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 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.
- 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 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
- 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.