Medindia

X

Tongjitang Chinese Medicines Company Reports Fourth Quarter and Full Year 2009 Financial Results

Wednesday, March 31, 2010 General News J E 4
Advertisement
- 4Q09 Revenue Increases 31.5% Y-O-Y to RMB 151.5 million ($22.2 million) -

SHENZHEN, China, March 31 /PRNewswire-Asia-FirstCall/ -- Tongjitang Chinese Medicines Company (the "Company" or "Tongjitang") (NYSE: TCM), a leading specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, today announced its financial results for the fourth quarter of 2009 and for the full year ended December 31, 2009.

    Financial Results for the Quarter Ended December 31, 2009
    -- Net revenue increased 31.5% to RMB 151.5 million ($22.2 million)(1),
       from RMB 115.2 million in the prior year period.
    -- Operating income was RMB 0.3 million ($0.1 million), compared to an
       operating loss of RMB 86.2 million in the prior year period.
    -- Net income attributable to the Company was RMB 4.1 million
       ($0.6 million), which yielded earnings per ADS of RMB 0.15 ($0.02) and
       earnings per share(2) of RMB 0.04 ($0.01).
    -- Non-GAAP adjusted EBITDA per share was RMB 0.11 ($0.02), compared to
       net loss of Non-GAAP adjusted EBITDA per share of RMB 0.56 in the
       fourth quarter of 2008.

Xiaochun Wang, Chief Executive Officer and Chairman of Tongjitang, stated, "We are very pleased with our fourth quarter performance, which was a significant revenue improvement from the fourth quarter of last year. While our margin performance does reflect a mix shift to lower margin products, we are operating in a more stable macro environment. Uncertainty in the market has been greatly reduced by the release and implementation of healthcare reform, from which we expect to continue to benefit in the long term. The destocking issues from previous quarters have largely abated, and our sales have grown as a result. Going forward we will continue to focus on expanding our sales networks into community hospitals, and we expect these efforts to result in increased selling and marketing expenses in the near future."

Net revenue in the fourth quarter of 2009 increased 31.5% to RMB 151.5 million ($22.2 million) from RMB 115.2 million in the fourth quarter of 2008. Xianling Gubao ("XLGB") sales were RMB 92.0 million ($13.5 million) in the fourth quarter of 2009, compared to RMB 86.7 million in the fourth quarter of 2008. Net revenue from Moisturizing & Anti-itching Capsules and Zaoren Anshen Capsules reached RMB 18.8 million ($2.8 million), an increase of 41.4% from RMB 13.3 million in the prior year period. Net revenue from the Company's other products increased 167.8% to RMB 40.7 million ($6.0 million) from RMB 15.2 million in the fourth quarter of 2008. Revenue contribution from Anhui Jingfang Pharmaceutical Co., Ltd. ("Jingfang"), which was acquired at the end of the first quarter of 2009, was RMB14.0 million ($2.1 million), compared to RMB17.6 million in the third quarter of 2009.

Gross profit increased 20.0% to RMB 84.6 million ($12.4 million) in the fourth quarter of 2009 from RMB 70.5 million in the fourth quarter of 2008. Gross margin was 55.9% in the fourth quarter of 2009, compared to 61.2% in the same period of 2008. Tongjitang's decreased gross margin reflects higher revenue contribution from lower-margin products. The price of barrenwort, used in the production of XLGB, remained stable in the fourth quarter of 2009.

Operating income in the fourth quarter of 2009 was RMB 0.3 million ($0.1 million), compared to an operating loss of RMB 86.2 million in the fourth quarter of 2008. Operating loss in the fourth quarter of 2008 included significant asset impairments to goodwill and intangible assets related to the Guizhou LLF and Qinghai Pulante acquisitions.

Net income attributable to the Company was RMB 4.1 million ($0.6 million), which yielded earnings per ADS of RMB 0.15 ($0.02) and earnings per share2 of RMB 0.04 ($0.01).

Non-GAAP adjusted EBITDA in the fourth quarter of 2009 was RMB 11.4 million ($1.7 million), compared to net loss of Non-GAAP adjusted EBITDA of RMB 75.5 million in the fourth quarter of 2008. Non-GAAP adjusted EBITDA per share was RMB 0.11 ($0.02) in the fourth quarter of 2009, compared to net loss of Non-GAAP adjusted EBITDA per share of RMB 0.56 in the fourth quarter of 2008. For the fourth quarter of 2009, the number of shares used in the computation of GAAP and non-GAAP adjusted EBITDA per share was 106.2 million. Please refer to the Company's GAAP to non-GAAP reconciliation table provided below for additional details.

