SHENZHEN, China, Aug. 9, 2012 /PRNewswire-Asia/ -- Winner Medical
Group Inc. (Nasdaq: WWIN) ("Winner Medical" or the "Company"), a
leading China-based exporter and retailer of high-quality medical
dressings and consumer products made from 100% cotton, today
reported consolidated financial results for the third quarter of
fiscal 2012, which ended June 30,
2012.
Third quarter of Fiscal 2012 Financial Highlights
- Revenues increased by 16.0% to $48.2
million from $41.5 million in
the same quarter of fiscal 2011.
- Gross Profit increased by 8.2% to $12.2
million from $11.3 million in
the same quarter of the previous fiscal year.
- Gross Margin decreased to 25.4% from 27.2% in the same quarter
of fiscal 2011.
- Net Income attributable to Winner Medical decreased by 32.0% to
$2.3 million from $3.4 million in the same quarter of the previous
fiscal year.
- Basic and Diluted Net Income per Share were $0.10 and $0.09,
respectively.
Mr. Jianquan Li, chairman and
chief executive officer of Winner Medical, commented, "I am pleased
to report that we achieved a double-digit topline growth rate
despite very challenging conditions in key export markets such
Europe and Japan. As we have seen in previous
quarters, we had to respond with lower selling prices in
Europe because of the ongoing debt
crisis and tightening budgets at hospitals. Such pressures in
overseas markets were offset by domestic sales in China, which surged by 76.5% year-over-year to
$15.9 million from $9.0 million."
Mr. Li continued, "In the third quarter of fiscal 2012, our
sales of PurCotton® consumer products in supermarkets and
department stores in China
continued to grow, further extending the progress made in past
quarters and contributing to China's rise to be our second-largest
market globally. The Company's consumer sales doubled,
totalling $2.8 million as compared to
$1.4 million in the third quarter of
fiscal 2011. As of June 30, 2012, the
Company operated 44 retail stores throughout China, compared to 37
as of June 30, 2011. As brand
building and retail network expansion of this type requires
significant upfront investments, we do not expect that our
PurCotton® retail business will be profitable in the near
term."
Third quarter of Fiscal 2012 Financial Performance
Revenues in the third quarter of fiscal 2012 increased by
16.0% to $48.2 million from
$41.5 million in the same quarter of
the previous fiscal year. The increase was mainly attributable to
the robust sales of medical products and PurCotton® products in
China offsetting sluggish or
declining export sales.
Revenue By Geography
- Europe: Europe remained the Company's largest market
with strong sales of $16.4 million,
representing a slight annual increase of 2.1% from $16.1 million in the same quarter of fiscal 2011.
Of note, sales generated from Britain decreased by 34.8% year over year, or
$1.5 million, due to: (1) one
customer's restructuring of its supply chain, which resulted in
reduced inventory stock levels; and (2) lower average selling
prices for products. Sales generated from Sweden decreased US$271,000, or 9.8%, as a result of lower average
selling prices. As a percentage of total sales, sales in
Europe were 34.1% for the three
months ended June 30, 2012, down from
38.7% in the same quarter of the previous fiscal year.
- North and South America: Sales
in North and South America
decreased by 14.7%, to $7.3 million
from $8.6 million for the same period
last year. Of note, sales generated from the United States increased US$885,000, or 18.0%, during the three months
ended June 30, 2012, as the Company
enhanced its sales efforts in the U.S., despite one of its major
customers decreasing its orders due to an adjustment of its
procurement plans for certain medical dressing products during the
three months ended June 30,
2012.However this increase was partly offset by a decrease in
orders from Brazil. The Company
believes that this was mainly due to customers in Brazil not making consistent orders each
month. As a percentage of total sales, sales in North and
South America were 15.1% in the
third quarter of fiscal 2012 compared to 20.6% in the same quarter
of the previous year.
