Second quarter revenue grew 36.8% year-over-year to RMB81.5 million
(US$11.9million)
Operating income grew 69.9% year-over-year to RMB25.8 million (US$3.8 million)
Company reiterates FY2009 revenue guidance
SHENYANG, China, Aug. 11 /PRNewswire-Asia-FirstCall/ -- 3SBio Inc. ("3SBio" or "the Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced its unaudited financial results for the second quarter ended June 30, 2009.
Second Quarter 2009 Financial Highlights: -- Total net revenues increased by 36.8% over the second quarter of 2008 to RMB81.5 million (US$11.9 million). -- Operating income increased by 69.9% over the second quarter of 2008 to RMB25.8 million (US$3.8million) on a GAAP basis, and increased by 60.1% over the second quarter of 2008 to RMB27.1 million (US$4.0 million) on a non-GAAP basis. -- Net income increased by 39.2% over the second quarter of 2008 to RMB27.0 million (US$4.0 million) on a GAAP basis, and increased by 26.3% over the second quarter of 2008 to RMB26.7 million (US$3.9 million) on a non-GAAP basis. -- Net income per American Depositary Share ("ADS") for the second quarter of 2009 was RMB1.25 (US$0.18) compared with RMB0.89 (US$0.13) for the second quarter of 2008 on a GAAP basis, and RMB1.24 (US$0.18) for the second quarter of 2009 compared with RMB0.97 (US$0.14) for the second quarter of 2008 on a non-GAAP basis. First Half 2009 Financial Highlights: -- Total net revenues increased by 30.5% over the first half of 2008 to RMB150.1 million (US$22.0 million). -- Operating income increased by 56.3% over the first half of 2008 to RMB 45.9 million (US$6.7 million) on a GAAP basis, and increased by 51.1% to RMB 47.7 million (US$7.0 million) on a non-GAAP basis. -- Net income increased by 9.5% over the first half of 2008 to RMB42.9 million (US$6.3 million) on a GAAP basis, and increased 15.3% over the first half of 2008 to RMB47.7 million (US$7.0 million) on a non-GAAP basis. -- Net income per ADS for the first half of 2009 was RMB1.99 (US$0.29) compared with RMB1.80 (US$0.26) for the first half of 2008 on a GAAP basis, and RMB2.21 (US$0.32) compared with RMB1.90 (US$0.28) for the first half of 2008 on a non-GAAP basis. Second Quarter 2009 Business Highlights -- EPIAO, the Company's flagship injectable recombinant human erythropoietin ("EPO") products, demonstrated strong growth with net revenue from EPIAO rising 37.6% over the second quarter of 2008 to RMB51.1 million (US$7.5million) in the second quarter of 2009. -- TPIAO net revenue increased by 38.4% to RMB22.2million (US$3.3 million) in the second quarter of 2009. TPIAO, the Company's protein-based therapeutic recombinant human thrombopoietin ("TPO") product. -- 3SBio continued to work closely with the State Food and Drug Administration ("SFDA") to advance the regulatory approval of the three new product programs submitted in 2008: 36,000 IU dosage formulation of EPIAO, NuLeusin, and TPIAO label extension for the treatment of ITP. -- Construction continued on schedule for the Company's new EPIAO plant, which will support the future growth of EPIAO and serve as the first step towards exploring global biosimilar opportunities. In June, Mr Deyu Kong joined 3SBio as Director -- Manufacture and Process, and will be based in Shenyang. Mr Kong brings a wealth of manufacturing experience under US and EU compliant manufacturing environments. -- While exports account for a small portion of revenue and the company remains focused on its core business in China, 3SBio and its products EPIAO and TPIAO continue to be recognized by more physicians and patients in overseas markets. First half export sales grew 45.7% year-over-year and have already exceeded overseas sales for all of 2008.
