BEIJING, June 12 CMED-Q4-FY-Results
BEIJING, June 12 /Xinhua-PRNewswire-FirstCall/ -- China Medical
Technologies, Inc. (the "Company") (Nasdaq: CMED), a leading China-based
medical device company that develops, manufactures and markets advanced in-
vitro diagnostic products and high intensity focused ultrasound tumor therapy
system, today announced its unaudited financial results for the fourth quarter
("4Q FY2007") and the full year of the fiscal year ended March 31, 2008
("FY2007").
4Q FY2007 Highlights
-- Revenues increased by 74.3% year-over-year to RMB284.2 million
(US$40.5 million).
-- Non-GAAP adjusted net income, as defined below, increased by 45.5%
year-over-year to RMB133.6 million (US$19.1 million).
-- Non-GAAP adjusted diluted earnings per ADS*, as defined below,
increased by 38.3% year-over-year to RMB4.66 (US$0.66).
FY2007 Highlights
-- Revenues increased by 67.4% year-over-year to RMB915.7 million
(US$130.6 million) exceeding the high end of our targeted range of
RMB885 million.
-- Non-GAAP adjusted net income, as defined below, increased by 39.4%
year-over-year to RMB432.1 million (US$61.6 million) exceeding the
high end of our targeted range of RMB420 million.
-- Non-GAAP adjusted diluted earnings per ADS*, as defined below, were
RMB15.44 (US$2.20) exceeding the high end of our targeted range of
RMB15.10.
-- Cash dividend of US$0.5 per ADS* was declared which increased by
25.0% as compared to cash dividend of US$0.4 per ADS last year.
* One American Depositary Share ("ADS") = 10 ordinary shares
See "Non-GAAP Measure Disclosures" below, where the impact of certain
items on reported results is discussed.
"FY2007 was a landmark year for China Medical Technologies to become an
advanced IVD company," commented Mr. Xiaodong Wu, Chairman and CEO of the
Company. "About 60% of our revenues were generated from both ECLIA and FISH
diagnostic businesses. We expect a higher percentage of our revenues to be
generated from these businesses in FY2008 as our recurring reagent sales
continue to grow rapidly. We successfully launched our FISH business in
FY2007 and have established a direct sales network of selling our FISH
reagents to more than 200 large hospitals in China. We will expand the direct
sales network to cover more than 500 large hospitals in China by the end of
FY2008. We believe that this network will help the Company maintain a close
relationship with a large group of high end hospital consumers in China and
benefit the Company by selling all its products to these hospitals in the long
term."
"We faced challenges upon the launch of our new diagnostic FISH business
and transportation interruption in southern China by the heavy snow storm
during FY2007. We also faced several interest rate reductions which decreased
our interest income as well as the delay in the assessment of hi-tech
enterprise designation for Chinese companies by the PRC government which
increased our income tax expense," commented Mr. Sam Tsang, CFO of the Company.
"Despite these challenges, we managed to exceed our targeted revenues and
adjusted net income which we revised upward in November 2007. These were the
results of our successful execution of our strategies for FISH business and
timely reaction to business interruption caused by natural disaster. Again,
we challenge ourselves by setting new targeted revenues and adjusted net
income for FY2008 which are detailed under "Outlook for FY2008" below.
Besides, I have tried to compare our results and new targets to Thomson First
Call mean which is commonly referred to by our shareholders and investors but
found that there are only two sell-side analysts covering the Company. I
believe it is not in the best interest of our shareholders and potential
investors and have included the task of increasing sell-side analyst coverage
to my task list for FY2008."
4Q FY2007 Financial Results
The Company reported revenues of RMB284.2 million (US$40.5 million) for 4Q
FY2007, representing a 74.3% increase from the corresponding period of FY2006.
The Company's revenues are currently generated from three product lines,
ECLIA diagnostic systems, FISH diagnostic systems and HIFU tumor therapy
systems. ECLIA and FISH system sales include the sales of equipment and
reagent kits.
