Lianluo Smart Limited (NASDAQ:LLIT)

BEIJING, August 22, 2016 /PRNewswire/ -- Dehaier Medical Systems Ltd. (Nasdaq: DHRM) ("Dehaier Medical" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China and international markets, today announced that the Company has completed its final closing under $20 million strategic financing with Hangzhou Liaison Interactive Information Technology Co. Ltd. ("Liaison Interactive" or the "Purchaser"), a publicly listed company on the Shenzhen Stock Exchange (Trading Ticker: 002280).

Pursuant to the Share Purchase Agreement (the "Agreement"), the Company sold 11,111,111 restricted common shares for a purchase price of US$1.80 per share for an aggregate of US$20,000,000 to Liaison Interactive. Liaison Interactive and its designees will also receive warrants to purchase 1,000,000 restricted common shares of the Company at a purchase price of US$2.20 per share. Dehaier Medical previously announced the sale of 620,414 shares on June 6, 2016. The final closing involved the sale of 10,490,697 shares. The investment funds after deducting fees and expenses (including expenses associated with the repurchase of certain outstanding warrants held by third parties) will be used for the development and marketing of Dehaier Medical wearable sleep apnea products business, and potential mergers and acquisitions. The Liaison Interactive investment will dramatically improve the Company's ability to expand wearable medical device business and to launch other new smart wearable devices and mobile medical solutions over the next few years. It is an important step in the strategic transformation of the Company. After this investment, the company expects a more interactive and solid relationship with Liaison Interactive that will leverage Liaison's resources, promote the development of Dehaier Medical's intelligent medical business, accelerate the Company's industrial layout on intelligence medical market, and further optimize Dehaier's overall business strategies to increase market penetration and acceptance. Through this investment, Liaison Interactive will benefit from Dehaier Medical's access to the medical intelligent hardware market, expanding its intelligent hardware expertise.

BEIJING, June 24, 2016 /PRNewswire/ -- Dehaier Medical Systems Ltd. (DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China, signed a strategic cooperation agreement with Hongyuan Supply Chain Management Co., Ltd. (hereinafter referred to as "Hongyuan Supply Chain") on June 20, 2016, to develop Dehaier's new Internet medical technology business.

Under the strategic cooperation agreement, Dehaier will leverage Hongyuan Supply Chain's sales platform to reach Dehaier's dealers and end users more efficiently, selling Dehaier's wearable sleep apnea diagnostic system medical devices to Hongyuan Supply Chain for further downchain sale and distribution.

Mr. Ping Chen, Chief Executive Officer of Dehaier, commented, "We are excited to cooperate with Hongyuan Supply Chain and believe the combination of Dehaier's smart health products and services and Hongyuan Supply Chain's modern logistics network supply chain system will speed our transformation from our past focus in the traditional medical equipment industry to emerging Internet smart wearable medical testing, treatment, family self-evaluation field, thereby improving our competitive edge in the medical industry. We expect the sleep apnea business will continue to consolidate, and we have targeted more than 1,000 domestic 3A public hospitals, mainstream market-based private medical clinics, VIP clients of insurance companies and nationwide old-age health services organizations. In the future, we plan to grow our sleep apnea business to cover a growing customer base and to focus on improving our planning, procurement, manufacturing, marketing, logistics and technical services efficiency. Hongyuan Supply Chain is a management platform to provide supply chain services to its upstream and downstream customers as the core of business. We believe Hongyuan Holdings' solid financial strength and good credit, together with Hongyuan Supply Chain's strong logistics network channels and resources will provide Dehaier an excellent opportunity to increase its distribution capabilities efficiently. Meanwhile, Hongyuan Supply Chain will rely on its strong logistics network channels and resources, in close cooperation with Dehaier, to open its business area of intelligent medical products business and create a diversified supply chain business system. "

BEIJING, May 23, 2016 /PRNewswire/ -- Dehaier Medical Systems Ltd. (DHRM) ("Dehaier Medical" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China and international markets, today announced that on May 18, 2016, the Listing Qualifications department of the Nasdaq Stock Market ("Nasdaq") sent the Company a notification letter (the "Nasdaq Letter") indicating that, as a result of the Company's failure to file its annual report on Form 20-F for the year ended December 31, 2015, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the "Rule"), which requires timely filing of periodic reports with the Securities and Exchange Commission.

The letter further states that the Company has 60 calendar days (until July 18, 2016) to submit a plan to Nasdaq setting forth how the Company plans to regain compliance with the Rule. If the Company is unable to file the Form 20-F by July 18, 2016, then the Company intends to submit a compliance plan on or prior to that date.

If the Company needs to submit a compliance plan and Nasdaq accepts the plan, Nasdaq can grant an exception of up to 180 calendar days from the filing's due date, or until November 14, 2016 to regain compliance. If Nasdaq does not accept our plan, the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel.

Nasdaq Listing Rule 5810(b) requires that the Company promptly disclose receipt of the Nasdaq Letter and must include the continued listing criteria that the Company failed to meet. The Company is issuing this press release to satisfy Nasdaq's disclosure requirement.

BEIJING, April 8, 2016 /PRNewswire/ -- Dehaier Medical Systems Ltd. (Nasdaq: DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China and international markets, today announced its selected preliminary, unaudited results for the fiscal year ended December 31, 2015.

For the year ended December 31, 2015, Dehaier expects to report revenues from the continuing operation of approximately $1.32 million, representing a year-over-year decrease of approximately 67.6%.This decrease in revenue was mainly due to weak sales both in our sleep respiratory business and in our traditional medical devices business.

Dehaier expects gross loss from the continuing operation of approximately $58K, compared to gross profit of $1.1 million in 2014. The Company expects gross margin to be approximately negative 4.4%, decreased from positive 27% for the year ended December 31, 2014. This gross loss was attributable to the substantially lower revenues, which exceeded even the lower fixed costs allocated to the continued business lines. Due to such decreased revenues, fixed costs constituted a proportionately larger percentage of revenues.

For the year ended December 31, 2015, Dehaier expects to realize an operating loss of around $18.57 million, compared to operating loss of $2.36 million for the year ended December 31, 2014. This was mainly due to the gross loss combined with higher than expected: 1) SG&A expenses which was mainly due to more resources invested on market expansion for sleep respiratory business; 2) R&D expenses in upgrading the sleep respiratory software, hardware and in cardiopulmonary resuscitation ("CPR") instruments; 3) provision for doubtful accounts, which resulted from some uncollectable accounts receivable in product quality guarantees and maintenance deposits and the loss of non-refundable prepayments to the suppliers when we determined to decrease purchases of raw materials for which we had already made deposits; 4) impairment of long-lived assets, which was mainly due to expenses incurred by the first batch of sleep respiratory products used by hospitals for free testing and 5) asset losses for disposal which was mainly due to the losses from disposal of devices that did not meet our quality control standards. These factors were particularly significant in the last half of 2015.

As a result of the foregoing, Dehaier expects net loss from continuing operations of approximately $18.11 million in 2015.

In order to deal with the increasingly challenging markets and new competitors, the Company discontinued some traditional medical device business lines in 2015 and Dehaier expects net loss from discontinuing operations of approximately $18.38 million in 2015.

Based on the estimated full-year revenues, the company anticipates net loss attributable to Dehaier from both continuing and discontinuing operations to be approximately $35.96 million, or fully diluted loss per share of $6.13, compared to net income of $1 million, or $0.18 per diluted share a year ago. This substantial loss resulted from gross loss and negative leverage, combined with higher than expected operating costs off of a weak revenue base. As we determined to discontinue several parts of our business in the second half of the year, our losses for the full year accelerated compared to the first half of the year.

Mr. Ping Chen, Dehaier's Chief Executive Officer, commented, "During 2015, we continued to strategically reduce our sales of traditional medical equipment, and to complete our shift to medical products and service based on mobile internet technology."

"Specifically, we continued scaling down and discontinuing, as appropriate, the unprofitable medical device businesses, including assembly and sales of mobile C-arm X-ray machines, anesthesia machines, Oxygen generator, the first generation ventilator, monitoring devices, general medical products and telemedicine products. Accordingly, the Company wrote down the carrying value of the assets associated with the discontinued product lines and besides sleep respiratory business and hospital wireless solutions, the Company plans to maintain only a few profitable traditional medical device businesses, such as sales of its patented products including medical air compressors and CPR instruments, the second generation ventilator, color Doppler imaging machine, laryngoscope, and common products.

"Our corporate and business restructuring plan aims to concentrate the Company's resources to develop its mobile health business, including wearable sleep respiratory business and to focus more on its major businesses. We believe these changes are crucial to improve our competitiveness over the longer term. By restructuring our Company to reduce our reliance on our less profitable medical devices assembly and distribution businesses, we will be more able to leverage our resources to develop smart health products and services, which we see as the future of our Company," concluded Mr. Chen.

The Company expects to announce its final fiscal year financial and operating results by the end of April 2016 and will provide additional information and comments.

All figures in this release remain subject to the completion of normal year-end accounting procedures and adjustments, which could result in changes to these preliminary results.

BEIJING, December 3, 2015 /PRNewswire/ -- Dehaier Medical Systems Ltd. (Nasdaq: DHRM) ("Dehaier Medical" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China and international markets, today announced that its board of directors (the "Board") has formed a special committee (the "Special Committee") to consider the previously filed non-binding investment proposal letter that the Board received from Hangzhou Liaison Interactive Information Technology Co. Ltd. ("Liaison Interactive"), a publicly listed company on the Shenzhen Stock Exchange (Trading Ticker: 002280) on December 1, 2015. In that proposal, the Liaison Interactive stated that it proposes to make an equity investment in Dehaier Medical in an aggregate amount of US$20 million, subscribing for 10 million newly issued common shares of the Company for $2.00 per share.

No member of the Board has an interest in the proposal. Moreover, the Special Committee consists of three independent directors of the Company, Mr. Mingwei Zhang, Dr. Genghui Chen and Mr. Xiaoguang Shen with Mr. Mingwei Zhang acting as the chair of the Special Committee. The Special Committee intends to retain independent legal and financial advisors to assist it in its process.

The Board cautions the Company's stockholders and others considering trading in its securities that the Board just received the non-binding proposal letter from Liaison Interactive and no decisions have been made with respect to the transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable laws.

BEIJING, October 26, 2015 /PRNewswire/ -- Dehaier Medical Systems Ltd. (Nasdaq: DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China and international markets, today announced that it has been awarded a medical equipment procurement agreement from China's Health & Anti-Poverty Program Committee ("HAPP Committee"). According to the agreement, Dehaier will provide anesthesia equipment systems, mobile C-Arm X-Ray machines and medical molecular sieve oxygen generators to hospitals that are financed by the HAPP.

The HAPP is an aid program initiated by China Primary Healthcare Foundation and Chinese Red Cross Foundation in 2002. The program is aimed at aiding institutions of basic level medical services with medical equipment and aimed at improving medical infrastructure of essential, rural and poverty areas. By the end of 2013, the Program including "Essential Medical Infrastructure Construction Project", "Disease Prevention Project in Social Communities" and "Training Project of Healthcare Practitioners" was implemented in 32 provinces, autonomous regions, municipalities, 200 cities and 1000 counties across China, benefiting approximately 150 million people, with an economic impact of approximately RMB 3 billion.

"We are pleased to be chosen as qualified equipment and service provider of the HAPP. Since this year, we have furthered our business model transformation and we are continuing diversify our cooperation with key account customers. We primarily focus on state-level and other large-scale procurement projects to foster and develop business with emerging clients with significant purchasing power. Dehaier believes its commitment to exceeding customer expectations and developing long-term and reliable relationships with leading Chinese medical institutions have made Dehaier successful in winning large projects like this new one with HAPP," said Mr. Ping Chen, CEO of Dehaier. "The time and resources we have devoted to our key account team have paid off for Dehaier. As China keeps found allocation in construction of healthcare infrastructure, Dehaier will continue to leverage its experience and resources to grow with the industry."