Financial Results for the Year Ended December 31, 2009

For the year ended December 31, 2009, revenues increased 6.5% to RMB 480.3 million ($70.4 million), from RMB 451.0 million for the full year 2008. During this same time period, gross profit decreased by 1.6% to RMB 279.1 million ($40.9 million) from RMB 283.7 million. Gross margin for the full year 2009 was 58.1%, compared to 62.9% in the year before. Operating loss improved to RMB 10.9 million ($1.6 million) from RMB 77.7 million in the full year 2008. Net loss attributable to the Company was RMB 3.8 million ($0.6 million), or RMB 0.03 ($0. 01) per share, compared to net loss of RMB 52.3 million, or RMB 0.39 per share, in the year before. Net loss per ADS was RMB 0.12 ($0.02) in the year 2009, compared to net loss per ADS of RMB 1.55 in the year 2008. The weighted average number of shares outstanding for the year 2009 was 122.9 million.

Balance Sheet

As of December 31, 2009, the Company had cash and cash equivalents of RMB 237.6 million ($34.8 million). This compares to RMB 310.6 million as of September 30, 2009, and RMB 516.1 million as of December 31, 2008.

Business Updates

On February 2, 2010, the Company announced that it set up a joint venture with a third party to acquire 100% of state-owned Guiyang Liquor Factory for RMB120.6 million in cash. Tongjitang owns 95% of the joint venture and has already completed the acquisition.

On December 23, 2009, the Company held its annual meeting of shareholders for the fiscal year ended December 31, 2009 at its executive office in Shenzhen. At the meeting, Tongjitang's Chairman of the Board of Directors and Chief Executive Officer gave an update on company affairs, and management and stakeholders discussed their views of Tongitang's progress and prospects.

On November 19, 2009, the Company announced the repurchase of 4.8 million ordinary shares, or 4% of the Company's issued and outstanding shares, in privately negotiated transactions.

On October 13, 2009, the Company announced the repurchase of 19.3 million ordinary shares, or 15% of the Company's issued and outstanding shares, in privately negotiated transactions.

On June 22, 2009, the Company announced that effective June 16, 2009, it changed its independent auditor from Deloitte Touche Tohmatsu ("Deloitte") to Ernst & Young Hua Ming.

On April 2, 2009, the Company announced the acquisition of Anhui Jingfang Pharmaceutical Co. Ltd. for RMB 60.0 million in cash. Jingfang began to contribute to Tongjitang's revenue stream upon the closing of the transaction.

About Non-GAAP Financial Measures

To supplement the Company's unaudited condensed consolidated financial information presented in accordance with the United States Generally Accepted Accounting Principles ("GAAP"), the Company also provides non-GAAP financial measures, non-GAAP adjusted EBITDA and non-GAAP adjusted EBITDA per share, all of which exclude depreciation and amortization, interest (income) expense, provision for income taxes and share-based compensation expenses recorded under FASB Accounting Standards Codification ("ASC") Subtopic 718 - 10 Compensation - Stock Compensation: Overall (Pre-codification: SFAS No. 123(R), Share-Based Payment.) The Company's management believes the non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and allows the management team to better plan and forecast future periods, as the non-GAAP financial measures provide additional information to the investors. The non-GAAP information is not in accordance with GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for the GAAP results. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude share- based compensation expenses that have been and will continue to be significant recurring expenses in our business for the foreseeable future. Reconciliations of the Company's non-GAAP financial data to the most comparable GAAP data are included at the end of this press release.

Conference Call

Tongjitang's management team will hold a conference call on March 31 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time) following the announcement. Listeners may access the call by dialing the following numbers:

    United States toll free:  1-888-228-5279
    Hong Kong toll free:      800-903-658
    Northern China toll free: 10-800-7141504
    Southern China toll free: 10-800-1401379
    International:            1-913-312-1429

Listeners may access the replay through April 7, 2010, by dialing the following numbers:

    United States toll free: 1-888-203-1112
    International:           1-719-457-0820
    Password:                1164592

An audio webcast of the call will also be available through the Company's website at http://www.tongjitang.com .