ECLIA system revenues for 4Q FY2007 were RMB112.2 million (US$16.0
million), representing a 70.3% increase from the corresponding period of
FY2006. The strong year-over-year growth in the ECLIA system revenues
reflected the increasing utilization of ECLIA equipment by hospitals and the
introduction of new reagents, both of which drove increasing demand for
reagent kits.
FISH system revenues for 4Q FY2007 were RMB68.8 million (US$9.8 million).
We launched our FISH systems in 1Q FY2007.
HIFU tumor therapy system revenues for 4Q FY2007 were RMB103.2 million
(US$14.7 million), representing a 6.1% increase from the corresponding period
of FY2006. The year-over-year growth in this sector was driven primarily by
increases in unit sales.
Gross margin decreased to 64.2% for 4Q FY2007 as compared to 73.2% for the
corresponding period of FY2006. The decrease in gross margin was mainly due
to the amortization of FISH intangible assets of RMB17.5 million (US$2.5
million) which resulted in a 6.2% decrease in gross margin. In addition, FISH
equipment sales generated lower gross margin. However, FISH reagent sales
generate recurring revenue and higher gross margin for the Company. The rapid
growth in FISH reagent sales will improve the gross margin in the future.
Research and development expenses were RMB11.4 million (US$1.6 million)
for 4Q FY2007, representing a 43.5% year-over-year increase. The increase was
primarily due to the development of new ECLIA and FISH reagents.
Sales and marketing expenses were RMB8.2 million (US$1.2 million) for 4Q
FY2007, representing a 52.7% year-over-year increase. The increase was
primarily due to the establishment and expansion of direct sales force and
promotional activities for FISH systems.
General and administrative expenses were RMB16.3 million (US$2.3 million)
for 4Q FY2007, representing a 10.5% year-over-year decrease. The decrease was
primarily due to the decrease in cash bonus for senior management.
Interest income was RMB5.0 million (US$0.7 million) for 4Q FY2007,
representing a 66.8% decrease from the corresponding period of FY2006. The
decrease was primarily due to lower cash balance as a result of payments made
for the FISH and other acquisitions and a decrease in the interest rate for US
dollar bank deposits.
Interest expense of convertible notes was RMB9.4 million (US$1.3 million)
for 4Q FY2007. The notes bear interest at 3.5% per annum.
Interest expense of amortization of convertible notes issuance cost was
RMB1.9 million (US$0.3 million) for 4Q FY2007.
Other interest expense of RMB1.3 million (US$0.2 million) for 4Q FY2007
was primarily due to the present value discounting of long term other payable
of US$10 million for the final payment of FISH acquisition due in March 2009.
Income tax expense was RMB33.7 million (US$4.8 million) for 4Q FY2007.
The effective tax rate for 4Q FY2007 was 24.3% primarily due to the increase
in income tax rate from 10% to the transitional rate of 18% in connection with
the New Law effective in January 2008 as well as certain non-deductible
expenses for income tax.
The China Unified Corporate Income Tax Law (the "New Law") became
effective on January 1, 2008. The New Law established a single unified 25%
income tax rate for most companies with some preferential income tax rates
including 15% income tax rate to be applicable to qualified hi-tech
enterprises. The related detailed implementation rules and regulations on the
definition of various terms and the interpretation and application of the
provisions of the New Law were promulgated by the State Council in December
2007 and April 2008. However, the application for hi-tech enterprise under
the New Law is pending for the implementation by the relevant government
authorities. Before the approval of hi-tech enterprise, the Company is
required to pay income tax in accordance with the transitional income tax
arrangement where the income tax rate is 18% in 2008 and 20% in 2009. The
Company believes that it meets the criteria of hi-tech enterprise under the
New Law and is ready to make the application when the government authorities
commence the process.
Net income was RMB105.2 million (US$15.0 million) for 4Q FY2007,
representing a 25.7% increase from the corresponding period of FY2006.