- Japan: Sales in Japan saw a decline of 12.5% year over year to
$5.4 million from $6.2 million, as a number of Japanese customers
reduced orders because of overstocked inventory that had
accumulated from excess purchases following Japan's Tohoku earthquake of March 11, 2011. As a percentage of total sales,
sales in Japan were 11.3% in the
third quarter of fiscal 2012 compared to 14.9% in the same quarter
of the previous year.
- China: China has surpassed North and South America to become the Company's
second-largest market. Domestic sales increased significantly by
76.5% year-over-year to $15.9 million
from $9.0 million, mainly driven by
increased sales of "Winner" branded medical products and
"PurCotton®" branded products. Sales of medical products in
China increased to $6.7 million, representing a growth rate of 83.4%
compared to the same quarter of the previous fiscal year. This
increase was mainly due to the Company's continuing efforts to
expand its sales channels, including increasing the number of local
distributors to cover more hospitals and penetrate deeper into
existing hospitals, chain drug stores and other sales channels.
Sales of PurCotton® products rose to $9.2
million, an increase of 71.9% from the same quarter of the
previous fiscal year. As a percentage of total sales, sales in
China increased to 33.0% in the
third quarter of fiscal 2012 compared to 21.7% in the third quarter
of fiscal 2011.
- Other Regions: Net sales generated from other regions increased
by 85.7% in the third quarter of fiscal 2012 to $3.1 million from $1.7
million in the same quarter of the previous year. This
increase in sales was due to the Company's enhanced sales efforts
in the Middle East and
Africa markets.
Revenue By Products
Sales generated from medical products increased by 7.8%
to $39.0 million in the third quarter
of fiscal 2012 from $36.2 million in
the third quarter of fiscal 2011. As a percentage of total sales,
sales from medical products were 80.9% in the third quarter of
fiscal 2012 compared to 87.1% in the same quarter of fiscal
2011.
Sales generated from PurCotton® products increased by
71.9% to $9.2 million in the third
quarter of fiscal 2012 from $5.4
million in the third quarter of fiscal 2011. As a percentage
of total sales, sales from PurCotton® branded products were 19.1%
in the third quarter of fiscal 2012 compared to 12.9% in the same
quarter of the previous year.
- Material supplies of PurCotton® branded jumbo rolls
totalled $6.4 million, representing a
substantial increase of 59.6% compared to $4.0 million in the third quarter of fiscal 2011.
The increase was due to higher demand from China-based existing and
new customers who use jumbo rolls for home care and hygienic
products.
- Retail sales of PurCotton® branded consumer products
totalled $2.8 million compared to
$1.4 million in the third quarter of
fiscal 2011. The jump in sales was driven by the opening of more
retail stores and improved sales in the Company's existing stores,
online sales platforms and mass distribution channels. As of
June 30, 2012, the Company operated
44 retail stores throughout China, compared to 37 as of
June 30, 2011. PurCotton® consumer
products have been receiving positive feedback and gaining brand
recognition, as evidenced by increased sales and customer loyalty
program memberships.
Cost of sales increased by 19.0% to $36.0 million in the third quarter of fiscal 2012
from $30.2 million in the same
quarter of the previous fiscal year. The cost of sales as a
percentage of revenue was 74.6% and 72.8% for the three months
ended June 30, 2012 and 2011,
respectively. The increase in cost of sales was mainly attributable
to: (1) an approximate 15% salary cost increase (which included
welfare and social insurance for employees); and (2) an
approximately US$818,000 depreciation
and impairment cost related to a factory workshop owned by Hubei
Winner and painting equipment owned by Winner Medical (Huanggang)
Co., Ltd.
