Simcere Pharmaceutical Group Reports Preliminary Unaudited Fourth Quarter And Full Year 2012 Results
NANJING, China, March 7, 2013 /PRNewswire/ -- Simcere Pharmaceutical Group ("Simcere" or the "Company") (NYSE: SCR), a leading pharmaceutical company specializing in the development, manufacturing, and marketing of branded generic and proprietary pharmaceuticals in China, today reported preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2012.
Highlights
Total revenue was RMB540.1 million (US$86.7 million) for the fourth quarter of 2012, compared to RMB511.0 million for the same period in 2011, representing an increase of 5.7%. For the full year of 2012, total revenue was RMB2,083.0 million (US$334.3 million), representing an increase of 2.1% from RMB2,040.5 million in 2011.
Gross margin for the fourth quarter of 2012 was 81.1%, compared to 82.3% for the same period in 2011. For the full year of 2012, gross margin was 82.7%, compared to 83.9% in 2011.
Loss from operations for the fourth quarter of 2012 was RMB78.2 million (US$12.5 million), primarily due to a non-cash impairment charge of RMB97.2 million(US$15.6 million), as the result of a write-down of intangible assets, goodwill, and assets held for sale associated with the acquisition of Jiangsu Quanyi Biological Technology Stock Co., Ltd. ("Jiangsu Quanyi") in 2009. For the full year of 2012, income from operations was RMB39.6 million (US$6.4 million), which represented a decrease of 72.4% from RMB143.5 million in 2011.
Net loss attributable to Simcere for the fourth quarter of 2012 was RMB20.8 million (US$3.3 million), compared to net income attributable to Simcere of RMB42.8 million for the same period in 2011. For the full year of 2012, net income attributable to Simcere was RMB57.0 million (US$9.1 million), which represented a decrease of 68.1% from RMB178.4 million in 2011.
Mr. Hongquan Liu, Executive Director and Chief Executive Officer of Simcere Pharmaceutical Group, commented, "With the ongoing implementation of a series of healthcare reform policies, drug prices continued to trend down in 2012. Despite the challenging environment and intense competition, our sales in the fourth quarter grew moderately. While we believe market conditions will remain challenging in 2013, our priorities will continue to be strengthening promotion of our key products, accelerating market access and hospital listings, and reducing costs."
The Company also announced that Mr. Alan Au joined the Company as an independent director and chairman of the audit committee in March 2013. Mr. Au has over 15 years of experience in the financial service and investment sectors relating to healthcare in Asia. He is a Certified Public Accountant in the U.S. and holds the Chartered Financial Analyst designation. Mr. Au received his Bachelor's degree in Psychology from the Chinese University of Hong Kong in 1995, and a Master's degree in Management from Columbia University in 2007.
2012 Fourth Quarter and Full Year Financial Results
Total revenue for the fourth quarter of 2012 was RMB540.1 million (US$86.7 million), compared to RMB511.0 million for the same period in 2011, representing an increase of 5.7%. For the full year of 2012, total revenue was RMB2,083.0 million (US$334.3 million), representing an increase of 2.1% from RMB2,040.5 million in 2011.
