China Biologic Reports Financial Results for the Third Quarter and
First Nine Months of 2012
BEIJING, Nov. 8, 2012 /PRNewswire-FirstCall/ -- China
Biologic Products, Inc. (NASDAQ: CBPO, "China Biologic" or the
"Company"), a leading fully integrated plasma-based
biopharmaceutical company in China, today announced its unaudited financial
results for the third quarter of 2012.
Third Quarter 2012 Financial Highlights
- Total sales in the third quarter of 2012 increased by
28.6% to $53.1 million from
$41.3 million in the same quarter of
2011.
- Gross profit increased by 31.5% to $36.2 million from $27.5
million in the same quarter of 2011. Gross margin increased
to 68.1% in the third quarter of 2012 from 66.7% in the third
quarter of 2011.
- Income from operations was $20.4
million as compared to a loss of $9.4
million in the third quarter of 2011. The operating margin
was 38.4% in the third quarter of 2012.
- Net income attributable to the Company increased to
$13.6 million from a loss of
$9.4 million in the same quarter of
2011.
- Non-GAAP adjusted net income attributable to the Company
was $14.7 million or $0.54 per diluted share in the third quarter of
2012, representing a 33.2% increase from $11.0 million or $0.42 per diluted share in the same quarter of
last year.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We're pleased to see continued strong demand for our plasma
products in the third quarter, which allowed us to enjoy robust
top-line growth. Our efforts to optimize our sales strategy by
focusing more on direct sales to hospitals and inoculation centers
and to improve profitability have been effective, evidenced by our
operating margin increasing to a sizable 38.4% in the third
quarter. Thanks to enhanced corporate management initiatives,
accounts receivable and inventory levels also noticeably improved
with a 10.7% year-over-year decrease in accounts receivable and a
4.3% decrease in inventories.
"Due to better-than-expected market success combined with
efficient selling expense controls, as of the end of the third
quarter of 2012, we have surpassed our full-year non-GAAP adjusted
net income target. Looking to the fourth quarter, despite some
uncertainty following the recent government announcement on price
ceilings for some of our products, we believe China Biologic
nevertheless will continue benefitting from strong market demand
and expand our market penetration. For the full year of 2012, we
are confident that total sales will reach or surpass the high end
of our previous guidance of $176
million, representing mid-to-high-teens annual growth. We
expect non-GAAP adjusted net income to be in the range of
$46 million to $48 million, compared
to previous guidance of $38 million to $40
million."
Mr. Gao continued, "We are also proud to announce that we
received Good Manufacturing Practice certification for our Human
Coagulation Factor FVIII ("FVIII") production facility from the
Chinese State Food and Drug Administration in October and have
since started commercial production of FVIII. This development
rounds out our plasma product portfolio and further strengthens our
competitive position as a leading plasma-based biopharmaceutical
company in China. Going forward,
we intend to continue to develop and manufacture leading
life-enhancing, quality-assured products."
Third Quarter 2012 Financial Performances
Total sales in the third quarter of 2012 were
$53.1 million, representing an
increase of 28.6% from $41.3 million
in the same quarter of 2011. Excluding foreign exchange influence,
the increase in sales was primarily attributable to a mix of price
and volume increases in certain plasma-based products, as well as a
substantial increase in sales of placenta polypeptide products.
During the three months ended September 30,
2012, most of the Company's approved products recorded price
increases. The general price increases for the human albumin
products and immunoglobulin product group were primarily
attributable to strong market demand and a shortage of supply
following the closure of certain plasma stations in Guizhou.
During the three months ended September
30, 2012, human albumin products and human immunoglobulin
for intravenous injection ("IVIG") products remained the largest
two sales contributors.
- As a percentage of total sales, human albumin product revenue
was 43.3% in the third quarter of 2012 as compared to 54.4% in the
same quarter of 2011. During the three months ended September 30, 2012, sales volume of human albumin
products declined by 4.8%.
- As a percentage of total sales, IVIG revenue was 44.1% in the
third quarter of 2012 as compared to 31.0% in the same quarter of
2011. Sales volume of IVIG products increased by 68.4% in the
reporting quarter, mainly due to the increased market demand and
increased inventory level built up in the later part of 2011 in
anticipation of the demand increase.
