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Simcere Pharmaceutical Group Reports Unaudited Second Quarter 2008 Results
Date:8/5/2008

nt expenses were 3.0% compared to 5.8% for the same period in 2007. This change was primarily due to recognition in this quarter of government grants which offset certain research and development expenses by RMB2.7 million (US$0.4 million), and the completion of some research and development projects related to Endu. For the first six months of 2008, research and development expenses totaled RMB31.0 million (US$4.5 million), compared to RMB33.1 million for the same period in 2007.

Sales, marketing and distribution expenses for the second quarter of 2008 were RMB197.9 million (US$28.9 million), an increase of 24.6% from RMB158.8 million for the corresponding period a year ago. As a percentage of total revenue, sales, marketing and distribution expenses were 45.4% compared to 47.5% for the same period in 2007. The decrease in sales, marketing and distribution expenses as a percentage of total revenue was primarily due to fewer marketing conferences held during the quarter. For the first six months of 2008, sales and marketing expenses were RMB362.5 million (US$52.8 million), an increase of 22.8% from RMB295.1 million in the first six months of 2007.

General and administrative expenses were RMB47.0 million (US$6.8 million) for the second quarter of 2008, representing an increase of 1.8% from RMB46.1 million for the second quarter of 2007. As a percentage of total revenue, general and administrative expenses were 10.8% compared to 13.8% for the same period in 2007. The decrease in general and administrative expenses as a percentage of total revenue was mainly attributable to the one-off expenses related to the Company's initial public offering incurred in the second quarter of 2007. For the first six months of 2008, general and administrative expenses were RMB94.0 million (US$13.7 million), an increase of 22.0% from RMB77.1 million in the corresponding period in 2007.

Share-based compensation expenses, which were allocated to research and developmen
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SOURCE Simcere Pharmaceutical Group
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