BEIJING, October 19, 2015 /PRNewswire/ -- Dehaier Medical Systems Ltd. (Nasdaq: DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China, today announced that it has won a medical device distribution bid for a new rural healthcare construction project supported by China Development Bank Corp ("CDB"). According to the agreement, Dehaier will provide its proprietary C-arm X-Ray machine and defibrillator monitor to Dongsheng Hospital of Ordos, Inner Mongolia. The procurement project is funded by CDB, one of China's three national policy banks.

In conjunction with Chinese State Council's "Agriculture, Farmer and Village" policy, which is aimed at improving rural living conditions, CDB has earmarked approximately $1.5 billion in loans each year since 2007 for the implementation of national rural healthcare initiatives and the upgrade of medical institutions in nearly 2,900 counties, cities and districts across China. A key objective of this project is the development of new medical facilities in areas lacking adequate healthcare infrastructure.

"We are pleased to be awarded this procurement project funded by CDB, which has been a major part of our key account procurement business. The continued development of China's healthcare system is critical to our country's future, and we believe that this program is an important step forward," said Mr. Ping Chen, CEO of Dehaier. "China's government has placed a major emphasis on the improvement of rural healthcare infrastructure through the establishment of basic medical facilities in each county and township, creating a tremendous growth opportunity in rural China. Our portfolio includes our patented and distributed high quality products at a variety of price points, including products that fit project requirements for smaller facilities that are found in rural areas. We are confident that these government policies and nationwide programs will help create new opportunities for Dehaier to grow sales as we work to expand our business and deliver our healthcare solutions across China."

BEIJING, Sept. 02, 2015 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China, today announced that it has showcased its wearable sleep respiratory product and solution at two premier sleep respiratory conferences, including: 1) the 4th National Sleep Respiratory Conference (the �NSRC�) which took place in Shanghai; and 2) the 2nd Sleep Medicine Annual Conference (the �SMAC�) which took place in Qingdao City, Shandong Province.

Sponsored by the Chinese Medical Association and Chinese Medical Doctor Association, respectively, the NSRC and SMAC are among the most influential gatherings of researchers and practitioners in the field of sleep and respiratory care. This year, hundreds of attendees drawn from leading hospitals, businesses, government, and academia attended the two conferences. Philips Respironics, ResMed, and Fisher & Paykel Healthcare are among global sleep and respiratory market leaders who also participated in the two conferences.

Sleep and respiratory experts who attended the two conferences gave positive reviews to the Company�s wearable sleep respiratory product and solution for its improved efficiency and comparable accuracy versus alternative OSAS diagnosis device such as PSG. Additionally, the importance of interdisciplinary research and interdisciplinary clinic practice in advancing sleep and respiratory care was discussed at both conferences with experts and industry practitioners calling for concerted effort across different organizations as well as different departments (e.g., cardiology, neurology, endocrinology, sleep, and respiratory care, etc.) within the same hospital.

Ms. Reyna Dong, Marketing Director of Dehaier's Sleep Respiratory Products Division stated, "The NSRC and SMAC conferences provided great venue for us to raise the awareness of our wearable sleep respiratory product and solution among respiratory care and sleep professionals whose academic authority and influence can help facilitate our market development. While we are encouraged by the market reception, we plan to further our sales and marketing efforts in coming quarters, through participation in similar conferences as well as cooperation with distributors, sales agents, leading hospitals, physical examination centers and research institutions.�

BEIJING, May 21, 2015 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China, today announced that the Company has secured a short-term line of credit with the Beijing branch of Nanjing Bank Company Limited ("Nanjing Bank") for up to RMB15 million (~$2.43 million), bearing a fixed rate of 7.8% per annum. The line of credit will be available for use as needed for general corporate purposes.

"This line of credit gives us greater flexibility to withstand challenging market conditions and carry out our capital and operating plan for calendar year 2015. As we continue to transform our business platform by expanding our emerging sleep respiratory business while we scale back our lower margin medical equipment distribution business, we expect our financial strength will improve over time. We also plan to raise our collection efforts in coming quarters to reduce outstanding account receivables balances which arose from our medical equipment distribution business," commented Mr. Ping Chen, Chief Executive Officer of Dehaier.

BEIJING, May 6, 2015 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China, today announced that its sleep respiratory solution systems have been adopted by Sonqao Health Checkup Institution ("Sonqao"), an emerging physical examination chain that provides comprehensive physical checkup and personalized health management services to over 200,000 patients annually through its three state-of-the-art physical examination centers in Beijing and Inner Mongolia.

Pursuant to an agreement executed earlier this month between our agent and Sonqao, Dehaier will provide its sleep respiratory solution systems, including related data transmission working stations, cloud-based diagnostic and analysis software, watch-sized sleep diagnostic and monitoring devices and disposable photoplethysmography (PPG) sensors, to meet the demand for obstructive sleep apnea ("OSAS") diagnosis and treatment at Sonqao's three physical examination centers. This follows the Company's announcement in January that Aoya Hospital of Ciming Healthcare Group, a leading physical examination chain in China, had adopted its sleep respiratory solution systems.

Dr. Yi Zhuang, a principal supervisor at Sonqao, commented, "Dehaier's innovative wearable sleep respiratory solution systems provide our patients with a convenient, cost effective and comparably accurate alternative to the traditional polysomnography (PSG) based sleep tests. We are encouraged with the results and feedback from the early trial of Dehaier's systems and expect demand for sleep tests based on Dehaier's wearable sleep respiratory technology to increase over time as Sonqao's patients learn more about the direct and indirect health risks of OSAS."

Mr. Ping Chen, Chief Executive Officer of Dehaier, stated, "Since early this year, hundreds of wearable sleep diagnostic systems we delivered to hospitals and private physical checkup centers have performed well with increasing use for patients for sleep disorders. By the end of the first quarter, we have distributed 250,000 disposable PPG sensors to our regional agents that are actively delivering them to medical institutions all over the China. The physical examination market in China is a RMB 10 billion market with significant growth potential, thanks to China's rapidly expanding middle class, much improved average life expectancy, and an aging population of over 1.3 billion. We believe these factors, combined with an increasing public awareness about the dangers of untreated sleep apnea, which has a high prevalence in China among a population of 260 million people with certain chronic diseases including hypertension, cardiovascular disorders, diabetes and brain stroke, will allow us to grow our sleep respiratory business through the over 6,000 physical examination centers across China. As we further our efforts to penetrate this market segment, we expect to deliver our wearable sleep respiratory solution systems to other leading physical examination chains."   

BEIJING, April 30, 2015 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China, today reported its financial results for the fiscal year ended December 31, 2014.

Mr. Ping Chen, Dehaier's Chief Executive Officer, stated: "During 2014, we furthered the strategic restructuring of our business focus from medical equipment distribution to mobile internet-based medical devices and services, including wearable sleep respiratory solution systems for Obstructive Sleep Apnea Syndrome ("OSAS"), telemedicine services, hospital management and wireless network solutions. Though our earnings declined in 2014 as we continued to transform our business platform and increased our spending on the development of our sleep respiratory business, we are encouraged by the progress of our sleep respiratory business. With our wearable sleep respiratory solution systems for OSAS gradually selling to more hospitals and medical examination centers across China, we are increasingly confident in the long-term outlook of our sleep respiratory business and expect it to evolve into one of the key growth drivers of our business in coming years."

Mr. Chen continued, "The healthcare industry is transforming as both consumers and physicians are beginning to tap into new technologies such as mobile healthcare, telemedicine, and smart wearable medical devices. We believe our wearable sleep respiratory solution systems for OSAS position us well to capitalize on these new trends.

"Looking ahead, we will continue to pursue sustainable growth by enhancing our capability to deliver our systems to more medical institutions and by promoting the application of sleep respiratory solution systems we delivered. We will not only promote the application of our systems in sleep centers, respiration departments and ENTs but also promote application of our systems to a large number of hospitalized patients for pre- and post-operative sleep diagnosis. We will continue focusing on the penetration of private physical examination chains which we believe have significant potential users for our sleep respiratory solution systems. With substantial sleep diagnostic market demand from existing chronic disease patients in China, we plan to sell our systems to community clinics and expect meaningful contribution from the community clinic market in coming quarters. We will also actively explore opportunities to collaborate in niche market segments or verticals as well as with universities and research institutes. That said, we believe 2015 will bring further transformation of our business platform and significant progress in our new business initiatives," Mr. Chen concluded.

Financial Highlights for Fiscal Year 2014

• Revenue of $11.99 million, compared to $16.86 million for 2013;
• Gross profit decreased by 50.21% year-over-year to $3.19 million;
• Gross margin of 26.62%, compared to 38.03% for 2013;
• Operating loss of $2.11 million, compared to operating income of $3.51 million a year ago;
• Adjusted operating income (non-US GAAP) of $0.98 million, compared to $4.88 million a year ago;
• Net income attributable to the Company was $1.00 million, or $0.18 per diluted share, compared to $2.00 million, or $0.43 per diluted share, for 2013.

BEIJING, April 10, 2015 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China, today announced selected preliminary, unaudited results for the fiscal year ended December 31, 2014.

All figures in this release are subject to the completion of normal year-end accounting procedures and adjustments, which could result in changes to these preliminary results.

The Company expects to announce its audited fiscal year financial results and host an earnings conference call before April 30, 2015.

For the year ended December 31, 2014, Dehaier expects to report revenues of approximately $12 million, representing a year-over-year decrease of approximately 29%. This decrease was mainly due to lower sales from our medical device distribution business.

Dehaier expects gross profit to decrease by 42% year-over-year to approximately $3.7 million and gross margin to decrease by 7 percentage points to approximately 31% for the year ended December 31, 2014. This decline in gross margin was attributable to a higher than expected percentage of revenues derived from the sales of lower margin third party medical devices.

We expect to report operating loss of approximately $1.8 million for the year ended December 31, 2014, compared to operating income of $3.5 million for the year ended December 31, 2013 as a result of decrease in gross margin and increase in SG&A expenses which were primarily attributable to amortization of employees and consultants share-based compensation expenses. On a non-GAAP basis after adjusting for $2.6 million, adjusted operating income is expected to be approximately $0.8 million for the year ended December 31, 2014, compared to $4.9 million for the year ended December 31, 2013.

The Company anticipates net income attributable to Dehaier of approximately $1.3 million, or $0.23 per diluted share, for the year ended December 31, 2014, compared to $2.0 million, or $0.43 per diluted share, for the year ended December 31, 2013.

Mr. Ping Chen, Dehaier's Chief Executive Officer, commented, "2014 proved to be challenging year for our medical device distribution business as competition intensified due to the entry of new players. This, combined with our strategic shift of more resources toward our new sleep respiratory business, led to an approximately 31% decrease in our medical device business in 2014."

"However, our sleep respiratory business, which we launched in October 2014, continued to progress well and contributed approximately 10% of total revenues for the year of 2014. As of today, our wearable sleep respiratory solution systems for OSAS have been adopted by over 100 hospitals and examination centers across 18 provinces and municipalities in China. Additionally, our efforts in actively participating in government procurement projects and developing new services platform such as telemedicine and mobile medical solutions started to show promises and contributed approximately 3% of total revenues for the year of 2014. Looking ahead, we will continue our efforts in building a more sustainable platform to prepare us for the challenge of increasingly competitive market condition and quickly evolving technology trends," concluded Mr. Chen.

BEIJING, Feb. 11, 2015 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China, today announced that it has signed a strategic cooperation agreement with the Clinical Sleep Medicine Center of the Air Force General Hospital (the "Hospital") to fully cooperate on sleep-related clinical research studies, sleep disease diagnosis and treatment, technology and equipment clinical tests, as well as public education and a sleep disorder awareness campaign. Established in October 1956 in Beijing, the Air Force General Hospital is one of the leading hospitals in China and an early adopter of Dehaier's wearable sleep respiratory solution systems as well.

Dr. He Gao, Director of the Sleep Center of the Air Force General Hospital, commented: "While thousands of our patients have benefitted from Dehaier's innovative wearable sleep respiratory solution systems over the past several months, we look forward to full cooperation with Dehaier to accelerate our efforts in advancing sleep disorder clinical research, diagnostic system development and data analytics as well as jointly promoting awareness of sleep disorders among the general population."

