Navigation Links
Simcere Pharmaceutical Group Reports Preliminary Unaudited Third Quarter 2012 Results
Date:11/15/2012

NANJING, China, Nov. 15, 2012 /PRNewswire/ -- Simcere Pharmaceutical Group ("Simcere" or the "Company") (NYSE: SCR), a leading pharmaceutical company specializing in the development, manufacturing, and marketing of branded generic and proprietary pharmaceuticals in China, today reported preliminary unaudited financial results for the quarter ended September 30, 2012.

Highlights

  • Total revenue was RMB526.5 million (US$83.8 million) for the third quarter of 2012, compared to RMB501.0 million for the same period in 2011, representing an increase of 5.1%. For the first nine months of 2012, total revenue was RMB1,542.8 million (US$245.5 million), representing an increase of 0.9% from RMB1,529.5 million for the same period in 2011.
  • Gross margin for the third quarter of 2012 was 83.6%, compared to 84.6% for the same period in 2011. For the first nine months of 2012, gross margin was 83.2%, compared to 84.5% for the first nine months of 2011.
  • Income from operations was RMB32.9 million (US$5.2 million) for the third quarter of 2012, compared to RMB32.4 million for the same period in 2011, representing an increase of 1.6%. For the first nine months of 2012, income from operations was RMB117.7 million (US$18.7 million), which represented a decrease of 17.1% from RMB141.9 million for the same period in 2011.
  • Net income attributable to Simcere was RMB22.2 million (US$3.5 million) for the third quarter of 2012, a decrease of 34.8% from RMB34.0 million for the same period in 2011. For the first nine months of 2012, net income attributable to Simcere was RMB77.8 million (US$12.4 million), which represented a decrease of 42.7% from RMB135.6 million for the same period in 2011.
  • "In the third quarter of 2012, Simcere's revenue and gross margin fundamentally remained stable," commented Mr. Jinsheng Ren, Chairman of Simcere Pharmaceutical Group. "While sales of edaravone continued to face challenges, we were encouraged to see growth from our generic drugs such as Zailin. I am also pleased that Hongquan Liu, our new Chief Executive Officer, is leading Simcere's management team to improve Simcere's overall operations. I am confident that Simcere will benefit from Hongquan's experience and leadership."

    Mr. Hongquan Liu, Executive Director and Chief Executive Officer of Simcere Pharmaceutical Group, commented, "With Simcere's robust product portfolio and leading R&D capabilities, I am confident that Simcere has significant potential for future growth. Moving forward, in order to improve profitability, Simcere's strategic priorities will include focusing on key products, optimizing our sales and marketing organization, strengthening cost control, and in particular reducing sales and marketing expense as a percentage of revenue."

    2012 Third Quarter Financial Results Total revenue for the third quarter of 2012 was RMB526.5 million (US$83.8 million), compared to RMB501.0 million for the same period in 2011, representing an increase of 5.1%. For the first nine months of 2012, total revenue was RMB1,542.8 million (US$245.5 million), representing an increase of 0.9% from RMB1,529.5 million for the same period in 2011.

    The tables below set forth the Company's top 10 products by revenue for the three months ended September 30, 2012 and nine months ended September 30, 2012:In ThousandsThree months ended
    September 30, 2012Three months ended
    September 30, 2011RMBUSD% of totalRMB% of total  ChangeProductsTherapeutic Arearevenuerevenue Edaravone 

    Neuroscience

    179,368

    28,540

    34.1%

    192,001

    38.3%

    (6.6%)Endu

    Oncology

    70,519

    11,221

    13.4%

    77,992

    15.6%

    (9.6%)ZailinInfectious Disease 

    53,999

    8,592

    10.2%

    28,971

    5.8%

    86.4%YintaiqingInflammation

    52,123

    8,293

    9.9%

    42,364

    8.5%

    23.0%SinofuanOncology40,667

    6,471

    7.7%

    53,002

    10.6%

    (23.3%)JiebaishuOncology19,047

    3,031

    3.6%

    19,827

    4.0%

    (3.9%)BiqiGastroenterology17,900

    2,848

    3.4%

    28,432

    5.7%

    (37.0%)AnxinInfectious Disease15,385

    2,448

    2.9%

    9,374

    1.9%

    64.1%FanengOsteoporosis11,564

    1,840

    2.2%

    10,705

    2.1%

    8.0%Anqi

    Infectious Disease9,767

    1,554

    1.9%

    10,725

    2.1%

    (8.9%)Others56,144

    8,933

    10.7%

    27,569

    5.4%

    103.6%Total 526,483

    83,771

    100.0%

    500,962

    100.0%

    5.1%Nine months ended
    September 30, 2012 Nine months ended
    September 30, 2011  RMBUSD % of totalRMB% of total ChangeProductsTherapeutic Area revenue revenueEdaravone 

