--2Q17 Total Sales Up 2.5% YoY and Non-GAAP Adjusted Net
Income Up 15.0% YoY in RMB terms, or Total Sales Down 2.3% YoY to $89.3 Million and Net Income Up 0.6% YoY to
$31.0 Million in USD terms--
--1H17 Total Sales Up 7.4%
YoY and Non-GAAP Adjusted Net Income Up 21.8% YoY in RMB terms,
or Total Sales Up 2.1% YoY to $180.7 Million and Net Income Up 7.0% YoY to
$61.0 Million in USD terms--
--Reiterates Full Year Financial Forecast--
BEIJING, Aug. 2, 2017 /PRNewswire/ -- China Biologic
Products Holdings, Inc. (NASDAQ: CBPO, "China Biologic" or the
"Company"), a leading fully integrated plasma-based
biopharmaceutical company in China, today announced on behalf of its
predecessor China Biologic Products, Inc. the unaudited financial
results of China Biologic Products, Inc. for the second quarter of
2017.
Second Quarter 2017 Financial Highlights
- Total sales in the second quarter of 2017 increased by
2.5% in RMB terms, or decreased by 2.3% in USD terms, to
$89.3 million from $91.4 million in the same quarter of 2016.
- Gross profit decreased by 1.2% to $59.2 million from $59.9
million in the same quarter of 2016. Gross margin
increased slightly to 66.3% from 65.6% in the same quarter of
2016.
- Income from operations decreased by 8.4% to $39.4 million from $43.0
million in the same quarter of 2016. Operating margin
decreased to 44.1% from 47.1% in the same quarter of 2016.
- Net income attributable to China Biologic Products, Inc.
increased by 0.6% to $31.0 million
from $30.8 million in the same
quarter of 2016. Diluted earnings per
share was $1.09, as compared to
$1.10 in the same quarter of
2016.
- Non-GAAP adjusted net income attributable to China Biologic
Products, Inc. increased by 15.0% in RMB terms, or 9.4% in USD
terms, to $38.5 million from
$35.2 million in the same quarter of
2016. Non-GAAP adjusted earnings per
share increased to $1.35
from $1.26 in the same quarter of
2016.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"Our second quarter financial results were impacted by several
factors, including government healthcare reform measures, greater
market competition in the plasma category and slower volume growth
due to the planned production suspension at our Shandong facility. Required government
healthcare reform measures implemented by hospitals, which include
the 'zero markup for drugs' policy and greater control over the
ratio of drug sales to total hospital revenue, resulted in slower
revenue growth for our primary plasma products – albumin and
IVIG. Additionally, we experienced intensified competition
for plasma product sales in the distributor channel as a result of
faster-than-expected implementation of the two invoice policy
nationwide as well as higher albumin import volume, resulting in
lower albumin sales volume in the second quarter of 2017.
We experienced a number of developments in the second quarter
which supported our growth. Our past efforts to pursue direct sales
to hospitals resulted in more stabilized albumin and IVIG pricing
and a moderate volume growth in this channel compared to the more
competitive distributor channel. We were also actively pursuing new
sales channels and strategic partners including new distributors
and retail pharmacy chains. Sales from newer products including our
higher margin hyper-immune products and coagulation factor products
continued to experience a healthy volume growth and represent a
higher percentage of total sales, contributing to our
year-over-year improvement in gross margin and non-GAAP net margin
in the second quarter.
We continued to advance with our new facility construction and
R&D development. At our new Shandong facility, we completed the first
phase of production suspension at the old facility to pursue the
new facility's simulation test, and the second phase of production
suspension for trial operation remains on track. We continue to
expect completion of the GMP certificate inspection and
commencement of operations at the new site by the end of this year.
On the R&D front, we expect to receive the final approval of
Fibrinogen by the CFDA in the third quarter and aim to generate
sales before the end of the year."