Dr. Jing Lou, chief executive officer of 3SBio, commented: "We had a good quarter with an encouraging trend in our operating performance. Sales of our leading products, EPIAO and TPIAO both grew by over 37% due to the strong growth of the dialysis market and our continued efforts to raise awareness of 3SBio in the oncology segment of the market. Our share of the Chinese EPO market now exceeds that of our five closest competitors combined and we reiterate our 2009 revenue guidance. I am pleased to have Mr. Deyu Kong join us as Director -- Manufacture and Process. He will be based in Shenyang where we are expanding our manufacturing capacity at least four-fold. Mr Kong's experience with international biotech manufacturing protocols will help us as we explore biosimilar opportunities in the EU and US."
Three months ended June 30, 2009 Unaudited Financial Results
Net revenues. Net revenues increased by 36.8% to RMB81.5 million (US$11.9 million) for the second quarter of 2009 from RMB59.6 million (US$8.7 million) for the same period in 2008. This increase was largely due to continued strength from EPIAO and TPIAO products which increased by 37.6% and 38.4%, respectively, over the same period in 2008. The growth in sales from EPIAO was driven in part by an expanded oncology sales force, which continued to perform well. TPIAO remained 3SBio's second largest revenue contributor in the quarter, accounting for 27.3% of total net revenues. Export sales grew by 25.5% to RMB3.5 million (US$0.5 million), and sales of 3SBio's IV Iron Sucrose rose 42.7% to RMB3.0 million (US$0.4 million).
Gross profit. As a result of continued sales growth from key products, gross profit increased by 38.1% to RMB75.0 million (US$11.0 million) for the second quarter of 2009 from RMB54.3 million (US$7.9 million) for the same period in 2008. Gross margin increased by 0.9% to 92.0% for the second quarter of 2009 from 91.1% for the same period in 2008.
Operating expenses. GAAP operating expenses were RMB49.2 million (US$7.2 million) for the second quarter of 2009, an increase of 25.8% from GAAP operating expenses of RMB39.1 million (US$5.7 million) for the same period in 2008. Non-GAAP operating expenses were RMB48.0 million (US$7.0 million) for the second quarter of 2009, an increase of 28.2% from non-GAAP operating expenses of RMB37.4 million (US$ 5.5 million) for the same period in 2008. The increase in operating expenses was largely driven by higher sales and marketing expenses.
-- Research and development ("R&D") costs. GAAP R&D costs for the second quarter of 2009 were RMB4.3 million (US$0.6 million), or 5.2% of net revenue, compared to RMB3.0 million (US$0.4 million), or 5.1% of net revenue for the same period in 2008. -- Sales, marketing and distribution expense. GAAP sales, marketing and distribution expenses for the second quarter of 2009 were RMB36.2 million (US$5.3 million), compared to RMB26.6 million (US$3.9 million) for the same period in 2008. The increase was primarily attributable to higher sales activities in general, continued investment in building the TPIAO brand and EPIAO penetration of the oncology market. This represented 44.5% of net revenue, almost unchanged from 44.6% for the same period in 2008. -- General and administrative expenses. GAAP general and administrative expenses for the second quarter of 2009 were RMB8.7 million (US$1.3 million), representing a decrease of 8.7% from general and administrative expenses of RMB9.5million (US$1.4 million) for the same period in 2008. This marked a decline to 10.6% of net revenue for the second quarter of 2009, compared to 15.9% of net revenue for the second quarter of 2008.
Operating income. GAAP operating income was RMB25.8 million (US$3.8 million) for the second quarter of 2009, an increase of 69.9% from operating income of RMB15.2 million (US$2.2 million) for the same period in 2008. Non-GAAP operating income for the second quarter of 2009 grew by 60.1% to RMB27.1 million (US$4.0 million), compared to RMB 17.0 million (US$2.5 million) in the second quarter of 2008.
Interest income. The Company recorded net interest income of RMB2.5 million (US$0.4 million) for the second quarter of 2009, compared to RMB5.2 million (US$0.8 million) for the same period in 2008. As experienced in the first quarter of 2009, the decrease in interest income was partially due to the decrease in the prevailing market interest rates in the second quarter of 2009, compared to the same period in 2008.
