Simcere Pharmaceutical Group (NYSE: SCR), a Nanjing, China-based manufacturer and supplier of branded generic and patent pharmaceuticals yesterday reported unaudited financial results for the quarter ended December 31, 2007 and fiscal year ended December 31, 2007.

China Nepstar Chain Drugstore Ltd. (NYSE: NPD ), the largest drugstore chain in China based on the number of directly operated stores, announced yesterday that it will acquire all of the 68 drugstores including inventory and store equipment owned by Ningbo New Century Medical Ltd. ("New Century") for cash consideration of RMB30 million (US$4.1 million). China Nepstar expects to take over the operations of the acquired stores in March 2008, upon completion of the acquisition.

3SBio (Nasdaq: SSRX) a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, reported its fourth quarter and full year results for 2007. The company missed expectations and lowered guidance for 2008. Shares dropped over 25% on the news to a new low.

Chindex International Inc. (NYSE: CHDX), a US-based healthcare company that provides healthcare services and supplies medical capital equipment, instrumentation and products to the Chinese marketplace, reported third quarter 2007 earnings Friday morning. Company shares rose near their all-time high due to strong results on both the top and bottom lines.Revenue for the quarter ended December 31, 2007 was US$36.0 million, a 19% increase same quarter in 2006. Net income from continuing operations for the quarter ended December 31, 2007 was US$3.9 million, compared to last years results of US$0.7 million. Earnings per basic share on continuing operations of US$0.50 represented a 400% increase over the quarter ended December 31, 2006.

Tongjitang Chinese Medicines Company (NYSE: TCM ), a pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, announced Monday that severe snow storms in central and southern China will negatively impact its first quarter 2008 financial results.

Wuxi Pharmatech Inc. (NYSE: WX), the Shanghai-based provider of pharmaceutical R&D outsourcing services, announced today that it will increase spending on equipment and materials by 50 to 100 percent this year. The expenditures are intended to expand research capacity and facilitate its acquisition of US-based AppTec Laboratory Services Inc.

HealthMedia (China) Co. Ltd., the Beijing based operator of digital advertising systems in healthcare facilities, has announced that it will soon launch a third funding round with the intent of raising US$60 million. As reported by ChinaVenture.com, the financing will be used to expand the company’s presence in hospitals and pharmacies, and to strengthen internal management in preparation for an overseas IPO.

Founded in 2003 by Pan Xinhua, the company’s initial growth was fueled by venture investments of a reported US$30 million from Morningside Group Hong Kong and Julian Robertson’s Tiger Management LLC. HealthMedia reports an installed base of over 10,000 liquid crystal display [LCD] screens in 20 cities throughout China. The company’s network consists of over 1,000 hospitals and 4,000 pharmacies with a reported weekly audience of 40 million people. Although the company does not release its financials, revenues for 2006 were reported to be roughly RMB 100 million (US$13.5 million) and the company is reported to be profitable.

Beijing Med-Pharm Corporation (BJGP), a distributor and marketer of pharmaceuticals in China, announced its financial information for the nine-month period ended September 30, 2007 and for the year ended December 31, 2006. The results showed revenue growth driven by acquisitions, but problems on the cost front.

The unaudited pro forma results reflect the pending completion of the acquisition of Hong Kong Fly International Health Care Limited (Hong Kong Health Care), a Hong Kong corporation that holds 51% of the equity interests of Sunstone Pharmaceutical Company Limited (Sunstone). Beijing Med-Pharm previously had acquired 49% of the company and anticipates acquiring the remaining 51% in the first quarter of 2008.

Focus Media Holding Limited (NASDAQ: FMCN) , China's largest digital media group, yesterday announced a strategic investment in Yanhuang Health Media Limited, a Beijing based operator of a liquid crystal display [LCD] based advertising network for hospitals and healthcare locations in China. Focus Media will make a cash investment of US$5 million to Yanhuang Health Media in return for a 20% equity interest.