Adjusted net income excluding stock compensation expense and amortization
of acquired intangible assets (non-GAAP) was RMB133.6 million (US$19.1 million)
for 4Q FY2007, representing a 45.5% increase from the corresponding period of
FY2006. The lower growth rate compared to net revenues was primarily due to
convertible note expenses of RMB11.3 million (US$1.6 million), a decrease in
interest income and an increase in effective income tax rate.
Stock compensation expense for 4Q FY2007 was RMB4.7 million (US$0.7
million), which was allocated to research and development expenses (RMB1.7
million) and general and administrative expenses (RMB3.0 million),
respectively.
Amortization of acquired intangible assets for 4Q FY2007 was RMB23.7
million (US$3.4 million), which was allocated to cost of revenues.
As of March 31, 2008, the Company's cash balance was RMB682.7 million
(US$97.4 million).
As of March 31, 2008, the Company's accounts receivable was RMB289.8
million (US$41.3 million), representing an increase of 14.4% from the balance
at December 31, 2007. Accounts receivable turnover days were 114 days in this
quarter compared to 115 days in previous quarter.
FY2007 Financial Results
Revenues were RMB915.7 million (US$130.6 million) for FY2007, representing
a 67.4% year-over-year increase. The targeted revenues for FY2007 ranged from
RMB860 million to RMB885 million which were revised upward in November 2007.
ECLIA system revenues for FY2007 were RMB380.5 million (US$54.3 million),
representing a 76.5% year-over-year increase. FISH system revenues for FY2007
were RMB166.9 million (US$23.8 million) after the launch of our FISH systems
in 1Q FY2007. HIFU tumor therapy system revenues for FY2007 were RMB368.3
million (US$52.5 million), representing a 11.1% year-over-year increase.
Gross margin decreased to 62.2% for FY2007 as compared to 72.3% for FY2006
primarily due to similar reasons for 4Q FY2007. During FY2007, quarterly
gross margin showed improvement in 3Q FY2007 and 4Q FY2007 which were 63.2%
and 64.2% respectively primarily due to increasing sales of FISH reagents.
Research and development expenses were RMB40.9 million (US$5.8 million)
for FY2007, representing a 29.9% year-over-year increase. The increase was
primarily due to the development of new ECLIA and FISH reagents.
Sales and marketing expenses were RMB29.1 million (US$4.2 million) for
FY2007, representing a 59.3% year-over-year increase. This increase was
primarily due to the establishment and expansion of direct sales force for
FISH systems and promotional activities for both ECLIA and FISH systems.
General and administrative expenses were RMB75.4 million (US$10.8 million)
for FY2007, representing a 36.2% year-over-year increase primarily due to an
increase in headcount to meet the expansion of the Company's operations and
stock compensation expense arising from the grant of restricted stock and
stock options in June 2007.
Other income was RMB3.1 million (US$0.4 million) for FY2007, which was
primarily due to government grants.
Interest income was RMB28.6 million (US$4.1 million) for FY2007,
representing a 31.7% year-over-year decrease. The decrease was primarily due
to lower cash balance as a result of payments made for the FISH and other
acquisitions and a decrease in interest rate for US dollar bank deposits.
Interest expense of convertible notes was RMB39.1 million (US$5.6 million)
for FY2007. The notes bear interest at 3.5% per annum and were issued in
November 2006.
Interest expense of amortization of convertible notes issuance cost was
RMB7.9 million (US$1.1 million) for FY2007.
Other interest expense of RMB5.2 million (US$0.7 million) for FY2007 was
due to the present value discounting of long term other payable of US$10
million for the final payment of FISH acquisition due in March 2009.
Income tax expense was RMB78.2 million (US$11.2 million) for FY2007. The
effective tax rate for FY2007 was 19.4% primarily due to the increase in
income tax rate from 10% to the transitional rate of 18% in connection with
the New Law effective in January 2008 as well as certain non-deductible
expenses for income tax.
Net income was RMB325.2 million (US$46.4 million) for FY2007, representing
a 12.3% year-over-year increase.
