--1Q19 Total Sales Up 15.4% YoY in USD terms,
or 22.3% YoY in RMB terms;
Net Income Up 19.3% YoY to
$37.7 Million;
Non-GAAP
Adjusted Net Income Up 14.3% YoY in RMB terms --
BEIJING, May 10, 2019 /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 first quarter of 2019.
First Quarter 2019 Financial Highlights
- Total sales in the first quarter of 2019 increased by
22.3% in RMB terms and 15.4% in USD terms to $129.8 million from $112.5
million in the same quarter of 2018.
- Gross profit increased by 8.6% to $85.6 million from $78.8
million in the same quarter of 2018. Gross margin
decreased to 65.9% from 70.0% in the same quarter of 2018.
- Income from operations increased by 12.8% to
$44.0 million from $39.0 million in the same quarter of 2018.
Operating margin decreased to 33.9% from 34.7% in the same
quarter of 2018.
- Non-GAAP adjusted income from operations increased by
10.5% in RMB terms and 4.2% in USD terms to $52.2 million from $50.1
million in the same quarter of 2018.
- Net income attributable to the Company
increased by 26.5% in RMB terms and 19.3% in USD terms, to
$37.7 million from $31.6 million in the same quarter of 2018.
Fully diluted earnings per share
increased to $0.94 compared to
$0.92 in the same quarter of
2018.
- Non-GAAP adjusted net income attributable to the Company
increased by 14.3% in RMB terms and 7.7% in USD terms to
$44.5 million from $41.3 million in the same quarter of 2018.
Non-GAAP adjusted earnings per share decreased
to $1.11 from $1.21 in the same quarter of 2018.
"China Biologic achieved better-than-expected financial results
for the first quarter, with growth in operating profit that
exceeded expectations. Despite this welcome news, the challenging
policy headwinds and heightened competition within the Chinese
plasma industry persist and we maintain our overall outlook for the
year," said Joseph Chow, Chairman of
the China Biologic Board of Directors.
"This quarter's outperformance in terms of operating profit
growth can be largely attributed to higher-than-expected sales of
albumin. This was due to a temporary shortage of albumin supply in
the market related to lower import volumes combined with increased
plasma fractionation capability at our new Shandong facility launched last February.
However, sales of IVIG products did not meet our expectations, due
to reduced purchase volumes at many regional hospitals as mandated
by government controls on healthcare spending. The performance of
our placenta polypeptide product was largely in line with
expectations, with sales down 50% year over year. As market prices
decline for our major products, our gross margin continues to be
negatively impacted. Although our prior efforts and investments
towards improving our sales and marketing capabilities have been
successful in broadening our sales channel coverage and reducing
Guizhou Taibang's IVIG inventory, the prescription volumes of IVIG
and certain high-unit-price coagulation products remain
sluggish."
"We recently received Dr. Bing Li's resignation as CEO and also
from the Board of Directors due to personal reasons. We thank Dr.
Li for his contribution in helping China Biologic optimize our
sales and marketing team and improve corporate governance. The
Board has formed a search committee comprised of independent
directors to seek a new CEO and in the interim has appointed me as
the acting CEO."
"Looking ahead to the rest of the year, given the relatively
fixed annual volume of our available plasma inventory and the
oversold albumin volume in the first quarter, the overall albumin
sales growth rate in the remaining quarters of this year will
likely decelerate. Our new sales and marketing talent will leverage
our expanded sales coverage in various channels to offer a variety
of products, with renewed efforts towards improving the
prescription volumes at regional hospitals and educating doctors
about the benefits of IVIG, PCC and other coagulation factor
products in treating patients across a wide range of clinical
indications. We expect these efforts to help decrease our IVIG
inventory position, which is currently above the normal level, both
internally and with our distributors."
Share Repurchase
Program
In late April 2019, the Company
completed the share repurchase program previously authorized by its
Board of Directors in 2018, repurchasing 1,074,376 shares at a
total of $100 million.
