-- 4Q16 Total Sales Up 13.6% YoY to $77.6 Million and Net Income Up 19.0% YoY to
$19.4 Million in USD terms,
or
Total Sales Up 21.7% YoY and Non-GAAP Adjusted Net Income Up
40.7% YoY in RMB terms --
-- FY16 Total Sales Up 15.1% YoY to $341.2 Million and Net Income Up 17.8% YoY to
$104.8 Million in USD terms,
or
Total Sales Up 22.8% YoY and Non-GAAP Adjusted Net Income Up
35.1% YoY in RMB terms --
--Issue Forecast for FY17 --
BEIJING, Feb. 23, 2017 /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 financial results
for the fourth quarter and fiscal year of 2016.
Fourth Quarter 2016 Financial Highlights
- Total sales in the fourth quarter of 2016 increased by
21.7% in RMB terms, or increased by 13.6% in USD terms to
$77.6 million from $68.3 million in the same quarter of 2015.
- Gross profit increased by 13.3% to $46.8 million from $41.3
million in the same quarter of 2015. Gross margin
decreased to 60.3 % from 60.5% in the same quarter of 2015.
- Income from operations increased by 2.7% to $23.2 million from $22.6
million in the same quarter of 2015. Operating margin
decreased to 29.9% from 33.1% in the same quarter of 2015.
- Net income attributable to the Company increased by
19.0% to $19.4 million from
$16.3 million in the same quarter of
2015. Fully diluted net income per share increased to
$0.69 from $0.59 in the same quarter of 2015.
- Non-GAAP adjusted net income attributable to the Company
increased by 40.7% in RMB terms, or 31.9% in USD terms, to
$26.9 million from $20.4 million in the same quarter of 2015.
Non-GAAP adjusted net income per share increased to
$0.95 from $0.74 in the same quarter of 2015.
Fiscal Year 2016 Financial Highlights
- Total sales in 2016 increased by 22.8% in RMB terms, or
15.1% in USD terms, to $341.2 million
from $296.5 million in 2015.
- Gross profit increased by 14.3% to $217.2 million from $190.0
million in 2015. Gross margin decreased to 63.6% in 2016
from 64.1% in 2015.
- Income from operations increased by 8.6% to $144.0 million from $132.6
million in 2015. Operating margin decreased to 42.1% in 2016
from 44.7% in 2015.
- Net income attributable to the Company increased by
17.8% to $104.8 million from
$89.0 million in 2015. Fully diluted
net income per share increased to $3.74 from $3.27 in
2015.
- Non-GAAP adjusted net income attributable to the Company
increased by 35.1% in RMB terms, or 26.7% in USD terms, to
$126.8 million from $100.1 million in 2015. Fully diluted non-GAAP
adjusted net income per share increased to $4.52 from $3.68 in
2015.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are pleased to maintain strong year-over-year growth, despite
the negative impact associated with RMB depreciation throughout
2016. We met our upwardly revised revenue and profit forecast from
last quarter, supported by modest product price increases,
optimization of our product portfolio mix, continued penetration
into tier-one markets, greater financial contribution from Guizhou
Taibang due to an increase in equity interest and from a
stronger-than-expected minority interest contribution from our
Xi'an Huitian facility.
We achieved a new milestone in 2016 as plasma collection volume
surpassed one thousand metric tonnes for the first time through a
combination of internal plasma collection and outsourced plasma
growth, and we were pleased to broaden our presence in Shandong Province by receiving approvals to
build new collection facilities in the province. We also achieved
significant progress on the R&D front in 2016 and received CFDA
approvals to commence clinical trials of three new products --
Human Coagulation Factor IX, Human Antithrombin III and Human
Cytomegalovirus Immunoglobulin (pH4) for Intravenous Injection
("CMV IVIG") products. Our new fractionation facility under
development in Shandong province
is expected to complete the GMP certificate inspection process and
commence operation at the end of 2017. We are working diligently to
stock sufficient inventory to ensure adequate product supply prior
to the shutdown of the older facility, and our increased inventory
position in the fourth quarter is reflective of such efforts.