Net income. GAAP net income was RMB27.0 million (US$4.0 million) for the second quarter of 2009, 39.2% higher than net income of RMB19.4 million (US$2.8 million) for the same period in 2008. Non-GAAP net income for the second quarter of 2009 was RMB26.7 million (US$3.9 million), 26.3% higher than non-GAAP net income of RMB21.1 million (US$3.1 million) for the second quarter of 2008.
Six months ended June 30, 2009 Unaudited Financial Results
Net revenues. Our net revenues increased by RMB35.1 million, or 30.5%, from RMB115.0 million (US$16.8 million) for the six months ended June 30, 2008 to RMB150.1 million (US$22.0 million) for the six months ended June 30, 2009. The increase was primarily attributable to increased sales from our EPIAO and TPIAO products, underpinned by continued strong demand in the oncology and nephrology markets.
Net revenues from EPIAO increased by RMB21.4 million, or 29.5%, to RMB94.0 million (US$13.8 million) for the six months ended June 30, 2009. Net revenues from TPIAO increased by RMB9.5 million, or 30.0%, to RMB40.9 million (US$6.0 million) for the six months ended June 30, 2009. In addition, revenue from our export business was RMB6.9 million (US$1.0 million), representing an increase of 45.7% over the first half of 2008, while revenue from our in-licensed Iron Sucrose supplement was RMB5.0 million (US$0.7 million), representing an increase of 44.6% over the first half of 2008.
Operating income. For the six months ended June 30, 2009, GAAP operating income increased by 56.3% to RMB45.9 million (US$6.7 million), compared to RMB29.4 million (US$4.3 million) for the same period in 2008. year. Non-GAAP operating income increased by 51.1% to RMB47.7 million (US$7.0 million), compared to RMB31.6 million (US$4.6 million) for the same period in 2008.
GAAP operating margin for the six months ended June 30, 2009 was 30.6% as compared to 25.5% for the six months ended June 30, 2008. Non-GAAP operating margin was 31.8% for the six months ended June 30, 2009, as compared to 27.4% in the same period in 2008.
Net income. GAAP net income for the first half of 2009 increased by RMB3.7 million, or 9.5%, to RMB42.9 million (US$6.3million) compared with RMB39.1 million (US$5.7 million) for the same period in 2008. GAAP net margin for the six months ended June 30, 2009 was 28.6% as compared to 34.0% for the six months ended June 30, 2008. GAAP net income per ADS for the first half of 2009 increased to RMB1.99 (US$0.29) from RMB1.80 (US$0.26) for the corresponding period in 2008.
Non-GAAP net income for the first half of 2009 increased by RMB6.3 million, or 15.3%, to RMB47.7 million (US$7.0 million) compared with RMB41.3 million (US$6.0 million) for the same period in 2008. Non-GAAP net margin for the six months ended June 30, 2009 was 31.8% as compared to 35.9% for the six months ended June 30, 2008. Non-GAAP net income per ADS for the first half of 2009 increased to RMB2.21 (US$0.32) from RMB1.90 (US$0.28) for the corresponding period in 2008.
Cash and cash equivalents / Time deposits. 3SBio had positive operating cash flows of RMB 33.2 million (US$4.9 million) for the first half of 2009, and as of June 30, 2009 retained a strong balance sheet with cash, cash equivalents and time deposits of RMB756.1 million (US$110.7 million), a 3.1% increase from RMB733.0 million (US$107.4 million) as of December 31, 2008.
2009 Full Year Guidance
Based on current market conditions and visibility provided during the second quarter, the Company reiterates its total net revenue target for the full year of 2009 of between US$43 million to US$45 million, resulting in a year-over-year increase of approximately 21% to 26%.
Conference Call
3SBio's senior management will host a conference call at 5:00 am (Pacific) / 8:00 am (Eastern) / 8:00 pm (Beijing/Hong Kong) on Wednesday, August 12, 2009 to discuss its 2009 second quarter financial results and recent business activity. The conference call may be accessed using the dial-in numbers below:
Conference ID: 21352657 Local dial-in: China - landline 800-819-0121 China - mobile 400-620-8038 International toll-free dial-in: Hong Kong 800933053 United Kingdom 080-8234-6646 United States 1-866-519-4004 International toll dial-in: 65-6735-7955 Replay
A telephone replay will be available two hours after the call until August 17, 2009, at:
International dial-in: +61-2-8235-5000 United States dial-in: 1-866-214-5335 Webcast
A live webcast of the conference will be available on the investor relations page of 3SBio's website at http://bbs.3sbio.com/en/News/xinvestors.aspx and at http://tinyurl.com/l8hs96 . A replay of the webcast will be available within one hour after the conclusion of the call.