Medtronic, Inc. (MDT), the US$12 billion (sales) medical device maker, announced that it is expanding its presence in China via joint venture. The company will partner with Shandong Weigao Group Medical Polymer Co. Ltd. [HKG: 8199 ] to market spine and orthopedic therapies in China. Medtronic also has acquired a 15% stake in Weigao for US$221 million.The joint venture will market Medtronic's spinal products and Weigao's orthopedic products in China, including therapies for the hip, shoulder, spine and trauma. Under the joint venture agreement Medtronic will have a 51% interest in the joint venture and Weigao will have a 49% interest.

"China is key to our global strategy as we continue to expand our geographic footprint," said Medtronic president and CEO Bill Hawkins. "Weigao has a broad orthopedic and trauma product line that compliments Medtronic's offerings, but even more importantly, we feel we can generate synergies with their very strong presence and reputation in China. We view Weigao as an ideal strategic partner."

Tongjitang Chinese Medicines (NYSE: TCM) has had a rough November. Following its earnings report on Nov. 7, investors hammered the stock. From a high of US$12.39 in late October, shares fell over 30% to a low of US$8.60. With revenues up 29% and net profits rising, why did investors show such a foul mood? One reason was:

Quality of Earnings

China-Biotics, Inc. (CHBT), a Shanghai-based firm that develops, manufactures, markets and distributes probiotics products, announced Friday that it has received Chinese government approval to begin construction on a proposed 150-metric-ton-per- year manufacturing facility in Shanghai. The company plans to expand production of probiotic nutritional supplements in order to meet demand for probiotics in the bulk additive market. Investors greeted the news warmly, with shares rising over 17% to US$10.00 per share.

The Company plans to begin construction in early December on the new manufacturing facility, with completion anticipated in fiscal year 2009. The US$18 million plant will be in Shanghai, and will be capable of producing 150 million metric tons of probiotics annually. Once operation, the facility will significantly expand China-Biotics production capacity from its current level of nine tons per year. The company reports the new plant will be the only large-scale probiotics plant in China supplying the domestic bulk additive market.

Beijing Med-Pharm Corporation (NASDAQ:BJGP), the Plymouth Meeting, PA based distributor of pharmaceuticals in China, announced yesterday an exclusive agreement with Shanghai Novartis Trading Limited, a wholly owned subsidiary of Novartis AG (NYSE: NVS), to register, market and distribute Enablex in the People's Republic of China.

Enablex, the extended release version of the compound darifenacin, is in a class of prescription drugs known as muscarinic receptor antagonists and is used in the treatment of urinary problems due to an overactive bladder [OAB]. Overactive bladder can result in urinary urgency, increased frequency of urination, and urinary incontinence.

China Shenghuo Pharmaceutical Holdings, Inc. (AMEX: KUN), a Kunming, China based company involved in the research, development, manufacture, and marketing of pharmaceutical, nutritional supplement and cosmetic announced its unaudited financial results for the Q3 2007. Revenues were short, and investors were not happy.For the third quarter, the company reported net sales of US$4.2 million, a decline of 17.6% from the same quarter last year. Gross profit for the second quarter was $3.2 million with gross margins of 75.3%, up from 74.4% the prior. The increased gross margin was attributed to an increase in sales prices. Net income during the quarter was $0.9 million, or $0.04 per diluted share.

The company attributed the sales decline to a tightening of credit policy, reporting that an adoption of more stringent credit policies caused a shift in its customer base and led to a shortfall in sales volume. In addition to the revenue shortfall, management also revised guidance downward. In the second quarter the company was anticipating revenues of between $24.0 million and $26.0 million and earnings of between $5.0 million and $6.0 million for the year. The company now expects full-year revenues of between $20.0 million and $22.0 million and net earnings of between $4.0 million and $5.0 million. The Company forecasts earnings per share of between $0.20 and $0.25 for the full fiscal year.

3SBio (Nasdaq: SSRX) a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, reported its unaudited results for the third quarter ended September 30, 2007. Investors in the after-hours market bid up shares on the report.

For the third quarter the company reports that revenues rose to US$7.5 million, a gain of 57.3% over the same period last year. Operating income grew 61.5% to US$2.3 million, with operating margins of 30.7%. Net income jumped 151.4% to US$3.2 million, with net margins of nearly 43%. Net income per American Depository Share [ADS] was US$0.15, up 65.7% over the same period in 2006.Revenue growth was driven by solid sales of the company's EPIAO (recombinant human erythropoietin or EPO). EPO sales were US$4.8 million or 64% of sales. This represents sales growth of 30.7% over the third quarter of 2006. Sales growth was also seen in TPIAO (recombinant human thrombopoetin), which gained 171.6% to US$1.9 million.