Cost of sales increased by 22.8% to $16.9 million in the third quarter of 2012, from
$13.8 million in the same quarter of
2011. The increase was mainly due to the increase in sales volumes
and the increase in cost of plasma. Cost of sales as a percentage
of total sales was 31.9%, slightly down from 33.3% in the same
quarter of 2011. The decrease in cost of sales as a percentage of
sales was mainly due to the change of product mix to include higher
margin products.
Gross profit increased by 31.5% to $36.2 million in the third quarter of 2012, from
$27.5 million in the same quarter of
2011. Gross margin increased to 68.1% from 66.7% in the
third quarter of 2011.
Total operating expenses in the third quarter of 2012
decreased by 57.3% to $15.8 million
from $36.9 million in the same
quarter of 2011, primarily due to decreased impairment loss. The
Company incurred an impairment loss of $24.6
million, including both goodwill and abandonment of
long-lived assets as a result of the closure of several plasma
collection stations in Guizhou in
August 2011. No impairment loss was
recorded in the third quarter of 2012. As a percentage of total
sales, total operating expenses decreased to 29.7% for the three
months ended September 30, 2012, from
89.4% in the same quarter of 2011.
Selling expenses in the third quarter of 2012 decreased
to $3.5 million from $3.7 million in the same quarter of 2011. As a
percentage of total sales, selling expenses was 6.7% in the third
quarter of 2012, down from 9.0% in the third quarter of 2011. The
decrease in selling expenses as a percentage of sales was primarily
due to the decrease in commission expenses paid to distributors as
a result of the Company's sales strategy change to focus more on
direct sales to hospitals and inoculation centers.
General and administrative expenses in the third quarter
of 2012 rose to $11.6 million from
$8.1 million in the same quarter of
2011, representing an increase of 43.0%. The increase was mainly
due to new business development cost in connection with exploring
additional growth opportunity during the three months ended
September 30, 2012, as well as higher
payroll expenses. As a percentage of total sales, general and
administrative expenses was 21.8% in the third quarter of 2012, up
from 19.6% in the third quarter of 2011.
Research and development expenses in the third quarter of
2012 increased to $0.6 million from
$0.5 million in the same quarter of
2011, representing an increase of 25.2%. The increase in such
expenses was primarily due to the expenditure paid to an external
research and development institute in relation to a research and
development project for the three month ended September 30, 2012. As a percentage of total
sales, research and development expenses for the three months ended
September 30, 2012 and 2011 were 1.2%
and 1.2%, respectively.
Income from operations in the third quarter of 2012 was
$20.4 million, compared to a loss of
$9.4 million in the same quarter of
2011.
Gain from change in fair value of derivative
liabilities for the three months ended September 30, 2012 and 2011 were nil and
$2.9 million, respectively. The
recognized gain from the change in the fair value of derivative
liabilities in the third quarter of 2011 was mainly due to a
decrease in the price of the Company's common stock from
$10.20 as of June 30, 2011 to $6.81 as of September 30,
2011. The warrants have been fully exercised by the end of
June 2012 and there was no warrant
outstanding as of September 30,
2012.
Provision for income taxes in the third quarter of 2012
was $3.5 million, as compared to
$1.0 million in the same quarter of
2011. The effective income tax rates were 15.9% and negative 17.6%
for the three months ended September 30,
2012 and 2011, respectively.
Net income increased to $18.5
million for the three months ended September 30, 2012 from a loss of $6.8 million in the same period of 2011. Net
margins were 34.8% and negative 16.6% for the three months ended
September 30, 2012 and 2011,
respectively.
Net income attributable to the Company was $13.6 million, compared to a loss of $9.4 million in the same quarter of 2011.
Non-GAAP adjusted net income attributable to the Company
was $14.7 million or $0.54 per diluted share in the third quarter of
2012 compared with $11.0 million or
$0.42 per diluted share in the same
quarter of 2011.
Non-GAAP adjusted net income and diluted earnings per share in
the third quarter of 2012 excluded $1.1
million of non-cash employee share-based compensation
expenses.
