Shandong Weigao Group Medical Polymer Company (1066) Q3 2009 earnings summary

Executive summary

• Achieved strong revenue and net profit growth for the third quarter and nine-month period ended 30 September 2009, with significant gains in high value-added products.

• Expanded nationwide sales network and customer base, increasing the number of sales staff and coverage of top-tier hospitals.

Financial highlights

• Sales revenue for 3Q2009 rose 20.5% year-over-year to RMB 1,378.3 million; net profit increased 35.6% to RMB 186.5 million.

• Gross profit margin improved to 51.6% for the nine months, up from 50.1% year-over-year.

• EBITDA for the nine months reached RMB 435.9 million, up 19.8% year-over-year; EBITDA margin remained stable at 31.6%.

• EPS (basic) for the nine months was RMB 0.413, up 25.5% year-over-year.

Outlook and guidance

• Focus on consolidating high-end market position, expanding R&D, and increasing sales of high-margin consumables.

• Plans to pursue mergers and acquisitions, international market development, and expansion in blood purification products.