BEIJING, Nov. 2, 2016 /PRNewswire/ -- China Biologic
Products, Inc. (NASDAQ: CBPO, "China Biologic" or the "Company"), a
leading fully integrated plasma-based biopharmaceutical company in
China, today announced its
unaudited financial results for the third quarter of 2016.
Third Quarter 2016 Financial Highlights
- Total sales in the third quarter of 2016 increased by
9.8% in USD terms to $86.5 million
from $78.8 million in the same
quarter of 2015, or increased by 17.3% in RMB terms during the same
period.
- Gross profit increased by 15.9% to $58.9 million from $50.8
million in the same quarter of 2015. Gross margin
increased to 68.1% from 64.5% in the same quarter of 2015.
- Income from operations increased by 13.4% to
$39.7 million from $35.0 million in the same quarter of 2015.
Operating margin increased to 45.9% from 44.5% in the same
quarter of 2015.
- Net income attributable to the Company increased by
24.0% to $28.4 million from
$22.9 million in the same quarter of
2015. Fully diluted net income per share increased to
$1.01 from $0.82 in the same quarter of 2015.
- Non-GAAP adjusted net income attributable to the Company
increased by 39.8% in RMB terms, or 30.9% in USD terms, to
$34.3 million from $26.2 million in the same quarter of 2015.
Non-GAAP adjusted net income per share increased to
$1.22 from $0.94 in the same quarter of 2015.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are very pleased to achieve another quarter of strong financial
results with higher-than-expected gross margin and profit growth.
Third quarter revenue increased by 9.8% in USD terms, or 17.3% in
RMB terms, and would have been higher were it not for the delay of
certain new regional drug tenders. Albumin sales were largely
in-line with our expectation, and IVIG production and sales were
lower than anticipated, compared to the unusually higher levels in
the corresponding period of last year as we continued to allocate
more production capacity to tetanus immunoglobulin. We are pleased
with the increase in our gross margin, which was primarily
attributable to higher pricing for most of our products, a more
profitable product mix, and a higher sales contribution from
products made from in-house sourced raw plasma at lower cost.
The overall earnings contribution from our Guizhou facility continued to increase due to
several capital injections made over the past twelve months. Our
Huitian facility also began contributing to our earnings growth in
the third quarter after a two-year production suspension for
facility upgrade."
"We are also very pleased to complete the AIC registration of
our full equity ownership in our Guizhou facility following a negotiated
capital withdrawal by its two former minority shareholders, which
will allow us to fully capture the high growth potential and
receive the full benefits and earnings accretion of existing and
future products produced at this facility. In addition,
through the successful execution of our plasma outsourcing
arrangements for the first year, our partner delivered more plasma
than the contractual volume, and we expect to market more finished
products made from such plasma in the fourth quarter and next year.
On the R&D front, we are making significant progress with our
commitment to serving the broader needs of coagulation-deficient
patients. We recently received approval from the CFDA to commence
clinical trials of two new 'first-to-market' products in
China--Human Coagulation Factor IX
and Human Antithrombin III, both of which will further improve our
plasma fractionation utilization and contribute to our long-term
financial growth."
"We anticipate ongoing favorable business momentum heading into
the fourth quarter and are pleased to raise our full year sales and
adjusted net income forecast," concluded Mr. Gao.
Third Quarter 2016 Financial Performance
Total sales in the third quarter of 2016 increased by
9.8% in USD terms to $86.5 million
from $78.8 million in the same
quarter of 2015, or increased by 17.3% in RMB terms during the same
period. The increase was primarily attributable to the sales price
increase in human tetanus immunoglobulin products and the sales
volume increase in human albumin products and human tetanus
immunoglobulin products, partially offset by the sales volume
decrease in IVIG products.
