SHANGPHARMA CORP (ADR) 
By SHANGHAI, March 15, 2011 /PRNewswire-Asia/ -- ShangPharma Corporation (NYSE: SHP) ("ShangPharma" or the "Company"), a leading China-based pharmaceutical and biotechnology research and development outsourcing company, today announced its financial results for its fourth quarter and the fiscal year ended December 31, 2010.
To help management and investors gain a better understanding of ShangPharma's operating performance, the Company presents certain non-GAAP measures, each of which excludes IPO bonuses and expenses relating to or the effect of share-based compensation. See "About Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Data" below for more information about the non-GAAP financial measures included in this press release.
Fourth Quarter 2010 Highlights
-- Net revenues increased by 29.4% year-over-year to $25.6 million, driven
by a 17.5% increase in full-time-equivalent ("FTE") services and a 67.9%
increase in fee-for-service-based services.
-- GAAP gross profit increased by 28.1% year-over-year to $8.3 million.
GAAP gross margin was 32.3%, down from 32.6% in the fourth quarter of
2009.
-- Non-GAAP gross profit increased by 35.3% year-over-year to $8.8 million.
Non-GAAP gross margin was 34.4%, up from 32.9% in the fourth quarter of
2009.
-- GAAP profit from operations decreased 65.7% year-over-year to $0.9
million, primarily due to higher share-based compensation expenses. GAAP
operating margin was 3.6%, down from 13.5% in the fourth quarter of
2009.
-- Non-GAAP profit from operations increased by 54.2% year-over-year to
$4.3 million. Non-GAAP operating margin was 16.7%, up from 14.0% in the
fourth quarter of 2009.
-- GAAP net income slightly increased 1.3% year-over-year to $2.5 million.
GAAP diluted earnings per ADS were $0.14, compared to $0.16 in the
fourth quarter of 2009, primarily due to higher share-based compensation
expenses.
-- Non-GAAP net income increased by 126.2% year-over-year to $5.9 million.
Non-GAAP diluted earnings per ADS were $0.32, compared to $0.17 in the
fourth quarter of 2009.
Full Year 2010 Highlights
-- Net revenues increased by 24.9% year-over-year to $90.3 million,
supported by a 15.5% increase in FTE services and 59.0% rise in
fee-for-service-based services.
-- Average revenue per customer for the top-10 customers increased to $5.7
million, compared with $4.7 million in 2009.
-- Total number of customers leapt to 237, up from 134 in 2009.
-- GAAP gross profit increased by 26.2% year-over-year to $30.1 million.
GAAP gross margin was 33.4%, up from 33.0% in 2009.
-- Non-GAAP gross profit increased by 29.5% year-over-year to $31.1
million. Non-GAAP gross margin was 34.5%, up from 33.2% in 2009.
-- GAAP profit from operations increased by 1.4% year-over-year to $10.4
million. GAAP operating margin was 11.5%, down from 14.2% in 2009,
primarily due to higher share-based compensation expenses.
-- Non-GAAP profit from operations increased by 36.9% year-over-year to
$14.4 million. Non-GAAP operating margin was 15.9%, up from 14.5% in
2009.
-- GAAP net income increased by 32.6% year-over-year to $13.0 million. GAAP
diluted earnings per ADS were $0.78, compared to $0.63 in 2009.
-- Non-GAAP net income increased by 68.9% year-over-year to $17.0 million.
Non-GAAP diluted earnings per ADS were $1.07, compared to $0.65 in 2009.
Management Comment
Michael Xin Hui, founder and Chief Executive Officer of ShangPharma, commented, "We are pleased to report solid results for the fourth quarter and fiscal year 2010. All of our businesses contributed to the strong results, which saw growth accelerate from the prior year. Our continued efforts to expand our spectrum of services resulted in a significant increase in our customer base and greater spending levels from our top-10 customers. We continue to invest in new state-of-the art manufacturing facilities and recently completed the construction of the first phase of our new c-GMP-quality multi-purpose facility in Fengxian, which focuses on pharmaceutical development services. We also made good progress on biologics services as we signed a major deal with a leading global pharmaceutical company. In addition, we expect our enhanced platform of integrated services to support our overall revenue growth and margin expansion in the future.
