SHANGHAI, Nov. 20, 2012 /PRNewswire/ -- ShangPharma
Corporation (NYSE: SHP) ("ShangPharma" or the "Company"), a leading
China-based pharmaceutical and
biotechnology research and development outsourcing company, today
announced its unaudited financial results for the third quarter
ended September 30, 2012.
Third Quarter 2012 Highlights
- Net revenues increased by 10.6% year-over-year to $31.9 million.
- Net revenues from full-time-equivalent ("FTE")-based services
increased by 14.6% year-over-year to $23.8
million.
- Net revenues from the Company's top-10 customers increased by
11.3% year-over-year to $20.0
million, representing approximately 62.6% of total net
revenues.
- GAAP gross margin was 27.5%, compared with 31.2% in the third
quarter of 2011. Non-GAAP gross margin was 28.1%, compared with
33.4% in the third quarter of 2011.
- GAAP operating margin was 3.8%, compared with 7.2% in the third
quarter of 2011. Non-GAAP operating margin was 7.7% compared with
13.4% in the third quarter of 2011.
Management Comment
"During the third quarter, ShangPharma saw steady top-line
growth in our drug discovery and development services, despite
overall industry headwinds and R&D budget fluctuations," said
Michael Xin Hui, founder and Chief
Executive Officer of ShangPharma. "Our top customers have been
especially keen to expand their scale and scope of business with us
in areas like chemistry, biologics, biology, DMPK and integrated
services, and we believe that this demand will be even stronger
next year.
"Our long-term investment strategy focused on higher-value
services has enabled us to establish leadership in key areas, while
reducing the impact of crowding in the market for more mature
service offerings," Mr. Hui continued. "During the third quarter,
our biologics team moved into a new state-of-the-art R&D
facility, enabling us to provide fully integrated biologics, drug
discovery and development services by accessing multiple leading
technology platforms at one location. Furthermore, we expect
that the GMP manufacturing suite within this facility will be ready
and operational by early 2013."
William Dai, Chief Financial
Officer, added, "During a difficult third quarter for global
pharmaceutical and biotech companies, we focused on easing margin
pressure by optimizing our scientific team and reducing operational
structural costs in areas like capital expenditure and
administration. Our optimization plan is helping to improve margins
and profitability, while keeping a high ratio of senior-to-junior
scientific staff to ensure that we maintain our competitive
advantage in the CRO market."
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 expenses relating to or
the effect of share-based compensation. See "About Non-GAAP
Financial Measures" and "Reconciliation of Unaudited GAAP to
Non-GAAP Financial Data" below for more information about the
non-GAAP financial measures included in this press release.
Beginning in the first quarter 2012, in accordance with
Accounting Standards Update 2011-05, the Company is presenting
other comprehensive income and its components in the unaudited
condensed consolidated statement of comprehensive income.
Other comprehensive income mainly consists of currency
translation adjustments relating to translating some of our
subsidiaries' financial statements from their functional currency
to our reporting currency, which is in the United States dollar. The
functional currency of our main subsidiaries in China is the RMB.
Third Quarter 2012 Results
Net revenues were $31.9
million, an increase of 10.6% from $28.8 million in the third quarter of 2011.
Higher volumes from the Company's top customers and greater
cross-selling of services were major drivers of this growth. Net
revenues this quarter were partially impacted by a deferral in
revenue of certain integrated services projects.
Net revenues from the Company's top-10 customers increased by
11.3% compared with the same period last year, representing
approximately 62.6% of total net revenues, compared with 62.2% in
the same quarter last year. The growth was a result of global
leading pharmaceutical and biotech companies expanding their scope
of work and business volumes with the Company. This increase was
driven by investments in expanding facilities and adding new
capabilities during 2011, as well as the continued enhancement of
the Company's integrated service platform. The growth demonstrates
continuing progress in long-term efforts to become a preferred
business partner of global leading pharmaceutical and biotech
companies. Net revenues from top-10 customers this quarter were
partially impacted by a deferral in revenue of certain integrated
services projects.
Net revenues from FTE-based services were $23.8 million, an increase of 14.6% from
$20.8 million in the third quarter of
2011. The growth was largely a result of global leading
pharmaceutical and biotech companies expanding their scope of work
and business volumes with the Company.