First Nine Months 2012 Financial Performances
Total sales in the first nine months of 2012 were
$150.8 million, an increase of 28.4%
from $117.4 million in the same
period of 2011. The increase in sales was primarily attributable to
a mix of price and volume increases in plasma-based products, as
well as a substantial increase in sales of placenta polypeptide
products.
As a percentage of total sales, sales from human albumin
products and IVIG products were 45.3% and 39.7%, respectively, for
the nine months ended September 30,
2012.
Cost of sales increased to $48.8
million in the first nine months of 2012, from $35.6 million in the same period of 2011. Cost of
sales as a percentage of total sales was 32.3%, as compared to
30.3% in the same period of 2011. Volume and percentage increases
in cost of sales were mainly due to increased sales activities and
higher compensation paid to plasma donors.
Gross profit increased by 24.7% to $102.0 million in the first nine months of 2012
from $81.8 million in the same period
of 2011. Gross margin decreased to 67.7% in the first nine
months of 2012 from 69.7% in the same period of 2011.
Total operating expenses in the first nine months of 2012
decreased by 30.2% to $41.5 million
from $59.5 million in the same period
of 2011, primarily due to decreased impairment loss. The Company
incurred an impairment loss of $24.6
million in August 2011 related
to the closure of several plasma collection stations in
Guizhou. There was no impairment
loss recorded during the first nine months of 2012. This decrease
in impairment loss was partly offset by a 36.4% increase in selling
expenses and a 14.8% increase in general and administrative
expenses. As a percentage of total sales, total operating expenses
decreased to 27.5% for the nine months ended September 30, 2012, from 50.6% in the same period
of 2011.
Income from operations for the nine months ended
September 30, 2012 was $60.6 million, an increase of 170.7% from
$22.4 million in the same period of
2011.
Provision for income taxes in the first nine months of
2012 was $10.0 million, as compared
to $10.6 million in the same period
of 2011. The effective income tax rates were 15.2% and 30.9% for
the nine months ended September 30,
2012 and 2011, respectively.
Net income attributable to the Company increased
by 190.9% to $39.4 million for the
nine months ended September 30, 2012,
from $13.5 million in the same period
of 2011. Net margins were 26.1% and 11.5% for the nine months ended
September 30, 2012 and 2011,
respectively.
Non-GAAP adjusted net income attributable to the Company
was $40.7 million or $1.52 per diluted share for the nine months ended
September 30, 2012 compared with
$27.7 million or $1.04 per diluted share in the same period of
2011.
Non-GAAP adjusted net income and diluted earnings per share in
the nine months ended September 30,
2012 excluded an aggregate $1.8
million gain related to the change in the fair value of
derivative liabilities, and $3.1
million of non-cash employee share-based compensation
expenses.
As of September 30, 2012, the
Company had cash and short-term investment of $134.5 million, compared to $89.4 million as of December 31, 2011.
Net cash provided by operating activities for the nine
months ended September 30, 2012 was
$64.8 million, as compared to
$25.8 million for the nine months
ended September 30, 2011.
Outlook
For the full year of 2012, the Company now expects sales to
reach or surpass the high end of previous guidance of $176 million, representing mid-to-high-teens
annual growth. The Company estimates full year non-GAAP adjusted
net income to be in the range of $46 million
to $48 million, compared to the previous guidance range of
$38 million to $40 million.
Conference Call
The Company will host a conference call at 7:30 am, Eastern Time on Friday, November 9, 2012, which is 8:30 pm, Beijing Time on November 9, 2012, to discuss third quarter 2012
results and answer questions from investors. Listeners may
access the call by dialing:
US:
|
+1 866 549
1292
|
International:
|
+852 3005
2050
|
Hong Kong:
|
3005 2050
|
China
Domestic:
|
800 876 8626
|
China Domestic
Mobile:
|
400 681 6949
|
|
|
Passcode:
|
674 477#
|
A telephone replay of the call will be available after the
conclusion of the conference all through 11:59 pm, Eastern Time on November 16, 2012. The dial-in details are:
US:
|
+1 866 753
0743
|
International:
|
+852 3005
2020
|
Hong Kong:
|
3005 2020
|
China
Domestic:
|
800 876 5016
|
|
|
Passcode:
|
138 012#
|
About China Biologic Products, Inc.
