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

administrative expenses (43,021) (44,711) (6,593) Research and development expenses (6,805) (5,618) (828) Gain on disposal of property, plant and equipment and land use rights -- 34 5 Other operating income 988 799 118 Income (loss) from operations 1,451 (12,450) (1,836) Other income (expenses): Interest income 2,673 599 88 Interest expense (4,265) (5,566) (821) Government grants 2,420 2,284 337 Investment gain / (loss) 615 (212) (31) Other income / (expenses), net 6,627 24 4 Income (loss) before income taxes and non-controlling interests 9,521 (15,321) (2,259) Provision for income taxes (3,660) (3,024) (446) Net income (loss) 5,861 (18,345) (2,705) Net (income) loss attributable to the non-controlling interests (66) 236 35 Net income (loss) attributable to the Company 5,795 (18,109) (2,670) Earnings per share Ordinary shares -Basic 0.04 -0.17 -0.03 -Diluted 0.04 -0.17 -0.03 Shares used in computation of earnings per share Ordinary shares -Basic 129,512,746 104,066,526 104,066,526 -Diluted 129,512,746 104,066,526 104,066,526

(Note)

The condensed consolidated financial statements of Tongjitang Chinese Medicines Company are stated in Renminbi ("RMB"). The translation of RMB amounts as of and for the period ended June 30, 2010 into United States dollar ("US$") is included solely for the convenience of readers and has been made at the rate of RMB6.7815 to US$1.00, which is based on the noon buying rate in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York at June 30, 2010. Such translations should not be construed as representations that RMB amounts could be converted into US$ at that rate or any other rate.

Tongjitang Chinese Medicines Company Condensed Consolidated Balance Sheets (In thousands, except share data) Dec. 31, Mar. 31, Jun. 30, Jun. 30, 2009 2010 2010 2010 RMB RMB RMB US$ (Note 1) ASSETS Current assets: Cash and cash equivalents 237,578 208,145 284,993 42
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