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

Net revenue in the first quarter of 2010 increased 25.6% to RMB 113.3 million ($16.6 million) from RMB 90.2 million in the first quarter of 2009. Xianling Gubao ("XLGB") sales were RMB 54.5 million ($8.0 million) in the first quarter of 2010, compared to RMB 54.8 million in the first quarter of 2009. Net revenue from Moisturizing & Anti-itching Capsules and Zaoren Anshen Capsules reached RMB 14.7 million ($2.2 million) in the first quarter of 2010, compared to RMB 15.0 million in the first quarter of 2009. Net revenue from the Company's other products increased 116.2% to RMB 44.1 million ($6.4 million) from RMB 20.4 million in the first quarter of 2009. Revenue contribution from Anhui Jingfang Pharmaceutical Co., Ltd. ("Jingfang"), which was acquired at the end of the first quarter of 2009, was RMB 18.8 million ($2.8 million), compared to RMB14.0 million in the fourth quarter of 2009.

Gross profit increased 18.7% to RMB 62.3 million ($9.1 million) in the first quarter of 2010 from RMB 52.5 million in the first quarter of 2009. Gross margin was 55.0% in the first quarter of 2010, compared to 58.2% in the same period of 2009. Tongjitang's gross margin reflects higher revenue contribution from lower-margin products, as well as increased costs of raw materials, other than barrenwort, related to herbal medicines. Market price of barrenwort has remained relatively stable and we have maintain
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SOURCE Tongjitang Chinese Medicines Company
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