SHENZHEN, China, Sept. 11 /PRNewswire-Asia/ -- Winner Medical Group Inc. (OTC Bulletin Board: WMDG; "Winner Medical", or the "Company"), a leading exporter of medical dressings and medical disposables in China, announced today that its subsidiary, Winner Industries (Shenzhen) Co., Ltd., or "Winner Shenzhen", obtained the High and New Technology Enterprise Certificate granted by the Ministry of Science and Technology of China, the Ministry of Finance and the State Administration of Taxation.
As a result of this new status, which will be reevaluated by Chinese government authorities every three years, Winner Shenzhen will enjoy a 15% corporate income tax rate for calendar years 2009, 2010 and 2011. Currently, Winner Shenzhen contributes to approximately 80% of the Company's consolidated net profit. Before receiving this certificate, the Company was subject to the new PRC Enterprise Income Tax Law, effective on January 1, 2008, which gives existing foreign investment enterprises a five-year grandfather period, with an income tax rate of 18% in 2008 for enterprises located in Shenzhen, which will increase to 20%, 22%, and 24% in years 2009, 2010, and 2011 respectively, reaching 25% in 2012 and thereafter.
Mr. Jianquan Li, President and Chief Executive Officer of Winner Medical commented, "The recognition of the High and New Technology Enterprise Certificate reflects our continued strength and progress in fundamental areas such as research and development and product commercialization. As a high technology enterprise, Winner Medical benefits substantially from this status in reducing our expenses and increasing our profits. We are very pleased to be granted this esteemed certificate and are well positioned to continue to build shareholder value."
About Winner Medical
Winner Medical is a leading manufacturer in the medical dressing industry
(medical and wound care products) in Chin
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