BEIJING, March 12, 2014 /PRNewswire/ -- China Biologic
Products, Inc. (NASDAQ: CBPO, "China Biologic" or the "Company"), a
leading fully integrated plasma-based biopharmaceutical company in
China, today announced its
financial results for the fourth quarter and fiscal year 2013.
Fourth Quarter 2013 Financial Highlights
- Total sales in the fourth quarter of 2013 increased by
25.3% to $42.6 million from
$34.0 million in the same quarter of
2012.
- Gross profit increased by 12.9% to $27.0 million from $23.9
million in the same quarter of 2012. Gross margin fell to
63.4% in the fourth quarter of 2013, from 70.4% in the fourth
quarter of 2012 primarily due to certain non-recurring,
higher-than-usual plasma costs for a portion of the products sold
in the quarter.
- Income from operations decreased by 10.4% to
$12.5 million from $13.9 million in the same quarter of 2012.
Operating margin decreased to 29.3% in the fourth quarter of 2013
from 41.0% in the same quarter of 2012 mainly due to higher selling
expenses resulting from increased Placenta Polypeptide product
shipments.
- Net income attributable to the Company increased by
52.0% to $8.8 million from
$5.8 million in the same quarter of
2012. Fully diluted net income per share was $0.32 in the fourth quarter of 2013 as compared
to $0.21 in the same quarter of
2012.
- Non-GAAP adjusted net income attributable to the Company
was $9.6 million, representing a
32.2% increase from $7.3 million in
the same quarter of 2012. Non-GAAP adjusted net income per
share was $0.35, compared to
$0.27 in the same quarter of
2012.
Fiscal Year 2013 Financial Highlights
- Total sales in 2013 increased by 10.0% to $203.4 million from $184.8
million in 2012.
- Gross profit in 2013 increased by 9.4% to $137.9 million from $126.0
million in 2012. Gross margin remained relatively stable at
67.8% and 68.2% in 2013 and 2012, respectively.
- Income from operations in 2013 increased by 16.7% to
$86.9 million from $74.5 million in 2012. Operating margin increased
to 42.7% in 2013 from 40.3% in 2012.
- Net income attributable to the Company increased by
20.7% to $54.6 million from
$45.2 million in 2012. Fully
diluted net income per share was $1.96 in 2013 as compared to $1.62 in 2012.
- Non-GAAP adjusted net income attributable to the Company
was $59.0 million, representing a
22.9% increase from $48.0 million in
2012. Non-GAAP adjusted net income per share was
$2.12, compared to $1.79 in 2012.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are proud of the material increase to our year-over-year sales
and net income results in spite of a temporary production
suspension for GMP renewal at our Guizhou facility midway through the year and
from a challenging comparison to strong 2012 financial results. Our
steady growth was supported by rising market demand, favorable
product pricing, stringent cost control measures, and most
importantly, the expansion of our product portfolio and transition
to a more profitable product mix. In 2013, we experienced a 16%
increase in our plasma collection volume, mostly through organic
growth at existing centers. In addition we added one new plasma
collection center in Cao County and enlarged collection territory
at two collection centers of our Guizhou subsidiary. During the year, we also
improved our plasma utilization efficiency following the launch of
our Factor VIII products. We are particularly pleased to have
amassed a market share of 19% in China's Factor VIII market during the first
year of its launch."
"In 2013, we accomplished a primary corporate goal of full
compliance with Good Manufacturing Practice ("GMP") standards at
our various facilities. Through our efforts, our Shandong Taibang
facility obtained the renewal of its GMP certification for plasma
production in June 2013, while our
Guizhou Taibang facility completed its GMP upgrade in January 2014. Moreover, in January 2014, we received GMP certification for
the Placenta Polypeptide production facility at Guizhou. We are expecting to receive GMP
certification and resume production in the second quarter as
planned for our plasma production facility. As such, we expect
higher growth with more products available for sales starting in
the third quarter this year. We are confident that, with these
upgrades, we can enhance our operating efficiency to meet growing
market demand moving forward."
Mr. Gao continued, "In an effort to expand our product portfolio
and increase profitability, we continue to make progress in several
important areas during 2013 that can contribute to our 2014
financial performance. We obtained SFDA approval to
manufacture Human Prothrombin Complex Concentrate ("PCC") at our
Guizhou Taibang facility and also received SFDA manufacturing
approval for a new dosage of FVIII (300IU), further reinforcing our
industry leadership. We also initiated phase III clinical
trials for Human Fibrinogen."