The tables below set forth the Company's top 10 products by revenue for the three months ended December 31, 2012 and the year ended December 31, 2012:
In Thousands
Three months ended December 31, 2012
Three months ended December 31, 2011
RMB
USD
% of total
RMB
% of total
Change
Products
Therapeutic Area
revenue
revenue
Edaravone
Neuroscience
184,601
29,631
34.2%
172,303
33.7%
7.1%
Endu
Oncology
77,567
12,450
14.4%
65,397
12.8%
18.6%
Zailin
Infectious Disease
53,642
8,610
9.9%
56,790
11.1%
(5.5%)
Yintaiqing
Inflammation
48,686
7,814
9.0%
56,443
11.0%
(13.7%)
Sinofuan
Oncology
38,244
6,139
7.1%
42,789
8.4%
(10.6%)
Biqi
Gastroenterology
19,622
3,149
3.6%
11,786
2.3%
66.5%
Jiebaishu
Oncology
15,772
2,532
2.9%
18,696
3.7%
(15.6%)
Kechuanning
Respiratory
13,132
2,108
2.4%
13,351
2.6%
(1.6%)
Anqi
Infectious Disease
11,073
1,777
2.1%
12,957
2.5%
(14.5%)
Anxin
Infectious Disease
10,722
1,721
2.0%
10,877
2.1%
(1.4%)
Others
67,079
10,767
12.4%
49,631
9.8%
35.2%
Total
540,140
86,698
100.0%
511,020
100.0%
5.7%
Year ended December 31, 2012
Year ended December 31, 2011
RMB
USD
% of total
RMB
% of total
Change
Products
Therapeutic Area
revenue
revenue
Edaravone
Neuroscience
702,698
112,791
33.7%
770,967
37.8%
(8.9%)
Endu
Oncology
271,214
43,533
13.0%
263,046
12.9%
3.1%
Zailin
Infectious Disease
229,303
36,806
11.0%
191,006
9.4%
20.1%
Yintaiqing
Inflammation
177,884
28,552
8.5%
185,441
9.1%
(4.1%)
Sinofuan
Oncology
159,884
25,663
7.7%
178,146
8.7%
(10.3%)
Biqi
Gastroenterology
86,242
13,843
4.1%
82,034
4.0%
5.1%
Jiebaishu
Oncology
69,553
11,164
3.4%
68,344
3.3%
1.8%
Anxin
Infectious Disease
56,396
9,052
2.7%
45,919
2.3%
22.8%
Anqi
Infectious Disease
51,495
8,265
2.5%
58,592
2.9%
(12.1%)
Kechuanning
Respiratory
46,357
7,441
2.2%
42,268
2.0%
9.7%
Others
231,940
37,229
11.2%
154,784
7.6%
49.8%
Total
2,082,966
334,339
100.0%
2,040,547
100.0%
2.1%
For more information about the above products, please visit the Company's corporate website:
.
Gross margin for the fourth quarter of 2012 was 81.1%, compared to 82.3% for the same period in 2011. For the full year of 2012, gross margin was 82.7%, compared to 83.9% in 2011.
Research and development expenses for the fourth quarter of 2012 totaled RMB60.2 million (US$9.7 million) which represented a decrease of 14.7% from RMB70.6 million for the same period in 2011. This was due primarily to an addition of RMB7.9 million (US$1.3 million) in government research and development grants recognized compared to the same period in 2011. As a percentage of total revenue, research and development expenses decreased to 11.1% for the fourth quarter of 2012 from 13.8% for the same period in 2011. For the full year of 2012, research and development expenses totaled RMB228.7 million (US$36.7 million), compared to RMB198.7 million in 2011.
Sales, marketing and distribution expenses for the fourth quarter of 2012 were RMB284.5 million (US$45.7 million), which represented a decrease of 1.0% from RMB287.4 million for the same period in 2011. As a percentage of total revenue, sales, marketing and distribution expenses decreased to 52.7% for the fourth quarter of 2012 from 56.2% for the same period in 2011. For the full year of 2012, sales, marketing and distribution expenses were RMB1,140.8 million (US$183.1 million), which represented an increase of 0.8% from RMB1,132.0 million in 2011.
General and administrative expenses were RMB74.4 million (US$11.9 million) for the fourth quarter of 2012, which represented a decrease of 1.8% from RMB75.8 million for the same period in 2011. As a percentage of total revenue, general and administrative expenses decreased to 13.8% for the fourth quarter of 2012 from 14.8% for the same period in 2011. For the full year of 2012, general and administrative expenses were RMB256.0 million (US$41.1 million), which represented a decrease of 11.2% from RMB288.1 million in 2011.