"As we move into the second half of 2017, we are expecting the
implementation of certain government healthcare policies that could
potentially result in positive impacts on our business, including
broadened reimbursable indications and increased reimbursable
maximums for our major plasma products, once various revised
provincial drug reimbursement lists are implemented. We also expect
possible improved product pricing in Shandong and Jiangsu at the conclusion of the long awaited
tendering process. We remain focused on completing our new plant
construction and shortening our production shut down time for GMP
approval at our Shandong facility,
maximizing market share within existing distribution channels and
developing new strategies to expand our sales channels,
successfully managing public tenders in various local markets to
secure optimized pricing opportunities, further investing in our
medical marketing platform to accelerate volume for newly launched
products, introducing promising clinical-stage products to the
market, and exploring new business growth opportunities. Finally,
we reiterate our full year financial forecast and believe we can
enhance our total sales and operating efficiency to meet growing
market demand in the quarters ahead," concluded Mr. Gao.
Second Quarter 2017 Financial Performance
Total sales in the second quarter of 2017 increased by
2.5% in RMB terms, or decreased by 2.3% in USD terms, to
$89.3 million from $91.4 million in the same quarter of 2016. The
increase was primarily attributable to the sales increase in
hyper-immune products, mainly including human rabies immunoglobulin
and human tetanus immunoglobulin, partially offset by the decrease
of sales in human albumin products and placenta polypeptide
products.
During the second quarter of 2017, human albumin and IVIG
products remained the two largest sales contributors. As a
percentage of total sales, sales from human albumin products
decreased to 36.3% in the second quarter of 2017, compared to 41.2%
in the same quarter of 2016. The sales volume of human albumin
products decreased by 7.4% in the second quarter of 2017. The
decrease largely reflected the inventory control associated with
the production suspension at the Shandong facility, as well as the negative
impact of recent changes in market dynamics, including intensified
market competition in distribution channels and government
healthcare reform measures limiting hospitals' purchase power.
Revenue from IVIG products accounted for 33.3% of total sales in
the second quarter of 2017, as compared to 33.6% in the same
quarter of 2016. The sales volume of IVIG products remained stable
in the second quarter of 2017.
The average price for human albumin products decreased by 2.7%
and 7.3% in RMB and in USD terms, respectively, in the second
quarter of 2017, mainly due to the combined effect of both a
decrease in price we charged certain distributors reflecting the
intensified market competition and a lower sales proportion from
the higher-unit-price dosages. The average price for IVIG products,
excluding foreign exchange impact, would have increased by 1.2% in
RMB terms, or decreased by 3.6% in USD terms, in the second quarter
of 2017 compared to the same quarter of 2016.
Revenue from other immunoglobulin products increased by 54.9% in
USD terms in the second quarter of 2017 compared to the same
quarter of 2016, reaching 14.2% of total sales, as compared to 9.0%
of total sales in the same quarter of 2016, mainly due to sales
increase of human rabies immunoglobulin and human tetanus
immunoglobulin, which reflected our enhanced production volume in
response to strong market demand in the second quarter of 2017
compared with the same period last year. And revenue from human
coagulation factor VIII and human prothrombin complex concentrate,
which are included in other plasma products, also increased by
47.2% and 40.1% in RMB term and USD term, respectively, in the
second quarter of 2017 compared to the same quarter of 2016,
representing 5.9% of total sales as compared to 4.3% of total sales
in the same quarter of 2016. This reflects our continued medical
marketing activities.
Revenue from placenta polypeptide products decreased by 11.1%
and 15.6% in RMB terms and USD terms, respectively, in the second
quarter of 2017 compared to the same quarter of 2016, reaching
10.3% of total sales, attributable to a decrease in sales volume in
the second quarter of 2017 following higher-than-normal product
sales volume in the first quarter of 2017, compared with a high
comparison base in the same period in 2016.
