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Notes to reconciliation of our GAAP statements of income to our adjusted non-GAAP statements of income:
(1) To exclude share-based compensation expense.
(2) To exclude one-time upfront payment for licenses fee of RMB 6,948,000
and share-based compensation expense of RMB 162,000 for R&D staff.
(3) To exclude investment losses on available-for-sale securities
(4) No income tax effect on adjustments is required as they are incurred
by overseas companies that are not subject to income tax.
Three Months Ended December 31, 2007
(unaudited) Actual Actual Adjustment Adjusted Adjusted
GAAP GAAP Non-GAAP Non-GAAP
RMB US$ RMB RMB US$
Net Revenues:
EPIAO 29,798 4,085 29,798 4,085
TPIAO 11,718 1,606 11,718 1,606
Intefen 1,128 155 1,128 155
Inleusin 251 34 251 34
Iron 970 133 970 133
Export 1,625 223 1,625 223
Others 193 26 193 26
Total revenues 45,683 6,262 45,683 6,262
Cost of revenues (5,737) (786) (5,737) (786)
Gross profit 39,946 5,476 39,946 5,476
Operating expenses
Research and
Development costs (3,715) (509) (3,715) (509)
Sales, marketing
and distribution
expenses (22,712) (3,114) (22,712) (3,114)
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