Looking ahead, we expect to achieve healthy growth in 2017 even
with factoring the impact of our plant transition in Shandong and continue to focus on key
long-term operational growth strategies. We expect to achieve
revenue growth of 13%-15% and adjusted net income growth of 18%-20%
in RMB terms in 2017 over 2016." concluded Mr. Gao.
Fourth Quarter 2016 Financial Performance
Total sales in the fourth quarter of 2016 increased by
21.7% in RMB terms, or increased by 13.6% in USD terms to
$77.6 million from $68.3 million in the same quarter of 2015. The
increase was primarily attributable to the sales volume increase in
human albumin products and the sales price increase in human
tetanus immunoglobulin products.
Cost of sales was $30.8
million in the fourth quarter of 2016, compared to
$27.0 million in the same quarter of
2015. As a percentage of total sales, cost of sales was 39.7%,
compared to 39.5% in the same quarter of 2015.
Gross profit increased by 13.3% to $46.8 million in the fourth quarter of 2016 from
$41.3 million in the same quarter of
2015. Gross margin was 60.3% and 60.5% in the fourth quarter
of 2016 and 2015, respectively.
Total operating expenses in the fourth quarter of 2016
increased by $4.9 million, or 26.2%,
to $23.6 million from $18.7 million in the same quarter of 2015,
including $1.7 million, $1.6 million, and $1.6
million increases in selling expenses, general and
administrative expenses and research and development expenses,
respectively. As a percentage of total sales, total operating
expenses increased to 30.4% in the fourth quarter of 2016 from
27.4% in the same quarter of 2015.
Income from operations for the fourth quarter of 2016
increased by 2.7% to $23.2 million
from $22.6 million in the same period
of 2015. Operating margin decreased to 29.9% in the fourth
quarter of 2016 from 33.1% in the same quarter of 2015.
Net income attributable to the Company increased
by 19.0% to $19.4 million in the
fourth quarter of 2016 from $16.3
million in the same quarter of 2015. Net margin
increased to 25.0% from 23.9% in the same quarter of 2015. Fully
diluted net income per share increased to $0.69 in the fourth quarter of 2016 from
$0.59 in the same quarter of
2015.
Non-GAAP adjusted net income attributable to the Company
increased by 40.7% in RMB terms, or 31.9% in USD terms, to
$26.9 million in the fourth quarter
of 2016 from $20.4 million in the
same quarter of 2015. Non-GAAP net margin increased to 34.7%
in the fourth quarter of 2016 from 29.9% in the same quarter of
2015. Non-GAAP adjusted net income per diluted share
increased to $0.95 in the fourth
quarter of 2016 from $0.74 in the
same quarter of 2015.
Fiscal Year 2016 Financial Performance
Total sales in 2016 increased by 22.8% in RMB terms, or
15.1% in USD terms, to $341.2 million
from $296.5 million in 2015. The
increase in sales was primarily driven by the increases in sales
volume of human albumin products, placenta polypeptide and human
tetanus immunoglobulin products and the increase in sales price of
human tetanus immunoglobulin products, partially offset by the
decrease in sales volume of IVIG products.
During 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 products
increased to 39.2% in 2016 compared to 37.6% in 2015, while sales
from IVIG products decreased to 34.6%, compared to 42.2% in 2015,
and sales from hyper-immune products increased to 11.8% of total
sales, compared to 7.6% in 2015.
The sales volume of human albumin products increased by 26.2%
due to enhanced production volume at Shandong Taibang and Guizhou
Taibang as a result of increased plasma supply volume, while the
sales volume of IVIG products decreased by 3.6% 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 41.9% in 2016, as
compared to 2015.