Share-based compensation expenses, which were allocated to research and development expenses, sales, marketing and distribution expenses, and general and administrative expenses, based on the nature of the work that the relevant employee was assigned to perform, totaled RMB10.0 million (US$1.6 million) for the fourth quarter of 2012, compared to RMB6.3 million for the same period in 2011, which was primarily due to new issuance of restricted shares. For the full year of 2012, share-based compensation expenses totaled RMB20.4 million (US$3.3 million), a decrease of 30.4% from RMB29.3 million in 2011, which was primarily due to the completion of the vesting period of the first and second batches of restricted shares in November 2011 and March 2012, respectively.
Loss from operations for the fourth quarter of 2012 was RMB78.2 million (US$12.5 million), compared to income from operations of RMB1.6 million for the same period in 2011. Loss from operations was primarily attributable to a non-cash impairment charge of RMB97.2 million (US$15.6 million) as the result of a write-down of intangible assets, goodwill, and assets held for sale associated with the acquisition of Jiangsu Quanyi in 2009. Simcere has determined a write-down of assets and goodwill of Jiangsu Quanyi is required due to lowered expectation for future sales and profitability of its vaccine products currently under development. For the full year of 2012, income from operations was RMB39.6 million (US$6.4 million), which represented a decrease of 72.4% from RMB143.5 million in 2011.
Income tax benefit for the fourth quarter of 2012 was RMB11.9 million (US$1.9 million), compared to income tax benefit of RMB41.9 million for the same period in 2011. The significant income tax benefit in the fourth quarter of 2011 was primarily due to the improved financial results at one of the Company's subsidiaries during 2011, resulting in the reversal of the valuation allowance previously made against the deferred tax assets of this subsidiary amounting to RMB32.3 million in the fourth quarter of 2011. For the full year of 2012, income tax benefit was RMB5.6 million (US$0.9 million), compared to income tax benefit of RMB35.4 million in 2011.
Net loss attributable to Simcere for the fourth quarter of 2012 was RMB20.8 million (US$3.3 million), compared to net income attributable to Simcere of RMB42.8 million for the same period in 2011. The net loss, as mentioned previously, was primarily attributable to the non-cash impairment charge of RMB97.2 million (US$15.6 million) as the result of a write-down of intangible assets, goodwill and assets held for sale associated with the acquisition of Jiangsu Quanyi in 2009. For the full year of 2012, net income attributable to Simcere was RMB57.0 million (US$9.1 million), which represented a decrease of 68.1% from RMB178.4 million in 2011. Net margin, representing net income attributable to Simcere divided by total revenue, for the full year of 2012 was 2.7%, compared to 8.7% in 2011.
Basic and diluted net loss per American Depository Share ("ADS") for the fourth quarter of 2012 were RMB 0.40(US$0.06) and RMB 0.39(US$0.06), respectively. Basic and diluted earnings per ADS for the full year of 2012 were RMB1.06(US$0.17) and RMB1.06(US$0.17), respectively. One ADS represents two ordinary shares of the Company.
As of December 31, 2012, the Company had cash, cash equivalents and restricted cash of RMB201.6 million (US$32.4 million), compared to RMB262.6 million as of December 31, 2011.
Financial Information
The preliminary unaudited condensed consolidated statements of income and balance sheets accompanying this press release have been prepared by management using U.S. GAAP. This preliminary financial information is not intended to fully comply with U.S. GAAP because it does not present all of the financial information and disclosures required by U.S. GAAP.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions. In particular, the quotations from management in this press release contain forward-looking statements. These forward looking statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Further information regarding these and other risks is included in Simcere's filings with the U.S. Securities and Exchange Commission at www.sec.gov. Simcere does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Conference Call
Simcere Pharmaceutical Group will host a conference call to discuss the Company's results for the fourth quarter and full year of 2012 on Thursday, March 7, 2013 at 8:00 a.m. Eastern Time (Thursday, March 7 at 9:00 p.m.Beijing/Hong Kong time). The management team will be on the call to discuss the results for the fourth quarter and full year of 2012 and to answer questions.
To access the conference call, please dial:
International toll:
+65.6723.9381
United States toll-free:
+1.866.519.4004
United States toll:
+1.718.354.1231
China Domestic toll-free:
800.819.0121
China Domestic mobile toll-free:
400.620.8038
Hong Kong toll:
+852.2475.0994
Please ask to be connected to Q4 2012 Simcere Pharmaceutical Group Earnings Conference Call and provide the following passcode: 12783585.