Cost of sales was $30.1
million in the second quarter of 2017, down 4.4% from
$31.5 million in the same quarter of
2016. As a percentage of total sales, cost of sales slightly
decreased to 33.7%, as compared to 34.4% in the same quarter of
2016. The decrease was mainly due to a greater proportion of sales
derived from hyper-immune products with a high profit margin.
Gross profit decreased by 1.2% to $59.2 million in the second quarter of 2017 from
$59.9 million in the same quarter of
2016. Gross margin was 66.3% and 65.6% in the second quarter
of 2017 and 2016, respectively.
Total operating expenses in the second quarter of 2017
increased by 17.2% to $19.8 million
from $16.9 million in the same
quarter of 2016, mainly due to increases in general and
administrative expenses. As a percentage of total sales, total
operating expenses increased to 22.2% in the second quarter of 2017
from 18.5% in the same quarter of 2016.
Selling expenses in the second quarter of 2017 increased
by 20.0% to $3.6 million from
$3.0 million in the same quarter of
2016. As a percentage of total sales, selling expenses increased to
4.0% in the second quarter in 2017 from 3.3% the same quarter of
2016, primarily due to higher marketing and promotion costs related
to certain hyper-immune products, coagulation factor products and
placenta polypeptide products.
General and administrative expenses in the second quarter
of 2017 increased by 13.5% to $14.3
million compared to $12.6
million in the same quarter of 2016. As a percentage of
total sales, general and administrative expenses increased to 16.0%
in the second quarter of 2017 from 13.8% in the same quarter of
2016. The increase in general and administrative expenses was
mainly due to a $3.4 million increase
in share-based compensation expenses. We also had a $1.2 million prepayment provision in the second
quarter of 2016. Excluding the impact of share-based compensation
expenses, general and administrative expenses would have been 6.9%
and 8.6% as a percentage of total sales in the second quarter of
2017 and 2016, respectively.
Research and development expenses in the second quarter
of 2017 increased by 46.2% to $1.9
million from $1.3 million in
the same quarter of 2016, primarily due to increased expenditures
incurred for certain clinical trial programs in the second quarter
2017.
Income from operations for the second quarter of 2017
decreased by 8.4% to $39.4 million
from $43.0 million in the same period
of 2016. Operating margin decreased to 44.1% in the second
quarter of 2017 from 47.1% in the same quarter of 2016.
Income tax expense in the second quarter of 2017 was
$6.9 million, compared to
$7.0 million in the same quarter of
2016, representing a decrease of 1.4%. The effective income tax
rate was 16.5% and 15.7% in the second quarter of 2017 and 2016,
respectively.
Net income attributable to China Biologic Products,
Inc. was $31.0 million in the
second quarter of 2017 as compared to $30.8
million in the same quarter of 2016. Net margin
increased to 34.8% compared to 33.6% in the same quarter of 2016.
Diluted earnings per share was $1.09 in the second quarter of 2017 compared to
$1.10 in the same quarter of
2016.
Non-GAAP adjusted net income attributable to China Biologic
Products, Inc. increased by 15.0% in RMB terms, or 9.4% in USD
terms, to $38.5 million in the second
quarter of 2017 from $35.2 million in
the same quarter of 2016. Non-GAAP net margin increased to
43.1% from 38.5% in the same quarter of 2016. Non-GAAP adjusted
earnings per diluted share increased to $1.35 in the second quarter of 2017 from
$1.26 in the same quarter of
2016.
Non-GAAP adjusted net income and diluted earnings per share
exclude non-cash employee share-based compensation expenses of
$7.5 million and $4.4 million, for the three months ended
June 30, 2017 and 2016,
respectively.
First Half 2017 Financial Performance
Total sales in the first half of 2017 increased by 7.4%
in RMB terms, or 2.1% in USD terms, to $180.7 million from $177.0
million in the same period of 2016. The increase in sales
was primarily attributable to a sales increase in placenta
polypeptide products, certain hyper-immune products and human
albumin. As a percentage of total sales, sales from human albumin
products and IVIG products accounted for 38.3% and 34.0%,
respectively, for the first half of 2017.