"We continue our efforts to enhance our shareholding structure
and increase shareholder value. During the last three quarters, we
closed two share repurchase transactions, where we repurchased an
aggregate 3.98 million shares of common stock for a total
consideration of $99.6 million. The
repurchased shares represent approximately 14.76% of the total
common stock outstanding in early August prior to the first share
repurchase."
Mr. Gao concluded, "Looking into 2014, we are confident that we
can further capitalize on growing demand for our products and
achieve greater levels of revenue growth. We anticipate our plasma
collection volume will continue to rise in both Shandong and Guizhou. We also see great opportunity to
further penetrate sales of IVIG and higher-margin hyper-immune
products in certain markets and increase our production and sales
of Placenta Polypeptide products. We expect to strengthen our
market leadership in human coagulation products, including FVIII,
and introduce PCC to the market in 2014. With the strength of
our current product portfolio and planned growth initiatives, we
believe 2014 will be another promising year for our company."
Fourth Quarter 2013 Financial Performance
Total sales in the fourth quarter of 2013 were
$42.6 million, representing an
increase of 25.3% from $34.0 million
in the same quarter of 2012. The increase was mainly due to the
substantial increase in albumin sales in Shandong and increased sales from Placenta
Polypeptide in Guizhou.
Cost of sales increased by 54.7% to $15.6 million from $10.1
million in the same quarter of 2012. Cost of sales as a
percent of total sales was 36.6%, compared to 29.6% in 2012. Volume
and percentage increases in cost of sales were mainly caused by a
portion of products sold during the quarter with higher-than-usual
plasma cost resulting from certain non-recurring charges.
Total operating expenses in the fourth quarter of 2013
increased by 45.4% to $14.5 million
from $10.0 million in 2012. As a
percentage of total sales, total operating expenses increased to
34.1% from 29.4% in 2012. Volume and percentage increases in total
operating expenses were mainly due to higher selling expenses
resulting from increased Placenta Polypeptide product
shipments.
Income from operations decreased by 10.4% to $12.5 million from $13.9
million in the same quarter of 2012 for the reasons states
above. Operating margin decreased to 29.3 % in the fourth quarter
of 2013 from 41.0% in the same quarter of 2012.
Net income attributable to the Company increased by 52.0%
to $8.8 million from $5.8 million in the same quarter of 2012.
Fully diluted net income per share was $0.32 in the fourth quarter of 2013 compared to
$0.21 in the same quarter of
2012.
Non-GAAP adjusted net income attributable to the Company
was $9.6 million, or $0.35 per diluted share, in the fourth quarter of
2013, representing a 32.2% increase from $7.3 million, or $0.27 per diluted share, in the fourth quarter of
2012.
Fiscal Year 2013 Financial Performances
Total sales in 2013 were $203.4
million, an increase of 10.0% from $184.8 million in 2012. Excluding foreign
exchange influence, the increase in sales was primarily
attributable to a mix of price and volume increases in certain
plasma based products.
During 2013, human albumin products and IVIG products remained
the largest two sales contributors. The average price for human
albumin products increased by approximately 10.1%, mainly due to
the increase of retail price ceiling announced by NDRC at the
beginning of 2013, which allowed the Company to increase ex-factory
prices in certain regional markets. The average price for IVIG
products remained relatively stable in 2013 as compared to
2012.
As a percentage of total sales, revenue from human albumin
products was 44.1% in 2013 as compared to 44.6% in 2012. Sales
volume for human albumin products decreased slightly by 1.2% in
2013, primarily due to the production suspension for GMP renewal in
Guizhou Taibang starting from June
2013.
As a percentage of total sales, revenue from IVIG products was
38.0% in 2013 as compared to 39.0% in 2012. Sales volume for IVIG
products increased by 6.0% in 2013, as a result of the Company's
efforts to engage new distributors to promote IVIG sales in certain
tier-one cities.
For the year ended December 31,
2013, the sales increase of other products was mainly
attributable to the newly-launched human coagulation factor VIII
(200IU) in Shandong Taibang, which accounted for 2.1% of total
sales in 2013.
Cost of sales increased by 11.3% to $65.5 million in 2013 from $58.8 million in 2012. Cost of sales as a
percentage of total sales was 32.2%, as compared to 31.8% in 2012.
Volume and percentage increases in cost of sales were mainly due to
increased sales activities and increased raw plasma collection
costs resulting from higher compensation paid to plasma donors.