The average price for human albumin products, excluding foreign
exchange impact, would have increased by 1.5% in RMB terms, or
decreased by 4.9% in USD terms, in 2016 compared to 2015. The
average price for IVIG products, excluding foreign exchange impact,
would have increased by 4.2% in RMB terms, or decreased by 2.3% in
USD terms, in 2016 compared to 2015.
Revenue from other plasma products including human coagulation
factor VIII and human prothrombin complex concentrate increased by
68.0% in 2016, representing 5.0% of total sales, compared to 2015.
Revenue from placenta polypeptide products increased by 18.4% in
2016, representing 9.4% of total sales, compared to 2015.
Cost of sales was $124.0
million in 2016, compared to $106.5
million in 2015. Cost of sales as a percentage of total
sales was 36.4%, as compared to 35.9% in the same period of 2015.
The increase in cost of sales as a percentage of total sales was
mainly due to the higher concentration of outsourced raw plasma
with higher cost, 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 14.3% to $217.2 million in 2016 from $190.0 million in 2015. Gross margin was
63.6% in 2016, compared to 64.1% in 2015.
Total operating expenses in 2016 increased 27.5% to
$73.2 million from $57.4 million in 2015. As a percentage of total
sales, total operating expenses increased to 21.5% for 2016 from
19.4% in 2015, mainly due to the increase in both selling expenses
and general and administrative expenses.
Selling expenses in 2016 increased by 17.0% to
$11.7 million from $10.0 million in 2015. As a percentage of total
sales, selling expenses remained stable at 3.4% compared with 2015.
The increase in selling expenses was in line with the sales growth
in 2016 as compared to 2015.
General and administrative expenses in 2016 increased by
31.6% to $54.5 million from
$41.4 million in 2015. As a
percentage of total sales, general and administrative expenses were
16.0% and 14.0% in 2016 and 2015, respectively. The increase in
general and administrative expenses was mainly due to a
$12.3 million increase in share-based
compensation expenses. Excluding the impact of share-based
compensation expenses, non-GAAP general and administrative expenses
would have been 8.8% and 9.9% as a percentage of total sales in
2016 and 2015, respectively.
Research and development expenses in 2016 were
$7.0 million, or 2.1% of total sales,
compared to $6.0 million, or 2.0% of
total sales, in 2015. During 2016 and 2015, the Company received
government grants totaling $0.8
million and $1.2 million,
respectively, and recognized them as a reduction of research and
development expenses. Excluding this impact, non-GAAP research and
development expenses increased by $0.6
million in 2016 from 2015, and these non-GAAP expenses as a
percentage of total sales decreased from 2.4% to 2.3%.
Income from operations in 2016 increased by 8.6% to
$144.0 million from $132.6 million in 2015. Operating margin
was 42.1% in 2016, compared to 44.7% in 2015.
Income tax expense in 2016 was $25.1 million, as compared to $21.0 million in 2015. The effective income tax
rate was 16.3% and 15.5% for 2016 and 2015, respectively.
Net income attributable to the Company increased
by 17.8% to $104.8 million for 2016
from $89.0 million in 2015. Net
margin was 30.7% and 30.0% for 2016 and 2015, respectively.
Fully diluted net income per share for 2016 increased to
$3.74 from $3.27 for 2015.
Non-GAAP adjusted net income attributable to the Company
increased by 35.1% in RMB terms, or 26.7% in USD terms, to
$126.8 million for 2016 from
$100.1 million in the same period of
2015. Non-GAAP net margin increased to 37.2% from 33.8% in
2015. Non-GAAP adjusted net income per diluted share
increased to $4.52 for 2016 from
$3.68 in 2015.
Non-GAAP adjusted net income and diluted earnings per share for
2016 exclude $22.0 million of
non-cash employee share-based compensation expenses.
As of December 31, 2016, the
Company had $183.8 million in cash
and cash equivalents, primarily consisting of cash on hand and
demand deposits.
