Revenues Grow 22.4%, With Net Income Growing 87.8% to $3 Million, or $.04 EPS
SHANGHAI, April 19 /PRNewswire-Asia/ -- Linkwell Corporation
(OTC Bulletin Board: LWLL) (the "Company", or "Linkwell"), a leading developer, manufacturer and distributor of healthcare related disinfectants in China, recently reported its financial results for the fiscal year ended December 31, 2009.
Full Year 2009 Financial Highlights:
-- Net revenues for the year ended December 31, 2009 were $14,666,782, as
compared to net revenues of $11,985,924 for the year of 2008, an
increase of 22.4%;
-- Net income for the year ended December 31, 2009 was $3,060,793, an
increase of approximately 88% compared to $1,629,270 for 2008;
-- Gross Margin increases from 50.2% in 2008 to about 55.7% in 2009, while
net margin improves more than 700 basis points year over year. The
Company's after tax net margin was 20.9% in fiscal year 2009 as
compared to net margin of 13.6% in 2008;
-- Net cash provided by operating activities for the year ended December
31, 2009 was $1,670,710, as compared to $204,377 for the same period of
2008, an increase of $1,466,333 or approximately 717.5%;
-- Fully diluted earnings per share was $0.04 in 2009 based on total
share outstanding of 79,324,441 shares, as compared to $0.02 in 2008
based on 75,549,558 shares.
"We are very proud to deliver one of the best year end financial results in Linkwell's recent history," commented by Mr. Xuelian Bian, Chairman & CEO of Linkwell Corp., "Despite one of the worst financial crises in our recent memory; Linkwell management team continues to execute our long term growth plan very effectively and efficiently in 2009. We have dramatically improved our product quality and manufacturing capability. In 2010, we aim to allocate more resources on research and development of new products, as well as strengthen our marketing efforts. Our goal is to maintain and increase Linkwell's leadership position in Chinese hospital disinfectants industry, while expanding into other high growth and high margin segment of disinfectants market, such as consumer and other commercial usage markets."
Mr. Bian concluded, "we also want to thank our shareholders for their confidence in our management team, and their long term support in the past few years. We are very confident that we will build long term shareholder value by leveraging our strength in Chinese healthcare disinfectant industry, and articulating our growth story to more new and existing investors."
LINKWELL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31,
2009 2008
ASSETS
CURRENT ASSETS
Cash and cash equivalent $2,144,360 $2,072,687
Accounts receivable, net 4,033,718 3,526,440
Accounts receivable - related parties, net 5,798,368 3,470,553
Other receivables 254,166 204,480
Inventories, net 2,055,986 1,207,352
Prepaid expenses and other current assets 263,643 339,378
Deposits 1,103,445 --
Due from related parties -- 2,158,077
Total current assets 15,653,686 12,978,967
NON-CURRENT ASSETS
Property, plant and equipment - net 2,057,758 703,935
Intangible assets, net 513,648 --
Total Non-current assets 2,571,406 703,935
Total assets $18,225,092 $13,682,902
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Loans payable $380,774 $744,069
Accounts payable and accrued expenses 2,092,995 1,508,271
Advances from customers 142,138 91,326
Taxes payable 257,824 220,103
Other payables 154,673 368,690
Due to related parties 518,631 94,583
Total current liabilities 3,547,035 3,027,042
Put option liability 2,400,000 2,281,030
Total liabilities 5,947,035 5,308,072
STOCKHOLDERS' EQUITY
Preferred Stock (No par value;
10,000,000 authorized, no shares
issued and outstanding at December
31, 2009 and 2008, respectively) -- --
Common Stock ($.0005 par value,
150,000,000 authorized, 86,605,475
and 77,955,475 shares issued and
outstanding at December 31, 2009
and 2008, respectively) 43,303 38,978
Additional paid-in capital 7,474,021 6,512,346
Statutory surplus reserve 802,749 561,222
Retained earnings 3,250,115 430,849
Deferred compensation (307,542) (318,556)
Accumulated other comprehensive income 633,970 1,031,021
Total company stockholders'
equity 11,896,616 8,255,860
NONCONTROLLING INTEREST 381,441 118,970
TOTAL EQUITY 12,278,057 8,374,830
TOTAL LIABILITIES AND EQUITY $18,225,092 $13,682,902
LINKWELL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31,
2009 2008
NET SALES
Non-related companies $9,299,120 $9,362,364
Related companies 5,367,662 2,623,560
Total Net Sales 14,666,782 11,985,924
COST OF SALES (6,501,335) (5,963,830)
GROSS PROFIT 8,165,447 6,022,094
OPERATING EXPENSES
Selling expenses 1,598,134 1,083,431
General and administrative 2,409,104 2,432,327
Total Operating Expenses 4,007,238 3,515,758
INCOME FROM OPERATIONS 4,158,209 2,506,336
OTHER INCOME (EXPENSES)
Other income expenses (71,451) (66,554)
Put option expenses -- (281,030)
Interest income 4,752 6,455
Interest expense (55,198) (64,191)
Total Other Expenses, net (121,897) (405,320)
INCOME FROM CONTINUING OPERATION, BEFORE TAX 4,036,312 2,101,016
INCOME TAX EXPENSE (594,078) (387,324)
INCOME FROM CONTINUING OPERATION, NET OF TAX 3,442,234 1,713,692
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX -- 65,083
NET INCOME INCLUDING NONCONTROLLING INTEREST 3,442,234 1,778,775
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTEREST (381,441) (149,505)
NET INCOME ATTRIBUTABLE TO LINKWELL CORP 3,060,793 1,629,270
OTHER COMPREHENSIVE INCOME
Foreign currency translation (397,051) 444,138
COMPREHENSIVE INCOME $2,663,742 $2,073,408
BASIC AND DILUTED INCOME PER COMMON SHARE
Basic earnings per shares from
continuing operation $0.04 $0.02
Basic earnings per shares including
discontinued operation $-- $0.02
Diluted earnings per shares from
continuing operation $0.04 $0.02
Diluted earnings per shares including
discontinued operation $-- $0.02
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 79,275,338 75,339,667
Diluted 79,324,441 75,549,558
About Linkwell Corporation
Linkwell Corporation, through 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 include disinfectants in liquid, tablet, powder and aerosol form. Linkwell has a national marketing and sales presence throughout all 22 provinces, 5 autonomous regions, and 4 special municipalities of China.
Ecolab Inc. (NYSE:ECL - News), the global leader in cleaning, sanitizing, food safety and infection prevention products and services, owns the remaining 10% of Linkwell Tech Group, Inc.
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. Please visit www.sec.gov for all company's filings.
