BEIJING, Aug. 5, 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
unaudited financial results for the second quarter of 2015.
Second Quarter 2015 Financial Highlights
- Total sales in the second quarter of 2015 increased by
31.6% to $79.1 million from
$60.1 million in the same quarter of
2014.
- Gross profit increased by 26.2% to $52.0 million from $41.2
million in the same quarter of 2014. Gross margin
decreased by 270 basis points to 65.8% in the second quarter of
2015 from 68.5% in the second quarter of 2014.
- Income from operations increased by 39.4% to
$40.3 million from $28.9 million in the same quarter of 2014.
Operating margin increased to 50.9% in the second quarter of
2015 from 48.1% in the same quarter of 2014.
- Net income attributable to the Company increased by
35.5% to $26.7 million from
$19.7 million in the same quarter of
2014. Fully diluted net income per share increased to
$0.99 from $0.79 in the same quarter of 2014.
- Non-GAAP adjusted net income attributable to the Company
increased by 39.5% to $28.6 million
from $20.5 million in the same
quarter of 2014. Non-GAAP adjusted net income per
share increased to $1.06
from $0.82 in the same quarter of
2014.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are pleased to continue delivering robust financial results
with high growth on both top and bottom lines for the second
quarter of 2015. Specifically, market demand remained strong for
our major product offerings, including albumin and IVIG, and our
market share increased as a result of our production volume growth
outpacing the domestic average and the effectiveness of our sales
model. Our direct sales strategy allowed us to maintain price
stability. Our penetration strategy for tier-one cities enabled our
IVIG sales by volume to continue to grow quickly and reinforced our
leadership in China's IVIG
market."
Mr. Gao continued, "During the second quarter, we were able to
effectively control costs through greater operating efficiency. Our
operating margin reached a new
high of 50.9%, despite the pressure from increases in plasma
collection costs. On the production front, as of the end of the
second quarter, nearly half of our outsourced plasma had been put
into production at our Guizhou
facility. As we previously predicted, a small portion of the
finished products made from the purchased plasma will be gradually
delivered to the market later this year while the majority will be
sold in 2016 and beyond. We believe the purchased plasma will
enable us to significantly improve the production utilization rate
of our Guizhou facility and better
meet the growing demand for plasma products in China. We are pleased to maintain our full
year financial forecast; however, we expect our year-over-year
third quarter sales growth rate to
be lower than the first two quarters of 2015, primarily due to a
relatively high volume sold in the third quarter of 2014 after
receiving the first batch approval in July
2014 at the upgraded Guizhou facility. We expect our year-over-year
fourth quarter sales growth rate to increase over the third quarter
as we benefit from the sales of products made from our purchased
plasma."
"Finally, in June, we successfully completed a follow-on
offering of 3,450,000 shares of common stock, including 805,000
primary shares. With the completion of this offering, we added new
strong institutional investors to our shareholder base, further
improved our shareholder structure and increased the liquidity of
our stock. We have used the proceeds of the offering to repay a
USD-denominated loan to mitigate our foreign currency risk and
released the RMB deposit used to secure this loan, which will
enable us to pursue potential growth opportunities currently under
evaluation," Mr. Gao concluded.
Second Quarter 2015 Financial Performance
Total sales in the second quarter of 2015 increased by
31.6% to $79.1 million from
$60.1 million in the same quarter of
2014. The increase was primarily attributable to increases in sales
volume of major plasma-based products.
During the second quarter of 2015, human albumin and IVIG
products remained the two largest sales contributors. The average
price for both products increased by approximately 3.0% during the
reporting quarter, as a result of the reduced value-added tax and
the Company's sales strategy to increase market share in tier-one
cities and new markets.
- As a percentage of total sales, revenue from human albumin
products increased to 35.7% in the second quarter of 2015 from
34.1% in the same quarter of 2014. The sales volume of human
albumin products increased by 33.8% in the reporting quarter,
mainly due to sales pushed through to the second quarter after the
delayed batch approval from the previous quarter, as well as lower
volume sold in the second quarter of 2014 due to the production
suspension to upgrade the Guizhou
facility. Guizhou Taibang resumed production in March 2014 and shipped its first batch of
products for sales in July 2014 after
the completion of government batch approval.
- As a percentage of total sales, revenue from IVIG was 43.1% in
the second quarter of 2015, as compared to 44.0% in the same
quarter of 2014. The sales volume of IVIG products increased by
25.1% in the reporting quarter, mainly due to increased sales
through distributors in tier-one cities and new markets supported
by the increased output following the production resumption at
Guizhou Taibang.