Simcere will also broadcast a live audio webcast of the conference call. The broadcast will be available by visiting the "Investor Relations" section of the company's web site at www.simcere.com.
Following the earnings conference call, an archive of the call will be available by dialing:
United States toll-free:
+1.855.452.5696
United States toll:
+1.646.254.3697
The passcode for replay participants is 12783585. The telephone replay also will be archived on the "Investor Relations" section of the company's website for seven days following the earnings announcement.
About Simcere Pharmaceutical Group
Simcere Pharmaceutical Group (NYSE: SCR, Simcere) is a leading pharmaceutical company specializing in the development, manufacturing, and marketing of branded and proprietary pharmaceuticals in China. Simcere concentrates its research and development efforts on the treatment of diseases with high incidence and/or mortality rates and for which there is a clear demand for more effective pharmacotherapy such as cancer, strokes, cardiovascular disease, infectious diseases and pain. For more information about Simcere Pharmaceutical Group, please visit www.simcere.com.
Investments in and advance to an affiliated company
91,355
56,785
9,115
Other non-current assets
81,499
71,381
11,457
Total assets
3,734,117
3,372,663
541,350
Liabilities
Current liabilities
Short-term borrowings and current portion of long-term borrowings
816,150
675,779
108,470
Accounts payable
52,191
47,136
7,566
Bills payable
28,379
15,000
2,408
Other payables and accrued liabilities
565,827
471,603
75,697
Total current liabilities
1,462,547
1,209,518
194,141
Long-term borrowings, excluding current portion
-
2,000
321
Deferred tax liabilities
46,248
56,120
9,008
Other liabilities
31,625
32,657
5,242
Total liabilities
1,540,420
1,300,295
208,712
Shareholders' equity
Simcere shareholders' equity
Ordinary shares at par
8,532
8,258
1,326
Additional paid-in capital
954,750
853,551
137,004
Accumulated other comprehensive loss
(104,608)
(104,147)
(16,717)
Retained earnings
1,197,507
1,254,464
201,355
Total equity attributable to Simcere
2,056,181
2,012,126
322,968
Noncontrolling interest
137,516
60,242
9,670
Total shareholders' equity
2,193,697
2,072,368
332,638
Commitments and contingencies
Total liabilities and shareholders' equity
3,734,117
3,372,663
541,350
Note: The conversions of Renminbi (RMB) into United States dollars (USD) as at the reporting dates are based on the noon buying rate of USD1.00 = RMB6.2301 on December 31, 2012 as set forth in the H. 10 statistical release of the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on the reporting dates.
Press Release $SCR Simcere Pharmaceutical Group.
NANJING, China, March 7, 2013 /PRNewswire/ -- Simcere Pharmaceutical Group ("Simcere" or the "Company") (NYSE: SCR), a leading pharmaceutical company specializing in the development, manufacturing, and marketing of branded generic and proprietary pharmaceuticals in China, today reported preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2012.
Highlights
Mr. Hongquan Liu, Executive Director and Chief Executive Officer of Simcere Pharmaceutical Group, commented, "With the ongoing implementation of a series of healthcare reform policies, drug prices continued to trend down in 2012. Despite the challenging environment and intense competition, our sales in the fourth quarter grew moderately. While we believe market conditions will remain challenging in 2013, our priorities will continue to be strengthening promotion of our key products, accelerating market access and hospital listings, and reducing costs."
The Company also announced that Mr. Alan Au joined the Company as an independent director and chairman of the audit committee in March 2013. Mr. Au has over 15 years of experience in the financial service and investment sectors relating to healthcare in Asia. He is a Certified Public Accountant in the U.S. and holds the Chartered Financial Analyst designation. Mr. Au received his Bachelor's degree in Psychology from the Chinese University of Hong Kong in 1995, and a Master's degree in Management from Columbia University in 2007.
