BEIJING, Nov. 5, 2013 /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 2013.
Third Quarter 2013 Financial Highlights
- Total sales in the third quarter of 2013 were
$53.2 million, compared to
$53.1 million in the same quarter of
2012.
- Gross profit decreased slightly to $36.0 million from $36.2
million in the same quarter of 2012. Gross margin was 67.7%
in the third quarter of 2013, compared to 68.1% in the third
quarter of 2012.
- Income from operations increased by 13.4% to
$23.2 million from $20.4 million in the same quarter of 2012.
Operating margin increased to 43.6% in the third quarter of 2013
from 38.4% in the same quarter of 2012.
- Net income attributable to the Company increased by 7.9%
to $14.7 million from $13.6 million in the same quarter of 2012.
Fully diluted net income per share was $0.53 in the third quarter of 2013 as compared to
$0.50 in the same quarter of
2012.
- Non-GAAP adjusted net income attributable to the Company
was $15.5 million, representing a
5.8% increase from $14.7 million in
the same quarter of 2012. Non-GAAP adjusted net income per
share was $0.56, compared to
$0.54 in the same quarter of
2012.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are pleased with our solid financial performance and sound
operational execution in the third quarter, particularly in
comparison with the third quarter in the prior year, which was also
a strong quarter. Our Shandong
facility experienced a double-digit sales increase in the third
quarter and, as anticipated, our Guizhou facility suspended production since
June 1, 2013. The financial impact
associated with our Guizhou
facility remains in-line with our internal forecast and our total
sales for the first nine months of this year continue to grow as
planned."
"As we stated last quarter, market demand for plasma-based
products in China remained strong.
This contributed to an increase in albumin import volume and had a
slightly negative impact on product pricing. We continue to closely
monitor market trends to adjust our pricing and product shipments
accordingly. During the reporting quarter, we maintained strong
operating margin, thanks to a more profitable product mix,
efficient cost control measures due to reduced selling and G&A
expenses, as well as improved plasma utilization efficiency
following the launch of our Factor VIII products."
"During the third quarter, in Shandong, our new plasma station in Cao County
continued to ramp up. After receiving SFDA approval in 2012, we
have identified sufficient patients in recent months to initiate
phase III clinical trials for Human Fibrinogen, a product used to
treat congenital fibrinogen deficiency and acquired fibrinogen
deficiency. In July, Shandong Taibang received SFDA manufacturing
approval for a new 300 IU vial dosage of Factor VIII. This addition
to our product portfolio reflects our ongoing commitment of
improving product offering in general and advancing hemophilia
therapy treatment in particular. We expect to commence commercial
production in the following months. In Guizhou, we received SFDA manufacturing
approval for Human Prothrombin Complex Concentrate ("PCC") at the
end of July and expect to obtain GMP certification and start
commercial production when our Guizhou facility resumes production in
2014."
"Finally, we closed our share repurchase transaction in the
third quarter, under which we repurchased approximately 1.48
million shares of our common stock, representing approximately
5.49% of the total common stock outstanding as of August 2, 2013, from one of our individual
shareholders. We believe this share repurchase has improved our
Company's shareholder structure, enhances shareholder value and may
also improve our EPS performance."
Third Quarter 2013 Financial Performance
Total sales in the third quarter of 2013 were
$53.2 million, compared to
$53.1 million in the same quarter of
2012. Excluding the foreign currency impact, sales in RMB term
decreased slightly by 2.5%. Third quarter sales results were
primarily attributable to a 38% sales decline at the Company's
Guizhou facility, due to the
planned production suspension at this facility, which was in line
with management's projection, partially offset by a 21% sales
increase in the Company's Shandong
facility. During the three months ended September 30, 2013, the average price for
Company's human albumin products increased by approximately 11.0%
and the average price for human immunoglobulin for intravenous
injection ("IVIG") remained stable. The price increase for the
human albumin products was primarily attributable to the increase
of the retail price ceiling announced by the NDRC in January 2013.
During the third quarter of 2013, human albumin products and
IVIG products remained the largest two sales contributors.
- As a percentage of total sales, revenue from human albumin
products was 49.7% in the third quarter of 2013 as compared to
43.3% in the same quarter of 2012. Sales volume of human albumin
products increased slightly by 2.7% in the reporting quarter,
primarily driven by increased sales at Shandong Taibang partially
due to the delayed shipments.