Gross profit increased by 8.2% to $12.2 million in the third quarter of fiscal 2012
from $11.3 million in the same
quarter of the previous fiscal year. Gross margin decreased
to 25.4% from 27.2% in the third quarter of fiscal 2011. The
decrease in gross margin was mainly due to: (1) lower selling
prices to customers in Europe and
the United States. Challenging
global economic conditions, especially in Europe and North
America, have forced governments in those areas to tighten
public expenditures, leading to a more stringent budget for medical
products. In order to maintain long-term cooperation with those
customers, the Company offered certain products with lower selling
prices than before to maintain and attract orders during the
current economic climate. The Company expects that ongoing
adjustments of selling prices might continue, subject to global
economic conditions and customer demands; (2) approximately
US$818,000 in depreciation and
impairment costs related to a factory workshop owned by Hubei
Winner Textile Co., Ltd. and painting equipment owned by Winner
Medical (Huanggang) Co., Ltd.; and (3) an approximate 15% salary
increase (which included welfare and social insurance for
employees).
Government subsidies increased to approximately
$170,000 in the third quarter of
fiscal 2012 from approximately $90,000 in the same quarter of the previous
fiscal year. The increase was mainly driven by an increase in
financial incentives from the Shenzhen government as compared to the same
period of fiscal 2011.
Gain from commodity derivatives was approximately
$93,000 on cotton futures products in
the third quarter of fiscal 2012 compared to approximately
$65,000 in the same quarter of the
previous fiscal year. This modest increase in gain resulted from
implementation of more stringent trading policies and process
controls since the establishment of the Company's Commodity Trading
Center in July 2011.
Foreign exchange gains for the three months ended
June 30, 2012 increased approximately
$471,000 to approximately
$200,000, from a loss of $271,000 for the same period of the previous
fiscal year. The increase in gains was mainly due to the Company's
involvement in foreign trades with international customers, the
majority of which were settled in U.S. Dollars. On June 30, 2012 and April 1,
2012, the exchange rates of the RMB against the U.S. Dollar
were 6.3249 and 6.3035, respectively; the depreciation of the RMB
against the U.S. Dollar by 0.34% resulted in exchange gains for the
three months ended June 30, 2012.
In order to minimize currency exchange risk, the Company has
been reinforcing and expanding its business in China market and inserting clauses into
contracts stipulating that the selling price is subject to the
fluctuation of currency and the price of raw materials.
Selling, general and administrative expenses increased by
45.0% to $10.6 million in the third
quarter of fiscal 2012 from $7.3
million in the same quarter of the previous fiscal year. As
a percentage of total sales, SG&A expenses were 22.0% and 17.6%
for the third quarter of fiscal 2012 and 2011, respectively. The
increase in selling, general and administrative expenses resulted
from increases in expenses related to the Company's going private
transaction, salary, leasing expenses, domestic transportation
expenses and advertising fees, as well as new product sales fees
for PurCotton® retail products.
Interest expenses decreased to approximately $125,000 for the three months ended June 30, 2012 as compared to approximately
$135,000 for the same period last
year, a change of approximately $10,000.
Income tax credit in the third quarter of fiscal 2012 was
approximately $55,000 as compared to
income tax provision of approximately $565,000 in the same quarter of the previous
fiscal year. Income tax credit as a percentage of income before
income taxes was 2.4% for the three months ended June 30, 2012 as compared with income tax
expenses as a percentage of income before income taxes of 14.1% for
the same period of fiscal 2011. The different effective tax rates
for the three month period ended June 30,
2012 was mainly due to the recognition of 150%
tax-deductible preferential policy on research and development
expenses of approximately $322,000,
which was confirmed by the tax authority during this quarter, and
the recognition of a deferred tax asset for Shenzhen PurCotton
Technology Co., Ltd. and Hubei Winner Textile Co., Ltd. for the
three months ended June 30, 2012, as
the Company expects that the losses from PurCotton retail business
can be utilized before such expiration period.