About Tongjitang Chinese Medicines Company

Tongjitang Chinese Medicines Company, through its operating subsidiaries Tongjitang Pharmaceutical, Tongjitang Distribution, Tongjitang Chain Stores, Guizhou Long-Life Pharmaceutical Company Limited, Qinghai Pulante and Anhui Jingfang, is a vertically integrated specialty pharmaceutical company focused on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China. Tongjitang's principal executive offices are located in Shenzhen, China.

Tongjitang's flagship product, Xianling Gubao, is the leading traditional Chinese medicine for the treatment of osteoporosis in China as measured by sales in Renminbi. In addition to Xianling Gubao, the Company manufactures and markets 36 other modernized traditional Chinese medicine products and 37 western medicines. Please visit http://www.tongjitang.com for more information.

Safe Harbor Statements

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from those described in the forward-looking statements in this press release. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's heavy dependence on the success of Xianling Gubao; the Company's ability to market Xianling Gubao to hospitals and to retail pharmacies; the retail prices of its principal products' being subject to price control by the government authorities in China; the inclusion of the Company's products in national and provincial medical catalogs of the National Medical Insurance Program in China; the Company's ability to obtain approval from the State Food and Drug Administration in China to convert a provisional national production standard of the Company's principal products to a national final production standard; the Company's ability to continue having the exclusive production rights for its products; the Company's ability to further improve its barrenwort extraction efficiency; the presence of certain side effects in the Company's current products and the Company's ability to identify side effects associated with its current or future products prior to their marketing and sale; the Company's ability to obtain manufacturing or marketing approval for its future products; the Company's dependence on a limited number of distributors for a significant portion of its net revenues; the Company's exposure to the risk of product liability claims and its limited insurance coverage; the Company's ability to manage the expansion of its operations and its future research and development projects successfully; the Company's ability to protect its intellectual property rights and defend infringement or misappropriation claims by third parties; intense competition in the pharmaceutical market in China; the supply of quality medicinal raw materials; the Company's U.S. tax status as a passive foreign investment company ("PFIC") for the taxable year ended December 31, 2008 and the significant risk that the Company will be a PFIC for the current taxable year ended December 31, 2009; uncertainties with respect to the legal system in China, including uncertainty with respect to potential regulatory changes in China's healthcare industry; if disruptions in the financial markets and other macro-economic challenges currently affecting the economy of the United States and other parts of the world continue or even worsen, it may adversely impact the economy and consumer confidence in China; the Company's ability to expand its business through organic growth and strategic acquisitions and investments; and the Company's ability to integrate its acquisitions, including the recently-acquired state-owned Guiyang Liquor Factory. Further information regarding these and other risks is and will be included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release is as of the date of this press release, and the Company undertakes no duty to update such information, except as required under applicable law.

    (1) This announcement contains translations of certain Renminbi amounts
        into US dollars at specified rates solely for the convenience of
        readers. Unless otherwise noted, all translations from Renminbi to US
        dollars as of and for the quarter ended December 31, 2009 were made at
        the noon buying rate on December 31, 2009 in the City of New York for
        cable transfers in Renminbi per US dollar as certified for customs
        purposes by the Federal Reserves Bank of New York, which was RMB6.8259
        to USD1.00. Tongjitang makes no representation that the Renminbi or US
        dollar amounts referred to in this release could have been or could be
        converted into US dollars or Renminbi, as the case may be, at any
        particular rate or at all.
    (2) All references to "shares" are to our ordinary shares. Each of our
        American Depositary Shares, which are traded on the New York Stock
        Exchange, represents four ordinary shares.


    For further information, please contact:

    ICR, Inc.
     Ashley M. Ammon or Christine Duan
     Tel: +1-203-682-8200 (Investor Relations)



                     Tongjitang Chinese Medicines Company
               Condensed Consolidated Statements of Operations
               (In thousands, except share and per share data)

                                                   Fourth Quarter Ended
                                                        December 31
                                             2008          2009         2009
                                              RMB           RMB          US$
                                                                       (Note)

