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

ed adequate inventory.

Operating loss in the first quarter of 2010 was RMB 9.7 million ($1.4 million), compared to an operating loss of RMB 10.3 million in the first quarter of 2009. Operating loss was mainly attributable to: 1) increased selling and marketing expenses, reflecting the Company's efforts to invest in its sales team's infrastructure and EDL sales network; and 2) expenses incurred in enhancing the branding and marketing effort of Guizhou Gui Liquor Co., Ltd., a company we restructured and renamed in connection with our acquisition of a state-owned distillery business in Guiyang at the beginning of the first quarter of 2010.

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 adjusted EBITDA in the first quarter of 2010 was negative RMB 3.7 million ($0.5 million), compared to negative RMB 1.9 million in the first quarter of 2009. Non-GAAP adjusted EBITDA per share was negative RMB 0.04 ($0.01) in the first quarter of 2010, compared to negative RMB 0.01 in the first quarter of 2009. For the first quarter of 2010, the number of shares used in the computation of GAAP earnings per share and Non-GAAP adjusted EBITDA per share was 104.1 million, compared to 135.2 million in the prior year period. Please refer to the Company's GAAP to non-GAAP rec
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SOURCE Tongjitang Chinese Medicines Company
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