3SBio Inc. Announces Unaudited Fourth Quarter and Full Year 2012 Results

2012 Q4 net revenues grew 17.2% to RMB164.0 million (US$26.3 million))

2012 Q4 operating income decreased by 55.9% to RMB11.5 million (US$1.8 million)

2012 Q4 net income attributable to 3SBio decreased by 23.3% to RMB17.1 million (US$2.7 million)

18 Mar, 2013, 20:00 ET from 3SBio Inc.

SHENYANG, China, March 18, 2013 /PRNewswire/ -- 3SBio Inc. (NASDAQ: SSRX) ("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 fourth quarter and full year ended December 31, 2012.

Full Year 2012 Financial Highlights:

  • Total net revenues in 2012 increased by 23.7% to RMB669.9 million (US$107.5 million), compared to RMB541.6 million (US$86.1 million) in 2011.
  • Operating income in 2012 increased by 5.9% to RMB128.8 million (US$20.7 million), compared to RMB121.6 million (US$19.3 million) in 2011.
  • Net income attributable to 3SBio Inc. decreased by 5.7% to RMB102.4 million (US$16.4 million), compared to RMB108.6 million (US$17.3 million) in 2011.
  • Net income attributable to 3SBio Inc. per American Depositary Share ("ADS") on a fully-diluted basis was RMB4.51 (US$0.72) compared to RMB4.84 (US$0.77) in 2011. 

Fourth Quarter 2012 Financial Highlights:

  • Total net revenues in the fourth quarter of 2012 increased by 17.2% to RMB164.0 million (US$26.3 million), compared to RMB139.9 million (US$22.2 million) in the fourth quarter of 2011.
  • Operating income in the fourth quarter of 2012 decreased by 55.9% to RMB11.5 million (US$1.8 million), compared to operating income of RMB26.1 million (US$4.1 million) in the fourth quarter of 2011.
  • Net income attributable to 3SBio Inc. in the fourth quarter of 2012 decreased by 23.3% to RMB17.1 million (US$2.7 million), compared to net income attributable to 3SBio Inc. of RMB22.3 million (US$3.6 million) in the fourth quarter of 2011.
  • Net income attributable to 3SBio Inc. per ADS on a fully-diluted basis in the fourth quarter of 2012 was RMB0.75 (US$0.12) compared to a net income attributable to 3SBio Inc. per ADS on a fully-diluted basis of RMB0.99 (US$0.16) for the fourth quarter of 2011.

Full Year 2012 Business Highlights

Operations

  • EPIAO, the Company's flagship injectable recombinant human erythropoietin ("EPO") product, demonstrated strong growth with net revenues in 2012 rising by 17.3% to RMB372.9 million (US$59.9 million), compared to RMB317.9 million (US$50.5 million) in 2011. According to the latest data from IMS Health China, EPIAO's market share in terms of value reached 41.7% in the fourth quarter of 2012.
  • Net revenues for TPIAO, the Company's novel recombinant human thrombopoietin ("TPO") product, increased by 27.6% to RMB210.4 million (US$33.8 million) in 2012, compared to RMB164.8 million (US$26.2 million) in 2011.
  • Net revenues for Iron Sucrose Supplement increased by 37.8% to RMB34.3 million (US$5.5 million), 5.1% of net revenues in 2012, compared to RMB24.9 million (US$4.0 million), or 4.6% of net revenues in 2011.
  • Net export revenues increased by 67.6% to RMB40.0 million (US$6.4 million), accounting for 6.0% of total net revenue in 2012, compared to RMB23.9 million (US$3.8 million), or 4.4% of net revenues in 2011.  The increase was partly attributable to increased sales to Brazil.

Full Year Ended December 31, 2012 Unaudited Financial Results

Net revenuesNet revenues for 2012 increased by 23.7% to RMB669.9 million (US$107.5 million), from RMB541.6 million (US$86.1 million) in 2011. The increase was largely due to continued strong sales of EPIAO and TPIAO, underpinned by continued strong demand in the oncology and nephrology markets.

Net revenues from EPIAO in 2012 increased by 17.3% to RMB372.9 million (US$59.9 million) from RMB317.9 million (US$50.5 million) in 2011.  Net revenues from TPIAO in 2012 increased by 27.6% to RMB210.4 million (US$33.8 million) from RMB164.8 million (US$26.2 million) in 2011. In addition, net revenues from our export business increased to RMB40.0 million (US$6.4 million), compared to RMB23.9 million (US$3.8 million) in 2011, while net revenues from Iron Sucrose Supplement were RMB34.3 million (US$5.5 million), representing an increase of 37.8% from RMB24.9 million (US$4.0 million) in 2011.