Net revenues from fee-for-service-based services were
$8.1 million, which was consistent
with the third quarter of 2011. The slower growth of non-FTE
projects relative to FTE-based services was largely due to
intensified market competition in more mature business segments and
budget constraints from large pharmaceutical and biotech companies,
as well as a deferral in revenue of certain integrated services
projects.
Gross profit was $8.8
million, a decrease of 2.3% from $9.0
million in the third quarter of 2011. The decrease was
primarily due to costs associated with new facilities, some of
which have not yet reached full utilization. Specifically, the
manufacturing business operating at the Fengxian facility will take
several additional quarters to reach full utilization, despite
steady progress. Other factors impacting quarterly performance
include higher labor costs as a percentage of total net revenues
due to slower revenue increases combined with recent headcount
increases to support near future business growth. The increase in
net revenues and cost savings resulting from the value-added-tax
("VAT") reform in Shanghai,
effective January 1, 2012, helped to
partially offset these factors. The Company has also begun to
streamline its organizational structure and optimize human
resources to improve employee productivity and efficiency.
Non-GAAP gross profit was $8.9
million, a decrease of 7.2% from $9.6
million in the third quarter of 2011. This was due to the
reasons mentioned in the above discussion of GAAP gross profit.
Gross margin was 27.5%, compared with 31.2% in the third
quarter of 2011. This was primarily due to the reasons mentioned in
the above discussion of GAAP gross profit. These factors were
partially offset by the cost savings from the aforementioned VAT
reform. The investments and upgrades to facilities made during
2011, including the build-up of the Fengxian facility and the
Charles River asset acquisition, are critical in positioning the
Company for future growth and capturing more higher-value
added services.
Non-GAAP gross margin was 28.1%, compared with 33.4% in the
third quarter of 2011. This decrease was due to the reasons
mentioned in the above discussion of GAAP gross margin.
Operating expenses (selling and marketing, general and
administrative) were $7.6
million, an increase of 9.4% from $6.9 million in the third quarter of 2011. This
was primarily due to higher labor costs resulting from the addition
of senior leaders across various service offerings during the first
half of 2012 and higher listed company-related professional fees.
The Company will continue to optimize its senior scientific team
and operational team structure in the coming months to enhance the
talent pool throughout its service offerings. The Company believes
that these improvements will be critical in positioning the Company
for expansion into new capabilities and maintaining competitiveness
in the market.
Non-GAAP operating expenses were $6.5
million, an increase of 12.9% from $5.8 million in the third quarter of 2011. This
was primarily due to the reasons mentioned in the above discussion
of operating expenses, excluding the impact of share-based
compensation expenses.
Profit from operations was $1.2
million, a decrease of 41.6% from $2.1 million in the third quarter of 2011,
primarily due to facility expansion costs, higher labor costs as a
percentage of total net revenues resulting from an increase in the
number of scientific research staff members, including senior
scientists, during the first half of 2012, and higher listed
company-related professional fees. These factors were partially
offset by an increase in net revenues and cost savings from the
aforementioned VAT reform.
Non-GAAP profit from operations was $2.4
million, a decrease of 37.0% from $3.9 million in the third quarter of 2011. This
was due to the reasons mentioned in the above discussion of GAAP
profit from operations, excluding the impact of share-based
compensation expenses.
Operating margin was 3.8%, compared with 7.2% in the
third quarter of 2011. This decrease was primarily due to
facility expansion costs, higher labor costs as a percentage of
total net revenues, and higher listed company-related professional
fees. These were partially offset by cost savings resulting from
the aforementioned VAT reform.
Non-GAAP operating margin was 7.7%, compared with 13.4% in the
third quarter of 2011. This decrease was primarily due to the
reasons mentioned in the above discussion of GAAP operating margin,
excluding the impact of share-based compensation expenses.
Net income decreased by 39.5% year over year to
$1.6 million, primarily due to lower
profit from operations and lower other income, including a smaller
foreign exchange gain, an increased foreign exchange forward
contract gain and lower interest income.