China Biologic Products, Inc. (Nasdaq: CBPO), is a leading fully
integrated plasma-based biopharmaceutical company in China. The Company's products are used as
critical therapies during medical emergencies and for the
prevention and treatment of life-threatening diseases and
immune-deficiency related diseases. China Biologic is headquartered
in Beijing and manufactures over
20 plasma-based products through its indirect majority-owned
subsidiaries, Shandong Taibang Biological Products Co., Ltd. and
Guiyang Dalin Biologic Technologies Co., Ltd. The Company also has
an equity investment in Xi'an Huitian Blood Products Co., Ltd. The
Company sells its products to hospitals 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 granted
to employees and directors under the Company's 2008 Equity
Incentive Plan and changes in the fair value of derivative
liabilities, including warrants and derivative instruments
(including the conversion option) embedded in the Company's Senior
Secured Convertible Notes (after adding back interest related to
the convertible notes under the if-converted method). To supplement
the Company's condensed consolidated financial statements presented
on a GAAP basis, the Company has provided non-GAAP financial
information excluding the impact of these items in this release.
The Company's management believes that these non-GAAP measures
provide investors with a better understanding of how the results
relate to the Company's historical performance. A reconciliation of
the adjustments to GAAP results appears in the table accompanying
this news release. This additional non-GAAP information is not
meant to be considered in isolation or as a substitute for GAAP
financials. The non-GAAP financial information that the Company
provides also may differ from the non-GAAP information provided by
other companies.
Safe Harbor Statement
This news release may contain certain "forward-looking
statements" relating to the business of China Biologic Products,
Inc. and its subsidiaries. All statements, other than statements of
historical fact included herein, are "forward-looking statements."
These forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects," or
similar expressions, and involve known and unknown risks and
uncertainties. 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 its potential inability
to achieve the expected operating and financial performance in
2012, potential inability to find alternative sources of plasma,
potential inability to increase production at permitted sites,
potential inability to mitigate the financial consequences of a
temporarily reduced raw plasma supply through cost cutting or other
efficiencies, and potential additional regulatory restrictions on
its operations and those additional risks and uncertainties
discussed in the Company's periodic reports that are filed with the
Securities and Exchange Commission and available on its website
(http://www.sec.gov). All forward-looking statements attributable
to the Company or persons acting on its behalf are expressly
qualified in their entirety by these factors. Other than as
required under the securities laws, the Company does not assume a
duty to update these forward-looking statements.
Contact:
China Biologic Products, Inc.
Mr. Ming Yin
Vice President
Phone: +86-10-6598-3099
Email: ir@chinabiologic.com
ICR Inc.
Mr. Rob Koepp
Phone: +86-10-6583-7516 or +1-646-405-5191
E-mail: robert.koepp@icrinc.com
Financial statements follow.