Net cash provided by operating activities for 2016 was
$123.3 million, as compared to
$109.4 million for 2015. The increase
in net cash provided by operating activities was largely consistent
with the improvements in the results of operations in 2016, as
compared to the same period in 2015, partially offset by the
increases in accounts receivable and inventories.
Accounts receivable increased by $11.0
million during 2016, as compared to $7.1 million in 2015. The accounts receivable
turnover days for plasma products increased to 41 days during 2016
from 34 days in 2015. To enhance the business relationship with
certain key customers, the Company granted longer credit term to
certain qualified hospitals during 2016.
Inventories increased by $40.1
million in 2016, as compared to $32.1
million in 2015, mainly due to an increase in the inventory
of outsourced raw plasma as well as the increase of finished goods
in preparation for Shandong
facility transition.
Net cash used in investing activities for 2016 was
$52.5 million, as compared to
$89.8 million for 2015. During 2016
and 2015, the Company paid $51.0
million and $52.3 million,
respectively, for the acquisition of property, plant and equipment,
intangible assets and land use rights for Shandong Taibang and
Guizhou Taibang. During 2016 and 2015, the Company granted a loan
of $12.3 million and $40.7 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 in 2016.
Net cash used in financing activities for 2016 was
$22.1 million, as compared to net
cash of $51.6 million provided by
financing activities for 2015. The net cash used in financing
activities in 2016 mainly consisted of payment of $58.1 million to former minority shareholders of
Guizhou Taibang in connection with their capital withdrawal from
Guizhou Taibang and a dividend of $7.9
million paid to the minority shareholder by Shandong
Taibang, partially offset by the maturity of a $37.8 million time deposit as a security for a
bank loan which was fully repaid in June
2015 and the proceeds of $3.6
million from stock options exercised. The net cash provided
by financing activities for 2015 mainly consisted of net proceeds
of $80.6 million from a follow-on
offering of the Company's stock in June
2015, proceeds of $63.2
million from the maturity of deposit used as security for
bank loans, proceeds of $15.8 million
from a short-term bank loan, and proceeds of $7.7 million from stock options exercised,
partially offset by the repayment of bank loans totaling
$113.5 million and a dividend payment
of $3.7 million held in escrow by a
trial court in connection with disputes with a minority shareholder
of Guizhou Taibang.
Financial Outlook
For the full year of 2017, factoring into the impact of
approximately three months of production suspension at our
Shandong facility in connection
with plant transition, the Company expects total sales to grow 13%
to 15% in RMB terms and non-GAAP adjusted net income to grow 18% to
20% in RMB terms over 2016 financial results.
This guidance does not factor in any potential foreign currency
translation impact. Having previously adopted an exchange rate of
approximately RMB6.63 = $1.00 based on weighted average quarterly
exchange rates in 2016 in translating 2016 financial results, the
Company expects that the total sales and non-GAAP adjusted net
income in USD terms in 2017 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 2017. 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 Friday, February 24, 2017, which is 8:30 pm Beijing Time on February 24, 2017, to discuss its results for the
fourth quarter and fiscal year 2016 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 March 4, 2017. The dial-in details are:
US:
|
1 877 344
7529
|
International:
|
1 412 317
0088
|
Passcode:
|
10101712
|
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 and 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