Non-GAAP net income was $2.8
million, a decrease of 36.3% from $4.4 million in the third quarter of 2011. This
was primarily due to the reasons mentioned in the above discussion
of GAAP net income.
Diluted earnings per ADS were $0.08, which compares with $0.14 in the third quarter of 2011.
Non-GAAP diluted earnings per ADS were $0.15, which compares with $0.24 in the third quarter of 2011.
Financial Position
As of September 30, 2012, the
Company had cash and cash equivalents of $34.3 million and no debt outstanding.
During the quarter, capital expenditures totalled
$5.0 million, primarily from purchase
of equipment and investment in leasehold improvements of various
facilities.
Full Year 2012 Guidance
The Company revises its previously announced guidance for net
revenues and capital expenditures for the full year 2012, and
reconfirms its guidance for non-GAAP gross margin for the full year
2012. The Company expects:
- Net revenues to be approximately $125.0 – $128.0
million, which represents growth of approximately 11.1% –
13.8% compared with the full year of 2011.
- Non-GAAP gross margin to be in the range of 30.0% – 31.5%.
- Capital expenditures to be approximately $19.0 - $21.0 million.
This reflects the Company's current view and is subject to
change.
Conference Call
ShangPharma will host a conference call and live webcast at
8:00AM U.S. Eastern Time on
November 20, 2012 (9:00PM Beijing Time on November 20, 2012).
The dial-in details for the live conference call are as
follows:
-
International:
|
+1-718-354-1231
|
|
|
- United
States:
|
+1-866-519-4004
|
- United
Kingdom:
|
080-8234-6646
|
- Hong Kong:
|
+852-2475-0994
|
|
|
Passcode:
SHP
|
|
A live and archived webcast of the conference call will be
available on the investor relations section of the Company's
website at http://www.shangpharma.com.
A telephone replay of the call will be available for seven days
from November 20, 2012, 11:00AM U.S. Eastern Time, to November 27, 2012, 11:59PM U.S. Eastern Time. The dial-in details
for the replay are as follows:
-
International:
|
+61-2-8199-0299
|
- Passcode:
|
68445369
|
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 2012
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 earnings per ADS, each of
which excludes 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
Unaudited 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 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
William Dai
Chief Financial Officer
E-mail: ir@shangpharma.com
Brunswick Group
Josh Gartner
E-mail: shangpharma@brunswickgroup.com
Phone: +86-10-5960-8600
SHANGPHARMA
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands of U.S.
dollars, except for ordinary share data)
|
|
|
December 31,
|
September 30,
|
|
2011
|
2012
|
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
37,778
|
34,312
|
Restricted
cash
|
2,562
|
1,198
|
Accounts
receivable, net
|
23,974
|
29,446
|
Amounts due from
related parties
|
503
|
1,120
|
Inventories
|
2,842
|
3,002
|
Prepayments and
others
|
4,425
|
2,687
|
Deferred tax
assets
|
264
|
534
|
Total current
assets
|
72,348
|
72,299
|
Non-current
assets:
|
|
|
Derivative
assets
|
7
|
-
|
Property, plant,
equipment and software, net
|
86,521
|
89,498
|
Land use right,
net
|
6,634
|
6,487
|
Other long-term
assets
|
559
|
663
|
Amounts due from
related parties
|
225
|
224
|
Deferred tax
assets
|
609
|
659
|
Total non-current
assets
|
94,555
|
97,531
|
Total
assets
|
166,903
|
169,830
|
|
|
|
LIABILITIES
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
16,307
|
15,486
|
Amounts due to
related parties
|
123
|
1,381
|
Salary and
welfare payable
|
3,864
|
2,865
|
Income tax
payable
|
3,241
|
1,407
|
Advance from
customers
|
1,596
|
726
|
Other payables
and accruals
|
5,613
|
4,146
|
Total current
liabilities
|
30,744
|
26,011
|
Non-current
liabilities:
|
|
|
Advanced
subsidies
|
3,121
|
4,077
|
Total non-current
liabilities
|
3,121
|
4,077
|
Total
liabilities
|
33,865
|
30,088
|
Commitments and
contingencies
|
|
|
|
|
|
EQUITY
|
|
|
Ordinary shares
(US$0.001 par value; 500,000,000 shares authorized; 336,109,400 and
337,973,959 shares issued and outstanding as of December 31,
2011 and September 30, 2012, respectively)
|
336
|
336
|
Additional paid in
capital
|
84,924
|
89,183
|
Statutory
reserves
|
8,552
|
8,552
|
Retained
earnings
|
33,013
|
36,723
|
Accumulated other
comprehensive income
|
7,305
|
6,639
|
Less: Treasury stock, at
cost; 2,237,148 and 3,681,666 shares as of
December 31, 2011 and September 30, 2012, respectively
|
(1,092)
|
(1,691)
|
Total
equity
|
133,038
|
139,742
|
Total liabilities and
equity
|
166,903
|
169,830
|
SHANGPHARMA
CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(in thousands of U.S.