In May
2019, the Company's Board of Directors authorized a new
share repurchase program under which China Biologic may repurchase
up to US$150 million worth of shares
over the next 12 months.
The Company's repurchases may be made from time to time on the open
market at prevailing market prices, in negotiated transactions off
the market, in block trades or through other legally permissible
means. The timing and extent of any purchases will depend upon
market conditions, the trading price of its shares and other
factors, and are subject to the restrictions relating to volume,
price and timing under applicable law.
First Quarter 2019 Financial Performance
Total sales in the first quarter of 2019 increased by
22.3% in RMB terms, or 15.4% in USD terms, to $129.8 million from $112.5
million in the same quarter of 2018.
Total sales for biopharmaceutical products (including plasma
products and placenta polypeptide products) increased by 22.2% in
RMB terms, or 15.2% in USD terms, to $116.5
million from $101.1 million in
the same quarter of 2018, as a result of increases in the sales of
human albumin products and coagulation factor products, which was
partly offset by decreases in the sales of IVIG and placenta
polypeptide products. For plasma products, total sales in the first
quarter of 2019 increased by 35.8% in RMB terms, or 28.0% in USD
terms, to $108.8 million from
$85.0 million in the same quarter of
2018.
Total sales for biomaterial products in the first quarter of
2019 increased by 23.8% in RMB terms, or 16.7% in USD terms, to
$13.3 million from $11.4 million in the same quarter of 2018, as a
result of higher sales concentration in higher-unit-price
artificial dura mater products.
During the first quarter of 2019, human albumin and IVIG
products remained the Company's two largest sales contributors.
Revenue from human albumin increased by 78.2% in RMB terms, or
68.0% in USD terms, from $33.8
million in the first quarter of 2018 to $56.8 million in the first quarter of 2019.
Revenue from IVIG products decreased by 3.1% in RMB terms, or 8.8%
in USD terms, from $31.8 million in
the first quarter of 2018 to $29.0
million in the first quarter of 2019. As a percentage of
total sales, sales from human albumin and IVIG products were 43.8%
and 22.4%, respectively, in the first quarter of 2019.
The sales volume of human albumin products increased by 85.8%
for the first quarter of 2019, primarily due to increased sales
volumes in the distributor and pharmacy channels, supplemented by
increased direct sales to hospitals and inoculation centers. The
sales volume of IVIG products increased by 1.1% for the first
quarter of 2019 as a result of increased sales through the
distributor channel.
The average prices for human albumin and IVIG products decreased
by 4.1% and 4.2%, respectively, in RMB terms in the first quarter
of 2019 compared to the same quarter of 2018 because of higher
sales volume in the distributor channel and lower prices to certain
distributors reflecting intensified market competition for major
plasma products. In USD terms, the average price for human albumin
and IVIG products decreased by 9.5% and 9.7%, respectively, in the
first quarter of 2019 compared to the same quarter of 2018.
Revenue from other immunoglobulin products increased by 6.6% in
RMB terms, or 0.5% in USD terms in the first quarter of 2019
compared to the same quarter of 2018, reaching 10.1% of total sales
as compared to 11.6% of total sales in the same quarter of 2018.
The revenue increase was mainly attributable to increased sales
volume of human tetanus immunoglobulin products.
Revenue from other plasma products, including human coagulation
factor VIII, human prothrombin complex concentrate, and human
fibrinogen products, increased by 64.2% in RMB terms, or 54.9% in
USD terms, in the first quarter of 2019 compared to the same
quarter of 2018, representing 7.6% of total sales in the first
quarter of 2019. The growth mainly came from increased sales
through the distributor channel.
Revenue from placenta polypeptide products decreased by 52.4% in
USD terms for the first quarter of 2019 as compared to the same
quarter of 2018, accounting for 5.9% of total sales compared to
14.3% of total sales in the first quarter of 2018, mainly in line
with a decrease in sales volume as a result of the inclusion of
placenta polypeptide products in regional adjuvant drug lists,
which put a downward pressure on their prescription volume.