Mr. Ping Chen, Chief Executive Officer of Dehaier, stated, "We are pleased to take our relationship with the Air Force General Hospital to the next level. Leveraging the Hospital's strength in clinical research studies and patient care and Dehaier's focus on delivering innovative sleep respiratory solutions, the cooperation between the two parties is poised to tremendously benefit us a strong technical assistance and clinical data support in rapid delivering innovative wearable sleep respiratory solution systems to an ever-growing number of sleep apnea patients in China."

BEIJING, Jan. 12, 2015 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), which develops, markets and sells medical devices and wearable sleep respiratory products in China, today announced that its sleep respiratory solution systems have been adopted by Ciming Aoya Hospital, a subsidiary of Ciming Healthcare Group (the "Ciming Group"). The Company's wearable sleep respiratory solution features a full range of innovative products and services, including working stations, cloud-based diagnostic and analysis software, watch-sized sleep diagnostic and monitoring devices, and PPG sensors. Established in 2004, the Ciming Group is one of the three largest physical examination chains in China and provides comprehensive screening, diagnostic, treatment, and health management services for nearly two million people each year through its 83 subsidiaries and affiliates and over 100 third party cooperative organizations across China.

Dehaier's wearable sleep respiratory solution system allows patients at Ciming Aoya Hospital to take sleep tests in the comfort of their own homes, instead of traditionally spending the night in the test lab or in the hospital. This comprehensive and cost effective solution is more efficient than, and as accurate as, traditional polysomnography (PSG) based sleep tests. A number of Ciming's patients have recently used Dehaier's wearable sleep monitoring products, and these products have helped the hospital diagnosing several patients with moderate-to-severe obstructive sleep apnea ("OSAS") and refer them to specialist hospitals for timely treatment. As Ciming's patients learn more about the direct and indirect health risks of OSAS, the demand for sleep tests based on Dehaier's wearable sleep respiratory technology will increase, and the Company hopes to extend Dehaier's innovative system and solutions to Ciming Group's other facilities in the future.

Mr. Ping Chen, Chief Executive Officer of Dehaier, stated, "The physical examination market in China is a RMB 60 billion market with high growth potential, thanks to China's rapidly expanding middle class, much improved average life expectancy, and aging population. We expect to benefit tremendously from this favorable market trend by working with leading physical examination chains like the Ciming Group and look forward to expanding our cooperation with the Ciming Group in coming years."

BEIJING, Nov. 20, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), which develops, assembles, markets and sells medical devices and wearable sleep respiratory products in China, today announced that it has signed a new software license and strategic cooperation agreement (the "New Agreement") with Israel-based WideMed Technologies Ltd. ("WideMed") during the MEDICA trade fair ("MEDICA"), which took place November 16 -19, 2014 in D�sseldorf, Germany.

Delegates from both the Chinese and Israeli governments witnessed the signing of the New Agreement this week at MEDICA. The New Agreement gives Dehaier six more years of exclusive right in China to offer WideMed's cost-effective, portable home sleep diagnostic and analysis software solution, Morpheus OX. Both parties also agreed to leverage WideMed's innovative cloud-based automatic sleep diagnostic and analysis software and Dehaier's cost-effective wearable hardware solution to fully cooperate on the development and marketing of turnkey solution systems for Obstructive Sleep Apnea Syndrome ("OSAS") both in China and abroad. Dehaier will further research and develop the wearable sleep diagnostic device for sale in international markets and will actively pursue international certifications for the device.

As previously disclosed, the Company's wearable sleep respiratory solution system has been adopted by 58 major hospitals and medical examination centers across 14 provinces and cities in China since its official launch in August 2014, and the Company is accelerating the pace of delivering the systems to more medical institutions nationwide.

Mr. Ping Chen, Chief Executive Officer of Dehaier, commented, "We are excited to extend and broaden our strategic partnership with WideMed and believe the combined strength of the two companies will allow us to deliver competitive solutions systems for the emerging OSAS market both in and outside China. We are pleased with the market's reception of our wearable sleep respiratory solution systems for OSAS since its official launch in August, and we are increasingly confident about the growth prospects of our sleep respiratory business and firmly believe it can evolve into a key growth driver for Dehaier in coming years."   

Mr. Yaacov Bar-Lev, Chairman of WideMed Technologies Ltd., stated: "Today's announcement reflects a deeper partnership between two companies with a common goal of delivering affordable, easy-to-use sleep respiratory solution systems for millions of people who suffer OSAS, and we look forward to continuing our strong business relationship with Dehaier in the years to come."

BEIJING, Nov. 6, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (DHRM) ("Dehaier" or the "Company"), which develops, assembles, markets and sells medical devices and wearable sleep respiratory products in China, today announced that its sleep respiratory solution systems have been adopted by an additional 26 major hospitals and 4 medical examination centers in Beijing, Tianjin, Shanxi, Hebei, Anhui, Hubei, Shandong, Inner Mongolia, and Gansu provinces. This, combined with the 22 hospitals and 6 medical examination centers announced last month, brings the total count of hospitals and medical examination centers equipped with the Company's wearable sleep respiratory solution systems to 58 in 14 provinces and cities throughout the country. The Company's wearable sleep respiratory solution features a full range of products and services, including working stations, software, watch-sized sleep diagnostic devices, and PPG sensors. Dehaier's product line enables Obstructive Sleep Apnea Syndrome ("OSAS") diagnosis, CPAP treatment, curative effect evaluation, and other related services.

Mr. Ping Chen, Chief Executive Officer of Dehaier, stated, "We are very pleased to see our sleep respiratory business making further inroads into the emerging OSAS treatment and device market in China, which is projected to grow at a compound annual growth rate of 16.5% between 2011 and 2017 and reach $19.7 billion by 2017. As we continue to roll out our nationwide sales and marketing plan, we expect the strong momentum for our wearable sleep respiratory solution systems to continue, allowing us to penetrate between 100 and 150 hospitals and medical examination centers by the end of 2014. Looking ahead, we are increasingly optimistic about the prospects of our sleep respiratory business and view it as an important catalyst, both near- and long- term, for our ongoing transformation into a more sustainable and scalable medical solutions provider."

BEIJING, Oct. 17, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced its financial results for the six months ended June 30, 2014.

Mr. Ping Chen,Chief Executive Officer of Dehaier, stated, "Our first half of 2014 results reflected continuing headwinds facing the China economy, intensifying competition in our market segments of medical device distribution, and more importantly our proactive efforts to restructure and devote ourselves to the promotion of the sleep respiratory solution systems. While these challenges are likely to continue in the near future, we are very excited about the prospects of our business as we continue to make significant progress in some of the key areas. This June, we acquired all four CFDA certificates needed for our wearable sleep respiratory solution system. However it was approximately six months later than we expected, so the new business segment's contribution to our half-year performance is a few months behind schedule. We then spent three months preparing and scheduling the official launch right after we obtained all four CFDA certificates. In early October, we were excited to announce that the systems have been successfully introduced to 28 hospitals and medical examination centers across major cities in China. We are deploying marketing and sales strategies for the solutions into hospitals and private medical examination centers in 25 provinces nationwide and in each province we are planning to feature our systems in several 3A hospitals as example hospitals, which we expect to play an important role in driving adoption rates in more hospitals of the region. In the fourth quarter of 2014, we expect to build on this momentum in introducing our systems into more medical facilities."

Mr. Chen continued, "We expect 2014 to be a transformational year for Dehaier as we continue to restructure our existing businesses and invest heavily in the wearable sleep respiratory solutions for OSAS. With our sleep respiratory business starting to take off, we expect to see further growth in the coming years and deliver significant long-term returns for our shareholders."

Recent Developments

• In January 2014, the Company received approval from the China Food and Drug Administration ("CFDA") for its second generation DHR998 Sleep Diagnostic Device; and the Company received an "A" credit rating from Beijing Zhongguancun Enterprises Credit Promotion Association.
   
• In February 2014, the Company renewed its exclusive distribution right with Timesco for Timesco's CLX laryngoscope products.
   
• In February 2014, the Company sold 734,700 shares of its common stock at a price of $9.12 per share and warrants to purchase an aggregate of 220,410 shares of common stock with an exercise price of $11.86 per share to institutional investors in a registered offering. The warrants may be exercised for forty-two months from the date of issuance. The Company also issued warrants to purchase 73,470 shares of common stock to the placement agent with substantially the same terms as the investor warrants. Net proceeds for the Company from the registered offering was approximately $6.1 million.
   
• In April 2014, the Company served as the exclusive product-appointed distribution agent for some of the world's leading medical companies in bidding for multiple government procurement projects in China, and the Company became an authorized agent of Olympus (Beijing) Sales & Service Co., Ltd. to supply its electronic gastroscope and electronic bronchoscope products for several medical device procurement projects funded by the Chinese government.
   
• In June 2014, the Company received approval from the CFDA for its Morpheus Ox software, and the Company obtained a software copyright certificate for its Tele-Consultation Management System V1.0 from China's State Copyright Bureau and a software product register and test report from the Software Testing Center of China's State Information Center. The Company also showcased its Morpheus Ox System and work station at the 8^th Biennial Chinese Sleep Research Society Conference which took place in Beijing from June 13-15, 2014.
   
• In July 2014, the Company showcased its current line of sleep respiratory solutions at the 5th Chinese Sleep Medicine Congress which took place in Nanchang, Jiangxi Province from July 11-13, 2014.
   
• In August 2014, the Company began to provide its Sleep Respiratory Solutions to its first wave of customers in 3A hospitals across major cities in China. The Sleep Respiratory Solutions and products will allow doctors to provide OSAS diagnosis, early intervention treatment, treatment evaluation and other related services for OSAS patients.
   
• In September 2014, the Company announced that it cooperated with several large medical enterprises in multiple medical equipment procurement projects for top-tier hospitals in China and successfully secured purchase orders of medical equipment including anesthesia machines, defibrillators, color doppler ultrasound machines, magnetic resonance imaging machines, computed tomography machines and video bronchoscopes. The projects totaled $11 million, including the projects on which the Company submitted bids.
   
• In October 2014, the Company announced that 22 hospitals and 6 medical examination centers in Beijing, Shanghai, Tianjin, Henan, Shandong, Shanxi, and Gansu provinces had introduced its wearable sleep respiratory technology systems that provide OSAS diagnosis, CPAP treatment, curative effect evaluation and other related services.

Revenues

Total revenues decreased by 24.6% from $8.33 million for the six months ended June 30, 2013 to $6.28 million for the six months ended June 30, 2014. The decrease in total revenues was mainly due to our continued effort to restructure our respiratory and oxygen homecare business and develop our sleep respiratory business.

Although overall revenues decreased, we saw several positive signs. During the first half of 2014, revenues from our government procurement business continued growth. As we continue to allocate additional resources to the sleep respiratory business, we expect it to be an important growth driver for the Company in the near future.

Gross Profit

Our gross profit decreased by 35.7% from $3.27 million for the six months ended June 30, 2013 to $2.10 million for the same period of 2014. Gross margin for the first half of 2014 was 33.5%, compared to that of 39.2% for the first half of 2013 as a result of revenues declining at a faster rate than cost of revenues. As our higher margin sleep respiratory business develops, we expect upticks in overall growth margin in coming quarters.  

SG&A Expenses

Total operating expenses increased by 50.79% from $1.43 million for the six months ended June 30, 2013 to $2.16 million for the six months ended June 30, 2014, mainly due to a $0.74 million, or 85.2%, increase in general and administrative expenses as a result of our heightened research and development effort in our sleep respiratory business as well as increase in professional service fees.

Operating Income

Operating income for the six months ended June 30, 2014 was $0.03 million, compared to $1.91 million for the same period of 2013. The decrease in operating income was mainly due to combined result of declines in revenues and increase in general and administrative expenses. 

Change in the Fair Value of Warrants Liability

Our first half 2014 results also benefitted from a decrease of approximately $1.53 million in the fair value of warrants liability as a result of changes in the price of our common shares.

Net Income

As a result of the foregoing, net income decreased by 9.3% from $1.52 million for the six months ended June 30, 2013 to $1.38 million for the same period of this year. After deducting non-controlling interest, net income attributable to Dehaier was approximately $1.40 million, or $0.26 per diluted share, for the six months ended June 30, 2014, compared to $1.53 million, or $0.33 per diluted share, for the same period of last year.