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and
cash equivalents
|
|
183,765,533
|
|
144,937,893
|
Time
deposits
|
|
-
|
|
38,032,593
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
33,918,796
|
|
25,144,969
|
Inventories
|
|
156,412,674
|
|
126,395,312
|
Prepayments and other current assets, net of allowance for
doubtful accounts
|
|
18,275,717
|
|
24,545,597
|
Deposits
related to land use rights, current portion
|
|
999,571
|
|
10,056,200
|
Total Current Assets
|
|
393,372,291
|
|
369,112,564
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
132,091,923
|
|
105,364,251
|
Land use rights,
net
|
|
23,389,384
|
|
23,576,300
|
Equity method
investment
|
|
10,614,755
|
|
8,718,133
|
Loan
receivable
|
|
43,245,000
|
|
39,834,173
|
Other non-current
assets
|
|
2,244,156
|
|
4,861,075
|
Total Assets
|
|
604,957,509
|
|
551,466,496
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
6,158,601
|
|
9,681,835
|
Other
payables and accrued expenses
|
|
59,798,145
|
|
57,462,563
|
Income
tax payable
|
|
7,484,366
|
|
4,510,986
|
Total Current Liabilities
|
|
73,441,112
|
|
71,655,384
|
|
|
|
|
|
Deferred
income
|
|
3,755,648
|
|
4,525,867
|
Other
liabilities
|
|
6,623,926
|
|
8,323,446
|
Total Liabilities
|
|
83,820,686
|
|
84,504,697
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common
stock:
|
|
|
|
|
par value $0.0001;
|
|
|
|
|
100,000,000 shares authorized;
|
|
|
|
|
29,427,609 and 28,835,053 shares issued at
December31, 2016 and 2015, respectively;
|
|
|
|
|
27,172,905 and 26,580,349 shares outstanding at
December 31, 2016 and 2015, respectively
|
2,943
|
|
2,884
|
Additional paid-in capital
|
|
105,459,610
|
|
105,079,845
|
Treasury
stock: 2,254,704 shares at December31, 2016 and 2015, respectively,
at cost
|
|
(56,425,094)
|
|
(56,425,094)
|
|
|
|
|
|
Retained
earnings
|
|
438,483,401
|
|
333,704,094
|
Accumulated other comprehensive loss
|
|
(25,320,271)
|
|
(18,605)
|
Total
equity attributable to China Biologic Products,
Inc.
|
|
462,200,589
|
|
382,343,124
|
|
|
|
|
|
Noncontrolling interest
|
|
58,936,234
|
|
84,618,675
|
|
|
|
|
|
Total Stockholders' Equity
|
|
521,136,823
|
|
466,961,799
|
|
|
|
|
|
Commitments and contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
|
604,957,509
|
|
551,466,496
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
For the Years
Ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
USD
|
|
USD
|
|
USD
|
Sales
|
|
341,169,426
|
|
296,457,902
|
|
243,251,658
|
Cost of
sales
|
|
124,034,448
|
|
106,482,626
|
|
80,025,375
|
Gross
profit
|
|
217,134,978
|
|
189,975,276
|
|
163,226,283
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Selling
expenses
|
|
11,679,242
|
|
9,973,449
|
|
10,707,409
|
General and administrative expenses
|
|
54,519,122
|
|
41,391,520
|
|
32,129,985
|
Research and development expenses
|
|
7,021,992
|
|
6,024,368
|
|
4,161,901
|
Provision for other receivables in respect of an employee
housing development project
|
|
-
|
|
-
|
|
5,068,075
|
Income from
operations
|
|
143,914,622
|
|
132,585,939
|
|
111,158,913
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
Equity in income (loss) of an equity method
investee
|
|
2,519,201
|
|
(1,311,278)
|
|
8,646,181
|
Interest income
|
|
7,815,780
|
|
5,551,105
|
|
6,644,886
|
Interest expense
|
|
(254,471)
|
|
(1,727,335)
|
|
(3,697,819)
|
Loss from
disposal of a subsidiary
|
|
(75,891)
|
|
-
|
|
-
|
Total other income,
net
|
|
10,004,619
|
|
2,512,492
|
|
11,593,248
|
|
|
|
|
|
|
|
Earnings before
income tax expense
|
|
153,919,241
|
|
135,098,431
|
|
122,752,161
|
|
|
|
|
|
|
|
Income tax
expense
|
|
25,125,820
|
|
20,992,913
|
|
26,639,527
|
|
|
|
|
|
|
|
Net
income
|
|
128,793,421
|
|
114,105,518
|
|
96,112,634
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
24,014,114
|
|
25,062,815
|
|
25,195,794
|
|
|
|
|
|
|
|
Net income
attributable to China Biologic Products, Inc.