dollars, except for ADS(1) data and per ADS
data)
|
|
|
Three months
ended
|
Nine months
ended
|
|
September 30,
|
September 30,
|
|
2011
|
2012
|
% Change
|
2011
|
2012
|
% Change
|
|
|
|
|
|
|
|
Net revenue
|
28,836
|
31,885
|
10.6%
|
81,118
|
94,465
|
16.5%
|
Cost of
revenue
|
(19,843)
|
(23,101)
|
16.4%
|
(54,977)
|
(67,526)
|
22.8%
|
Gross profit
|
8,993
|
8,784
|
-2.3%
|
26,141
|
26,939
|
3.1%
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Selling and marketing
|
(654)
|
(673)
|
2.9%
|
(1,715)
|
(2,262)
|
31.9%
|
General and administrative
|
(6,326)
|
(6,882)
|
8.8%
|
(17,107)
|
(21,425)
|
25.2%
|
Other operating income(2)
|
157
|
65
|
|
157
|
650
|
|
Other operating expenses(2)
|
(103)
|
(87)
|
|
(103)
|
(322)
|
|
Total operating
expenses
|
(6,926)
|
(7,577)
|
9.4%
|
(18,768)
|
(23,359)
|
24.5%
|
|
|
|
|
|
|
|
Profit from
operations
|
2,067
|
1,207
|
-41.6%
|
7,373
|
3,580
|
-51.4%
|
|
|
|
|
|
|
|
Other income (expenses),
net(2):
|
867
|
682
|
-21.3%
|
3,270
|
18
|
-99.4%
|
Income from operations
before income taxes
|
2,934
|
1,889
|
-35.6%
|
10,643
|
3,598
|
-66.2%
|
|
|
|
|
|
|
|
Income taxes
|
(341)
|
(321)
|
-5.9%
|
(1,687)
|
111
|
-106.6%
|
Net income
|
2,593
|
1,568
|
-39.5%
|
8,956
|
3,709
|
-58.6%
|
|
|
|
|
|
|
|
Net income per
ADS
|
|
|
|
|
|
|
Basic
|
0.14
|
0.08
|
-42.9%
|
0.48
|
0.20
|
-58.3%
|
Diluted
|
0.14
|
0.08
|
-42.9%
|
0.48
|
0.20
|
-58.3%
|
|
|
|
|
|
|
|
Weighted average ADS
outstanding
|
|
|
|
|
|
|
Basic
|
18,663,303
|
18,673,225
|
|
18,653,889
|
18,576,623
|
|
Diluted
|
18,715,098
|
18,688,274
|
|
18,827,730
|
18,588,715
|
|
|
|
|
|
|
|
|
Net income
|
2,593
|
1,568
|
-39.5%
|
8,956
|
3,709
|
-58.6%
|
Other comprehensive
income:
|
|
|
|
|
|
|
Currency translation
adjustments, net
|
1,099
|
(378)
|
-134.4%
|
2,714
|
(666)
|
-124.5%
|
Comprehensive
income
|
3,692
|
1,190
|
-67.8%
|
11,670
|
3,043
|
-73.9%
|
(1) Assumes all
outstanding ordinary shares are represented by ADSs. Each ADS
represents 18 ordinary shares.
