BEIJING, March 4, 2015 /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 2014.
Fourth Quarter 2014 Financial Highlights
- Total sales in the fourth quarter of 2014 increased by
36.2%, or 36.8% excluding the impact of foreign currency exchange
rate changes, to $58.0 million from
$42.6 million in the same quarter of
2013.
- Gross profit increased by 37.0% to $37.0 million from $27.0
million in the last quarter of 2013. Gross margin increased
to 63.8% from 63.4% in the fourth quarter of 2013.
- Income from operations increased by 57.6% to
$19.7 million from $12.5 million in the last quarter of 2013.
Operating margin increased to 34.0%, or 42.8% excluding the impact
of a one-time provision in connection with certain advance payments
made under an employee housing development project, in the fourth
quarter of 2014 from 29.3% in the same quarter of 2013.
- Net income attributable to the Company increased by
46.6% to $12.9 million from
$8.8 million in the last quarter of
2013. Fully diluted net income per share was $0.48 in the fourth quarter of 2014 as compared
to $0.32 in the fourth quarter of
2013.
- Non-GAAP adjusted net income attributable to the Company
was $14.7 million, representing a
53.1% increase from $9.6 million in
the same quarter of 2013. Non-GAAP adjusted net income per
share was $0.56, compared to
$0.35 in the last quarter of
2013.
Fiscal Year 2014 Financial Highlights
- Total sales in 2014 increased by 19.6% to $243.3 million from $203.4
million in 2013.
- Gross profit in 2014 increased by 18.3% to $163.2 million from $137.9
million in 2013. Gross margin decreased slightly to 67.1% in
2014 from 67.8% in 2013.
- Income from operations in 2014 increased by 28.0% to
$111.2 million from $86.9 million in 2013. Operating margin increased
to 45.7% in 2014 from 42.7% in 2013.
- Net income attributable to the Company in 2014 increased
by 29.9% to $70.9 million from
$54.6 million in 2013. Fully diluted
net income per share was $2.71 in
2014 as compared to $1.96 in
2013.
- Non-GAAP adjusted net income attributable to the Company
in 2014 was $75.6 million, exceeding
the Company's prior estimate, which represents a 28.1% increase
from $59.0 million in 2013.
Non-GAAP adjusted net income per share was $2.89, compared to $2.12 in 2013.
Note: The net income and non-GAAP adjusted net income
figures in this news release reflected the one-time impact of the
previously disclosed $3.6 million
bad-debt provision attributable to the Company for the employee
housing project in Shandong. See
the Company's press release dated November
5, 2014.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are very pleased to finish 2014 with strong top line and bottom
line growth, significant operational developments, as well as an
improved shareholder structure. Our healthy financial growth was
supported by strong market demand, stable product pricing,
increased production capacity after the renewal of GMP
certification at our Guizhou
facility, stringent cost control measures, the optimization of our
product portfolio mix and the successful implementation of our
sales strategy in tier-one cities."
"In 2014, we experienced a double-digit increase in our plasma
collection volume for the third consecutive year, primarily through
organic growth at our existing collection centers. We are pleased
with our many accomplishments throughout the year. Highlights
include receiving the approval to build two new plasma collection
centers in Hebei Province,
receiving production approval for human PCC products, increasing
IVIG sales in tier-one cities, and expanding our production
capacity of, and implementing an in-house sales strategy for,
placenta polypeptide products. These combined efforts contributed
to our considerable top line growth and improved operational
efficiency in the fourth quarter and will contribute to our overall
growth in the years to come."
Mr. Gao continued, "At the non-operational level, we continued
to improve our shareholding structure and create shareholder
value. In early 2014, we repurchased an aggregate of 2.5 million
shares of common stock, for a total consideration of $70 million. Additionally, we completed a
following-on offering with net proceeds of $33.2 million in the middle of year and acquired
an additional 19.84% equity stake in Guizhou Taibang in
September 2014, which resulted in
earnings accretion as well as the super majority ownership with
significantly enhanced control of Guizhou Taibang's long-term
strategy and development. Looking ahead, we will continue our
efforts in 2015 to grow China Biologic into a national leader in
the plasma biopharmaceutical industry."