|
|
104,779,307
|
|
89,042,703
|
|
70,916,840
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
Basic
|
|
3.79
|
|
3.40
|
|
2.85
|
Diluted
|
|
3.74
|
|
3.27
|
|
2.71
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
Basic
|
|
26,848,445
|
|
25,599,153
|
|
24,427,196
|
Diluted
|
|
27,249,144
|
|
26,567,366
|
|
25,685,064
|
|
|
|
|
|
|
|
Net
income
|
|
128,793,421
|
|
114,105,518
|
|
96,112,634
|
|
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
(31,303,262)
|
|
(24,368,360)
|
|
(1,918,715)
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
97,490,159
|
|
89,737,158
|
|
94,193,919
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
|
19,026,592
|
|
20,698,249
|
|
24,798,384
|
|
|
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products, Inc.
|
|
78,463,567
|
|
69,038,909
|
|
69,395,535
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years
Ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
2014
|
|
|
USD
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net
income
|
|
128,793,421
|
|
114,105,518
|
|
96,112,634
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
11,962,983
|
|
8,179,376
|
|
6,989,222
|
Amortization
|
|
775,053
|
|
854,364
|
|
758,232
|
Loss
on sale of property, plant and equipment
|
|
293,098
|
|
3,024,830
|
|
172,032
|
Allowance (reversal) for doubtful accounts - accounts receivable,
net
|
|
123,239
|
|
34,902
|
|
(24,462)
|
Allowance for doubtful accounts - other receivables and
prepayments
|
|
65,341
|
|
788
|
|
5,068,075
|
Impairment for other non-current assets
|
|
1,225,200
|
|
-
|
|
-
|
Write-down of obsolete inventories
|
|
256,862
|
|
76,587
|
|
324,584
|
Deferred tax (benefit) expense
|
|
(3,006,541)
|
|
(170,345)
|
|
3,483,890
|
Share-based compensation
|
|
24,405,511
|
|
12,114,272
|
|
5,396,271
|
Equity in (income) loss of an equity method
investee
|
|
(2,519,201)
|
|
1,311,278
|
|
(8,646,181)
|
Loss
from disposal of a subsidiary
|
|
75,891
|
|
-
|
|
-
|
Excess tax benefits from share-based compensation
arrangements
|
|
(2,613,831)
|
|
(1,518,702)
|
|
(1,611,399)
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
(10,971,773)
|
|
(7,146,311)
|
|
(2,191,118)
|
Prepayment and other current assets
|
|
1,946,800
|
|
879,165
|
|
(9,236,125)
|
Inventories
|
|
(40,077,384)
|
|
(32,095,328)
|
|
(13,418,971)
|
Accounts payable
|
|
2,966,885
|
|
5,348,896
|
|
405,071
|
Other
payables and accrued expenses
|
|
4,221,669
|
|
6,734,988
|
|
4,472,691
|
Deferred income
|
|
(686,757)
|
|
(416,185)
|
|
(224,040)
|
Income tax payable
|
|
6,022,145
|
|
(1,926,093)
|
|
5,683,912
|
Net cash provided
by operating activities
|
|
123,258,611
|
|
109,392,000
|
|
93,514,318
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Payment
for property, plant and equipment
|
|
(49,371,318)
|
|
(38,790,998)
|
|
(17,194,201)
|
Payment
for intangible assets and land use rights
|
|
(1,635,891)
|
|
(13,500,526)
|
|
(4,677,358)
|
Refund
of payments and deposits related to land use right
|
|
10,297,893
|
|
-
|
|
1,635,200
|
Proceeds
upon maturity of time deposit
|
|
-
|
|
-
|
|
6,608,612
|
Proceeds
from sale of property, plant and equipment and land use
rights
|
|
393,019
|
|
827,020
|
|
220,135
|
Loans
lent to a third party
|
|
(12,332,718)
|
|
(40,744,167)
|
|
-
|
