CK Life Sciences steps up expansion drive
CK Life Sciences International (Holdings), the biotechnology arm of Cheung Kong (Holdings), expects further expansion through imminent acquisitions after reporting a 77 per cent rise in net profit to $1.29 million in the first nine months of this year.
The Growth Enterprise Market-listed company painted a rosy picture, with chairman Victor Li Tzar-kuoi saying future growth would be achieved partly by acquisitions and matured research projects.
'Negotiations are in progress with several potential acquisition targets and it is anticipated that further corporate expansion will be realised in the near future,' he said in a statement without elaborating on the potential acquisitions.
During the nine months to September 30, strong sales of eco-food and organic products provided the impetus for CK Life Sciences' profitability.
Sales of the company's fertiliser division were up sevenfold from the same period last year.
Earnings per share were 75.43 per cent higher at two cents, but the company proposed no dividends.
Staff costs jumped 16.48 per cent to $99.29 million in the first nine months of the year.
The company enjoyed the fruits of investments, which grew 24 per cent to $54.6 million in the third quarter and 6 per cent to $154.78 million for the January to September period.
Sales revenue rose to $102.36 million from $19.62 million in the same period last year.
Operating profit rose to $3.94 million from $572,000.
Mr Li said the substantial investment proceeds and growing sales revenue were enough to support the company's research projects and initiatives.
He added that some research initiatives had reached a mature stage.