Adjusted net income excluding stock compensation expense and amortization
of acquired intangible assets (non-GAAP) was RMB432.1 million (US$61.6 million)
for FY2007, representing a 39.4% year-over-year increase. The targeted
adjusted net income for FY2007 ranged from RMB410 million to RMB420 million
which were revised upward in November 2007.
Stock compensation expense for FY2007 was RMB16.7 million (US$2.4 million),
which was allocated to research and development expenses (RMB2.8 million) and
general and administrative expenses (RMB13.9 million), respectively. The
Company approved the grant of 3,560,000 restricted stock, equivalent to
356,000 ADS to certain directors, officers and employees on June 6, 2008 which
was approximately 1.3% of the issued shares. The restricted stock vests over
a period of three years.
Amortization of acquired intangible assets for FY2007 was RMB90.2 million
(US$12.9 million), which was allocated to cost of revenues.
For the convenience of readers, certain RMB amounts have been translated
into U.S. dollars at the rate of RMB7.012 to US$1.00, the noon buying rate in
New York City for cable transfers of RMB per U.S. dollar as certified for
customs purposes by the Federal Reserve Bank of New York, as of Monday, March
31, 2008.
Cash Dividend
The Board of Directors has declared a cash dividend on its ordinary shares
of US$0.05 per share, equivalent to US$0.5 per ADS based on the Company's net
income for FY2007. The cash dividend will be paid on or around August 28,
2008 to shareholders of record as of July 25, 2008.
Outlook for FY2008
The Company's reagent businesses from both ECLIA and FISH systems will
drive the growth of the Company for FY2008 despite the decline in equipment
sales of the two systems. The Company has introduced the reagent rental
arrangement for our ECLIA system so that qualified hospitals can use the
Company's ECLIA equipment free of charge but have to purchase the Company's
ECLIA reagents. The Company expects the arrangement to expand the penetration
of its ECLIA equipment to more hospitals especially high end and low end
hospitals. Regarding FISH system, the Company does not manufacture the
microscopes used for observing the results of FISH tests. The Company
purchases the microscopes and sells them to hospitals. Recently, the Company
has referred the hospitals to purchase the microscopes directly from the
manufacturers so that hospitals can reduce the cost of setting up this new
diagnostic platform and expedite the commencement of this diagnostic service
to patients. As a result, more hospitals will use the Company's FISH reagents
faster and drive the growth of the FISH reagent revenue. Both ECLIA and FISH
reagent sales are recurring in nature and generate high gross margin for the
Company.
The targeted net revenues for the fiscal year ending March 31, 2009 are
expected to be between RMB1,190 million (US$169.7 million) and RMB1,230
million (US$175.4 million), representing a year-over-year increase of 30.0% -
34.3%.
The targeted adjusted net income excluding stock compensation expense and
amortization of acquired intangible assets (non-GAAP) for the fiscal year
ending March 31, 2009 are expected to be between RMB585 million (US$83.4
million) and RMB605 million (US$86.3 million), representing a year-over-year
increase of 35.4% - 40.0%.
The targeted adjusted diluted EPS excluding stock compensation expense and
amortization of acquired intangible assets (non-GAAP) for the fiscal year
ending March 31, 2009 is expected to be between RMB20.10 (US$2.87) and
RMB20.73 (US$2.96) assuming a diluted number of ADS of about 31.5 million and
excluding interest for convertible notes and amortization of convertible notes
issuance cost, representing a year-over-year increase of 30.1% - 34.3%.
The above targets are based on the Company's current views on the
operating and marketing conditions which are subject to change.