Gross profitGross profit for 2012 increased by 24.0% to RMB599.4 million (US$96.2 million) compared to RMB483.5 million (US$76.8 million) in 2011. Gross margin remained relatively stable for 2012, increasing 0.2% point to 89.5%, compared to 89.3% in 2011.

Operating expenses. Operating expenses were RMB470.6 million (US$75.5 million) for 2012, an increase of 30.0% from RMB361.9 million (US$57.5 million) in 2011.

  • Research and development ("R&D") costs. R&D costs for 2012 were RMB71.2 million (US$11.4 million), or 10.6% of net revenues, compared to RMB41.8 million (US$6.6 million), or 7.7% of net revenues in 2011. The increase in R&D costs as a percentage of net revenues was mainly attributable to NuPIAO, a second generation version of EPIAO and an anti-TNF compound that targets rheumatoid arthritis, psoriasis and other inflammatory disorders.
  • Sales, marketing and distribution expenses. Sales, marketing and distribution expenses for 2012 were relatively stable at RMB318.2 million (US$51.1 million), or 47.5% of net revenues, compared to RMB254.8 million (US$40.5 million), or 47.0% of net revenues in 2011.
  • General and administrative expenses. General and administrative expenses for 2012 were RMB82.1 million (US$13.2 million), or 12.3% of net revenues, compared to RMB66.9 million (US$10.6 million), or 12.4% of net revenues in 2011.

Operating income. Operating income for 2012 increased by 5.9% to RMB128.8 million (US$20.7 million), compared to RMB121.6 million (US$19.3 million) in 2011. Operating margin for 2012 was 19.2%, compared to 22.5% in 2011. The decreased operating margin is primarily due to higher R&D expenses. 

Interest income.  The Company recorded interest income of RMB25.7 million (US$4.1 million) in 2012, compared to RMB18.5 million (US$2.9 million) in 2011.  The increase is primarily due to the combined effect of increased time deposits and higher interest rates on time deposits.

Net income. Net income attributable to 3SBio Inc. for 2012 decreased by 5.7% to RMB102.4 million (US$16.4 million) compared to RMB108.6 million (US$17.3 million) in 2011. Net margin attributable to 3SBio Inc. for 2012 was 15.3% as compared to 20.1% in 2011.  Net income attributable to 3SBio Inc. per ADS on a fully-diluted basis for 2012 decreased to RMB4.51 (US$0.72) from RMB4.84 (US$0.77) in 2011.

Cash and cash equivalents, restricted cash and time deposits. 3SBio had positive operating cash flow of RMB185.7 million (US$29.8 million) for the year ended December 31, 2012 and as of December 31, 2012, cash and cash equivalents, restricted cash and time deposits of RMB892.5 million (US$143.3 million).

Three Months Ended December 31, 2012 Unaudited Financial Results

Net revenues. Net revenues increased by 17.2% to RMB164.0 million (US$26.3 million) for the fourth quarter of 2012 from RMB139.9 million (US$22.2 million) for the same period in 2011. This increase was largely due to continued strong sales of EPIAO and TPIAO which grew by 6.9% and 30.8%, respectively, over the same period in 2011. TPIAO remained 3SBio's second largest revenue contributor in the quarter, accounting for 31.0% of total net revenues. Export sales increased by 40.6% to RMB13.8 million (US$2.2 million), compared to RMB9.8 million (US$1.6 million) in the fourth quarter of 2011, largely due to increased sales to Brazil. Revenues from Iron Sucrose Supplement rose by 26.3% to RMB8.5 million (US$1.4 million), compared to RMB6.7 million (US$1.1 million) in the fourth quarter of 2011.

Gross profitAs a result of continued sales growth from key products, gross profit for the fourth quarter of 2012 increased by 16.9% to RMB146.1 million (US$23.5 million) from RMB125.0 million (US$19.9 million) for the same period in 2011. Gross margins decreased 0.3% point to 89.1% for the fourth quarter of 2012 from 89.4% for the same period in 2011.

