CHANGZHOU, China, March 19, 2012 /PRNewswire-Asia/ -- China Kanghui
Holdings (NYSE: KH) ("Kanghui" or the "Company"), a leading
domestic developer, manufacturer and marketer of orthopedic
implants in China, today announced
its unaudited financial results for the fourth quarter and full
year 2011.
Fourth Quarter 2011 Highlights
- Total net revenue for the fourth quarter of 2011 increased by
33.6% year-over-year to RMB96.6
million from RMB72.3 million
in the corresponding period of the prior year.
- Gross profit for the fourth quarter of 2011 increased by 32.3%
year-over-year to RMB69.2 million
from RMB52.3 million in the
corresponding period of the prior year.
- Operating income for the fourth quarter of 2011 increased by
17.0% year-over-year to RMB35.8
million from RMB30.6 million
in the corresponding period of the prior year.
- Net income for the fourth quarter of 2011 increased by 53.8%
year-over-year to RMB42.3million from
RMB27.5 million in the corresponding
period of the prior year.
- Non-GAAP(1) net income for the fourth quarter of 2011 increased
by 57.4% year-over-year to RMB44.4
million from RMB28.2 million
in the corresponding period of the prior year.
Full Year 2011 Highlights
- Total net revenue for the full year 2011 increased by 34.7%
year-over-year to RMB327.0 million
from RMB242.8 million for the full
year 2010.
- Gross profit for the full year 2011 increased by 36.8%
year-over-year to RMB234.5 million
from RMB171.4 million for the full
year 2010.
- Operating income for the full year 2011 increased by 22.5%
year-over-year to RMB132.3 million
from RMB108.0 million for the full
year 2010.
- Net income for the full year 2011 increased by 21.5%
year-over-year to RMB121.1 million
from RMB99.7 million for the full
year 2010.
- Non-GAAP(1) net income for the full year 2011 increased by
19.3% year-over-year to RMB128.5
million from RMB107.7 million
for the full year 2010.
Mr. Libo Yang, Chief Executive Officer of the Company,
stated, "We are very pleased that Kanghui once again exceeded
expectations and delivered another strong quarterly financial
performance in the fourth quarter of 2011. We continued to expand
our market share in China, while
further penetrated our existing international sales channels at the
same time. Our fourth quarter success concluded a very
successful 2011 for Kanghui. With our sustainable advantages, a
proven product line, and an exciting new product pipeline, we
believe we are well positioned to deliver another successful year
in 2012."
Ms. Sarah Wang, Chief Financial Officer of Kanghui,
commented, "Our strong fourth quarter financial results reflect our
ability to consistently execute on our growth strategy.
During the fourth quarter, we experienced strong sales growth
across all product segments and markets, driven by the strong
demand for our existing product lines. For 2012, we intend to
continue with the solid momentum and foundation that we had built
in 2011 and to launch additional new products throughout the year
to further establish Kanghui as a leading international provider of
innovative and diversified orthopedic products."
Fourth Quarter 2011 Financial and Operating Results
Net revenue increased by 33.6% year-over-year to RMB96.6 million ($15.3
million(2)) in the fourth quarter of 2011 from RMB72.3 million in the corresponding period of
the prior year. Net revenue from trauma products increased by
45.4% year-over-year to RMB63.7
million ($10.1 million) in the
fourth quarter of 2011 from RMB43.8
million in the corresponding period of the prior year. Net
revenue from spine products increased by 28.4% year-over-year to
RMB28.5 million ($4.5 million) in the fourth quarter of 2011 from
RMB22.2 million in the corresponding
period of the prior year. Net revenue from OEM products decreased
by 30.2% year-over-year to RMB4.4
million ($0.7 million) in the
fourth quarter of 2011 from RMB6.3
million in the corresponding period of the prior year.