During the third quarter of 2016, human albumin and IVIG
products remained the Company's two largest sales contributors,
while the revenue contribution from the Company's other products
continued to grow. As a percentage of total sales, sales from human
albumin and IVIG products decreased to 37.0% and 33.1%,
respectively, in the third quarter of 2016, compared to 38.7% and
41.4% in the same quarter of 2015, while sales from hyper-immune
products increased to 15.5% of total sales, compared to 6.3% in the
same quarter of 2015.
The sales volume of human albumin products increased by 11.4%
due to enhanced production volume, while the sales volume of IVIG
products decreased by 10.6% mainly due to the depletion of
previously reserved IVIG pastes in 2015 and the allocation of more
production to human tetanus immunoglobulin products, whose sales
volume increased by 49.3% for the third quarter of 2016, as
compared to the same period in 2015.
The average price for human albumin products, excluding foreign
exchange impact, would have increased by 0.9% in RMB terms, or
decreased by 5.5% in USD terms, in the third quarter of 2016
compared to the same quarter of 2015. The average price for IVIG
products, excluding foreign exchange impact, would have increased
by 4.8% in RMB terms, or decreased by 1.8% in USD terms, in the
third quarter of 2016 compared to the same quarter of 2015.
Revenue from other plasma products including human coagulation
factor VIII and human prothrombin complex concentrate increased by
34.4% in the third quarter of 2016, representing 5.0% of total
sales, compared to the same quarter of 2015. Revenue from placenta
polypeptide products increased by 6.6% in the third quarter of
2016, representing 9.4% of total sales, compared to the same
quarter of 2015.
Cost of sales was $27.6
million in the third quarter of 2016, compared to
$28.0 million in the same quarter of
2015. As a percentage of total sales, cost of sales decreased to
31.9% from 35.5% in the same quarter of 2015, mainly due to the
increase of the average sales price of certain plasma products and
a more profitable product mix.
Gross profit increased by 15.9% to $58.9 million in the third quarter of 2016 from
$50.8 million in the same quarter of
2015. Gross margin was 68.1% and 64.5% in the third quarter
of 2016 and 2015, respectively.
Total operating expenses in the third quarter of 2016
increased by 20.9% to $19.1 million
from $15.8 million in the same
quarter of 2015, mainly due to the increases of general and
administrative expenses. As a percentage of total sales, total
operating expenses increased to 22.2% in the third quarter of 2016
from 20.0% in the same quarter of 2015.
Selling expenses in the third quarter of 2016 increased
by 11.1% to $3.0 million from
$2.7 million in the same quarter of
2015. As a percentage of total sales, selling expenses remained
stable at 3.5% compared with 3.4% in the same quarter of 2015.
General and administrative expenses in the third quarter
of 2016 were $15.1 million compared
to $11.5 million in the same quarter
of 2015. As a percentage of total sales, general and administrative
expenses increased to 17.5% in the third quarter of 2016 from 14.6%
in the same quarter of 2015. The increase in general and
administrative expenses was mainly due to a $3.4 million increase in share-based compensation
expenses. Excluding the impact of share-based compensation
expenses, general and administrative expenses would have been 9.4%
and 10.0% as a percentage of total sales in the third quarter of
2016 and 2015, respectively.
Research and development expenses in the third quarter of
2016 decreased to $1.0 million from
$1.6 million in the same quarter of
2015. As a percentage of total sales, research and development
expenses decreased to 1.2% in the third quarter of 2016 from 2.0%
in the same quarter of 2015. During the third quarter of 2016, the
Company received a government grant of $0.5
million and recognized it as a reduction of research and
development expenses.
Income from operations for the third quarter of 2016
increased by 13.4% to $39.7 million
from $35.0 million in the same period
of 2015. Operating margin increased to 45.9% in the third
quarter of 2016 from 44.5% in the same quarter of 2015.
Income tax expense in the third quarter of 2016 was
$7.2 million, compared to
$6.0 million in the same quarter of
2015, representing an increase of 20.0%. The effective income tax
rate remained stable at 16.8% in the third quarters of 2016
compared with the same period of 2015.