BEIJING, Oct. 2, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company") which develops, assembles, markets and sells medical devices and wearable sleep respiratory products in China, today announced that twenty-eight medical examination centers and hospitals in China have introduced Dehaier's wearable sleep respiratory technology systems to provide Obstructive Sleep Apnea Syndrome ("OSAS") diagnosis, CPAP treatment, curative effect evaluation and other related services.

The first batch of customers are the sleep medical centers, respiratory departments, ENT departments and neurology departments from twenty-two hospitals and six medical examination centers located across China in Beijing, Shanghai, Tianjin, Henan, Shandong, Shanxi and Gansu provinces. Dehaier has implemented multiple system working stations, software, watch-sized sleep diagnostic devices and a number of PPG sensors to cater to the current OSAS diagnostic demand of the hospitals and medical examination centers. Dehaier hopes the wearable sleep respiratory technology systems used in these top-tier hospitals will serve as a platform for the Company's future market expansion.

Mr. Ping Chen, Chairman and Chief Executive Officer of Dehaier Medical stated, "We are excited about this breakthrough for our respiratory business. After persistent efforts on R&D, CFDA certification and dedication to market activities for more than three years, we have successfully delivered our sleep respiratory systems to medical institutions. We believe that it will be an effective supplement to the traditional OSAS diagnosis in the medical field. We foresee that the application of this system will effectively increase outpatient volume for sleep monitoring and diagnosing and reduce purchasing costs associated with large-scale diagnosis equipment PSG. We also expect disposable PPG sensors will generate continuous cash flow for the Company. As for the patients, sleep respiratory diagnosis have been covered by national insurance and patients will be only charged for the affordable PPG sensor. Furthermore, patient waiting time, usually from three to six months, for hospital beds should be cut dramatically, as the system makes earlier diagnosis and treatment available."

Mr. Ping Chen added, "Choosing well-known top-tier hospitals for the early stage of market development should position us favorably to improve market share and expand throughout China. To ensure that the systems and products function well, we have set up a technical service crew to provide training and technical support for each hospital equipped with our systems. We are actively introducing our solutions to more hospitals' respiratory departments and any other departments where OSAS is diagnosed. In addition to expanding our landscape to equip more top-tier model hospitals nationwide, we also expect to cooperate with more top-level hospitals to capture the market."

BEIJING, Sept. 24, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and sleep respiratory products in China, today announced that it cooperated with several large medical enterprises in multiple medical equipment procurement projects for top-tier hospitals in China and successfully secured purchasing orders of medical equipment including anaesthesia machines, defibrillators, color doppler ultrasound machines, magnetic resonance imaging machines, computed tomography machines and video bronchoscopes. The projects bidding amount totaled $11 million.

Dehaier's Chief Executive Officer Mr. Ping Chen commented, "We are pleased to continue working with these well-respected companies. We expect continued market expansion in China's healthcare and medical industries as the national government continues to fund the country's medical and health sectors. Since early 2014, we have focused on growing our medical equipment procurement business. We believe our extensive government procurement bidding experience, mature distribution networks and professional service team position us well for future government procurement projects."

BEIJING, Aug. 28, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and sleep respiratory products in China, today announced that it is preparing to introduce its Sleep Respiratory Solutions to its first wave of customers in 3A hospitals located in different provinces and province-level cities throughout China. The Sleep Respiratory Solutions and products will assist doctors to provide obstructive sleep apnea syndrome ("OSAS") screening and diagnosis, early intervening treatment, treatment evaluation and other related services for OSAS patients.

With the Morpheus Ox advanced sleep apnea monitoring software from Israel, Dehaier itself has developed wearable sleep diagnostic device DHR-998, the CPAP device and the photoplethysmography ("PPG") sensor. These four key components have been certified by China's Food and Drug Administration ("CFDA").

China has more than one thousand sleep respiratory departments and centers in public hospitals nationwide. Dehaier surveyed nearly 200 hospitals in seven provinces and five Tier I cities in China and found that respiratory departments with OSAS diagnosis have an average of 2.13 hospital beds per department. These departments saw an aggregate of approximately 94,000 cases per year. All of such departments currently use Polysomnography ("PSG") for OSAS diagnosis. In current PSG diagnosis, patients wear multiple electrodes on different parts of the body and must stay overnight at the hospital for diagnosis. As a result, diagnostic efficiency is limited by the number of hospital beds. Moreover, due to its greater complexity, PSG tends to require more direct supervision and assistance with device operation and report generation. By contrast, Dehaier's sleep respiratory solution allows respiratory departments to diagnose more patients than could physically stay in the departments' dedicated hospital beds, as the patients conduct the diagnostic step in their own homes.

Patients using Dehaier's sleep diagnostic system only have to wear a small watch-sized device with an inductive cable to complete the diagnosis and data collection step at home. The physiological data is then uploaded to a cloud-based server for analysis by the Morpheus Ox software and diagnostic reports can be generated and printed by doctors in less than 10 minutes. According to Dehaier's clinical trials in different hospitals, the system and PSG testing accuracy and sensitivity are essentially identical. The implementation of sleep respiratory solution will not only improve the efficiency of diagnosis but also cut down waiting time, and is expected to increase use in outpatient sleep respiratory diagnosis.

Mr. Ping Chen, Chairman and Chief Executive Officer of Dehaier Medical, stated, "After several clinical trials, optimizations and upgrades, our ready-to-use, effective and cloud-based systems and products are ready to be a strong supplementary system to the traditional PSG sleep respiratory diagnosis approach. We expect our system will increase the demand for outpatient sleep monitoring and diagnosis services, and will make cloud-based data and patient record-keeping an attainable goal. In addition, we expect revenues from our system sales will be supplemented by ongoing revenues from sales of single-use PPG sensors. As we are about to provide the first batch of systems and products to our model hospitals, we will be able to quickly locate the OSAS patients, provide different models of CPAP devices, conduct treatment, and provide the curative effect evaluation services. We are excited about the opportunities this new product line offers to users and our company."

BEIJING, June 16, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and sleep respiratory products in China, today announced that it has obtained a software copyright certificate for its Tele-Consultation Management System V1.0 from China's State Copyright Bureau and has received the software product register and test report from the Software Testing Center of China's State Information Center. The Company is applying for software product registration and software company certification and anticipates receiving such registration and certification near year-end.

Mr. Ping Chen, Chairman and Chief Executive Officer of Dehaier Medical stated, "We are pleased to obtain the software copyright certificate, which will help us diversify business strategies into mobile health and telemedicine. According to state tax incentives granted to companies possessing software copyright, we will receive a preferential value added tax rate of 3% on sales of software, rather than the standard 17% that applies to sales of our other products. Along with the software copyright certificate, software product register and test report, we are in the process of applying for the software product registration and software company certification. When we receive these two certifications, we will become eligible for preferable income tax treatment for a limited time. We are pleased that our efforts in R&D have been recognized and we expect that the tax benefit will improve our competitiveness going forward."   

BEIJING, June 5, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in development, assembly, marketing and sale of medical devices and sleep respiratory products in China, today announced that received approval from the China Food and Drug Administration (CFDA) for its Morpheus Ox software.

Dehaier Medical applied to the CFDA to register the Morpheus Ox in July 2013. With completion of this registration, we have collected all certifications for four key components of Dehaier's Sleep Respiratory Solutions: the second generation DHR998 Sleep Diagnostic Device, photoplethysmography (PPG) sensor, sleep diagnostic software and continuous positive airway pressure ventilator in order to establish a comprehensive product line for Obstructive Sleep Apnea. Dehaier's Morpheus Ox products assist with the diagnosis of sleep apnea, provide treatment options to apnea patients and allow post-treatment evaluation services to pinpoint further opportunities for improvement.

Dehaier Chairman and CEO Mr. Ping Chen stated, "We are confident that China's sleep respiratory market, which is still at an early stage of development, has tremendous growth potential and that our products position us well to increase market share. Our comprehensive line of products focused on disease diagnosis, treatment and curative effect evaluation provide a one-stop solution to meet market demand. After the receipt of the fourth registration certificate for our Morpheus Ox product line, we are ready to launch the solution for sale. We showcased the Morpheus Ox System and workstation at the 2014 Third Annual Jiangxi Sleep Medicine Seminar from May 30 to 31, 2014. Based on our marketing campaign during the past couple months, we are excited to see strong interest from a variety of hospitals and physical examination centers. We are beginning to further our marketing and sales activities for our sleep respiratory products nationwide, and we expect our sleep respiratory business will grow through the rest of 2014 as we move toward mobile health care and telemedicine."

BEIJING, April 30, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and sleep respiratory products in China, today announced it has become the authorized agent of Olympus (Beijing) Sales & Service Co., Ltd. ("Olympus") to supply its electronic gastroscope and electronic bronchoscope products to participate in several medical device procurement projects funded by the Chinese government. Pursuant to the authorization letter with Olympus, Dehaier will be responsible for bidding, agreement negotiation and execution of the projects.

Mr. Ping Chen, the Chairman and CEO of Dehaier, commented, "Dehaier is pleased to serve as agent on behalf of Olympus to participate in several medical equipment procurement bids. Olympus gastroscope and bronchoscope products are popular in the industry and command a high market share. We are honored to be recognized by Olympus, one of the world's top companies in the healthcare sector. And we believe this relationship may benefit Dehaier in the short and long term."

BEIJING, April 16, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and sleep respiratory products in China, today announced that it will serve as the exclusive product-appointed distribution agent for some of the world's leading medical equipment companies in bidding for multiple government procurement projects in China, the procurement projects we are bidding for are designated by these companies.

The appointed products the company is authorized for the procurement include Harmonic System from Johnson & Johnson Medical (Shanghai) Ltd., the MasterScreen� pulmonary function testing system from CareFusion (Shanghai) Commercial and Trading Co. Ltd., ventilator from Weinmann GmbH + Co. KG, infusion pump from B. Braun Medical (Shanghai) International Trading Co., Ltd., spectrophotometer from Shimadzu (China) Co., Ltd. and portable color Doppler ultrasound, versatile anesthesia machine and multi-parameter monitor from Mindray Medical International Limited. The aggregate value of the procurement projects is expected to be approximately $21 million.

Dehaier Chairman and CEO Mr. Ping Chen stated, "With rich experience and resources in the Chinese medical equipment industry, especially with its mature sales and distribution networks across China, Dehaier has earned a strong reputation and increased product support from global medical equipment companies who seek to penetrate the vast Chinese healthcare market. Today we are excited and honored to enter into these exclusive arrangements with international medical equipment manufacturers to distribute their flagship products in China and to participate in potential government procurement projects. In the past year, the Chinese government procurement business has been one of Dehaier's major focuses. With a fast growing economy and aging population, we believe the Chinese government will continue to invest more to upgrade its healthcare system, particularly China's medical equipment. By partnering with world-renowned medical device companies, we are confident that our government procurement business will progress in 2014 and beyond. Dehaier is currently working on a preparation for the procurement biddings and expects to win them in quarters to come."

BEIJING, April 11, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in development, assembly, marketing and sale of medical devices and sleep respiratory products in China, today announced that it has appointed Huili (Alisa) Li as its new Chief Financial Officer and as a Director, in both cases to replace Mr. Jingli (Charles) Li, who resigned on April 8, 2014. Mr. Li resigned these positions solely for personal reasons and not due to any disagreement with the Company. Alisa Li will serve the remainder of Charles Li's term as Director, which term expires in 2014 and will face re-election at Dehaier's annual general meeting of shareholders in 2014.

Mr. Ping Chen, Chief Executive Officer of the Company, stated, "During his service as our Chief Financial Officer and director, Charles has supported stability and development in our financial systems. We are grateful for his contributions to Dehaier and wish him success in the future. Our new CFO, Alissa Li, has been well prepared to take over the responsibilities, and we look forward to her new contributions to our Company in this role."

Alisa Li has served as the Company's financial manager since 2013. She is a certified public accountant and is familiar with US GAAP, PRC GAAP, IFRS and Sarbanes-Oxley Act compliance. She previously worked as an auditor in the professional services department of LehmanBrown's Beijing office from 2010 to 2013 and in the assurance department of the Beijing office of PricewaterhouseCoopers (PwC) from 2007 to 2009. Ms. Li earned a master's degree in Technological Economy and Management from Beijing Information Science & Technology University in 2007, a bachelor's degree in Business Administration from China University of Geosciences in 2004 and a second bachelor's degree in Science & Technology English from Huazhong University of Science and Technology in 2014. Ms. Li has been chosen to serve as a director because of her experience with financial matters and her familiarity with the Company's operations.

