Cheung Kong Life Sciences International (CK Life Sciences), the bio-tech arm of Hong Kong conglomerate Cheung Kong Holdings, has turned into black in 2005 by earning HK$12.23 million in net profit.

That compared to about HK$4 million net loss over 2004.

CK Life Sciences Chairman Victor Li, the eldest son of tycoon Li Ka-shing, attributed the result to the company's overseas expedition and expansion.

"Over the past few years, we endeavored to seek opportunities for growth," said Li.

"The company is eyeing overseas acquisitions. We will continue to increase our presence in the regions of North America, Europe and Asia," Li added.

"We have a couple of early-acquired projects, which have mutually developed."

Li stressed that the company would increase its pace to strengthen its scientific research platform and speed up the efforts on overseas acquisitions.

"We will keep on rolling out our new products to the market and collaborate with our partners to explore overseas," said Li.

The company's sale income recorded a 2.35 times leap, equivalent to HK$542.5 million.

However, the investment income backslid by 10 per cent year-on-year to HK$152 million, which netted the total income into HK$694 million, representing a 111 per cent increase.

The EPS (earning per share) was HK$0.19. No final dividend was declared.

"The expenditure on research and development totalled HK$94.3 million last year," added Li.

The company spent HK$513 million to acquire three overseas companies, including two Australian horticulture companies Envirogreen Pty Ltd and Nuturf Australia Pty Ltd and one Canadian company Development Sante Naturella AS Ltee.

By the end of 2005, the company's total assets amounted to HK$3.681 billion.

At the same time, the company has a debt totalling HK$897 million, of which HK$554.3 million was bank loans.

The gearing ratio increased from 4 to 20 per cent.

CK Life Sciences spent HK$1.3 billion to purchase 80 per cent stakes of Vitaquest, a leading manufacturer in branded nutritional product in the United States.

(HK Edition 03/18/2006 page3)