Net income attributable to the Company increased
by 24.0% to $28.4 million in the
third quarter of 2016 from $22.9
million in the same quarter of 2015. Net margin
increased to 32.8% from 29.0% in the same quarter of 2015. Fully
diluted net income per share increased to $1.01 in the third quarter of 2016 from
$0.82 in the same quarter of
2015.
Non-GAAP adjusted net income attributable to the Company
increased by 39.8% in RMB terms, or 30.9% in USD terms, to
$34.3 million in the third quarter of
2016 from $26.2 million in the same
quarter of 2015. Non-GAAP net margin increased to 39.7% from
33.2% in the same quarter of 2015. Non-GAAP adjusted net income
per diluted share increased to $1.22 in the third quarter of 2016 from
$0.94 in the same quarter of
2015.
Non-GAAP adjusted net income and diluted earnings per share for
the third quarter of 2016 exclude $5.9
million of non-cash employee share-based compensation
expenses.
First Nine Months 2016 Financial Performance
Total sales in the first nine months of 2016 increased by
15.5% in USD terms, to $263.5 million
from $228.2 million in the same
period of 2015, or increased by 23.1% in RMB terms during the same
period. The increase in sales was primarily driven by the increase
in sales volume of human albumin products, human tetanus
immunoglobulin products and placenta polypeptide products, as well
as an increase in the sales price of human tetanus immunoglobulin
products. As a percentage of total sales, sales from human albumin
products and IVIG products accounted for 38.9% and 35.5%,
respectively, for the first nine months of 2016.
Cost of sales was $93.2
million in the first nine months of 2016, compared to
$79.5 million in the same period of
2015. Cost of sales as a percentage of total sales was 35.4%, as
compared to 34.8% in the same period of 2015. The increase in cost
of sales as a percentage of total sales was mainly due to the
higher cost of outsourced raw plasma, which was partially offset by
the increase in the average sales price of certain plasma products
and a more profitable product mix.
Gross profit increased by 14.5% to $170.3 million in the first nine months of 2016
from $148.7 million in the same
period of 2015. Gross margin was 64.6% in the first nine
months of 2016, compared to 65.2% in the same period of
2015.
Total operating expenses in the first nine months of 2016
increased 28.4% to $49.7 million from
$38.7 million in the same period of
2015. As a percentage of total sales, total operating expenses
increased to 18.9% for the first nine months of 2016 from 17.0% in
the same period of 2015, mainly due to $8.7
million increase of share-based compensation expenses.
Income from operations in the first nine months of 2016
increased by 9.7% to $120.7 million
from $110.0 million in the same
period of 2015.
Income tax expense in the first nine months of 2016 was
$20.8 million, as compared to
$17.8 million in the same period of
2015. The effective income tax rate was 16.4% and 15.9% for the
first nine months of 2016 and 2015, respectively.
Net income attributable to the Company increased
by 17.2% to $85.3 million for the
first nine months of 2016 from $72.8
million in the same period of 2015. Net margin was
32.4% and 31.9% for the first nine months of 2016 and 2015.
Fully diluted net income per
share for the first nine months of 2016 increased to
$3.05 from $2.68 for the same period of
2015.
Non-GAAP adjusted net income attributable to the Company
increased by 33.7% in RMB terms, or 25.3% in USD terms, to
$99.9 million for the first nine
months of 2016 from $79.7 million in
the same period of 2015. Non-GAAP net margin increased to
37.9% from 34.9% in the same period of 2015. Non-GAAP adjusted
net income per diluted share increased to $3.57 for the first nine months of 2016 from
$2.94 in the same period of 2015.
Non-GAAP adjusted net income and diluted earnings per share for
the first nine months of 2016 exclude $14.6
million of non-cash employee share-based compensation
expenses.
As of September 30, 2016, the
Company had $203.2 million in cash
and cash equivalents, primarily consisting of cash on hand and
demand deposits.
