau™, GEG announced the establishment of the GEG Charitable Foundation on 4 July 2014. The GEG Charitable Foundation reinforces GEG’s commitment to promoting a sustainable future for Macau through sharing its success with the community. The GEG Charitable Foundation will be funded initially with $300 million and a further commitment of another $1 billion later on.

Paid a Special Dividend

A special dividend of $0.70 per share was paid to shareholders on 31 July 2014. This reflects the Group’s significant cash generation ability to simultaneously develop Macau’s largest development pipeline.

Announcement of Another Special Dividend

The Group has substantial cash holdings, virtually no debt and robust cash flows from operations. The development of Galaxy Macau™ Phase 2 remains on budget and on schedule and we have great confidence in the outlook for GEG specifically and Macau in general. Therefore the Board of Directors has decided to announce another special dividend of $0.45 per share, payable on or about 31 October 2014.

Outlook

In the first half of 2014, GEG set new records for revenue and earnings. However, in this period the industry has experienced headwinds such as the FIFA World Cup which occurs once every four years and the soft economic landing in China which impacted customer behaviour. GEG’s management team remains focused on executing the Group’s strategic objectives to ensure long term sustainable growth for decades to come.

GEG is very optimistic about its prospects and those of Macau. The fundamental long term drivers for growth are unchanged, with major infrastructure works and increasing domestic consumption set to drive substantial growth in visitation to Macau in the years ahead. The Group’s track record, exceptional properties, powerful brand, and clear roadmap for short, medium and long term growth, position it well to capture these new visitors and fulfill its core goal of being ‘globally recognised as Asia’s leading gaming and entertainment corporation’.

Notes:

[1] The primary difference between statutory revenue and management basis revenue is the treatment of City Clubs revenue where fee income is reported on a statutory basis and gaming revenue is reported on a management basis.

[2] ROI calculated based on the total Adjusted EBITDA for the latest twelve months divided by gross book value through 30 June 2014 including allocated land cost.

[3] ROI calculated based on the total Adjusted EBITDA for the latest twelve months divided by gross book value through 30 June 2014 including allocated land cost.

About Galaxy Entertainment Group (HKEx stock code: 27)

Galaxy Entertainment Group Limited (“GEG”) is one of Asia’s leading gaming and entertainment corporations, and is a member of the Hang Seng Index.

GEG primarily develops and operates hotels, gaming and integrated resort facilities in Macau, the only legal gaming location in China and the largest gaming entertainment market in the world.

The two flagship properties of GEG include Galaxy Macau™, a world class integrated destination resort opened in May 2011 at Cotai, and StarWorld Macau, an award-winning property opened in 2006 on the Macau peninsula.

In April 2012, GEG announced the development of Galaxy Macau™ Phase 2 that will nearly double the size of the existing resort to one million square metres. Upon its targeted completion by mid-2015, Galaxy Macau™ Phase 2 will bring to Macau some of the most exciting entertainment, leisure, retail and MICE facilities. In December 2012, GEG outlined its concept plans for Phases 3 & 4 of its Cotai landbank and expects to commence site investigation works as early as late 2014.

Recently GEG entered into a framework agreement with the Hengqin Island authority to develop a 2.7 square kilometre land parcel for a world class destination resort in Hengqin Island. This project will complement GEG’s business in Macau and differentiate us from our peers, as well as play a key role in supporting Macau to become a world centre of tourism and leisure.

Additionally, GEG operates a Construction Materials Division.

For more information, please visit www.galaxyentertainment.com.

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140819/8521404648-b

For Media Enquiries:

Galaxy Entertainment Group

Mr. Peter J. Caveny
Vice President, Investor Relations
Tel: +852-3150-1111
Email: ir@galaxyentertainment.com

Ms. Yoko Ku
Manager, Investor Relations
Tel: +852-3150-1111
Email: ir@galaxyentertainment.com

Photo – http://photos.prnasia.com/prnh/20140819/8521404648-a

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