Non-GAAP Financial Measures: Reconciliation of GAAP to Non-GAAP
To supplement the Company's financial information presented in accordance with general accepted accounting principles ("GAAP"), the Company has utilized some non-GAAP financial measures to provide investors and management with supplemental measures that facilitate comparisons of operating performance and trends with prior and future operating performance, and that may not otherwise be apparent on a GAAP basis. These non-GAAP financial measures include non- GAAP net income, non-GAAP net income per share, non-GAAP net income per ADS, non-GAAP operating income, non-GAAP operating expenses, non-GAAP gross profit etc. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principals, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures. Please see the attached reconciliation of GAAP to non-GAAP for an explanation of the amounts excluded to arrive at non-GAAP financial measures for the three-month periods ended June 30, 2008 and June 30, 2009 and for the six month periods ended June 30, 2009 and June 30, 2008.
Statement Regarding Unaudited Financial Information
The unaudited financial information set forth above is preliminary and subject to adjustments and modifications. The audited financial statements and related notes are to be included in our annual report on Form 20-F for the year ending December 31, 2009. Adjustments and modifications to the financial statements may be identified during the course of the audit work, which could result in significant differences from this preliminary unaudited financial information.
Currency Convenience Translation
For the convenience of readers, certain RMB amounts have been translated into US dollars at the rate of RMB6.8302 to US$1.00, the noon buying rate for US dollars in effect on June 30, 2009 for cable transfers of RMB per US dollar as certified for customs purposes by the Federal Reserve Bank of New York. A rate of 6.8591 was used for comparative purposes as of June 30, 2008.
About 3SBio Inc.
3SBio Inc. is a leading, fully integrated biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, primarily in China. For more information, please visit 3SBio on the web at http://www.3sbio.com/ .
Safe Harbor Statement
Certain statements in the disclosures of 3SBio, Inc. (the "Company" or "3SBio") for the second quarter, 2009 ("Disclosures") that are not purely historical in nature constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Disclosures include the press release, the conference call and any accompanying materials, and any other information issued, released or publicized by the Company with respect to the second quarter of 2009. These forward-looking statements include, but may not be limited to, discussions and statements regarding revenue guidance, product development, regulatory approval process, plant completion, production capacity, capital expense estimate, future operations, investment portfolio composition ad performance, and future strategies. These statements are based upon 3SBio management's current expectations, and actual results could differ materially. Among the factors that could cause 3SBio's actual results to differ from what the Company currently anticipates may include competition from other domestic and foreign pharmaceutical companies; the expected market growth for pharmaceutical products in China; market acceptance of 3SBio products; expected hospital or patient demand for our products; the completion of 3SBio's ongoing clinical trials as planned; receipt and timing of regulatory approvals for 3SBio's new products and uses; 3SBio's ability to expand its production, sales and distribution network and other aspects of its operations; its ability to effectively protect its intellectual property; changes in the healthcare industry in China, including changes in the healthcare policies and regulations of the PRC government and changes in the healthcare insurance sector in the PRC; and fluctuations in general economic and business conditions in China. For additional information on factors identified above and other risk factors, uncertainties and assumptions that may affect 3SBio's business, financial conditions and results of operations, please refer to the Company's filings with the Securities and Exchange Commission at http://www.sec.gov/ , and, in particular, "Introduction -- Cautionary Statement concerning Forward Looking Statements," Item 3.D "Risk Factors," Item 5. "Operating and Financial Review and Prospects," and other applicable discussions in 3SBio's annual report on Form 20-F for the year ended December 31, 2008. 3SBio undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.