It is well known that the global pharmaceutical industry is facing numerous challenges which have caused many companies to reevaluate their R&D strategies and internal programs. Going forward, we remain optimistic about the CRO industry in China as it possesses a combination of high quality and low cost solutions for pharmaceutical R&D. ShangPharma is well-positioned to capitalize on this trend given our talented team of scientists, our focus on exceptional quality and our broad range of services that we continue to expand in response to market dynamics. Our 2010 results illustrate the growing demand for our offerings among the leading companies in the world. We expect this to continue in 2011 and beyond."
William Dai, Chief Financial Officer, added, "We achieved excellent profit growth for the quarter and the year just completed due to an acceleration in sequential revenue growth and our continued focus on improving operational efficiency. Our internal efforts to drive significant margin expansion on a non-GAAP basis helped mitigate the continued appreciation of the Renminbi and wage inflation. In 2011, we expect to continue to benefit from our efficiency programs to offset these rising costs and preserve margins."
Fourth Quarter 2010 Results
Net revenues were $25.6 million, an increase of 29.4% from $19.8 million in the fourth quarter of 2009, primarily due to a larger customer base, higher business volumes from the Company's top customers, expanded service offering, higher average FTE rates and a favorable shift in the service mix.
Net revenues from full-time-equivalent ("FTE")-based services were $17.8 million, an increase of 17.5% from $15.1 million in the fourth quarter of 2009, primarily due to an increase in FTE numbers and higher FTE rates.
Net revenues from fee-for-service-based services were $7.8 million, an increase of 67.9% from $4.7 million in the fourth quarter of 2009, primarily driven by the Company's newer service offerings including discovery biology, preclinical development and pharmaceutical development services. The majority of these newer offerings are fee-for-service-based. The higher growth in fee-for-service-based revenues reflects the Company's ability to cross-sell newer services to existing customers as well as strong demand from new customers.
Gross profit was $8.3 million, an increase of 28.1% from $6.5 million in the fourth quarter of 2009, primarily due to the increase in revenues, favorable service mix, operational efficiency improvement and efficient material usage. The increase was partially offset by the continued appreciation of the Renminbi and higher share-based compensation expenses.
Non-GAAP gross profit was $8.8 million, an increase of 35.3% from $6.5 million in the fourth quarter of 2009, primarily due to the increase in revenues, favorable service mix, operational efficiency improvement and efficient material usage. The increase was partially offset by the continued appreciation of the Renminbi.
Gross margin decreased slightly to 32.3% from 32.6% in the fourth quarter of 2009. The favorable service mix, operational efficiency improvement and efficient material usage were primarily offset by continued Renminbi appreciation and higher share-based compensation expenses.
Non-GAAP gross margin increased to 34.4% from 32.9% in the fourth quarter of 2009, primarily due to the favorable service mix, operational efficiency improvement and efficient material usage. The rise was partially offset by continued Renminbi appreciation.
Operating expenses (selling, marketing, general and administrative) were $7.3 million, an increase of 94.5% from $3.8 million in the fourth quarter of 2009, primarily due to higher share-based compensation expenses including the one-time restricted share unit ("RSU") costs of approximately $2.2 million that were incurred upon completion of the Company's initial public offering and a build-up of corporate managerial, sales and supporting infrastructure.
Non-GAAP operating expenses were $4.6 million, an increase of 21.3% from $3.8 million in the fourth quarter of 2009, primarily due to a build-up of corporate managerial, sales and supporting infrastructure.
Profit from operations was $0.9 million, a decrease of 65.7% from $2.7 million in the fourth quarter of 2009, primarily due to higher share-based compensation expenses and a continuous build-up of corporate managerial, sales and supporting infrastructure. The decline was partially offset by the increase in gross profit.
Non-GAAP profit from operations was $4.3 million, an increase of 54.2% from $2.8 million in the fourth quarter of 2009, primarily due to higher gross profit and better cost control over selling, general and administrative expenses.
Operating margin declined to 3.6% from 13.5% in the fourth quarter of 2009. The favorable service mix, operational efficiency improvement and efficient material usage were offset by higher share-based compensation expenses and continued Renminbi appreciation.
Non-GAAP operating margin increased to 16.7% from 14.0% in the fourth quarter of 2009, primarily due to favorable service mix, operational efficiency improvement and efficient material usage. The rise was partially offset by continued Renminbi appreciation.
Net income slightly increased 1.3% year-over-year to $2.5 million. The lower profit from operations was offset by higher other income, including a mark-to-market gain on foreign exchange forward contracts, income from government grants and investment income.