China Nepstar Chain Drugstore (NYSE: NPD), the largest retail drugstore chain in China based on the number of directly operated stores, jumped on its first day of NYSE trading. Nepstar priced 20,625,000 American depositary shares (ADSs) at US$16.20 each, exceeding its earlier expected range of US$11.50 to $13.50 per share.

This much anticipated IPO was greeted eagerly by investors.Nepstar has 1,791 directly operated drugstores located in 62 cities in China. The company reports that it had the highest revenue among all directly operated retail drugstore chains in China in years 2004 through 2006. With FY 2006 revenues of US$227.6 million, the company states its revenue CAGR from 2004 to 2006 was 43.4%. For the six months ending June 30, 2007 the company had revenues of US$124.3 million, an 18.4% increase over the same period last year.

Chindex International Inc. (NYSE: CHDX), a US-based healthcare company that provides healthcare services and supplies medical capital equipment, instrumentation and products to the Chinese marketplace, reported earnings after the close Wednesday. The company's earnings exceeded expectations on both the top and bottom lines.

For the Sept. 30 2007 quarter, revenues were US$32.7 million, rising 23% over the Sept. 2006 quarter. Net income grew over 45% to US$1.6 million, and earnings per basic share were US$0.22. Consensus expectations were for revenues of US$32.3 million and EPS of US$0.13, so the company's results represent a positive earnings surprise.

Tongjitang Chinese Medicines Company (NYSE: TCM), a vertically integrated pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, reported its unaudited financial results for the third quarter of 2007 yesterday. Net revenues for the quarter were US$16.9 million, up 28.6% from the same quarter last year. Net income to US$6.7 million for net margins of 39.6%; the company reported earnings per American Depository share of US$0.20. Gross profits increase 34% to US$10.8 million, with gross margins of 64%. For the quarter the company spent US$548 thousand on R&D or 3.2% of revenues, a 151% increase from the 2006 quarter. Operating margins were 23% with operating income of US$3.9 million. The bulk of the the company's revenues were derived from sales of its top osteoporosis product Xianling Gubao. Sales of Xianling Gubao increased 2% to US$10.9 million, with 60% of sales from hospitals. Sales of other products including the company's Moisturizing and Anti-itching Capsules rose 723% to US$3.4 million. Accounts receivable as of Sept. 30 were US$31 million, an increase of over 37% from year end 2006. Inventories increase 87% in that period to US$10.3 million.

Tongjitang reaffirmed its plan to acquire Guizhou Long-Life Pharmaceutical Co. Ltd. for US$5.63 million. Guizhou Long-Life produces and markets more than 10 over-the-counter and prescription traditional Chinese medicines as well as nutritional products in China. The company also made positive remarks regarding the progress of its Xianling Gubao Phase IV clinical trials, the results of which are expected by first quarter 2008.Looking forward the company reiterated revenue guidance for the full year in a range from RMB590 million to RMB620 million (US$78.7 to $82.7 million). Gross margins were forecast to remain in the mid 60% range. The company also reported a potential one time tax refund upcoming of up to RMB16.6 million (US$2.2 million).

Agria Corp. (NYSE: GRO) a Beijing-based provider of agricultural products, fell over 26% on its NYSE debut yesterday. Agria shares priced at US$16.50 Tuesday night. After hitting a high of US$17, shares fell steadily throughout the session to close near their low at US$12.06, down nearly 27% on the day.

Agria's primary products are corn seed, seedlings, and sheep breeding. The company's corn seed products are grown in seven provinces in China through contractual arrangements with village collectives and seed production companies. The sheep breeding products including sheep semen, sheep embryos, and live sheep are developed in five breeding bases located in Shanxi province. The seedlings business consists of a variety of seedlings including raspberry, blackberry, date and white bark pine sold to various customers including municipal governments and commercial nurseries.