Domestic sales of proprietary products increased by 26.8%
year-over-year to RMB70.0 million
($11.1 million) in the fourth quarter
of 2011 from RMB55.2 million in the
corresponding period of the prior year, while international sales
of proprietary products increased by 105.6% year-over-year to
RMB22.2 million ($3.5 million) in the fourth quarter of 2011 from
RMB10.8 million in the corresponding
period of the prior year.
In the fourth quarter of 2011, cost of revenue increased by
36.5% year-over-year to RMB27.3
million ($4.3 million) from
RMB20.0 million in the corresponding
period of the prior year. Gross profit increased by 32.3%
year-over-year to RMB69.2 million
($11.0 million) in the fourth quarter
of 2011 from RMB52.3 million in the
corresponding period of the prior year. Gross margin for the fourth
quarter of 2011 was 71.6%, compared to 72.3% in the corresponding
period of the prior year.
Selling expenses increased by 29.2% year-over-year to
RMB14.6 million ($2.3 million) in the fourth quarter of 2011 from
RMB11.3 million in the corresponding
period of the prior year. General and administrative expenses
increased by 50.0% year-over-year to RMB13.2
million ($2.1 million) in the
fourth quarter of 2011 from RMB8.8
million in the corresponding period of the prior year.
Research and development expenses increased by 229.4%
year-over-year to RMB5.6 million
($0.9 million) in the fourth quarter
of 2011 from RMB1.7 million in the
corresponding period of the prior year.
Operating income increased by 17.0% to year-over-year
RMB35.8 million ($5.7 million) in the fourth quarter of 2011 from
RMB30.6 million in the corresponding
period of the prior year. Operating margin decreased to 37.1% in
the fourth quarter of 2011 from 42.3% in the corresponding period
of the prior year.
Income tax benefit in the fourth quarter of 2011 was
RMB0.3 million ($54,000), compared to an income tax expense of
RMB2.6 million in the corresponding
period of the prior year.
Net income was RMB42.3 million
($6.7 million) in the fourth quarter
of 2011, representing a year-over-year increase of 53.8% from
RMB27.5 million in the corresponding
period of the prior year. On a diluted per ADS(3) basis, the
Company reported net income per diluted ADS of RMB1.65 ($0.26) in
the fourth quarter of 2011, compared to a net income per diluted
ADS of RMB1.10 in the corresponding
period of the prior
year.
Non-GAAP net income, which excludes share based compensation
expenses, increased by 57.4% to RMB44.4
million ($7.1 million) from
RMB28.2 million in the corresponding
period of the prior year. The Company reported non-GAAP net income
per diluted ADS of RMB1.72
($0.27) in the fourth quarter of
2011, compared to a non-GAAP net income per diluted ADS of
RMB1.12 in the corresponding period
of the prior year.
During the fourth quarter of 2011, the Company had a weighted
average diluted share count of 154.3 million shares (equivalent to
25.7 million ADSs), compared to 150.6 million shares (equivalent to
25.1 million ADSs) in the corresponding period of the prior
year.
Full Year 2011 Financial and Operating Results
For the full year ended December 31,
2011, net revenue increased 34.7% year-over-year to
RMB327.0 million ($52.0 million) from RMB242.8 million for the prior year. Net revenue
from trauma products increased 30.7% year-over-year to RMB201.6 million ($32.0
million) from RMB154.3 million
for the prior year. Net revenue from spine products increased 45.6%
year-over-year to RMB99.3 million
($15.8 million) from RMB68.2 million for the prior year. Net revenue
from OEM products increased 28.6% year-over-year to RMB26.1 million ($4.1
million) from RMB20.3 million
for the prior year. The increase in revenue for full year 2011 also
reflects international revenue growth of 48.6% and domestic revenue
growth of 32.4%, on a year-over-year basis.
Gross profit for the full year 2011 increased 36.8%
year-over-year to RMB234.5 million
($37.3 million) from RMB171.4 million in the prior year. Operating
income for full year 2011 increased 22.5% year-over-year to
RMB132.3 million ($21.0 million) from RMB108.0 million for the prior year.