Non-GAAP net income was $5.9 million, an increase of 126.2% from $2.6 million in the fourth quarter of 2009, primarily due to higher profit from operations and higher other income.
Diluted earnings per ADS were $0.14, a decrease of 12.5% from $0.16 in the fourth quarter of 2009.
Non-GAAP diluted earnings per ADS were $0.32, an increase of 88.2% from $0.17 in the fourth quarter of 2009.
Fiscal Year 2010 Results
Net revenues were $90.3 million, an increase of 24.9% from $72.3 million in 2009, primarily due to a larger customer base, higher business volumes from the Company's top customers, expanded service offering, higher average FTE rates and a favorable shift in the service mix.
Net revenues from FTE-based services were $65.4 million, an increase of 15.5% from $56.6 million in 2009, primarily due to higher FTE numbers and higher FTE rates.
Net revenues from fee-for-service-based services were $24.9 million, an increase of 59.0% from $15.7 million in 2009, primarily due to rapid growth from newer offerings, including discovery biology, preclinical development and pharmaceutical development services, most of which are fee-for-service-based projects.
Gross profit was $30.1 million, an increase of 26.2% from $23.9 million in 2009. The improvement primarily resulted from the increase in revenues, favorable service mix, efficient material usage and operational efficiency improvement, and was partially offset by continued appreciation of the Renminbi and higher share-based compensation expenses.
Non-GAAP gross profit was $31.1 million, an increase of 29.5% from $24.0 million in 2009, primarily due to the increase in revenues, favorable service mix, efficient material usage and operational efficiency improvement. The increase was partially offset by continued appreciation of the Renminbi.
Gross margin increased to 33.4% from 33.0% in 2009, primarily due to the favorable service mix, efficient material usage and operational efficiency improvement. The increase was partially offset by continued appreciation of the Renminbi and higher share-based compensation expenses.
Non-GAAP gross margin increased to 34.5% from 33.2% in 2009, primarily due to the favorable service mix, efficient material usage and operational efficiency improvement. The rise was partially offset by continued appreciation of the Renminbi.
Operating expenses (selling, marketing, general and administrative) were $19.7 million, an increase of 45.0% from $13.6 million in 2009, primarily due to higher share-based compensation including the one-time RSU costs of approximately $2.2 million that were incurred upon completion of the Company's initial public offering and a build-up of corporate managerial, sales and supporting infrastructure.
Non-GAAP operating expenses were $16.7 million, an increase of 23.7% from $13.5 million in 2009, primarily due to a continuing build-up of corporate managerial, sales and supporting infrastructure.
Profit from operations was $10.4 million, an increase of 1.4% from $10.2 million in 2009. The higher gross profit was offset by the increase of share-based compensation expenses and a build-up of corporate managerial, sales and supporting infrastructure.
Non-GAAP profit from operations was $14.4 million, an increase of 36.9% from $10.5 million in 2009, primarily due to higher gross profits and better cost control over selling, general and administrative expenses.
Operating margin declined to 11.5% from 14.2% in 2009. The favorable service mix, efficient material usage and operational efficiency improvement were offset by higher share-based compensation and continued appreciation of the Renminbi.
Non-GAAP operating margin increased to 15.9% from 14.5% in 2009, primarily due to the favorable service mix, efficient material usage and operational efficiency improvement. The rise was partially offset by the continued appreciation of the Renminbi.
Net income was $13.0 million, an increase of 32.6% from $9.8 million in 2009. The lower profit from operations was offset by higher other income, including a mark-to-market gain on foreign exchange forward contracts and income from government grants.
Non-GAAP net income was $17.0 million, an increase of 68.9% from $10.1 million in 2009, primarily due to higher profit from operations and higher other income.
Diluted earnings per ADS were $0.78, an increase of 23.8% from $0.63 in 2009.
Non-GAAP diluted earnings per ADS were $1.07, an increase of 64.6% from $0.65 in 2009.
Financial Position
As of December 31, 2010, the Company had cash and cash equivalents of $49.2 million and short term debt of $0.8 million. The cash balance included $44.3 million in net proceeds from the Company's initial public offering in October 2010.
Full Year 2011 Guidance
For the full year 2011, the Company expects:
-- Net revenues to be approximately $111.1 - $115.6 million, which
represents growth of approximately 23.0% - 28.0% compared with full year
2010.