- As a percentage of total sales, revenue from IVIG products was
32.3% in the third quarter of 2013 as compared to 44.1% in the same
quarter of 2012. Sales volume of IVIG products decreased by 27.2%
in the quarter, mainly due to the reduced production volume as a
result of the planned production suspension at Guizhou
Taibang.
Cost of sales increased slightly to $17.2 million in the third quarter of 2013 from
$16.9 million in the same quarter of
2012. Cost of sales as a percentage of total sales was 32.3%, as
compared to 31.9% in the same quarter of 2012.
Gross profit decreased slightly to $36.0 million in the third quarter of 2013 from
$36.2 million in the same quarter of
2012. Gross margin was 67.7% and 68.1% for the three months
ended September 30, 2013 and 2012,
respectively. The decrease in gross margin was mainly due to the
increase in cost of plasma paid to donors in 2013 as compared to
2012.
Total operating expenses in the third quarter of 2013
decreased by 18.7% to $12.8 million
from $15.8 million in the same
quarter of 2012. As a percentage of total sales, total operating
expenses decreased to 24.1% from 29.7% in the same quarter of
2012.
Selling expenses in the third quarter of 2013 decreased
by 28.0% to $2.6 million from
$3.5 million in the same quarter of
2012. As a percentage of total sales, selling expenses were 4.8%,
down from 6.7% in the same quarter of 2012. The decrease was
primarily due to increasingly stringent control on selling expenses
since the second half of 2012.
General and administrative expenses in the third quarter
of 2013 decreased by 20.5% to $9.2
million from $11.6 million in
the same quarter of 2012. As a percentage of total sales, general
and administrative expenses were 17.3% and 21.8% in the third
quarter of 2013 and 2012, respectively. The decrease in G&A
expenses was mainly due to the decrease of payroll expenses in
Guizhou Taibang as a result of the production suspension in the
third quarter of 2013. In addition, China Biologic incurred
amortization expenses related to the Guizhou Taibang acquisition in
the third quarter of 2012 that had been fully amortized by the end
of 2012, and consequently did not result in any similar expenses in
the third quarter of 2013.
Research and development expenses in the third quarter of
2013 were $1.1 million, representing
an increase of 65.3% from $637
thousand in the same quarter of 2012. As a percentage of
total sales, research and development expenses for the three months
ended September 30, 2013 and 2012
were 2.0% and 1.2%, respectively. The increase in R&D expenses
was mainly due to certain technical support services the Company
engaged to improve production yields on certain hyper-immune
products for the three months ended September 30, 2013. In addition, during the third
quarter of 2013, the Company started the phase III clinical trials
for Human Fibrinogen, a product to be used to treat congenital
fibrinogen deficiency and acquired fibrinogen deficiency.
Income from operations for the three months ended
September 30, 2013 was $23.2 million, representing an increase of 13.4%
from $20.4 million in the same period
of 2012. Operating margin increased to 43.6% in the reporting
quarter from 38.4% in the same quarter of 2012.
Income tax expense in the third quarter of 2013 was
$4.9 million, as compared to
$3.5 million in the same quarter of
2012, representing an increase of 40.0%. The effective income tax
rates were 19.6% and 15.9% for the three months ended September 30, 2013 and 2012, respectively.
Net income attributable to the Company increased
by 7.9% to $14.7 million in the third
quarter of 2013, from $13.6 million
in the same quarter of 2012. Net margins were 27.6% and 25.6% for
the three months ended September 30,
2013 and 2012, respectively. Fully diluted net income per
share was $0.53, as compared to
$0.50 in the third quarter of
2012.
Non-GAAP adjusted net income attributable to the Company
was $15.5 million or $0.56 per diluted share in the third quarter of
2013, compared to $14.7 million or
$0.54 per diluted share in the same
quarter of 2012.
Non-GAAP adjusted net income and diluted earnings per share for
the three months ended September 30,
2013 excluded $0.9 million of
non-cash employee share-based compensation expenses.
First Nine Months 2013 Financial Performances
Total sales in the first nine months of 2013 were
$160.8 million, representing an
increase of 6.6% from $150.8 million
in the same period of 2012. The increase in sales was primarily
attributable to a combined effect of price and volume increases in
certain plasma-based products.
As a percentage of total sales, sales from human albumin
products and IVIG products were 43.3% and 39.8%, respectively, for
the nine months ended September 30,
2013.
Cost of sales increased slightly to $49.9 million in the first nine months of 2013,
from $48.8 million in the same period
of 2012. Cost of sales as a percentage of total sales was 31.0%, as
compared to 32.3% in the same period of 2012.
Gross profit increased by 8.6% to $110.9 million in the first nine months of 2013
from $102.0 million in the same
period of 2012. Gross margin increased to 69.0% in the first
nine months of 2013 from 67.7% in the same period of 2012. The
improvement of the Company's overall gross margin was mainly due to
the improved gross margin of human albumin products as a result of
price increases and the improved utilization efficiency of plasma
following the launch of Factor VIII products.
Total operating expenses in the first nine months of 2013
decreased by 12.3% to $36.4 million
from $41.5 million in the same period
of 2012. The decrease of total operating expenses was mainly due to
the decrease in the selling expenses. As a percentage of total
sales, total operating expenses decreased to 22.6% for the nine
months ended September 30, 2013, from
27.5% in the same period of 2012.
Income from operations for the nine months ended
September 30, 2013 was $74.5 million, an increase of 23.0% from
$60.6 million in the same period of
2012.
Income tax expense in the first nine months of 2013 was
$13.2 million, an increase of 32.4%
from $10.0 million in the same period
of 2012. The effective income tax rates were 16.9% and 15.2% for
the nine months ended September 30,
2013 and 2012, respectively. The tax rate applicable to the
Company's major operating subsidiaries in the PRC for 2012 and 2013
is 15%.
Net income attributable to the Company increased
by 16.1% to $45.8 million for the
nine months ended September 30, 2013,
from $39.4 million in the same period
of 2012. Net margins were 28.5% and 26.1% for the nine months ended
September 30, 2013 and 2012,
respectively.
Non-GAAP adjusted net income attributable to the Company
was $49.4 million or $1.77 per diluted share for the nine months ended
September 30, 2013 compared with
$40.7 million or $1.52 per diluted share in the same period of
2012.
Non-GAAP adjusted net income and diluted earnings per share in
the nine months ended September 30,
2013 excluded $3.6 million of
non-cash employee share-based compensation expenses.
As of September 30, 2013, the
Company had cash and cash equivalents of $131.5 million, compared to $129.6 million as of December 31, 2012.
Net cash provided by operating activities for the nine
months ended September 30, 2013 was
$58.5 million, as compared to
$64.8 million for the same period of
2012. The decrease in net cash provided by operating activities was
mainly due to an increase in inventory and accounts receivable. The
increase in inventories was mainly due to the planned production
suspension of Guizhou Taibang. The increase in accounts receivable
was largely due to hospital clients increasing their inventory
levels toward the end of September in anticipation of the long
national holiday in October.
Net cash used in investing activities for the nine months
ended September 30, 2013 was
$17.5 million compared to
$23.1 million in the prior year nine
month period.
Net cash used in financing activities for the nine months
ended September 30, 2013 was
$42.6 million compared to net cash
provided by financing activities of $0.2
million in the prior year nine month period. Net cash used
in financing activities for the nine months ended September 30, 2013 mainly consisted of a payment
of $29.6 million for share repurchase
and a dividend of $10.9 million paid
by the Company's subsidiaries to the non-controlling interest
shareholders.
Outlook
For the full year of 2013, the Company expects to meet the high
end of its total sales forecast range of $195 million to $205 million. Based on the
Company's strong margin performance in the third quarter and
favorable outlook for the remainder of the year, it is raising its
full year non-GAAP adjusted net income estimate to the range of
$58 million to $60 million, a 13-16%
increase from the estimate provided last quarter.