Net income for the full year 2011 increased by 21.5%
year-over-year to RMB121.1 million
($19.2 million) from RMB99.7 million for the prior year. This is
equivalent to RMB4.72 ($0.75) per diluted ADS in the full year 2011.
Non-GAAP net income for the full year 2011, which excludes
share-based compensation expenses, increased by 19.3%
year-over-year to RMB128.5 million
($20.4 million) from RMB107.7 million for the prior year. This is
equivalent to RMB5.01 ($0.80) per diluted ADS in the full year
2011.
The weighted average number of diluted shares outstanding was
154.0 million, equivalent to 25.7 million ADSs, for the year ended
December 31, 2011, compared to a
weighted average of 100.3 million diluted shares outstanding,
equivalent to 16.7 million ADSs, for the year ended December 31, 2010.
Balance Sheet
As of December 31, 2011, the
Company had cash and cash equivalents of RMB380.1million ($60.4
million), compared to RMB262.5
million as of December 31,
2010. As of December 31, 2011,
the Company held short-term investments of RMB77.0 million ($12.2
million), compared to RMB266.7
million as of December 31,
2010.
Business Outlook
Mr. Yang added, "Our progress in 2011 has laid a solid
foundation for our continued growth in 2012, as we are focused on
further penetrating both our existing domestic and international
markets while expanding into new growth opportunities. As we
successfully obtained FDA approvals for TGM's Helicon™ Hip System
("HHS"), Milestone Knee System ("MKS") and related surgical
instruments, we intend to launch these products this year to kick
start our reconstructive joint segment. We have a good start
in 2012 and will continue to position Kanghui as a leader in
product quality in the fast-growing and relatively underserved
joint reconstruction market in China."
The Company anticipates revenue for full year 2012 will be in
the range of RMB392 million to RMB403
million, which represents year-over-year growth of 20% to
23%. The Company also estimates its full year 2012 non-GAAP
net income to be in the range of RMB146
million to RMB153 million.
Non-Cash Share-Based Compensation Expense
Discussion
The Company recognized non-cash share-based compensation
expenses of RMB2.0 million
($0.3 million) in the fourth quarter
of 2011 and RMB7.4 million
($1.2 million) for full year
2011.
The Company classified these non-cash share-based compensation
expenses in its costs of revenue, selling expenses, general and
administrative expenses as well as in research and development
expenses. The break out of these expenses per line item is provided
in the financial tables attached to this press release.
The Company has provided a non-GAAP presentation of results
which excludes the non-cash share-based compensation expenses.
Please refer to the non-GAAP presentation provided in the appendix
for a year-over-year comparison of non-cash share-based
compensation expenses. The Company believes that this non-GAAP
presentation is a helpful tool for the Company to plan and forecast
future periods and both management and investors benefit from
referring to such non-GAAP presentation in assessing the
performance of the Company.
Conference Call
Kanghui will hold a corresponding conference call and live
webcast at 8:00 a.m. ET on
Monday, March 19, 2012 (8:00 p.m. Beijing time on Monday,
March 19, 2012) to discuss fourth quarter and full year 2011
results and answer questions from investors. Listeners may
access the call by dialing:
US Toll
Free:
|
1-866-519-4004
|
US
Toll/International:
|
1-718-354-1231
|
Hong Kong Toll
Free:
|
800-930-346
|
Hong Kong
Toll:
|
852-2475-0994
|
China Toll Free:
|
800-819-0121
|
China Toll Free
(Mobile):
|
400-620-8038
|
Conference
ID:
|
51428308
|
A replay of the webcast will be accessible through March 26, 2012 on http://ir.kanghui.com/ or by
dialing:
US Toll Free:
|
+1-866-214-5335
|
US
Toll/International:
|
+1-718-354-1232
|
Passcode:
|
51428308
|
About China Kanghui Holdings
Founded in 1997, Kanghui is a leading domestic developer,
manufacturer and marketer of orthopedic implants in China. The Company offers a wide array of
proprietary orthopedic implant products in trauma and spine, and
has an extensive nationwide network of distributors for its
products in China, as well as in
28 other countries. Kanghui has strong research and development
capabilities, focused on developing new proprietary products and
product lines, and enhancing existing products and product lines.