Operating expenses. Operating expenses were RMB134.6 million (US$21.6 million) for the fourth quarter of 2012, an increase of 36.1% from RMB98.9 million (US$15.7 million) for the same period in 2011

  • Research and development ("R&D") costs. R&D costs for the fourth quarter of 2012 were RMB16.8 million (US$2.7 million), or 10.2% of net revenues, compared to RMB12.7 million (US$2.0 million), or 9.1% of net revenues, for the same period in 2011. The increase in R&D expenses is primarily attributable to NuPIAO, a second generation version of EPIAO.
  • Sales, marketing and distribution expenses. Sales, marketing and distribution expenses for the fourth quarter of 2012 were RMB91.0 million (US$14.6 million), or 55.5% of net revenues, compared to RMB65.9 million (US$10.5 million), or 47.1% of net revenues, for the same period in 2011.
  • General and administrative expenses. General and administrative expenses for the fourth quarter of 2012 were RMB27.1 million (US$4.3 million), or 16.5% of net revenues, compared to RMB20.4 million (US$3.2 million), or 14.6% of net revenues for the same period in 2011.

Operating income. Operating income for the fourth quarter of 2012 decreased by 55.9% to RMB11.5 million (US$1.8 million), compared to operating income of RMB26.1 million (US$4.1 million) for the same period in 2011. Operating margin for the fourth quarter of 2012 was 7.0% as compared to 18.7% for the same period in 2011. The decrease in operating margin was primarily due to increased sales and marketing expenses and higher general and administrative expenses.

Interest income. The Company recorded interest income of RMB7.3 million (US$1.2 million) for the fourth quarter of 2012, compared to RMB4.7 million (US$0.8 million) for the same period in 2011. The increase is primarily due to the combined effect of increased time deposits and higher interest rates on time deposits.

Net income. Net income attributable to 3SBio Inc. for the fourth quarter of 2012 decreased by 23.3% to RMB17.1 million (US$2.7 million) compared to net income attributable to 3SBio Inc. of RMB22.3 million (US$3.6 million) for the same period in 2011. Net income attributable to 3SBio Inc. per ADS on a fully-diluted basis for the fourth quarter of 2012 decreased by 24.2% to RMB0.75 (US$0.12), compared to RMB0.99 (US$0.16) for the same period in 2011. Net margin attributable to 3SBio Inc. for the fourth quarter of 2012 was 10.4% as compared to 15.9% for the same period in 2011. 

Non-GAAP net income attributable to 3SBio Inc. for 2012 was RMB122.8 million (US$19.7 million), a 13.1% increase over non-GAAP net income for 2011 of RMB108.6 million (US$17.3 million). Non-GAAP net income attributable to 3SBio Inc. per ADS on a fully-diluted basis for 2012 increased to RMB5.41 (US$0.87) compared to non-GAAP net income attributable to 3SBio Inc. for 2011 of RMB4.84 (US$0.77). Non-GAAP net margin for 2012 was 17.8%, a 2.3% point decrease over 2011 net margin of 20.1%.   

The difference between GAAP and non-GAAP net income is due to writedowns of RMB 11.3 million (US$1.8 million) in the second quarter and RMB 9.1 million (US$1.48 million) in the third quarter in available-for-sale securities, following declines deemed to be other than temporary in the market value of 3SBio's US$4.5 million investment in the common shares of Isotechnika (TSX:ISA). The carrying value of the investment in Isotechnika as of December 31, 2012 was RMB10.6 million (US$1.7 million).    

Conference Call

3SBio's senior management will host a conference call on Tuesday, March 19, 2013 8:00pm China Standard Time (8:00am US Eastern or 5:00am US Pacific) to discuss its unaudited fourth quarter and full year 2012 results and recent business activity. The conference call may be accessed using the dial-in numbers below:

Conference ID: 15890708

Local dial-in: China landline: 800-819-0121 China mobile: 400-620-8038 Hong Kong : 852-2475-0994 United States: 718-354-1231

International toll-free dial-in: Hong Kong:  800930346 United States:  1-866-519-4004 United Kingdom:  080-8234-6646 International toll dial-in: 65 6723 9381

Replay- Conference ID: 15890708 A telephone replay will be available two hours after the call until March 27, 2013 at: International:  61-2-8235-5000 United States: 1-866-214-5335

Webcast A live webcast of the conference will be available on the investor relations section of 3SBio's website at www.3sbio.com and at http://www.media-server.com/m/p/bcshv7v5.

