|Title||CHA Biotech announced its financial results for the first quarter ended March 31, 2017|
| - Consolidated First 3 Months Financial Results (Jan. 1, 2017 – Mar 31, 2017):
(1) Consolidated sales revenue of 1Q 2017 amounted to KRW 93 billion, a decrease of 14% from the same period last year.
(2) Consolidated operating loss of 1Q 2017 amounted to KRW 2.7 billion, turned into deficit.
(3) Consolidated net loss of 1Q 2017 amounted to KRW 3.2 billion, turned into deficit.
- The main reason for decline in both operating profit and net profit was because the QAF was not recognized in the sales revenue of 1Q 2017. The QAF is one of main sources of revenue generated by CHA Healthcare’s US Hospital called CHA Hollywood Presbyterian Medical Center.
-Hospital Quality Assurance Fee(HQAF) is a fee that is imposed on certain general acute care hospitals in order to make supplemental and grant payments and increased capitation payments to hospitals up to the aggregate upper payment limit as mandated by current and past Assembly and Senate Bills. The 5th QAF program period covers Jan. 1, 2017 through June 30, 2019.
- CHA Biotech looks forward to receive QAF approval from Centers for Medicare and Medicaid Services(CMS) in the 2nd half of this year.
- The rest of subsidiaries in Korea recorded improvements in financial performance (an increase of 13% from the same period last year) and especially CHA Biotech recorded separate sales revenue amounted to KRW 5.2 billion, an increase of 22% from the same period last year.