Winner Medical Group Inc., Shenzhen, China, has reported consolidated financial results for the first quarter of fiscal year 2008, ended December 31, 2007. The company’s quarterly consolidated net sales were $19.3 million, an almost 22% year-on-year increase. Gross profit increased nearly 22% over the first quarter of fiscal 2007 to $4.8 million. Net income decreased 22% year-on-year to $1.16 million.
During the period, Winner Medical ramped up production and launched initiatives for its higher margin PurCotton products. According to the company, revenue was driven by increased orders from large European customers and margins benefited from successfully executed price initiatives that were adversely impacted by currency exchange rates.
Jianquan Li, chairman and CEO of Winner Medical, remarked, "In the first quarter, we executed strong sales orders for our traditional products in Europe, the U.S. and China. We intend to continue our focus on fulfilling our larger clients' requests for increasingly customized and higher-margin products. Given healthy customer acceptance of our successfully initiated pricing changes, our gross margin remained relatively stable in the first quarter compared with the same period last year, despite adverse reporting effects of the RMB appreciation against the dollar. Our net income from traditional products in the first quarter of 2008 increased by more than 10% compared to the same period last year."