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CHINDEX
INTERNATIONAL, INC.
ANNOUNCES
CLOSING OF RETAIL PHARMACY DISTRIBUTION BUSINESS
In
Order to Focus On Profitable Business Segments |
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BETHESDA,
MARYLAND - November 23, 2005 -
Chindex International, Inc. (NASDAQ: CHDX), an independent American
provider of Western healthcare products and medical services in the
People's Republic of China, today announced that it intends to close
down its retail pharmacy distribution business so that it can concentrate
on its core businesses of health care services and medical equipment
distribution. The close down process is expected to be substantially
completed by December 31, 2005 .
Roberta
Lipson, Chindex CEO, said: "The retail products distribution business
model has not proven to be a good producer for our company. It has
not contributed to the bottom line and has consumed cash. Although
we had an enviable national distribution platform, the margin structure
of distributing on behalf of other companies did not allow for a sustainable
business and we have found that developing and rolling out our own
national brands required more cash than we had anticipated. We do
plan however, to retain a logistics capability to service the distribution
needs of our ongoing businesses in both the Healthcare Services and
Medical Capital Equipment segments.
"This
necessary and forward looking step will ease the strain on cash flow
and stop the drain from the bottom line. It will also allow management
to focus management and other resources on our company's profitable
and growing businesses in health care services and medical equipment
distribution."
Chindex
is an American healthcare company which owns and operates the only
foreign invested and managed international standard hospitals and
affiliated ambulatory clinics in the People's Republic of China serving
both International and Chinese patients with premium quality and service.
The
company also distributes medical equipment in the Chinese marketplace,
including Hong Kong. It sells medical equipment produced by a number
of major multinational companies including Siemens AG as its exclusive
distribution partner for the sales and servicing of color doppler
ultrasound systems. It also arranges financing packages for the supply
of medical equipment to hospitals in China utilizing the export loan
and loan guarantee programs of both the U.S. Export-Import Bank and
the German KfW Development Bank. It provides healthcare services through
the operations of its network of private primary care hospitals and
affiliated ambulatory clinics in China . With twenty-four years of
experience, over 1,000 employees, and operations in the United States
, China and Hong Kong , the Company's strategy is to expand its cross-cultural
reach by providing leading edge healthcare technologies, quality products
and services to Greater China's professional communities. Further
company information may be found at the Company's websites, www.chindex.com
and www.unitedfamilyhospitals.com
.
Some
of the information in this press release may contain statements regarding
future expectations, plans, prospects for performance of the Company
that constitute forward-looking statements for purposes of the safe
harbor provisions of The Private Securities Litigation Reform Act
of 1995. The Company cannot guarantee future results, levels of activity,
performance or achievements. The numbers discussed in this press release
also involve risks and uncertainties. The following factors, among
others, could cause actual results to differ materially from those
described by such statements: our ability to realize financial or
other benefits, including cost savings, from the discontinuation of
our retail pharmacy distribution operations, our ability to manage
our growth and maintain adequate controls, our ability to obtain additional
financing, the loss of services of key personnel, general market conditions
including inflation or foreign currency fluctuations, our dependence
on relationships with suppliers, the timing of our revenues and fluctuations
in financial performance, the availability to our customers of third-party
financings, product liability claims and product recalls, competition,
hiring and retaining qualified sales and service personnel, management
of inventory, relations with foreign trade corporations, dependence
on sub-distributors and dealers, completion and opening of healthcare
facilities, attracting and retaining qualified physicians and other
hospital personnel, regulatory compliance, the cost of malpractice,
our dependence on our information systems, the economic policies of
the Chinese government, the newness and undeveloped nature of the
Chinese legal system, the regulation of the conversion of Chinese
currency, future epidemics in China such as SARS or Avian Flu, the
control over our operation by insiders, continuity of relationships
and variability of financial margins with existing suppliers, our
liquidity and availability of capital resources to meet cash requirements,
including capital expenditures, bid and performance bonds, and those
other factors contained in the section titled "Risk Factors" as set
forth in the Company's Registration Statement (File No. 333-114996)
filed with the Securities and Exchange Commission, as well as other
documents that may be filed by the Company from time to time with
the Securities and Exchange Commission. The forward-looking statements
and numbers contained herein represent the judgment of the Company,
as of the date of this press release, and the Company disclaims any
intent or obligation to update such forward-looking statements to
reflect any change in the Company's expectations with regard thereto
or any change in events, conditions, circumstances on which such statements
are based.
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