2012 Fourth Quarter and Full Year Financial Results
Total revenue for the fourth quarter of 2012 was RMB540.1 million (US$86.7 million), compared to RMB511.0 million for the same period in 2011, representing an increase of 5.7%. For the full year of 2012, total revenue was RMB2,083.0 million (US$334.3 million), representing an increase of 2.1% from RMB2,040.5 million in 2011.
The tables below set forth the Company's top 10 products by revenue for the three months ended December 31, 2012 and the year ended December 31, 2012:
In Thousands
Three months ended December 31, 2012
Three months ended December 31, 2011
RMB
USD
% of total
RMB
% of total
Change
Products
Therapeutic Area
revenue
revenue
Edaravone
Neuroscience
184,601
29,631
34.2%
172,303
33.7%
7.1%
Endu
Oncology
77,567
12,450
14.4%
65,397
12.8%
18.6%
Zailin
Infectious Disease
53,642
8,610
9.9%
56,790
11.1%
(5.5%)
Yintaiqing
Inflammation
48,686
7,814
9.0%
56,443
11.0%
(13.7%)
Sinofuan
Oncology
38,244
6,139
7.1%
42,789
8.4%
(10.6%)
Biqi
Gastroenterology
19,622
3,149
3.6%
11,786
2.3%
66.5%
Jiebaishu
Oncology
15,772
2,532
2.9%
18,696
3.7%
(15.6%)
Kechuanning
Respiratory
13,132
2,108
2.4%
13,351
2.6%
(1.6%)
Anqi
Infectious Disease
11,073
1,777
2.1%
12,957
2.5%
(14.5%)
Anxin
Infectious Disease
10,722
1,721
2.0%
10,877
2.1%
(1.4%)
Others
67,079
10,767
12.4%
49,631
9.8%
35.2%
Total
540,140
86,698
100.0%
511,020
100.0%
5.7%
Year ended December 31, 2012
Year ended December 31, 2011
RMB
USD
% of total
RMB
% of total
Change
Products
Therapeutic Area
revenue
revenue
Edaravone
Neuroscience
702,698
112,791
33.7%
770,967
37.8%
(8.9%)
Endu
Oncology
271,214
43,533
13.0%
263,046
12.9%
3.1%
Zailin
Infectious Disease
229,303
36,806
11.0%
191,006
9.4%
20.1%
Yintaiqing
Inflammation
177,884
28,552
8.5%
185,441
9.1%
(4.1%)
Sinofuan
Oncology
159,884
25,663
7.7%
178,146
8.7%
(10.3%)
Biqi
Gastroenterology
86,242
13,843
4.1%
82,034
4.0%
5.1%
Jiebaishu
Oncology
69,553
11,164
3.4%
68,344
3.3%
1.8%
Anxin
Infectious Disease
56,396
9,052
2.7%
45,919
2.3%
22.8%
Anqi
Infectious Disease
51,495
8,265
2.5%
58,592
2.9%
(12.1%)
Kechuanning
Respiratory
46,357
7,441
2.2%
42,268
2.0%
9.7%
Others
231,940
37,229
11.2%
154,784
7.6%
49.8%
Total
2,082,966
334,339
100.0%
2,040,547
100.0%
2.1%
For more information about the above products, please visit the Company's corporate website:
.
Gross margin for the fourth quarter of 2012 was 81.1%, compared to 82.3% for the same period in 2011. For the full year of 2012, gross margin was 82.7%, compared to 83.9% in 2011.
Research and development expenses for the fourth quarter of 2012 totaled RMB60.2 million (US$9.7 million) which represented a decrease of 14.7% from RMB70.6 million for the same period in 2011. This was due primarily to an addition of RMB7.9 million (US$1.3 million) in government research and development grants recognized compared to the same period in 2011. As a percentage of total revenue, research and development expenses decreased to 11.1% for the fourth quarter of 2012 from 13.8% for the same period in 2011. For the full year of 2012, research and development expenses totaled RMB228.7 million (US$36.7 million), compared to RMB198.7 million in 2011.