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
For the three months
ended
|
|
|
For the nine months
ended
|
|
|
September 30,
2012
|
|
|
September 30,
2011
|
|
|
September 30,
2012
|
|
|
September 30,
2011
|
Sales
|
|
|
|
|
|
|
|
|
|
|
|
External customers
|
$
|
53,124,050
|
|
$
|
41,137,473
|
|
$
|
150,817,850
|
|
$
|
117,197,707
|
Related party
|
|
-
|
|
|
166,228
|
|
|
-
|
|
|
242,274
|
Total sales
|
|
53,124,050
|
|
|
41,303,701
|
|
|
150,817,850
|
|
|
117,439,981
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
External customers
|
|
16,921,284
|
|
|
13,741,811
|
|
|
48,767,900
|
|
|
35,531,374
|
Related party
|
|
-
|
|
|
32,698
|
|
|
-
|
|
|
67,302
|
Cost of sales
|
|
16,921,284
|
|
|
13,774,509
|
|
|
48,767,900
|
|
|
35,598,676
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
36,202,766
|
|
|
27,529,192
|
|
|
102,049,950
|
|
|
81,841,305
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
3,545,378
|
|
|
3,703,683
|
|
|
12,536,727
|
|
|
9,191,739
|
General and administrative expenses
|
|
11,599,779
|
|
|
8,110,693
|
|
|
26,677,945
|
|
|
23,240,140
|
Research and development expenses
|
|
637,397
|
|
|
509,061
|
|
|
2,277,474
|
|
|
2,439,029
|
Impairment loss of goodwill
|
|
-
|
|
|
18,064,183
|
|
|
-
|
|
|
18,064,183
|
Loss on abandonment of long-lived
assets
|
|
-
|
|
|
6,536,517
|
|
|
-
|
|
|
6,536,517
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
operations
|
|
20,420,212
|
|
|
(9,394,945)
|
|
|
60,557,804
|
|
|
22,369,697
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) /
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Equity in income of equity method
investee
|
|
(744,976)
|
|
|
(712,320)
|
|
|
(2,219,279)
|
|
|
(1,446,402)
|
Change in fair value of derivative
liabilities
|
|
-
|
|
|
(2,863,870)
|
|
|
(1,769,140)
|
|
|
(15,061,119)
|
Interest expense
|
|
223,992
|
|
|
404,349
|
|
|
990,190
|
|
|
4,385,872
|
Interest income
|
|
(561,761)
|
|
|
(473,278)
|
|
|
(1,870,873)
|
|
|
(913,003)
|
Other (income) / expenses, net
|
|
(449,815)
|
|
|
63,773
|
|
|
(347,029)
|
|
|
1,134,055
|
Total other income,
net
|
|
(1,532,560)
|
|
|
(3,581,346)
|
|
|
(5,216,131)
|
|
|
(11,900,597)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings / (loss) before
income tax expense
|
|
21,952,772
|
|
|
(5,813,599)
|
|
|
65,773,935
|
|
|
34,270,294
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
3,479,683
|
|
|
1,022,310
|
|
|
9,990,014
|
|
|
10,602,775
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
18,473,089
|
|
|
(6,835,909)
|
|
|
55,783,921
|
|
|
23,667,519
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to the noncontrolling interest
|
|
4,855,939
|
|
|
2,525,768
|
|
|
16,370,694
|
|
|
10,120,516
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to China Biologic Products, Inc.
|
|
13,617,150
|
|
|
(9,361,677)
|
|
|
39,413,227
|
|
|
13,547,003
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.51
|
|
$
|
(0.37)
|
|
$
|
1.51
|
|
$
|
0.55
|
Diluted
|
$
|
0.50
|
|
$
|
(0.37)
|
|
$
|
1.41
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used in computation:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
26,546,929
|
|
|
25,551,125
|
|
|
26,009,707
|
|
|
24,849,403
|
Diluted
|
|
27,018,904
|
|
|
25,551,125
|
|
|
26,741,713
|
|
|
26,707,840
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive
income, net of nil income taxes
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(86,731)
|
|
|
2,064,884
|
|
|
1,226,404
|
|
|
5,890,724
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income /
(loss)
|
|
18,386,358
|
|
|
(4,771,025)
|
|
|
57,010,325
|
|
|
29,558,243
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to the
noncontrolling interest
|
|
4,926,035
|
|
|
3,656,716
|
|
|
16,692,803
|
|
|
11,971,012
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income /
(loss) attributable to China Biologic
Products, Inc.
