3SBio Inc. Announces Unaudited Second Quarter 20...(/a and at http://ti Non-GAAP Fina...),Health

Non-GAAP Financial Measures: Reconciliation of GAAP to Non-GAAP

To supplement the Company's financial information presented in accordance with general 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, and that may not otherwise be apparent on a GAAP basis. These non-GAAP financial measures include non- GAAP net income, non-GAAP net income per share, non-GAAP net income per ADS, non-GAAP operating income, non-GAAP operating expenses, non-GAAP gross profit etc. These measures 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. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations 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 June 30, 2008 and June 30, 2009 and for the six month periods ended June 30, 2009 and June 30, 2008.

Statement Regarding Unaudited Financial Information

The unaudited financial information set for
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