IKang Healthcare Reports Higher Revenue, Income
The Beijing-based company said its revenue for the three months reached $150.2 million compared with $115.6 million last year.
IKang Healthcare Group Inc., a large provider of healthcare services in China, announced its earnings for first fiscal quarter today, reporting that revenue jumped 30 percent compared with a year ago while net income nearly doubled.
The Beijing-based company (Nasdaq: KANG) said its revenue for the three months ended June 30 reached $150.2 million compared with $115.6 million last year. Net income attributable to iKang Healthcare reached $6.3 million, or 9 cents per American depositary share, compared with $3.6 million, or 5 cents per ADS, a year ago.
"The results of our performance for this quarter reflected the strong market demand as well as the success we have with our broad and increasingly integrated services portfolio," Lee Ligang Zhang, the company's chairman and chief executive officer, said in a statement. ""We believe that iKang is well positioned to execute against the opportunity in the private preventive healthcare market."
Shares in the company closed at $17.15 per ADS today, up 46 cents.
Today's announcement, which came after the markets closed in New York, followed an announcement Wednesday that the cmopany's previously announced buyout agreement would not be completed by today's deadline, and instead, would be extended until the end of October.
The company explained the agreement could not proceed if shareholders with more than 15 percent of the stock objected to the deal. Without providing details, the company said the conditions for closing the deal had not been met.
The company cautioned that there was "no indication or assurance" at this time that the merger would be completed.
Under the terms of its original deal, announced March 26, iKang said it had agreed to go private through a merger that offered $20.60 per American depositary share for the Beijing-based company.
With 115 company-owned operating medical centers, covering 33 of China's largest cities, iKang provides medical exams, disease screening, and dental services through both corporate and individual programs. It also operates in more than 200 cities by contracting with over 400 third-party facilities. For the year ended March 31, iKang had 1.7 million customer visits in the latest quarter, an increase of more than 19 percent year-over-year.