For further information, please contact: Investor Contacts 3SBio Inc. Bo Tan Chief Financial Officer Tel: +86-24-2581-1820 Email: ir@3SBio.com Tom Folinsbee Director of Investor Relations Tel: +852-8191-6991 Email: ir@3SBio.com 3SBio Inc. and subsidiaries Unaudited consolidated balance sheets (expressed in thousands) December 31, June 30, June 30, 2008 2009 2009 RMB RMB US$ Assets Current assets Cash and cash equivalents 439,237 178,125 26,079 Time deposits with financial institutions 293,809 577,935 84,615 Accounts receivable, less allowance for doubtful accounts: December 31, 2008 - RMB4,503; June 30, 2009 - RMB4,317 (US$632) 48,927 60,961 8,925 Notes receivable 24,840 28,889 4,230 Inventories 7,748 10,074 1,475 Prepaid expenses and other receivables 8,249 12,156 1,780 Deferred tax assets 1,802 1,873 274 Total current assets 824,612 870,013 127,378 Available-for-sale securities 26,700 11,003 1,611 Property, plant and equipment, net 78,185 96,068 14,065 Lease prepayments 8,894 8,717 1,276 Non-current deposits 8,521 12,681 1,857 Intangible assets, net 5,225 4,675 684 Deferred tax assets 781 190 28 Total assets 952,918 1,003,347 146,899 Liabilities Current liabilities Accounts payable 1,939 3,199 468 Deferred grant income 374 374 55 Accrued expenses and other payables 25,273 27,072 3,964 Income tax payable 1,256 3,127 458 Other current liabilities 57 -- -- Total current liabilities 28,899 33,772 4,945 Deferred grant income 3,152 2,965 434 Other liabilities 472 -- -- Total liabilities 32,523 36,737 5,379 Commitments and contingencies -- -- -- Shareholders' equity Share capital -ordinary shares US$0.0001 par value, 500,000,000 shares authorized, 150,575,955 and 150,586,455 issued and outstanding as of December 31, 2008 and June 30, 2009, respectively. 121 121 18 Additional paid-in capital 908,377 910,271 133,272 Accumulated other comprehensive loss (102,126) (100,669) (14,740) Retained earnings 114,023 156,887 22,970 To Total shareholders' equity 920,395 966,610 141,520 Total liabilities and shareholders' equity 952,918 1,003,347 146,899 3SBio Inc. and subsidiaries Unaudited quarterly consolidated statements of income (expressed in thousands, except per share , per ADS and other share and ADS data) Three Months Ended June 30,2009 GAAP GAAP Adjustment RMB US$ RMB Net Revenues: EPIAO 51,081 7,479 -- TPIAO 22,217 3,253 -- Intefen 1,289 189 -- Inleusin 425 62 -- Iron 2,951 432 -- Export 3,520 515 -- Total net revenues 81,483 11,930 -- Cost of revenues (6,518) (954) 191(1) Gross profit 74,965 10,976 -- Operating expenses Research and development costs (4,252) (623) 175(1) Sales, marketing and distribution expenses (36,242) (5,306) 168(1) General and administrative expenses (8,662) (1,268) 795(1) Total operating expenses (49,156) (7,197) Operating income 25,809 3,779 Other income /(expenses), net Interest income 2,454 359 -- Grant income 93 14 -- Net realized gain on available-for-sale securities 1,611 236 (1,611)(2) Others 1,681 246 -- Total other income, net 5,839 855 Income before income tax expense 31,648 4,634 Income tax expense (4,670) (684) -- Net income 26,978 3,950 Net income per share: Basic and diluted 0.18 0.03 Basic weighted average number of shares outstanding 150,586,455 150,586,455 Effect of dilutive potential shares 132,858 132,858 Diluted weighted average number of shares outstanding 150,719,313 150,719,313 Net income per ADS: Basic and diluted 1.25 0.18 Basic weighted average number of ADSs outstanding 21,512,351 21,512,351 Effect of dilutive potential ADSs 18,979 18,979 Diluted weighted average number of ADSs outstanding 21,531,330 21,531,330 Non-GAAP Non-GAAP RMB US$ Net Revenues: EPIAO 51,081 7,479 TPIAO 22,217 3,253 Intefen 1,289 189 Inleusin 425 62 Iron 2,951 432 Export 3,520 