SHANGHAI, Aug. 17 /PRNewswire-Asia/ -- Linkwell Corporation (OTC Bulletin Board: LWLL), a leading developer, manufacturer and distributor of healthcare related disinfectants in China, has filed its Form 10-Q report on operating results for the second quarter of 2009.
Up to the recent six months ending June 30, 2009, the company had total revenues of $6.37m, compared with the $4.76m in the prior year’s second quarter. Gross profit for the 2009 second quarter amounted to $3.8m from $2.37m in the second quarter of 2008, up 60%. Net income soared to $1.49m from $367,000 in the same period a year earlier, increasing 307%.
"We are very pleased with our first half year results," said Mr. Xuelian Bian, the Company’s Chief Executive Officer. "As a big disaster to the whole of mankind, H1N1 does bring great opportunity to the disinfectant business sector. The sales of the company rose explosively due to the dramatically increasing demands from hospitals all over the country."
"In spite of the increase of marketing and sales fees lately, the company still kept more than a 30% growth speed in total revenues. Attributing to the good relations with the Chinese Health Ministry, Centre of Disease Control and thousands of hospitals across the whole country, the company could still maintain the rapid growth continually over the long term," Mr. Bian observed.
"Our present manufacturing facilities and production capacities are sufficient for the foreseeable future, except for the storage capacity. We have finished the first phase new warehouse building project with 1,500 square meters in this July and a completed second phase of 1,000 square meters is due this September. We have rebuilt part of our production facilities and also greatly expanded the chlorine disinfectant product line in order to meet the sharply increased market demands," Mr. Bian added.
"It is estimated that the disinfection industry will get a boom development in the near future in China, with the rapid economical development and the improvement of living standards, as well as the increasing number of contagious disease outbreaks worldwide. The Chinese Health Ministry has devoted more capital and resources into the construction of facilities, strengthening of hygiene standards and the education of how to prevent epidemics. Among the 4 trillion Yuan economic stimulus package plan that the Chinese government announced late last year, the health and medical sector would share the majority. The disinfection industry now faces a very good opportunity to expand the market share and for us to improve the core competence of the company," Mr Bian concluded.
The full SEC report filed by Linkwell may be seen at: http://www.sec.gov/Archives/edgar/data/1042463/000114420409043482/v158093_10q.htm
About Linkwell Corporation
Linkwell Corporation, through its 90% ownership of its subsidiary, Linkwell Tech Group, Inc., develops, manufactures and distributes disinfectant healthcare products in China. Linkwell’s disinfectant healthcare products are recognized as one of leading domestic Chinese brands in this market segment. Linkwell currently has 56 different products including disinfectants in liquid, tablet, powder and aerosol forms. Linkwell has a national marketing and sales presence throughout all 22 provinces, 5 autonomous regions, and 4 special municipalities of China. For more information, please visit http://www.linkwell.us .
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company’s operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products; pricing and new technology; changes in consumer preferences and tastes; effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production; and other factors as those discussed in the Company’s reports filed with the Securities and Exchange Commission from time to time. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