Fourth Quarter 2014 Financial Performance
Total sales in the fourth quarter of 2014 were
$58.0 million, representing an
increase of 36.2%, or 36.8% excluding the foreign exchange effect,
from $42.6 million in the same
quarter of 2013. The increase was primarily attributable to the
sales increases in major plasma-based products and placenta
polypeptide.
Cost of sales increased by 34.6% to $21.0
million in the fourth quarter of 2014 from $15.6 million in the same quarter of 2013, mainly
in line with the total sales growth.
Gross profit increased by 37.0% to $37.0 million from $27.0
million in the same quarter of 2013. Gross margin increased
to 63.8% in the fourth quarter of 2014, from 63.4% in the fourth
quarter of 2013 primarily due to the combined effects of higher raw
material costs, more profitable production mix and certain one-time
non-recurring production charges in connection with new production
lines and new products.
Total operating expenses in the fourth quarter of 2014
increased by 19.3% to $17.3 million
from $14.5 million in the same
quarter of 2013, mainly due to effective cost control, partially
offset by a $5.1 million one-time
provision in connection with an employee housing development
project in Shandong. As a
percentage of total sales, total operating expenses decreased to
29.8%, or 21.0% excluding the impact of the one-time housing
project provision, from 34.0% in the same quarter of 2013.
Income from operations increased by 57.6% to $19.7 million from $12.5
million in the same period of 2013. Operating margin
increased to 34.0%, or 42.8% excluding the impact of the one-time
bad-debt provision for the employee housing project in Shandong, in the reporting quarter from 29.3%
in the same quarter of 2013.
Net income attributable to the Company increased
by 46.6% to $12.9 million in the
fourth quarter of 2014, from $8.8
million in the same quarter of 2013. Fully diluted net
income per share was $0.48 in the
fourth quarter of 2014, as compared to $0.32 in the same quarter of 2013.
Non-GAAP adjusted net income attributable to the Company
was $14.7 million, or $0.56 per diluted share in the fourth quarter of
2014, representing an increase of 53.1% from $9.6 million, or 60.0% increase, from
$0.35 per diluted share in the same
quarter of 2013.
Fiscal Year 2014 Financial Performance
Total sales in 2014 were $243.3
million, an increase of 19.6% from $203.4 million in 2013. The increase in sales was
primarily attributable to volume increases in major plasma-based
products and placenta polypeptide products.
During 2014, human albumin and IVIG products remained the
Company's largest two sales contributors. The average price for
both products remained relatively stable as a result of the
combined effects of the higher government-imposed retail price
ceiling, reduced value added tax rate and our sales effort to
increase market share in tier-one cities and new markets in
2014.
- As a percentage of total sales, revenue from human albumin
products was 39.3% in 2014 as compared to 44.1% in 2013. Sales
volume of human albumin products increased by 5.1% in 2014, mainly
due to the increased sales volume at Shandong Taibang, partially
offset by the decreased sales volume at Guizhou Taibang as a result
of the planned production suspension from June 2013 to March
2014.
- As a percentage of total sales, revenue from IVIG products was
40.4% in 2014 as compared to 38.0% in 2013. Sales volume of IVIG
products increased by 27.4% in 2014, primarily due to
increased market demand from the outburst of
Hand-Foot-and-Mouth Disease and from increased sales through
distributors in tier-one cities and new markets during 2014.
- As a percentage of total sales, revenue from placenta
polypeptide was 9.9% in 2014 as compared to 6.0% in 2013. The sales
increase was due to higher volume from the expanded placenta
polypeptide production capacity at Guizhou Taibang after its
receipt of the GMP certification for the upgraded production
facilities in January 2014.
Cost of sales increased by 22.1% to $80.0 million in 2014, from $65.5 million in 2013. Cost of sales as a
percentage of total sales was 32.9%, as compared to 32.2% in 2013.
Volume and percentage increases in cost of sales were mainly due to
the increases in sales volume, cost of plasma and overhead,
partially offset by a more profitable product mix.
Gross profit increased by 18.3% to $163.2 million in 2014 from $137.9 million in 2013. Gross margin was
67.1% in 2014 compared to 67.8% in 2013.