Cost of sales increased by 31.2% to $44.2 million in the first quarter of 2019 from
$33.7 million in the same quarter of
2018. As a percentage of total sales, cost of sales increased to
34.1% from 30.0% in the same quarter of 2018, mainly because of
decreased sales prices for most of the Company's plasma products,
increased plasma collection costs, and increased depreciation
expenses due to the launch of the Company's new facility in
Shandong in February 2018.
Gross profit increased by 8.6% to $85.6 million in the first quarter of 2019 from
$78.8 million in the same quarter of
2018. Gross margin was 65.9% and 70.0% in the first quarter
of 2019 and 2018, respectively.
Total operating expenses in the first quarter of
2019 increased by $1.8 million, or
4.5%, to $41.6 million from
$39.8 million in the same quarter of
2018. This increase mainly consisted of an increase of $3.2 million in general and administrative
expenses, partially offset by a decrease of $2.0 million in selling expenses. As a percentage
of total sales, total operating expenses decreased to 32.0% in the
first quarter of 2019 from 35.4% in the same quarter of 2018.
Selling expenses in the first quarter of 2019 decreased
by $2.0 million, or 9.7%, to
$18.7 million from $20.7 million for the first quarter of 2018. As a
percentage of total sales, selling expenses decreased to 14.4% for
the first quarter of 2019 from 18.4% in the same quarter of 2018.
The decrease in selling expenses is primarily due to a decrease in
marketing and promotion expenses related to placenta polypeptide
products, which is partly offset by increased selling expenses for
plasma products.
General and administrative expenses in the first quarter
of 2019 increased by $3.2 million, or
18.4%, to $20.6 million from
$17.4 million in the same quarter of
2018. As a percentage of total sales, general and administrative
expenses increased to 15.9% for the first quarter of 2019 from
15.5% for the same quarter of 2018. The increase in general and
administrative expenses was mainly a combined result of the
increased allowance for doubtful accounts receivable and increased
depreciation expenses for the Company's new facility in
Shandong, which was partially
offset by the decrease in share-based compensation expenses.
Research and development expenses in the first
quarter of 2019 increased by $0.6
million, or 35.3%, to $2.3
million from $1.7 million in
the same quarter of 2018. In the first quarter of 2019 and 2018,
the Company received government grants totaling $0.4 million and $0.1
million, respectively, and the Company recognized them as a
reduction of the research and development expenses. Excluding this
impact, research and development expenses increased by $0.9 million for the first quarter of 2019 from
the same quarter of 2018. As a percentage of total sales, research
and development expenses, excluding the impact of these recognized
government grants, increased to 2.1% for 2019 from 1.6% compared to
the same quarter of 2018.
Income from operations in the first quarter of 2019
increased by 19.4% in RMB terms, or 12.8% in USD terms, to
$44.0 million from $39.0 million in the same quarter of 2018.
Operating margin decreased to 33.9% in the first quarter of
2019 from 34.7% in the first quarter of 2018.
Income tax expense in the first quarter of 2019 increased
by $1.2 million, or 17.9%, to
$7.9 million from $6.7 million in the same period of 2018. The
effective income tax rate was 15.0% and 15.1% for the first quarter
of 2019 and 2018, respectively.
Net income attributable to the
Company increased by 26.5% in RMB terms, or 19.3% in USD
terms, to $37.7 million in the first
quarter of 2019 from $31.6 million in
the same period of 2018. Net margin increased to 29.1% in
the first quarter of 2019 from 28.1% in the same period of 2018.
Diluted net earnings per share increased to $0.94 in the first quarter of 2019 compared to
$0.92 in the same period of 2018.
Non-GAAP adjusted income from operations increased
by 10.5% in RMB terms, or 4.2% in USD terms, to $52.2 million in the first quarter of 2019 from
$50.1 million in the same period of
2018.
Non-GAAP adjusted net income attributable to the Company
increased by 14.3% in RMB terms and 7.7% in USD terms, to
$44.5 million in the first quarter of
2019 from $41.3 million in the
same period of 2018. Non-GAAP net margin decreased to 34.3%
in the first quarter of 2019 from 36.7% in the same period of 2018.