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 generally 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, representing net income excluding impairment loss on available-for-sale securities. These non-GAAP measurements may not otherwise be apparent on a GAAP basis and 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.

The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain expenses, particularly impairment losses on available-for-sale securities that may not be indicative of its operating performance and financial condition from a cash perspective. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance and liquidity. The management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's net income 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 December 31, 2011 and December 31, 2012 and for the year ended December 31, 2011 and December 31, 2012.

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 the Company's annual report on Form 20-F for the year ending December 31, 2012. 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 RMB6.2301 to US$1.00, the noon buying rate for US dollars in effect on December 31, 2012 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.  A rate of 6.2939 was used for comparative purposes as of December 31, 2011, which was the noon buying rate for US dollars on that date for cable transfers of RMB per US dollar as certified for customs purposes by the Federal Reserve Bank of New York.

About 3SBio Inc.

3SBio is a leading, fully integrated, profitable biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products primarily in China.  Its focus is on addressing large markets with significant unmet medical needs in nephrology, oncology, supportive cancer care, inflammation and infectious diseases.  With headquarters and GMP-certified manufacturing facilities in Shenyang, PRC, 3SBio employs over 800 people. Shares trade in the form of American Depositary Shares (ADSs) on the NASDAQ stock market under the ticker symbol "SSRX". Please see www.3SBio.com for more information.

Cautionary Statement concerning Forward Looking Statements

Certain statements in the disclosures of 3SBio, Inc. (the "Company" or "3SBio") for the fourth quarter and fiscal year 2012 ("Disclosures") that are not purely historical in nature may 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 fourth quarter and fiscal year 2012.

These forward-looking statements address activities, events, conditions, or developments that we currently expect or anticipate may occur in the future, and include, but may not be limited to, discussions and statements regarding business growth and prospects, product pricing trends, operation objectives, market size or patient number or illness prevalence estimates, product development, pipeline progress, regulatory approval, certification and review progress, impact of the government policies and regulations, partnerships or collaborations and the progress thereof, capital expense estimate, future operations and strategies. Forward-looking statements can be identified by such terminology as "believe," "expect," "plans," "strategy," "potential", "prospects," "forecast," "estimate," "project," "anticipate," "aim," "will" or "would", "may" or "might", and words, phrases, expressions, and usages of similar meaning or substance or the negative of such words, phrases, expressions and usages.

Forward-looking statements are based on management's current assumptions, beliefs, expectations, and projections, in light of the information currently available, and actual results, performances, or achievements could differ materially from those implied or expressed by the forward-looking statements.  Among the factors that could cause actual results to differ from what the Company currently anticipates may include: regulatory actions such as adverse drug pricing adjustments, competition from other domestic and foreign pharmaceutical companies; risks and uncertainties related to cooperation, joint venture, and partnerships; changes in China's healthcare insurance system; Chinese government policies and regulations; the segment market growth for our products; market acceptance of our products; hospital or patient demand for our products; progress of our clinical trials; receipt and timing of regulatory approvals for new products and indications; our ability to enhance production, sales and distribution network and other aspects of operation; our ability to effectively protect intellectual property; changes in the healthcare industry in China; and fluctuations in general economic and business conditions in China.

For additional information on factors identified above and other risk factors, uncertainties and assumptions, please refer to the Company's filings with the Securities and Exchange Commission at 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, 2011.

All the statements in the Disclosures speak as of the date of the initial release, even if subsequently made available on the 3SBio website or otherwise.  3SBio undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, subsequent events or otherwise, after the date of this press release.

Investor Contacts Bo Tan Chief Financial Officer 3SBio Inc. Tel: + 86 24 2581-1820 ir@3SBio.com

Tom Folinsbee Director of Investor Relations 3SBio Inc. Tel: + 852 8191-6991 ir@3SBio.com

 

3SBIO Inc. Consolidated balance sheets (expressed in thousands)

December 31, 2011

December 31, 2012

December 31, 2012

RMB

RMB

US$

Assets

(audited)

(unaudited)

(unaudited)

Current assets

Cash and cash equivalents

245,813

450,557

72,319

Restricted cash

665

668

107

Time deposits with financial institutions

499,201

411,294

66,017

Accounts receivable, less allowance for doubtful accounts:

December 31, 2011 - RMB2,542; December 31, 2012 - RMB2,208(US$354)