    Neuroscience518,096

    82,436

    33.6%

    598,664

    39.2%

    (13.5%)Endu

    Oncology193,647

    30,812

    12.5%

    197,648

    12.9%

    (2.0%)ZailinInfectious Disease175,661

    27,950

    11.4%

    134,216

    8.8%

    30.9%YintaiqingInflammation129,198

    20,557

    8.4%

    128,998

    8.4%

    0.2%SinofuanOncology121,640

    19,355

    7.9%

    135,357

    8.8%

    (10.1%)BiqiGastroenterology66,620

    10,600

    4.3%

    70,248

    4.6%

    (5.2%)JiebaishuOncology53,781

    8,557

    3.5%

    49,647

    3.2%

    8.3%AnxinInfectious Disease45,674

    7,267

    3.0%

    35,042

    2.3%

    30.3%Anqi

    Infectious Disease40,422

    6,432

    2.6%

    45,635

    3.0%

    (11.4%)KechuanningRespiratory33,225

    5,287

    2.1%

    28,917

    1.9%

    14.9%Others164,862

    26,232

    10.7%

    105,155

    6.9%

    56.8%Total1,542,826

    245,485

    100.0%

    1,529,527

    100.0%

    0.9%For more information about the above products, please visit our corporate website: www.simcere.com.Gross margin for the third quarter of 2012 was 83.6%, compared to 84.6% for the same period in 2011. For the first nine months of 2012, gross margin was 83.2%, compared to 84.5%for the first nine months of 2011.

    Research and development expenses for the third quarter of 2012 totaled RMB65.3 million (US$10.4 million) which represented an increase of 43.7% from RMB45.4 million for the same period in 2011. This increase was due primarily to the increased expenditure on on-going research and development projects, as well as a reduction of RMB13.6 million in government research and development grants recognized compared to the same period in 2011. As a percentage of total revenue, research and development expenses increased to 12.4% for the third quarter of 2012 from 9.1% for the same period in 2011. For the first nine months of 2012, research and development expenses totaled RMB168.5 million (US$26.8 million), compared to RMB128.1 million for the same period in 2011.

    Sales, marketing and distribution expenses for the third quarter of 2012 were RMB306.1 million (US$48.7 million), which represented an increase of 5.1% from RMB291.3 million for the same period in 2011. As a percentage of total revenue, sales, marketing and distribution expenses was 58.1%, which was almost equal to the same period in 2011. For the first nine months of 2012, sales, marketing and distribution expenses were RMB856.3 million (US$136.2 million), which represented an increase of 1.4% from RMB844.5 million for the same period in 2011.

    General and administrative expenses were RMB60.8 million (US$9.7 million) for the third quarter of 2012, which represented a decrease of 12.6% from RMB69.6 million for the same period in 2011. As a percentage of total revenue, general and administrative expenses decreased to 11.5% for the third quarter of 2012 from 13.9% for the same period in 2011. For the first nine months of 2012, general and administrative expenses were RMB181.6 million (US$28.9 million), which represented a decrease of 14.5% from RMB212.4 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 administrative expenses, based on the nature of the work that the relevant employee was assigned to perform, totaled RMB3.9 million (US$0.6 million) for the third quarter of 2012. Share-based compensation expenses for the third quarter of 2011 were RMB7.9 million. The decrease was primarily due to the expiration of the first and second batches of restricted shares. For the first nine months of 2012, share-based compensation expenses totaled RMB10.5 million (US$1.7 million), which represented a decrease of 54.5% from RMB23.0 million for the same period in 2011.

    Income from operations was RMB32.9 million (US$5.2 million) for the third quarter of 2012, representing an increase of 1.6% from RMB32.4 million for the same period in 2011. The Company recorded other operating income of RMB24.8 million (US$3.9 million) in the third quarter of 2012 in connection with gain arising from the disposal of the controlling interest on one of our subsidiaries as part of the establishment of our equity joint venture with Merck. For the first nine months of 2012, income from operations was RMB117.7 million (US$18.7 million), which represented a decrease of 17.1% from RMB141.9 million for the same period in 2011.