Non-GAAP adjusted net income per diluted share decreased to
$1.11 in the first quarter of 2019
from $1.21 in the same period of
2018.
Non-GAAP adjusted income from operations for the
first quarter of 2019 excludes $6.3
million in non-cash employee share-based compensation
expenses, and $2.1 million in
amortization expense of intangible assets and land use rights
related to the acquisition of TianXinFu.
Non-GAAP adjusted net income and diluted earnings per
share for the first quarter of 2019 exclude $5.5 million in non-cash employee share-based
compensation expenses, and $1.4
million in amortization expense of intangible assets and
land use rights related to the acquisition of TianXinFu.
As of March 31, 2019, the Company
had $99.0 million in cash on hand and
demand deposits, $653.8 million in
time deposits, and $171.2 million in
short term investments.
Net cash provided by operating activities for the
first quarter of 2019 was $32.2
million as compared to $23.3
million for the same period of 2018. The $8.9 million increase in net cash provided by
operating activities was a combined result of the increase in both
net income and non-cash expenses, which mainly include depreciation
expenses and allowance for doubtful accounts receivable.
Accounts receivable increased by $11.6
million during the first quarter of 2019 as compared to
$15.5 million during the same period
of 2018. The accounts receivable turnover days for plasma products
increased to 100 days during the first quarter of 2019 from 84 days
during the same period of 2018, reflecting longer credit terms to
hospitals as a result of the nationwide implementation of
healthcare reform measures and intensified competition in the
distributor channel.
Inventories increased by $4.0
million in the first quarter of 2019, which was milder than
the increase of $10.8 million in the
same period of 2018, mainly comprised of increased raw material
plasma both out-sourced and from the Company's own collection
stations.
Net cash used in investing activities for the first
quarter of 2019 was $214.7 million as
compared to $135.5 million for the
same period of 2018. During the first quarter of 2019, the Company
paid $7.9 million for the acquisition
of property, plant and equipment, intangible assets and land use
rights, and the Company also purchased time deposits and short-term
investments in the amount of $937.4
million. This was partly offset by $730.6 million from the maturity of time deposits
and short term investments. Net cash used in investing activities
in the first quarter of 2018 mainly consisted of $264.7 million payment for purchase of time
deposits and short term investments, $11.3
million for the acquisition of property, plant and
equipment, intangible assets, and land use rights, which was partly
offset by $97.7 million cash received
upon acquisition of TianXinFu and the maturity of $42.8 million time deposits and short term
investments.
Net cash used in financing activities for the first
quarter of 2019 was $60.0 million as
compared to net cash provided by financing activities of
$0.3 million for the same period of
2018. In the first quarter of 2019, $60.0
million was remitted to an investment bank by the Company to
execute the previously approved share repurchase program on behalf
of the Company. As of March 31, 2019,
415,356 shares had been repurchased at a total amount of
$36.8 million with the remaining
$23.2 million as down payment to the
investment bank for further repurchases. Net cash provided by
financing activities in the first quarter of 2018 represented
proceeds of $0.3 million from stock
options exercised.
Financial Outlook
The Company reiterates its forecast for the full year 2019. The
company expects both non-GAAP adjusted income from operations and
non-GAAP adjusted net income to increase by 4% to 6% in RMB terms
over full year 2018 financial results.
This guidance does not factor in any potential foreign currency
translation impact. Having previously adopted an exchange rate of
approximately RMB6.59 = $1.00 based on weighted average quarterly
exchange rates in 2018 in translating 2018 financial results, the
Company expects that the total sales and non-GAAP adjusted net
income in USD terms in 2019 could be affected by the foreign
currency translation impact.
This guidance excludes potential acquisitions, and necessarily
assumes no significant adverse product price changes during 2019.
