SHENZHEN, China, March 25, 2011 /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 quarter and for the full year ended December 31, 2010.
Financial Results for the Quarter Ended December 31, 2010
- Net revenue from continuing operations(i) increased 33.6% to
RMB 188.8 million ($28.6 million)(ii), from RMB 141.3 million in the prior year period.
- Operating income from continuing operations rose to
RMB 18.7 million ($2.8 million) from RMB 2.7
million in the prior year period.
- Net income from continuing operations was RMB 11.4 million ($1.7
million), which yielded earnings from continuing operations
per share(iii) of RMB 0.11
($0.02).
- Total net income attributable to the Company was RMB 13.0 million ($2.0
million), which yielded earnings per ADS of RMB 0.50 ($0.08)
and earnings per share of RMB 0.13
($0.02).
- Non-GAAP adjusted EBITDA per share was RMB 0.25 ($0.04),
compared to RMB 0.14 in the fourth
quarter of 2009.
Xiaochun Wang, Chief Executive
Officer and Chairman of Tongjitang, stated, "Our strong revenue
performance in the fourth quarter reflects notable and increasing
contributions from our major drugs, Xianling Gubao and Jingshu
Granules, which were included in the National Essential Drug List
("EDL"), as well as for Moisturizing and Anti-Itching Capsules.
This revenue improvement shows the long-anticipated benefits
of the healthcare reform and reflects gradual implementation of the
EDL by local governments. We have started to realize gains
from the industry reform and are confident that further
implementation will continue to contribute to our long-term
success."
Net revenue from continuing operations in the fourth quarter of
2010 increased 33.6% to RMB 188.8
million ($28.6 million) from
RMB 141.3 million in the fourth
quarter of 2009. Xianling Gubao sales were RMB 119.1 million ($18.0
million) in the fourth quarter of 2010, compared to
RMB 91.4 million in the fourth
quarter of 2009. Net revenue from Moisturizing &
Anti-itching Capsules and Zaoren Anshen Capsules increased to
RMB 23.0 million ($3.5 million) in
the fourth quarter of 2010, compared to RMB
18.7 million in the fourth quarter of 2009. Net
revenue from Jingshu Granules increased to RMB 17.4 million ($2.6
million) in the fourth quarter of 2010, compared to
RMB 2.2 million in the fourth quarter
of 2009. Net revenue from the Company's other products remained
flat at RMB 29.3 million
($4.4 million) from RMB 29.0 million in the fourth quarter of
2009.
Gross profit from continuing operations increased 27.7% to
RMB 105.3 million ($16.0 million) in the fourth quarter of 2010 from
RMB 82.5 million in the fourth
quarter of 2009. Gross margin from continuing operations was
55.8% in the fourth quarter of 2010, compared to 58.4% in the same
period of 2009. The gross margin decline mainly reflects
increased costs of raw materials related to herbal medicines.
In particular, the cost of San Qi, the major ingredient used
in Jingshu Granules, tripled, during the first half of the year.
Although its price has steadied since then, the impact on
gross margin became increasingly apparent in the fourth quarter
when the Company depleted its inventory and started to consume the
higher-cost inventory purchased in the first half of the year for
production. There was also a slight increase in the price of
barrenwort, used in the production of Xianling Gubao, in the fourth
quarter of 2010.
Operating income from continuing operations in the fourth
quarter of 2010 increased to RMB 18.7
million ($2.8 million) from
RMB 2.7 million in the fourth quarter
of 2009. Improved operating income was mainly attributable to
increased net revenues in the period.
Net income from continuing operations was RMB 11.4 million ($1.7
million), which yielded earnings from continuing operations
per share of RMB 0.11 ($0.02).
Total net income attributable to the Company was RMB 13.0 million ($2.0
million), which yielded earnings per ADS of RMB 0.50 ($0.08)
and earnings per share of RMB 0.13
($0.02).
Non-GAAP adjusted EBITDA in the fourth quarter of 2010 increased
to RMB 25.7 million ($3.9 million) from RMB
14.8 million in the fourth quarter of 2009. Non-GAAP
adjusted EBITDA per share was RMB
0.25 ($0.04) in the fourth
quarter of 2010, compared to non-GAAP adjusted EBITDA per share of
RMB 0.14 in the fourth quarter of
2009. For the fourth quarter of 2010, the number of shares
used in the computation of GAAP earnings per share and Non-GAAP
adjusted EBITDA per share was 104.1 million, compared to 106.2
million in the prior year period. Please refer to the
Company's GAAP to non-GAAP reconciliation table provided below for
additional details.