(2) Certain government
subsidies and the related costs were reclassified to other
operating income/expense since the third quarter of 2011 as a
result of an accounting policy change to better reflect the nature
of such transactions.
The change is accounting
policy was not retroactively applied due to
immateriality.
|
SHANGPHARMA
CORPORATION
RECONCILIATION OF
UNAUDITED GAAP TO NON-GAAP FINANCIAL DATA
(in thousands of U.S.
dollars, except for ADS(3) data and per ADS
data)
|
|
|
Three months
ended
|
Nine months
ended
|
|
September 30,
|
September 30,
|
|
2011
|
2012
|
%
|
2011
|
2012
|
%
|
GAAP gross
profit
|
8,993
|
8,784
|
-2.3%
|
26,141
|
26,939
|
3.1%
|
GAAP gross
margin
|
31.2%
|
27.5%
|
|
32.2%
|
28.5%
|
|
Adjustments:
|
|
|
|
|
|
|
Share-based compensation
|
643
|
161
|
-75.0%
|
1,631
|
806
|
-50.6%
|
Non-GAAP gross
profit
|
9,636
|
8,945
|
-7.2%
|
27,772
|
27,745
|
-0.1%
|
Non-GAAP gross
margin
|
33.4%
|
28.1%
|
|
34.2%
|
29.4%
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
(6,926)
|
(7,577)
|
9.4%
|
(18,768)
|
(23,359)
|
24.5%
|
Adjustments:
|
|
|
|
|
|
|
Share-based compensation
|
1,164
|
1,074
|
-7.7%
|
2,894
|
3,453
|
19.3%
|
Non-GAAP operating
expenses
|
(5,762)
|
(6,503)
|
12.9%
|
(15,874)
|
(19,906)
|
25.4%
|
|
|
|
|
|
|
|
GAAP profit from
operations
|
2,067
|
1,207
|
-41.6%
|
7,373
|
3,580
|
-51.4%
|
GAAP operating
margin
|
7.2%
|
3.8%
|
|
9.1%
|
3.8%
|
|
Adjustments:
|
|
|
|
|
|
|
Share-based compensation
|
1,807
|
1,235
|
-31.7%
|
4,525
|
4,259
|
-5.9%
|
Non-GAAP profit from
operations
|
3,874
|
2,442
|
-37.0%
|
11,898
|
7,839
|
-34.1%
|
Non-GAAP operating
margin
|
13.4%
|
7.7%
|
|
14.7%
|
8.3%
|
|
|
|
|
|
|
|
|
GAAP net
income
|
2,593
|
1,568
|
-39.5%
|
8,956
|
3,709
|
-58.6%
|
GAAP net
margin
|
9.0%
|
4.9%
|
|
11.0%
|
3.9%
|
|
Adjustments:
|
|
|
|
|
|
|
Share-based compensation
|
1,807
|
1,235
|
-31.7%
|
4,525
|
4,259
|
-5.9%
|
Non-GAAP net
income
|
4,400
|
2,803
|
-36.3%
|
13,481
|
7,968
|
-40.9%
|
Non-GAAP net
margin
|
15.3%
|
8.8%
|
|
16.6%
|
8.4%
|
|
|
|
|
|
|
|
|
GAAP net income per
ADS, diluted :
|
0.14
|
0.08
|
-42.9%
|
0.48
|
0.20
|
-58.3%
|
Adjustments:
|
|
|
|
|
|
|
Share-based compensation
|
0.10
|
0.07
|
|
0.23
|
0.23
|
|
Non-GAAP net income
per ADS, diluted:
|
0.24
|
0.15
|
-37.5%
|
0.71
|
0.43
|
-39.4%
|
|
|
|
|
|
|
|
Weighted average ADS
outstanding - basic (Non-GAAP)
|
18,663,303
|
18,673,225
|
|
18,653,889
|
18,576,623
|
|
Weighted average ADS
outstanding - diluted (Non-GAAP)
|
18,715,098
|
18,688,274
|
|
18,827,730
|
18,588,715
|
|
(3) Assumes all
outstanding ordinary shares are represented by ADSs. Each ADS
represents 18 ordinary shares.
|
SOURCE ShangPharma Corporation