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 May 13, 2019, which is 7:30 pm Beijing Time on May 13, 2019, to discuss its first quarter 2019
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 May
20, 2019. The dial-in details are:
US:
|
1 877 344
7529
|
International:
|
1 412 317
0088
|
Passcode:
|
10131286
|
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. Since the
acquisition of TianXinFu (Beijing)
Medical Appliance Co., Ltd. in 2018, China Biologic is also engaged
in the sale of medical devices, primarily regenerative medical
biomaterial products. 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 and amortization of acquired
intangible assets and land use rights. To supplement the Company's
unaudited 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.
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
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 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
Email: ir@chinabiologic.com
The Foote Group
Mr. Philip Lisio
Phone: +86-135-0116-6560
Email: phil@thefootegroup.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
|
|
March 31,
2019
|
|
March 31,
2018
|
|
USD
|
|
USD
|
Sales:
|
129,784,067
|
|
112,464,890
|
Plasma products:
|
|
|
|
Human Albumin
|
56,812,789
|
|
33,795,961
|
Immunoglobulin products:
|
|
|
|
Human Immunoglobulin for
Intravenous Injection
|
29,044,180
|
|
31,785,221
|
Other Immunoglobulin
products
|
13,089,220
|
|
13,019,557
|
Others
|
9,870,008
|
|
6,372,962
|
Placenta Polypeptide
|
7,658,990
|
|
16,094,645
|
Biopharmaceutical products
|
116,475,187
|
|
101,068,346
|
Artificial Dura Mater
|
12,314,033
|
|
9,943,983
|
Others
|
994,847
|
|
1,452,561
|
Biomaterial products
|
13,308,880
|
|
11,396,544
|
|
|
|
|
Cost of
sales
|
44,240,445
|
|
33,691,683
|
Gross
profit
|
85,543,622
|
|
78,773,207
|
|
|
|
|
Operating
expenses
|
|
|
|
Selling expenses
|
18,728,259
|
|
20,695,215
|
General and administrative expenses
|
20,597,560
|
|
17,387,075
|
Research and development expenses
|
2,330,825
|
|
1,716,954
|
Income from
operations
|
43,886,978
|
|
38,973,963
|
|
|
|
|
Other income
(expenses)
|
|
|
|
Equity in income of an equity method
investee
|
593,030
|
|
1,068,045
|
Interest expense
|
(63,777)
|
|
(67,564)
|
Interest income
|
6,525,839
|
|
3,003,929
|
Other income, net
|
1,600,376
|
|
1,285,063
|
Total other income,
net
|
8,655,468
|
|
5,289,473
|
|
|
|
|
Income before income
tax expense
|
52,542,446
|
|
44,263,436
|
|
|
|
|
Income tax
expense
|
7,918,442
|
|
6,707,455
|
|
|
|
|
Net income
|
44,624,004
|
|
37,555,981
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
6,931,898
|
|
5,970,904
|
|
|
|
|
Net income
attributable to China Biologic Products Holdings, Inc.
|
37,692,106
|
|
31,585,077
|
|
|
|
|
Earnings per share of
ordinary share:
|
|
|
|
Basic
|
0.94
|
|
0.93
|
Diluted
|
0.94
|
|
0.92
|
Weighted average
shares used in computation:
|
|
|
|
Basic
|
39,331,954
|
|
33,150,695
|
Diluted
|
39,412,441
|
|
33,338,470
|
|
|
|
|
Net income
|
44,624,004
|
|
37,555,981
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
24,316,421
|
|
31,793,225
|
|
|
|
|
Comprehensive
income
|
68,940,425
|
|
69,349,206
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
8,752,259
|
|
9,363,694
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products Holdings, Inc.
