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Winner Medical Reports Fourth Quarter and Full Year Fiscal 2008 Results
Date:12/9/2008

or the same period in 2007. The increase in tax provision was mainly due to a change in tax rate for our subsidiaries in China as the result of Chinese Income Tax reform that went into effect on January 1, 2008.

Net income: Net income increased by 7.40% to $1.60 million, or $0.03 per basic and diluted share, compared to net income of $1.49 million, or $0.04 per basic and diluted share, for the fourth quarter of last fiscal year. This increase can be attributed to economies of scales gained from higher sales revenue during the three months ended September 30, 2008 as compared with the same period last year, and the decrease in transportation expenses. This is despite the expenses incurred related to the commencement of trial production of PurCotton products.

Full Year Ended September 30, 2008 Audited Financial Results

Revenue: Winner Medical reported net sales revenue of $85.51 million for the fiscal year ended September 30, 2008, a 21.66% increase over the fiscal year 2007. The strong revenue growth was mainly due to strong demand, particularly in Europe and the U.S. Revenue from European customers was approximately $40.58 million for the fiscal year 2008, an increase of 31.04% compared to the same period last year, while revenue from the U.S. was $12.40 million for the fiscal year 2008. Europe and the U.S. accounted for 47.46% and 14.51% of total revenue for the fiscal year ended September 30, 2008, respectively.

Gross Profit: Gross profit increased by 23.02% to $21.42 million for the fiscal year ended September 30, 2008, from $17.41 million in the same period in fiscal 2007. Gross margin was 25.05%, an increase from 24.77% in the same period of fiscal 2007. The gross margin increase was mainly due to improved production management, and unit product cost decreases as a result of economies of scale.

Operating Expenses: Selling, general and administrative expenses increa
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SOURCE Winner Medical Group Inc.
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