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China Medical Technologies Reports First Quarter Financial Results
Date:8/28/2007

pensation expense and amortization of acquired intangible assets (non-GAAP) was RMB68.7 million (US$9.0 million) for 1Q FY2007, representing a 37.4% increase from the corresponding period of FY2006. The lower growth rate compared to net revenues was primarily due to convertible note expenses of RMB12.1 million (US$1.6 million).

Stock compensation expense for 1Q FY2007 was RMB1.4 million (US$0.2 million) which was allocated to research and development expenses (RMB0.1 million) and general and administrative expenses (RMB1.3 million).

Amortization of acquired intangible assets for 1Q FY2007 was RMB15.6 million (US$2.1 million) which was allocated to cost of revenues.

As of June 30, 2007, the Company's cash balance was RMB1.1 billion (US$150.5 million). Net operating cash flow for 1Q FY2007 was RMB73.3 million (US$9.6 million).

As of June 30, 2007, the Company's accounts receivable was RMB215.3 million (US$28.3 million), representing an increase of 6.7% from the balance at March 31, 2007. The accounts receivable turnover days improved to 129 days from 135 days in previous quarter.

For the convenience of readers, certain RMB amounts have been translated into U.S. dollars at the rate of RMB7.612 to US$1.00, the noon buying rate in New York City for cable transfers of RMB per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York, as of Friday, June 29, 2007.

Appointment and Resignation of Director

The Company announced that it has accepted Dr. Ruyu Du's resignation as a member of the Board of Directors, including his position as a member of the nomination committee of the Company, effective September 30, 2007. Dr. Du has been a member of the Board of Directors since June 2005. He got a serious illness recently and is receiving continuous treatment. Mr. Xiaodong Wu, the Company's Chairman and CEO, stated, "We express our sincere gratitude to the contribution that Dr. Du has made to the Company and wi
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SOURCE China Medical Technologies, Inc.
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