    Income tax expense for the third quarter of 2012 was RMB3.4 million (US$0.5 million), compared to income tax expense of RMB0.7 million for the same period in 2011. The increase was primarily attributable to the effect of the tax rate change on deferred tax assets of one of our subsidiaries which in the third quarter 2012 renewed the Advanced and New Technology Enterprises qualification for an additional three years retrospectively from January 1, 2012. For the first nine months of 2012, income tax expense was RMB6.3 million (US$1.0 million), compared to RMB6.5 million for the same period in 2011.

    Net income attributable to Simcere was RMB22.2 million (US$3.5 million) for the third quarter of 2012, compared to RMB34.0 million for the same period in 2011. Net margin, representing net income attributable to Simcere divided by total revenue, was 4.2% for the third quarter of 2012, compared to 6.8% for the same period in 2011. For the first nine months of 2012, net income attributable to Simcere was RMB77.8 million (US$12.4 million), which represented a decrease of 42.7% from RMB135.6 million for the same period in 2011. Net margin for the first nine months of 2012 was 5.0%, compared to 8.9% for the same period in 2011.

    Basic and diluted earnings per American Depository Share ("ADS") for the third quarter of 2012 were RMB 0.42(US$0.07) and RMB 0.42(US$0.07), respectively. Basic and diluted earnings per ADS for the first nine months of 2012 were RMB1.45 (US$0.23) and RMB 1.44 (US$0.23), respectively. One ADS represents two ordinary shares of the Company.

    As of September 30, 2012, the Company had cash, cash equivalents and restricted cash of RMB152.3 million (US$24.2 million), compared to RMB262.6 million as of December 31, 2011.

    Financial InformationThe preliminary unaudited condensed consolidated statements of income and balance sheets accompanying this press release have been prepared by management using U.S. GAAP. This preliminary financial information is not intended to fully comply with U.S. GAAP because it does not present all of the financial information and disclosures required by U.S. GAAP.

    Safe Harbor StatementThis press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions. In particular, the quotations from management in this press release contain forward-looking statements. These forward looking statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Further information regarding these and other risks is included in Simcere's filings with the U.S. Securities and Exchange Commission at www.sec.gov. Simcere does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    Conference CallSimcere Pharmaceutical Group will host a conference call to discuss the Company's results for the third quarter of 2012 on Thursday, November 15, at 8:00 a.m. Eastern Time (Thursday, November 15 at 9:00 p.m. Beijing/Hong Kong time). The management team will be on the call to discuss the results for the third quarter of 2012 and to answer questions.

    To access the conference call, please dial:International toll:+65.6723.9381United States toll-free:+1.866.519.4004United States toll:+1.718.354.1231China Domestic toll:800.819.0121 China Domestic mobile toll:400.620.8038 Hong Kong toll:+852.2475.0994Please ask to be connected to Q3 2012 Simcere Pharmaceutical Group Earnings Conference Call and provide the following passcode: 57347315.

    Simcere will also broadcast a live audio webcast of the conference call. The broadcast will be available by visiting the "Investor Relations" section of the company's web site at www.simcere.com.

    Following the earnings conference call, an archive of the call will be available by dialing:United States toll-free:+1.866.214.5335United States toll:+1.718.354.1232The passcode for replay participants is 57347315. The telephone replay also will be archived on the "Investor Relations" section of the company's web site for seven days following the earnings announcement.

    About Simcere Pharmaceutical GroupSimcere Pharmaceutical Group (NYSE: SCR, Simcere) is a leading pharmaceutical company specializing in the development, manufacturing, and marketing of branded and proprietary pharmaceuticals in China. Simcere concentrates its research and development efforts on the treatment of diseases with high incidence and/or mortality rates and for which there is a clear demand for more effective pharmacotherapy such as cancer, strokes, cardiovascular disease, infectious diseases and pain. For more information about Simcere Pharmaceutical Group, please visit www.simcere.com.Investor and Media Contacts:
    Email: ir@simcere.com

     In Nanjing:In the United States:Jie Liu D'EliaCarly WestermanVice PresidentBrunswick GroupSimcere Pharmaceutical Group 

    Tel: 1-212-333-3810Tel: 86-25-8556-6666*8857In Beijing:Yue Yu

    Brunswick Group

    Tel: 86-10-5960-8600In Hong Kong:Joseph Lo Chi-Lun

    Brunswick Group

    Tel: 852-3512-5000   Simcere Pharmaceutical GroupPRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts expressed IN THOUSANDS, EXCEPT SHARE AND ADS DATA)