|
|
13,460,323
|
|
|
(8,427,741)
|
|
|
40,317,522
|
|
|
17,587,231
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
September 30,
2012
|
|
December 31,
2011
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash
|
$
|
131,723,186
|
|
$
|
89,411,835
|
Short-term
investment
|
|
2,727,509
|
|
|
-
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
14,961,521
|
|
|
16,757,368
|
Inventories
|
|
68,243,398
|
|
|
71,338,590
|
Other
receivables
|
|
1,574,434
|
|
|
2,594,461
|
Prepayments
and prepaid expenses
|
|
2,557,452
|
|
|
1,591,696
|
Deferred
tax assets
|
|
1,905,210
|
|
|
1,999,563
|
Total Current Assets
|
|
223,692,710
|
|
|
183,693,513
|
Property, plant and
equipment, net
|
|
39,153,534
|
|
|
40,546,539
|
Intangible assets,
net
|
|
4,279,035
|
|
|
6,520,671
|
Land use rights,
net
|
|
5,838,420
|
|
|
5,487,343
|
Prepayments and deposits
for property, plant and equipment
|
|
9,391,850
|
|
|
4,287,492
|
Receivable related to
land use right
|
|
13,202,220
|
|
|
-
|
Equity method
investment
|
|
10,066,951
|
|
|
8,357,017
|
Total Assets
|
$
|
305,624,720
|
|
$
|
248,892,575
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term
bank loans
|
$
|
11,081,000
|
|
$
|
11,018,000
|
Accounts
payable
|
|
3,922,947
|
|
|
4,996,463
|
Due to
related parties
|
|
4,047,780
|
|
|
3,319,938
|
Other
payables and accrued expenses
|
|
25,583,002
|
|
|
30,661,794
|
Advance
from customers
|
|
3,941,270
|
|
|
4,365,523
|
Advance
from customers - a related party
|
|
-
|
|
|
486,602
|
Income tax
payable
|
|
5,921,081
|
|
|
5,373,633
|
Other taxes
payable
|
|
2,322,662
|
|
|
2,189,913
|
Derivative
liabilities - warrants
|
|
-
|
|
|
5,410,419
|
Total Current Liabilities
|
|
56,819,742
|
|
|
67,822,285
|
Other payable
|
|
343,821
|
|
|
343,477
|
Deferred tax
liabilities
|
|
1,074,380
|
|
|
1,685,772
|
Total Liabilities
|
$
|
58,237,943
|
|
$
|
69,851,534
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Common
stock: par value $.0001; 100,000,000 shares authorized;
26,568,625 and 25,601,125
shares issued and outstanding at
September 30, 2012 and
December 31, 2011, respectively
|
$
|
2,657
|
|
$
|
2,560
|
Additional
paid-in capital
|
|
60,173,625
|
|
|
48,838,311
|
Retained
earnings
|
|
113,334,038
|
|
|
73,920,811
|
Accumulated
other comprehensive income
|
|
13,654,977
|
|
|
12,750,682
|
Total
stockholders' equity attributable to China Biologic Products,
Inc.
|
|
187,165,297
|
|
|
135,512,364
|
|
|
|
|
|
|
Noncontrolling interest
|
|
60,221,480
|
|
|
43,528,677
|
|
|
|
|
|
|
Total Equity
|
$
|
247,386,777
|
|
$
|
179,041,041
|
|
|
|
|
|
|
Commitments
and contingencies
|
|
-
|
|
|
-
|
|
|
|
|
|
|
Total Liabilities and Equity
|
$
|
305,624,720
|
|
$
|
248,892,575
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
For the nine months
ended
|
|
|
September 30,
2012
|
|
September 30,
2011
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
64,786,061
|
|
$
|
25,792,830
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Dividend
received
|
|
1,109,115
|
|
|
663,987
|
Payment for
property, plant and equipment
|
|
(7,436,719)
|
|
|
(5,878,973)
|
Payment for
intangible assets and land use right
|
|
(796,707)
|
|
|
(424,971)
|
Purchase of
short-term investment
|
|
(2,731,300)
|
|
|
-
|
Payment related
to land used right
|
|
(13,220,568)
|
|
|
-
|
Net cash used in
investing activities
|
|
(23,076,179)
|
|
|
(5,639,957)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds
from warrants exercised
|
|
4,500,000
|
|
|