    Net revenues                           115,204       151,486       22,193
    Cost of revenues                        44,736        66,878        9,798
    Gross profit                            70,468        84,608       12,395
    Advertising expenses                   (18,069)      (10,526)      (1,542)
    Other selling and marketing expenses   (22,256)      (41,100)      (6,021)
    General and administrative expenses    (20,050)      (21,991)      (3,222)
    Research and development expenses       (2,705)       (5,880)        (861)
    Impairment loss on intangible assets   (72,910)       (4,500)        (659)
    Impairment loss on goodwill            (28,062)           --           --
    Government grant (related to
     research and development)               1,428           200           29
    Gain (loss) on disposal of property,
     plant and equipment and land
     use rights                              3,970          (817)        (120)
    Gain on disposal of a subsidiary         1,312            --           --
    Other operating income                     710           351           51
    Income (loss) from operations          (86,164)          345           50
    Other income (expenses):
     Interest income                         3,369           566           83
     Interest expense                       (3,335)       (2,129)        (312)
     Government grants                         710         2,009          294
     Investment (loss) / gain                 (175)          309           45
     Tax refund on reinvestment of
      profits                               16,064            --           --
     Other income / (expenses), net        (14,549)          473           69
    Income (loss) before income taxes
     and non-controlling interest          (84,080)        1,573          229
    (Provision for income taxes)
     tax benefit                             4,826         2,535          371
    Net income (loss)                      (79,254)        4,108          600
    Less: Net income (loss) attributable
     to the non-controlling interests          (10)           --           --
    Net income (loss) attributable to
     controlling interests                 (79,264)        4,108          600
    Earnings per share
     Ordinary shares
      Basic                                  (0.59)         0.04         0.01
      Diluted                                (0.59)         0.04         0.01
    Shares used in computation of
     earnings per share
      Ordinary shares
       Basic                           134,929,939   106,153,483  106,153,483
       Diluted                         134,929,939   106,153,483  106,153,483



                     Tongjitang Chinese Medicines Company
               Condensed Consolidated Statements of Operations
               (In thousands, except share and per share data)

                                                        Year Ended
                                                        December 31
                                             2008          2009         2009
                                              RMB           RMB          US$
                                                                       (Note)

    Net revenues                           451,032        480,339       70,370
    Cost of revenues                       167,345        201,205       29,477
    Gross profit                           283,687        279,134       40,893
    Advertising expenses                   (80,180)       (32,384)      (4,744)
    Other selling and marketing expenses   (80,031)      (151,755)     (22,232)
    General and administrative expenses    (91,325)       (86,501)     (12,672)
    Research and development expenses      (17,368)       (16,057)      (2,352)
    Impairment loss on intangible assets   (72,910)        (4,500)        (659)
    Impairment loss on goodwill            (28,062)            --           --
    Government grant (related to
     research and development)               1,428            232           34
    Gain (loss) on disposal of property,
     plant and equipment and land
     use rights                              3,970           (817)        (120)
    Gain on disposal of a subsidiary         1,312             --           --
    Other operating income                   1,801          1,700          249
    Income (loss) from operations          (77,678)       (10,948)      (1,603)
    Other income (expenses):
     Interest income                        17,114          4,047          593
     Interest expense                      (16,599)        (8,553)      (1,253)
     Government grants                       6,752          5,554          814
     Investment (loss) / gain               (1,830)           829          121
     Tax refund on reinvestment of
      profits                               16,064             --           --
     Other income / (expenses), net          4,171          6,963        1,020
    Income (loss) before income taxes
     and non-controlling interest          (52,006)        (2,108)        (308)
    (Provision for income taxes)
     tax benefit                              (502)        (1,617)        (237)
    Net income (loss)                      (52,508)        (3,725)        (545)
    Less: Net income (loss)
     attributable to the non-controlling
     interests                                 208            (66)         (10)
    Net income (loss) attributable to
     controlling interests                 (52,300)        (3,791)        (555)
    Earnings per share
     Ordinary shares
      Basic                                  (0.39)         (0.03)       (0.01)
      Diluted                                (0.39)         (0.03)       (0.01)
    Shares used in computation of
     earnings per share
     Ordinary shares
      Basic                            134,758,695    122,940,745  122,940,745
      Diluted                          134,758,695    122,940,745  122,940,745

    (Note)
    The condensed consolidated financial statements of Tongjitang Chinese
    Medicines Company are stated in Renminbi ("RMB"). The translation of RMB
    amounts as of and for the year ended December 31, 2009 into United States
    dollar ("US$") is included solely for the convenience of readers and has
    been translated at the rate of RMB6.8259 to US$1.00, which is based on the
    noon buying rate in The City of New York for cable transfers of Renminbi
    as certified for customs purposes by the Federal Reserve Bank of New York
    at December 31, 2009. Such translations should not be construed as
    representations that RMB amounts could be converted into US$ at that rate
    or any other rate.