Non-GAAP Measure Disclosures
To supplement its consolidated financial statements presented in
accordance with United States Generally Accepted Accounting Principles
("GAAP"), the Company uses non-GAAP measures of adjusted net income and
adjusted earnings per ADS, which are adjusted from results based on GAAP to
exclude the impact of stock compensation expense and amortization of acquired
intangible assets. Non-GAAP financial measures are used by the Company in
their financial and operating decision-making because management believes they
reflect the Company's ongoing business in a manner that allows meaningful
period-to-period comparison. The Company's management believes that these
non-GAAP financial measures provide useful information to investors and others
in understanding and evaluating the Company's current operating performance
and future prospects in the same manner as management does, if they so choose.
The Company's management also believes the non-GAAP financial measures are
useful for itself and investors because it makes more meaningful comparisons
of the Company's current results of operations to those of prior periods.
The Company's management believes excluding the non-cash stock
compensation expense from its non-GAAP financial measures is useful for itself
and investors as such expense will not result in future cash payment and is
otherwise unrelated to the Company's core operating results.
The Company's management believes excluding the non-cash amortization
expense of acquired intangible assets resulting from acquisitions from its
non-GAAP financial measures is useful for itself and investors because they
enable a more meaningful comparison of the Company's performance between
reporting periods. In addition, such amortization will not result in cash
settlement in the future.
The presentation of this additional financial information is not intended
to be considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. For a reconciliation of the
non-GAAP financial measures to the most directly comparable GAAP financial
measure, please see the financial statements included with this press release.
Conference Call
The Company's management team will host a conference call at 8:00 a.m.
Eastern Time on June 12, 2008 (or 8:00 p.m. Beijing/Hong Kong time on the same
date) to discuss the results following this earnings announcement.
The dial-in details for the live conference call are as follows:
-- U.S. Toll Free Number 1-800-260-8140
-- International dial-in number 1-617-614-3672
Passcode CMEDCALL.
A live webcast of the conference call will be available on
http://ir.chinameditech.com .
A replay of this webcast will be available for one month on this website.
A telephone replay of the call will be available after the conclusion of
the conference call through 10:00 a.m. Eastern Time on June 13, 2008.
The dial-in details for the replay are as follows:
-- U.S. Toll Free Number 1-888-286-8010
-- International dial-in numbers 1-617-801-6888
Passcode 52979476
About China Medical Technologies, Inc.
China Medical Technologies is a leading China-based medical device company
that develops, manufactures and markets advanced in-vitro diagnostic products
using Enhanced Chemiluminescence (ECLIA) technology and Fluorescent in situ
Hybridization (FISH) technology, to detect and monitor various diseases and
disorders, and system using High Intensity Focused Ultrasound (HIFU) for the
treatment of solid cancers and benign tumors. For more information, please
visit http://www.chinameditech.com .
Safe Harbor Statement
This press release contains forward-looking statements. These statements
constitute "forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and 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 "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar statements.
Among other things, the quotations from management in this press release, the
Company's strategic operational plans, as well as outlook for FY2008, contain
forward-looking statements. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements. Further information regarding these and
other risks is included in the Company's filings with the U.S. Securities and
Exchange Commission, including its annual report on Form 20-F. The Company
does not undertake any obligation to update any forward-looking statement as a
result of new information, future events or otherwise, except as required
under applicable law.
China Medical Technologies, Inc.