Management Discussion and Analysis

Fiscal Year Ended December 31, 2013 Compared to Fiscal Year Ended December 31, 2012.
 

Revenues
 
Our total revenues decreased by 21.11% from $21.37 million for the fiscal year ended December 31, 2012 to $16.86 million for the fiscal year ended December 31, 2013. The decrease of revenues is mainly due to the influence of increasingly challenging markets and new competitors. Along with the development of the company's business shifting strategy, the company invested more resources in the research and development of sleep respiratory business, and adjusted the sales strategy of traditional medical devices business. Although our sleep respiratory business is still in early stage, our management believes that sleep respiratory business will become an important growth factor of the company in the near future.

Net Income
 
As a result of the foregoing, we had net income of approximately $2.00 million in 2013, compared to approximately $3.22 million in 2012. After deduction of non-controlling interest in income, net income attributable to Dehaier was approximately $2.00 million and $3.21 million in 2013 and 2012, respectively.

BEIJING, Feb. 26, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced the closing of a previously announced securities purchase agreement (the "Securities Purchase Agreement") with certain institutional investors for the sale of 734,700 common shares in a registered offering at the price of $9.12 per common share.

Gross proceeds from the offering were approximately $6.7 million. After payment of expenses, the Company received approximately $6.1 million in net proceeds. In addition, warrants to purchase 220,410 common shares in the aggregate were issued to the investors. If fully exercised, the Company would receive aggregate gross proceeds from the warrants of approximately $2.6 million. The company intends to use the net proceeds from this offering for working capital and other general corporate purposes. FT Global Capital, Inc. served as the placement agent for the offering.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and has become effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

DEHAIER MEDICAL SYSTEMS LIMITED

 734,700 Common Shares

Warrants to Purchase 220,410 Common Shares

220,410 Common Shares Issuable upon Exercise of the Warrants

Pursuant to this prospectus supplement and the accompanying prospectus, we are offering up to 734,700 common shares directly to selected investors. The purchasers in this offering will also receive warrants to initially purchase an aggregate of 220,410 common shares with a per share exercise price of $11.86. The warrants are exercisable immediately as of the date of issuance at an exercise price of $11.86 per share of our common shares and expire forty-two months from the date of issuance. A holder of the warrants also will have the right to exercise its warrants on a cashless basis if the registration statement or prospectus contained therein is not available for the issuance of the common shares issuable upon exercise thereof.

BEIJING, Feb. 21, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that it entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain institutional investors for the sale of 737,700 common shares in a registered offering at the price of $9.12 per common share. After payment of expenses, the Company will receive approximately $6.1 million in net proceeds. In addition, warrants to purchase 220,410 common shares in the aggregate will be issued to the investors. If fully exercised, the Company would receive aggregate gross proceeds from the warrants of approximately $2.6 million.

The investors' warrants will be exercisable immediately as of the date of issuance at an exercise price of $11.86 per common share and expire forty-two months from the date of issuance. The exercise price of the warrants is subject to customary adjustment in the case of future issuances or deemed issuances of common shares, stock splits, stock dividends, combinations of shares and similar recapitalization transactions. A holder of the warrants also will have the right to exercise its warrants on a cashless basis if the registration statement or prospectus therein is not available for the issuance of the common shares issuable upon exercise thereof.

Gross proceeds of the offering of common shares, before deducting placement agent fees and other estimated offering expenses payable by the Company, are expected to be approximately $6.7 million. These securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus.

The net proceeds from this offering will be used for working capital and other general corporate purposes. In the Securities Purchase Agreement entered into with the purchasers in this offering, the Company has agreed not to use the proceeds of this offering to satisfy any existing debt (other than ordinary course trade payables), to redeem any outstanding securities (other than the warrants issued pursuant to the securities purchase agreement), or to settle any outstanding litigation.

The completion of the offering will occur on or before February 26, 2014. FT Global Capital, Inc. served as the placement agent for the offering.

A shelf registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

BEIJING, Feb. 18, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that it received the exclusive distribution right renewal from Timesco in related to CLX laryngoscope products. Pursuant to the renewal agreement, Dehaier will continue to have the exclusive right to direct sale, distribute and bid of optima range products, including CLX and Eclipse blades and handles in mainland China through 2014.

Dehaier's President and CEO, Mr. Ping Chen, stated, "Since we have initiated our cooperation with Timesco in 2003, as its exclusive distributor in China, we have been maintaining a sound partnership with Timesco. The CLX series products offer broad visual field and better vision upon its patented light source, fulfill all sorts of demands of clinical demands through diversified models and specifications, which can be recognized as one of the most widely-used laryngoscopes in China. CLX Laryngoscope series is one of our flagship products which have a quite stable, significant market share and for a long time ranked within top three in China. Dealers and consumers respond very well and Dehaier has occupied competitive leadership in the market of laryngoscope. Going forward, we will continue to build out our distribution network and the agent platform for our ever growing medical device products."

BEIJING, Jan. 28, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that the Beijing Zhongguancun Enterprises Credit Promotion Association has awarded Dehaier an A- credit rating. This new rating is effective from December 16, 2013 through December 15, 2014.

Mr. Ping Chen, Chairman and Chief Executive Officer of Dehaier Medical stated, "Dehaier's well-established financial profile, including healthy financial statements, steady cash flow, timely payment and low credit risk, contributed to our favorable rating. This is our second consecutive year receiving the A- credit rating from a well-known rating association in Beijing, a testament to our operations, controls and management. We are confident that focusing on our core business strategies and operating with integrity to validate our credit rating will benefit our company and shareholders over the long term."

BEIJING, Jan. 16, 2014 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that company will conduct a non-deal road show, with meetings in Silicon Valley and New York for one week in February 2014. During the road show, management will present updates to the Company's business and line of sleep apnea products and will discuss the Company's growth strategy.

Dehaier's CEO Mr. Chen Ping stated, "2014 will be crucial for Dehaier as we start to invest a large amount of capital and effort in R&D, product licensure and registration and market expansion. With our increasingly robust sleep apnea product line, Dehaier will continue to expand its footprint in the Chinese market this year. During our February trip, we look forward to the opportunity to share these and other developments with investors and others who follow our Company."

BEIJING, Dec. 18, 2013 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, announced today that it has successfully bid on a large-scale medical equipment procurement valued at approximately $600,000 (RMB 3.7 million). Dehaier's bid to provide Cardiac Color Doppler Ultrasonic Diagnostic Apparatus medical equipment was its successful bid with the Beijing Kanglian Medical Company. Under the bid, Dehaier will provide medical equipment to rural hospitals and clinics in Shanxi Province under China's New Rural Infrastructure Project. The Project is supported by the China Development Bank, one of China's three national policy banks.

"State-level medical device procurement is one of our strategic foci," Mr. Ping Chen, CEO and chairman of Dehaier Medical said. "Meanwhile, we will continue to maintain our traditional medical business, and promote growth in our sleep apnea and oxygen therapy business. We believe these goals are key to our success over the near term."

BEIJING, Nov. 18, 2013 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products, today announced that it has successfully bid on a large-scale medical equipment procurement agreement valued at  this procurement agreement is part of the China Development Bank's ("CDB") Rural Medical and Healthcare Infrastructure Project in Hebei and Hunan provinces.

Mr. Ping Chen, Chairman and Chief Executive Officer of Dehaier, said, "In the past two years, we have gained tremendous experience with large-scale medical device procurement projects. In addition, we believe our timely and detailed after-sale service for our clients has helped build our strong reputation in the industry. Looking ahead, Dehaier will stick to our business strategy of maintaining our mature medical equipment distribution business, while actively developing our burgeoning sleep respiratory and oxygen therapy businessapproximately $918,000 (RMB 5.6 million). Signed with Beijing Kanglian Medicine Company,."

BEIJING, Nov. 7, 2013 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in development, assembly, marketing and sales of medical devices and homecare medical products, announced today that it has completed research and development for its new DHR-998 sleep diagnostics device. The new device is a technological upgrade based on the original high efficiency sleep diagnostic and monitoring product. The device, which features an enhanced and more user-friendly operating system, analyzes user respiratory quality more accurately across five testing variables, PPG (plethysmograph), oxygen saturation, heart rate, snoring and body position.

Mrs. Rayna Dong, Dehaier's Marketing Director, commented, "We have listened to feedback from doctors, patients, distributors and manufacturers to improve our already-powerful sleep diagnostics product. We added two new important channels to improve the accuracy of sleep diagnosis. We also enhanced the user interface to make the device's features even easier to use and optimized the operating system. We expect the new device will be ready to enter market near the end of this year. We plan to attend domestic and international exhibitions to show the world the new device beginning in 2014."

BEIJING, Sept. 9, 2013 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products, today announced that it has successfully bid on a large-scale medical equipment procurement agreement valued at approximately $600,000 (RMB 3.7 million). The procurement agreement is with Beijing Kanglian Medicine Company and is part of the China Development Bank's ("CDB") Rural Medical and Healthcare Infrastructure Project in Guizhou and Hebei provinces.

Mr. Ping Chen, Chairman and Chief Executive Officer of Dehaier Medical said, "In the past two years, Dehaier has successfully bid on several large-scale medical device procurement projects. We are pleased to offer high-quality Color Doppler Ultrasound machines and monitors to county hospitals and clinics in rural areas of China. The growth of our bulk procurement business depends on our strong and comprehensive sales and distribution platform. Moving forward, we will continue to focus on large projects like the Guizhou and Hebei province project, which offers us the opportunity to leverage this platform to drive revenues in a smaller number of large-scale projects.

BEIJING, Aug. 29, 2013 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sales of medical devices and homecare medical products, today announced that it has established a powerful server in Beijing for its Morpheus Ox software, which currently enables hundreds of hospitals to upload sleep data after patients use the sleep holters and simultaneously generates sleep diagnosis reports for patients.

The Morpheus Ox System is a cost-effective, portable home sleep diagnostic and monitoring solution that enables the diagnosis of sleep disorders using a standard oximeter recording plethysmograph signal. By collecting and recording the physiological data from patients who wear the watch-sized device at home, the advanced automatic sleep scoring software makes an accurate and reliable sleep study diagnosis, including Apnea Hypopnea Index (AHI), sleep/wake time, and Cheyne-Stokes breathing patterns. The new generation Morpheus Ox is a comprehensive platform that manages a cost-effective sleep services operation, including patient electronic medical records, and sleep diagnostics results, as well as complete workflow management. The web-based automatic scoring and data management are able to increase operational efficiency and provide opportunities for us to offer other services by giving users valuable and timely clinical information to improve patient treatment.

Mr. Ping Chen, Chairman and Chief Executive Officer of Dehaier Medical, commented, "We invited a senior IT engineer from WideMed Ltd. to support our establishment of an efficient and safe server for Chinese users. The server is scalable and can, if expanded, support the needs of China's estimated 50 million sleep apnea patients. In addition, it provides convenient and safe service to quickly generate sleep reports for patients. We believe the system's strength and speed will drive popularization of the Morpheus Ox in China."

BEIJING, Aug. 26, 2013 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products, today announced its financial results for the half year ended June 30, 2013.

Mr. Ping Chen, Chief Executive Officer of Dehaier Medical, stated, "We are pleased to have expanded into China's burgeoning sleep respiratory market by entering into a strategic agreement with an Israeli medical signal processing company. As WideMed's exclusive partner in China, we have marketed and distributed our newly-developed sleep holter to hospitals across the whole country as an accurate and user-friendly sleep apnea diagnosis solution. These products are in registration with China's SFDA and we expect to obtain SFDA approval soon. Because we believe this kind of device and business model addresses the needs of patients and the market, we expect the firm foundation we laid in the first half of the year will generate considerable revenue during the remainder of the year."

