Simcere Pharmaceutical Group. reported preliminary unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2012. Total revenue was RMB 540.1 million ($86.7 million) for the fourth quarter of 2012, compared to RMB 511.0 million for the same period in 2011 representing an increase of 5.7%. Loss from operations for the fourth quarter of 2012 was RMB 78.2 million ($12.5 million), compared to income from operations of RMB 1.6 million for the same period in 2011. Loss from operations was primarily attributable to a non-cash impairment charge of RMB 97.2 million ($15.6 million) as the result of a write-down of intangible assets, goodwill, and assets held for sale associated with the acquisition of Jiangsu Quanyi in 2009. Net loss attributable to company for the fourth quarter of 2012 was RMB 20.8 million ($3.3 million) or $0.20 loss per diluted share, compared to net income attributable to company of RMB 42.8 million or $0.39 per diluted share for the same period in 2011. Basic and diluted net loss per American Depository Share (ADS) for the fourth quarter of 2012 were RMB 0.40 ($0.06) and RMB 0.39 ($0.06), respectively. Loss before income taxes was $81,576,000 against $8,407,000 a year ago period.

For the full year of 2012, total revenue was RMB 2,083.0 million ($334.3 million), representing an increase of 2.1% from RMB 2,040.5 million in 2011. For the full year of 2012, income from operations was RMB 39.6 million ($6.4 million), which represented a decrease of 72.4% from RMB 143.5 million in 2011. For the full year of 2012, net income attributable to company was RMB 57.0 million ($9.1 million) or $0.53 per diluted share, which represented a decrease of 68.1% from RMB 78.4 million or $1.61 per diluted share in 2011. Basic and diluted earnings per ADS for the full year of 2012 were RMB 1.06 ($0.17) and RMB 1.06 ($0.17), respectively. Loss before income taxes was $19,984,000 against income before income taxes of $116,458,000 a year ago period.

The company also announced that Mr. Alan Au joined the Company as an independent director and chairman of the audit committee in March 2013. Mr. Au has over 15 years of experience in the financial service and investment sectors relating to healthcare in Asia. He is a Certified Public Accountant in the U.S. and holds the Chartered Financial Analyst designation.