Cost of sales was $27.1
million in the second quarter of 2015, compared to
$18.9 million in the same quarter of
2014. As a percentage of total sales, cost of sales was 34.2%, as
compared to 31.5% in the same quarter of 2014. The increase in cost
of sales was mainly due to increased sales activities and increased
plasma collection costs.
Gross profit increased by 26.2% to $52.0 million in the second quarter of 2015 from
$41.2 million in the same quarter of
2014. Gross margin was 65.8% and 68.5% in the second quarter
of 2015 and 2014, respectively.
Total operating expenses in the second quarter of 2015
decreased by 4.9% to $11.7 million
from $12.3 million in the same
quarter of 2014 due to decreases in selling expenses and research
and development expenses, which were partially offset by an
increase in general and administrative expenses. As a percentage of
total sales, total operating expenses decreased to 14.9% in the
second quarter of 2015 from 20.4% in the same quarter of 2014.
Selling expenses in the second quarter of 2015 decreased
by 21.2% to $2.6 million from
$3.3 million in the same quarter of
2014. As a percentage of total sales, selling expenses were 3.3%,
down from 5.5% in the same quarter of 2014. The decrease was
primarily due to a decreased selling expense for placenta
polypeptide during the quarter.
General and administrative expenses in the second quarter
of 2015 were $8.1 million compared to
$7.1 million in the same quarter of
2014. The increase in general and administrative expenses was
mainly due to an increase in share-based compensation expenses. As
a percentage of total sales, general and administrative expenses
decreased to 10.3% in the second quarter of 2015 from 11.8% in the
second quarter of 2014.
Research and development expenses in the second quarter
of 2015 decreased by 44.4% to $1.0
million from $1.8 million in
the same quarter of 2014. As a percentage of total sales, research
and development expenses decreased to 1.3% in the second quarter of
2015 from 3.1% in the same quarter of 2014. During the second
quarter, the Company received a government grant of $0.9 million and recognized it as a reduction of
research and development expenses. Excluding this impact, research
and development expenses remained stable compared to the same
quarter of 2014.
Income from operations for the second quarter of 2015
increased by 39.4% to $40.3 million
from $28.9 million in the same period
of 2014. Operating margin increased to 50.9% in the second
quarter of 2015 from 48.1% in the same quarter of 2014.
Income tax expense in the second quarter of 2015 was
$6.1 million, compared to
$4.5 million in the same quarter of
2014, representing an increase of 35.6%. The effective income tax
rates were 15.2% and 14.4% in the second quarter of 2015 and 2014,
respectively.
Net income attributable to the Company increased
by 35.5% to $26.7 million in the
second quarter of 2015 from $19.7
million in the same quarter of 2014. Net margin
increased to 33.8% from 32.8% in the same quarter of 2014. Fully
diluted net income per share increased to $0.99 in the second quarter of 2015 from
$0.79 in the second quarter of
2014.
Non-GAAP adjusted net income attributable to the Company
increased by 39.5% to $28.6 million
in the second quarter of 2015 from $20.5
million in the same quarter of 2014. Non-GAAP net
margin increased to 36.2% from 34.1% in the same quarter of
2014. Non-GAAP adjusted net income per diluted share
increased to $1.06 in the second
quarter of 2015 from $0.82 in the
second quarter of 2014.
Non-GAAP adjusted net income and diluted earnings per share for
the three months ended June 30, 2015
exclude $1.9 million of non-cash
employee share-based compensation expenses.
First Half 2015 Financial Performance
Total sales in the first half of 2015 increased by 28.5%
to $149.4 million from $116.3 million in the same period of 2014. The
increase in sales was primarily driven by increases in sales volume
of major plasma-based products and placenta polypeptide.
As a percentage of total sales, sales from human albumin
products and IVIG products were 36.9% and 44.8%, respectively, for
the first half of 2015.
Cost of sales was $51.5
million in the first half of 2015, compared to $36.6 million in the same period of 2014. Cost of
sales as a percentage of total sales was 34.5%, as compared to
31.5% in the same period of 2014.
Gross profit increased by 22.8% to $97.9 million in the first half of 2015 from
$79.7 million in the same period of
2014. Gross margin was 65.5% in the first half of 2015,
compared to 68.5% in the same period of 2014.
Total operating expenses in the first half of 2015
increased slightly to $23.0 million
from $22.9 million in the same period
of 2014. As a percentage of total sales, total operating expenses
decreased to 15.3% for the first half of 2015, from 19.6% in the
same period of 2014.
Income from operations in the first half of 2015
increased by 31.8% to $75.0 million
from $56.9 million in the same period
of 2014.
Income tax expense in the first half of 2015 was
$11.7 million, as compared to
$9.8 million in the same period of
2014. The effective income tax rate was 15.5% and 16.2% for the
first half of 2015 and 2014, respectively.