Unaudited Condensed Consolidated Balance Sheets
As of
March 31, December
2007 31, 2007 March 31, 2008
RMB RMBRMBUS$
(in thousands)
Assets
Current assets
Cash and cash equivalents1,173,640950,311 682,679 97,359
Trade accounts receivable 201,778253,186 289,751 41,322
Prepayments and other
receivables41,484 38,123 27,845 3,971
Inventories 27,991 31,858 27,834 3,969
Total current assets 1,444,893 1,273,478 1,028,109146,621
Property, plant and
equipment, net135,792152,027 164,499 23,460
Land use rights 7,619 7,478 7,430 1,060
Goodwill-- -- 8,654 1,234
Intangible assets, net 1,565,362 1,425,519 1,541,793219,879
Prepayments and other
receivables--298,605 154,264 22,000
Convertible notes
issuance costs 38,020 30,086 27,055 3,858
Deferred income taxes 542 -- -- --
Total assets 3,192,228 3,187,193 2,931,804418,112
Liabilities
Current liabilities
Trade accounts payable 47,847 47,739 48,040 6,851
Accrued liabilities
and other payables594,489503,200 238,580 34,025
Income taxes38,467 51,152 69,499 9,911
Total current
liabilities 680,803602,091 356,119 50,787
Convertible notes1,158,480 1,094,190 1,051,800150,000
Other payable - long term 67,206 67,265 -- --
Deferred income taxes --202 1,124160
Total liabilities1,906,489 1,763,748 1,409,043200,947
Shareholders' equity
Ordinary shares US$0.1
par value: 500,000,000
authorized; 273,600,001
issued and outstanding as
of March 31, 2007,
274,066,661 issued and
outstanding as of
December 31, 2007 and
March 31, 2008225,125225,473 225,473 32,155
Additional paid-in
capital 504,795521,596 526,264 75,052
Accumulated other
comprehensive loss(21,335) (37,481)(48,046)(6,852)
Retained earnings 577,154713,857 819,070116,810
Total shareholders'
equity 1,285,739 1,423,445 1,522,761217,165
Total liabilities
and shareholders'
equity 3,192,228 3,187,193 2,931,804418,112
Note:
The Company has performed preliminary purchase price allocation after
completion of acquisition in Beijing Bio-Ekon Biotechnology Co., Ltd. in
January 2008. The Company will finalize the purchase price allocation as soon
as practicable.
China Medical Technologies, Inc.
Unaudited Condensed Consolidated Statements of Income
For the Three Months Ended
March 31, December 31,
2007 2007March 31, 2008
RMB RMB RMB US$
(in thousands except for per ADS information)
Revenues (1) 163,103 265,133 284,219 40,533
Cost of revenues (43,766) (97,643)(101,742) (14,510)
Gross profit 119,337 167,490 182,477 26,023
Operating expenses:
Research and
development (7,960) (11,577) (11,423) (1,629)
Sales and marketing (5,395) (8,490) (8,236) (1,175)
General and
administrative (18,259) (24,154) (16,347) (2,331)
Total operating
expenses(31,614) (44,221) (36,006) (5,135)
Operating income 87,723 123,269 146,471 20,888
Other income 2,300 3,033 -- --
Interest income 15,143 7,1365,034 718
Interest expense -
convertible notes (10,183) (9,755) (9,396) (1,340)
Interest expense -
amortization of
convertible notes
issuance cost(2,064) (1,978) (1,905)(272)
Interest expense -
other--(1,181) (1,299)(185)
Income before income
tax 92,919 120,524 138,905 19,809
Income tax expense(9,194) (22,723) (33,692) (4,805)
Net income83,72597,801 105,213 15,004
Earnings per ADS
- basic3.20 3.73 4.01 0.57
- diluted (2) 3.11 3.52 3.74 0.53
Weighted average
number of ADS
- basic 26,196,30826,238,264 26,242,974 26,242,974
- diluted (2) 30,882,90131,080,129 31,116,665 31,116,665
Notes:
(1) Revenues
- ECLIA 65,87996,663 112,221 16,004
- FISH--52,831 68,8279,816
- HIFU97,224 115,639 103,171 14,713
163,103 265,133 284,219 40,533
For the Years Ended
March 31,
2007 March 31, 2008
RMB RMB US$
(in thousands except for per ADS information)
Revenues (1) 546,970 915,738 130,596
Cost of revenues (151,614) (346,436)(49,406)
Gross profit 395,356 569,302 81,190
Operating expenses:
Research and development (31,469)(40,875) (5,829)
Sales and marketing (18,264)(29,099) (4,150)
General and administrative(55,352)(75,376)(10,750)
Total operating expenses (105,085) (145,350)(20,729)
Operating income 290,271 423,952 60,461
Other income6,024 3,133 447
Interest income41,970 28,649 4,086
Interest expense - convertible notes (15,342)(39,149) (5,583)
Interest expense - amortization of
convertible notes issuance cost (3,111) (7,937) (1,132)
Interest expense - other -- (5,229) (746)
Income before income tax 319,812 403,419 57,533
Income tax expense(30,094)(78,197)(11,152)
Net income289,718 325,222 46,381
Earnings per ADS - basic 10.76 12.401.77
- diluted (2) 10.74 11.991.71
Weighted average number of ADS 26,923,217 26,221,900 26,221,900
- basic
- diluted (2) 28,697,979 31,039,668 31,039,668
Notes:
(1) Revenues
- ECLIA 215,550 380,520 54,267
- FISH-- 166,901 23,802
- HIFU 331,420 368,317 52,527
546,970 915,738 130,596
Notes:
(2) In computing diluted earnings per ADS for the three months and full
year of the fiscal year ended March 31, 2008, interest expense and
amortization in connection with convertible notes were added back to net
income before dividing net income by the diluted number of ADS, which included
shares that may be issued from the conversion of convertible notes.
