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



   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)

PR Newswire

SHENYANG, China, March 18, 2013

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:

  o 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.
  o 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.
  o 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.
  o 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:

  o 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.
  o 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.
  o 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.
  o 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

  o 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.
  o 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.
  o 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.
  o 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 revenues.  Net 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 profit.  Gross 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.

  o 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.
  o 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.
  o 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 profit.  As 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

  o 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.
  o 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.
  o 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,  December 31,  December 31,
                                      2011          2012          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          499,201       411,294       66,017
institutions
Accounts receivable, less allowance
for doubtful accounts:
December 31, 2011 - RMB2,542;         113,949       115,563       18,549
December 31, 2012 - RMB2,208(US$354)
Notes receivable                      47,243        59,017        9,473
Inventories                           27,604        35,430        5,687
Prepaid expenses and other            26,672        35,643        5,721
receivables
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          20,000        30,000        4,815
institutions
Available-for-sale securities         10,848        11,232        1,803
Investment in non-consolidated        2,245         8,294         1,331
affiliates
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 3,111         2,355         378
31, 2012 - RMB818 (US$131)
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           124           125           20
155,635,016 issued and outstanding as
of

December 31, 2011 and December 31,
2012, respectively
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            1,234,369     1,367,565     219,510
attributable to 3SBio Inc.
Non-controlling interest              10,837        11,058        1,775
Total shareholders' equity            1,245,206     1,378,623     221,285
Total liabilities and shareholders'   1,311,110     1,470,029     235,956
equity

 

 

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            ( 12,741)      (2,024)      ( 16,787)      (2,694)
development costs
Sales, marketing and    (65,876)       (10,467)     (90,969)       (14,602)
distribution expenses
General and             (20,389)       (3,239)      (27,059)       (4,343)
administrative expenses
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        (809)          (129)        (45)           (7)
affiliates
Other (loss)/income,    (1,628)        (259)        3,508          563
net
Total other income, net 2,311          366          10,739         1,724
Income before income    28,396         4,512        22,237         3,569
tax expense
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         463            74           47             8
non-controlling
interest
Net income attributable 22,342         3,551        17,107         2,746
to 3SBio Inc.
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        154,070,555    154,070,555  155,194,488    155,194,488
outstanding
Diluted weighted
average number of       157,321,335    157,321,335  160,614,812    160,614,812
shares outstanding
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          22,010,079     22,010,079   22,170,641     22,170,641
outstanding
Diluted weighted
average number of ADSs  22,474,476     22,474,476   22,944,973     22,944,973
outstanding

 

 

 

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    ( 41,805)    (6,642)      ( 71,228)    (11,433)
costs
Sales, marketing and        (254,767)    (40,478)     (318,223)    (51,078)
distribution expenses
General and administrative  (66,908)     (10,631)     (82,070)     (13,173)
expenses
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          -            -            (20,427)     (3,279)
securities
Share of loss in            (1,590)      (253)        (655)        (105)
non-consolidated affiliates
Other loss, net             (2,185)      (347)        (994)        (160)
Total other income, net     14,724       2,339        3,632        582
Income before income tax    136,370      21,667       132,453      21,259
expense
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             413          66           (221)        (35)
non-controlling interest
Net income attributable to  108,573      17,251       102,354      16,428
3SBio Inc.
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            153,310,128  153,310,128  154,726,537  154,726,537
outstanding
Diluted weighted average
number of shares            157,148,685  157,148,685  158,971,682  158,971,682
outstanding
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      21,901,447   21,901,447   22,103,791   22,103,791
number of ADSs outstanding
Diluted weighted average    22,449,812   22,449,812   22,710,240   22,710,240
number of ADSs outstanding

 

 

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
                         Three months ended
                                                               December 31, 2012
                         December 31, 2011
                         GAAP         Adjustment Non-GAAP      GAAP         Adjustment Non-GAAP
                         RMB    US$   RMB        RMB    US$    RMB    US$   RMB        RMB    US$
Net income attributable  22,342 3,551 -          22,342 3,551  17,107 2,746 -          17,107 2,746
to 3SBio Inc.

 

 

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                        For the year ended

                        December 31, 2011                         December 31, 2012
                        GAAP           Adjustment Non-GAAP        GAAP           Adjustment Non-GAAP
                        RMB     US$    RMB        RMB     US$     RMB     US$    RMB        RMB     US$
Net income attributable
                        108,573 17,251 -          108,573 17,251  102,354 16,428 20,427     122,781 19,707
to 3SBio Inc.
 

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.

Website: http://www.3sbio.com
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