Sales, marketing and distribution expenses for the fourth quarter of 2012 were RMB284.5 million (US$45.7 million), which represented a decrease of 1.0% from RMB287.4 million for the same period in 2011. As a percentage of total revenue, sales, marketing and distribution expenses decreased to 52.7% for the fourth quarter of 2012 from 56.2% for the same period in 2011. For the full year of 2012, sales, marketing and distribution expenses were RMB1,140.8 million (US$183.1 million), which represented an increase of 0.8% from RMB1,132.0 million in 2011.
General and administrative expenses were RMB74.4 million (US$11.9 million) for the fourth quarter of 2012, which represented a decrease of 1.8% from RMB75.8 million for the same period in 2011. As a percentage of total revenue, general and administrative expenses decreased to 13.8% for the fourth quarter of 2012 from 14.8% for the same period in 2011. For the full year of 2012, general and administrative expenses were RMB256.0 million (US$41.1 million), which represented a decrease of 11.2% from RMB288.1 million in 2011.
Share-based compensation expenses, which were allocated to research and development expenses, sales, marketing and distribution expenses, and general and administrative expenses, based on the nature of the work that the relevant employee was assigned to perform, totaled RMB10.0 million (US$1.6 million) for the fourth quarter of 2012, compared to RMB6.3 million for the same period in 2011, which was primarily due to new issuance of restricted shares. For the full year of 2012, share-based compensation expenses totaled RMB20.4 million (US$3.3 million), a decrease of 30.4% from RMB29.3 million in 2011, which was primarily due to the completion of the vesting period of the first and second batches of restricted shares in November 2011 and March 2012, respectively.
Loss from operations for the fourth quarter of 2012 was RMB78.2 million (US$12.5 million), compared to income from operations of RMB1.6 million for the same period in 2011. Loss from operations was primarily attributable to a non-cash impairment charge of RMB97.2 million (US$15.6 million) as the result of a write-down of intangible assets, goodwill, and assets held for sale associated with the acquisition of Jiangsu Quanyi in 2009. Simcere has determined a write-down of assets and goodwill of Jiangsu Quanyi is required due to lowered expectation for future sales and profitability of its vaccine products currently under development. For the full year of 2012, income from operations was RMB39.6 million (US$6.4 million), which represented a decrease of 72.4% from RMB143.5 million in 2011.
Income tax benefit for the fourth quarter of 2012 was RMB11.9 million (US$1.9 million), compared to income tax benefit of RMB41.9 million for the same period in 2011. The significant income tax benefit in the fourth quarter of 2011 was primarily due to the improved financial results at one of the Company's subsidiaries during 2011, resulting in the reversal of the valuation allowance previously made against the deferred tax assets of this subsidiary amounting to RMB32.3 million in the fourth quarter of 2011. For the full year of 2012, income tax benefit was RMB5.6 million (US$0.9 million), compared to income tax benefit of RMB35.4 million in 2011.
Net loss attributable to Simcere for the fourth quarter of 2012 was RMB20.8 million (US$3.3 million), compared to net income attributable to Simcere of RMB42.8 million for the same period in 2011. The net loss, as mentioned previously, was primarily attributable to the non-cash impairment charge of RMB97.2 million (US$15.6 million) as the result of a write-down of intangible assets, goodwill and assets held for sale associated with the acquisition of Jiangsu Quanyi in 2009. For the full year of 2012, net income attributable to Simcere was RMB57.0 million (US$9.1 million), which represented a decrease of 68.1% from RMB178.4 million in 2011. Net margin, representing net income attributable to Simcere divided by total revenue, for the full year of 2012 was 2.7%, compared to 8.7% in 2011.
Basic and diluted net loss per American Depository Share ("ADS") for the fourth quarter of 2012 were RMB 0.40 (US$0.06) and RMB 0.39 (US$0.06), respectively. Basic and diluted earnings per ADS for the full year of 2012 were RMB1.06 (US$0.17) and RMB1.06 (US$0.17), respectively. One ADS represents two ordinary shares of the Company.
As of December 31, 2012, the Company had cash, cash equivalents and restricted cash of RMB201.6 million (US$32.4 million), compared to RMB262.6 million as of December 31, 2011.
