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Operating Expenses
Non-GAAP selling expenses for the first quarter 2008 were RMB69.3 million (US$9.9 million), or 11.1% of total net revenues, compared to 10.2% in the first quarter 2007 and 13.8% in the fourth quarter 2007. GAAP selling expenses for the first quarter 2008 were RMB75.1 million (US$10.7 million).
Non-GAAP general and administrative expenses for the first quarter 2008 were RMB14.6 million (US$2.1 million), or 2.3% of total net revenues, compared to 4.5% in the first quarter 2007 and 3.2% in the fourth quarter 2007. GAAP general and administrative expenses for the first quarter 2008 were RMB18.7 million (US$2.7 million).
Non-GAAP research and development expenses for the first quarter 2008 were RMB54.9 million (US$7.8 million), or 8.8% of total net revenues, compared to 8.8% of total net revenues in the first quarter 2007 and 9.1% in the fourth quarter 2007. GAAP research and development expenses for the first quarter 2008 were RMB60.3 million (US$8.6 million).
Total share-based compensation expenses, which were allocated to cost of goods sold and related operating expenses, were RMB16.0 million (US$2.3 million) in the first quarter 2008, compared to RMB13.3 million (US$1.7 million) in the first quarter 2007 and RMB17.5 million (US$2.4 million) in the fourth quarter 2007.
Non-GAAP operating profit, as defined below, in the first quarter 2008
was RMB220.5 million (US$31.4 million), a 54.6% increase from RMB142.6
million (US$18.5 million) in the first quarter 2007. Non-GAAP operating
margins were 35.2% in the first quarter 2008, compared to 33.8% in the
first quarter 2007
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