Balance Sheet
As of December 31, 2010, the
Company's continuing operations had cash and cash equivalents of
RMB 195.1 million ($29.6 million). This compares to
RMB 230.4 million as of December 31, 2009 and RMB
244.1 million as of September 30,
2010.
Financial Results for the Full Year Ended December 31, 2010
For the full year ended December 31,
2010, revenues from continuing operations were RMB 544.5 million ($82.5
million), up from RMB 446.3
million for the full year of 2009. During this same
time period, gross profit from continuing operations was
RMB 302.5 million ($45.8 million), up from RMB 268.8 million. Operating income from
continuing operations was RMB 6.7
million ($1.0 million)
compared to a loss from operations of RMB
12.8 million for the full year of 2009. Total net loss
attributable to the Company was RMB 11.3
million ($1.7 million), or a
loss of RMB 0.11 ($0.02) per share, compared to RMB 3.8 million, or RMB
0.03 per share for the full year of 2009. Net loss per
ADS was RMB 0.43 ($0.07) for the full year of 2010, compared to
RMB 0.12 for the full year of
2009. On a year over year basis, weighted average number of
shares outstanding for the full year of 2010 was 104.1 million.
Business Updates
- On November 1, 2010, Tongjitang
announced that it had entered into a definitive agreement and plan
of merger, or the merger agreement, with Hanmax Investment Limited
("Hanmax"), Fosun Industrial Co., Limited ("Fosun") and Tonsun
International Company Limited ("Tonsun"), a Cayman Islands exempted
company, all of the outstanding shares of which are owned by Hanmax
and Fosun, as amended on February 21, 2011. Mr. Xiaochun
Wang, Chairman of the Company's board of directors, Chief Executive
Officer of the Company and the beneficial owner of approximately
51% of the Company's outstanding ordinary shares, controls Hanmax.
Fosun beneficially owns approximately 32% of the Company's
outstanding ordinary shares.
Pursuant to the merger
agreement, each ordinary share of the Company (including shares
represented by American Depositary Shares, each of which represents
four ordinary shares) issued and outstanding immediately prior to
the effective time of the merger, other than the ordinary shares
and ordinary shares represented by American Depositary Shares owned
by Hanmax, Tonsun and Fosun will be cancelled in exchange for the
right to receive $1.125 (or $4.50 per American Depositary Share,
not including the fees and expenses of the ADS depositary) in cash
without interest. The offer represents a 13.6% premium over the
closing price of $3.96 per American Depositary Share on October 28,
2010, and a 14.8% premium over the last month volume weighted
average closing price of $ 3.92 per American Depositary
Share.
The Company's Board of
Directors, acting upon the unanimous recommendation of a special
committee of independent directors, approved the merger agreement
and resolved to recommend that the Company's shareholders vote to
adopt the merger agreement. The special committee, which is
composed solely of directors unrelated to any of Tonsun, Fosun, Mr.
Xiaochun Wang and Hanmax, negotiated and approved the terms of the
merger agreement with the assistance of its financial and legal
advisors.
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- On February 24, 2011, the
Company announced that it has called an extraordinary general
meeting of shareholders, to be held at 10:00 a.m. China time on
Thursday, March 31, 2011, at the Company's offices on the 5th Floor
of Block B at Nanshan Medical Device Park, 1019 Nanhai Avenue,
Nanshan District, Shenzhen, 518067 Guangdong Province, the People's
Republic of China, to consider and vote on the proposal to adopt
the merger agreement, dated as of October 29, 2010, as amended on
February 21, 2011, among Tongjitang, Hanmax Investment Limited
("Hanmax"), Fosun Industrial Co., Limited ("Fosun"), and Tonsun
International Company Limited, under which Tongjitang would be
acquired by Hanmax and Fosun. Shareholders of record as of
the close of business on Thursday, March 17, 2011 will be entitled
to vote at the extraordinary general meeting.
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- On September 28, 2010,
Tongjitang announced that it has entered into a share transfer
agreement with Guizhou Huixian Investment Management Company
Limited ("GHIMC") to sell 100% of the equity interest in Guizhou
Tongjitang Asset Management Company Limited ("GTAM"), which holds
Guizhou Tongjitang Pharmaceutical Distribution Co., Ltd., Guizhou
Tongjitang Pharmacy Chain Stores Co., Ltd. and a 95% equity
interest in Gui Liquor Co., Ltd., for a total cash consideration of
RMB 259.3 million. In connection with these transactions, GHIMC has
released Guizhou Tongjitang Pharmaceutical Co., Ltd., the Company's
wholly owned subsidiary, from its obligation to guarantee RMB 105.0
million bank loans of Gui Liquor Co., Ltd.