Gross profit increased by 9.4% to $137.9 million in 2013 from $126.0 million in 2012. Gross margin
remained relatively stable at 67.8% and 68.2% in 2013 and 2012,
respectively.
Total operating expenses in 2013 decreased slightly by
1.1% to $50.9 million from
$51.5 million in 2012. As a
percentage of total sales, total operating expenses decreased to
25.0% from 27.9% in 2012.
Selling expenses in 2013 decreased by 26.2% to
$10.6 million from $14.4 million in 2012. As a percentage of total
sales, selling expenses were 5.2%, down from 7.8% in 2012. The
decrease was primarily due to the increased direct sales to the
hospitals since the second half of 2012.
General and administrative expenses in 2013 increased by
6.0% to $36.1 million from
$34.0 million in 2012. The increase
in general and administrative expenses was mainly due to an
increase in expenses related to payroll and employee benefits as a
result of general salary increases, and an increase in
non-recurring legal expenses. As a percentage of total sales,
general and administrative expenses were 17.7% and 18.4% in 2013
and 2012, respectively.
Research and development expenses in 2013 were
$4.2 million, representing an
increase of 39.3% from $3.0 million
in 2012. As a percentage of total sales, research and development
expenses for the years ended December 31,
2013 and 2012 were 2.1% and 1.6%, respectively. The increase
in research and development expenses was primarily due to the
engagement of external expertise to improve production yields on
certain hyper-immune products during the year ended December 31, 2013. In addition, China Biologic
started the clinical trial program on human fibrinogen in 2013.
Income from operations in 2013 was $86.9 million, representing an increase of 16.7%
from $74.5 million in 2012. Operating
margin increased to 42.7% in 2013 from 40.3% in 2012.
Income tax expense in 2013 was $15.5 million, as compared to $15.2 million in 2012. The effective income tax
rates were 16.8% and 18.7% for the years ended December 31, 2013 and 2012, respectively.
Net income attributable to the Company increased
by 20.7% to $54.6 million in 2013,
from $45.2 million in 2012. Net
margins were 26.9% and 24.5% for the years ended December 31, 2013 and 2012, respectively.
Fully diluted net income per share was $1.96, as compared to $1.62 in 2012.
Non-GAAP adjusted net income attributable to the Company
was $59.0 million or $2.12 per diluted share in 2013, compared to
$48.0 million or $1.79 per diluted share in 2012.
Non-GAAP adjusted net income and diluted earnings per share in
2013 excluded $4.4 million of
non-cash employee share-based compensation expenses.
As of December 31, 2013, the
Company had cash and cash equivalents of $144.1 million, compared to $129.6 million as of December 31, 2012.
Net cash provided by operating activities for the year
ended December 31, 2013 was
$74.3 million, as compared to
$71.1 million for the same period of
2012. The increase in inventory for the years ended December 31, 2013 and 2012 were $10.4 million and $3.8
million, respectively. The increase in inventories was
mainly due to increase of raw materials due to the continued supply
of plasma by plasma stations of Guizhou Taibang during the
production suspension for GMP renewal. The increase in accounts
receivable was $5.7 million, largely
in line with sales expansion in 2013. Accounts receivable turnover
days decreased slightly from 28 days in 2012 to 26 days in
2013.
Net cash used in investing activities for the twelve
months ended December 31, 2013 was
$25.6 million compared to
$26.8 million in the prior year
period.
Net cash used in financing activities for the year ended
December 31, 2013 was $38.5 million compared to $5.1 million in the prior year period. Net cash
used in financing activities in 2013 mainly consisted of a payment
of $29.6 million for share repurchase
and a dividend of $16.9 million paid
by the Company's subsidiaries to the non-controlling interest
shareholders, partially offset by proceeds of $5.4 million from the exercise of the stock
options and contribution of $2.9
million from a non-controlling interest shareholder.
Outlook
For the full year of 2014, the Company expects total sales to be
in the range of $230million to $240
million. This guidance assumes only organic growth and
excludes acquisitions and necessarily assumes no significant
adverse price changes during 2014. The Company estimates full year
non-GAAP adjusted net income to be in the range of $67 million to $69 million.
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 8:00 am, Eastern Time on Thursday, March 13, 2014, which is 8:00 pm, Beijing Time on March 13, 2014, to discuss fourth quarter and
fiscal year 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:
|
800-905-945
|
China:
|
400-120-1203
|
Passcode:
|
10042209
|
A telephone replay will be available one hour after the
conclusion of the conference all through 9:00 am, Eastern Time on March 20, 2014. The dial-in details
are:
US:
|
+1-877-344-7529
|
International:
|
+1-412-317-0088
|
Passcode:
|
10042209
|
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
E-mail: 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
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
For the Years
Ended
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2013
|
|
2012
|
|
2011
|
|
|
USD
|
|
USD
|
|
USD
|
Sales
|
|
203,356,856
|
|
184,813,495
|
|
153,092,289
|
Cost of
sales
|
|
65,484,153
|
|
58,835,998
|
|
46,017,661
|
Gross
profit
|
|
137,872,703
|
|
125,977,497
|
|
107,074,628
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Selling
expenses
|
|
10,643,149
|
|
14,421,258
|
|
14,595,794
|
General and
administrative expenses
|
|
36,073,871
|
|
34,034,360
|
|
31,519,824
|
Research and
development expenses
|
|
4,223,165
|
|
3,032,719
|
|
3,978,233
|
Impairment loss
of goodwill
|
|
-
|
|
-
|
|
18,160,281
|
Loss on
abandonment and write-off of long-lived assets
|
|
-
|
|
-
|
|
6,603,028
|
Income from
operations
|
|
86,932,518
|
|
74,489,160
|
|
32,217,468
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
Equity in income
of an equity method investee
|
|
2,170,473
|
|
2,665,881
|
|
1,858,171
|
Change in fair
value of derivative liabilities
|
|
-
|
|
1,769,140
|
|
11,974,834
|
Interest
income
|
|
4,433,326
|
|
2,910,297
|
|
1,356,950
|
Interest
expense
|
|
(1,134,952)
|
|
(1,269,850)
|
|
(4,670,606)
|
Other income
(expense), net
|
|
-
|
|
570,511
|
|
(453,949)
|
Total other income,
net
|
|
5,468,847
|
|
6,645,979
|
|
10,065,400
|
|
|
|
|
|
|
|
Earnings before
income tax expense
|
|
92,401,365
|
|
81,135,139
|
|
42,282,868
|
|
|
|
|
|
|
|
Income tax
expense
|
|
15,540,301
|
|
15,163,147
|
|
10,899,513
|
|
|
|
|
|
|
|
Net
income
|
|
76,861,064
|
|
65,971,992
|
|
31,383,355
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
22,259,513
|
|
20,749,803
|
|
13,201,645
|
|
|
|
|
|
|
|
|
|
54,601,551
|
|
45,222,189
|
|
|
Net income
attributable to China Biologic Products, Inc.
|
|
|
|
18,181,710
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
Basic
|
|
2.05
|
|
1.73
|
|
0.73
|
Diluted
|
|
1.96
|
|
1.62
|
|
0.37
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
Basic
|
|
26,410,819
|
|
26,153,540
|
|
25,028,796
|
Diluted
|
|
27,572,111
|
|
26,839,723
|
|
26,654,662
|
|
|
|
|
|
|
|
Net
income
|
|
76,861,064
|
|
65,971,992
|
|
31,383,355
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
9,126,218
|
|
1,735,492
|
|
6,846,721
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
85,987,282
|
|
67,707,484
|
|
38,230,076
|
|
|
|
|
|
|
|
Less: Comprehensive income attributable to noncontrolling interest
|
|
23,951,559
|
|
21,163,655
|
|
15,320,805
|
|
|
|
|
|
|
|
Comprehensive income attributable to China Biologic Products, Inc.