113,949

115,563

18,549

Notes receivable

47,243

59,017

9,473

Inventories

27,604

35,430

5,687

Prepaid expenses and other receivables

26,672

35,643

5,721

Available-for-sale securities

22,830

10,576

1,698

Amounts due from related parties

6,000

1,263

203

Deferred tax assets

2,750

3,276

526

Total current assets

992,727

1,123,287

180,300

Time deposits with financial institutions

20,000

30,000

4,815

Available-for-sale securities

10,848

11,232

1,803

Investment in non-consolidated affiliates

2,245

8,294

1,331

Property, plant and equipment, net

198,053

224,245

35,994

Prepaid land use rights

17,448

16,898

2,712

Prepayment and noncurrent deposits

16,801

7,469

1,199

Intangible assets, net

49,615

45,914

7,370

Long term receivables, less allowance for doubtful accounts:

December 31, 2011 - RMB 818; December 31, 2012 - RMB818 (US$131)

3,111

2,355

378

Deferred tax assets

262

335

54

Total assets

1,311,110

1,470,029

235,956

Liabilities and shareholders' equity

Current liabilities

Accounts payable

6,218

3,765

604

Deferred income

374

1,981

318

Accrued expenses and other payables

48,389

69,331

11,128

Income tax payable

8,894

3,725

598

Total current liabilities

63,875

78,802

12,648

Deferred income

2,029

12,604

2,023

Total liabilities

65,904

91,406

14,671

Shareholders' equity

Share capital - ordinary shares US$0.0001 par value, 500,000,000 shares

authorized, 154,473,159 and 155,635,016 issued and outstanding as of

December 31, 2011 and December 31, 2012, respectively

124

125

20

Additional paid-in capital

973,218

997,088

160,044

Accumulated other comprehensive loss

(126,290)

(119,319)

(19,152)

Retained earnings

387,317

489,671

78,598

Total shareholders' equity attributable to 3SBio Inc.

1,234,369

1,367,565

219,510

Non-controlling interest

10,837

11,058

1,775

Total shareholders' equity

1,245,206

1,378,623

221,285

Total liabilities and shareholders' equity

1,311,110

1,470,029

235,956

 

 

3SBio Inc.

Consolidated statements of income

(expressed in thousands, except per share, per ADS and other share and ADS data)

 

For the Three Months Ended

For the Three Months Ended

December 31, 2011

December 31, 2012

RMB

US$

RMB

US$

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Net Revenues:

EPIAO

82,347

13,084

88,065

14,135

TPIAO

38,806

6,166

50,772

8,149

Intefen

1,354

215

1,095

176

Inleusin

855

136

1,101

177

Iron sucrose

6,691

1,063

8,454

1,357

Export

9,805

1,558

13,784

2,212

Others

24

4

679

109

Total net revenues

139,882

22,226

163,950

26,315

Cost of revenues

(14,885)

(2,365)

(17,836)

(2,863)

Gross profit

124,997

19,861

146,114

23,452

Operating expenses

Research and development costs

( 12,741)

(2,024)

( 16,787)

(2,694)

Sales, marketing and distribution expenses

(65,876)

(10,467)

(90,969)

(14,602)

General and administrative expenses

(20,389)

(3,239)

(27,059)

(4,343)

Grant income

94

15

199

32

Operating income

26,085

4,146

11,498

1,845

Interest income

4,748

754

7,276

1,168

Share of loss in non-consolidated affiliates

(809)

(129)

(45)

(7)

Other (loss)/income, net

(1,628)

(259)

3,508

563

Total other income, net

2,311

366

10,739

1,724

Income before income tax expense

28,396

4,512

22,237

3,569

Income tax expense

(6,517)

(1,035)

(5,177)

(831)

Net income

21,879

3,477

17,060

2,738

Less: net income attributable to non-controlling interest

463

74

47

8

Net income attributable to 3SBio Inc.

22,342

3,551

17,107

2,746

Net income attributable to 3SBio Inc. per share:

Basic

0.15

0.02

0.11

0.02

Diluted

0.14

0.02

0.11

0.02

Basic weighted average number of shares outstanding

154,070,555

154,070,555

155,194,488

155,194,488

Diluted weighted average number of shares outstanding

157,321,335

157,321,335

160,614,812

160,614,812

Net income attributable to 3SBio Inc. per ADS:

Basic

1.02

0.16

0.77

0.12

Diluted

0.99

0.16

0.75

0.12

Basic weighted average number of ADSs outstanding

22,010,079

22,010,079

22,170,641

22,170,641

Diluted weighted average number of ADSs outstanding

22,474,476

22,474,476

22,944,973

22,944,973

 

 

 

3SBio Inc.

