3SBio Inc. announced operating cash flow for the third quarter ended September 30, 2009. For the quarter, the company's operating cash flow was $9 million.

3SBio Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. Net revenues increased by 35.8% to RMB 92.6 million ($13.6 million) for the third quarter of 2009 from RMB 68.2 million ($10.0 million) for the same period in 2008. This increase was largely due to continued strength from EPIAO and TPIAO products, which increased by 32.6% and 41.3%, respectively, over the same period in 2008. GAAP operating income was RMB 28.5 million ($4.2 million) for the third quarter of 2009, an increase of 37.8% from operating income of RMB 20.7 million ($3.1 million) for the same period in 2008. Non-GAAP operating income for the third quarter of 2009 grew by 34.7% to RMB 29.8 million ($4.4 million), compared to RMB 22.1 million ($3.3 million) in the third quarter of 2008. The company recorded net interest income of RMB 2.6 million ($0.4 million) for the third quarter of 2009, compared to RMB 5.5 million ($0.8 million) for the same period in 2008. GAAP net income was RMB 26.9 million ($3.9 million) for the third quarter of 2009, 1,343.5% higher than net income of RMB 1.9 million ($0.3 million) for the same period in 2008. GAAP net income per ADS on a fully-diluted basis for the third quarter of 2009 increased to RMB 1.25 ($0.18) from RMB 0.09 ($0.01) for the same period in 2008. Non-GAAP net income for the third quarter of 2009 was RMB 28.2 million ($4.1 million), 25.6% higher than non-GAAP net income of RMB 22.4 million ($3.3 million) for the same period in 2008. Non-GAAP net income per ADS on a fully diluted basis for the third quarter of 2009 increased to RMB 1.31 ($0.19) from RMB 1.03 ($0.15) for the same period in 2008. The company reported GAAP income before income tax expense of RMB 31.392 million ($4.592 million), non-GAAP income before income tax expense of RMB 32.625 ($4.778 million), net income per basic and diluted share of RMB 0.18 ($0.03) and non-GAAP income per basic and diluted share of RMB 0.19 ($0.03) compared to GAAP income before income tax expense and minority interests of RMB 6.060 million ($0.893 million), non-GAAP income before income tax expense of RMB 26.604 ($3.918 million), net income per basic and diluted share of RMB 0.01 ($0.00) and non-GAAP income per basic and diluted share of RMB 0.15 ($0.02) for the same period of last year. Net revenues for the first nine months of 2009 increased by 32.5% to RMB 242.6 million ($35.5 million), from RMB 183.2 million ($27.0 million) for the same period in 2008. The increase was primarily attributable to increased sales from EPIAO and TPIAO products, underpinned by continued strong demand in the oncology and nephrology markets. For the first nine months ended September 30, 2009, GAAP operating income increased by 48.6% to RMB 74.5 million ($10.9 million), compared to RMB 50.1 million ($7.4 million) for the same period in 2008. Non- GAAP operating income increased by 44.3% to RMB 77.5 million ($11.4 million), compared to RMB 53.7 million ($7.9 million) for the same period in 2008. GAAP net income for the first nine months of 2009 increased by 70.2% to RMB 69.8 million ($10.2 million) compared with RMB 41.0 million ($6.0 million) for the same period in 2008. GAAP net income per ADS on a fully diluted basis for the first nine months of 2009 increased to RMB 3.24 ($0.47) from RMB 1.89 ($0.28) for the same period in 2008. Non-GAAP net income for the first nine months of 2009 increased by 19.0% to RMB 75.8 million ($11.1 million) compared with RMB 63.7 million ($9.4 million) for the same period in 2008. Non-GAAP net income per ADS for the first nine months of 2009 increased to RMB 3.52 ($0.52) from RMB 2.93 ($0.43) for the same period in 2008. The company reported GAAP income before income tax expense of RMB 82.344 million ($12.064 million), non-GAAP income before income tax expense of RMB 88.367 ($12.947 million), net income per basic and diluted share of RMB 0.46 ($0.07) and non-GAAP income per basic and diluted share of RMB 0.50 ($0.07) compared to GAAP income before income tax expense and minority interests of RMB 52.020 million ($7.660 million), non-GAAP income before income tax expense of RMB 74.745 ($11.006 million), net income per basic and diluted share of RMB 0.27 ($0.04) and non-GAAP income per basic and diluted share of RMB 0.42 ($0.06) for the same period of last year. Based on current market conditions and visibility provided during the third quarter, the Company reiterates its total net revenue target for the full year of 2009 of between $43 million to $45 million, resulting in a year-over-year increase of approximately 21% to 26%.

3SBio Inc., Q3 2009 Earnings Call, Nov 13 2009