Linkwell Corporation Announces 2006 Year End Financial Results, Record Revenues and Net Income

Linkwell Corporation Announces 2006 Year End Financial Results, Record Revenues and Net Income

April 04, 2007

    SHANGHAI, China, April 4 /Xinhua-PRNewswire/ --
Linkwell Corporation (OTC Bulletin Board: LWLL), a leading
developer, manufacturer and distributor of
healthcare-related disinfectants in China, today announced
its financial results for the year ended December 31, 2006.


    The Company recorded revenues of approximately $7.75
million for the year ended December 31, 2006; representing
an approximately 42% increase from $5.47 million in
revenues recorded for 2005. Gross profit for the year ended
December 31, 2006 was $3.136 million, representing an
approximately 47% increase from gross profit of $2.137
million in 2005. The GAAP net income for 2006 was $568,120
or $0.01 earnings per share, compared to a loss of
$1,267,387 or $(-0.03) per share for 2005. Net income from
Chinese operations for 2006 were $1,161,828 (non-GAAP
Earnings: $0.02 per share), reflecting an increase of
approximately 82% from $636,468 recorded net income for the
year ended December 31, 2005 (non-GAAP earnings: $0.01 per
share). 

    Excluding non-cash charge associated with stock-based
compensation for professional advisors, non-cash charge of
non-distributable preferred stock dividend, and
registration penalty charge, the company recorded
approximately $1,161,828 in net income or $0.02 earnings
per share for 2006. 

    The shareholders' equity at December 31, 2006 increased
to $3,944,898, an approximately 38% increase from $2,850,555
in shareholders' equity at December 31, 2005. At December
31, 2006, working capital was $4.339 million, an
approximately 80% increase from $2.413 million in working
capital at December 31, 2005. 

    Linkwell's Chairman and CEO, Mr. Xuelian Bian,
commented, "We are pleased to report another strong
fiscal year performance. In 2006 we focused on a number of
strategic initiatives including improving the breadth and
quality of our core product portfolio, penetrating new
markets and improving operating efficiency of our
administrative, manufacturing and distribution structures.
We achieved success in these areas through acquisition and
a program of continuous internal efficiency
improvements." 

    Mr. Bian added, "Moving into 2007, we intend to
continue to market our leading brands, further expand our
channels of distribution, partner strategically with a
major multinational company, identify further cost savings
throughout our business, and pursue acquisitions that will
extend our distribution network and/or be complementary to
our current business. We are committed to maintaining our
leadership status as an innovator in the healthcare-related
disinfectant industry in China. We believe our initiatives
in 2007 will continue to enhance our performance and expand
our presence in the marketplace. We are energized with our
opportunities and we will continue to work aggressively to
maximize our performance and return for our
shareholders." 

    For more details about Linkwell's financial
performance, please review the 10-KSB filed with the United
States Securities and Exchange Commission. 

    About Linkwell Corporation 

    Linkwell Corporation develops, manufactures, and
distributes disinfectant healthcare products in China
through its 90% owned subsidiary Shanghai Likang
Disinfectant High Tech Company ("Likang").
Linkwell's disinfectant healthcare products are a
nationally recognized domestic Chinese brand in this market
segment. Linkwell products include disinfectants in liquid,
tablet, powder and aerosol form. Through Likang, Linkwell
has a national marketing and sales presence throughout all
22 provinces, 5 autonomous regions, and 4 special
municipalities of China. For more info about the company,
please visit http://www.linkwell.us 

    Safe Harbor Statement 

    Certain of the statements set forth in this press
release constitute "forward-looking statements." 
Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate, or imply
future results, performance or achievements, and may
contain the words "estimate,"
"project," "forecast,"
"anticipate," "plan," or expressions of
similar meaning. Such statements are not guarantees of
future performance and are subject to risks and
uncertainties that could cause the company's actual results
and financial position to differ materially from those
included within the forward-looking statements.
Forward-looking statements involve risks and uncertainties
and risks, including those relating to the Company's
ability to grow its business. More information about the
potential factors that could affect the Company's business
and financial results is included in the Company's filings,
available via the United States Securities and Exchange
Commission. 


    For more information, please contact:

     Linkwell Corporation 
     Tel:   +1-877-CHINA-57
     Email: [e-mail]