Net income attributable to Winner Medical decreased by
32.0% year-over-year to $2.3 million
from $3.4 million in the third
quarter of fiscal 2011. Net margin decreased to 4.8% in this
reporting quarter compared to 8.2% in the third quarter of fiscal
2011. The decrease in net income and net margin was primarily due
to: (1) lower selling prices to customers in Europe and the
United States due to the economic downturn; (2) depreciation
and impairment expenses of approximately $818,000 relating to the Company's factory
workshops and facilities; (3) advertising fees, slotting allowances
and bar code expenses paid to stores for the PurCotton retail
business; and (4) expenses relating to the Company's going-private
transaction. The Company's PurCotton retail business experienced
after-tax losses of approximately $984,000 and approximately $852,000 for the three months ended June 30, 2012 and 2011, respectively. The Company
regards these losses as strategic losses which reflect initial
expenses by the Company for brand-building and expansion of online
and offline distribution channels.
Basic and diluted net income per share were $0.10 and $0.09,
respectively, for the third quarter of fiscal 2012 versus
$0.14 for each for the same quarter
of the previous fiscal year.
First Nine Months of Fiscal 2012 Financial
Performance
Revenues in the nine months ended June 30, 2012 increased by 20.6% to $130.8 million from $108.5
million in the same period of the previous fiscal year. The
increase was mainly attributable to significant continuing demand
from existing and new customers in Europe and the robust expansion of sales of
medical products and PurCotton® products in China.
Cost of sales increased by 24.6% to $97.6 million in the nine months ended
June 30, 2012 from $78.3 million in the same period of the previous
fiscal year. The cost of sales as a percentage of revenue was 74.6%
and 72.2% for the nine months ended June 30,
2012 and 2011, respectively.
Gross profit increased by 10.3% to $33.2 million in the nine months ended
June 30, 2012 from $30.1 million in the same period of the previous
fiscal year. Gross margin decreased to 25.4% from 27.8% in
the same period of the previous fiscal year.
Government subsidies decreased to approximately
$416,000 in the nine months ended
June 30, 2012 from $1.3 million in the same period of the previous
fiscal year.
Gain from commodity derivatives was approximately
$167,000 on cotton futures products
in the nine months ended June 30,
2012 compared to a loss of $1.7
million in the same period of the previous fiscal year.
Foreign exchange losses were approximately $83,000 in the nine months ended June 30, 2012 compared to $415,000 for the same period of the previous
fiscal year.
Selling, general and administrative expenses increased by
33.4% to $25.5 million in the nine
months ended June 30, 2012 from
$19.2 million in the same period of
the previous fiscal year. As a percentage of total sales, SG&A
expenses were 19.5% and 17.7% for the nine months ended
June 30, 2012 and 2011,
respectively.
Interest expenses increased slightly to approximately
$229,000 for the nine months ended
June 30, 2012 from approximately
$228,000 for the same period last
year.
Income tax provision in the nine months ended
June 30, 2012 was $1.8 million, as compared to $1.3 million in the same period of the previous
fiscal year. Income tax as a percentage of income before income
taxes was 21.4% for the nine months ended June 30, 2012 compared with 12.5% for the same
period of the previous fiscal year.
According to PRC tax laws, a company's pretax income in the
current year cannot offset a loss that occurred more than five
years ago. As the Company expects that its pretax income from the
PurCotton® retail business may not be sufficient to utilize
the unused pretax losses before they expire, the Company recognized
an approximately $907,000 valuation
allowance for unused tax losses arising from the calendar years
2010 and 2011 for its retail business for the nine months ended
June 30, 2012, which was offset by
the recognition of a 150% tax-deductible preferential policy on
research and development expenses of approximately $322,000, which was confirmed by the tax
authority during this quarter. This resulted in a comparatively
higher effective tax rate for the nine-month period ended
June 30, 2012 as compared to the same
period last year.
Net income attributable to Winner Medical decreased by
25.3% year-over-year to $6.8 million
from $9.0 million in the nine months
ended June 30, 2011. Net
margin decreased to 5.1% in this reporting period compared to
8.3% in the nine months ended June 30,
2011.