Pursuant to the share transfer
agreement, the purchase price will be payable in four installments
of 5%, 5%, 45% and 45%, respectively. As of the date of this press
release, the Company has received the first and second installment
of RMB 25.9 million from the Buyer.
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- Effective December 2, 2010, Mr.
Charles Wang resigned for personal reasons as Chief Financial
Officer of the Company, and pending appointment of his permanent
replacement, Chief Operating Officer and member of Tongjitang's
Board of Directors Mr. Justin Chen has served as the Company's
interim Chief Financial Officer. The Company has commenced an
executive search in order to find a replacement.
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Conference Call
Tongjitang's management team will hold a conference call on
Monday, March 28, 2011, 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:
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United States toll
free:
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1-877-941-2321
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Hong Kong toll free:
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800-908-530
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China toll free:
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400-1200611
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International:
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1-480-629-9714
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Listeners may access the replay from approximately two hours
after the call ends through April 4,
2011 by dialing the following numbers:
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United States toll
free:
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1-877-870-5176
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International:
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1-858-384-5517
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Password:
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4426889
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An audio webcast of the call will also be available through the
Company's website at www.tongjitang.com.
About Non-GAAP Financial Measures
To supplement the Company's condensed consolidated financial
information presented in accordance with the United States
Generally Accepted Accounting Principles ("GAAP"), the Company also
discloses unaudited and non-GAAP adjusted EBITDA and non-GAAP
adjusted EBITDA per share, which are non-GAAP financial measures
that exclude depreciation and amortization, interest (income)
expense, income tax (benefit) expense, loss (gain) from
discontinued operations (net of tax), gain on disposal of
subsidiaries (net of tax) and share-based compensation expenses
recorded under FASB 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 prepared or disclosed 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 the
Company's 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.
About Tongjitang Chinese Medicines Company
Tongjitang Chinese Medicines Company, through its operating
subsidiaries Guizhou Tongjitang Pharmaceutical Co., Ltd., Guizhou
Long-Life Pharmaceutical Company Limited, Qinghai Pulante
Pharmaceutical Co., Ltd. and Anhui Jingfang Pharmaceutical Co.,
Ltd., 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 35 other modernized traditional Chinese
medicine products and 36 western medicines. Please visit
www.tongjitang.com for more information.
Safe Harbor Statements
This announcement contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the
Company and the industry. Information regarding these risks,
uncertainties and other factors is included in the Company's most
recent annual report on Form 20-F, the Company's notice of
extraordinary general meeting and proxy statement filed as exhibits
to the Schedule 13E-3 transaction statement regarding the proposed
merger and other filings with the SEC. The Company
undertakes no obligation to update forward-looking statements to
reflect subsequent occurring events or circumstances, or to changes
in its expectations, except as may be required by law. 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 the
anticipated results.
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CONTACT
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ICR, LLC
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Ashley M. Ammon
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203-682-8200 (Investor
Relations)
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(i) As the previously announced
disposal of Guizhou Tongjitang Asset Management Company Limited
("GTAM."), which holds Guizhou Tongjitang Pharmaceutical
Distribution Co., Ltd., Guizhou Tongjitang Pharmacy Chain Stores
Co., Ltd. and a 95% equity interest in Gui Liquor Co., Ltd. for a
total cash consideration of RMB 259.3 million closed before
December 31, 2010, the results for the periods ended December 31,
2009 and December 31, 2010 reflect GTAM's results as discontinued
operations.
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(ii) 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 and year ended December 31, 2010 were made at
the noon buying rate on December 31, 2010 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 RMB 6.6000 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.
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(iii) All references to "shares"
are to the Company's ordinary shares. Each of the Company's
American Depositary Shares, which are traded on the New York Stock
Exchange, represents four ordinary shares.
