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Simcere Pharmaceutical Group Reports Unaudited Fourth Quarter and Fiscal Year 2010 Results
Date:3/8/2011

% from RMB50.1 million for the same period in 2009. This decrease was primarily due to a government research and innovation subsidy recognized in the fourth quarter of 2010 which offset part of the Company's research and development expenses and several concentrated payments by the Company in the same period of 2009 for several research and development projects. As a percentage of total revenue, research and development expenses were 5.4% for the fourth quarter of 2010, compared to 9.2% for the same period in 2009. For the full year of 2010, research and development expenses totaled RMB125.7 million (US$19.1 million), compared to RMB133.0 million for the full year of 2009.

Sales, marketing and distribution expenses for the fourth quarter of 2010 were RMB330.6 million (US$50.1 million), which represented an increase of 10.2% from RMB299.9 million for the same period in 2009. As a percentage of total revenue, sales, marketing and distribution expenses were 56.3% for the fourth quarter of 2010, compared to 54.9% for the same period in 2009. This increase was primarily due to the expansion of our sales team and higher promotion expenses for new-to-market drugs. For the full year of 2010, sales, marketing and distribution expenses were RMB1,186.1 million (US$179.7 million), which represented an increase of 18.3% from RMB1,002.4 million for the full year of 2009.

General and administrative expenses were RMB69.6 million (US$10.5 million) for the fourth quarter of 2010, which represented an increase of 23.6% from RMB56.3 million for the same period in 2009. As a percentage of total revenue, general and administrative expenses increased to 11.8% for the fourth quarter of 2010 from 10.3% for the same period in 2009. For the full year of 2010, general and administrative expenses were RMB269.5 million (US$40.8 million), which represented an increase of 21.3% from RMB222.1 milli
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