515 Total net revenues 81,483 11,930 Cost of revenues (6,327) (926) Gross profit 75,156 11,004 Operating expenses Research and development costs (4,077) (597) Sales, marketing and distribution expenses (36,074) (5,282) General and administrative expenses (7,867) (1,152) Total operating expenses (48,018) (7,031) Operating income 27,138 3,973 Other income /(expenses), net Interest income 2,454 359 Grant income 93 14 Net realized gain on available-for-sale securities -- -- Others 1,681 246 Total other income, net 4,228 619 Income before income tax expense 31,366 4,592 Income tax expense (4,670) (684) Net income 26,696 3,908 Net income per share: Basic and diluted 0.18 0.03 Basic weighted average number of shares outstanding 150,586,455 150,586,455 Effect of dilutive potential shares 132,858 132,858 Diluted weighted average number of shares outstanding 150,719,313 150,719,313 Net income per ADS: Basic and diluted 1.24 0.18 Basic weighted average number of ADSs outstanding 21,512,351 21,512,351 Effect of dilutive potential ADSs 18,979 18,979 Diluted weighted average number of ADSs outstanding 21,531,330 21,531,330
Notes to reconciliation of our GAAP statements of income to our non-GAAP statements of income:
(1). To exclude share-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing operating results. (2). To exclude the impact caused by the impairment and disposal of available-for-sale securities, which is one-off in nature. 3SBio Inc. and subsidiaries Unaudited quarterly consolidated statements of income (expressed in thousands, except per share , per ADS and other share and ADS data) Three Months Ended June 30,2008 GAAP GAAP Adjustment RMB US$ RMB Net Revenues: EPIAO 37,125 5,413 -- TPIAO 16,056 2,341 -- Intefen 1,308 191 -- Inleusin 201 29 -- Iron 2,068 301 -- Export 2,805 409 -- Others 1 -- -- Total net revenues 59,564 8,684 Cost of revenues (5,285) (771) 115(1) Gross profit 54,279 7,913 Operating expenses Research and development costs (3,040) (443) 154(1) Sales, marketing and distribution expenses (26,558) (3,872) 301(1) General and administrative expenses (9,486) (1,383) 1,188(1) Total operating expenses (39,084) (5,698) Operating income 15,195 2,215 Other income /(expenses), net Interest income 5,190 757 -- Grant income 94 14 -- Others 2,464 359 -- Total other income, net 7,748 1,130 Income before income tax expense and minority interests 22,943 3,345 Income tax expense (3,576) (522) -- Income before minority interests 19,367 2,823 Minority interests, net of tax 18 3 -- Net income 19,385 2,826 Net income per share: Basic and diluted 0.13 0.02 Basic weighted average number of shares outstanding 152,099,155 152,099,155 Effect of dilutive potential shares 4,318 4,318 Diluted weighted average number of shares outstanding 152,103,473 152,103,473 Net income per ADS: Basic and diluted 0.89 0.13 Basic weighted average number of ADSs outstanding 21,728,451 21,728,451 Effect of dilutive potential ADSs 617 617 Diluted weighted average number of ADSs outstanding 21,729,068 21,729,068 Non-GAAP Non-GAAP RMB US$ Net Revenues: EPIAO 37,125 5,413 TPIAO 16,056 2,341 Intefen 1,308 191 Inleusin 201 29 Iron 2,068 301 Export 2,805 409 Others 1 -- Total net revenues 59,564 8,684 Cost of revenues (5,170) (754) Gross profit 54,394 7,930 Operating expenses Research and development costs (2,886) (421) Sales, marketing and distribution expenses (26,257) (3,828) General and administrative expenses (8,298) (1,210) Total operating expenses (37,441) (5,459) Operating income 16,953 2,471 Other income /(expenses), net Interest income 5,190 757 Grant income 94 14 Others 2,464 359 Total other income, net 7,748 1,130 Income before income tax expense and minority interests 24,701 3,601 Income tax expense (3,576) (522) Income