Mr. Ping Chen continued, "At the same time, we have continued to focus on our government medical procurement and key account business initiatives. We successfully bid to provide Color Doppler Ultrasound machines to county hospitals and clinics in Guizhou province and have also established a positive relationship with multinational companies like Mindray to broaden our key account business. We will continue to balance our development between our traditional business and new business initiatives and expect to drive a more diverse and robust revenue stream to the Company."

Half Year 2013 Financial Overview

• Our total revenues decreased by 19.16% from $10.30 million for the six months ended June 30, 2012 to $8.33 million for the six months ended June 30, 2013. In the first half of 2013, we continuously developed our sales channels for traditional medical devices sales. At the same time, we also began to adjust our operating strategy to expand into government procurement projects and the burgeoning sleep respiratory and oxygen therapy market. Because the company reduced the marketing expenses in its traditional medical device business and invested additional resources to develop its sleep respiratory business, our revenues and net income are lower than during the same period in 2012.
• Our gross profit decreased from $3.98 million in the six months ended June 30, 2012 to $3.27 million in the same period of 2013, while our gross margin increased slightly from 38.66% in 2012 to 39.23% in 2013 due to the faster decrease in cost than revenues. Management believes the Company's gross margin is likely to remain relatively stable over the near term.
• As a result of the foregoing, we generated operating income of approximately $1.91 million in the six months ended June 30, 2013, compared to approximately $2.38 million in the same period of 2012. Operating income decreased by 19.67%, mainly because of the reduced revenues.
• Our net income was approximately $1.52 million in the six months ended June 30, 2013, compared to approximately $1.81 million in 2012, a decrease by 16.13%, mainly because of the decrease of revenues. After deduction of non-controlling interest in income, net income attributable to Dehaier was approximately $1.53 million and $1.82 million in the six months ended June 30, 2013 and 2012, respectively.
• As of June 30, 2013, we had $1,343,246 cash and cash equivalents. As a result of the total cash activities, net cash decreased from $3,505,330 at December 31, 2012, mainly because we invested in purchasing manufacturing equipment and devices for our future development of sleep respiratory business.
• We believe that our currently available working capital of $30,035,112, including cash, should be adequate to meet our anticipated cash needs and sustain our current operations for at least 12 months.

BEIJING, May 20, 2013 (GLOBE NEWSWIRE) -- Dehaier Medical Systems Ltd. (Nasdaq:DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products, today announced that it entered into a strategic cooperation agreement with WideMed Ltd. (TASE:WDMD), a leading Israeli company engaged in the research, development and sale of innovative products for the growing bio-medical signal diagnostics and treatment market, to become WideMed's exclusive partner in China to market the Morpheus Ox System, a cost-effective, portable home sleep diagnostic and monitoring solution which enables to diagnose sleep disorders using a standard oximeter recording plethysmograph signal. The Signing Ceremony of Cooperation has been hold on May 20, 2013 and invited Mr. Matan Vilnai, The Israeli Ambassador to China, and also officials from Changping District of Beijing City to attend the ceremony.

Dehaier will cooperate with WideMed to develop a new type watch-size device, which is designed to be integrated into existing Morpheus Ox platform. By collecting and recording the physiological data from the patients who wear watch-size device at home, the advanced automatic sleep scoring software is able to generate an accurate and reliable sleep study diagnosis, including Apnea Hypopnea Index (AHI), sleep/wake, and Cheyne-Stokes breathing. The new generation Morpheus Ox is going to be a comprehensive platform which manages a cost-effective sleep services operation, including patient electronic medical record, cardiac and sleep diagnostics outcomes and a complete workflow management.

The web based automatic scoring and data management is able to facilitate operational efficiency and maximize growth potential, by way of providing its users valuable & timely clinical information to improve patient treatment. Moreover, it could also function as an enhanced Electronic Medical Record (EMR) clinical Database for hospitals. The system has passed the FDA and CE certificate, and is being prepared for SFDA registration.

Mr. Matan Vilnai, The Israeli Ambassador to China, gave the speech in the signing ceremony and he quoted, "This partnership between WideMed; an Israeli company with great innovative capabilities and Dehaier Medical; a specialized Chinese company with great developing and manufacturing capabilities, is the perfect example of the kind of cooperation that we, in the state of Israel, encourage and support."

Mr. Ping Chen, Chairman and Chief Executive Officer of Dehaier Medical also commented in the signing ceremony, "In China, there is a huge potential for sleep disorder and diagnosis market, but the lack of cohesive product and solution has caused the slow acceptance from Chinese consumers and healthcare providers. We believe that the introduction of Morpheus Ox could change that as Morpheus Ox leads to a close relationship among patients, doctors and hospitals and it will establish a sustainable market. We are confident that the state-of-the-art system would be an innovative success in domestic sleep diagnosis market going forward."

BEIJING, September 28, 2012 /PRNewswire-FirstCall/ -- Dehaier Medical Systems Ltd. (NASDAQ: DHRM) ("Dehaier"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that it has signed a two-year distribution agreement with GCE group, a leading global compressed gas-equipment company, to become the exclusive distributor for GCE's EASE II products in Mainland China.

EASE II is an automatically triggered high-flow oxygen device, which can be connected with a portable oxygen tank or medical gas pipeline system to deliver high flows of oxygen to patients with minimal breathing resistance. The device can also benefit patients with sudden cardiac vascular disease, gas poisoning and other patients who require oxygen therapy. In certain emergency situations, EASE II helps to save lives by effectively increasing the degree of blood oxygen saturation and accelerating the recovery of cell functions when patients experience severe hypoxia.

In addition, the EASE II system can be used to deliver nitrous oxide-oxygen on demand to administer effective pain relief for a wide range of medical situations, such as accidents, medical surgery, skin burns, and various sports injuries. The product, distinguished by its portability and easy use, has been widely used in many fields including disaster relief efforts, national defense, emergency rooms, ambulances, and medical institutions around the world.

Dehaier's President and CEO, Mr. Ping Chen, stated, "We are excited to be the exclusive distributor of EASE II in China and plan to occupy the immature market of high-efficiency oxygen in China with the GCE Group. Furthermore, Dehaier will begin to promote this efficient and state of the art emergency care concept and its related products by working closely with hospital specialists, as well as participating in academic seminars on emergency care and oxygen therapy. We believe that the EASE II concept and its application have a great market potential in the China's growing medical equipment market, and going forward, we hope that EASE II system will be an important revenue contributors to Dehaier. "

BEIJING, September 11, 2012 /PRNewswire-FirstCall/ -- Dehaier Medical Systems Ltd. (NASDAQ: DHRM) ("Dehaier"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that it has obtained State Food and Drug Administration approval for DHR-CPAP-C5, one of Dehaier's major proprietary homecare medical devices. The period of validity for the SFDA approval is four years.  Full release.

Second Quarter 2012 Financial Highlights

• Total revenues were $7.0 million for the three months ended June 30, 2012, compared to $7.7 million in the prior-year quarter. The decrease was largely a result of the aforementioned change in operating strategy to focus on Dehaier's own homecare products and larger government procurement projects.
• The Company's gross profit for the quarter ended June 30, 2012 was $2.7 million, or 39.2% of revenue, compared to $2.8 million, or 36.8% of revenue, in the prior-year period. Gross margin improved largely as a result of improved operating efficiencies and inventory management.
• Dehaier's income from operations improved slightly, or 0.1%, to $1,928,212 in the 2012 second quarter from$1,925,024 in the prior-year period, largely due to lower selling expenses for the period. The Company expects its selling expenses to grow as it invests in strengthening its distribution network, growing relationships with customers, developing the homecare device market (in particular its oxygen therapy service initiative) and driving top-line growth in these areas.
• The Company reported net income attributable to the Company of $1.7 million, or $0.36 per diluted share in the 2012 second quarter, compared to $1.7 million, or $0.39 per diluted share in the prior year.

Mr. Ping Chen, Chief Executive Officer of Dehaier Medical, stated, "Throughout the first half of 2012, we continued to focus on diversifying our revenues. While we have continued to build on our medical device sales and distribution foundation, we have also devoted sales resources to growing our proprietary respiratory and oxygen homecare products, explored international expansion possibilities and put more energy into developing and researching homecare products and protecting our intellectual property. Throughout this process we have continued to report strong operating profits. We improved our gross and operating margins and continue to leverage a strong balance sheet with minimal long-term debt. We believe that our business will continue to grow at a healthy rate in the long term as we strengthen our medical device distribution network; increase the market recognition and demand for our proprietary products; research, develop and begin to sell new products; and ramp up our international expansion."

BEIJING, July 12, 2012 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical Systems Ltd. (NASDAQ: DHRM) ("Dehaier"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that it has obtained software copyrights from the National Copyright Administration of PRC for four of its proprietary technologies, including:

• Analysis and Monitoring Software of Adsorption Tower Oxygen Generation Process;
• Dehaier Homecare CPAP Controlling Software;
• Ventilator of CPAP Controlling Software; and
• Air Compressor Controlling Software.

These copyrights have been approved for 50 years. In addition to providing the Company protection in the event of infringement, the software copyright registration is essential to the Company's identification as a "software enterprise" or a "high-technology enterprise." These statuses are important to Dehaier, as they allow the Company to receive preferential government treatment, such as subsidies and tax benefits.

Mr. Ping Chen, CEO of Dehaier, commented, "We continue to focus on developing quality homecare medical devices, which rely on precise IT and software applications that Dehaier develops internally. These copyrights are important in protecting the technology that Dehaier is developing, especially as we introduce more products to market. We also expect to benefit from the favorable policies and subsidies from China's government as a result of our treatment as a hi-tech enterprise. With the addition of these copyrights, we have two utility model patents, four design patents and nine software copyrights. We will continue to protect our intellectual property portfolio in unison with strengthening our R&D capabilities, increasing our brand recognition, and gaining market share."

BEIJING, May 24, 2012 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical Systems Ltd. (NASDAQ: DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that the Chinese subsidiary of INTERMEDICAL ("IMD"), an Italian X-ray medical equipment manufacturer, extended Dehaier's appointment to exclusively distribute IMD's products throughout China through 2014.

Dehaier will remain the exclusive distributor of IMD's RADIUS C-arm X Ray machine in mainland China. Dehaier originally established a cooperation agreement with IMD in 2003 to begin distribution and sales for IMD's X-Ray machines in the China market, including its C-arm X-ray. IMD's C-arm X-ray machine generally consists of two units, the X-ray generator and an image system on a portable imaging system (C-arm) and a terminal used to store and manipulate the images. It has typically been used by hospitals and physicians for a variety of imaging and photography work and has been well-received by the medical community for its affordable price, stable performance and high quality.

Dehaier's President and CEO, Mr. Ping Chen, stated, "We are very pleased to continue to cooperate with IMD. Our distribution of their products has been a successful and mutually beneficial endeavor for nearly 10 years. We opened significant market opportunities for IMD's C-arm X-Ray machine in China, and the product has successfully sold and generated strong recurring revenue for Dehaier. In 2011, sales of C-arm X-ray machines from all vendors constituted approximately $3.6 million, or approximately 17%, of our total sales. Moving forward, we are hopeful that IMD's products will occupy an increasing percentage of total sales. In addition, we are working diligently to expand into the distribution of new product lines, while simultaneously growing the customer base for our own homecare health products."

First Quarter 2012 Financial and Operating Highlights

• Revenues of $3.3 million, up 12.3%
• Gross profit of $1.2 million, up 24.4%; gross margin improved to 37.4% from 33.8%
• Income from operations of $454,820, an increase of 52.4%
• Net income attributable to the Company of $126,021, or $0.03 per basic and diluted share, compared to$205,414, or $0.04 per diluted share in the prior year. Net income included a non-cash change in fair value of warrants liability of $199,508 in the first quarter of 2012.

Mr. Ping Chen, Chief Executive Officer of Dehaier Medical, stated, "In the first quarter of 2012, we continued to show strong growth in China and have begun to enter international markets. We continue to grow our medical device distribution platform business, which includes working with a number of larger international manufacturers. We recently extended our exclusive agreement with Timesco of London Ltd., a progressive surgical and medical company. Simultaneously, we are developing our own branded product line domestically and abroad. Within China, our homecare medical products, focused primarily on sleep disorder and respiratory ailments, continued to gain traction among Chinese consumers."

