omniture

Linkwell Corporation Announces Full Year 2009 Financial Results

2010-04-19 20:15 776

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.

Source: Linkwell Corporation
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