Basic and diluted net income per share were $0.28 and $0.27,
respectively, for the nine months ended June
30, 2012 versus $0.37 for each
during the same period of the previous year.
Balance Sheets
As of June 30, 2012, the Company
had cash and cash equivalents of $25.2 million compared to $21.9 million as of September 30, 2011. The Company's working capital
as of June 30, 2012 was $58.2 million.
Net cash provided by operating activities was
$13.2 million for the nine months
ended June 30, 2012, as compared to
net cash used in operating activities of $1.6 million in the same period of the previous
fiscal year. The increase in net cash provided by operating
activities was mainly due to:
(1) cash flows provided by inventories of approximately
$29,000 during the nine months ended
June 30, 2012 as compared with cash
flows used in inventories of approximately $8.7 million for the nine months ended
June 30, 2011. This change in cash
flows used in inventories was driven by the Company's stronger
management of inventory turnover;
(2) cash flows provided by accrued and other liabilities of
approximately $2.0 million during the
nine months ended June 30, 2012 as
compared with approximately $310,000
for the nine months ended June 30,
2011. This increase was mainly due to: (a) increased new
product sales fees, such as slotting allowances and bar code
expenses paid to stores; (b) expenses incurred during fiscal 2012
relating to the Company's going-private transaction; and (c)
construction expenses for Winner Medical & Textile Ltd.
Chongyang; and
(3) cash flows used in accounts receivable of approximately
US$2.7 million during the nine months
ended June 30, 2012 as compared with
approximately US$4.3 million for the
nine months ended June 30, 2011. This
change in cash flows used in accounts receivable was due to the
Company's management of account receivable turnover; and
(4) cash flows provided by restricted bank deposits of
approximately US$1.6 million during
the nine months ended June 30, 2012
as compared with restricted cash of approximately US$194,000 for the nine months ended June 30, 2011. This change in restricted bank
deposits was mainly driven by the withdrawal of approximately
US$1.6 million registered capital for
Shenzhen PurCotton E-Commerce Co., Ltd., which was deposited during
the same period of last year.
Operational Updates
Manufacturing lines
The Company purchased two PurCotton® baby diaper manufacturing
lines in 2011, with the expectation that they would start trial
production in February 2012. However,
after sample production and market testing, the Company found that
the manufacturing lines needed minor adjustments to meet the
Company's stringent quality requirements. These lines started trial
production in July 2012 and the
Company estimates that commercial production will begin in
August 2012. In addition, in
July 2012, the Company started to
install two new PurCotton jumbo roll manufacturing lines, which
were purchased in December 2011. The
Company estimates that these lines will begin commercial production
in the first quarter of fiscal 2013.
As part of the expansion of its production capacity for medical
products, and in light of the high cost of labor in Shenzhen where the Company is headquartered,
the Company plans to relocate some of its manufacturing operations
to inland cities in the PRC where the cost of labor is lower. The
Company's wholly-owned subsidiary, Winner Medical & Textile
Ltd. Chongyang ("Winner Chongyang"), is currently building two
workshops, an administrative office, a canteen and a dormitory in
Chongyang, Hubei province, to
facilitate this production expansion and relocation. The Company
expects that these buildings will be completed by the end of
December 2012, and will begin
manufacturing operations following completion in early 2013.
PurCotton® Retail Business
As of August 9, 2012, Winner
Medical owned and operated 48 PurCotton® branded retail stores,
with 18 in Guangdong province, 10
in Beijing, 8 in Shanghai, 2 in Hong
Kong and 10 in PRC second-tier cities, such as Changsha, Wuhan, Xiamen, Shenyang, Tianjin and Chengdu, after having recently opened 3 new
stores in Beijing and 1 new store
in each of Wuhan, Chengdu and Shenyang. From May 10,
2012 to August 9, 2012, 1
store in Hong Kong and 1 in
Shanghai were closed due to low
traffic or expiration of lease agreements. Both stores were opened
in the initial stage of operating the retail business and
management does not consider their closures to significantly impact
the Company's retail expansion plans.