|
60,188,166
|
|
59,985,512
|
CHINA BIOLOGIC
PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and
cash equivalents
|
|
99,014,190
|
|
338,880,559
|
Time
deposits
|
|
653,776,239
|
|
537,478,040
|
Short
term investments
|
|
171,246,688
|
|
76,048,594
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
136,879,611
|
|
125,115,842
|
Inventories
|
|
251,949,296
|
|
243,295,512
|
Prepayments and other current assets, net of allowance for
doubtful accounts
|
|
56,706,504
|
|
36,369,275
|
Total Current Assets
|
|
1,369,572,528
|
|
1,357,187,822
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
181,435,868
|
|
178,327,361
|
Intangible assets,
net
|
|
52,381,256
|
|
53,258,871
|
Land use rights,
net
|
|
35,058,239
|
|
32,204,342
|
Equity method
investment
|
|
16,319,927
|
|
15,428,028
|
Prepayment in equity
securities
|
|
-
|
|
10,812,893
|
Other
investments
|
|
10,812,893
|
|
-
|
Loan receivable - non
current
|
|
39,072,334
|
|
39,942,591
|
Goodwill
|
|
319,636,741
|
|
313,588,803
|
Other non-current
assets
|
|
11,969,205
|
|
9,227,970
|
Total Assets
|
|
2,036,258,991
|
|
2,009,978,681
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
4,427,318
|
|
11,404,642
|
Income
tax payable
|
|
12,978,577
|
|
11,010,347
|
Other
payables and accrued expenses
|
|
91,105,696
|
|
99,933,793
|
Total Current Liabilities
|
|
108,511,591
|
|
122,348,782
|
|
|
|
|
|
Deferred
income
|
|
2,754,860
|
|
2,824,212
|
Non-current income
tax payable
|
|
26,899,038
|
|
26,899,038
|
Other
liabilities
|
|
14,921,225
|
|
13,203,485
|
Total Liabilities
|
|
153,086,714
|
|
165,275,517
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Ordinary
share:
|
|
|
|
|
par value $0.0001;
|
|
|
|
|
100,000,000 shares authorized;
|
|
|
|
|
41,633,669 and
41,616,320 shares issued at March 31, 2019 and December 31, 2018,
respectively;
|
|
|
|
|
38,963,609 and 39,361,616 shares outstanding at
March 31, 2019 and December 31, 2018, respectively
|
|
4,163
|
|
4,162
|
Additional paid-in capital
|
|
1,196,008,137
|
|
1,189,698,494
|
Treasury
share: 2,670,060 shares at March 31, 2019 and 2,254,704 at
December31, 2018, respectively, at
cost
|
|
(93,206,049)
|
|
(56,425,094)
|
Retained
earnings
|
|
672,174,844
|
|
634,482,738
|
Accumulated other comprehensive loss
|
|
(23,214,642)
|
|
(45,710,701)
|
Total equity attributable to China
Biologic Products Holdings, Inc.
|
|
1,751,766,453
|
|
1,722,049,599
|
|
|
|
|
|
Noncontrolling interest
|
|
131,405,824
|
|
122,653,565
|
|
|
|
|
|
Total Shareholders'
Equity
|
|
1,883,172,277
|
|
1,844,703,164
|
|
|
|
|
|
Commitments and contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Shareholders'
Equity
|
|
2,036,258,991
|
|
2,009,978,681
|
CHINA BIOLOGIC
PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
March 31,
|
|
March 31,
|
|
|
2019
|
|
2018
|
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net
income
|
|
44,624,005
|
|
37,555,981
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
3,959,985
|
|
2,325,609
|
Amortization
|
|
2,439,384
|
|
2,404,758
|
Loss on disposal of
property, plant and equipment
|
|
37,829
|
|
44,142
|
Fair value changes of
short term investments
|
|
(836,538)
|
|
(1,285,063)
|
Allowance for
doubtful accounts - accounts receivable, net
|
|
2,224,200
|
|
-
|
Reversal for doubtful
accounts - prepayments and other receivables
|
|
(19,560)
|
|
-
|
Deferred income tax
benefit
|
|
(382,896)
|
|
(846,255)
|
Share-based
compensation
|
|
6,305,967
|
|
9,009,234
|
Equity in income of
an equity method investee
|
|
(593,030)
|
|
(1,068,045)
|