Cost of sales decreased by 4.9% to $62.3 million in the first half of 2017, compared
to $65.5 million in the same period
of 2016. Cost of sales as a percentage of total sales was 34.5%, a
decrease from 37.0% in the same period of 2016. The decrease in
cost of sales as a percentage of total sales was mainly due to a
greater sales proportion of higher-margin hyper-immune products and
placenta polypeptide products, as well as lower sales proportion of
high-cost outsourced raw plasma.
Gross profit increased by 6.2% to $118.4 million in the first half of 2017 from
$111.5 million in the same period of
2016. Gross margin was 65.5% in the first half of 2017,
compared to 63.0% in the same period of 2016.
Total operating expenses in the first half of 2017
increased 31.4% to $40.2 million from
$30.6 million in the same period of
2016. As a percentage of total sales, total operating expenses
increased to 22.2% for the first half of 2017 from 17.3% in the
same period of 2016, mainly due to an increase in selling, general
and administrative expenses.
Income from operations in the first half of 2017
decreased by 3.3% to $78.2 million
from $80.9 million in the same period
of 2016.
Income tax expense in the first half of 2017 was
$13.8 million, as compared to
$13.6 million in the same period of
2016. The effective income tax rate was 16.6% and 16.2% for the
first half of 2017 and 2016, respectively.
Net income attributable to China Biologic Products,
Inc. increased by 7.0% to $61.0
million for the first half of 2017 from $57.0 million in the same period of 2016. Net
margin was 33.8% and 32.2% for the first half of 2017 and 2016,
respectively.
Non-GAAP adjusted net income attributable to China Biologic
Products, Inc. increased by 21.8% in RMB terms, or 15.7% in USD
terms, to $75.9 million in the first
half of 2017 from $65.6 million in
the same period of 2016. Non-GAAP adjusted earnings per diluted
share increased to $2.67 for the
first half of 2017 from $2.36 in the
same period of 2016.
Non-GAAP adjusted net income and diluted earnings per share
exclude non-cash employee share-based compensation expenses of
$14.9 million and $8.6 million, for the first half of 2017 and
2016, respectively.
As of June 30, 2017, China
Biologic Products, Inc. had $223.2
million in cash and cash equivalents, primarily
consisting of cash on hand and demand deposits.
Net cash provided by operating activities for the first
half of 2017 was $36.9 million, as
compared to $57.0 million for the
same period in 2016. The decrease in net cash provided by operating
activities was largely due to increases in accounts receivable and
inventories. Accounts receivable increased by $26.1 million during the first half of 2017, as
compared to $13.9 million during the
same period in 2016. The accounts receivable turnover days for
plasma products increased to 51 days during the first half of 2017
from 35 days during the same period in 2016, which was a combined
result of a higher percentage of direct sales and a higher
concentration of large hospital customers and distributor customers
that typically request longer credit terms
Inventories increased by $22.8
million in the first half of 2017, mainly comprising of
increases in outsourced and self-collected raw material plasma.
This increase was higher than the inventory increase of
$12.5 million during the same period
in 2016, primarily because of the inventory stockpile to prepare
for the planned temporary production suspension at the Shandong facility.
Net cash used in investing activities for the first half
of 2017 was $16.6 million, as
compared to $26.3 million for the
same period in 2016. During the first half of 2017 and 2016, China
Biologic Products, Inc. paid $16.6
million and $26.6 million,
respectively, for the acquisition of property, plant and equipment,
land use rights and intangible assets for Shandong Taibang and
Guizhou Taibang. In addition, during the six months ended
June 30, 2016, China Biologic
Products, Inc. granted a loan of $6.3
million to Xinjiang Deyuan pursuant to a cooperation
agreement in August 2015.