Since launching the customer loyalty membership program in the
Company's chain stores in November
2010, approximately 65,000 members have been recorded as of
August 9, 2012, compared with
approximately 50,000 members as of May
10, 2012. The repurchase rate by members is approximately
70%.
The Company established Shenzhen PurCotton E-Commerce Co., Ltd.
("PurCotton E-Commerce") in November
2011 with two non-affiliated individuals who are experts in
e-commerce in order to oversee the operation of its online sales.
At the time of establishment, the Company owned 70% of the equity
interests in this operating company, with the other 30% being owned
by the two individuals. However, in April
2012, the three parties mutually agreed to cease the
partnership in PurCotton E-Commerce. The two individuals had
withdrawn their initial capital by April
2012. The Company is in the process of updating the business
registration of PurCotton E-Commerce with the local government and
expects to complete that process in the fourth quarter of 2012.
In addition, the Company has launched its PurCotton retail
products into new distribution channels. As of August 9, 2012 the Company sells eight separate
stock keeping units (or "SKUs") of PurCotton sanitary napkins to a
network of more than 1,000 stores in approximately 12 cities. It is
expected that a total of 12 SKUs of sanitary napkins and 8 SKUs of
PurCotton baby diapers will be launched in the fourth quarter of
2012. The Company believes that these distribution channels will
increase sales. However, this form of sales has a high level of
start-up costs, including new product sales fees in each network
for each SKU.
Outlook
For the 2012 full fiscal year, the Company now estimates that
its revenues will be in the range of $172.4
million to $187.4 million, representing a year-over-year
growth rate of between approximately 15% and 25%. We are adjusting
guidance in response to the sustained European debt crisis, which
has resulted in a decrease in orders from our European
customers.
This forecast reflects the Company's current and preliminary
view, which is subject to change.
Conference Call
The Company will host a conference call at 9:00 p.m. ET on Thursday,
August 9, 2012 (9:00 a.m.
Beijing Time on Friday, August 10) to
discuss its third quarter of fiscal 2012 results and recent
business developments. Listeners may access the call by
dialing:
Dial-in Number:
1-718-354-1231 (U.S. Toll)
1-866-519-4004 (U.S. Toll Free)
65-6723-9381 (International)
800-819-0121 (China Domestic)
400-620-8038 (China Mobile)
800-930-346 (Hong Kong)
Pass code 17092363
A telephone replay will be available shortly after the
conclusion of the call and will be accessible from August 9, 2012 at 11:00
p.m. ET to August 16, 2012 at
11:59 p.m. ET by calling
1-866-214-5335 (US), 800-714-0386 (China North), 800-140-0386
(China South), 800-901-596
(Hong Kong) or 61-2-8235-5000
(International) with passcode 17092363.
The earnings release will be available on the investor relations
page of Winner Medical's website at
http://winnermedical.investorroom.com/ on Friday, August 10, 2012 (ET).
About Winner Medical
Winner Medical is a leading China-based exporter and retailer of
high-quality medical dressings and consumer products made from 100%
cotton, according to industry trade association statistics. The
Company has fifteen wholly-owned subsidiaries and three joint
ventures, which manufacture and sell tailored medical dressings and
disposables, as well as non-woven fabric made from natural cotton.
With a vertically integrated supply chain ranging from spinning
fabric to finished goods, the Company provides its customers with a
wide range of high-quality products, from surgical and wound care
to consumer goods in China and
abroad. Its products include those with FDA, CE mark, TUV and other
global standard certifications and the Company holds 54
domestic and international patents. For nine consecutive years, the
Company has ranked as one of the leading medical dressing exporters
in China, with North America, Europe and Japan as its major markets. In addition, the
Company distributes under its own "Winner" and "PurCotton®"
brand names in China. To learn
more about Winner Medical, please visit Winner Medical's website
at: http://winnermedical.investorroom.com.