Net cash provided by operating activities for the first
nine months of 2016 was $87.3
million, as compared to $72.3
million for the same period in 2015. The increase in net
cash provided by operating activities was largely consistent with
the improvements in the results of operations and the increase of
net non-cash operating expenses for the first nine months of 2016,
as compared to the same period in 2015. Our cash inflows from
operating activities are negatively affected by increases of
accounts receivable and inventory.
Accounts receivable increased by $16.1
million during the first nine months of 2016, as compared to
$16.2 million during the same period
in 2015. The accounts receivable turnover days for plasma products
remained stable at 45 days during the first nine months of 2016
compared with the same period in 2015. To enhance the business
relationship with certain key customers, the Company granted longer
credit term to certain qualified hospitals during the nine months
ended September 30, 2016 and granted
special credit term extensions to certain distributors of rabies
immunoglobulin products in the same period of 2015.
Inventories increased by $24.5
million in the first nine months of 2016, as compared to
$26.1 million during the same period
in 2015. The inventory turnover days increased to 398 days for the
nine months ended September 30, 2016
from 387 days for the same period in 2015, mainly due to an
increase in the inventory of outsourced raw plasma.
Net cash used in investing activities for the first nine
months of 2016 was $44.1 million, as
compared to $55.8 million for the
same period in 2015. During the first nine months of 2016 and 2015,
the Company paid $42.5 million and
$30.5 million, respectively, for the
acquisition of property, plant and equipment, intangible assets and
land use rights for Shandong Taibang and Guizhou Taibang. During
the first nine months of 2016 and 2015, the Company granted a loan
of $12.3 million and $28.5 million, respectively, to our plasma
outsourcing partner. In addition, the Company received a refund of
$10.3 million from the local
government of Guiyang with respect
to deposits of land use rights.
Net cash provided by financing activities for the first
nine months of 2016 was $19.6
million, as compared to $49.7
million for the same period in 2015. The net cash provided
by financing activities in the first nine months of 2016 mainly
consisted of the proceeds of $3.2
million from stock options exercised and the maturity of a
$37.8 million time deposit as a
security for a bank loan which was fully repaid in June 2015, partially offset by a dividend of
$7.9 million paid to the minority
shareholder by Shandong Taibang and payment of $13.5 million to former minority shareholders of
Guizhou Taibang in connection with their capital withdrawal from
Guizhou Taibang. The net cash provided by financing activities for
the first nine months of 2015 mainly consisted of net proceeds of
$80.6 million from a follow-on
offering of the Company's stock in June
2015 and proceeds of $63.2
million from the maturity of deposit used as security for
bank loans, and proceeds of $7.2
million from stock options exercised, partially offset by
repayments of bank loans of $97.9
million and a dividend of $3.7
million held in escrow by a trial court in connection with
disputes with a former minority shareholder of Guizhou Taibang.
Financial Outlook
For the full year of 2016, due to better-than-expected market
price increases for new tenders for certain higher margin products
during the first nine months of the year, the Company is raising
its full year total sales growth forecast to 22% to 24% from 21% to
23% in RMB terms. Due to favorable pricing for certain
products, a higher sales contribution from products made from
in-house sourced raw plasma at lower cost and enhanced
earnings contribution at our Guizhou facility after acquiring full
ownership, the Company is raising its full year forecast of
non-GAAP adjusted net income growth to 33% to 35% from 24% to 26%
in RMB terms over the Company's 2015 financial results.
This guidance does not factor in any potential foreign currency
translation impact. Having previously adopted an exchange rate of
approximately RMB6.21 = $1.00 based on weighted average quarterly
exchange rates in 2015 in translating 2015 financial results, the
Company expects that the total sales and non-GAAP adjusted net
income in USD terms in 2016 will be adversely affected by the
foreign currency translation impact.
This guidance assumes only organic growth, excluding potential
acquisitions, and necessarily assumes no significant adverse
product price changes during the fourth quarter of 2016. This
forecast reflects the Company's current and preliminary views,
which are subject to change.