Net cash provided by financing activities for the first
half of 2017 was $14.8 million, as
compared to $32.2 million for the
same period in 2016. Net cash provided by financing activities in
the first half of 2017 mainly consisted of $14.3 million short-term loan net proceeds. Net
cash provided by financing activities for the first half of 2016
mainly consisted of $2.4 million
proceeds from the exercise of stock options and the maturity of a
$37.8 million time deposit as a
security collateral for a 24-month loan which was fully repaid in
June 2015, partially offset by a
dividend of $7.9 million paid to the
noncontrolling shareholder by Shandong Taibang.
Financial Outlook
The Company reiterates its full year 2017 financial forecast of
total sales growth of 13% to 15% in RMB terms and non-GAAP adjusted
net income growth of 18% to 20% in RMB terms over 2016 financial
results. This forecast factors into a cumulative three month
production suspension at the Company's Shandong facility in connection with plant
transition.
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 also 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 Thursday, August 3, 2017, which is 7:30 pm Beijing Time on August 3, 2017, to discuss second quarter
2017 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 August 10, 2017. The dial-in details are:
US:
|
1 877 344
7529
|
International:
|
1 412 317
0088
|
Passcode:
|
10110775
|
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 Holdings, Inc.
China Biologic Products Holdings, 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 indirect
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 its presentation of non-GAAP
financial measures provides useful supplementary information to and
facilitates additional analysis by investors. 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.
Safe Harbor Statement
This news release may contain certain "forward-looking
statements" relating to the business of China Biologic Products
Holdings, 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 Company's plans regarding the production
and sale of plasma products made from the purchased raw materials
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,
quality of purchased source plasma, potential delay or failure to
complete construction of new collection facilities, potential
inability to pass government inspection and certification process
for existing and new 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 Holdings, 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 Six Months
Ended
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Sales
|
89,277,897
|
|
91,421,155
|
|
180,731,009
|
|
177,008,866
|
Cost of
sales
|
30,110,272
|
|
31,482,146
|
|
62,325,745
|
|
65,525,581
|
Gross
profit
|
59,167,625
|
|
59,939,009
|
|
118,405,264
|
|
111,483,285
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling expenses
|
3,577,599
|
|
3,026,457
|
|
7,385,151
|
|
4,254,127
|
General and administrative expenses
|
14,264,476
|
|
12,573,683
|
|
29,521,242
|
|
23,901,696
|
Research and development expenses
|
1,924,671
|
|
1,303,815
|
|
3,282,034
|
|
2,398,538
|
Income from
operations
|
39,400,879
|
|
43,035,054
|
|
78,216,837
|
|
80,928,924
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
Equity in income of an equity method
investee
|
972,359
|
|
259,850
|
|
1,884,102
|
|
43,535
|
Interest expense
|
(286,358)
|
|
(88,528)
|
|
(348,868)
|
|
(177,078)
|
Interest income
|
1,617,054
|
|
1,292,069
|
|
3,240,893
|
|
3,043,209
|
Total other income,
net
|
2,303,055
|
|
1,463,391
|
|
4,776,127
|
|
2,909,666
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
41,703,934
|
|
44,498,445
|
|
82,992,964
|
|
83,838,590
|
|
|
|
|
|
|
|
|
Income tax
expense
|
6,867,434
|
|
7,006,764
|
|
13,817,973
|
|
13,613,867
|
|
|
|
|
|
|
|
|
Net income
|
34,836,500
|
|
37,491,681
|
|
69,174,991
|
|
70,224,723
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
3,806,016
|
|
6,738,646
|
|
8,152,658
|
|
13,274,433
|
|
|
|
|
|
|
|
|
Net income
attributable to China Biologic Products, Inc.