-
|
Proceeds
from stock option exercised
|
|
120,000
|
|
|
100,000
|
Proceeds
from short term bank loans
|
|
11,076,100
|
|
|
18,373,200
|
Repayment
of short term bank loans
|
|
(11,106,200)
|
|
|
(10,871,200)
|
Acquisition
of noncontrolling interest
|
|
-
|
|
|
(7,635,000)
|
Dividend
paid by subsidiaries to noncontrolling interest
shareholders
|
|
(4,379,016)
|
|
|
(7,744,100)
|
Net cash provided by
/ (used in) financing activities
|
|
210,884
|
|
|
(7,777,100)
|
|
|
|
|
|
|
EFFECTS OF EXCHANGE RATE
CHANGE IN CASH
|
|
390,585
|
|
|
2,983,158
|
|
|
|
|
|
|
NET INCREASE IN CASH
|
|
42,311,351
|
|
|
15,358,931
|
|
|
|
|
|
|
Cash at the beginning of
period
|
|
89,411,835
|
|
|
64,941,368
|
|
|
|
|
|
|
Cash at the end of
period
|
$
|
131,723,186
|
|
$
|
80,300,299
|
|
|
|
|
|
|
Supplemental cash flow
information
|
|
|
|
|
|
Cash paid
for income taxes
|
$
|
9,988,536
|
|
$
|
11,175,285
|
Cash paid
for interest expense
|
$
|
296,901
|
|
$
|
690,755
|
Noncash
investing and financing activities:
|
|
|
|
|
|
Convertible notes conversion
|
$
|
-
|
|
$
|
12,972,000
|
Utilization of prepayments and deposits to acquire
intangible assets
|
$
|
-
|
|
$
|
128,861
|
Utilization of prepayments and deposits to acquire property, plant
and
equipment
|
$
|
-
|
|
$
|
526,328
|
Exercise
of warrants that were liability classified
|
$
|
3,641,279
|
|
$
|
-
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
FOR THE THREE MONTHS
& NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
|
|
|
For the three months ended
|
|
For the three months ended
|
|
|
9/30/2012
|
|
9/30/2011
|
|
|
Net
Income
|
|
Net
Income
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
$
|
14,698,324
|
|
$
|
11,034,533
|
Diluted EPS - Non
GAAP
|
|
$
|
0.54
|
|
$
|
0.42
|
Non-cash employee stock
compensation
|
|
$
|
(1,081,174)
|
|
$
|
(1,229,968)
|
Gain from change in fair
value of warrants
|
$
|
-
|
|
$
|
2,863,870
|
Impairment loss of
goodwill
|
$
|
-
|
|
$
|
(18,064,183)
|
Loss on abandonment of
long-lived assets attributable to the Company
|
$
|
-
|
|
$
|
(3,529,719)
|
Written-off of raw
material attributable to the Company due to closure of
plasma stations
|
$
|
-
|
|
$
|
(436,210)
|
Net Income attributable
to the Company
|
$
|
13,617,150
|
|
$
|
(9,361,677)
|
Weighted average number
of shares used in computation of Non GAAP diluted EPS
|
|
27,018,904
|
|
|
26,419,932
|
|
|
|
|
|
|
|
|
|
For the nine months
ended
|
|
For the nine months
ended
|
|
|
9/30/2012
|
|
9/30/2011
|
|
|
Net
Income
|
|
Net
Income
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
$
|
40,718,219
|
|
$
|
27,744,418
|
Diluted EPS - Non
GAAP
|
|
$
|
1.52
|
|
$
|
1.04
|
Non-cash employee stock
compensation
|
|
$
|
(3,074,132)
|
|
$
|
(3,648,255)
|
Impairment loss of goodwill
|
$
|
-
|
|
$
|
(18,064,183)
|
Loss on abandonment of
long-lived assets attributable to the Company
|
$
|
-
|
|
$
|
(3,529,719)
|
Written-off of raw
material attributable to the Company due to closure of
plasma stations
|
$
|
-
|
|
$
|
(436,210)
|
Interest on the
Notes
|
|
$
|
-
|
|
$
|
(3,580,167)
|
Gain from change in fair
value of embedded conversion option in the Notes
|
$
|
-
|
|
$
|
6,289,661
|
Gain from change in fair
value of warrants
|
$
|
1,769,140
|
|
$
|
8,771,458
|
Net Income attributable
to the Company
|
$
|
39,413,227
|
|
$
|
13,547,003
|
Weighted average number
of shares used in computation of Non GAAP diluted EPS
|
|
26,741,713
|
|
|
26,707,840
|
SOURCE China Biologic Products, Inc.