Total operating expenses in 2014 increased by 2.4% to
$52.1 million from $50.9 million in 2013. As a percentage of total
sales, total operating expenses decreased to 21.4% in 2014, from
25.0% in 2013. The operating expenses for 2014 included a one-time
provision of $5.1 million in
connection with an employee housing development project in
Shandong. Excluding the impact of
such provision, total operating expenses decreased by 7.7% in 2014,
mainly due to decreased general and administrative expenses.
Selling expenses in 2014 increased slightly by 0.9% to
$10.7 million from $10.6 million in 2013. As a percentage of total
sales, selling expenses were 4.4%, down from 5.2% in 2013, which
was primarily due to the decreased per-unit selling expense of
placenta polypeptide during the year.
General and administrative expenses in 2014 decreased by
11.1% to $32.1 million from
$36.1 million in 2013. As a
percentage of total sales, general and administrative expenses were
13.2% and 17.7% in 2014 and 2013, respectively. The decrease in
general and administrative expenses was mainly due to a decrease in
legal expenses and amortization expenses of intangible assets in
connection with the Company's acquisition of a majority stake in
Guizhou Taibang in 2008.
Research and development expenses in 2014 were
$4.2 million, compared to
$4.2 million in 2013. As a percentage
of total sales, research and development expenses for 2014 and 2013
were 1.7% and 2.1%, respectively. During 2014, the Company received
one-off government grants totaling $2.1
million. Excluding this impact, research and development
expenses increased by $2.1 million in
2014 from 2013. The increase was primarily due to the expenditure
paid for certain clinical trial programs and the engagement of
external experts for certain pipeline products.
Income from operations for 2014 was $111.2 million, representing an increase of 28.0%
from $86.9 million in 2013. Operating
margin increased to 45.7% in 2014 from 42.7% in 2013.
Other income for 2014 was $11.6
million, representing an increase of 110.9% from
$5.5 million in 2013. The increase
was mainly due to a non-recurring real estate gain of $6.7 million, reflected in investment income as a
result of a land use right disposal at Xi'an Huitian.
Income tax expense in 2014 was $26.6 million, as compared to $15.5 million in 2013. The effective income tax
rates were 21.7% and 16.8% for 2014 and 2013, respectively. For
2014, the dividend withholding income tax attributable to Shandong
Taibang increased by $6.2 million, as
compared to 2013, due to an increase in dividend distribution in
Shandong Taibang. The dividends from Shandong Taibang are subject
to withholding tax at a rate of 10%. Excluding the impact of
dividend withholding income tax, effective income tax rates were
14.4% and 13.9% for 2014 and 2013, respectively.
Net income attributable to the Company increased
by 29.9% to $70.9 million for 2014,
from $54.6 million in 2013. Net
margins were 29.1% and 26.8% for the years ended December 31, 2014 and 2013, respectively.
Fully diluted net income per share was $2.71, as compared to $1.96 in 2013.
Non-GAAP adjusted net income attributable to the Company
was $75.6 million, or $2.89 per diluted share 2014, representing an
increase of 28.1% from $59.0 million,
or 36.3% from $2.12 per diluted
share, in 2013.
Non-GAAP adjusted net income and diluted earnings per
share in 2014 excluded $4.6
million of non-cash employee share-based compensation
expenses.
As of December 31, 2014, the
Company had cash and cash equivalents of $80.8 million, compared to $144.1 million as of December 31, 2013.
Net cash provided by operating activities for 2014 was
$93.5 million, as compared to
$74.3 million for 2013. The increase
in inventory for 2014 and 2013 were $13.4
million and $10.4 million,
respectively. The increase in inventories was mainly due to an
increase in raw materials from the continued supply of plasma by
plasma stations of Guizhou Taibang during the production suspension
for GMP renewal. Accounts receivable increased by $2.2 million for 2014, in-line with the expansion
of our sales during the period. The increase in accounts receivable
for 2013 was $5.7 million.