|
31,030,484
|
|
30,753,035
|
|
61,022,333
|
|
56,950,290
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock:
|
|
|
|
|
|
|
|
Basic
|
1.10
|
|
1.12
|
|
2.17
|
|
2.08
|
Diluted
|
1.09
|
|
1.10
|
|
2.15
|
|
2.05
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
|
Basic
|
27,213,984
|
|
26,698,996
|
|
27,199,011
|
|
26,642,461
|
Diluted
|
27,478,935
|
|
27,152,560
|
|
27,472,301
|
|
27,145,470
|
|
|
|
|
|
|
|
|
Net income
|
34,836,500
|
|
37,491,681
|
|
69,174,991
|
|
70,224,723
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
10,692,318
|
|
(13,267,360)
|
|
13,413,286
|
|
(10,697,608)
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
45,528,818
|
|
24,224,321
|
|
82,588,277
|
|
59,527,115
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
4,859,899
|
|
4,468,767
|
|
9,510,461
|
|
11,447,450
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products, Inc.
|
40,668,919
|
|
19,755,554
|
|
73,077,816
|
|
48,079,665
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and
cash equivalents
|
|
223,243,489
|
|
183,765,533
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
61,146,341
|
|
33,918,796
|
Inventories
|
|
183,258,799
|
|
156,412,674
|
Prepayments and other current assets, net of allowance for
doubtful accounts
|
|
17,644,030
|
|
15,320,913
|
Total Current Assets
|
|
485,292,659
|
|
389,417,916
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
145,410,658
|
|
132,091,923
|
Land use rights,
net
|
|
24,180,767
|
|
23,389,384
|
Equity method
investment
|
|
12,780,120
|
|
10,614,755
|
Loan
receivable
|
|
44,283,000
|
|
43,245,000
|
Other non-current
assets
|
|
6,256,555
|
|
6,198,531
|
Total Assets
|
|
718,203,759
|
|
604,957,509
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Short-term bank loans
|
|
14,465,780
|
|
-
|
Accounts
payable
|
|
6,340,255
|
|
6,158,601
|
Income
tax payable
|
|
8,191,264
|
|
7,484,366
|
Other
payables and accrued expenses
|
|
64,096,628
|
|
59,798,145
|
Total Current Liabilities
|
|
93,093,927
|
|
73,441,112
|
|
|
|
|
|
Deferred
income
|
|
3,599,654
|
|
3,755,648
|
Other
liabilities
|
|
6,586,692
|
|
6,623,926
|
Total Liabilities
|
|
103,280,273
|
|
83,820,686
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common
stock:
|
|
|
|
|
par value $0.0001;
|
|
|
|
|
100,000,000 shares authorized;
|
|
|
|
|
29,493,061 and 29,427,609 shares issued at June
30, 2017 and December 31, 2016, respectively;
|
|
|
|
|
27,238,357 and 27,172,905 shares outstanding at
June 30, 2017 and December 31, 2016, respectively
|
|
2,949
|
|
2,943
|
Additional paid-in capital
|
|
122,167,032
|
|
105,459,610
|
Treasury
stock: 2,254,704 shares at June 30, 2017 and December31, 2016, at
cost
|
|
(56,425,094)
|
|
(56,425,094)
|
Retained
earnings
|
|
499,505,734
|
|
438,483,401
|
Accumulated other comprehensive loss
|
|
(13,264,788)
|
|
(25,320,271)
|
Total equity attributable to China
Biologic Products, Inc.
