Acquisitions at CK Life boost profit fourfold
CK Life Sciences International (Holdings), the biotechnology arm of property developer Cheung Kong (Holdings), yesterday said half-year net profit jumped 349 per cent, fuelled by two newly acquired health product companies.
CK Life said net profit for the six months to June reached HK$14.8 million, compared with HK$3.3 million a year ago.
Revenue surged more than 300 per cent to HK$922.15 million.
While investment gain was the main profit driver for the company in recent years, CK Life said growth in revenue and profit in the first half was driven by sales of health products after a couple of major purchases.
Last year it bought Sante Naturelle, Canada's fifth-largest seller of natural health products, for HK$347 million.
CK Life chairman Victor Li Tzar-kuoi, who owns 44 per cent of the firm, said his company planned to launch the Sante Naturelle products in Asia and Europe. He did not give a timetable.
The company also spent HK$1.29 billion to buy 80 per cent of US-based nutritional supplement maker Vitaquest International Holdings in February, its largest purchase since 2002.
The new units boosted profit from health products to HK$80.5 million on sales of HK$617.3 million in the first half compared with a HK$9.1 million net loss on sales of HK$21.4 million a year ago.
Net loss from its agricultural business shrank to HK$1.99 million from HK$19 million. Net profit from investment dropped to HK$18.1 million from HK$101.9 million.
CK Life's shares, traded on the Growth Enterprise Market, rose 1.49 per cent yesterday to close at 68 HK cents, trimming the year's loss to 18.7 per cent.