China Medical Technologies, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
For the Years Ended
March 31,
2007 March 31, 2008
RMB RMBUS$
(in thousands)
Net cash provided by
operating activities 360,999 463,334 66,077
Net cash used in investing
activities (884,455) (831,551)(118,589)
Net cash provided by (used
in) financing activities 871,554 (86,149) (12,286)
Effect of foreign currency
exchange rate change on cash (18,249) (36,595) (5,219)
Net increase (decrease) in
cash and cash equivalents329,849 (490,961) (70,017)
Cash and cash equivalents:
At beginning of year 843,791 1,173,640 167,376
At end of year 1,173,640 682,679 97,359
China Medical Technologies, Inc.
Reconciliations of Non-GAAP Adjusted Net Income to GAAP Net Income
For the Three Months Ended
March 31, December 31,
20072007 March 31, 2008
RMB RMB RMB US$
(in thousands except for per ADS information)
GAAP net income 83,725 97,801 105,213 15,004
Adjustments:
Stock compensation
expense311 5,074 4,669 666
Amortization of
acquired intangible
assets 7,747 21,87623,7003,380
Non-GAAP adjusted
net income 91,783 124,751 133,582 19,050
GAAP earnings per
ADS
- basic3.203.73 4.01 0.57
- diluted 3.113.52 3.74 0.53
Non-GAAP adjusted
earnings per ADS
- basic3.504.75 5.10 0.73
- diluted 3.374.39 4.66 0.66
Weighted average
number of ADS
- basic 26,196,308 26,238,26426,242,974 26,242,974
- diluted30,882,901 31,080,12931,116,665 31,116,665
For the Years Ended
March 31,
2007 March 31, 2008
RMB RMB US$
(in thousands except for per ADS information)
GAAP net income 289,719 325,222 46,381
Adjustments:
Stock compensation expense 1,278 16,660 2,376
Amortization of acquired intangible
assets18,935 90,233 12,868
Non-GAAP adjusted net income 309,932 432,115 61,625
GAAP earnings per ADS
- basic 10.76 12.401.77
- diluted 10.74 11.991.71
Non-GAAP adjusted earnings per ADS
- basic 11.51 16.482.35
- diluted 11.44 15.442.20
Weighted average number of ADS
- basic26,923,217 26,221,900 26,221,900
- diluted 28,697,979 31,039,668 31,039,668
Note:
(1) In computing diluted GAAP and non-GAAP earnings per ADS for the three
months ended and full year of the fiscal year ended March 31, 2008, interest
expense and amortization in connection with convertible notes were added back
to GAAP and non-GAAP net income, respectively, before dividing the GAAP and
non-GAAP net income by the diluted number of ADS, which included shares that
may be issued from the conversion of convertible notes.
For more information, please contact:
Sam Tsang
Tel: +86-10-6530-8833
Email: IR@chinameditech.com
SOURCE China Medical Technologies, Inc.
