30th Jan 2009 09:54
MEDILINK-GLOBAL UK LIMITED
("MediLink") or (the "Company")
Contract gains in China and Trading Update
MediLink-Global UK Limited, the electronic health card network service provider, is pleased to announce that it has signed two new Third Party Administrator contracts; one with a major Chinese insurance company, PICC Health Insurance ("PICC"), and another with a non-Chinese domiciled Insurance company, LAMP Insurance Company Limited ("LAMP"). The board is also pleased to provide an update on trading.
PICC was the first Chinese professional health insurance company approved by the State Council and the China Insurance Regulatory Commission. PICC was established in 2004 and in 2008 delivered annual premium income of more than 10 billion Renminbi (approximately GBP 1 billion). The contract with PICC will run for three years from November 2008 with an automatic renewal clause for a further three years.
LAMP is a Gibraltar based insurer underwriting international insurance products. Under the Third Party Administrator agreement ("TPA") MediLink will facilitate the policy holders of LAMP residing in China who may seek healthcare services at the domestic healthcare facilities.
MedilLink is optimistic that it will generate good fee income from these TPA service agreements.
Update on trading
MediLink has acquired the complete network of 1,963 electronic data capture ("EDC") terminals it uses in GP clinics in Malaysia. The terminals have been acquired from the company from which MediLink was leasing them in an agreement that included the provision for a guaranteed minimum of EDC terminal rentals and transaction volumes. The cost of the acquisition of the EDC terminals, including the cost of software re-commissioning, is Ringgit1,209,810 (approximately £226,000) compared with the guaranteed annual minimum rental previously payable of Ringgit 910,680 (approximately £170,000), resulting in an annual operating saving, after providing for depreciation, of Ringgit 507,410 (approximately £95,000). The estimated useful life of the terminals is at least three years.
MediLink also announces its intention to acquire new EDC terminals directly from manufacturers avoiding some associated distribution costs, for the benefit of an improved equipment procurement price that can directly contribute to cost savings in rolling out a more extensive electronic healthcare providers network in Asia in the near future. The Company has already taken delivery of 208 new terminals for use in Thailand, and a further 292 units are due to be delivered in February 2009 for the Malaysian and Singapore markets.
MediLink announces that Group trading is in line with the Directors' and market's expectations.
Shia Kok Fat, CEO of MediLink, commented "As highlighted on our admission to AIM, growth in China is an integral part of Medilink's strategy. I am delighted to report on these new TPA contracts which will strengthen our presence in such a vast market. We look forward to announcing further progress as we seek to capitalise on the increase in private spending within the Chinese healthcare market. In other trading I am also very pleased that we will be saving money going forward on our network of EDC terminals in Malaysia buying them directly from the manufacturer."
END
Enquiries
MediLink-Global UK Limited
Shia Kok Fat, Chief Executive Officer
00 603 2296 3028
Nominated Adviser
Dowgate Capital Advisers Limited
Liam Murray
020 7492 4777
Broker
SVS Securities Plc
Ian Callaway, Head of Corporate Broking
020 7382 2870
Financial Public Relations
Parkgreen Communications Limited
Ben Knowles
020 7933 8780
Mob. 07900 346 978
Related Shares:
MEDI.L