|
|
62,035,723
|
|
46,543,829
|
|
22,909,271
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and
cash equivalents
|
|
144,138,487
|
|
129,609,317
|
Time
deposit
|
|
6,608,612
|
|
-
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
17,270,132
|
|
11,206,244
|
Inventories
|
|
88,634,855
|
|
75,679,173
|
Prepayments and other current assets
|
|
7,641,061
|
|
5,664,919
|
Total Current Assets
|
|
264,293,147
|
|
222,159,653
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
73,149,072
|
|
51,325,177
|
Intangible assets,
net
|
|
2,585,232
|
|
3,541,582
|
Land use rights,
net
|
|
8,213,145
|
|
5,818,709
|
Deposits related to
land use rights
|
|
13,667,130
|
|
14,752,574
|
Restricted cash and
deposit
|
|
30,523,674
|
|
2,912,145
|
Equity method
investment
|
|
11,349,807
|
|
10,537,310
|
Total
Assets
|
|
403,781,207
|
|
311,047,150
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term bank loans
|
|
9,822,000
|
|
7,935,000
|
Accounts
payable
|
|
4,445,732
|
|
2,908,624
|
Due to
related parties
|
|
7,206,970
|
|
4,081,624
|
Other
payables and accrued expenses
|
|
34,852,740
|
|
25,423,349
|
Advance
from customers
|
|
2,908,853
|
|
2,857,420
|
Income
tax payable
|
|
4,202,405
|
|
4,513,075
|
Total Current Liabilities
|
|
63,438,700
|
|
47,719,092
|
|
|
|
|
|
Long-term bank
loans
|
|
30,000,000
|
|
-
|
Deferred
income
|
|
3,003,895
|
|
2,912,145
|
Other
liabilities
|
|
3,369,003
|
|
2,996,749
|
Total Liabilities
|
|
99,811,598
|
|
53,627,986
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common
stock:
|
|
|
|
|
par value
$0.0001;
|
|
|
|
|
100,000,000 shares
authorized;
|
|
|
|
|
27,341,744 and 26,629,615 shares issued at December 31, 2013 and
2012, respectively;
|
|
|
|
|
25,862,040 and 26,629,615 shares outstanding at December
31, 2013
and 2012, respectively
|
|
2,734
|
|
2,663
|
Additional paid-in capital
|
|
72,031,864
|
|
62,251,731
|
Treasury
stock: 1,479,704 and nil shares at December 31, 2013 and 2012,
respectively, at cost
|
|
(29,594,080)
|
|
-
|
|
|
|
|
|
Retained
earnings
|
|
173,744,551
|
|
119,143,000
|
Accumulated other comprehensive income
|
|
21,506,494
|
|
14,072,322
|
Total
equity attributable to China Biologic Products,
Inc.
|
|
237,691,563
|
|
195,469,716
|
|
|
|
|
|
Noncontrolling interest
|
|
66,278,046
|
|
61,949,448
|
|
|
|
|
|
Total Stockholders' Equity
|
|
303,969,609
|
|
257,419,164
|
|
|
|
|
|
Commitments and contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
403,781,207
|
|
311,047,150
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
For the Years
Ended
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
2013
|
|
2012
|
|
2011
|
|
USD
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net
income
|
76,861,064
|
|
65,971,992
|
|
31,383,355
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation
|
6,096,650
|
|
5,792,418
|
|
4,253,661
|
Amortization
|
1,365,734
|
|
3,088,320
|
|
3,394,808
|
(Gain) loss on sale of property, plant and equipment
|
(123,777)
|
|
828,296
|
|
166,934
|
Impairment loss of goodwill
|
-
|
|
-
|
|
18,160,281
|
Loss on abandonment and write-off of long-lived
assets
|
-
|
|
-
|
|
6,603,028
|
Provision for (reversal of) allowance for doubtful accounts,
net
|
31,567
|
|
(1,904)
|
|
(19,611)
|
Provision
for (reversal of) doubtful accounts -
other receivables and prepayments
|
65,094
|
|
110,123
|
|
(10,254)
|
Write-down of obsolete inventories
|
-
|
|
-
|
|
270,929
|
Deferred tax expense (benefit)
|
112,632
|
|
1,127,433
|
|
(2,595,103)
|
Share-based compensation
|
5,050,796
|
|
4,544,927
|
|
4,896,232
|
Change in fair value of derivative liabilities
|
-
|
|
(1,769,140)
|
|
(11,974,834)
|
Amortization of deferred note issuance cost
|
-
|
|
-
|
|
91,945
|
Amortization of discount on convertible notes
|
-
|
|
-
|
|
3,503,767
|
Equity in income of an equity method investee
|
(2,170,473)
|
|
(2,665,881)
|
|
(1,858,171)
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
(5,667,386)
|
|
5,689,638
|
|
(6,126,742)
|
Prepayment and other current assets
|
(624,159)
|
|
(268,498)
|
|
(711,740)
|
Inventories
|
(10,432,492)
|
|
(3,750,200)
|