For more information, please visit www.kanghui.com.
Use of Non-GAAP Financial Measures
The Company has included non-GAAP financial measures in this
press release. Non-GAAP financial measures are defined as GAAP
gross profit excluding non-cash share-based compensation expenses,
operating income excluding non-cash share-based compensation
expenses, net income excluding non-cash share-based compensation
expenses, net margin excluding non-cash share-based compensation
expenses, basic earnings per share and per ADS excluding non-cash
share-based compensation expenses, and diluted earnings per share
and per ADS excluding non-cash share-based compensation expenses.
The Company believes that management and investors benefit from
referring to the non-GAAP financial measures in assessing the
performance of the Company and when planning and forecasting future
periods. These non-GAAP operating measures are useful for
understanding and assessing underlying business performance and
operating trends. The use of non-GAAP financial measures has
limitations and readers should not consider non-GAAP financial
measures in isolation from or as alternatives to consolidated
financial metrics prepared in accordance with U.S. GAAP. Readers
are encouraged to refer to the reconciliation of non-GAAP measures
to GAAP measures included herein.
Safe-Harbor Statement
This press release contains statements of a forward-looking
nature, including, among other things, the Company's unaudited
operating results for 2011 and anticipated operating results for
2012, new product introductions and the respective timetable, the
demand for joint reconstruction products in China, future prospects of the Company and the
ability for the Company to realize its business plans for 2012.
These forward-looking statements are not historical facts but
instead represent only the Company's belief regarding expected
results and events, many of which, by their nature, are inherently
uncertain and outside of the Company's control. The actual results
and other circumstances of the Company may differ, possibly
materially, from the anticipated results and events indicated in
these forward-looking statements. Announced results for the fourth
quarter 2011 are preliminary, unaudited and subject to audit
adjustment. Adjustments to the financial statements may be
identified when audit work is performed for the year-end audit,
which could result in significant differences from this preliminary
unaudited financial information. These statements are made under
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995, including certain plans, expectations, goals,
and projections, which are subject to numerous assumptions, risks,
and uncertainties. These forward-looking statements may include,
but are not limited to, statements containing words such as "may,"
"could," "would," "plan," "anticipate," "believe," "estimate,"
"predict," "potential," "expects," "intends" and "future" or
similar expressions. These forward-looking statements speak only as
of the date of this press release and are subject to change at any
time. These forward-looking statements are based upon
management's current expectations and are subject to a number of
risks, uncertainties and contingencies, many of which are beyond
the Company's control that may cause actual results, levels of
activity, performance or achievements to differ materially from any
future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. The
Company's actual results could differ materially from those
contained in the forward-looking statements due to a number of
factors, including the Company's beliefs regarding its strengths
and strategies; the Company's ability to expand its international
business; the Company's ability to develop and successfully market
new products in China and
internationally; the Company's current expansion strategy,
including its ability to expand its manufacturing and research and
development facilities and capabilities and the Company's future
prospects, business development, results of operations and
financial condition. The financial information contained in this
release should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's
annual report on Form 20-F for the fiscal year 2010, as filed with
the Securities and Exchange Commission on June 3, 2011, and are available on the Securities
and Exchange Commission's website at www.sec.gov. For
additional information on these and other important factors that
could adversely affect our business, financial condition, results
of operations, and prospects, please see "Risk Factors" that begins
on page 5 of the Company's annual report for fiscal year 2010 and
in documents subsequently filed by the Company from time to time
with the Securities and Exchange Commission, which can be found on
the Company's website at www.kanghui.com or at www.sec.gov.