Net cash used in investing activities for 2014 was
$13.4 million, as compared to
$25.6 million for 2013. For 2014 and
2013, the Company paid $17.2 million
and $20.5 million, respectively, for
the acquisition of property, plant and equipment at both Shandong
Taibang and Guizhou Taibang. In addition, the Company made a
refundable payment of $13.3 million
in 2012 to the local government in connection with its bid for a
land use right in Guizhou Province
and received the refunded deposits of $1.6
million and $2.1 million in
2014 and 2013, respectively, due to a decrease in the size of the
land provided by the local government. Further, Guizhou Taibang
made a time deposit of $6.6 million
in 2013, which matured in 2014.
Net cash used in financing activities for 2014 was
$142.8 million, as compared to
$38.5 million for 2013. Net cash used
in financing activities for 2014 mainly consisted of a payment of
$86.8 million for the acquisition of
non-controlling interest in Guizhou Taibang, a dividend payment of
$8.8 million by the Company's
subsidiaries to non-controlling interest shareholders and a payment
of $70.0 million for share repurchase
from an individual stockholder, partially offset by proceeds of
$33.2 million from the follow-on
offering of the Company's common stock. The net cash used in
financing activities for 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.
Financial Outlook
Excluding the potential adverse impact of foreign currency, the
Company expects total sales for 2015 to be in the range of
$287 million to $292 million, which
represents growth of 18% to 20% over 2014, and full year non-GAAP
adjusted net income attributable to the Company for 2015 to be in
the range of $95 million to $97
million, which represents growth of 26% to 28% over
2014.
Taking into account the potential impact of foreign currency,
the Company expects sales and non-GAAP adjusted net income to be
negatively impacted by approximately 4% to 5% by
applying a current twelve-month forward exchange rate projection of
RMB6.41 = $1.00.
This guidance assumes only organic growth and excludes
acquisitions and necessarily assumes no significant adverse price
or sales volume changes during 2015. This guidance 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 Thursday, March 5, 2014, which is 8:30 pm, Beijing Time on March 5, 2014, to discuss fourth quarter and
fiscal year 2014 results and answer questions from investors.
Listeners may access the call by dialing:
US:
|
1 888 346 8982
|
International:
|
1 412 902 4272
|
Hong Kong:
|
800 905 945
|
China:
|
400 120 6113
|
A telephone replay will be available one hour after the
conclusion of the conference call through March 12, 2014. The dial-in details are:
US:
|
1 877 344 7529
|
International:
|
1 412 317 0088
|
Passcode:
|
10060992
|
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 is a leading fully integrated plasma-based
biopharmaceutical company in China. The Company's products are used as
critical therapies during medical emergencies and for the
prevention and treatment of life-threatening diseases and
immune-deficiency related diseases. China Biologic is headquartered
in Beijing and manufactures over
20 different dosages 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. 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. 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 "intend," "believe," "expect,"
"are expected to," "will," or similar expressions, and involve
known and unknown risks and uncertainties. Among other things, the
Company's plan regarding the construction of the collection
stations, the time required for the collection stations to reach
their designed capacities, and the management's quotations and
forecast of the Company's financial performance in this news
release contain forward-looking statements. Although the Company
believes that the expectations reflected in these forward-looking
statements are reasonable, they involve assumptions, risks, and
uncertainties, and these expectations may prove to be
incorrect.
Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release. The Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including, without limitation
potential delay or failure in acquiring land use rights, obtaining
construction permits, completing the design or construction, or
passing the government inspection and certification process for the
new collection stations in Hebei
province, potential inability to achieve the designed collection
capacities at the new collection stations, potential inability to
achieve the expected operating and financial performance, potential
inability to find alternative sources of plasma, potential
inability to increase production at permitted sites, 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
Senior 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
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and
cash equivalents
|
|
80,820,224
|
|
144,138,487
|
Time
deposit
|
|
-
|
|
6,608,612
|
Restricted cash deposits
|
|
63,677,610
|
|
-
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
19,402,820
|
|
17,270,132
|
Inventories
|
|
101,304,932
|
|
88,634,855
|
Prepayments and other current assets, net of allowance for doubtful
accounts
|
|
14,781,658
|
|
7,641,061
|
Total Current Assets
|
|
279,987,244
|
|
264,293,147
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
80,230,888
|
|
73,149,072
|
Land use rights,
net
|
|
11,909,136
|
|
8,213,145
|
Deposits
related to land use rights
|
|
12,792,355
|
|
13,667,130
|
Restricted cash and
cash deposits, excluding current portion
|
|
40,230,250
|
|
30,523,674
|
Equity method
investment
|
|
18,221,777
|
|
11,349,807
|
Other non-current
assets
|
|
3,475,442
|
|
2,585,232
|
Total Assets
|
|
446,847,092
|
|
403,781,207
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term bank loans, including current portion of long-term bank
loans
|
|
57,902,600
|
|
9,822,000
|
Accounts
payable
|
|
4,829,350
|
|
4,445,732
|
Due to
related parties
|
|
-
|
|
7,206,970
|
Other
payables and accrued expenses
|
|
49,692,757
|
|
37,761,593
|
Income
tax payable
|
|
8,257,133
|
|
4,202,405
|
Total Current Liabilities
|
|
120,681,840
|
|
63,438,700
|
|
|
|
|
|
Long-term bank loans,
excluding current portion
|
|
40,000,000
|
|
30,000,000
|
Deferred
income
|
|
2,765,024
|
|
3,003,895
|
Other
liabilities
|
|
8,138,498
|
|
3,369,003
|
Total Liabilities
|
|
171,585,362
|
|
99,811,598
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common
stock:
|
|
|
|
|
par value
$0.0001;
|
|
|
|
|
100,000,000 shares
authorized;
|
|
|
|
|
27,865,871 and
27,341,744 shares issued at December 31, 2014 and 2013,
respectively;
|
|
|
|
|
24,806,167 and
25,862,040 shares outstanding at December 31, 2014 and 2013,
respectively
|
|
2,787
|
|
2,734
|
Additional paid-in capital
|
|
24,008,281
|
|
72,031,864
|
Treasury
stock: 3,059,704 and 1,479,704 shares at December 31, 2014 and
2013,
respectively, at cost
|
|
(76,570,621)
|
|
(29,594,080)
|
|
|
|
|
|
Retained
earnings
|
|
244,661,391
|
|
173,744,551
|
Accumulated other comprehensive income
|
|
19,985,189
|
|
21,506,494
|
Total
equity attributable to China Biologic Products,
Inc.
|
|
212,087,027
|
|
237,691,563
|
|
|
|
|
|
Noncontrolling interest
|
|
63,174,703
|
|
66,278,046
|
|
|
|
|
|
Total Stockholders' Equity
|
|
275,261,730
|
|
303,969,609
|
|
|
|
|
|
Commitments and contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
446,847,092
|
|
403,781,207
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
For the Years
Ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2012
|
|
|
USD
|
|
USD
|
|
USD
|
Sales
|
|
243,251,658
|
|
203,356,856
|
|
184,813,495
|
Cost of
sales
|
|
80,025,375
|
|
65,484,153
|
|
58,835,998
|
Gross
profit
|
|
163,226,283
|
|
137,872,703
|
|
125,977,497
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Selling
expenses
|
|
10,707,409
|
|
10,643,149
|
|
14,421,258
|
General and
administrative expenses
|
|
32,129,985
|
|
36,073,871
|
|
34,034,360
|
Research and
development expenses
|
|
4,161,901
|
|
4,223,165
|
|
3,032,719
|
Provision for
other receivables in respect of an employee housing development
project
|
|
5,068,075
|
|
-
|
|
-
|
Income from
operations
|
|
111,158,913
|
|
86,932,518
|
|
74,489,160
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
Equity in income
of an equity method investee
|
|
8,646,181
|
|
2,170,473
|
|
2,665,881
|
Change in fair
value of derivative liabilities
|
|
-
|
|
-
|
|
1,769,140
|
Interest
income
|
|
6,644,886
|
|
4,433,326
|
|
2,910,297
|
Interest
expense
|
|
(3,697,819)
|
|
(1,134,952)
|
|
(1,269,850)
|
Other income
(expense), net
|
|
-
|
|
-
|
|
570,511
|
Total other income,
net
|
|
11,593,248
|
|
5,468,847
|
|
6,645,979
|
|
|
|
|
|
|
|
Earnings before
income tax expense
|
|
122,752,161
|
|
92,401,365
|
|
81,135,139
|
|
|
|
|
|
|
|
Income tax
expense
|
|
26,639,527
|
|
15,540,301
|
|
15,163,147
|
|
|
|
|
|
|
|
Net
income
|
|
96,112,634
|
|
76,861,064
|
|
65,971,992
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
25,195,794
|
|
22,259,513
|
|
20,749,803
|
|
|
|
|
|
|
|
Net income
attributable to China Biologic Products, Inc.
