Tongjitang Chinese Medicines Company, a leading specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, announced that for the twelve months ended December 31, 2008, its revenues have decreased by 24.3%, to $66.1 million, from RMB596.0 million for the full year 2007

 

In a press release the company said, during this same time period, gross profit decreased by 27.3% to $41.6 million from RMB390.0 million. Gross margin for the full year 2008 was 62.9%, compared with 65.4% in the year before. Loss from operations was $11.4 million, compared with income from operations of RMB120.9 million in the full year 2007, and net loss was $7.7 million, or $0.06 per share, compared with net income of RMB171.2 million, or RMB1.35 per share, for the full year 2007. Net loss per ADS was $1.56 for the year ended December 31, 2008. On a year over year basis, the weighted average number of shares outstanding in the full year 2008 increased by 8.3% to 134.8 million.

Additionally, Tongjitang recognized $14.8 million of asset impairments related to intangible assets and goodwill, and $3 million of share-based compensation expenses in the year of 2008.

As of December 31, 2008, Tongjitang had cash and cash equivalents of $75.6 million. This compares with RMB579.1 million as of September 30, 2008, and RMB797.8 million as of December 31, 2007.