before minority interests 21,125 3,079 Minority interests, net of tax 18 3 Net income 21,143 3,082 Net income per share: Basic and diluted 0.14 0.02 Basic weighted average number of shares outstanding 152,099,155 152,099,155 Effect of dilutive potential shares 4,318 4,318 Diluted weighted average number of shares outstanding 152,103,473 152,103,473 Net income per ADS: Basic and diluted 0.97 0.14 Basic weighted average number of ADSs outstanding 21,728,451 21,728,451 Effect of dilutive potential ADSs 617 617 Diluted weighted average number of ADSs outstanding 21,729,068 21,729,068
Notes to reconciliation of our GAAP statements of income to our adjusted statements of income:
(1). To exclude share-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing operating results. 3SBio Inc. and subsidiaries Unaudited quarterly consolidated statements of income (expressed in thousands, except per share , per ADS and other share and ADS data) Six Months Ended June 30,2009 GAAP GAAP Adjustment RMB US$ RMB Net Revenues: EPIAO 93,991 13,761 -- TPIAO 40,927 5,992 -- Intefen 2,555 374 -- Inleusin 693 101 -- Iron 4,997 732 -- Export 6,851 1,003 -- Others 67 10 -- Total net revenues 150,081 21,973 -- Cost of revenues (12,517) (1,833) 242(1) Gross profit 137,564 20,140 -- Operating expenses Research and development costs (6,709) (982) 245(1) Sales, marketing and distribution expenses (69,191) (10,130) 302(1) General and administrative expenses (15,751) (2,306) 988(1) Total operating expenses (91,651) (13,418) Operating income 45,913 6,722 Other income /(expenses), net Interest income 6,526 955 -- Grant income 187 27 -- Disposal gain on available- for-sale securities 1,611 236 (1,611)(2) Impairment loss on available-for-sale securities (4,624) (677) 4,624(2) Others 1,339 196 -- Total other income, net 5,039 737 Income before income tax expense 50,952 7,459 -- Income tax expense (8,088) (1,184) -- Net income 42,864 6,275 Net income per share: Basic and diluted 0.28 0.04 Basic weighted average number of shares outstanding 150,586,455 150,586,455 Effect of dilutive potential shares 107,818 107,818 Diluted weighted average number of shares outstanding 150,694,273 150,694,273 Net income per ADS: Basic and diluted 1.99 0.29 Basic weighted average number of ADSs outstanding 21,512,351 21,512,351 Effect of dilutive potential ADSs 15,402 15,402 Diluted weighted average number of ADSs outstanding 21,527,753 21,527,753 Non-GAAP Non-GAAP RMB US$ Net Revenues: EPIAO 93,991 13,761 TPIAO 40,927 5,992 Intefen 2,555 374 Inleusin 693 101 Iron 4,997 732 Export 6,851 1,003 Others 67 10 Total net revenues 150,081 21,973 Cost of revenues (12,275) (1,797) Gross profit 137,806 20,176 Operating expenses Research and development costs (6,464) (946) Sales, marketing and distribution expenses (68,889) (10,086) General and administrative expenses (14,763) (2,161) Total operating expenses (90,116) (13,193) Operating income 47,690 6,983 Other income /(expenses), net Interest income 6,526 955 Grant income 187 27 Disposal gain on available- for-sale securities -- -- Impairment loss on available-for-sale securities -- -- Others 1,339 196 Total other income, net 8,052 1,178 Income before income tax expense 55,742 8,161 Income tax expense (8,088) (1,184) Net income 47,654, 6,977 Net income per share: Basic and diluted 0.32 0.05 Basic weighted average number of shares outstanding 150,586,455 150,586,455 Effect of dilutive potential shares 107,818 107,818 Diluted weighted average number of shares outstanding 150,694,273 150,694,273 Net income per ADS: Basic and diluted 2.21 0.32 Basic weighted average number of ADSs outstanding 21,512,351 21,512,351 Effect of dilutive potential ADSs 15,402 15,402 Diluted weighted average number of ADSs outstanding 21,527,753 21,527,753