-- Non-GAAP gross margin to be approximately 33.5% - 35.5%, which is within
the same range as non-GAAP gross margin of 34.5% in 2010.
-- Capital expenditure to be $28 - $32 million, including $6 million
rolling payment lag impact carried forward from 2010.
This reflects the Company's current view and is subject to change.
Conference Call
ShangPharma will host a conference call and live webcast at 8 am Eastern Daylight Time (EDT) on March 15, 2011 (8 pm Beijing time on March 15, 2011).
The dial-in details for the live conference call are as follows:
- U.S. Toll Free Number: 1 800 299 9630
- International Dial-in
Number: 1 617 786 2904
-Mainland China Toll Free
Numbers: 10 800 152 1490 (North)
10 800 852 1490 (South)
-Hong Kong Toll Free
Number: 800 963 844
Conference ID: SHP
A live and archived webcast of the conference call will be available on the Investor Relations section of ShangPharma's website at www.shangpharma.com
A telephone replay of the call will be available for seven days, beginning two hours after the conclusion of the conference call from March 15, 2011 to March 22, 2011.
The dial-in details for the replay are as follows:
- U.S. Toll Free Number: 1 888 286 8010
- International Dial-in
Number: 1 617 801 6888
Conference ID: 85666096
ABOUT SHANGPHARMA CORPORATION
ShangPharma Corporation (NYSE: SHP) is a leading China-based contract research organization providing high quality and cost-effective services for the pharmaceutical and biotechnology industry. It offers a broad range of high-quality, integrated services across the drug discovery and development process to help international and Chinese pharmaceutical and biotechnology companies discover and develop novel drug candidates efficiently. ShangPharma's services consist of discovery chemistry, discovery biology and preclinical development, pharmaceutical development and biologics services. For more information, please visit www.shangpharma.com.
Safe Harbor: Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" or other similar expressions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Among other things, the section titled "Full Year 2011 Guidance" and quotations from management in this press release, as well as the Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements and are subject to change, and such change may be material and may have a material adverse effect on the Company's financial condition and results of operations for one or more periods. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements in this press release. The Company expects to face potential risks and uncertainties related to its ability to, among other things, attract, train, motivate and retain skilled scientists; diversify its customer base and adapt to potential loss of sales to, or significant reduction in orders from, any of its major customers; adapt its business to industry trends, such as fluctuations in the R&D budgets of pharmaceutical and biotechnology industry participants; protect the intellectual property rights of its customers; comply with applicable regulations and industry standards; compete effectively in its industry, which may subject it to increasing pricing pressure and reduce the demand for its services; expand and market its services and manage its growth; and develop and maintain effective internal control over financial reporting; as well as other risks outlined in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company does not undertake any obligation to update any such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement the Company's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company uses the following non-GAAP financial measures: (1) gross profit, (2) gross margin, (3) profit from operations, (4) operating expenses, (5) operating margin, (6) net income, and (7) diluted earning per ADS, each of which excludes IPO bonuses and expenses relating to or the effect of share-based compensation. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliation of GAAP and non-GAAP Financial Data" set forth at the end of this press release.
The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding expenses relating to or the effect of share-based compensation and IPO bonuses that may not be indicative of its operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its operating performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. The Company computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP financial measures excluding expenses relating to or the effect of share-based compensation is that these expenses and effects have been and will continue to be significant recurring expenses in the Company's business for the foreseeable future. Management compensates for these limitations by providing specific information regarding the GAAP amount excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliation between non-GAAP financial measures and their most comparable GAAP financial measures.
