Linkwell Corporation Announces 2006 Year End Financial Results, Record Revenues and Net Income

2007-04-04 09:21 856

SHANGHAI, China, April 4 /Xinhua-PRNewswire/ -- Linkwell Corporation (OTC Bulletin Board: LWLL), a leading developer, manufacturer and distributor of healthcare-related disinfectants in China, today announced its financial results for the year ended December 31, 2006.

The Company recorded revenues of approximately $7.75 million for the year ended December 31, 2006; representing an approximately 42% increase from $5.47 million in revenues recorded for 2005. Gross profit for the year ended December 31, 2006 was $3.136 million, representing an approximately 47% increase from gross profit of $2.137 million in 2005. The GAAP net income for 2006 was $568,120 or $0.01 earnings per share, compared to a loss of $1,267,387 or $(-0.03) per share for 2005. Net income from Chinese operations for 2006 were $1,161,828 (non-GAAP Earnings: $0.02 per share), reflecting an increase of approximately 82% from $636,468 recorded net income for the year ended December 31, 2005 (non-GAAP earnings: $0.01 per share).

Excluding non-cash charge associated with stock-based compensation for professional advisors, non-cash charge of non-distributable preferred stock dividend, and registration penalty charge, the company recorded approximately $1,161,828 in net income or $0.02 earnings per share for 2006.

The shareholders' equity at December 31, 2006 increased to $3,944,898, an approximately 38% increase from $2,850,555 in shareholders' equity at December 31, 2005. At December 31, 2006, working capital was $4.339 million, an approximately 80% increase from $2.413 million in working capital at December 31, 2005.

Linkwell's Chairman and CEO, Mr. Xuelian Bian, commented, "We are pleased to report another strong fiscal year performance. In 2006 we focused on a number of strategic initiatives including improving the breadth and quality of our core product portfolio, penetrating new markets and improving operating efficiency of our administrative, manufacturing and distribution structures. We achieved success in these areas through acquisition and a program of continuous internal efficiency improvements."

Mr. Bian added, "Moving into 2007, we intend to continue to market our leading brands, further expand our channels of distribution, partner strategically with a major multinational company, identify further cost savings throughout our business, and pursue acquisitions that will extend our distribution network and/or be complementary to our current business. We are committed to maintaining our leadership status as an innovator in the healthcare-related disinfectant industry in China. We believe our initiatives in 2007 will continue to enhance our performance and expand our presence in the marketplace. We are energized with our opportunities and we will continue to work aggressively to maximize our performance and return for our shareholders."

For more details about Linkwell's financial performance, please review the 10-KSB filed with the United States Securities and Exchange Commission.

About Linkwell Corporation

Linkwell Corporation develops, manufactures, and distributes disinfectant healthcare products in China through its 90% owned subsidiary Shanghai Likang Disinfectant High Tech Company ("Likang"). Linkwell's disinfectant healthcare products are a nationally recognized domestic Chinese brand in this market segment. Linkwell products include disinfectants in liquid, tablet, powder and aerosol form. Through Likang, Linkwell has a national marketing and sales presence throughout all 22 provinces, 5 autonomous regions, and 4 special municipalities of China. For more info about the company, please visit

Safe Harbor Statement

Certain of the statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "forecast," "anticipate," "plan," or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties and risks, including those relating to the Company's ability to grow its business. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.

Source: Linkwell Corporation
Related Stocks: