BEIJING, Nov. 1, 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 its unaudited financial
results for the third quarter of 2017.
Third Quarter 2017 Financial Highlights
- Total sales in the third quarter of 2017 increased by
15.1% in both RMB terms and USD terms to $99.6 million from $86.5
million in the same quarter of 2016.
- Gross profit increased by 14.0% to $67.1 million from $58.9
million in the same quarter of 2016. Gross margin
decreased to 67.4% from 68.1% in the same quarter of 2016.
- Income from operations decreased by 4.2% to $38.0 million from $39.7
million in the same quarter of 2016. Operating margin
decreased to 38.2% from 45.9% in the same quarter of 2016.
- Net income attributable to the Company increased by
11.2% to $31.6 million from
$28.4 million in the same quarter of
2016. Diluted earnings per share
increased to $1.11 from $1.01 in the same quarter of 2016.
- Non-GAAP adjusted net income attributable to the Company
increased by 14.8% in both RMB terms and USD terms to $39.4 million from $34.3
million in the same quarter of 2016. Non-GAAP
adjusted earnings per share increased to
$1.38 from $1.22 in the same quarter of 2016.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are pleased to report an improved quarter of revenue and profit
growth despite some temporary headwinds and market slow down caused
by recent healthcare reform in China and intensified market competition. Our
growth was supported by our efforts to actively pursue new sales
channels and strategic partners, including new distributors and
retail pharmacy chains, while deepening our penetration into
existing direct sales channels. Sales of albumin and IVIG
manufactured in our Shandong
facility continued to decline due to the planned production
suspension at our Shandong
facility for the second phase trial production. Our Guizhou facility received a healthy boost in
sales growth for plasma products and experienced a substantial
increase in sales of our non-plasma product, placenta polypeptide,
which also contributed to our gross margin improvement. As
anticipated, the revenue contribution from placenta polypeptide was
a result of an expedited nationwide rollout of the two-invoice policy, which allowed us to
increase our sales price for placenta polypeptide."
Mr. Gao continued, "We continued to make progress with new
facility construction and R&D development. We completed the
second phase of production suspension at the old Shandong facility to pursue the new facility's
trial production test, and 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 have
received the long-awaited final approval of Fibrinogen by the CFDA
in early October and aim to commercially launch this product in
early 2018."
"In addition to our progress with our internal operational
initiatives this quarter, we also recently announced the entry into
an agreement to acquire TianXinFu. We look forward to the
synergistic value provided by this transaction to solidify our core
plasma business leadership in China by enhancing our marketing and sales
capability for accelerating the growth of our newly launched and
upcoming high margin plasma products," concluded Mr. Gao.
Third Quarter 2017 Financial Performance
Total sales in the third quarter of 2017 increased by
15.1% in both RMB terms and USD terms to $99.6 million from $86.5
million in the same quarter of 2016. The increase was
primarily attributable to a sales increase of placenta polypeptide.
Sales of IVIG, human rabies immunoglobulin, coagulation factor
products and albumin products also increased while sales of human
tetanus immunoglobulin decreased.
During the third quarter of 2017, 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 33.0% and 30.9%,
respectively, in the third quarter of 2017 compared to 37.0% and
33.1% in the same quarter of 2016, while sales from placenta
polypeptide increased to 15.1% of total sales compared to 9.4% in
the same quarter of 2016.
The sales volume of human albumin products and IVIG increased by
5.8% and 7.9%, respectively, mainly due to enhanced production
volumes in Guizhou Taibang.
The average price for human albumin products decreased by 3.2%
in both RMB terms and USD terms in the third quarter of 2017,
mainly due to the combined effect of both a decrease in prices
charged to certain distributors, which reflected intensified market
competition, and a lower sales proportion from the
higher-unit-price dosages compared to the same quarter of 2016. The
average price for IVIG products decreased by 0.4% in both RMB terms
and USD terms in the third quarter of 2017 compared to the same
quarter of 2016, mainly because the Company offered slight price
discounts in certain key markets in order to successfully replace
competitors and penetrate into such markets.
Revenue from other immunoglobulin products increased by 10.5% in
both RMB and USD terms in the third quarter of 2017 compared to the
same quarter of 2016, reaching 14.9% of total sales, as compared to
15.5% of total sales in the same quarter of 2016, mainly due to a
sales increase of human rabies immunoglobulin, which was partly
offset by a sales decrease of human tetanus immunoglobulin. The
sales increase of human rabies immunoglobulin reflected the
Company's enhanced production volume in response to strong market
demand in the third quarter of 2017 compared with the same period
last year.
Revenue from other plasma products, including human coagulation
factor VIII and human prothrombin complex concentrate, increased by
42.5% and 42.8% in RMB terms and USD terms, respectively, in the
third quarter of 2017 compared to the same quarter of 2016,
representing 6.2% of total sales as compared to 4.9% of total sales
in the same quarter of 2016. This growth reflects the Company's
ongoing medical marketing activities.
Revenue from placenta polypeptide products increased by 85.1% in
both RMB terms and USD terms in the third quarter of 2017 compared
to the same quarter of 2016, reaching 15.1% of total sales, mainly
attributable to a higher unit selling price following the wider
implementation of the two-invoice policy across China in the third quarter of 2017.
Cost of sales was $32.4
million in the third quarter of 2017 compared to
$27.6 million in the same quarter of
2016. As a percentage of total sales, cost of sales increased to
32.6% from 31.9% in the same quarter of 2016, mainly due to a
higher sales proportion of the high-cost outsourced raw plasma,
which was partially offset by higher sales price of placenta
polypeptide following the wider implementation of the two-invoice
policy.
Gross profit increased by 14.0% to $67.1 million in the third quarter of 2017 from
$58.9 million in the same quarter of
2016. Gross margin was 67.4% and 68.1% in the third quarters
of 2017 and 2016, respectively.
Total operating expenses in the third quarter of 2017
increased by 51.9% to $29.1 million
from $19.2 million in the same
quarter of 2016, mainly due to increases in selling expenses and
general and administrative expenses. As a percentage of total
sales, total operating expenses increased to 29.2% in the third
quarter of 2017 from 22.1% in the same quarter of 2016.
Selling expenses in the third quarter of 2017 increased
by $7.3 million to $10.3 million from $3.0
million in the same quarter of 2016, primarily due to an
increase of approximately $5.7
million in marketing and promotion expenses related to
placenta polypeptide products in response to the wider
implementation of the two-invoice policy. Marketing and promotion
expenses related to certain higher-margin hyper-immune products and
coagulation products also increased. As a percentage of total
sales, selling expenses accounted for 10.4% in the third quarter of
2017 compared with 3.5% in the same quarter of 2016.
General and administrative expenses in the third quarter
of 2017 increased by 15.1% to $17.4
million compared to $15.1
million in the same quarter of 2016. As a percentage of
total sales, general and administrative expenses remained stable at
17.4% in the third quarter of 2017 compared with that of the same
quarter of 2016. The increase in general and administrative
expenses was mainly due to a $1.5
million increase in share-based compensation expenses.
Excluding the impact of share-based compensation expenses, general
and administrative expenses would have been 8.9% and 9.3% of total
sales in the third quarter of 2017 and 2016, respectively.
Research and development expenses in the third quarter of
2017 increased by 35.1% to $1.4
million from $1.0 million in
the same quarter of 2016. As a percentage of total sales, research
and development expenses increased to 1.4% in the third quarter of
2017 from 1.2% in the same quarter of 2016. 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. Excluding the
effect of the government grant, our research and development
expenses would have remained stable for the three months period
ended September 30, 2017 compared
with the same quarter of 2016.
Income from operations for the third quarter of 2017
decreased by 4.2% to $38.0 million
from $39.7 million in the same period
of 2016. Operating margin decreased to 38.2% in the third
quarter of 2017 from 45.9% in the same quarter of 2016.
Income tax expense in the third quarter of 2017 was
$5.7 million compared to $7.2 million in the same quarter of 2016,
representing a decrease of 21.1%. The effective income tax rate was
13.8% in the third quarter of 2017 compared with 16.8% in the same
period of 2016. The decrease of the effective income tax rate
reflects the Company's compliance with a new accounting standard
which allows it to recognize excess tax benefits from stock-based
compensation as a deduction from income tax expense instead of
recording it as additional paid-in-capital as in previous
periods.
Net income attributable to the Company increased
by 11.2% to $31.6 million in the
third quarter of 2017 from $28.4
million in the same quarter of 2016. Net margin
decreased to 31.7% from 32.8% in the same quarter of 2016.
Diluted earnings per share increased to $1.11 in the third quarter of 2017 from
$1.01 in the same quarter of
2016.
Non-GAAP adjusted net income attributable to the Company
increased by 14.8% in both RMB terms and USD terms to $39.4 million in the third quarter of 2017 from
$34.3 million in the same quarter of
2016. Non-GAAP net margin remained stable at 39.5% compared
with that of the same quarter of 2016. Non-GAAP adjusted
earnings per diluted share increased to $1.38 in the third quarter of 2017 from
$1.22 in the same quarter of
2016.
Non-GAAP adjusted net income and diluted earnings per share for
the third quarter of 2017 excludes $7.8
million of non-cash employee share-based compensation
expenses.
First Nine Months 2017 Financial Performance
Total sales in the first nine months of 2017 increased by
10.0% in RMB terms and 6.4% in USD terms to $280.3 million from $263.5
million in the same period of 2016. The increase was
attributable to the sales increase of both plasma products and
non-plasma products.
As a percentage of total sales, sales from human albumin
products and IVIG products accounted for 36.4% and 32.9%,
respectively, for the first nine months of 2017.
Cost of sales was $94.8
million in the first nine months of 2017 compared to
$93.2 million in the same period of
2016. Cost of sales as a percentage of total sales was 33.8%, as
compared to 35.4% in the same period of 2016. The decrease in cost
of sales as a percentage of total sales was mainly due to the
higher sales price of placenta polypeptide following the wider
implementation of the two-invoice policy and a greater proportion
of sales derived from certain hyper-immune and coagulation products
with a higher profit margin.
Gross profit increased by 8.9% to $185.5 million in the first nine months of 2017
from $170.4 million in the same
period of 2016. Gross margin was 66.2% in the first nine
months of 2017 compared to 64.6% in the same period of
2016.
Total operating expenses in the first nine months of 2017
increased by 39.4% to $69.3 million
from $49.7 million in the same period
of 2016. As a percentage of total sales, total operating expenses
increased to 24.7% for the first nine months of 2017 from 18.9% in
the same period of 2016, mainly due to increases in selling
expenses and general and administrative expenses.
Income from operations in the first nine months of 2017
decreased by 3.6% to $116.3 million
from $120.7 million in the same
period of 2016.
Income tax expense in the first nine months of 2017 was
$19.5 million, as compared to
$20.8 million in the same period of
2016. The effective income tax rate was 15.7% and 16.4% for the
first nine months of 2017 and 2016, respectively.
Net income attributable to the Company increased
by 8.5% to $92.6 million for the
first nine months of 2017 from $85.3
million in the same period of 2016. Net margin was
33.0% and 32.4% for the first nine months of 2017 and 2016,
respectively. Diluted earnings per share for the
first nine months of 2017 increased to $3.25 from $3.05
for the same period of 2016.
Non-GAAP adjusted net income attributable to the Company
increased by 19.4% in RMB terms, or 15.4% in USD terms, to
$115.3 million for the first nine
months of 2017 from $99.9 million in
the same period of 2016. Non-GAAP net margin increased to
41.1% from 37.9% in the same period of 2016. Non-GAAP adjusted
earnings per diluted share increased to $4.05 for the first nine months of 2017 from
$3.57 in the same period of 2016.
Non-GAAP adjusted net income and diluted earnings per share for
the first nine months of 2017 exclude $22.7
million of non-cash employee share-based compensation
expenses.
As of September 30, 2017, the
Company had $216.4 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 2017 was $72.6
million, as compared to $87.3
million for the same period in 2016. The decrease in net
cash provided by operating activities was primarily due to
increases in accounts receivable and inventory.
Accounts receivable increased by $37.8
million during the first nine months of 2017 as compared to
$16.1 million during the same period
in 2016. The accounts receivable turnover days for plasma products
increased to 55 days during the first nine months of 2017 from 45
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 $34.0
million in the first nine months of 2017, mainly comprising
of increases in outsourced and self-collected raw material plasma.
This increase was higher than the inventory increase of
$24.5 million during the same period
in 2016, primarily because of the raw material and WIP stockpiled
during the planned temporary production suspension at the
Shandong facility, as well as an
increase in our raw materials purchased from Xinjiang Deyuan and
the relevant WIP at the Guizhou
facility.
Net cash used in investing activities for the first nine
months of 2017 was $28.4 million, as
compared to $44.1 million for the
same period in 2016. During the first nine months of 2017 and 2016,
the Company paid $28.5 million and
$42.5 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, the Company granted a loan of
$12.3 million to Xinjiang Deyuan
pursuant to a cooperation agreement in August 2015 and also received a refund of
$10.3 million from the local
government of Guiyang with respect
to deposits of land use rights.
Net cash used in financing activities for the first nine
months of 2017 was $18.4 million, as
compared to net cash provided by financing activities of
$19.5 million for the same period in
2016. The net cash used in financing activities in the first nine
months of 2017 mainly consisted of dividends paid by Shandong
Taibang to its noncontrolling interest shareholders. The net cash
provided by financing activities in the first nine months of 2016
mainly consisted of $3.2 million in
proceeds 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.
Financial Outlook
The Company reiterates its full year 2017 forecast of non-GAAP
adjusted net income growth of 18% to 20% in RMB terms over 2016
financial results and is adjusting its full year 2017 forecast of
total sales growth to 9%-10% in RMB terms compared to previous
estimates of 13%-15%. The change in full year forecast of
sales growth is mainly due to a slower-than-expected tendering
process for plasma products in the Shandong and Jiangsu provinces and also because of
lower-than-estimated placenta polypeptide revenue growth caused by
later implementation of the two-invoice policy in certain provincial
markets. This forecast factors in a cumulative three month
production suspension at the Company's Shandong facility in connection with the plant
transition. This guidance does not factor in the TianXinFu
acquisition.
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 November 2, 2017, which is 7:30 pm Beijing Time on November 2, 2017, to discuss third 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 November 9, 2017. The dial-in details are:
US:
|
1 877 344
7529
|
International:
|
1 412 317
0088
|
Passcode:
|
10113923
|
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 on the following pages)
CHINA BIOLOGIC
PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
September 30,
2017
|
|
September 30,
2016
|
|
September 30,
2017
|
|
September 30,
2016
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Sales:
|
99,561,251
|
|
86,525,885
|
|
280,292,260
|
|
263,534,751
|
Human Albumin
|
32,814,153
|
|
32,050,728
|
|
102,047,466
|
|
102,387,387
|
Human Immunoglobulin for Intravenous
Injection
|
30,724,570
|
|
28,608,129
|
|
92,141,052
|
|
93,439,551
|
Other Immunoglobulin products
|
14,855,226
|
|
13,449,552
|
|
35,858,831
|
|
30,555,619
|
Placenta Polypeptide
|
15,037,482
|
|
8,124,774
|
|
34,510,237
|
|
24,723,672
|
Others
|
6,129,820
|
|
4,292,702
|
|
15,734,674
|
|
12,428,522
|
|
|
|
|
|
|
|
|
Cost of
sales
|
32,424,522
|
|
27,647,338
|
|
94,750,267
|
|
93,172,919
|
Gross
profit
|
67,136,729
|
|
58,878,547
|
|
185,541,993
|
|
170,361,832
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling expenses
|
10,311,284
|
|
3,017,184
|
|
17,696,435
|
|
7,271,311
|
General and administrative expenses
|
17,369,133
|
|
15,095,872
|
|
46,890,375
|
|
38,997,568
|
Research and development expenses
|
1,409,226
|
|
1,042,806
|
|
4,691,260
|
|
3,441,344
|
Income from
operations
|
38,047,086
|
|
39,722,685
|
|
116,263,923
|
|
120,651,609
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
Equity in income of an equity method
investee
|
1,114,784
|
|
1,097,338
|
|
2,998,886
|
|
1,140,873
|
Interest expense
|
(129,787)
|
|
(57,661)
|
|
(478,655)
|
|
(234,739)
|
Interest income
|
1,781,576
|
|
1,865,805
|
|
5,022,469
|
|
4,909,014
|
Loss from disposal of a subsidiary
|
-
|
|
(75,891)
|
|
-
|
|
(75,891)
|
Total other income,
net
|
2,766,573
|
|
2,829,591
|
|
7,542,700
|
|
5,739,257
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
40,813,659
|
|
42,552,276
|
|
123,806,623
|
|
126,390,866
|
|
|
|
|
|
|
|
|
Income tax
expense
|
5,650,621
|
|
7,163,708
|
|
19,468,594
|
|
20,777,575
|
|
|
|
|
|
|
|
|
Net income
|
35,163,038
|
|
35,388,568
|
|
104,338,029
|
|
105,613,291
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
3,597,923
|
|
6,997,207
|
|
11,750,581
|
|
20,271,640
|
|
|
|
|
|
|
|
|
Net income
attributable to China Biologic Products Holdings, Inc.
|
31,565,115
|
|
28,391,361
|
|
92,587,448
|
|
85,341,651
|
|
|
|
|
|
|
|
|
Earnings per share of
ordinary share:
|
|
|
|
|
|
|
|
Basic
|
1.11
|
|
1.02
|
|
3.28
|
|
3.10
|
Diluted
|
1.11
|
|
1.01
|
|
3.25
|
|
3.05
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
|
Basic
|
27,430,784
|
|
26,957,205
|
|
27,277,823
|
|
26,748,141
|
Diluted
|
27,657,806
|
|
27,297,118
|
|
27,535,624
|
|
27,193,108
|
|
|
|
|
|
|
|
|
Net income
|
35,163,038
|
|
35,388,568
|
|
104,338,029
|
|
105,613,291
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
11,305,814
|
|
(3,543,648)
|
|
24,719,100
|
|
(14,241,256)
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
46,468,852
|
|
31,844,920
|
|
129,057,129
|
|
91,372,035
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
4,836,621
|
|
6,365,548
|
|
14,347,082
|
|
17,812,998
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products Holdings, Inc.
|
41,632,231
|
|
25,479,372
|
|
114,710,047
|
|
73,559,037
|
CHINA BIOLOGIC
PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
September 30,
2017
|
|
December 31,
2016
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and
cash equivalents
|
|
216,445,054
|
|
183,765,533
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
74,158,838
|
|
33,918,796
|
Inventories
|
|
198,608,231
|
|
156,412,674
|
Prepayments and other current assets, net of allowance for
doubtful accounts
|
|
17,942,218
|
|
15,320,913
|
Total Current Assets
|
|
507,154,341
|
|
389,417,916
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
155,135,184
|
|
132,091,923
|
Land use rights,
net
|
|
24,608,121
|
|
23,389,384
|
Equity method
investment
|
|
14,165,043
|
|
10,614,755
|
Loan
receivable
|
|
45,201,000
|
|
43,245,000
|
Other non-current
assets
|
|
7,595,082
|
|
6,198,531
|
Total Assets
|
|
753,858,771
|
|
604,957,509
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
6,346,315
|
|
6,158,601
|
Income
tax payable
|
|
10,580,609
|
|
7,484,366
|
Other
payables and accrued expenses
|
|
61,712,009
|
|
59,798,145
|
Total Current Liabilities
|
|
78,638,933
|
|
73,441,112
|
|
|
|
|
|
Deferred
income
|
|
3,548,655
|
|
3,755,648
|
Other
liabilities
|
|
6,604,808
|
|
6,623,926
|
Total Liabilities
|
|
88,792,396
|
|
83,820,686
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Ordinary
share:
|
|
|
|
|
par value $0.0001;
|
|
|
|
|
100,000,000 shares authorized;
|
|
|
|
|
29,864,045 and 29,427,609 shares issued at
September 30, 2017 and December 31, 2016, respectively;
|
|
|
|
|
27,609,341 and 27,172,905 shares outstanding at
September 30, 2017 and December 31, 2016, respectively
|
2,986
|
|
2,943
|
Additional paid-in capital
|
|
131,011,998
|
|
105,459,610
|
Treasury
share: 2,254,704 shares at September 30, 2017 and December31, 2016,
at cost
|
|
(56,425,094)
|
|
(56,425,094)
|
Retained
earnings
|
|
531,070,849
|
|
438,483,401
|
Accumulated other comprehensive loss
|
|
(3,197,672)
|
|
(25,320,271)
|
Total equity attributable to China
Biologic Products Holdings, Inc.
|
|
602,463,067
|
|
462,200,589
|
|
|
|
|
|
Noncontrolling interest
|
|
62,603,308
|
|
58,936,234
|
|
|
|
|
|
Total Stockholders'
Equity
|
|
665,066,375
|
|
521,136,823
|
|
|
|
|
|
Commitments and contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
|
753,858,771
|
|
604,957,509
|
|
|
|
|
|
Note: "Ordinary
share" when used with respect to a date before July 21, 2017 refer
to the common stock of our predecessor, China Biologic Products,
Inc.