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 Wednesday, November 6, 2013, which is
8:30 pm, Beijing Time on November 6, 2013, to discuss third quarter 2013
results and answer questions from investors. Listeners may access
the call by dialing:
US:
|
+1 866 652
5200
|
International:
|
+1 412 317
6060
|
Hong Kong:
|
06 800
20175
|
China:
|
400 120
1203
|
Passcode:
|
10036364
|
A telephone replay of the call will be available after the
conclusion of the conference all through 9:00 am, Eastern Time on November 14, 2013. The dial-in details
are:
US:
|
+1 877 344
7529
|
International:
|
+1 412 317
0088
|
Passcode:
|
10036364
|
A live and archived webcast of the conference call will be
available through the Company's investor relations website at
http://chinabiologic.investorroom.com.
About China Biologic Products, Inc.
China Biologic Products, Inc. (Nasdaq: CBPO), is a leading fully
integrated plasma-based biopharmaceutical company in China. The Company's products are used as
critical therapies during medical emergencies and for the
prevention and treatment of life-threatening diseases and
immune-deficiency related diseases. China Biologic is headquartered
in Beijing and manufactures over
20 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 and
restricted shares granted to employees and directors under the
Company's 2008 Equity Incentive Plan and changes in the fair value
of warrants. To supplement the Company's unaudited condensed
consolidated financial statements presented on a GAAP basis, the
Company has provided non-GAAP financial information excluding the
impact of these items in this release. The Company's management
believes that these non-GAAP measures provide investors with a
better understanding of how the results relate to the Company's
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
2013, 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. Bill Zima
Phone: +86-10-6583-7511 or +1-646-405-5191
E-mail: bill.zima@icrinc.com
Financial statements follow.
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Sales
|
|
53,152,141
|
|
53,124,050
|
|
160,764,396
|
|
150,817,850
|
Cost of
sales
|
|
17,165,897
|
|
16,921,284
|
|
49,904,917
|
|
48,767,900
|
Gross
profit
|
|
35,986,244
|
|
36,202,766
|
|
110,859,479
|
|
102,049,950
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
2,551,245
|
|
3,545,378
|
|
6,829,365
|
|
12,536,727
|
General and administrative expenses
|
|
9,218,798
|
|
11,599,779
|
|
26,771,966
|
|
26,677,945
|
Research and development expenses
|
|
1,053,383
|
|
637,397
|
|
2,801,625
|
|
2,277,474
|
Income from
operations
|
|
23,162,818
|
|
20,420,212
|
|
74,456,523
|
|
60,557,804
|
|
|
|
|
|
|
|
|
|
Other income/
(expenses)
|
|
|
|
|
|
|
|
|
Equity in income of an equity method investee
|
|
642,579
|
|
744,976
|
|
1,382,524
|
|
2,219,279
|
Change in
fair value of derivative liabilities
|
|
-
|
|
-
|
|
-
|
|
1,769,140
|
Interest
expense
|
|
(306,656)
|
|
(223,992)
|
|
(741,569)
|
|
(990,190)
|
Interest
income
|
|
1,320,263
|
|
561,761
|
|
2,964,082
|
|
1,870,873
|
Other
income, net
|
|
-
|
|
449,815
|
|
-
|
|
347,029
|
Total other income,
net
|
|
1,656,186
|
|
1,532,560
|
|
3,605,037
|
|
5,216,131
|
|
|
|
|
|
|
|
|
|
Earnings before
income tax expense
|
|
24,819,004
|
|
21,952,772
|
|
78,061,560
|
|
65,773,935
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
4,871,041
|
|
3,479,683
|
|
13,223,592
|
|
9,990,014
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
19,947,963
|
|
18,473,089
|
|
64,837,968
|
|
55,783,921
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
5,251,940
|
|
4,855,939
|
|
19,064,159
|
|
16,370,694
|
|
|
|
|
|
|
|
|
|
Net income
attributable to China Biologic Products, Inc.
|
|
14,696,023
|
|
13,617,150
|
|
45,773,809
|
|
39,413,227
|
|
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
0.55
|
|
0.51
|
|
1.71
|
|
1.51
|
Diluted
|
|
0.53
|
|
0.50
|
|
1.64
|
|
1.41
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
|
|
Basic
|
|
26,288,154
|
|
26,546,929
|
|
26,649,563
|
|
26,009,707
|
Diluted
|
|
27,449,081
|
|
27,018,904
|
|
27,780,005
|
|
26,741,713
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
19,947,963
|
|
18,473,089
|
|
64,837,968
|
|
55,783,921
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income :
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
1,985,434
|
|
(86,731)
|
|
7,810,690
|
|
1,226,404
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
21,933,397
|
|
18,386,358
|
|
72,648,658
|
|
57,010,325
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
|
5,586,905
|
|
4,926,035
|
|
20,469,852
|
|
16,692,803
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products, Inc.