Contact
Information
|
China Kanghui Holdings
Investor Relations Department
|
+1-888-321-2558
|
|
Asia Bridge Capital
Limited
|
Carene Toh
|
+86-186 1835
6339
|
carene.toh@asiabridgegroup.com
|
China Kanghui
Holdings
Summary - Fourth Quarter and Full
Year 2011
(RMB in thousands, except for per share data and per ADS
data)
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2010
|
2011
|
|
2010
|
2011
|
|
Unaudited
|
Unaudited
|
|
Unaudited
|
Unaudited
|
Net revenue
|
72,285
|
96,562
|
|
242,754
|
326,954
|
Gross profit
|
52,304
|
69,221
|
|
171,447
|
234,500
|
Non-GAAP gross
profit
|
52,352
|
69,269
|
|
171,638
|
234,696
|
Operating
income
|
30,550
|
35,797
|
|
107,969
|
132,346
|
Non-GAAP operating
income
|
31,211
|
37,813
|
|
115,964
|
139,719
|
Net income
|
27,529
|
42,344
|
|
99,707
|
121,077
|
Non-GAAP net
income
|
28,190
|
44,360
|
|
107,702
|
128,450
|
Earnings per share
-basic
|
0.20
|
0.30
|
|
0.30
|
0.87
|
Earnings per share
-diluted
|
0.18
|
0.27
|
|
0.27
|
0.79
|
Earnings per ADS
-basic
|
1.21
|
1.81
|
|
1.81
|
5.22
|
Earnings per ADS
-diluted
|
1.10
|
1.65
|
|
1.60
|
4.72
|
Non-GAAP earnings per
share -basic
|
0.21
|
0.32
|
|
0.39
|
0.92
|
Non-GAAP earnings per
share -diluted
|
0.19
|
0.29
|
|
0.35
|
0.83
|
Non-GAAP earnings per
ADS -basic
|
1.24
|
1.90
|
|
2.36
|
5.54
|
Non-GAAP earnings per
ADS -diluted
|
1.12
|
1.72
|
|
2.08
|
5.01
|
|
|
|
|
|
|
- Revenue By
Product Category
|
|
|
|
|
|
Trauma
|
43,747
|
63,602
|
|
154,220
|
201,528
|
Spine
|
22,236
|
28,523
|
|
68,210
|
99,349
|
OEM
|
6,302
|
4,437
|
|
20,324
|
26,077
|
- Revenue by
Business Sector
|
|
|
|
|
|
Domestic
|
55,168
|
69,950
|
|
182,528
|
241,601
|
International
|
10,815
|
22,175
|
|
39,902
|
59,276
|
OEM
|
6,302
|
4,437
|
|
20,324
|
26,077
|
China Kanghui
Holdings
Consolidated Balance Sheets
(Expressed in thousands)
|
|
|
As of
December
31, 2010
|
|
As of December
31,
2011
|
|
|
RMB
|
|
RMB
|
US$
|
|
|
Audited
|
|
Unaudited
|
Unaudited
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
262,476
|
|
380,092
|
60,391
|
Bills
receivable
|
|
8,163
|
|
5,873
|
933
|
Short-term
investments
|
|
266,673
|
|
76,998
|
12,234
|
Accounts receivable,
net
|
|
55,131
|
|
87,578
|
13,915
|
Inventories,
net
|
|
86,266
|
|
110,907
|
17,621
|
Prepayments and other
current assets
|
|
11,693
|
|
13,428
|
2,135
|
Deferred tax
assets
|
|
12,134
|
|
9,090
|
1,444
|
Amount due from related
parties
|
|
644
|
|
5,672
|
901
|
Total current
assets
|
|
703,180
|
|
689,638
|
109,574
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
107,237
|
|
259,825
|
41,282
|
Intangible assets,
net
|
|
46,995
|
|
62,026
|
9,855
|
Prepaid land lease
payments
|
|
23,298
|
|
22,812
|
3,624
|
Goodwill
|
|
131,527
|
|
155,341
|
24,681
|
Long-term
investments