      Three months ended September 30, Nine months ended September 30,201120122012201120122012RMBRMBUSDRMBRMBUSDProduct revenue

    500,962

    526,483

    83,7711,529,527

    1,542,826

    245,485Total revenue500,962526,48383,7711,529,5271,542,826245,485Cost of materials and production

    (77,311)

    (86,183)

    (13,713)(237,545)

    (259,136)

    (41,232)Gross profit423,651440,30070,0581,291,9821,283,690204,253Operating expenses and other operating income:Research and development

    (45,410)

    (65,259)

    (10,384)(128,139)

    (168,501)

    (26,811)Sales, marketing and distribution

    (291,296)

    (306,134)

    (48,710)(844,546)

    (856,292)

    (136,248)General and administrative

    (69,562)

    (60,793)

    (9,673)(212,360)

    (181,615)

    (28,897)Other operating income*

    15,000

    24,789

    3,94435,000

    40,439

    6,434Income from operations

    32,383

    32,903

    5,235141,937

    117,721

    18,731Interest income

    1,278

    769

    1223,640

    2,810

    447Interest expense

    (11,903)

    (15,499)

    (2,466)(31,308)

    (55,361)

    (8,809)Foreign currency exchange gains (losses)

    2,907

    (239)

    (38)6,624

    (842)

    (134)Other  income

    6,668

    3,996

    63614,190

    8,185

    1,302

     Equity in losses of equity method affiliated company

    (3,619)

    (5,994)

    (954)(10,218)

    (10,921)

    (1,737)Earnings  before income taxes 27,71415,9362,535124,86561,5929,800Income tax expense

    (693)

    (3,445)

    (548)(6,495)

    (6,338)

    (1,008)Net Income27,02112,4911,987118,37055,2548,792Less: Net loss attributable to the noncontrolling interest6,9759,6691,53917,222

    22,503

    3,580Net income attributable to Simcere33,996

    22,160

    3,526135,592

    77,757

    12,372Earnings  per share attributable to Simcere:Basic

    0.32

    0.21

    0.031.27

    0.72

    0.11Diluted

    0.31

    0.21

    0.031.23

    0.72

    0.11Earnings  per ADS attributable to Simcere:Basic

    0.64

    0.42

    0.072.54

    1.45

    0.23Diluted

    0.61

    0.42

    0.072.45

    1.44

    0.23Weighted average number of common shares: Basic

    107,000,955

    106,517,423

    106,517,423106,905,528

    107,592,694

    107,592,694Diluted

    110,605,961

    106,693,034

    106,693,034110,521,391

    107,822,027

    107,822,027*  Other operating income in the third quarter amounting to RMB24.8 million (US$3.9 million) represents gain arising from the disposal of the controlling interest on one of our subsidiaries as part of the establishment of our equity joint venture with Merck. The gain recognized is subject to the completion of the valuation work and may be adjusted. 

     

     Simcere Pharmaceutical GroupPRELIMINARY UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts expressed IN THOUSANDS)

     December 31,September 30,September 30,2011RMB2012RMB2012USDAssetsCurrent assetsCash, cash equivalents and restricted cash

    262,557

    152,332

    24,238Bills receivable

    814,822

    658,545

    104,784Accounts receivable,net

    462,050

    410,220

    65,272Inventories

    126,708

    130,965

    20,838Other current assets

    181,196

    181,085

    28,813Total current assets1,847,3331,533,147243,945Property,plant and equipment,net

    925,815

    896,753

    142,686Land use rights

    139,707

    137,305

    21,847Goodwill and intangible assets, net

    648,408

    622,888

    99,110Investments in and advance to an affiliated company

    91,355

    130,396

    20,748Other non-current assets

    81,499

    92,982

    14,795Total assets3,734,117

    3,413,471

    543,131LiabilitiesCurrent liabilitiesShort-term borrowings and current portion of long-term  borrowings

     

    816,150

     

    685,000

     

    108,993Accounts payable

    52,191

    44,528

    7,085Bills payable

    28,379

    20,000

    3,183Other payables and accrued liabilities

    565,827

    435,738

    69,332Total current liabilities1,462,5471,185,266188,593Long-term borrowings, excluding current portion

    -

    2,000

    318Deferred tax liabilities

    46,248

    43,618

    6,940Other liabilities

    31,625

    32,399

    5,155Total liabilities1,540,4201,263,283201,006Shareholders' equitySimcere shareholders' equity Ordinary shares at par