For further information, please contact:
ShangPharma Corporation
In Shanghai, China
Lan Xie
VP of Finance and Operations
E-mail: IR@shangpharma.com
Christensen
In New York, US
Kimberly Minarovich, +1 917-533-3268
kminarovich@christensenir.com
In Hong Kong
Tip Fleming, +852-9212-0684
tfleming@christensenir.com
SHANGPHARMA CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEET
(in thousands of U.S. dollars, except for ordinary share data)
December December
31, 31,
2009 2010
---- ----
ASSETS
Current assets:
Cash 12,238 49,160
Restricted cash 146 688
Investment in securities 417 -
Accounts receivable, net 14,292 16,908
Inventories 1,145 1,259
Prepayments and other current assets 1,454 4,983
Deferred tax assets 374 315
--- ---
Total current assets 30,066 73,313
Non-current assets:
Property, equipment and software, net 35,725 60,147
Land use right, net 4,178 4,221
Derivative assets - 261
--- ---
Total non-current assets 39,903 64,629
------ ------
Total assets 69,969 137,942
====== =======
LIABILITIES
Current liabilities:
Short-term bank borrowings - 755
Accounts payable 4,717 10,549
Amounts due to related parties 1,787 1,025
Salary and welfare payable 2,991 4,040
Income tax payable 1,589 1,910
Advance from customers 392 1,650
Other payables and accruals 4,014 4,477
----- -----
Total current liabilities 15,490 24,406
------ ------
Total liabilities 15,490 24,406
Commitments and contingencies
Series A convertible preferred shares
(US$0.001 par value; 34,356 -
70,000,650 shares authorized; 69,994,014 and
none issued and
outstanding as of December 31, 2009 and 2010,
respectively
EQUITY
Ordinary shares (US$0.001 par value;
429,999,350 shares authorized; 208 336
208,005,986 and 335,600,000 shares issued and
outstanding as of
December 31, 2009 and 2010, respectively)
Additional paid in capital 321 78,989
Statutory reserves 5,446 6,771
Retained earnings 12,008 23,680
Accumulated other comprehensive income 2,140 3,760
----- -----
Total equity 20,123 113,536
------ -------
Total liabilities and equity 69,969 137,942
====== =======
SHANGPHARMA CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands of U.S. dollars, except for ADS(1) data and per ADS data)
Three months ended
December 31,
2009 2010 % Change
---- ---- --------
Net revenue 19,796 25,609 29.4%
Cost of revenue (13,344) (17,345) 30.0%
------- ------- ----
Gross profit 6,452 8,264 28.1%
Operating expenses
Selling and marketing (539) (703) 30.4%
General and
administrative (3,239) (6,645) 105.2%
------ ------ -----
Total operating expenses (3,778) (7,348) 94.5%
------ ------ ----
Profit from operations 2,674 916 -65.7%
Other income (expenses),
net: 246 2,263 819.9%
--- ----- -----
Income from operations
before income 2,920 3,179 8.9%
taxes
Income taxes (406) (633) 55.9%
---- ---- ----
Net income attributable
to ShangPharma
Corporation 2,514 2,546 1.3%
===== ===== ===
Allocation to preferred
shareholders (633) (108) -82.9%
---- ---- -----
Net income attributable
to ShangPharma
Corporation's ordinary 1,881 2,438 29.6%
shareholders
Net income attributable
to ShangPharma
Corporation's ordinary
shareholders per ADS
Basic 0.16 0.14 -12.5%
Diluted 0.16 0.14 -12.5%
Weighted average ADS
outstanding
Basic 11,555,888 17,257,553
Diluted 11,567,288 17,563,304
Twelve months ended
December 31,
2009 2010 % Change
---- ---- --------
Net revenue 72,285 90,281 24.9%
Cost of revenue (48,433) (60,168) 24.2%
------- ------- ----
Gross profit 23,852 30,113 26.2%
Operating expenses
Selling and marketing (1,609) (2,293) 42.5%
General and
administrative (11,994) (17,429) 45.3%
------- ------- ----
Total operating expenses (13,603) (19,722) 45.0%
------- ------- ----
Profit from operations 10,249 10,391 1.4%
Other income (expenses),
net: 1,102 4,691 325.7%
----- ----- -----
Income from operations
before income 11,351 15,082 32.9%
taxes
Income taxes (1,552) (2,085) 34.3%
------ ------ ----
Net income attributable
to ShangPharma
Corporation 9,799 12,997 32.6%
===== ====== ====
Allocation to preferred
shareholders (2,467) (2,739) 11.0%
------ ------ ----
Net income attributable
to ShangPharma
Corporation's ordinary 7,332 10,258 39.9%
shareholders
Net income attributable
to ShangPharma
Corporation's ordinary
shareholders per ADS
Basic 0.63 0.79 25.4%
Diluted 0.63 0.78 23.8%
Weighted average ADS
outstanding
Basic 11,555,888 12,993,020
Diluted 11,558,738 13,222,233
Note: The unaudited diluted earning per ADS has excluded the effect
of allocation to preferred shareholders in both net income and
weighted average ADS outstanding.
