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

and equity 1,305,206 1,362,996 1,453,261 214,298

(Note 1)

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.

(Note 2)

"We are in the process of performing valuations of certain identifiable property, plant and equipment, land use rights and intangible assets for the acquisitions we completed in the first quarter of 2010 and hence the net book value for investment property, property, plant and equipment, land use rights and intangible assets and goodwill is preliminary and subject to revision once we complete the valuation exercise.

Tongjitang Chinese Medicines Company Reconciliation of GAAP to Non-GAAP (In thousands, except share and per share data) Second Quarter Ended June 30, 2009 2010 2010 RMB RMB US$ (Note 1) GAAP net income 17,157 (4,700) (694) Share-based compensation expenses (Note 2) 2,033 26 4 Depreciation and amortisation 5,345 7,125 1,051 Interest (income) expense, net 897 2,935 433 Provision for income taxes 1,618 285 42 Non-GAAP adjusted EBITDA 27,050 5,671 836 GAAP earnings per share Ordinary shares -Basic 0.13 -0.05 -0.01 -Diluted 0.13 -0.05 -0.01 Non-GAAP adjusted EBITDA per share Ordinary shares -Basic 0.21 0.05 0.01 -Diluted 0.21 0.05 0.01 Shares used in computation of GAAP earnings per share / Non-GAAP adjusted EBITDA per share Ordinary shares -Basic 128,279,051 104,066,526 104,066,526 -Diluted 128,279,051
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