|
|
16,346,492
|
|
13,460,323
|
|
52,178,806
|
|
40,317,522
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2013
|
|
2012
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
131,496,674
|
|
129,609,317
|
Accounts receivable, net of
allowance for doubtful accounts
|
|
22,404,534
|
|
11,206,244
|
Inventories
|
|
83,676,773
|
|
75,679,173
|
Prepayments and other current
assets
|
|
6,480,946
|
|
5,664,919
|
Total
Current Assets
|
|
244,058,927
|
|
222,159,653
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
67,126,063
|
|
51,325,177
|
Intangible assets,
net
|
|
2,840,550
|
|
3,541,582
|
Land use rights,
net
|
|
7,038,767
|
|
5,818,709
|
Deposits related to
land use rights
|
|
16,772,063
|
|
14,752,574
|
Restricted cash and
deposit
|
|
32,064,962
|
|
2,912,145
|
Equity method
investment
|
|
11,652,366
|
|
10,537,310
|
Total
Assets
|
|
381,553,698
|
|
311,047,150
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Short-term bank
loans
|
|
4,890,000
|
|
7,935,000
|
Accounts payable
|
|
4,060,550
|
|
2,908,624
|
Due
to related parties
|
|
4,208,582
|
|
4,081,624
|
Other payables and accrued
expenses
|
|
29,625,322
|
|
25,423,349
|
Advance from
customers
|
|
2,100,906
|
|
2,857,420
|
Income tax payable
|
|
5,483,734
|
|
4,513,075
|
Total
Current Liabilities
|
|
50,369,094
|
|
47,719,092
|
|
|
|
|
|
Long-term bank
loans
|
|
30,000,000
|
|
-
|
Deferred
income
|
|
2,991,050
|
|
2,912,145
|
Other
liabilities
|
|
3,468,575
|
|
2,996,749
|
Total
Liabilities
|
|
86,828,719
|
|
53,627,986
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common stock:
|
|
|
|
|
par
value $0.0001;
|
|
|
|
|
100,000,000
shares authorized;
|
|
|
|
|
27,046,556
and 26,629,615 shares issued at September 30, 2013 and
December
31, 2012, respectively;
|
|
|
|
|
25,566,852
and 26,629,615 shares outstanding at September 30, 2013
and
December
31, 2012, respectively
|
|
2,704
|
|
2,663
|
Additional paid-in
capital
|
|
68,698,856
|
|
62,251,731
|
Treasury stock, 1,479,704 and nil
shares at September 30, 2013 and
December 31, 2012, respectively, at
cost
|
|
(29,594,080)
|
|
-
|
|
|
|
|
|
Retained earnings
|
|
164,916,809
|
|
119,143,000
|
Accumulated other comprehensive
income
|
|
20,477,319
|
|
14,072,322
|
Total equity attributable to China
Biologic Products, Inc.
