Linkwell Corporation ("Linkwell") is a leading developer, manufacturer and marketer of sanitation, safety and disinfectant healthcare products in the People’s Republic of China through its 100% owned subsidiary Shanghai Likang Disinfectant High-Tech Company (Likang), whose products are the leading and only nationally recognized Chinese brands in this market segment.
Linkwell markets 56 disinfectant products throughout China; making it the #1 brand in the country. The Company sells its products on a wholesale and retail basis to approximately 5,000 recurring customers including hospitals, medical suppliers and distribution companies. Linkwell has 50 government certified products, including nine trademarks, for personal, medical equipment, and environmental usage.
Why Invest in Linkwell Corporation?
- Linkwell is the #1 Disinfection Company in China with more than 56 products marketed throughout China.
- Linkwell’s market valuations are extremely low:
- Market capitalization is $14 million on $11.4 million sales revenues (ttm); .02 EPS and 9.25 PE
- Gross Margins are 40.49% and Profit Margins are 7.33%
- Five consecutive years of revenue growth
- Total revenue growth increased 72% (ttm), 42% in 2006 and 6,800% in 2005 (this is not a typo).
- Projected total revenue growth for 2008 is at least 35% on organic growth and more if Linkwell acquires targeted companies.
- The Company expects the disinfectant industry within China to experience significant growth for the foreseeable future. Frequent regional and global infection crises, such as SARs and Avian (Bird) Flu have captured public attention and increased media coverage. This exposure is increasing demand for disinfectant products.
- Furthermore the government created national standards imposing universal standards to improve health conditions. In July 2002, the Ministry of Public Health issued the 27th order of Ministry of Health of the People's Republic of China. This ordinance implemented new standards for the industry.
- The first criterion of the new order stipulates that disinfectant manufacturers in China must obtain a license to manufacture hygiene disinfectants.
- Linkwell’s subsidiary, Likang, meets all standards in the ordinance.
- Largest Product Portfolio in China – 56 marketed products, 50 of which are certified by the Chinese Ministry of Health, SFDA or Ministry of Agriculture.
- Strong product pipelines – Linkwell has a record of introducing 3 or 4 new products to the market each year. The Company has filed applications for four new products and is preparing application documents for six additional products.
- Ecolab signed an agreement with Linkwell in February 2008 and purchased 10% of a Linkwell subsidiary, Linkwell Tech, for $2 million and a number of cooperative sales and consulting agreements, which are effective for 2 years.
- One of Linkwell’s products, An’erdian Skin Disinfectant, was chosen by the Organizing Committee for the 2008 Beijing Olympic Games for use in all hospitals supporting the Olympic Games.
- Wharton School of Business at the University of Pennsylvania and Fudan University selected Linkwell to develop a plan for Linkwell's strategy development and upgrading of its listing from OTCBB to NASDAQ, or other major US stock market.
- The Company’s management team has a wealth of senior management experience in the areas of disinfectant technology, trade and finance.
- Chairman and CEO, Mr. Xuelian Bian’s leadership is recognized by the central government and leading professional organizations. In January Mr. Bian addressed "The Association of Chinese Nosocomial Infections Professional Committee (Nosocomial Committee) of China Hospital Society (CHS)," which is endorsed by the Department of Medical Administration of the Ministry of Health of The People's Republic to China (PRC), held in Beijing, China.
