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3SBio Inc. (SSRX) Message Board

  • tradeitholdit tradeitholdit Mar 5, 2009 12:53 PM Flag

    Granted lower tax rate, good news

    SSRX was granted a lower tax rate for 3 years due to it's recognition as a technology company.

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    • their revenue is already so low, likely only $8M in Q4, that this tax issue is minor

      • 1 Reply to play_tow
      • When you have a company that posters on this board claim "does not exist", I think it is important that the Chinese government has officially recoginized it as a "high tech enterprise", which is defined as a company that is "engaged in a field which supports the national government such as biology and new medicine technology, and when income from high-tech products or services accounts for more than 60% of the company's total income."

        Furthermore, the fact that quarterly revenue might only be $8 million does not make this a "minor issue". It is all relative. Total market cap is equal to only $103 million (at current stock price of $4.78) and this company has $108 million in cash and securities in the bank, with no long term debt. For the first 3 quarters of 2006 SSRX had net income of $7,660,000 against which they accrued an income tax charge of $1,684,000, or about 22%. At a 15% rate they will save considerably on tax paid, which will have a measurable positive affect on income per share. Instead of earning .28 per share (ADR) for the first 3 quarters of 2008, I figure they will re-state to show earnings of at least .30 per ADR for this period.