Mr. Chen continued, "We are also continuing to diversify our revenues. In the first quarter of 2012, we focused on implementing state-level government-contracted projects. We have placed a strong emphasis on obtaining provincial contracts throughout China, which are larger in size and scale. In March, Dehaier won a new bid to implement a government procurement project to provide imaging equipment for township hospitals in Xi'an, Shaanxi, China. We believe this bid demonstrates how far our Company has grown, indicates the government's faith in our ability to complete these projects, and could significantly contribute to our revenues in 2012."

Ms. Aileen Qi, Chief Financial Officer of Dehaier, commented, "We were pleased with our first quarter financial results, which were in line with the Company's expectations. Our favorable mix of product sales and market share gains led to a 12.3% revenue increase over the prior-year's quarter. Dehaier's growth was mainly driven by sales of our traditional medical devices and government procurement projects. We have also focused on streamlining our costs and improving our inventory management and were pleased to lower our operating expenses as a percentage of sales. This has benefitted the Company considerably during a time of inflationary pressures on our products and has allowed Dehaier to remain cost-competitive."

Outlook for 2012

Mr. Chen concluded, "Over the next few months, our primary focus is to utilize our existing distribution business as a platform to expand and grow into new revenue streams. We launched our home oxygen therapy service ("HOTS") in Beijing in the third quarter of 2011, and our management team remains focused on development and research of products as well as identifying the target customers, which we feel will contribute significantly to our future growth. We also have continued our expansion into the International healthcare market. In early 2012, we received CE Mark approval for our sleep diagnostic devices and air compressors, which will facilitate our efforts to sell our products in the European Union. We are seeking new and cost-effective means of distributing our products worldwide and are always looking for ways to corporate with others. Medical equipment sales and distribution will remain our main source of revenue going forward, and we expect this segment to develop at a stable pace and to serve as our foundation for growth. We will continuously leverage our cross-selling opportunities by expanding existing relationships of third-party distributed products, seeking new distribution partners and building international business for our proprietary products."

BEIJING, April 23, 2012 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical Systems Ltd. (NASDAQ: DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that it has signed a strategic cooperation agreement with Timesco of London Ltd., one of the most progressive surgical and medical companies in the U.K.

Under the terms of this three-year agreement Dehaier will be the exclusive distributor in mainland China for Timesco's entire laryngoscope Optima series of products, which include the CXL and Eclispse series. The presidents of both companies signed the agreement at the 67th China International Medical Equipment Fair in Shenzhen.

A laryngoscope is a viewing instrument that is used for tracheal intubations. The laryngoscope Optima series products offer a broad visual field and better vision for physicians due to its patented light source, while also addressing a variety of clinical demands through a diverse set of models and specifications. The agreement represents a benchmark for Dehaier as a leading distributor in China's laryngoscope market, while also providing a new product channel for the Company to offer its customers across China and ultimately strengthen its market share and increase revenue.

Dehaier's President and CEO, Mr. Ping Chen, commented, "Dehaier has maintained a long-term and reliable partnership with Timesco since 2003; we are currently taking as leading distributor in the laryngoscope market in China. We are glad that Timesco has expressed their appreciation of our product sales and market influence. Dehaier secured our competitive position through a strong and geographically diverse distribution network. We anticipate a comprehensive cooperation with Timesco, and believe this will help enhance our corporate reputation and ultimately agreements such as this will return value for our shareholders."

DHRM adds a statement about the possible need to raise capital to pursue acquisition opportunities.

2011 10K

In 2010, we financed our operations primarily from proceeds of common stock issuances. In 2011, we mainly used the cash proceeds from our IPO and from our operations. As of December 31, 2011, we had approximately $3.69 million in cash and cash equivalents. As a result of the total cash activities, net cash decreased from $5,923,386 at December 31, 2010 to $3,694,486 at December 31, 2011. We believe that our currently available working capital of $26,981,557, including cash of $3,694,486, should be adequate to meet our anticipated cash needs and sustain our current operations for at least 12 months. To the extent we engage in acquisitions in the future, we will need to rely on a variety of sources of funding, including but not limited to operating cash and debt/equity financings. 

Fourth Quarter 2011 Financial Highlights

• For its fourth quarter ended December 31, 2011, the Company reported revenue of $5.4 million, compared to$6.7 million in the prior year period. The decrease was largely due to the adjustment of business strategies that company made in the fourth quarter and second half of 2011 (referenced above), which focused on expanding market penetration of its home oxygen therapy service and international expansion. The Company is spending significant resources on upgrading products and accumulating market insight for these initiatives and expects corresponding revenues from these business areas in the near future.
• The Company's gross profit for the quarter ended December 31, 2011 was $1.8 million, or 33.6% of revenue, compared to $2.5 million, or 37% of revenue in the prior year period. The decrease in gross margin was largely due to increased expenses related to marketing and pursuing our new business initiatives.
• As discussed above, the Company incurred a non-cash charge due to an increase in provision for doubtful accounts of approximately $0.86 million for the year ended December 31, 2011. As a result, the Company reported an operating loss of $46,139 for the period, compared to operating income of $1.5 million in the prior year. The Company also reported a net loss attributable to the Company of $36,104, or negative $0.01per diluted share, compared to net income of $1.5 million, or $0.32 per diluted share, in the fourth quarter of 2010.

Mr. Ping Chen, Chief Executive Officer of Dehaier Medical, stated, "We were very pleased to report steady growth during 2011 as we continue to slowly transition from traditional domestic distribution of medical devices to diversified sales of homecare medical devices, both domestically and internationally. Within China, our homecare medical products, focused primarily on sleep disorder and respiratory ailments, continued to gain traction among Chinese consumers. We also have worked diligently to secure larger, State-level contracted business, as evidenced by our cooperation with China Developmental Bank for healthcare infrastructure projects in Hunan and Anhui provinces. We also worked to establish the first oxygen filling facility and service center for home oxygen therapy service in Beijing, which represents the initial step of expansion into home oxygen therapy treatment domestically."

Mr. Chen continued, "We also recently expanded outside of China, and invested time and resources during the second half of 2011 on increasing our geographic footprint. We received CE Mark certification on three of our products, our Medical Air Compressor, Oxygen Concentrator, and Sleep Diagnostic Devices. We enhanced our sales and distribution channels in international markets, most notably signing with three companies to distribute Dehaier's DHR-5L oxygen concentrators in Romania, which marked Dehaier's first entry into the European homecare medical product market. Finally, we recently established a wholly-owned subsidiary in Illinois, as part of a long-term goal of establishing sales channels in North America. Because of these strategic growth initiatives, we incurred expenses without corresponding revenue; however, as we enter 2012 we believe that these developments will begin to drive a more diverse and robust revenue stream to the Company."

Outlook for 2012

Mr. Chen concluded, "We continue to see strong market trends on the consumer level in the homecare medical device sector in China and expect government expansion and vigorous promotion of healthcare projects by the newly-released state policies over the next five years. We remain confident about the long-term growth prospects for the healthcare sector in China and look forward to continuing to expand our unique product lines and distribution abilities throughout the country. We are also supported by a moderate balance sheet, with $27.0 million in working capital and no long-term debt. As a result, we feel that the Company is in an excellent position to expand into new markets."

The executive officers of Dehaier Medical Systems Limited (the “Registrant”) intend to use the materials filed herewith, in whole or in part, on its website and in one or more meetings with investors and analysts.

BEIJING, Dec. 16, 2011 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical Systems Ltd. (NASDAQ: DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that it has signed on three Romanian companies to distribute Dehaier's DHR-5L oxygen concentrators in Romania. This marks Dehaier's first entry into the European homecare medical product market.

Ms. Rayna Dong, Director of Dehaier's International Business Department said, "We are delighted to establish cooperation with our new distributors in Europe. To extend Dehaier's market reach, our international sales forces have actively sought distribution and OEM opportunities and have participated in international medical equipment trade shows. These activities also promote our market acceptance and brand awareness outside China. We believe that our homecare medical products, such as our full line of sleep-disordered breathing and respiratory products, are not only competitive in terms of quality and price, but also provide all-in-one solution to our end users. Going forward, we will continue to seek distributors to penetrate international markets."

"Our partnership with those distributors in Europe will allow Dehaier to extend its footprint into Europe and marks a significant milestone forward in our international market development plan," commented Mr. Ping Chen, Chief Executive Officer of Dehaier Medical. "We believe that the market potential for our homecare medical products is well beyond the Chinese domestic market. In the coming years, we will continue developing the European and other international markets. As we pursue regulatory approvals in Europe and the United States for more of our products, we aim to sign on more international distributors to reach a wider global market."

Growth Strategies

• We will develop our home oxygen services and expand the service platform to dominate the domestic market for this service in China, and we will also implement value-added business based on the same platform. Eventually, we seek to provide customers with an all-in-one solution in the home healthcare field.

• We will expand our product portfolio through continued investment in research and development and acquisition of companies having proper products complementary to our core business. We plan to release the second generation of home use continuous positive airway pressure products and oxygen concentrators in early 2012. We have received CE mark approval for our sleep diagnostic device DHR-998, which will be marketed in European countries soon.

• We will expand our distribution channels into e-commerce platforms. We plan to create more cross-selling opportunities for our homecare products, while providing oxygen delivery through the service platform.

• We will build our brand name domestically as both a distributor and a trusted partner by leveraging our relationships with healthcare professionals, agents and other downstream distributors, maintaining and expanding our customer base, and promoting business growth steadily.

• We will expand into overseas markets and establish a distribution network, through distribution agreements, OEM partnerships, direct sales force and e-commerce platforms. We will build our brand name by actively participating in international trade shows. We will attempt to have all our homecare medical products approved by the U.S. Food and Drug Administration and its counterpart in Europe.

BEIJING, October 1, 2011 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical (NASDAQ: DHRM) an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced that Aileen Qi has been appointed interim Chief Financial Officer, effective October 1, 2011. Ms. Rita Liu has tendered her resignation as the Chief Financial Officer of Dehaier Medical Systems Limited (the "Company"), effective September 30, 2011. Ms. Liu resigned in order to pursue other professional opportunities, and not due to any disagreement with the Company.

First Quarter Results:

• Revenue increased by 12% year-over-year to $2.95 million, up from $2.64 million in the first quarter of 2010.
• Gross profit was $1.00 million, or 34% of revenue, compared with $0.97 million, or 37% of revenue in the first quarter of 2010.
• Operating income and operating margin were $0.30 million and 10%, respectively, compared with $0.65 million and 25%, respectively, in the first quarter of 2010.
• Net income attributable to the Company was $0.21 million, or $0.04 per diluted share based on 4.7 million weighted average shares outstanding, compared with net income of $0.52 million, or $0.17 per diluted share based on 3.0 million weighted average shares outstanding in the first quarter of 2010.

"Despite the seasonally low first quarter as hospitals and government-sponsored organizations finalize their spending budgets for the year, we increased our sales by 12% from the same period last year. Primary drivers of our year-over-year top line gains included favorable market momentum, as well as increased sales of our medical device products and strong partnerships with third party brand names," said Mr. Ping Chen, CEO of Dehaier. "During the quarter, we made critical investments to build our infrastructure that best position our Company to capture the burgeoning market opportunity for both our medical device and homecare medical products. We continued to dedicate resources to R&D, introducing innovative products for the oxygen and respiratory homecare market, and established a seasoned marketing team to support our expansion initiatives. Although these efforts affected our bottom line in the first quarter, we believe these investments in our future will contribute to sales growth and bolster our profits in 2011 as we continue build on our solid base of customers in both the professional and homecare medical product markets."

We believe that our currently available working capital of $23,148,929, including cash of $3,372,673, should be adequate to meet our anticipated cash needs and sustain our current operations for at least 12 months.

Risk Factors section in 2010 10K is inadequate.

BEIJING, April 25, 2011 /PRNewswire-Asia/ -- Dehaier Medical Systems Ltd. today released the following letter to shareholders from Mr. Ping Chen, Dehaier's Chairman and Chief Executive Officer:

To Our Shareholders, Partners and Friends:

Last week marked the first anniversary of Dehaier's initial public offering and the listing of our shares on the NASDAQ. The year that has passed since our IPO was one of growth and execution, strategically, operationally and financially. Our success in the last year is thanks to the continued advancement of both our medical devices and homecare products.