                       Tongjitang Chinese Medicines Company
                      Condensed Consolidated Balance Sheets
                        (In thousands, except share data)

                                    Dec. 31     Sept. 30    Dec. 31    Dec. 31
                                     2008         2009       2009       2009
                                      RMB          RMB        RMB        US$
                                   (Note 2)                           (Note 1)
    ASSETS
     Current assets:
      Cash and cash equivalents      516,087      310,649    237,578    34,805
      Short-term bank deposit         50,000       55,000     50,000     7,325
      Notes receivable                55,987       41,757     70,248    10,291
      Accounts receivable, net of
       allowance for doubtful
       accounts                      214,543      233,966    232,038    33,994
      Amounts due from related
       parties                         8,500           --         --        --
      Amounts due from former
       shareholders of a
       subsidiary                        689           --         --        --
      Inventories                     97,553      134,645    139,100    20,378
      Trading securities                 792        1,255      1,447       212
      Prepaid advertising expenses     1,692        4,359      1,204       176
      Receivable on sales of
       property, plant and
       equipment                      12,600       18,810      9,320     1,365
      Other prepaid expenses and
       current assets, net of
       allowance for doubtful
       accounts                       21,548       33,161     16,139     2,364
      Deferred tax assets                 --        1,533      6,771       992
       Total current assets          979,991      835,135    763,845   111,902
     Property, plant and equipment,
      net                            152,249      174,118    172,097    25,212
     Land use rights, net             28,902       42,468     42,515     6,228
     Deposit for acquisition of a
      subsidiary                          --           --    120,599    17,668
     Deposits for acquisition of
      property, plant and
      equipment and intangible
      assets                         188,103      163,170    162,440    23,798
     Acquired intangible assets,
      net                             24,736       33,242     27,592     4,042
     Goodwill                             --        4,475      2,345       344
     Receivable on sales of
      property, plant and
      equipment                        6,210           --      9,170     1,343
     Long-term other assets            1,800          441      1,000       147
     Deferred tax assets               1,107        1,165      3,603       528
       Total assets                1,383,098    1,254,214  1,305,206   191,212

    LIABILITIES AND SHAREHOLDERS'
     EQUITY
     Current liabilities:
      Short-term borrowings           85,100      103,100    101,100    14,811
      Accounts payable                14,663       23,854     38,288     5,610
      Amounts due to related
       parties                         1,332          900        900       132
      Amounts due to former
       shareholders of a
       subsidiary                      7,385        6,186      5,186       760
      Accrued expenses and other
       current liabilities            81,130       92,856    156,247    22,890
      Income taxes payable               926        2,894      4,026       590
     Total current
      liabilities                    190,536      229,790    305,747    44,793
     Long-term bank loans             50,000       50,000     50,000     7,325
     Deferred tax liabilities          7,272        9,073     11,868     1,739
    Total liabilities                247,808      288,863    367,615    53,857
    Total shareholders' equity
     attributable to the Company   1,134,815      965,351    937,591   137,358
    Non-controlling interests
     (Note 2)                            475           --         --        --
    Total equity                   1,135,290      965,351    937,591   137,358
    Total liabilities
     and equity                    1,383,098    1,254,214  1,305,206   191,215

    (Note 1)
    The condensed consolidated financial statements of Tongjitang Chinese
    Medicines Company are stated in Renminbi ("RMB"). The translation of RMB
    amounts as of and for the year ended December 31, 2009 into United States
    dollar ("US$") is included solely for the convenience of readers and has
    been translated at the rate of RMB6.8259 to US$1.00, which is based on the
    noon buying rate in The City of New York for cable transfers of Renminbi
    as certified for customs purposes by the Federal Reserve Bank of New York
    at December 31, 2009. Such translations should not be construed as
    representations that RMB amounts could be converted into US$ at that rate
    or any other rate.

    (Note 2)
    Effective from January 1, 2009, the Company adopted FASB ASC Topic 810
    "Noncontrolling Interest" ("ASC 810") (Pre-codification: SFAS 160,
    Noncontrolling Interests in Consolidated Financial Statements), which
    amends ARB 51 to establish accounting and reporting standards for
    noncontrolling interests in a subsidiary. FASB ASC 810 further clarifies
    that a noncontrolling interest in a subsidiary is an ownership interest in
    the consolidated entity that should be reported in the financial
    statements. Accordingly, the Company has included the noncontrolling
    subsidiary minority interests in the current year financial statements and
    adjusted the previous year periods for comparative presentation.
    Additionally, net loss attributable to non-controlling interests was shown
    separately from net loss in the accompanying condensed consolidated
    statement of operations. Reclassifications -- Certain prior period
    balances have been reclassified to conform with current period
    presentation related to the adoption of ASC 810 "Noncontrolling Interest."