    8,532

    8,299

    1,320Additional paid-in capital

    954,750

    861,817

    137,127Accumulated other comprehensive loss

    (104,608)

    (104,291)

    (16,594)Retained earnings

    1,197,507

    1,275,264

    202,913Total equity attributable to Simcere2,056,1812,041,089324,766Noncontrolling interest137,516109,09917,359Total shareholders' equity2,193,6972,150,188342,125Commitments and contingenciesTotal liabilities and shareholders' equity 

    3,734,117

    3,413,471

    543,131Note: The conversions of Renminbi (RMB) into United States dollars (USD) as at the reporting dates are based on the noon buying rate of USD1.00 = RMB6.2848 on September 30, 2012 as set forth in the H. 10 statistical release of the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on the reporting dates.


    '/>"/>
    SOURCE Simcere Pharmaceutical Group
    Copyright©2012 PR Newswire.
    All rights reserved


    Related medicine technology :

    1. Simcere Pharmaceutical Group to Announce First Quarter 2012 Financial Results on Wednesday, May 9, 2012
    2. Simcere Pharmaceutical Group Provides Notice of Annual General Meeting
    3. Simcere Pharmaceutical Group to Announce Second Quarter 2012 Financial Results on Friday, August 10, 2012
    4. Simcere Pharmaceutical Group Reports Preliminary Unaudited Second Quarter 2012 Results
    5. Simcere Pharmaceutical Group Announces Appointment of New Chief Executive Officer
    6. Simcere Pharmaceutical Group to Announce Third Quarter 2012 Financial Results on Thursday, November 15, 2012
    7. Report Presents a Framework for Successful New Oncology Product Launches in the Pharmaceutical Sector
    8. Savient Pharmaceuticals to Hold First Quarter 2012 Financial Results Conference Call on Wednesday, May 9, 2012
    9. Pharmaceutical Industry Service Company Awarded The UKs Most Prestigious Business Accolade in Recognition of Outstanding Achievement in International Trade
    10. Auxilium Pharmaceuticals to Present at the Deutsche Bank 37th Annual Healthcare Conference
    11. Nouveau Life Pharmaceuticals (HRID) Contracts with U.S. Manufacturer to Produce New Female Supplement
    Post Your Comments:
    *Name:
    *Comment:
    *Email:
    (Date:5/23/2016)... According to a new ... Product (Wheelchair, Scooters, Medical Beds, Bathroom Safety, Mechanical, ... Wound), Accessories (Lifting, Transfer) & by End User ... MarketsandMarkets, the patient handling equipment market is expected ... a CAGR of 10.5% during the forecast period ...
    (Date:5/23/2016)... , May 23, 2016 Diplomat Pharmacy, Inc. ... annual Fellowship and Internship programs. The hands-on learning experience ... The full-time, paid Fellowship and ... Michigan . Fellows and interns are provided optional ... Flint at the Riverfront Residence Hall ...
    (Date:5/23/2016)... , May 23, 2016 ... Size, Share, Development, Growth and Demand Forecast to ... and Other), by Application (Drug Discovery and Development, ... Users (Pharmaceuticals, Life Science and Biotechnology, Academic and ... Market Research, the global mass spectrometry market ...
    Breaking Medicine Technology:
    (Date:5/26/2016)... ... May 26, 2016 , ... OncLive® ... added National Cancer Institute-designated University of Virginia (UVA) Cancer Center to ... OncLive’s editorial and marketing teams will publicize and promote public awareness of UVA ...
    (Date:5/26/2016)... ... 26, 2016 , ... Workrite Ergonomics announced today that Phil ... develop their rapidly expanding portfolio of customer and end user accounts. ... and an M.B.A. with concentration in management from Bryant University in Smithfield, Rhode ...
    (Date:5/26/2016)... ... , ... Dr. LeRoy Perry’s recently authored whitepaper, “Tech Neck and ROI (return ... of users, hundreds of millions of whom are coming into the workplace with pain ... common action of looking down at hand-held technology devices (tablets, smartphones) for extended periods ...
    (Date:5/26/2016)... CA (PRWEB) , ... May 26, 2016 , ... In ... him running plumbing calls throughout the beach community. His vision to grow the company ... rates and ensuring they maintain the highest level of training and customer service. Over ...
    (Date:5/26/2016)... ... May 26, 2016 , ... TopConsumerReviews.com ... Blood Pressure products . , High blood pressure affects millions of people worldwide, ... blood pressure can lead to heart disease, stroke, kidney disease, and hardening of ...
    Breaking Medicine News(10 mins):