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Tongjitang Chinese Medicines Company Reports Second Quarter 2010 Financial Results
Date:8/18/2010

of the Company's American Depositary Shares, which are traded on the New York Stock Exchange, represents four ordinary shares. For further information, please contact: ICR, Inc. Ashley M. Ammon or Christine Duan Tel: +1-203-682-8200 (Investor Relations) Tongjitang Chinese Medicines Company Condensed Consolidated Statements of Operations (In thousands, except share and per share data) Second Quarter Ended June 30, 2009 2010 2010 RMB RMB US$ (Note) Net revenues 134,069 137,859 20,329 Cost of revenues 52,334 58,652 8,649 Gross profit 81,735 79,207 11,680 Advertising expenses (3,517) (2,627) (387) Other selling and marketing expenses (36,994) (49,273) (7,266) General and administrative expenses (26,011) (26,432) (3,898) Research and development expenses (3,992) (3,558) (525) Gain on disposal of property, plant and equipment and land use rights -- 34 5 Other operating income 492 (117) (17) Income (loss) from operations 11,713 (2,766) (408) Other income (expenses): Interest income 1,236 141 21 Interest expense (2,133) (3,076) (454) Government grants 1,045 1,092 161 Investment gain / (loss) 631 (263) (39) Other income / (expenses), net 6,324 361 53 Income (loss) before income taxes and non-controlling interests 18,816 (4,511) (666) Provision for income taxes (1,618) (285) (42) Net income (loss) 17,198 (4,796) (708) Net (income) loss attributable to the non-controlling interests (41) 96 14 Net income (loss) attributable to the Company 17,157 (4,700) (694) Earnings per share Ordinary shares -Basic 0.13 -0.05 -0.01 -Diluted 0.13 -0.05 -0.01 Shares used in computation of earnings per share Ordinary shares -Basic 128,279,051 104,066,526 104,066,526 -Diluted 128,279,051 104,066,526 104,066,526 Half Year Ended June 30, 2009 2010 2010 RMB RMB US$ (Note) Net revenues 224,248 251,142 37,033 Cost of revenues 89,999 109,593 16,161 Gross profit 134,249 141,549 20,872 Advertising expenses (16,400) (6,108) (901) Other selling and marketing expenses (67,560) (98,395) (14,509) General and
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