|
|
70,916,840
|
|
54,601,551
|
|
45,222,189
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
Basic
|
|
2.85
|
|
2.05
|
|
1.73
|
Diluted
|
|
2.71
|
|
1.96
|
|
1.62
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
Basic
|
|
24,427,196
|
|
26,410,819
|
|
26,153,540
|
Diluted
|
|
25,685,064
|
|
27,572,111
|
|
26,839,723
|
|
|
|
|
|
|
|
Net
income
|
|
96,112,634
|
|
76,861,064
|
|
65,971,992
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
(1,918,715)
|
|
9,126,218
|
|
1,735,492
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
94,193,919
|
|
85,987,282
|
|
67,707,484
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
|
24,798,384
|
|
23,951,559
|
|
21,163,655
|
|
|
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products, Inc.
|
|
69,395,535
|
|
62,035,723
|
|
46,543,829
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
For the Years
Ended
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2012
|
|
|
USD
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net
income
|
|
96,112,634
|
|
76,861,064
|
|
65,971,992
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
6,989,222
|
|
6,096,650
|
|
5,792,418
|
Amortization
|
|
758,232
|
|
1,365,734
|
|
3,088,320
|
Loss (gain) on sale of property, plant and equipment
|
|
172,032
|
|
(123,777)
|
|
828,296
|
(Reversal of) provision for allowance for doubtful accounts, net –
accounts receivable
|
|
(24,462)
|
|
31,567
|
|
(1,904)
|
Allowance for doubtful accounts - other receivables and
prepayments
|
|
5,068,075
|
|
65,094
|
|
110,123
|
Write-down of obsolete inventories
|
|
324,584
|
|
-
|
|
-
|
Deferred tax expense
|
|
3,483,890
|
|
112,632
|
|
1,127,433
|
Share-based compensation
|
|
5,396,271
|
|
5,050,796
|
|
4,544,927
|
Change in fair value of derivative liabilities
|
|
-
|
|
-
|
|
(1,769,140)
|
Equity in income of an equity method investee
|
|
(8,646,181)
|
|
(2,170,473)
|
|
(2,665,881)
|
Excess tax benefits from share-based compensation
arrangements
|
|
(1,611,399)
|
|
-
|
|
-
|
Change
in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
(2,191,118)
|
|
(5,667,386)
|
|
5,689,638
|
Prepayment and other current assets
|
|
(9,236,125)
|
|
(624,159)
|
|
(268,498)
|
Inventories
|
|
(13,418,971)
|
|
(10,432,492)
|
|
(3,750,200)
|
Accounts payable
|
|
405,071
|
|
1,621,917
|
|
(2,184,674)
|
Other payables and accrued expenses
|
|
4,525,635
|
|
2,496,390
|
|
(5,244,915)
|
Due to related parties
|
|
(276,984)
|
|
66,349
|
|
734,037
|
Income tax payable
|
|
5,683,912
|
|
(446,911)
|
|
(904,655)
|
Net cash
provided by operating activities
|
|
93,514,318
|
|
74,302,995
|
|
71,097,317
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Payment
for property, plant and equipment
|
|
(17,194,201)
|
|
(20,492,159)
|
|
(13,886,045)
|
Payment
for intangible assets and land use rights
|
|
(4,677,358)
|
|
(1,327,148)
|
|
(14,059,397)
|
Refund
of deposits related to land use right
|
|
1,635,200
|
|
2,100,150
|
|
-
|
Dividends received
|
|
-
|
|
565,425
|
|
1,109,115
|
Purchase
of time deposit
|
|
-
|
|
(6,608,612)
|
|
-
|
Proceeds
upon maturity of time deposit
|
|
6,608,612
|
|
-
|
|
-
|
Proceeds
from sale of property, plant and equipment
|
|
220,135
|
|
194,749
|
|
83,134
|
Net cash used in
investing activities
|
|
(13,407,612)
|
|
(25,567,595)
|
|
(26,753,193)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Proceeds