                     Tongjitang Chinese Medicines Company
                      Reconciliation of GAAP to Non-GAAP
                (In thousands, except share and per share data)

                                          Fourth Quarter Ended December 31
                                           2008         2009         2009
                                            RMB          RMB          US$
                                                                    (Note 1)
    GAAP net income                       (79,264)       4,108          600
    Share-based compensation expenses
     (Note 2)                               1,996        1,599          234
    Depreciation and amortisation           6,602        6,622          970
    Interest (income) expense, ne             (34)       1,563          229
    Provision for income taxes             (4,826)      (2,535)        (371)
    Non-GAAP adjusted EBIDTA              (75,526)      11,357        1,662
    GAAP earnings per share
     Ordinary shares
      Basic                                 (0.59)        0.04         0.01
      Diluted                               (0.59)        0.04         0.01
    Non-GAAP adjusted EBIDTA per share
     Ordinary shares
      Basic                                 (0.56)        0.11         0.02
      Diluted                               (0.56)        0.11         0.02
    Shares used in computation of
     GAAP/Non-GAAP adjusted EBIDTA per
     share
     Ordinary shares
      Basic                           134,929,939  106,153,483  106,153,483
      Diluted                         134,929,939  106,153,483  106,153,483



                     Tongjitang Chinese Medicines Company
                      Reconciliation of GAAP to Non-GAAP
                (In thousands, except share and per share data)

                                               Year Ended December 31
                                           2008         2009         2009
                                            RMB          RMB          US$
                                                                   (Note 1)
    GAAP net income                       (52,300)      (3,791)        (555)
    Share-based compensation expenses
     (Note 2)                              20,446        5,799          850
    Depreciation and amortisation          25,819       22,970        3,365
    Interest (income) expense, net           (515)       4,506          660
    Provision for income taxes                502        1,617          237
    Non-GAAP adjusted EBIDTA               (6,048)      31,101        4,557
    GAAP earnings per share
     Ordinary shares
      Basic                                 (0.39)       (0.03)       (0.01)
      Diluted                               (0.39)       (0.03)       (0.01)
    Non-GAAP adjusted EBIDTA per share
        Ordinary shares
        -Basic                              (0.04)        0.25         0.04
        -Diluted                            (0.04)        0.25         0.04
    Shares used in computation of GAAP
     / Non-GAAP adjusted EBIDTA per
     share
        Ordinary shares
        -Basic                        134,758,695  122,940,745  122,940,745
        -Diluted                      134,758,695  122,940,745  122,940,745


    (Note 1)
    The condensed consolidated financial statements and the related amounts of
    Tongjitang Chinese Medicines Company are stated in Renminbi ("RMB"). The
    translation of RMB amounts as of and for the year ended December 31, 2009
    into United States dollar ("US$") is included solely for the convenience
    of readers and has been translated at the rate of RMB6.8259 to US$1.00,
    which is based on the noon buying rate in The City of New York for cable
    transfers of Renminbi as certified for customs purposes by the Federal
    Reserve Bank of New York at December 31, 2009. Such translations should
    not be construed as representations that RMB amounts could be converted
    into US$ at that rate or any other rate.

    (Note 2)
    Share-based compensation expenses recorded in accordance to ASC subtopic
    718-10 ("ASC 718-10"), Compensation-Stock Compensation: Overall (Pre-
    Codification: SFAS No. 123(R), Share-Based Payment) are as follows:


                                             Forth Quarter Ended September 30
                                               2008         2009         2009
                                                RMB          RMB          US$
                                                                      (Note 1)
    General and administrative expenses       1,996        1,599          234

                                                   Year Ended December 31
                                               2008         2009         2009
                                                RMB          RMB          US$
                                                                      (Note 1)
    General and administrative expenses      20,446        5,799          850

SOURCE Tongjitang Chinese Medicines Company

Advertisement


Advertisement

You May Also Like

Advertisement
View All

Post your Comments

Comments should be on the topic and should not be abusive. The editorial team reserves the right to review and moderate the comments posted on the site.
User Avatar
* Your comment can be maximum of 2500 characters
I agree to the terms and conditions
s
The Boulevard Zen Foundation Hires Director and An...
S
Chiseled Body Perfection Now Attainable for the Or...