BEIJING, June 23, 2014 /PRNewswire/ -- China Biologic
Products, Inc. (NASDAQ: CBPO, "China Biologic" or the "Company"), a
leading plasma-based biopharmaceutical company in China, today announced that on June 18, 2014, the Ministry of Finance of
China and the State Administration
of Taxation of China jointly
published a notice to reduce and unify the value added tax ("VAT")
rate on sales of a wide range of products in China, which will take effect on July 1, 2014. Pursuant to the notice, the VAT
rate on sales of human blood and blood component based
biopharmaceutical products will be reduced from the current rate of
6% to 3%. The Company believes that the reduction in VAT rate will
be applicable to and will have a favorable impact on the sales of
all plasma based products of its majority-owned subsidiaries
Shandong Taibang Biological Products Co., Ltd. and Guizhou Taibang
Biological Products Co., Ltd. Although the Company is still
assessing the quantitative impact of this favorable VAT reduction
on its future results of operation, the Company expects that once
implemented this reduction in the VAT rate will have a positive
impact on its sales and net income in the second half of 2014 and
onwards as its sales revenue is recognized as the invoiced value of
products sold minus VAT.
About China Biologic
China Biologic is a leading 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-based
products through its indirect majority-owned subsidiaries, Shandong
Taibang Biological Products Co., Ltd. and Guizhou Taibang
Biological Products Co., Ltd. The Company also has an equity
investment in Xi'an Huitian Blood Products Co., Ltd. The Company
sells its products to hospitals and inoculation centers, as well as
distributors, in China.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain certain "forward-looking
statements" relating to the business of China Biologic and its
subsidiaries and investee company. 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 "potential,"
"will," "estimated," "anticipates," "expects," and other similar
words or 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
press 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 2014
and onwards, 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: william.zima@icrinc.com
SOURCE China Biologic Products, Inc.