Conference Call
The Company will host a conference call at 7:30 am Eastern Time on Thursday, November 3, 2016, which is 7:30 pm Beijing Time on November 3, 2016, to discuss third quarter 2016
results and answer questions from investors. Listeners may access
the call by dialing:
US:
|
1 888 346
8982
|
International:
|
1 412 902
4272
|
Hong Kong:
|
800 905
945
|
China:
|
400 120
1203
|
A telephone replay will be available one hour after the
conclusion of the conference all through November 10, 2016. The dial-in details are:
US:
|
1 877 344
7529
|
International:
|
1 412 317
0088
|
Passcode:
|
10095495
|
A live and archived webcast of the conference call will be
available through the Company's investor relations website at
http://chinabiologic.investorroom.com.
About China Biologic Products, Inc.
China Biologic Products, Inc. (NASDAQ: CBPO) is a leading fully
integrated plasma-based biopharmaceutical company in China. The Company's products are used as
critical therapies during medical emergencies and for the
prevention and treatment of life-threatening diseases and
immune-deficiency related diseases. China Biologic is headquartered
in Beijing and manufactures over
20 different dosage forms of plasma products through its majority
owned subsidiary, Shandong Taibang Biological Products Co., Ltd.,
and its wholly owned subsidiary, Guizhou Taibang Biological
Products Co., Ltd. The Company also has an equity investment in
Xi'an Huitian Blood Products Co., Ltd. The Company sells its
products to hospitals, distributors and other healthcare facilities
in China. For additional
information, please see the Company's website
www.chinabiologic.com.
Non-GAAP Disclosure
This news release contains non-GAAP financial measures that
exclude non-cash compensation expenses related to options and
restricted shares granted to employees and directors under the
Company's 2008 Equity Incentive Plan. To supplement the Company's
unaudited condensed consolidated financial statements presented on
a GAAP basis, the Company has provided non-GAAP financial
information excluding the impact of these items in this release.
The Company's management believes that these non-GAAP measures
provide investors with a better understanding of how the results
relate to the Company's performance. A reconciliation of the
adjustments to GAAP results appears in the table accompanying this
news release. This additional non-GAAP information is not meant to
be considered in isolation or as a substitute for GAAP financials.
The non-GAAP financial information that the Company provides also
may differ from the non-GAAP information provided by other
companies.
In addition, as the Company evaluates certain key items of its
financial results on a local currency basis (i.e., in RMB) in
addition to the reporting currency (i.e., in USD), this news
release contains local currency information that eliminates the
impact of fluctuations in foreign currency exchange rates. The
Company believes that, given its operations primarily based in
China, providing local currency
information on such key items enhances the understanding of its
financial results and evaluation of performance in comparison to
prior periods. Changes in local currency percentages are calculated
by comparing financial results denominated in RMB from period to
period.
Safe Harbor Statement
This news release may contain certain "forward-looking
statements" relating to the business of China Biologic Products,
Inc. and its subsidiaries. All statements, other than statements of
historical fact included herein, are "forward-looking statements."
These forward-looking statements are often identified by the use of
forward-looking terminology such as "intend," "believe," "expect,"
"are expected to," "will," or similar expressions, and involve
known and unknown risks and uncertainties. Among other things, the
positive impact on the Company's earnings results driven by the
acquisition of full ownership in Guizhou Taibang the management's
quotations and forecast of the Company's financial performance in
this news release contain forward-looking statements. Although the
Company believes that the expectations reflected in these
forward-looking statements are reasonable, they involve
assumptions, risks, and uncertainties, and these expectations may
prove to be incorrect.
Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release. The Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including, without limitation
potential delay or failure to complete the clinical trials for new
products, potential delay or failure to complete construction of
new collection facilities, potential inability to pass government
inspection and certification process for new collection facilities,
potential inability to achieve the designed collection capacities
at the new collection facilities, potential inability to achieve
the expected operating and financial performance, potential
inability to find alternative sources of plasma, potential
inability to increase production at permitted sites, potential
inability to mitigate the financial consequences of a temporarily
reduced raw plasma supply through cost cutting or other
efficiencies, and potential additional regulatory restrictions on
its operations and those additional risks and uncertainties
discussed in the Company's periodic reports that are filed with the
Securities and Exchange Commission and available on its website
(http://www.sec.gov). All forward-looking statements attributable
to the Company or persons acting on its behalf are expressly
qualified in their entirety by these factors. Other than as
required under the securities laws, the Company does not assume a
duty to update these forward-looking statements.
Contact:
China Biologic Products, Inc.
Mr. Ming Yin
Senior Vice President
Phone: +86-10-6598-3099
Email: ir@chinabiologic.com
ICR Inc.
Mr. Bill Zima
Phone: +86-10-6583-7511 or +1-646-405-5191
E-mail: bill.zima@icrinc.com
Financial statements follow.
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Sales
|
|
86,525,885
|
|
78,750,577
|
|
263,534,751
|
|
228,173,360
|
Cost of
sales
|
|
27,647,338
|
|
27,944,878
|
|
93,172,919
|
|
79,461,079
|
Gross
profit
|
|
58,878,547
|
|
50,805,699
|
|
170,361,832
|
|
148,712,281
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
3,017,184
|
|
2,674,434
|
|
7,271,311
|
|
7,229,782
|
General and administrative expenses
|
|
15,095,872
|
|
11,510,981
|
|
38,997,568
|
|
27,485,566
|
Research and development expenses
|
|
1,042,806
|
|
1,595,140
|
|
3,441,344
|
|
3,984,447
|
Income from
operations
|
|
39,722,685
|
|
35,025,144
|
|
120,651,609
|
|
110,012,486
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
Equity in income (loss) of an equity method investee
|
|
1,097,338
|
|
(376,260)
|
|
1,140,873
|
|
(1,137,560)
|
Interest
expense
|
|
(57,661)
|
|
(101,290)
|
|
(234,739)
|
|
(1,533,971)
|
Interest
income
|
|
1,865,805
|
|
1,383,142
|
|
4,909,014
|
|
4,227,124
|
Loss from disposal of
a subsidiary
|
|
(75,891)
|
|
-
|
|
(75,891)
|
|
-
|
Total other income,
net
|
|
2,829,591
|
|
905,592
|
|
5,739,257
|
|
1,555,593
|
|
|
|
|
|
|
|
|
|
Earnings before
income tax expense
|
|
42,552,276
|
|
35,930,736
|
|
126,390,866
|
|
111,568,079
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
7,163,708
|
|
6,052,353
|
|
20,777,575
|
|
17,792,164
|
|
|
|
|
|
|
|
|
|
Net income
|
|
35,388,568
|
|
29,878,383
|
|
105,613,291
|
|
93,775,915
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
6,997,207
|
|
7,001,833
|
|
20,271,640
|
|
21,012,934
|
|
|
|
|
|
|
|
|
|
Net income
attributable to China Biologic Products, Inc.
|
|
28,391,361
|
|
22,876,550
|
|
85,341,651
|
|
72,762,981
|
|
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
1.02
|
|
0.86
|
|
3.10
|
|
2.81
|
Diluted
|
|
1.01
|
|
0.82
|
|
3.05
|
|
2.68
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
|
|
Basic
|
|
26,957,205
|
|
25,992,776
|
|
26,748,141
|
|
25,280,538
|
Diluted
|
|
27,297,118
|
|
27,056,215
|
|
27,193,108
|
|
26,488,730
|
|
|
|
|
|
|
|
|
|
Net income
|
|
35,388,568
|
|
29,878,383
|
|
105,613,291
|
|
93,775,915
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
(3,543,648)
|
|
(15,704,961)
|
|
(14,241,256)
|
|
(15,095,718)
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
31,844,920
|
|
14,173,422
|
|
91,372,035
|
|
78,680,197
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
|
6,365,548
|
|
4,015,428
|
|
17,812,998
|
|
18,302,111
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products, Inc.