|
|
-
|
|
25,204
|
4,004
|
Deposits for non-current
assets
|
|
37,507
|
|
4,731
|
752
|
Deferred tax
assets
|
|
2,436
|
|
2,444
|
388
|
Other long-term
assets
|
|
-
|
|
257
|
41
|
Total non-current
assets
|
|
349,000
|
|
532,640
|
84,627
|
Total assets
|
|
1,052,180
|
|
1,222,278
|
194,201
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
15,086
|
|
19,278
|
3,063
|
Accrued expenses and
other liabilities
|
|
47,433
|
|
65,388
|
10,389
|
Income tax
payable
|
|
2,830
|
|
5,800
|
922
|
Deferred
revenue
|
|
289
|
|
-
|
-
|
Uncertain tax
positions
|
|
8,004
|
|
4,197
|
667
|
Amount due to related
parties
|
|
4,040
|
|
1,137
|
181
|
Total current
liabilities
|
|
77,682
|
|
95,800
|
15,222
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred government
grants
|
|
5,511
|
|
6,409
|
1,018
|
Deferred tax
liabilities
|
|
11,700
|
|
14,857
|
2,361
|
Total non-current
liabilities
|
|
17,211
|
|
21,266
|
3,379
|
Total
liabilities
|
|
94,893
|
|
117,066
|
18,601
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Ordinary shares (par
value of US$0.001 per share;
1,000,000,000 shares authorized as of
December
31, 2010 and December 31, 2011 (unaudited);
136,821,600 shares issued and outstanding as
of December 31, 2010 and 140,401,842 shares
issued and outstanding as of December 31,
2011
(unaudited))
|
|
999
|
|
1,022
|
162
|
Additional paid-in
capital
|
|
892,298
|
|
912,972
|
145,057
|
Accumulated other
comprehensive loss
|
|
(16,737)
|
|
(19,604)
|
(3,115)
|
Statutory
reserves
|
|
31,247
|
|
45,417
|
7,216
|
Retained
earnings
|
|
49,480
|
|
156,387
|
24,847
|
Total China Kanghui
Holdings shareholders' equity
|
|
957,287
|
|
1,096,194
|
174,167
|
Non-controlling
interests
|
|
-
|
|
9,018
|
1,433
|
Total equity
|
|
957,287
|
|
1,105,212
|
175,600
|
Total liabilities and
equity
|
|
1,052,180
|
|
1,222,278
|
194,201
|
China Kanghui
Holdings
|
Consolidated
Statements of Operations
|
Expressed in
thousands, except share and per share data
|
|
Three Months
Ended December 31,
|
|
Year Ended
December 31,
|
|
2010
|
2011
|
|
2010
|
2011
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
Audited
|
Unaudited
|
Unaudited
|
|
|
|
|
|
|
|
|
Net revenue
|
72,285
|
96,562
|
15,342
|
|
242,754
|
326,954
|
51,948
|
Cost of
revenue
|
(19,981)
|
(27,341)
|
(4,344)
|
|
(71,307)
|
(92,454)
|
(14,689)
|
Gross profit
|
52,304
|
69,221
|
10,998
|
|
171,447
|
234,500
|
37,259
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
expenses
|
(11,273)
|
(14,573)
|
(2,315)
|
|
(28,230)
|
(41,572)
|
(6,605)
|
General and
administrative expenses
|
(8,756)
|
(13,203)
|
(2,098)
|
|
(29,765)
|
(48,415)
|
(7,692)
|
Research and development
expenses
|
(1,725)
|
(5,648)
|
(897)
|
|
(5,483)
|
(12,167)
|
(1,933)
|
|
|
|
|
|
|
|
|
Operating