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Tongjitang
Chinese Medicines Company
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Condensed
Consolidated Statements of Operations
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(In
thousands, except share and per share data)
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Fourth Quarter Ended December 31
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Year Ended December 31
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2009
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2010
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2010
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2009
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2010
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2010
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RMB
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RMB
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US$
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RMB
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RMB
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US$
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(Note)
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(Note)
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Net revenues
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141,262
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188,777
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28,603
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446,340
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544,523
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82,503
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Cost of revenues
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58,797
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83,491
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12,650
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177,499
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242,027
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36,671
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Gross profit
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82,465
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105,286
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15,953
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268,841
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302,496
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45,832
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Advertising expenses
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(10,479)
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(10,407)
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(1,577)
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(32,335)
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(22,509)
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(3,410)
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Other selling and marketing expenses
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(39,029)
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(51,706)
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(7,834)
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(146,227)
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(190,707)
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(28,895)
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General and administrative expenses
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(19,324)
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(23,037)
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(3,490)
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(81,900)
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(70,597)
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(10,697)
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Research and development expenses
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(5,880)
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(1,381)
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(209)
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(16,057)
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(11,960)
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(1,812)
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Impairment loss on intangible assets
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(4,500)
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-
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(4,500)
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-
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Government grant (related to research and development)
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232
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15
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2
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232
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15
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2
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Gain on disposal of property, plant and equipment and land use rights
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(806)
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(84)
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(13)
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(806)
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(50)
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(8)
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Gain / (loss) from operations
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2,679
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18,686
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2,832
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(12,752)
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6,688
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1,012
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Other income (expenses):
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Interest income
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547
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564
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85
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4,010
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1,789
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271
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Interest expense
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(2,129)
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(5,658)
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(857)
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(8,553)
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(12,606)
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(1,910)
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Government grants
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1,977
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1,680
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255
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5,554
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5,155
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781
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Investment gain / (loss)
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309
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(133)
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(20)
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829
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(222)
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(34)
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Other income / (expenses), net
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624
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(485)
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(73)
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6,950
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(700)
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(106)
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Gain / (loss) from continuing operations before income taxes
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4,007
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14,654
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2,222
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(3,962)
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104
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14
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Income tax benefit / (expense)
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858
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(3,295)
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(499)
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(2,951)
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(5,632)
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(853)
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Gain / (loss) from continuing operations
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4,865
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11,359
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1,723
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(6,913)
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(5,528)
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(839)
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Discontinued operations:
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(Loss) / gain from discontinued operations, net of tax
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(757)
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(9,866)
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(1,495)
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3,122
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(17,297)
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(2,621)
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Gain on disposal of subsidiaries, net of tax
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-
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11,548
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1,750
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-
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11,548
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1,750
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Gain / (loss) attributable to the Company
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4,108
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13,041
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1,978
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(3,791)
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(11,277)
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(1,710)
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|
|
|
|
|
|
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Gain / (loss) from continuing operations per share
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|
|
|
|
|
|
|
|
|
|
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|
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Ordinary shares
|
|
|
|
|
|
|
|
|
|
|
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|
|
-Basic
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0.05
|
|
0.11
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|
0.02
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|
-0.06
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|
-0.05
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|
-0.01
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-Diluted
|
0.05
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|
0.11
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|
0.02
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-0.06
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-0.05
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-0.01
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|
|
|
|
|
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|
|
|
|
|
|
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Gain / (loss) from discontinued operations per share
|
|
|
|
|
|
|
|
|
|
|
|
|
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Ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
-0.01
|
|
0.02
|
|
0.00
|
|
0.03
|
|
-0.06
|
|
-0.01
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-Diluted
|
-0.01
|
|
0.02
|
|
0.00
|
|
0.03
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|
-0.06
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|
-0.01
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|
|
|
|
|
|
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|
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Gain / (loss) per share
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|
|
|
|
|
|
|
|
|
|
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Ordinary shares
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|
|
|
|
|
|
|
|
|
|
|
|
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-Basic
|
0.04
|
|
0.13
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|
0.02
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|
-0.03
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-0.11
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|
-0.02
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-Diluted
|
0.04
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|
0.13
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|
0.02
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|
-0.03
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-0.11
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-0.02
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|
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|
|
|
|
|
|
|
|
|
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Shares used in computation of earnings per share
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Ordinary shares
|
|
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|
|
|
|
|
|
|
|
|
|
-Basic
|
106,153,483
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|
104,066,526
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104,066,526
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122,940,745
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|
104,066,526
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104,066,526
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-Diluted
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106,153,483
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104,068,383
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|
104,068,383
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122,940,745
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|
104,066,526
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|
104,066,526
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|
|
|
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(Note)
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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 period ended December 31, 2010 into United States
dollar (“US$”) is included solely for the convenience of readers
and has been made at the rate of RMB6.6 to US$1.00, which is based
on the noon buying rate in The City of New York for cable transfers
of Renminbi as certified for customs purposes by the Federal
Reserve Bank of New York at December 31, 2010. Such translations
should not be construed as representations that RMB amounts could
be converted into US$ at that rate or any other rate.