|
|
224,501,608
|
|
195,469,716
|
|
|
|
|
|
Noncontrolling
interest
|
|
70,223,371
|
|
61,949,448
|
|
|
|
|
|
Total
Stockholders' Equity
|
|
294,724,979
|
|
257,419,164
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity
|
|
381,553,698
|
|
311,047,150
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
For the nine months
ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2013
|
|
2012
|
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net
income
|
|
64,837,968
|
|
55,783,921
|
|
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
|
4,550,598
|
|
4,326,425
|
Amortization
|
|
1,027,650
|
|
2,293,839
|
(Gain)/
loss on sale of property, plant and equipment
|
|
(138,450)
|
|
371,544
|
Allowance
for doubtful accounts, net
|
|
-
|
|
21,876
|
Provision
for doubtful accounts - other receivables and
prepayments
|
|
37,453
|
|
94,567
|
Deferred
tax expense/ (benefit)
|
|
428,037
|
|
(515,960)
|
Share-based
compensation
|
|
4,076,817
|
|
3,074,132
|
Change
in fair value of derivative liabilities
|
|
-
|
|
(1,769,140)
|
Equity
in income of an equity method investee
|
|
(1,382,524)
|
|
(2,219,279)
|
Change in
operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(10,758,305)
|
|
1,872,418
|
Prepayment
and other current assets
|
|
(720,340)
|
|
(468,800)
|
Inventories
|
|
(5,872,632)
|
|
3,507,968
|
Accounts
payable
|
|
1,254,404
|
|
(1,103,617)
|
Other
payables and accrued expenses
|
|
1,088,481
|
|
(398,905)
|
Advance
from customers
|
|
(823,499)
|
|
(939,904)
|
Due
to related parties
|
|
16,539
|
|
337,536
|
Income
tax payable
|
|
837,760
|
|
517,440
|
Net cash provided
by operating activities
|
|
58,459,957
|
|
64,786,061
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Payment for
property, plant and equipment
|
|
(17,076,459)
|
|
(7,436,719)
|
Payment for
intangible assets and land use rights
|
|
(1,141,197)
|
|
(796,707)
|
Dividend
received
|
|
560,980
|
|
1,109,115
|
Purchase of
short-term investment
|
|
-
|
|
(2,731,300)
|
Proceeds
from sale of property, plant and equipment
|
|
175,808
|
|
-
|
Payment
related to land use right
|
|
-
|
|
(13,220,568)
|
Net cash used in
investing activities
|
|
(17,480,868)
|
|
(23,076,179)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds
from stock option exercised
|
|
3,035,011
|
|
120,000
|
Proceeds
from warrants exercised
|
|
-
|
|
4,500,000
|
Proceeds
from short-term bank loans
|
|
4,808,400
|
|
11,076,100
|
Repayment
of short-term bank loans
|
|
(8,014,000)
|
|
(11,106,200)
|
Proceeds
from long-term bank loans
|
|
30,000,000
|
|
-
|
Payment for
deposit as security for long-term bank loans
|
|
(30,000,000)
|
|
-
|
Payment for
share repurchase
|
|
(29,594,080)
|
|
-
|
Acquisition
of noncontrolling interest
|
|
(1,963,913)
|
|
-
|
Dividends
paid by subsidiaries to noncontrolling interest
shareholders
|
|
(10,896,678)
|
|
(4,379,016)
|
Net cash (used
in)/ provided by financing activities
|
|
(42,625,260)
|
|
210,884
|
|
|
|
|
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH
|
|
3,533,528
|
|
390,585
|
|
|
|
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
|
1,887,357
|
|
42,311,351
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
129,609,317
|
|
89,411,835
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
131,496,674
|
|
131,723,186
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Cash paid
for income taxes
|
|
11,957,795
|
|
9,988,536
|
Cash paid
for interest expense
|
|
273,095
|
|
296,901
|
Noncash
investing and financing activities:
|
|
|
|
|
Acquisition
of property, plant and equipment included in
payables
|
|
1,502,623
|
|
-
|
Exercise
of warrants that were liability classified
|
|
-
|
|
3,641,279
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
FOR THE THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2013 and 2012
|
|
|
|
|
|
For the three months
ended
|
|
September 30,
|
|
September 30,
|
|
2013
|
|
2012
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
15,549,559
|
|
14,698,324
|
Diluted EPS - Non
GAAP
|
0.56
|
|
0.54
|
Non-cash employee
stock compensation
|
(853,536)
|
|
(1,081,174)
|
Net Income
Attributable to the Company
|
14,696,023
|
|
13,617,150
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
27,449,081
|
|
27,018,904
|
|
|
|
|
|
|
|
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2013
|
|
2012
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
49,351,104
|
|
40,718,219
|
Diluted EPS - Non
GAAP
|
1.77
|
|
1.52
|
Non-cash employee
stock compensation
|
(3,577,295)
|
|
(3,074,132)
|
Gain from change in
fair value of warrants
|
-
|
|
1,769,140
|
Net Income
Attributable to the Company
|
45,773,809
|
|
39,413,227
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
27,780,005
|
|
26,741,713
|
SOURCE China Biologic Products, Inc.