|
|
25,479,372
|
|
10,157,994
|
|
73,559,037
|
|
60,378,086
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and
cash equivalents
|
|
203,203,969
|
|
144,937,893
|
Time
deposits
|
|
-
|
|
38,032,593
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
40,188,813
|
|
25,144,969
|
Inventories
|
|
146,936,115
|
|
126,395,312
|
Prepayments and other current assets, net of allowance for doubtful
accounts
|
|
37,516,102
|
|
24,545,597
|
Loan
receivable-current
|
|
5,990,000
|
|
-
|
Deposits
related to land use rights, current portion
|
|
1,038,403
|
|
10,056,200
|
Total Current Assets
|
|
434,873,402
|
|
369,112,564
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
134,424,469
|
|
105,364,251
|
Land use rights,
net
|
|
24,196,851
|
|
23,576,300
|
Equity method
investment
|
|
9,615,421
|
|
8,718,133
|
Loan receivable-non
current
|
|
44,925,000
|
|
39,834,173
|
Other non-current
assets
|
|
2,210,485
|
|
4,861,075
|
Total Assets
|
|
650,245,628
|
|
551,466,496
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
7,154,609
|
|
9,681,835
|
Other
payables and accrued expenses
|
|
54,753,124
|
|
57,462,563
|
Income
tax payable
|
|
10,489,807
|
|
4,510,986
|
Total Current
Liabilities
|
|
72,397,540
|
|
71,655,384
|
|
|
|
|
|
Deferred
income
|
|
4,026,403
|
|
4,525,867
|
Other
liabilities
|
|
6,859,244
|
|
8,323,446
|
Total Liabilities
|
|
83,283,187
|
|
84,504,697
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common
stock:
|
|
|
|
|
par value
$0.0001;
|
|
|
|
|
100,000,000 shares
authorized;
|
|
|
|
|
29,392,529 and
28,835,053 shares issued at September 30, 2016 and December 31,
2015, respectively;
|
|
|
|
|
27,137,825 and
26,580,349 shares outstanding at September 30, 2016 and
December 31, 2015, respectively
|
|
2,939
|
|
2,884
|
Additional paid-in capital
|
|
125,123,106
|
|
105,079,845
|
Treasury
stock: 2,254,704 shares at September 30, 2016 and December31, 2015,
at cost
|
|
(56,425,094)
|
|
(56,425,094)
|
Retained
earnings
|
|
419,045,745
|
|
333,704,094
|
Accumulated other comprehensive income
|
|
(11,801,219)
|
|
(18,605)
|
Total
equity attributable to China Biologic Products,
Inc.
|
|
475,945,477
|
|
382,343,124
|
|
|
|
|
|
Noncontrolling interest
|
|
91,016,964
|
|
84,618,675
|
|
|
|
|
|
Total Stockholders' Equity
|
|
566,962,441
|
|
466,961,799
|
|
|
|
|
|
Commitments and contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
|
650,245,628
|
|
551,466,496
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
For the Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net
income
|
105,613,291
|
|
93,775,915
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Depreciation
|
6,946,084
|
|
6,103,812
|
Amortization
|
678,981
|
|
637,301
|
Loss on sale of
property, plant and equipment and land use rights
|
215,778
|
|
363,857
|
Allowance for
doubtful accounts - accounts receivable, net
|
120,535
|
|
35,162
|
Allowance for
doubtful accounts - other receivables and prepayments
|
45,537
|
|
793
|
Impairment for
other non-current assets
|
1,225,200
|
|
-
|
Write-down of
obsolete inventories
|
90,202
|
|
16,650
|
Deferred tax
benefit
|
(1,710,855)
|
|
(55,232)
|
Share-based
compensation
|
16,315,667
|
|
7,640,894
|
Equity in
(income) loss of an equity method investee
|
(1,140,873)
|
|
1,137,560
|
Loss from
disposal of a subsidiary
|
75,891
|
|
-
|
Excess tax
benefits from share-based compensation arrangements
|
-
|
|
(288,681)
|
Change
in operating assets and liabilities:
|
|
|
|
Accounts
receivable
|
(16,104,694)
|
|
(16,229,405)
|
Prepayment and
other current assets
|
(497,812)
|
|
742,586
|
Inventories
|
(24,493,697)
|
|
(26,058,886)
|
Accounts
payable
|
(2,295,197)
|
|
659,077
|
Other payables
and accrued expenses
|
(3,553,823)
|
|
4,240,643
|
Deferred
income
|
(411,765)
|
|
(284,053)
|
Income tax
payable
|
6,198,276
|
|
(170,407)
|
Net cash provided
by operating activities
|
87,316,726
|
|
72,267,586
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Payment
for property, plant and equipment
|
(40,955,964)
|
|
(26,310,114)
|
Payment
for intangible assets and land use rights
|
(1,572,919)
|
|
(4,199,308)
|
Refund
of deposits related to land use right
|
10,297,893
|
|
-
|
Proceeds
from sale of property, plant and equipment and land use
rights
|
351,524
|
|
741,980
|
Loans
lent to a third party
|
(12,332,718)
|
|
(28,450,202)
|
Proceeds
from disposal of a subsidiary
|
128,654
|
|
-
|
Receipt
of government grants related to property and equipment
|
-
|
|
2,452,864
|
Net cash used in
investing activities
|
(44,083,530)
|
|
(55,764,780)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds
from stock option exercised
|
3,214,253
|
|
7,220,483
|
Repayment of bank loans
|
-
|
|
(97,910,360)
|
Maturity
of deposit as security for bank loans
|
37,756,405
|
|
63,152,258
|
Excess
tax benefits from share-based compensation arrangements
|
-
|
|
288,681
|
Dividend
paid by subsidiaries to noncontrolling interest
shareholders
|
(7,921,952)
|
|
-
|
Payment
to noncontrolling interest shareholders in connection with their
capital withdrawal
|
(13,502,700)
|
|
-
|
Net
proceeds from reissuance of treasury stock
|
-
|
|
80,583,959
|
Dividend
to the trial court to be held in escrow as to dispute with
Jie'an
|
-
|
|
(3,690,814)
|
Net cash provided
by financing activities
|
19,546,006
|
|
49,644,207
|
|
|
|
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH
|
(4,513,126)
|
|
(4,306,828)
|
|
|
|
|
NET INCREASE IN
CASH AND CASH EQUIVALENTS
|
58,266,076
|
|
61,840,185
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
144,937,893
|
|
80,820,224
|
|
|
|
|
Cash and cash
equivalents at end of period
|
203,203,969
|
|
142,660,409
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
Cash
paid for income taxes
|
16,305,759
|
|
18,073,863
|
Cash
paid for interest expense
|
-
|
|
1,426,883
|
Noncash
investing and financing activities:
|
|
|
|
Acquisition of property, plant and
equipment included in payables
|
5,512,453
|
|
1,990,043
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
For the Three Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
34,294,223
|
|
26,184,686
|
Diluted EPS - Non
GAAP
|
1.22
|
|
0.94
|
Non-cash employee
stock compensation
|
(5,902,862)
|
|
(3,308,136)
|
Net Income
Attributable to the Company
|
28,391,361
|
|
22,876,550
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
27,297,118
|
|
27,056,215
|
|
|
|
|
|
For the Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
99,904,120
|
|
79,717,719
|
Diluted EPS - Non
GAAP
|
3.57
|
|
2.94
|
Non-cash employee
stock compensation
|
(14,562,469)
|
|
(6,954,738)
|
Net Income
Attributable to the Company
|
85,341,651
|
|
72,762,981
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
27,193,108
|
|
26,488,730
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-biologic-reports-financial-results-for-the-third-quarter-of-2016-300355826.html
SOURCE China Biologic Products, Inc.