|
|
551,985,833
|
|
462,200,589
|
|
|
|
|
|
Noncontrolling interest
|
|
62,937,653
|
|
58,936,234
|
|
|
|
|
|
Total Stockholders'
Equity
|
|
614,923,486
|
|
521,136,823
|
|
|
|
|
|
Commitments and contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
|
718,203,759
|
|
604,957,509
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net
income
|
|
69,174,991
|
|
70,224,723
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
6,043,854
|
|
4,590,028
|
Amortization
|
|
683,276
|
|
438,916
|
Loss on sale of
property, plant and equipment
|
|
119,557
|
|
115,075
|
Allowance for
doubtful accounts - accounts receivable, net
|
|
23,783
|
|
6,604
|
Allowance for
doubtful accounts - other non-current assets
|
|
-
|
|
1,225,200
|
Write-down of
obsolete inventories
|
|
-
|
|
61,497
|
Deferred tax
benefit
|
|
(166,369)
|
|
(1,584,958)
|
Share-based
compensation
|
|
16,201,189
|
|
9,307,099
|
Equity in income of
an equity method investee
|
|
(1,884,102)
|
|
(43,535)
|
Change in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(26,068,071)
|
|
(13,856,209)
|
Inventories
|
|
(22,769,252)
|
|
(12,522,807)
|
Prepayments and other
current assets
|
|
(1,862,700)
|
|
2,433,998
|
Accounts
payable
|
|
33,359
|
|
(3,001,361)
|
Income tax
payable
|
|
519,895
|
|
4,339,536
|
Other payables and
accrued expenses
|
|
(2,910,237)
|
|
(4,465,594)
|
Deferred
income
|
|
(242,713)
|
|
(255,394)
|
Net cash provided
by operating activities
|
|
36,896,460
|
|
57,012,818
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Payment for property,
plant and equipment
|
|
(15,975,643)
|
|
(25,222,545)
|
Payment for
intangible assets and land use rights
|
|
(667,068)
|
|
(1,351,789)
|
Refund of deposits
related to land use right
|
|
-
|
|
6,461,924
|
Proceeds from sale of
property, plant and equipment
|
|
24,674
|
|
100,424
|
Long-term loan lent
to a third party
|
|
-
|
|
(6,331,518)
|
Net cash used in
investing activities
|
|
(16,618,037)
|
|
(26,343,504)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds from stock
option exercised
|
|
506,239
|
|
2,364,952
|
Proceeds from
short-term bank loans
|
|
23,009,280
|
|
-
|
Repayment of
short-term bank loan
|
|
(8,715,000)
|
|
-
|
Maturity of deposit
as security for bank loans
|
|
-
|
|
37,756,405
|
Dividend paid by
subsidiaries to noncontrolling interest shareholders
|
|
-
|
|
(7,921,952)
|
Net cash provided
by financing activities
|
|
14,800,519
|
|
32,199,405
|
|
|
|
|
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH
|
|
4,399,014
|
|
(3,772,623)
|
NET INCREASE IN
CASH AND CASH EQUIVALENTS
|
|
39,477,956
|
|
59,096,096
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
183,765,533
|
|
144,937,893
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
223,243,489
|
|
204,033,989
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Cash paid for income
taxes
|
|
13,621,188
|
|
10,841,209
|
Noncash investing and
financing activities:
|
|
|
|
|
Acquisition of
property, plant and equipment included in payables
|
|
4,202,934
|
|
9,312,476
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2017
|
|
2016
|
|
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
|
38,506,047
|
|
35,167,523
|
Diluted EPS - Non
GAAP
|
|
|
1.35
|
|
1.26
|
Non-cash employee
stock compensation
|
|
|
(7,475,563)
|
|
(4,414,488)
|
Net Income
Attributable to the Company
|
|
|
31,030,484
|
|
30,753,035
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
27,478,935
|
|
27,152,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2017
|
|
2016
|
|
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
|
75,936,135
|
|
65,609,897
|
Diluted EPS - Non
GAAP
|
|
|
2.67
|
|
2.36
|
Non-cash employee
stock compensation
|
|
|
(14,913,802)
|
|
(8,659,607)
|
Net Income
Attributable to the Company
|
|
|
61,022,333
|
|
56,950,290
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
27,472,301
|
|
27,145,470
|
View original
content:http://www.prnewswire.com/news-releases/china-biologic-reports-financial-results-for-the-second-quarter-of-2017-300498116.html
SOURCE China Biologic Products Holdings, Inc.