Forward-Looking Statements:
This press release contains certain statements that may include
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical fact included herein, are
"forward-looking statements" including statements regarding Winner
Medical and its subsidiary companies' business strategy, plans and
objectives and statements of non-historical information. These
forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects" or
similar expressions. Although Winner Medical believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions and involve known and
unknown risks and uncertainties, and these expectations may prove
to be incorrect. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Winner Medical's actual results could differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in Winner Medical's periodic reports that are filed with
and available from the SEC. All forward-looking statements
attributable to Winner Medical or persons acting on its behalf are
expressly qualified in their entirety by these factors. Other than
as required under the securities laws, Winner Medical does not
assume a duty to update these forward-looking statements.
Contact:
Winner Medical Group Inc.
Ms. Huixuan Chen (Fiona)
Investor Relations Manager
Phone: +86-755-2806-6858
Email: investors@winnermedical.com
ICR Inc.
Mr. Rob Koepp
Phone: +86-10-6583-7516 or +1-646-405-5171
E-mail: robert.koepp@icrinc.com
Winner Medical Group
Inc.
Consolidated Statements of Income and Comprehensive
Income
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
|
|
2012
|
2011
|
|
2012
|
2011
|
|
|
US$
|
US$
|
|
US$
|
US$
|
|
|
|
|
|
|
|
Net sales
|
|
48,191,971
|
41,536,465
|
|
130,827,383
|
108,460,785
|
|
|
|
|
|
|
|
Cost of sales
|
|
(35,960,360)
|
(30,227,856)
|
|
(97,591,364)
|
(78,318,957)
|
Gross profit
|
|
12,231,611
|
11,308,609
|
|
33,236,019
|
30,141,828
|
|
|
|
|
|
|
|
Other operating income
/(loss) , net
|
|
144,329
|
(2,831)
|
|
218,960
|
(104,786)
|
Government
subsidies
|
|
169,784
|
90,407
|
|
416,274
|
1,304,622
|
Realized gain/(loss) on
commodity financial instruments
|
|
92,791
|
65,037
|
|
167,467
|
(1,694,632)
|
Foreign currency
exchange gain/(loss)
|
|
199,642
|
(270,910)
|
|
(83,240)
|
(415,041)
|
Selling, general and
administrative expenses
|
|
(10,576,805)
|
(7,293,780)
|
|
(25,538,616)
|
(19,151,578)
|
|
|
|
|
|
|
|
Income from
operations
|
|
2,261,352
|
3,896,532
|
|
8,416,864
|
10,080,413
|
Interest
income
|
|
109,120
|
59,088
|
|
279,760
|
105,256
|
Interest
expense
|
|
(125,150)
|
(134,793)
|
|
(228,701)
|
(227,978)
|
Equity in earnings of 50
percent or less owned persons
|
|
69,945
|
179,745
|
|
151,410
|
362,860
|
Income before income
taxes
|
|
2,315,267
|
4,000,572
|
|
8,619,333
|
10,320,551
|
|
|
|
|
|
|
|
Income taxes
|
|
55,227
|
(565,349)
|
|
(1,840,529)
|
(1,287,744)
|
Net income
|
|
2,370,494
|
3,435,223
|
6,778,804
|
9,032,807
|
|
|
|
|
|
|
|
Net income attributable
to noncontrolling interests
|
|
(43,210)
|
(10,698)
|
|
(63,383)
|
(44,102)
|
Net income attributable
to
Winner Medical Group
Inc.
|
|
2,327,284
|
3,424,525
|
6,715,421
|
8,988,705
|
|
|
|
|
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
Net income
|
|
2,370,494
|
3,435,223
|
|
6,778,804
|
9,032,807
|
Foreign currency
translation difference
|
|
(600,851)
|
1,385,899
|
|
621,397
|
3,757,299
|
Comprehensive income
attributable to
noncontrolling interests
|
|
(41,732)
|
(10,672)
|
(63,870)
|
(44,452)
|
|
|
|
|
|
|
Comprehensive income
attributable to
Winner Medical Group Inc.