(1) Each ADS represents 18 ordinary shares.
SHANGPHARMA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANACIAL DATA
(in thousands of U.S. dollars, except for ADS(2) data and per ADS data)
Three months ended
December 31,
2009 2010%
---- ----
GAAP gross profit 6,452 8,264 28.1%
GAAP gross margin 32.6% 32.3%
Adjustments:
Share-based compensation 68 557 719.1%
--- --- -----
Non-GAAP gross profit 6,520 8,821 35.3%
Non-GAAP gross margin 32.9% 34.4%
---- ----
GAAP operating expenses (3,778) (7,348) 94.5%
Adjustments:
IPO bonuses - 235
Share-based compensation 27 2,563 9392.6%
--- ----- ------
Non-GAAP operating expenses (3,751) (4,550) 21.3%
------ ------ ----
GAAP profit from operations 2,674 916 -65.7%
GAAP operating margin 13.5% 3.6%
Adjustments:
IPO bonuses - 235
Share-based compensation 95 3,120 3184.2%
--- ----- ------
Non-GAAP profit from
operations 2,769 4,271 54.2%
Non-GAAP operating margin 14.0% 16.7%
---- ----
GAAP net income 2,514 2,546 1.3%
GAAP net margin 12.7% 9.9%
Adjustments:
IPO bonuses - 235
Share-based compensation 95 3,120 3184.2%
--- ----- ------
Non-GAAP net income 2,609 5,901 126.2%
Non-GAAP net margin 13.2% 23.0%
---- ----
GAAP net income attributable
to 0.16 0.14 -12.5%
ShangPharma Corporation's
ordinary
shareholders per ADS, diluted
:
Adjustments:
IPO bonuses - 0.01
Share-based compensation 0.01 0.17
---- ----
Non-GAAP net income
attributable to 0.17 0.32 88.2%
ShangPharma Corporation's
ordinary ---- ---- ----
shareholders per ADS, diluted:
Weighted average ADS
outstanding -basic 11,555,888 17,257,553
(Non-GAAP)
Weighted average ADS
outstanding -diluted 11,567,288 17,563,304
(Non-GAAP)
Twelve months ended
December 31,
2009 2010%
---- ----
GAAP gross profit 23,852 30,113 26.2%
GAAP gross margin 33.0% 33.4%
Adjustments:
Share-based compensation 179 1,003 460.3%
--- ----- -----
Non-GAAP gross profit 24,031 31,116 29.5%
Non-GAAP gross margin 33.2% 34.5%
---- ----
GAAP operating expenses (13,603) (19,722) 45.0%
Adjustments:
IPO bonuses - 235
Share-based compensation 73 2,745 3660.3%
--- ----- ------
Non-GAAP operating expenses (13,530) (16,742) 23.7%
------- ------- ----
GAAP profit from operations 10,249 10,391 1.4%
GAAP operating margin 14.2% 11.5%
Adjustments:
IPO bonuses - 235
Share-based compensation 252 3,748 1387.3%
--- ----- ------
Non-GAAP profit from
operations 10,501 14,374 36.9%
Non-GAAP operating margin 14.5% 15.9%
---- ----
GAAP net income 9,799 12,997 32.6%
GAAP net margin 13.6% 14.4%
Adjustments:
IPO bonuses - 235
Share-based compensation 252 3,748 1387.3%
--- ----- ------
Non-GAAP net income 10,051 16,980 68.9%
Non-GAAP net margin 13.9% 18.8%
---- ----
GAAP net income attributable
to 0.63 0.78 23.8%
ShangPharma Corporation's
ordinary
shareholders per ADS, diluted
:
Adjustments:
IPO bonuses - 0.02
Share-based compensation 0.02 0.27
---- ----
Non-GAAP net income
attributable to 0.65 1.07 64.6%
ShangPharma Corporation's
ordinary ---- ---- ----
shareholders per ADS, diluted:
Weighted average ADS
outstanding -basic 11,555,888 12,993,020
(Non-GAAP)
Weighted average ADS
outstanding -diluted 11,558,738 13,222,233
(Non-GAAP)
Note: The unaudited diluted earning per ADS has excluded the effect
of allocation to preferred shareholders in both net income and
weighted average ADS outstanding.
(2) Each ADS represents 18 ordinary shares
SOURCE ShangPharma Corporation