Net income attributable to the Company increased
by 31.3% to $49.9 million for the
first half of 2015, from $38.0
million in the same period of 2014. Net margin was
33.4% and 32.7% for the first half of 2015 and 2014,
respectively.
Non-GAAP adjusted net income attributable to the Company
was $53.5 million, or $1.99 per diluted share, for the first half of
2015, compared with $39.6 million, or
$1.53 per diluted share, in the same
period of 2014.
Non-GAAP adjusted net income and diluted earnings per share for
the first half of 2015 exclude $3.6
million of non-cash employee share-based compensation
expenses.
As of June 30, 2015, the Company
had $106.6 million in cash and
cash equivalents, primarily consisting of cash on hand and
demand deposits, and $72.2 million in
time deposits.
Net cash provided by operating activities for the first
half of 2015 was $34.6 million, as
compared to $39.0 million for the
same period in 2014. The decrease in net cash provided by operating
activities was primarily due to the increases in accounts
receivable and inventories during the six months ended June 30, 2015 as compared to the same period in
2014, partially offset by increases in net income and accounts
payable during the same comparable periods. Accounts receivable
increased by $18.8 million during the
first half of 2015, as compared to $7.5
million during the same period in 2014, primarily due to
increased sales to certain top-tier hospitals with relatively long
credit terms and the extended credit terms granted to the human
rabies immunoglobulin distributors. In 2015, in an effort to help
penetrate new markets, the Company granted credit terms of up to
six months to certain creditworthy, top-tier hospitals.
Additionally, the Company adjusted its sales strategy for human
rabies immunoglobulin by granting credit terms of up to six months
to certain qualified distributors to assist in their bidding
efforts with provincial centers for disease control and
prevention.
Inventories increased by $25.3
million in the first half of 2015, as compared to
$6.9 million during the same period
in 2014, primarily due to the receipt of a majority of the source
plasma and plasma pastes purchased from a third party. Accounts
payable increased by $10.1 million in
the first half of 2015, as compared to the decrease of $0.4 million during the same period in 2014,
primarily due to balance of payment owed to the third party for the
source plasma and pastes.
Net cash used in investing activities for the first half
of 2015 was $20.1 million, as
compared to $3.0 million for the same
period in 2014. During the first half of 2015 and 2014, the Company
paid $20.7 million and $11.5 million, respectively, for the acquisition
of property, plant and equipment, intangible assets, and land use
rights for Shandong Taibang and Guizhou Taibang. During the first
half of 2014, the Company received a refund of deposit of
$1.6 million from the local
government due to a decrease in the size of a land parcel that was
granted to the Company in Guizhou
and received $6.6 million upon the
maturity of a time deposit.
Net cash provided by financing activities for the first
half of 2015 was $12.0 million, as
compared to net cash used in financing activities of $76.2 million for the same period in 2014. The
net cash provided by financing activities for the first half of
2015 mainly consisted of proceeds of $80.6
million from the follow-on offering of the Company's common
stock in June 2015 and $32.0 million from the maturity of a deposit used
as security for a short-term bank loan, partially offset by the
repayment of bank loans totaling $97.9 million, as well as a dividend
payment of $3.7 million held in
escrow by a trial court in connection with disputes with a minority
shareholder of Guizhou Taibang. Net cash used in financing
activities for the first half of 2014 mainly consisted of a payment
of $70.0 million for share
repurchase, a deposit of $72.3
million as cash collateral for certain long-term bank loans,
repayment of $4.9 million on a
short-term bank loan, and a dividend of $1.4
million paid by the Company's subsidiaries to the
non-controlling interest shareholders, partially offset by proceeds
of $70.0 million from certain
long-term bank loans and proceeds of $1.6
million from the exercise of stock options.
Financial Outlook
For the full year of 2015, the Company reiterates its full year
sales and non-GAAP adjusted net income forecast. Total sales are
expected to be in the range of $290 million
to $295 million, which represents growth of 19% to 21% over
2014. Full year non-GAAP adjusted net income is expected to be in
the range of $95 million to $97
million, excluding the potential adverse impact of foreign
currency exchange, which represents growth of 26% to 28% over
2014.
This guidance assumes only organic growth, excluding
acquisitions, and necessarily assumes no significant product price
changes during 2015. 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 Thursday, August 6, 2015, which is 7:30 pm Beijing Time on August 6, 2015, to discuss second quarter 2015
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 1203
|
A telephone replay will be available one hour after the
conclusion of the conference all through August 13, 2015. The dial-in details are:
US:
|
1 877 344 7529
|
International:
|
1 412 317 0088
|
Passcode:
|
10070116
|
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 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,
distributors 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. 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 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 plans regarding the production and sale of plasma
products made from the outsourced raw materials 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,
quality inspection of outsourced source plasma, 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, 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
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
Financial statements follow.
