Tongjitang Chinese Medicines Co. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. Net revenues for the second quarter of 2009 were RMB 134.1 million ($19.6 million), up by 12.1% from RMB 119.6 million in the second quarter of 2008, and up by 48.7% from RMB 90.2 million in the first quarter of 2009. Operating income in the second quarter of 2009 increased 28.8% to RMB 11.7 million ($1.7 million) from RMB 9.1 million in the second quarter of 2008, primarily reflecting the aforesaid increase in gross profit. Net income attributable to the Company increased 117.6% to RMB 17.2 million ($2.5 million), which yielded net income per ADS of RMB 0.53 ($0.08), and net income per share of RMB 0.13 ($0.02). Non-GAAP adjusted EBITDA in the second quarter of 2009 was RMB 27.1 million ($4.0 million), compared to RMB 27.4 million in the second quarter of 2008, and a loss of RMB 1.9 million in the first quarter of 2009. Non-GAAP adjusted EBITDA per share was RMB 0.21 ($0.03), compared to RMB 0.20 in the second quarter of 2008 and RMB 0.01 in the first quarter of 2009. The company also reported income before taxes of RMB 18.816 million compared to income before taxes of RMB 10.335 million for the previous corresponding period. Non-GAAP earnings per share were RMB 0.13 against RMB 0.06 a year ago. For the six months ended June 30, 2009, revenues were RMB 224.2 million ($32.8 million), down from RMB 225.4 million in the first six months of 2008. During this same time period, gross profit was RMB 134.2 million ($19.7 million), down from RMB 144.3 million. Income from operations increased 95.3% to RMB 1.5 million ($0.2 million) from RMB 0.7 million in the first six months of 2008. Net income attributable to the company was RMB 5.8 million ($0.9 million), or RMB 0.04 ($0.01) per share, compared to net income attributable to the Company of RMB 19.8 million, or RMB 0.15 per share, in the first six months of 2008. Net income per ADS was RMB 0.18 ($0.03) in the first six months of 2009, compared with net income per ADS of RMB 0.59 in the first six months of 2008. The company also reported income before taxes of RMB 9.521 million compared to income before taxes of RMB 23.158 million for the previous corresponding period. Non-GAAP adjusted EBITDA was RMB 25.1 million or RMB 0.19 per share against RMB 53.9 million or RMB 0.40 per share a year ago. Non-GAAP earnings per share were RMB 0.04 against RMB 0.15 a year ago.

Tongjitang Chinese Medicines Co., Q2 2009 Earnings Call, Aug 17 2009

Tongjitang Chinese Medicines Co. announced that effective June 16, 2009, it has changed its independent auditor for the year ending December 31, 2009 from Deloitte Touche Tohmatsu to Ernst & Young Hua Ming. The change was approved by Tongjitang's audit committee and full board of directors. Tongjitang and Deloitte did not have any disagreement on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures that, if not resolved to the satisfaction of Deloitte, would have caused it to make reference to the subject matter of the disagreement in connection with its report on Tongjitang's consolidated financial statements.