Notes to reconciliation of our GAAP statements of income to our adjusted statements of income:
(1). To exclude share-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing operating results. (2). To exclude the impact caused by the impairment and disposal of available-for-sale securities, which is one-off in nature. 3SBio Inc. and subsidiaries Unaudited quarterly consolidated statements of income (expressed in thousands, except per share , per ADS and other share and ADS data) Six Months Ended June 30,2008 GAAP GAAP Adjustment RMB US$ RMB Net Revenues: EPIAO 72,594 10,583 -- TPIAO 31,476 4,589 -- Intefen 2,392 349 -- Inleusin 378 55 -- Iron 3,455 504 -- Export 4,702 686 -- Others 34 5 -- Total net revenues 115,031 16,771 Cost of revenues (10,196) (1,487) 149(1) Gross profit 104,835 15,284 Operating expenses Research and development costs (5,796) (845) 205(1) Sales, marketing and distribution expenses (52,181) (7,608) 394(1) General and administrative expenses (17,480) (2,548) 1,433(1) Total operating expenses (75,457) (11,001) Operating income 29,378 4,283 Other income /(expenses), net Interest income 12,576 1,834 -- Grant income 187 27 -- Others 3,819 557 -- Total other income, net 16,582 2,418 Income before income tax expense and minority interests 45,960 6,701 Income tax expense (6,920) (1,009) -- Income before minority interests 39,040 5,692 Minority interests, net of tax 95 14 -- Net income 39,135 5,706 Net income per share: Basic and diluted 0.26 0.04 Basic weighted average number of shares outstanding 152,099,155 152,099,155 Effect of dilutive potential shares 4,318 4,318 Diluted weighted average number of shares outstanding 152,103,473 152,103,473 Net income per ADS: Basic and diluted 1.80 0.26 Basic weighted average number of ADSs outstanding 21,728,451 21,728,451 Effect of dilutive potential ADSs 617 617 Diluted weighted average number of ADSs outstanding 21,729,068 21,729,068 Non-GAAP Non-GAAP RMB US$ Net Revenues: EPIAO 72,594 10,583 TPIAO 31,476 4,589 Intefen 2,392 349 Inleusin 378 55 Iron 3,455 504 Export 4,702 686 Others 34 5 Total net revenues 115,031 16,771 Cost of revenues (10,047) (1,464) Gross profit 104,984 15,307 Operating expenses Research and development costs (5,591) (815) Sales, marketing and distribution expenses (51,787) (7,550) General and administrative expenses (16,047) (2,340) Total operating expenses (73,425) (10,705) Operating income 31,559 4,602 Other income /(expenses), net Interest income 12,576 1,834 Grant income 187 27 Others 3,819 557 Total other income, net 16,582 2,418 Income before income tax expense and minority interests 48,141 7,019 Income tax expense (6,920) (1,009) Income before minority interests 41,221 6,010 Minority interests, net of tax 95 14 Net income 41,316 6,024 Net income per share: Basic and diluted 0.27 0.04 Basic weighted average number of shares outstanding 152,099,155 152,099,155 Effect of dilutive potential shares 4,318 4,318 Diluted weighted average number of shares outstanding 152,103,473 152,103,473 Net income per ADS: Basic and diluted 1.90 0.28 Basic weighted average number of ADSs outstanding 21,728,451 21,728,451 Effect of dilutive potential ADSs 617 617 Diluted weighted average number of ADSs outstanding 21,729,068 21,729,068
Notes to reconciliation of our GAAP statements of income to our adjusted statements of income:
(1). To exclude share-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing operating results.
3SBio Inc.
CONTACT: Bo Tan, Chief Financial Officer of 3SBio Inc., +86-24-2581-1820,
or Tom Folinsbee, Director of Investor Relations, of 3SBio Inc.,
+852-8191-6991, or ir@3SBio.com
Web site: http://www.3sbio.com/
http://bbs.3sbio.com/en/News/xinvestors.aspx
http://tinyurl.com/l8hs96
