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