Consolidated statements of income

(expressed in thousands, except per share, per ADS and other share and ADS data)

 

For the Year Ended

For the Year Ended

December 31, 2011

December 31, 2012

RMB

US$

RMB

US$

(audited)

(audited)

(unaudited)

(unaudited)

Net Revenues:

EPIAO

317,889

50,507

372,912

59,857

TPIAO

164,839

26,190

210,391

33,770

Intefen

5,229

831

4,649

746

Inleusin

2,788

443

2,963

476

Iron sucrose

24,859

3,950

34,268

5,500

Export

23,890

3,796

40,040

6,427

Others

2,120

337

4,725

758

Total net revenues

541,614

86,054

669,948

107,534

Cost of revenues

(58,073)

(9,227)

(70,504)

(11,317)

Gross profit

483,541

76,827

599,444

96,217

Operating expenses

Research and development costs

( 41,805)

(6,642)

( 71,228)

(11,433)

Sales, marketing and distribution expenses

(254,767)

(40,478)

(318,223)

(51,078)

General and administrative expenses

(66,908)

(10,631)

(82,070)

(13,173)

Grant income

1,585

252

898

144

Operating income

121,646

19,328

128,821

20,677

Interest income

18,499

2,939

25,708

4,126

Impairment loss on available-for-sale securities

-

-

(20,427)

(3,279)

Share of loss in non-consolidated affiliates

(1,590)

(253)

(655)

(105)

Other loss, net

(2,185)

(347)

(994)

(160)

Total other income, net

14,724

2,339

3,632

582

Income before income tax expense

136,370

21,667

132,453

21,259

Income tax expense

(28,210)

(4,482)

(29,878)

(4,796)

Net income

108,160

17,185

102,575

16,463

Less: net income attributable to non-controlling interest

413

66

(221)

(35)

Net income attributable to 3SBio Inc.

108,573

17,251

102,354

16,428

Net income attributable to 3SBio Inc. per share:

Basic

0.71

0.11

0.66

0.11

Diluted

0.69

0.11

0.64

0.10

Basic weighted average number of shares outstanding

153,310,128

153,310,128

154,726,537

154,726,537

Diluted weighted average number of shares outstanding

157,148,685

157,148,685

158,971,682

158,971,682

Net income attributable to 3SBio Inc. per ADS:

Basic

4.96

0.79

4.63

0.74

Diluted

4.84

0.77

4.51

0.72

Basic weighted average number of ADSs outstanding

21,901,447

21,901,447

22,103,791

22,103,791

Diluted weighted average number of ADSs outstanding

22,449,812

22,449,812

22,710,240

22,710,240

 

 

Reconciliations of GAAP net income attributable to 3SBio Inc. to non-GAAP net income attributable to 3SBio Inc. for the three months ended December 31, 2011 and 2012

(in RMB thousands, unaudited)

 

Three months ended

December 31, 2011

Three months ended

December 31, 2012

GAAP

Adjustment

Non-GAAP

GAAP

Adjustment

Non-GAAP

RMB

US$

RMB

RMB

US$

RMB

US$

RMB

RMB

US$

Net income attributable  to 3SBio Inc.

22,342

3,551

-

22,342

3,551

17,107

2,746

-

17,107

2,746

 

 

Reconciliations of GAAP net income attributable to 3SBio Inc. to non-GAAP net income attributable to 3SBio Inc. for the years ended of 2011 and 2012

(in RMB thousands, unaudited)

For the year ended

December 31, 2011

For the year ended

December 31, 2012

GAAP

Adjustment

Non-GAAP

GAAP

Adjustment

Non-GAAP

RMB

US$

RMB

RMB

US$

RMB

US$

RMB

RMB

US$

Net income attributable

to 3SBio Inc.

108,573

17,251

-

108,573

17,251

102,354

16,428

20,427

122,781

19,707

 

The adjustment for the year ended December 31, 2012 is for the exclusion of the impairment loss of RMB20,427,000 (US$3,279,000) on available-for-sale securities.

 

SOURCE 3SBio Inc.



RELATED LINKS

http://www.3sbio.com