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
|
|
(52,520,361)
|
|
(89,755,807)
|
|
(13,407,612)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Proceeds
from stock option exercised
|
|
3,558,796
|
|
7,745,978
|
|
3,860,401
|
Payment
for share repurchase
|
|
-
|
|
-
|
|
(70,000,000)
|
Proceeds
from short-term bank loans
|
|
-
|
|
15,770,881
|
|
44,500,340
|
Repayment of short-term bank loans
|
|
-
|
|
(47,201,255)
|
|
(22,833,400)
|
Proceeds
from long-term bank loans
|
|
-
|
|
-
|
|
70,000,000
|
Repayment of long-term bank loans
|
|
-
|
|
(66,300,000)
|
|
(33,700,000)
|
Payment
for cash deposit as security for bank loans
|
|
-
|
|
-
|
|
(104,172,005)
|
Maturity
of deposit as security for bank loans
|
|
37,756,405
|
|
63,152,258
|
|
30,370,670
|
Net
proceeds from reissuance of treasury stock
|
|
-
|
|
80,583,959
|
|
33,212,518
|
Acquisition of noncontrolling interest
|
|
-
|
|
-
|
|
(86,830,499)
|
Excess
tax benefits from share-based compensation arrangements
|
|
2,613,831
|
|
1,518,702
|
|
1,611,399
|
Dividend
paid by subsidiaries to noncontrolling interest
shareholders
|
|
(7,921,952)
|
|
-
|
|
(8,846,984)
|
Dividend
to the trial court to be held in escrow as to dispute with
Jie'an
|
|
|
|
(3,690,814)
|
|
-
|
Payment
to noncontrolling interest shareholders in connection with their
capital withdrawal
|
|
(58,091,018)
|
|
-
|
|
-
|
Net cash (used in)
provided by financing activities
|
|
(22,083,938)
|
|
51,579,709
|
|
(142,827,560)
|
|
|
|
|
|
|
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH
|
|
(9,826,672)
|
|
(7,098,233)
|
|
(597,409)
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
38,827,640
|
|
64,117,669
|
|
(63,318,263)
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
|
144,937,893
|
|
80,820,224
|
|
144,138,487
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
|
183,765,533
|
|
144,937,893
|
|
80,820,224
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
Cash
paid for income taxes
|
|
22,210,476
|
|
23,348,371
|
|
17,652,514
|
Cash
paid for interest expense
|
|
84,664
|
|
1,526,807
|
|
3,150,381
|
Noncash
investing and financing activities:
|
|
|
|
|
|
|
Acquisition of property, plant
and equipment included in payables
|
|
4,912,937
|
|
6,363,392
|
|
3,300,284
|
Loan
receivable offset by accounts payable
|
|
5,848,400
|
|
-
|
|
-
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
For the Three Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
26,860,803
|
|
20,431,948
|
Diluted EPS - Non
GAAP
|
0.95
|
|
0.74
|
Non-cash employee
stock compensation
|
(7,423,147)
|
|
(4,152,226)
|
Net Income
Attributable to the Company
|
19,437,656
|
|
16,279,722
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
27,428,563
|
|
27,111,105
|
|
|
|
|
|
For the Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
126,764,923
|
|
100,149,667
|
Diluted EPS - Non
GAAP
|
4.52
|
|
3.68
|
Non-cash employee
stock compensation
|
(21,985,616)
|
|
(11,106,964)
|
Net Income
Attributable to the Company
|
104,779,307
|
|
89,042,703
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
27,249,144
|
|
26,567,366
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-biologic-reports-financial-results-for-the-fourth-quarter-and-fiscal-year-2016-300412394.html
SOURCE China Biologic Products, Inc.