Financial Information
The preliminary unaudited condensed consolidated statements of income and balance sheets accompanying this press release have been prepared by management using U.S. GAAP. This preliminary financial information is not intended to fully comply with U.S. GAAP because it does not present all of the financial information and disclosures required by U.S. GAAP.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions. In particular, the quotations from management in this press release contain forward-looking statements. These forward looking statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Further information regarding these and other risks is included in Simcere's filings with the U.S. Securities and Exchange Commission at www.sec.gov. Simcere does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Conference Call
Simcere Pharmaceutical Group will host a conference call to discuss the Company's results for the fourth quarter and full year of 2012 on Thursday, March 7, 2013 at 8:00 a.m. Eastern Time (Thursday, March 7 at 9:00 p.m. Beijing/Hong Kong time). The management team will be on the call to discuss the results for the fourth quarter and full year of 2012 and to answer questions.
To access the conference call, please dial:
International toll:
+65.6723.9381
United States toll-free:
+1.866.519.4004
United States toll:
+1.718.354.1231
China Domestic toll-free:
800.819.0121
China Domestic mobile toll-free:
400.620.8038
Hong Kong toll:
+852.2475.0994
Please ask to be connected to Q4 2012 Simcere Pharmaceutical Group Earnings Conference Call and provide the following passcode: 12783585.
Simcere will also broadcast a live audio webcast of the conference call. The broadcast will be available by visiting the "Investor Relations" section of the company's web site at www.simcere.com.
Following the earnings conference call, an archive of the call will be available by dialing:
United States toll-free:
+1.855.452.5696
United States toll:
+1.646.254.3697
The passcode for replay participants is 12783585. The telephone replay also will be archived on the "Investor Relations" section of the company's website for seven days following the earnings announcement.
About Simcere Pharmaceutical Group
Simcere Pharmaceutical Group (NYSE: SCR, Simcere) is a leading pharmaceutical company specializing in the development, manufacturing, and marketing of branded and proprietary pharmaceuticals in China. Simcere concentrates its research and development efforts on the treatment of diseases with high incidence and/or mortality rates and for which there is a clear demand for more effective pharmacotherapy such as cancer, strokes, cardiovascular disease, infectious diseases and pain. For more information about Simcere Pharmaceutical Group, please visit www.simcere.com.
Investor and Media Contacts:
Email: ir@simcere.com
In Nanjing:
In the United States:
Jie Liu D'Elia
Cindy Zheng
Vice President
Brunswick Group
Simcere Pharmaceutical Group
Tel: 1-212-333-3810
Tel: 86-25-8556-6666*8857
In Beijing:
Yue Yu
Brunswick Group
Tel: 86-10-5960-8600
Simcere Pharmaceutical Group
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts expressed IN THOUSANDS, EXCEPT SHARE AND ADS DATA)
Three months ended December 31,
Year ended December 31,
2011
2012
2012
2011
2012
2012
RMB
RMB
USD
RMB
RMB
USD
Product revenue
511,020
540,140
86,698
2,040,547
2,082,966
334,339
Total revenue
511,020
540,140
86,698
2,040,547
2,082,966
334,339
Cost of materials and production
(90,614)
(101,935)
(16,361)
(328,159)
(361,071)
(57,956)
Gross profit
420,406
438,205
70,337
1,712,388
1,721,895
276,383
Operating expenses and other operating income:
Research and development
(70,583)
(60,216)
(9,666)
(198,722)
(228,717)
(36,711)
Sales, marketing and distribution