|
CHINA BIOLOGIC
PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
|
For the Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net
income
|
|
104,338,029
|
|
105,613,291
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
9,154,528
|
|
6,946,084
|
Amortization
|
|
948,945
|
|
678,981
|
Loss on sale of
property, plant and equipment
|
|
136,496
|
|
215,778
|
Allowance for
doubtful accounts - accounts receivable, net
|
|
23,783
|
|
120,535
|
Allowance for
doubtful accounts - other non-current assets
|
|
-
|
|
45,537
|
Impairment for other
noncurrent assets
|
|
-
|
|
1,225,200
|
Write-down of
obsolete inventories
|
|
-
|
|
90,202
|
Deferred tax
benefit
|
|
(1,770,326)
|
|
(1,710,855)
|
Share-based
compensation
|
|
24,715,534
|
|
16,315,667
|
Equity in income of
an equity method investee
|
|
(2,998,886)
|
|
(1,140,873)
|
Loss from disposal of
a subsidiary
|
|
-
|
|
75,891
|
Change in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(37,784,029)
|
|
(16,104,694)
|
Inventories
|
|
(34,030,811)
|
|
(24,493,697)
|
Prepayments and other
current assets
|
|
(1,840,311)
|
|
(497,812)
|
Accounts
payable
|
|
(88,625)
|
|
(2,295,197)
|
Income tax
payable
|
|
2,690,364
|
|
6,198,276
|
Other payables and
accrued expenses
|
|
9,432,501
|
|
(3,553,823)
|
Deferred
income
|
|
(367,750)
|
|
(411,765)
|
Net cash provided
by operating activities
|
|
72,559,442
|
|
87,316,726
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Payment for property,
plant and equipment
|
|
(27,755,853)
|
|
(40,955,964)
|
Payment for
intangible assets and land use rights
|
|
(733,513)
|
|
(1,572,919)
|
Refund of deposits
related to land use right
|
|
-
|
|
10,297,893
|
Proceeds from sale of
property, plant and equipment
|
|
46,264
|
|
351,524
|
Proceeds from
disposal of a subsidiary
|
|
-
|
|
128,654
|
Loan lent to a third
party
|
|
-
|
|
(12,332,718)
|
Net cash used in
investing activities
|
|
(28,443,102)
|
|
(44,083,530)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds from stock
option exercised
|
|
836,897
|
|
3,214,253
|
Payment to
noncontrolling interest shareholders in connection with their
capital withdrawal
|
|
-
|
|
(13,502,700)
|
Proceeds from
short-term bank loans
|
|
23,009,280
|
|
-
|
Repayment of
short-term bank loans
|
|
(23,412,060)
|
|
-
|
Maturity of deposit
as security for bank loans
|
|
-
|
|
37,756,405
|
Dividend paid by
subsidiaries to noncontrolling interest shareholders
|
|
(18,789,152)
|
|
(7,921,952)
|
Net cash (used
in)/provided by financing activities
|
|
(18,355,035)
|
|
19,546,006
|
|
|
|
|
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH
|
|
6,918,216
|
|
(4,513,126)
|
|
|
|
|
|
NET INCREASE IN
CASH AND CASH EQUIVALENTS
|
|
32,679,521
|
|
58,266,076
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
183,765,533
|
|
144,937,893
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
216,445,054
|
|
203,203,969
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Cash paid for income
taxes
|
|
18,767,908
|
|
16,305,759
|
Noncash investing and
financing activities:
|
|
|
|
|
Acquisition of
property, plant and equipment included in payables
|
|
3,374,860
|
|
5,512,453
|
CHINA BIOLOGIC
PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
|
39,363,820
|
|
34,294,223
|
Diluted EPS - Non
GAAP
|
|
|
1.38
|
|
1.22
|
Non-cash employee
stock compensation
|
|
(7,798,705)
|
|
(5,902,862)
|
Net Income
Attributable to the Company
|
|
31,565,115
|
|
28,391,361
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
27,657,806
|
|
27,297,118
|
|
|
|
|
|
|
|
|
|
For the Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
|
115,299,955
|
|
99,904,120
|
Diluted EPS - Non
GAAP
|
|
|
4.05
|
|
3.57
|
Non-cash employee
stock compensation
|
|
(22,712,507)
|
|
(14,562,469)
|
Net Income
Attributable to the Company
|
|
92,587,448
|
|
85,341,651
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
27,535,624
|
|
27,193,108
|
View original
content:http://www.prnewswire.com/news-releases/china-biologic-reports-unaudited-financial-results-for-the-third-quarter-of-2017-300547126.html
SOURCE China Biologic Products Holdings, Inc.