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Winner Medical Reports Second Quarter Fiscal 2009 Results
Date:5/13/2009

was $2.10 million, an increase of 356.30% compared with $0.46 million of the same quarter of 2008. The increase was mainly attributed to decreased export transportation fees, economies of scale related to higher sales revenue, and improved production management to reduce manufacture cost.

Income Taxes: The income tax provision for the second quarter of fiscal 2009 was $460,000, up from -$223,000 for the same period in fiscal 2008. The increase in tax provision was mainly due to a change in tax rate for the Company's subsidiaries in China as a result of the Chinese income tax reform that came into effect on January 1, 2008, and the write off for over-provision of income taxes in the second fiscal quarter of 2008.

Net income: Net income increased by 188.42% to $1.64 million, or $0.04 per basic and diluted share, compared to net income of $0.57 million, or $0.01 per basic and diluted share, for the second quarter of last fiscal year. This increase can be attributed to higher gross margin during the three months ended March 31, 2009 as compared with the same period last year, the decrease in transportation expenses, and improved production management to reduce manufacture cost.

Six Months Ended March 31, 2009 Unaudited Financial Results

Revenue: Winner Medical reported net sales revenue of $46.36 million, a 24.57% increase over the six months ended March 31, 2009. Healthy revenue growth was mainly due to strong demand, particularly in North and South America; revenue from North and South America was approximately $8.99 million for the six months ended March 31, 2009, an increase of 126.56% compared to the same period in 2008. The North and South American market accounted for 19.39% of total revenue for the six months ended March 31, 2009.

Gross Profit: For the six months ended March 31, 2009, gross profit was $12.41 million, an increase of 41.76% over $8.75 million in the same
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SOURCE Winner Medical Group Inc.
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