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Tongjitang Chinese Medicines Company Reports First Quarter 2010 Financial Results
Date:6/18/2010

SHENZHEN, China, June 18 /PRNewswire-Asia-FirstCall/ -- Tongjitang Chinese Medicines Company (the "Company" or "Tongjitang") (NYSE: TCM), a leading specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, today announced its financial results for the quarter ended March 31, 2010.

    Financial Results for the Quarter Ended March 31, 2010

    -- Net revenue increased 25.6% to RMB 113.3 million ($16.6 million)
       (note 1), from RMB 90.2 million in the prior year period.
    -- Operating loss was RMB 9.7 million ($1.4 million), compared to an
       operating loss of RMB 10.3 million in the prior year period.
    -- Net loss attributable to the Company was RMB 13.4 million ($2.0
       million), which yielded net loss per ADS of RMB 0.52 ($0.08) and net
       loss per share(note 2) of RMB 0.13 ($0.02).
    -- Non-GAAP loss per share was RMB 0.04 ($0.01), compared to non-GAAP loss
       per share of RMB 0.01 in the first quarter of 2009.

Xiaochun Wang, Chief Executive Officer and Chairman of Tongjitang, stated, "Our first quarter performance reflects strong revenue improvement in our pharmaceutical business. During the first quarter, we expanded our sales networks into community hospitals to better align ourselves with the government's reform efforts, which focused on rural areas. Even though the pace of National Essential Drug List ("EDL") implementation by the local governments has been much slower than expected, we anticipate a notable increase in sales of EDL drugs beginning in the later part of this year."


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SOURCE Tongjitang Chinese Medicines Company
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