In 2010, we expanded our distribution business product portfolio by partnering with third party medical device manufacturers, and strengthened our brand through increased domestic marketing. We believe that these efforts will position us well to gain additional share as China's healthcare market continues to mature.

Our solid financial results reflect the strong demand in China for medical devices and the overall health of our business.  In 2010, our revenue of $19.6 million represented a year-over-year increase of 58%.  Our gross profit grew by 57% year-over-year to $7.6 million. Dehaier's net income increased by 70% year-over-year to $4.5 million, or $1.09 per diluted share. Our homecare business was particularly strong, with $4.5 million in sales. Our triple digit revenue growth for the full year in our homecare business resulted in greater balance within our revenue mix, which meets one of our longer-term sales objectives of achieving a nearly equal split between homecare and medical devices.

During the last 12 months, we have accomplished a number of important milestones that give us a great deal of confidence in our ability to build on our record 2010 results with an even stronger 2011.  

Product Portfolio Growth for Distinct End Markets

Our performance in 2010 was the result of strong growth in both our branded and third party medical devices, as well as the continued emergence of our homecare products. The breadth of our product portfolio allows us to address the needs of two fast-growing segments of the market, each with unique but significant growth catalysts.

The professional medical device market, where we offer both branded and third-party products such as anesthesia machines, C-arm X-ray equipment and respiratory therapy equipment, is experiencing tremendous growth as a result of China's New Medical Reform Plan and 12th Five Year Plan, both of which provide for significant government capital investments to improve the quality and availability of healthcare nationwide. The goal of these programs and investments is to give Chinese citizens greater, more cost effective access to high-quality, professional care, regardless of location or financial resources.

Our products and the third party products we distribute are becoming more widely adopted by hospitals, health centers and clinics thanks in part to increased government funding. In order to build our position in this market, we focused throughout 2010 on expanding our network of dealers and distributors and relationships with medical centers. These efforts increased awareness of the products we offer, both directly and as a distributor.

The continued growth of our footprint in the Chinese market has brought Dehaier attention from leading global medical device manufacturers, and in 2010 we expanded our third party device portfolio through exclusive distribution agreements for HEYER Medical's respiratory products and two of Welch Allyn's patient monitors, the Propaq® CS and the Atlas™.

In addition to the growth of our third party distribution portfolio, we won a $2 million medical device distribution bid for a new rural healthcare construction project supported by China Development Bank Corp, through which we will collaborate with Philips Medical Systems, Olympus Corporation of Japan and others to supply newly-built medical facilities with state-of-the-art equipment. This equipment will be used to provide the rural population with a higher standard of care through improved facilities and technology.

While the professional medical device market is substantial, we believe the greatest untapped potential, both domestically and internationally, lies with our homecare products, and we are keenly focused on the ongoing expansion of this line of products. Our full-year homecare product sales increased by over 300% compared with 2009, and continued growing as a percentage of our total sales.

We believe the homecare market will remain strong for the foreseeable future and are committed to capturing greater market share as it continues to mature. In addition to leveraging our strong dealer, distributor and hospital network, where we have built a great deal of brand equity as a result of our professional medical devices, we are employing non-traditional marketing tools to reach out directly to potential homecare customers.

During 2010, we opened 12 Customer Experience Centers (CECs), which provide patients and medical professionals a convenient way to experience our products and services in a safe, comfortable environment, designed to reduce the stress associated with beginning such treatments. These CECs have been popular with potential customers, and we plan to open an additional 20 Centers by the end of 2011, giving Dehaier a direct presence in many of China's key geographic areas.

Market Dynamics and Strategic Growth

The healthcare market in China is poised for significant growth as a result of increasing government investment in improving the quality and availability of healthcare in China to fall more closely in line with healthcare in other developed nations. In addition, a growing percentage of Chinese citizens' personal wealth is being spent on health and wellness-related initiatives. We believe that Dehaier is positioned to capitalize the growth of China's emerging healthcare industry and, more importantly, its nascent medical device and homecare market.

While a favorable market is necessary for sustained growth, the market alone will not be enough to propel Dehaier to the next level of success. We have a multi-faceted growth strategy that we are constantly reviewing and refining in an effort to capture additional market share, continue building brand equity and expand our business, both domestically and internationally, with the ultimate goal of increasing shareholder value. Going forward, our primary strategic focus will be on:

• Building our brand domestically as both a manufacturer and a trusted partner by leveraging our relationships with healthcare professionals, agents and distributors, and expansion of our CEC concept as a sales and marketing tool for both consumers and medical professionals.

• Expanding our product portfolio through innovative R&D. We are currently targeting the introduction of four to eight new products for the domestic market this year, with a primary focus on additions to our oxygen and respiratory homecare offering.

• Diversifying our base of third party distributed products by expanding relationships with existing partners and establishing partnerships with additional device manufacturers.

• International expansion into the US and Europe, where several of our homecare products are currently under review by the Food and Drug Administration (FDA) in the US and Conformite Europeenne (CE) in the European Union.

 

Looking Ahead

Given our efforts and accomplishments to date, attractive markets, financial growth and clear growth strategy, we are optimistic about Dehaier Medical's continued success throughout 2011 and well into the future.

The overall healthcare market in China has grown significantly in recent years, with increasing awareness of health issues creating demand for improved infrastructure and higher levels of medical care in both urban and rural areas. We believe our cooperation with China Development Bank on rural medical care will generate more opportunities to grow our presence and build our reputation, particularly in the country's underdeveloped areas, where the need for products such as ours is greatest.

Additionally, last week, we announced a strategic cooperation agreement with Taiyo Nippon Sanso Shenwei (Shanghai) and Beijing Orient, two major medical gas providers in the global and Chinese market, to develop home oxygen therapy service in Beijing. We believe this cooperation will further solidify our market position in product and service offering.

We expect these initiatives, coupled with the successful execution of our growth strategy, will drive continued financial and operational growth, and enhance value for shareholders. On behalf of the entire Dehaier family, thank you for sharing in our success to date and being a partner in our future.

Best Regards,

Ping Chen,

 

 

 

Chairman, Chief Executive Office

We believe that our currently available working capital of $22,618,735, including cash of $5,923,386, should be adequate to meet our anticipated cash needs and sustain our current operations for at least 12 months.

On March 22, 2010, the founders of the Company placed an aggregate of 600,000 common shares of the Company into escrow. Such shares equaled 40% of the maximum number of shares which were sold in the initial public offering (“IPO”). The shares were required to remain in escrow until the Company files its Form 10-K with the Securities and Exchange Commission for the year ended December 31, 2010. The shares in escrow (Make-Good Shares) were accounted for as an element in the IPO and the Company will not recognize any compensation expense upon the return of such Make-Good Shares to the holders.

To the extent the Company’s earnings per share for the year ended December 31, 2010 were less than $0.80, the Company would have been required to redeem, pro rata, such shares in order to cause the effective earnings per share to equal $0.80. For the year ended December 31, 2010, however, the earnings per share of the company was $1.09, or approximately 36% higher than the per share price upon which the Company’s initial public offering valuation was based. Thus, the Company does not need to redeem or prorate such shares. The shares will be returned to the founders 45 days after the filing of this Form 10-K. These shares are included as part of the calculation of the basic and diluted earnings per share for all the periods presented in the accompanying consolidated financial statements.

Fourth Quarter 2010 Financial Highlights

• Revenue increased by 126% year-over-year to $6.7 million, up from $2.9 million in the fourth quarter of 2009.
• Revenue from homecare solutions grew dramatically by 998% year-over-year to $2.3 million, or 34% of total revenue, up from $209,000 in the fourth quarter of 2009.
• Gross profit increased by 119% year-over-year to $2.5 million, or 36.9% of revenue, up from $1.1 million, or 38.2% of revenue in the fourth quarter of 2009.
• Operating income and operating margin were $1.5 million and 22.8%, respectively, compared with $764,000 and 25.9%, respectively, in the fourth quarter of 2009.
• Net income attributable to the Company improved 145% to $1.5 million, or $0.32 per diluted share based on 4.7 million weighted average shares outstanding, compared with net income of $602,000, or $0.20 per diluted share based on 3.0 million weighted average shares outstanding in the fourth quarter of 2009.
• Strengthened balance sheet with $5.9 million in cash and cash equivalents, or $1.27 per diluted share, as of December 31, 2010, compared with $1.2 million as of December 31, 2009.
• Adjusted EPS was $036 vs. $0.20.

Full Year 2010 Financial Highlights

• Revenue increased by 58% year-over-year to $19.6 million, up from $12.4 million in 2009.
• Revenue from homecare solutions tripled to $4.5 million, up from $1.1 million in 2009.
• Gross profit increased by 57% year-over-year to $7.6 million, or 38.9% of revenue, up from $4.9 million, or 39.3% of revenue in 2009.
• Operating income and operating margin were $5.1 million and 26.2%, compared with $3.4 million and 27.1% in 2009, respectively.
• Net income attributable to the Company increased 70% to $4.5 million, or $1.09 per diluted share based on 4.2 million weighted average shares outstanding, compared with net income of $2.7 million, or $0.89 per diluted share based on 3.0 million weighted average shares outstanding in 2009.
• Adjusted EPS was $1.16 vs. $0.89.

"2010 was a record year for Dehaier. We achieved strong growth across both our branded and third party medical devices, as well as our homecare products businesses, while positioning the Company for success in 2011 and beyond," said Mr. Ping Chen, CEO of Dehaier. "Key to our growth in 2010 was the continued advancement of our homecare products business, in which we achieved triple-digit gains for both the fourth quarter and full year. While the domestic market presents a compelling growth opportunity, international expansion is a critical element of our longer-term strategy and we are making meaningful progress in this regard, with several of our respiratory therapy homecare products currently pending regulatory approval in the United States and European Union. We believe that securing these approvals and rolling out our products in targeted international markets will provide another important catalyst for our business and help propel Dehaier to the next level of top- and bottom-line growth."

On December 6, 2010, the Board of Directors of the Registrant concluded that the audited consolidated financial statements included in the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2009, originally filed with the Securities and Exchange Commission on March 31, 2010 , should no longer be relied upon due to an understatement of the weighted average number of common shares outstanding, assuming dilution, as of December 31, 2009. Specifically, the Registrant determined that the dilutive effect of convertible preferred shares at December 31, 2009 was understated by 923,392 shares. This resulted in the weighted average number of common shares outstanding, assuming dilution, at December 31, 2009 also being understated by 923,392 shares. In turn, diluted earnings per share for the year ended December 31, 2009 was overstated by $0.40 per share.

We believe that our currently available working capital of $18,011,309, including cash of $4,964,450, should be adequate to meet our anticipated cash needs and sustain our current operations for at least 12 months.

Third Quarter 2010 Financial Highlights

• Revenues for the third quarter of fiscal year 2010 increased by 52.1% year-over-year to $5.5 million, up from $3.6 million in the third quarter of 2009.

• Net income attributable to the Company for the third quarter increased 38.2% year-over-year to $1.4 million, compared with $1.0 millionfor the third quarter of 2009.

• Gross margin for the third quarter was 41.4% based on gross profit of $2.3 million, compared with a 41.4% margin in the same period last year.

• Operating income and operating margin for the third quarter were $1.6 million and 29.4%, respectively, compared to $1.2 million and 34.5%, respectively, in the third quarter of 2009.

• Earnings per diluted share were $0.30 for the quarter, compared with diluted EPS of $0.34achieved in the same period a year ago.

Mr. Ping Chen, CEO of Dehaier, stated, "We are very pleased with the 52% sales growth we achieved during the third quarter. As the domestic medical equipment market continues to grow, driven by national healthcare reform initiatives, we will capitalize upon our strong partnerships with leading global manufacturers to increase our market share."

Mr. Chen continued, "Our home healthcare equipment segment is a major strategic focus for Dehaier, and we plan to grow this part of our business by diversifying our product line, aggressively developing our domestic sales network, and expanding into international markets. Building upon our successful market penetration in China, we remain fully committed to becoming a leader in the global respiratory and oxygen homecare market."