|
(17,079,263)
|
Accounts payable
|
1,621,917
|
|
(2,184,674)
|
|
431,836
|
Other payables and accrued expenses
|
2,534,476
|
|
(3,210,777)
|
|
6,061,066
|
Advance from customers
|
(38,086)
|
|
(2,034,138)
|
|
1,140,386
|
Due to related parties
|
66,349
|
|
734,037
|
|
-
|
Income tax payable
|
(446,911)
|
|
(904,655)
|
|
(1,512,591)
|
Net cash
provided by operating activities
|
74,302,995
|
|
71,097,317
|
|
38,469,919
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Payment
for property, plant and equipment
|
(20,492,159)
|
|
(13,886,045)
|
|
(7,968,870)
|
Payment
for intangible assets and land use rights
|
(1,327,148)
|
|
(14,059,397)
|
|
(424,971)
|
Refund
of deposits related to land use right
|
2,100,150
|
|
-
|
|
-
|
Dividends received
|
565,425
|
|
1,109,115
|
|
1,209,880
|
Purchase
of time deposit
|
(6,608,612)
|
|
-
|
|
-
|
Proceeds
from sale of property, plant and equipment
|
194,749
|
|
83,134
|
|
56,709
|
Net cash used in
investing activities
|
(25,567,595)
|
|
(26,753,193)
|
|
(7,127,252)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds
from stock option exercised
|
5,394,070
|
|
727,317
|
|
300,000
|
Proceeds
from warrants exercised
|
-
|
|
4,500,000
|
|
-
|
Payment
for share repurchase
|
(29,594,080)
|
|
-
|
|
-
|
Proceeds
from short-term bank loans
|
9,693,000
|
|
11,076,100
|
|
18,595,200
|
Repayment of short-term bank loans
|
(8,014,000)
|
|
(14,286,800)
|
|
(10,847,200)
|
Proceeds
from long-term bank loans
|
30,000,000
|
|
-
|
|
-
|
Payment
for deposit as security for long-term bank loans
|
(30,000,000)
|
|
-
|
|
-
|
Acquisition of noncontrolling interest
|
(1,963,913)
|
|
-
|
|
(7,635,000)
|
Dividends paid by subsidiaries to noncontrolling
interest
|
(16,931,149)
|
|
(7,120,693)
|
|
(10,489,504)
|
Contribution from noncontrolling interest
|
2,891,422
|
|
-
|
|
-
|
Net cash
used in financing activities
|
(38,524,650)
|
|
(5,104,076)
|
|
(10,076,504)
|
|
|
|
|
|
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH
|
4,318,420
|
|
957,434
|
|
3,204,304
|
|
|
|
|
|
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
14,529,170
|
|
40,197,482
|
|
24,470,467
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
129,609,317
|
|
89,411,835
|
|
64,941,368
|
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
144,138,487
|
|
129,609,317
|
|
89,411,835
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
Cash
paid for income taxes
|
15,947,939
|
|
14,940,369
|
|
15,007,206
|
Cash
paid for interest expense
|
347,602
|
|
446,381
|
|
890,312
|
Noncash
investing and financing activities:
|
|
|
|
|
|
Convertible notes conversion
|
-
|
|
-
|
|
12,972,000
|
Transfer from prepayments and deposits to property, plant and
equipment
|
7,728,824
|
|
38,452
|
|
959,660
|
Land use right acquired with prepayments made in prior
periods
|
1,147,561
|
|
-
|
|
312,060
|
Acquisition of property, plant and equipment included in
payables
|
4,252,428
|
|
104,300
|
|
83,226
|
Exercise of warrants that were liability
classified
|
-
|
|
3,641,279
|
|
-
|
Restricted cash spent for property, plant and equipment
|
2,928,421
|
|
-
|
|
-
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
For the Three Months
Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2013
|
|
2012
|
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
|
9,623,074
|
|
7,279,757
|
Diluted EPS - Non
GAAP
|
|
0.35
|
|
0.27
|
Non-cash employee
stock compensation
|
|
(795,332)
|
|
(1,470,795)
|
Net Income
Attributable to the Company
|
|
8,827,742
|
|
5,808,962
|
Weighted average number of shares used in computation of Non GAAP diluted EPS
|
|
26,910,788
|
|
27,147,351
|
|
|
|
|
|
|
|
For the Years
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
|
58,974,178
|
|
47,997,976
|
Diluted EPS - Non
GAAP
|
|
2.12
|
|
1.79
|
Non-cash employee
stock compensation
|
|
(4,372,627)
|
|
(4,544,927)
|
Gain from change in
fair value of warrants
|
|
-
|
|
1,769,140
|
Net Income
Attributable to the Company
|
|
54,601,551
|
|
45,222,189
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
27,572,111
|
|
26,839,723
|
SOURCE China Biologic Products, Inc.