Change in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(11,554,181)
|
|
(15,505,930)
|
Inventories
|
|
(3,952,734)
|
|
(10,766,490)
|
Prepayments and other
current assets
|
|
3,546,405
|
|
(4,582,769)
|
Other non-current
assets
|
|
(550,055)
|
|
-
|
Accounts
payable
|
|
(5,544,331)
|
|
(1,942,878)
|
Income tax
payable
|
|
1,751,980
|
|
1,504,625
|
Other payables and
accrued expenses
|
|
(9,000,340)
|
|
6,618,643
|
Deferred
income
|
|
(123,545)
|
|
(130,974)
|
Other
liabilities
|
|
(166,909)
|
|
-
|
Net cash provided
by operating activities
|
|
32,165,636
|
|
23,334,588
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Cash acquired from
acquisition of TianXinFu
|
|
-
|
|
97,702,278
|
Purchase of time
deposits
|
|
(743,412,316)
|
|
(84,828,600)
|
Proceeds from
maturity of time deposits
|
|
629,307,453
|
|
3,000,000
|
Purchase of short
term investments
|
|
(193,967,620)
|
|
(179,855,473)
|
Proceeds from
maturity of short term investments
|
|
101,281,030
|
|
39,772,069
|
Payment for property,
plant and equipment
|
|
(5,468,377)
|
|
(11,048,396)
|
Payment for
intangible assets and land use rights
|
|
(2,453,524)
|
|
(255,664)
|
Proceeds from
disposal of property, plant and equipment
|
|
436
|
|
10,722
|
Net cash used in
investing activities
|
|
(214,712,918)
|
|
(135,503,064)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds from stock
option exercised
|
|
3,678
|
|
339,411
|
Payment to an
investment bank for share repurchase
|
|
(60,000,000)
|
|
-
|
Net cash (used
in)/ provided by financing activities
|
|
(59,996,322)
|
|
339,411
|
|
|
|
|
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS
|
|
2,677,235
|
|
10,697,430
|
|
|
|
|
|
NET DECREASE IN
CASH AND CASH EQUIVALENTS
|
|
(239,866,369)
|
|
(101,131,635)
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
338,880,559
|
|
219,336,848
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
99,014,190
|
|
118,205,213
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Cash paid for income
taxes
|
|
6,687,364
|
|
6,352,407
|
Noncash investing and
financing activities:
|
|
|
|
|
Acquisition of
property, plant and equipment included in payables
|
|
2,113,697
|
|
5,389,336
|
Set-off loan
receivable against accounts payable
|
|
1,636,952
|
|
-
|
Fair value of noncash
assets acquired and liabilities assumed in acquisition of
TianXinFu
|
-
|
|
337,186,892
|
Land use right
acquired with prepayments made in prior periods
|
|
2,689,467
|
|
-
|
Share repurchase
using the prepayment to an investment bank
|
|
36,780,955
|
|
-
|
CHINA BIOLOGIC
PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2019
|
|
2018
|
|
|
|
USD
|
|
USD
|
Income from
Operations
|
|
|
43,886,978
|
|
38,973,963
|
Non-cash employee
share-based compensation
|
|
6,305,967
|
|
9,009,234
|
Amortization of
acquired intangible assets and land use rights
|
|
2,055,032
|
|
2,157,302
|
Adjusted Income from
Operations - Non GAAP
|
|
52,247,977
|
|
50,140,499
|
|
|
|
|
|
|
Net Income
Attributable to the Company
|
|
37,692,106
|
|
31,585,077
|
Non-cash employee
share-based compensation
|
|
5,450,091
|
|
8,262,637
|
Amortization of
acquired intangible assets and land use rights
|
|
1,397,422
|
|
1,466,965
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
|
44,539,619
|
|
41,314,679
|
Diluted EPS - Non
GAAP
|
|
|
1.11
|
|
1.21
|
|
|
|
|
|
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
39,412,441
|
|
33,338,470
|
View original
content:http://www.prnewswire.com/news-releases/china-biologic-reports-financial-results-for-the-first-quarter-of-2019-300847980.html
SOURCE China Biologic Products Holdings, Inc.