Income from Operations. As a result of the foregoing, operating income for the second quarter 2008 was RMB15.2 million (US$2.2 million), representing a 10.5% increase, compared with RMB13.8 million in the second quarter 2007. Operating margin for the second quarter 2008 was 25.5%, down from the 31.9% in the second quarter 2007.
Other Income net. Net other income decreased by 30.9% to RMB7.7 million in the second quarter of 2008, as compared with net other expense of RMB11.2 million in the second quarter of 2007, primarily as a result of decreased cash deposits, lower interest rates relating to our deposits and depreciation of the exchange rate of the U.S. dollar against the Renmimbi. In May 2008, the company also made a one-time donation to the Sichuan earthquake relief fund of RMB0.7 million.
Income before Income Tax Expense and Minority Interests. As a result of the foregoing, our income before income tax expense and minority interests decreased by 8.1% from RMB25.0 million in the second quarter 2007 to RMB22.9 million (US$3.3 million) for the second quarter 2008.
Income Tax Expense. Our income tax expense increased by 124.8% to RMB3.6 million (US$0.5 million) for the second quarter 2008 from RMB1.6 million for the second quarter 2007. The effective tax rate was 15.6% for the second quarter 2008, as compared with 6.4% for the prior year period. The increase in tax expense and effective tax rate were attributable to the increase in the enterprise income tax rate for a major operating subsidiary in China from 15% to 18% effective from January 1, 2008, and a decrease in interest income from 3SBio Inc., incorporated in Cayman Islands, that is not subject to tax.
Net Income. As a result of the foregoing, our net income decreased by
16.9% to RMB19.4 million (US$2.8 million) for the second quarter 2008 from
|SOURCE 3SBio Inc.|
Copyright©2008 PR Newswire.
All rights reserved