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Winner Medical Reports Fourth Quarter and Fiscal 2010 Results
Date:12/8/2010

ss Margin

30.0%

28.4%

5.6%Net Income Attributable to Winner Medical Group Inc.

$13.1

$9.1

43.4%Basic EPS

$0.57

$0.41

39.0%Mr. Jianquan Li, Chairman and Chief Executive Officer of Winner Medical, commented, "During the past year we made significant progress on several of our growth initiatives, which are evidenced in our full year results and stable gross margins. We are pleased with our full year results despite a challenging fourth quarter, a period where we experienced market effects from European debt crisis and rising raw material prices. Faced with these pressures, the Company increased its selling prices, to pass along raw material cost increases to customers, signed long term contracts with its raw material suppliers and entered into several cotton forward contracts to hedge future price fluctuations. During fiscal year 2010, we enhanced our production efficiencies and implemented more stringent cost controls, which enabled us to improve our margins and increase profitability.

"We are confident that the actions we have taken will yield further operating benefits during 2011. Our brand and competitive position continues to improve as rising commodity costs drive smaller competitors to reduce output. As we adjusted prices and gained additional market share by expanding distribution in China and abroad, we are confident in achieving our target of 20% to 30% revenue growth per annum," Mr. Li concluded.

Fourth Quarter 2010 Unaudited Financial Results Net Sales

For the fourth quarter of fiscal 2010, Winner Medical reported net sales revenue of $28.2 million, an increase of 2.1% compared to the same period last year. The slight increase was mainly due to the fact that sales to North and South America remained robust, which was driven by increased orders from American and Brazilian clients. However, this sales was offset by the high price of cotton at certain points during t
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SOURCE Winner Medical Group Inc.
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