(287,428)
(284,518)
(45,668)
(1,131,974)
(1,140,810)
(183,113)
General and administrative
(75,784)
(74,384)
(11,940)
(288,144)
(255,999)
(41,091)
Impairment on goodwill, intangible assets
and assets held for sale
-
(97,247)
(15,609)
-
(97,247)
(15,609)
Other operating income
15,000
-
-
50,000
40,439
6,491
Income/(loss) from operations
1,611
(78,160)
(12,546)
143,548
39,561
6,350
Interest income
1,036
1,256
202
4,676
4,066
653
Interest expense
(11,034)
(13,897)
(2,231)
(42,342)
(69,258)
(11,117)
Foreign currency exchange gains/(losses)
1,108
(81)
(13)
7,732
(923)
(148)
Other income
846
3,244
521
15,036
11,429
1,834
Equity in (losses)/incomes of equity method
affiliated company
(1,974)
6,062
973
(12,192)
(4,859)
(780)
Income/(loss) before income taxes
(8,407)
(81,576)
(13,094)
116,458
(19,984)
(3,208)
Income tax benefit
41,866
11,919
1,913
35,371
5,581
896
Net Income/(loss)
33,459
(69,657)
(11,181)
151,829
(14,403)
(2,312)
Less: Net loss attributable to the
noncontrolling interest
9,338
48,857
7,842
26,560
71,360
11,454
Net income/(loss) attributable to Simcere
42,797
(20,800)
(3,339)
178,389
56,957
9,142
Income/(loss) per share attributable to Simcere:
Basic
0.39
(0.20)
(0.03)
1.63
0.53
0.09
Diluted
0.39
(0.20)
(0.03)
1.61
0.53
0.09
Income/(loss) per ADS attributable to Simcere:
Basic
0.78
(0.40)
(0.06)
3.25
1.06
0.17
Diluted
0.77
(0.39)
(0.06)
3.23
1.06
0.17
Weighted average number of common shares: Basic
109,941,646
105,220,991
105,220,991
109,738,705
106,996,531
106,996,531
Diluted
110,477,166
105,764,663
105,764,663
110,525,257
107,370,830
107,370,830
SIMCERE PHARMACEUTICAL GROUP
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN THOUSANDS)
December 31,
December 31,
December 31,
2011
RMB
2012
RMB
2012
USD
Assets
Current assets
Cash, cash equivalents and restricted cash
262,557
201,556
32,352
Assets held for sale
-
90,550
14,534
Bills receivable
814,822
679,630
109,088
Accounts receivable, net
462,050
413,481
66,368
Inventories
126,708
120,932
19,411
Other current assets
181,196
237,248
38,081
Total current assets
1,847,333
1,743,397
279,834
Property, plant and equipment, net
925,815
853,546
137,004
Land use rights
139,707
128,220
20,581
Goodwill and intangible assets, net
648,408
519,334
83,359
Investments in and advance to an affiliated company
91,355
56,785
9,115
Other non-current assets
81,499
71,381
11,457
Total assets
3,734,117
3,372,663
541,350
Liabilities
Current liabilities
Short-term borrowings and current portion of long-term
borrowings
816,150
675,779
108,470
Accounts payable
52,191
47,136
7,566
Bills payable
28,379
15,000
2,408
Other payables and accrued liabilities
565,827
471,603
75,697
Total current liabilities
1,462,547
1,209,518
194,141
Long-term borrowings, excluding current portion
-
2,000
321
Deferred tax liabilities
46,248
56,120
9,008
Other liabilities
31,625
32,657
5,242
Total liabilities
1,540,420
1,300,295
208,712
Shareholders' equity
Simcere shareholders' equity
Ordinary shares at par
8,532
8,258
1,326
Additional paid-in capital
954,750
853,551
137,004
Accumulated other comprehensive loss
(104,608)
(104,147)
(16,717)
Retained earnings
1,197,507
1,254,464
201,355
Total equity attributable to Simcere
2,056,181
2,012,126
322,968
Noncontrolling interest
137,516
60,242
9,670
Total shareholders' equity
2,193,697
2,072,368
332,638
Commitments and contingencies
Total liabilities and shareholders' equity
3,734,117
3,372,663
541,350
Note: The conversions of Renminbi (RMB) into United States dollars (USD) as at the reporting dates are based on the noon buying rate of USD1.00 = RMB6.2301 on December 31, 2012 as set forth in the H. 10 statistical release of the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on the reporting dates.
SOURCE Simcere Pharmaceutical Group