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Simcere Pharmaceutical Group Reports Preliminary Unaudited Second Quarter 2012 Results
Date:8/10/2012

nt projects, as well as a reduction of RMB5.5 million in government research and development grants recognized compared with the same period in 2011. As a percentage of total revenue, research and development expenses increased to 10.4% for the second quarter of 2012 from 7.3% for the same period in 2011. For the first six months of 2012, research and development expenses totaled RMB103.2 million (US$16.3 million), compared to RMB82.7 million for the same period in 2011.

Sales, marketing and distribution expenses for the second quarter of 2012 were RMB291.4 million (US$45.9 million), which represented an increase of 0.9% from RMB288.9 million for the same period in 2011. As a percentage of total revenue, sales, marketing and distribution expenses increased to 55.1% for the second quarter of 2012 from 52.9% for the same period in 2011. This increase was due primarily to increased spending on promotional activities for branded generic pharmaceutical products, such as Zailin, Yingtaiqing and Biqi. For the first six months of 2012, sales, marketing and distribution expenses were RMB550.2 million (US$86.6 million), which represented a decrease of 0.6% from RMB553.3 million for the same period in 2011.General and administrative expenses were RMB55.7 million (US$8.8 million) for the second quarter of 2012, which represented a decrease of 25.3% from RMB74.7 million for the same period in 2011. As a percentage of total revenue, general and administrative expenses decreased to 10.5% for the second quarter of 2012 from 13.7% for the same period in 2011. For the first six months of 2012, general and administrative expenses were RMB120.8 million (US$19.0 million), which represented a decrease of 15.4% from RMB142.8 million for the same period in 2011.

Share-based compensation expenses, which were allocated to research and development expenses, sales, marketing and distribution expenses, and general and adm
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