income
|
30,550
|
35,797
|
5,688
|
|
107,969
|
132,346
|
21,029
|
Interest
income
|
1,058
|
5,384
|
855
|
|
2,915
|
15,927
|
2,530
|
Government
grants
|
3,130
|
1,141
|
181
|
|
3,490
|
4,331
|
688
|
Other income
|
91
|
-
|
-
|
|
569
|
1,860
|
296
|
Other
expenses
|
(422)
|
(81)
|
(13)
|
|
(735)
|
(1,885)
|
(299)
|
Foreign exchange
loss
|
(4,259)
|
(440)
|
(70)
|
|
(7,340)
|
(8,564)
|
(1,361)
|
Income before income
taxes
|
30,148
|
41,801
|
6,641
|
|
106,868
|
144,015
|
22,883
|
Income tax (expense)
benefit
|
(2,619)
|
340
|
54
|
|
(7,161)
|
(23,529)
|
(3,738)
|
|
|
|
|
|
|
|
|
Net income
|
27,529
|
42,141
|
6,695
|
|
99,707
|
120,486
|
19,145
|
Net loss attributable to
non-controlling interests
|
-
|
203
|
32
|
|
-
|
591
|
94
|
Net income attributable
to China Kanghui Holdings
|
27,529
|
42,344
|
6,727
|
|
99,707
|
121,077
|
19,239
|
|
|
|
|
|
|
|
|
Accretion of redeemable
convertible preferred shares:
|
|
|
|
|
|
|
|
Series A
|
-
|
-
|
-
|
|
(7,572)
|
-
|
-
|
Series B
|
-
|
-
|
-
|
|
(54,988)
|
-
|
-
|
Series B-1
|
-
|
-
|
-
|
|
(2,844)
|
-
|
-
|
Net income attributable
to ordinary shareholders
|
27,529
|
42,344
|
6,727
|
|
34,303
|
121,077
|
19,239
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
0.20
|
0.30
|
0.05
|
|
0.30
|
0.87
|
0.14
|
Diluted
|
0.18
|
0.27
|
0.04
|
|
0.27
|
0.79
|
0.12
|
|
|
|
|
|
|
|
|
Shares used in earnings
per share computation:
|
|
|
|
|
|
|
|
Basic
|
136,821,600
|
140,401,842
|
140,401,842
|
|
88,408,057
|
139,086,102
|
139,086,102
|
Diluted
|
150,615,232
|
154,311,169
|
154,311,169
|
|
100,346,612
|
153,972,265
|
153,972,265
|
Share-based
compensation charges incurred during the period related
to:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
48
|
48
|
7
|
|
191
|
196
|
30
|
Selling
expenses
|
107
|
149
|
23
|
|
455
|
478
|
74
|
General and
administrative expenses
|
457
|
1,770
|
274
|
|
7,158
|
6,502
|
1,007
|
Research and development
expenses
|
49
|
49
|
8
|
|
191
|
197
|
31
|
Total
|
661
|
2,016
|
312
|
|
7,995
|
7,373
|
1,142
|
China Kanghui
Holdings
Reconciliations of Non-GAAP Results
to GAAP Results of Operations
(RMB in thousands, except for share, ADS, per share data
and per ADS data)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2010
|
2011
|
|
2010
|
2011
|
|
|
Unaudited
|
Unaudited
|
|
Unaudited
|
Unaudited
|
|
|
|
|
|
|
|
Net revenue
|
|
72,285
|
96,562
|
|
242,754
|
326,954
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
|
28,190
|
44,360
|
|
107,702
|
128,450
|
Non-GAAP net
margin
|
|
39.0%
|
45.9%
|
|
44.4%
|
39.3%
|
Share-based
compensation
|
|
(661)
|
(2,016)
|
|
(7,995)
|
(7,373)
|
GAAP net
income
|
|
27,529
|
42,344
|
|
99,707
|
121,077
|
GAAP net
margin
|
|
38.1%
|
43.9%
|
|
41.1%
|
37.0%
|
|
|
|
|
|
|
|
Non-GAAP earnings per