from stock option exercised
|
|
3,860,401
|
|
5,394,070
|
|
727,317
|
Proceeds
from warrants exercised
|
|
-
|
|
-
|
|
4,500,000
|
Payment
for share repurchase
|
|
(70,000,000)
|
|
(29,594,080)
|
|
-
|
Proceeds
from short-term bank loans
|
|
44,500,340
|
|
9,693,000
|
|
11,076,100
|
Repayment of short-term bank loans
|
|
(22,833,400)
|
|
(8,014,000)
|
|
(14,286,800)
|
Proceeds
from long-term bank loans
|
|
70,000,000
|
|
30,000,000
|
|
-
|
Repayment of long-term bank loans
|
|
(33,700,000)
|
|
-
|
|
-
|
Payment
for cash deposit as security for long-term bank
loans
|
|
(72,290,922)
|
|
(30,000,000)
|
|
-
|
Payment
for cash deposit as security for short-term bank loan
|
|
(31,881,083)
|
|
-
|
|
-
|
Proceeds
from maturity of cash deposit as security for long-term bank
loan
|
|
30,370,670
|
|
-
|
|
-
|
Net
proceeds from reissuance of treasury stock
|
|
33,212,518
|
|
-
|
|
-
|
Acquisition of noncontrolling interest
|
|
(86,830,499)
|
|
(1,963,913)
|
|
-
|
Excess
tax benefits from share-based compensation arrangements
|
|
1,611,399
|
|
-
|
|
-
|
Dividend
paid by subsidiaries to noncontrolling interest
shareholders
|
|
(8,846,984)
|
|
(16,931,149)
|
|
(7,120,693)
|
Contribution from noncontrolling interest shareholders
|
|
-
|
|
2,891,422
|
|
-
|
Net cash
used in financing activities
|
|
(142,827,560)
|
|
(38,524,650)
|
|
(5,104,076)
|
|
|
|
|
|
|
|
EFFECT OF FOREIGN
EXCHANGE RATE CHANGES ON CASH
|
|
(597,409)
|
|
4,318,420
|
|
957,434
|
|
|
|
|
|
|
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
(63,318,263)
|
|
14,529,170
|
|
40,197,482
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
|
144,138,487
|
|
129,609,317
|
|
89,411,835
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
|
80,820,224
|
|
144,138,487
|
|
129,609,317
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
Cash
paid for income taxes
|
|
17,652,514
|
|
15,947,939
|
|
14,940,369
|
Cash
paid for interest expense
|
|
3,150,381
|
|
347,602
|
|
446,381
|
Noncash
investing and financing activities:
|
|
|
|
|
|
|
Transfer from prepayments and deposits to property, plant and
equipment
|
|
1,433,376
|
|
7,728,824
|
|
38,452
|
Land use right acquired with prepayments made in prior
periods
|
|
-
|
|
1,147,561
|
|
-
|
Acquisition of property, plant and equipment included in
payables
|
|
3,300,284
|
|
4,252,428
|
|
104,300
|
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,
|
|
|
|
2014
|
|
2013
|
|
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
|
14,723,811
|
|
9,623,074
|
Diluted EPS - Non
GAAP
|
|
0.56
|
|
0.35
|
Non-cash employee
stock compensation
|
|
(1,865,663)
|
|
(795,332)
|
Net Income
Attributable to the Company
|
|
12,858,148
|
|
8,827,742
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
25,949,267
|
|
26,910,788
|
|
|
|
|
|
|
|
|
|
For the Years
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
|
75,555,173
|
|
58,974,178
|
Diluted EPS - Non
GAAP
|
|
2.89
|
|
2.12
|
Non-cash employee
stock compensation
|
|
(4,638,333)
|
|
(4,372,627)
|
Net Income
Attributable to the Company
|
|
70,916,840
|
|
54,601,551
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
|
25,685,064
|
|
27,572,111
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-biologic-reports-financial-results-for-the-fourth-quarter-and-fiscal-year-2014-300045220.html
SOURCE China Biologic Products, Inc.