|
|
1,727,911
|
4,810,450
|
|
7,336,331
|
12,745,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to
Winner Medical Group
Inc. per share
|
|
|
|
|
|
|
- basic
|
|
0.10
|
0.14
|
|
0.28
|
0.37
|
- diluted
|
|
0.09
|
0.14
|
|
0.27
|
0.37
|
|
|
|
|
|
|
|
Weighted average common
stock outstanding
|
|
|
|
|
|
- basic
|
|
24,371,872
|
24,130,247
|
24,365,867
|
24,125,593
|
- diluted
|
|
25,013,418
|
24,601,088
|
24,770,079
|
24,621,897
|
|
|
|
|
|
|
Winner Medical Group
Inc.
|
Consolidated Balance
Sheets
|
|
June 30,
|
September 30,
|
|
2012
|
2011
|
|
US$
|
US$
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
25,225,650
|
21,945,105
|
Restricted bank
deposits
|
107,679
|
1,836,491
|
Restricted broker margin
account
|
475,106
|
0
|
Accounts and
notes receivable, less allowances for
doubtful accounts of
US$92,213 and US$159,485 at June
30, 2012 and September
30, 2011, respectively
|
23,789,096
|
20,982,263
|
Amounts due from
affiliated companies
|
84,550
|
157,779
|
Inventories
|
25,500,169
|
25,408,700
|
Prepaid expenses and
other current assets
|
11,805,719
|
8,334,504
|
Income taxes
recoverable
|
234,400
|
146,408
|
Deferred tax
assets
|
345,293
|
376,411
|
Total current assets
|
87,567,662
|
79,187,661
|
Property, plant and
equipment, net
|
69,678,053
|
65,461,750
|
Investment in equity
investees
|
2,573,325
|
2,421,915
|
Intangible assets,
net
|
148,340
|
126,918
|
Prepaid expenses and
other receivables
|
2,463,983
|
1,596,354
|
Deferred tax
assets
|
1,190,522
|
1,124,089
|
Total assets
|
163,621,885
|
149,918,687
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
Short-term bank
loans
|
6,324,211
|
6,294,356
|
Accounts
payable
|
10,137,984
|
7,420,580
|
Accrued payroll
and employee benefits
|
3,508,256
|
3,141,756
|
Customer
deposits
|
1,099,714
|
1,115,887
|
Accrued and other
liabilities
|
6,822,643
|
4,253,889
|
Amounts due to
affiliated companies
|
85,402
|
0
|
Income taxes
payable
|
1,437,598
|
1,970,710
|
Total current liabilities
|
29,415,808
|
24,197,178
|
Deferred tax
liabilities
|
0
|
45,025
|
Total liabilities
|
29,415,808
|
24,242,203
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
Common stock, par value
$0.001 per share;
authorized 247,500,000, issued and
outstanding June 30,
2012 -24,371,872 shares; September
30, 2011 -24,140,247
shares
|
24,373
|
24,141
|
Additional paid-in
capital
|
43,559,598
|
42,490,464
|
Retained
earnings
|
65,635,028
|
58,984,686
|
Statutory
reserves
|
5,932,049
|
5,866,970
|
Accumulated other
comprehensive income
|
18,790,415
|
18,169,505
|
Total Winner Medical
Group Inc.
|
|
|
stockholders'
equity
|
133,941,463
|
125,535,766
|
|
|
|
Noncontrolling
interests
|
264,614
|
140,718
|
|
|
|
Total stockholders'
equity
|
134,206,077
|
125,676,484
|
|
|
|
Total liabilities and
stockholders' equity
|
163,621,885
|
149,918,687
|
SOURCE Winner Medical Group Inc.