share -basic
|
|
0.21
|
0.32
|
|
0.39
|
0.92
|
Non-GAAP earnings per
share -diluted
|
|
0.19
|
0.29
|
|
0.35
|
0.83
|
Non-GAAP earnings per
ADS -basic
|
|
1.24
|
1.90
|
|
2.36
|
5.54
|
Non-GAAP earnings per
ADS -diluted
|
|
1.12
|
1.72
|
|
2.08
|
5.01
|
|
|
|
|
|
|
|
GAAP earnings per share
-basic
|
|
0.20
|
0.30
|
|
0.30
|
0.87
|
GAAP earnings per share
-diluted
|
|
0.18
|
0.27
|
|
0.27
|
0.79
|
GAAP earnings per ADS
-basic
|
|
1.21
|
1.81
|
|
1.81
|
5.22
|
GAAP earnings per ADS
-diluted
|
|
1.10
|
1.65
|
|
1.60
|
4.72
|
|
|
|
|
|
|
|
Shares used in
computation of:
|
|
|
|
|
|
|
Basic earnings per
share
|
|
136,821,600
|
140,401,842
|
|
88,408,057
|
139,086,102
|
Diluted earnings per
share
|
|
150,615,232
|
154,311,169
|
|
100,346,612
|
153,972,265
|
Basic earnings per
ADS
|
|
22,803,600
|
23,400,307
|
|
14,734,676
|
23,181,017
|
Diluted earnings per
ADS
|
|
25,102,539
|
25,718,528
|
|
16,724,435
|
25,662,044
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
|
31,211
|
37,813
|
|
115,964
|
139,719
|
Non-GAAP operating
margin
|
|
43.2%
|
39.2%
|
|
47.8%
|
42.7%
|
Share-based
compensation
|
|
(661)
|
(2,016)
|
|
(7,995)
|
(7,373)
|
GAAP operating
income
|
|
30,550
|
35,797
|
|
107,969
|
132,346
|
GAAP operating
margin
|
|
42.3%
|
37.1%
|
|
44.5%
|
40.5%
|
|
|
|
|
|
|
|
Non-GAAP gross
profit
|
|
52,352
|
69,269
|
|
171,638
|
234,696
|
Non-GAAP gross
margin
|
|
72.4%
|
71.7%
|
|
70.7%
|
71.8%
|
Share-based
compensation
|
|
(48)
|
(48)
|
|
(191)
|
(196)
|
GAAP gross
profit
|
|
52,304
|
69,221
|
|
171,447
|
234,500
|
GAAP gross
margin
|
|
72.4%
|
71.7%
|
|
70.6%
|
71.7%
|
(1) All non-GAAP measures exclude share-based compensation
expenses. For further details on non-GAAP measures, please refer to
the reconciliation tables and a detailed discussion of the
Company's use of non-GAAP information set forth elsewhere in this
press release.
(2) This announcement contains translations of certain Renminbi
("RMB") amounts into US dollars ("$") at specified rates solely for
the convenience of readers. Unless otherwise noted, all
translations from Renminbi to US dollars as of and for the quarter
ended December 31, 2011 were made at
the noon buying rate of RMB6.2939 to
$1.00 on December 30, 2011 in the City of New York for cable transfers in
Renminbi per US dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
The Company makes no representation that the Renminbi or US dollar
amounts referred to in this press release could have been or could
be converted into US dollars or Renminbi, at any particular rate or
at all.
(3) Each of the Company's American Depositary Shares ("ADS"),
which are traded on New York Stock Exchange, represents six of the
Company's ordinary shares.
SOURCE China Kanghui Holdings