|
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|
Tongjitang
Chinese Medicines Company
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(In
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31
|
|
Sept. 30
|
|
Dec. 31
|
|
Dec. 31
|
|
|
2009
|
|
2010
|
|
2010
|
|
2010
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
(Note)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
230,421
|
|
244,145
|
|
195,055
|
|
29,554
|
|
|
Short-term bank
deposit
|
50,000
|
|
82,500
|
|
92,500
|
|
14,015
|
|
|
Notes
receivable
|
62,662
|
|
40,523
|
|
95,463
|
|
14,464
|
|
|
Accounts receivable, net
of allowance
for doubtful accounts
|
234,325
|
|
212,278
|
|
231,485
|
|
35,073
|
|
|
Inventories
|
129,329
|
|
135,993
|
|
126,229
|
|
19,126
|
|
|
Trading
securities
|
1,447
|
|
1,291
|
|
1,138
|
|
172
|
|
|
Prepaid advertising
expenses
|
1,204
|
|
1,640
|
|
650
|
|
98
|
|
|
Receivable on sales of
property,
plant and equipment
|
9,320
|
|
9,320
|
|
9,171
|
|
1,390
|
|
|
Other prepaid expenses
and
current assets, net of
allowance for
doubtful accounts
|
25,675
|
|
87,424
|
|
304,726
|
|
46,171
|
|
|
Deferred tax
assets
|
5,886
|
|
4,830
|
|
8,947
|
|
1,356
|
|
|
Current assets held for
sale
|
321,161
|
|
555,359
|
|
-
|
|
-
|
|
|
Total current assets
|
1,071,430
|
|
1,375,303
|
|
1,065,364
|
|
161,419
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
123,537
|
|
114,271
|
|
111,223
|
|
16,852
|
|
|
Land use rights, net
|
21,456
|
|
21,014
|
|
39,551
|
|
5,993
|
|
|
Deposit for acquisition of a
subsidiary
|
120,599
|
|
-
|
|
-
|
|
-
|
|
|
Deposits for
acquisition
of property, plant
and
equipment, and intangible
assets
|
2,707
|
|
21,373
|
|
1,979
|
|
300
|
|
|
Deferred tax assets
|
2,809
|
|
3,470
|
|
2,931
|
|
444
|
|
|
Long-term other
assets
|
1,000
|
|
1,000
|
|
1,000
|
|
152
|
|
|
Acquired intangible assets,
net
|
27,592
|
|
24,413
|
|
22,996
|
|
3,484
|
|
|
Goodwill
|
2,345
|
|
2,345
|
|
2,345
|
|
355
|
|
|
Receivable on sales of property,
plant and equipment
|
9,170
|
|
2,180
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
1,382,645
|
|
1,565,369
|
|
1,247,389
|
|
188,999
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
(101,100)
|
|
(138,100)
|
|
(148,100)
|
|
(22,439)
|
|
|
Accounts
payable
|
(22,580)
|
|
(25,510)
|
|
(33,591)
|
|
(5,090)
|
|
|
Accrued expenses and
other
current liabilities
|
(208,223)
|
|
(160,836)
|
|
(117,322)
|
|
(17,776)
|
|
|
Income taxes
payable
|
(3,193)
|
|
(474)
|
|
(2,831)
|
|
(429)
|
|
|
Unrecognized tax
benefit
|
(937)
|
|
(989)
|
|
(3,407)
|
|
(516)
|
|
|
Amounts due to related
parties
|
(900)
|
|
(900)
|
|
(900)
|
|
(136)
|
|
|
Current liabilities held
for sale
|
(46,253)
|
|
(297,489)
|
|
-
|
|
-
|
|
|
Total current liabilities
|
(383,186)
|
|
(624,298)
|
|
(306,151)
|
|
(46,386)
|
|
|
Long-term bank loans
|
(50,000)
|
|
(15,000)
|
|
(5,000)
|
|
(758)
|
|
|
Deferred tax
liabilities
|
(11,868)
|
|
(13,761)
|
|
(14,142)
|
|
(2,143)
|
|
|
Total liabilities
|
(445,054)
|
|
(653,059)
|
|
(325,293)
|
|
(49,287)
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
attributable to the Company
|
(937,591)
|
|
(910,873)
|
|
(922,096)
|
|
(139,712)
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
-
|
|
(1,437)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
(937,591)
|
|
(912,310)
|
|
(922,096)
|
|
(139,712)
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
(1,382,645)
|
|
(1,565,369)
|
|
(1,247,389)
|
|
(188,999)
|
|
|
|
|
|
|
|
|
|
|
|
(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 period ended December 31, 2010 into United States
dollar ("US$”) is included solely for the convenience of readers
and has been made at the rate of RMB6.6 to US$1.00, which is based
on the noon buying rate in The City of New York for cable transfers
of Renminbi as certified for customs purposes by the Federal
Reserve Bank of New York at December 31, 2010. Such translations
should not be construed as representations that RMB amounts could
be converted into US$ at that rate or any other rate.
|
|
|
|
|
|
|
|
|
|
|
Tongjitang
Chinese Medicines Company
|
|
|
Reconciliation of GAAP to
Non-GAAP
|
|
|
(In
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter Ended December 31
|
|
Year Ended December 31
|
|
|
2009
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2010
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
(Note 1)
|
|
|
|
|
|
(Note 1)
|
|
|
GAAP net gain / (loss)
|
4,108
|
|
13,041
|
|
1,978
|
|
(3,791)
|
|
(11,277)
|
|
(1,710)
|
|
|
Share-based compensation expenses (Note 2)
|
1,599
|
|
(564)
|
|
(85)
|
|
5,799
|
|
(274)
|
|
(42)
|
|
|
Loss / (gain) from discontinued operations, net of tax
|
757
|
|
9,866
|
|
1,495
|
|
(3,122)
|
|
17,297
|
|
2,621
|
|
|
Gain on disposal of subsidiaries, net of tax
|
-
|
|
(11,548)
|
|
(1,750)
|
|
-
|
|
(11,548)
|
|
(1,750)
|
|
|
Depreciation and amortisation
|
7,617
|
|
6,481
|
|
982
|
|
22,970
|
|
21,086
|
|
3,195
|
|
|
Interest (income) expense, net
|
1,582
|
|
5,094
|
|
772
|
|
4,543
|
|
10,817
|
|
1,639
|
|
|
Income taxes (benefit) / expense
|
(858)
|
|
3,295
|
|
499
|
|
2,951
|
|
5,632
|
|
853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted EBITDA
|
14,805
|
|
25,665
|
|
3,891
|
|
29,350
|
|
31,733
|
|
4,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
0.04
|
|
0.13
|
|
0.02
|
|
-0.03
|
|
-0.11
|
|
-0.02
|
|
|
-Diluted
|
0.04
|
|
0.13
|
|
0.02
|
|
-0.03
|
|
-0.11
|
|
-0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted EBITDA per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
0.14
|
|
0.25
|
|
0.04
|
|
0.24
|
|
0.30
|
|
0.05
|
|
|
-Diluted
|
0.14
|
|
0.25
|
|
0.04
|
|
0.24
|
|
0.30
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computation of GAAP net loss per share / Non-GAAP adjusted EBITDA per share
|
|
|
Ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
106,153,483
|
|
104,066,526
|
|
104,066,526
|
|
122,940,745
|
|
104,066,526
|
|
104,066,526
|
|
|
-Diluted
|
106,153,483
|
|
104,068,383
|
|
104,068,383
|
|
122,940,745
|
|
104,066,526
|
|
104,066,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 period ended December 31, 2010
into United States dollar (“US$”) is included solely for the
convenience of readers and has been made at the rate of RMB6.6 to
US$1.00, which is based on the noon buying rate in The City of New
York for cable transfers of Renminbi as certified for customs
purposes by the Federal Reserve Bank of New York at December 31,
2010. Such translations should not be construed as representations
that RMB amounts could be converted into US$ 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter Ended December 31
|
|
Year Ended December 31
|
|
|
2009
|
|
2010
|
|
2010
|
|
2009
|
|
2010
|
|
2010
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
(Note 1)
|
|
|
|
|
|
(Note 1)
|
|
|
General and administrative expenses
|
1,599
|
|
(564)
|
|
(85)
|
|
5,799
|
|
(274)
|
|
(42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Tongjitang Chinese Medicines Company