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the six months
ended
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
USD
|
|
USD
|
|
|
USD
|
|
USD
|
Sales
|
|
|
79,068,452
|
|
60,073,984
|
|
|
149,422,783
|
|
116,340,561
|
Cost of
sales
|
|
|
27,054,626
|
|
18,919,981
|
|
|
51,516,201
|
|
36,635,147
|
Gross
profit
|
|
|
52,013,826
|
|
41,154,003
|
|
|
97,906,582
|
|
79,705,414
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
2,604,660
|
|
3,329,175
|
|
|
4,555,348
|
|
5,611,661
|
General and administrative expenses
|
|
|
8,121,390
|
|
7,112,798
|
|
|
15,974,585
|
|
14,329,424
|
Research and development expenses
|
|
|
1,046,985
|
|
1,838,795
|
|
|
2,389,307
|
|
2,912,361
|
Income from
operations
|
|
|
40,240,791
|
|
28,873,235
|
|
|
74,987,342
|
|
56,851,968
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
Equity in (loss) income of an equity method
investee
|
|
|
(666,233)
|
|
1,523,216
|
|
|
(761,300)
|
|
1,860,579
|
Interest expense
|
|
|
(675,860)
|
|
(862,957)
|
|
|
(1,432,681)
|
|
(1,484,164)
|
Interest income
|
|
|
1,467,135
|
|
1,724,324
|
|
|
2,843,982
|
|
3,320,202
|
Total other income,
net
|
|
|
125,042
|
|
2,384,583
|
|
|
650,001
|
|
3,696,617
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income tax expense
|
|
|
40,365,833
|
|
31,257,818
|
|
|
75,637,343
|
|
60,548,585
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
6,123,661
|
|
4,486,157
|
|
|
11,739,811
|
|
9,824,375
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
34,242,172
|
|
26,771,661
|
|
|
63,897,532
|
|
50,724,210
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
|
7,518,213
|
|
7,046,706
|
|
|
14,011,101
|
|
12,725,584
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to China Biologic Products, Inc.
|
|
|
26,723,959
|
|
19,724,955
|
|
|
49,886,431
|
|
37,998,626
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1.05
|
|
0.83
|
|
|
1.96
|
|
1.55
|
Diluted
|
|
|
0.99
|
|
0.79
|
|
|
1.86
|
|
1.47
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
25,019,039
|
|
23,483,090
|
|
|
24,918,517
|
|
24,212,766
|
Diluted
|
|
|
26,320,773
|
|
24,719,011
|
|
|
26,265,857
|
|
25,435,122
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
34,242,172
|
|
26,771,661
|
|
|
63,897,532
|
|
50,724,210
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
|
1,463,605
|
|
527,203
|
|
|
609,243
|
|
(2,589,440)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
35,705,777
|
|
27,298,864
|
|
|
64,506,775
|
|
48,134,770
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
|
|
7,831,571
|
|
7,140,585
|
|
|
14,286,683
|
|
12,245,986
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products, Inc.
|
|
|
27,874,206
|
|
20,158,279
|
|
|
50,220,092
|
|
35,888,784
|
|
|
|
|
|
|
|
|
|
|
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
106,614,708
|
|
80,820,224
|
Restricted cash
deposits
|
|
-
|
|
63,677,610
|
Time
deposits
|
|
72,226,607
|
|
-
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
38,328,831
|
|
19,402,820
|
Inventories
|
|
127,039,477
|
|
101,304,932
|
Prepayments and other
current assets, net of allowance for doubtful accounts
|
|
27,789,090
|
|
14,781,658
|
Total Current Assets
|
|
371,998,713
|
|
279,987,244
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
91,208,433
|
|
80,230,888
|
Land use rights,
net
|
|
15,837,832
|
|
11,909,136
|
Deposits related to
land use rights
|
|
12,822,069
|
|
12,792,355
|
Restricted cash and
cash deposits, excluding current portion
|
|
-
|
|
40,230,250
|
Equity method
investment
|
|
9,825,728
|
|
18,221,777
|
Other non-current
assets
|
|
3,236,260
|
|
3,475,442
|
Total Assets
|
|
504,929,035
|
|
446,847,092
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Short-term bank
loans, including current portion of long-term bank loans
|
|
-
|
|
57,902,600
|
Accounts
payable
|
|
14,997,591
|
|
4,829,350
|
Other payables and
accrued expenses
|
|
46,997,452
|
|
49,692,757
|
Income tax
payable
|
|
6,775,105
|
|
8,257,133
|
Total Current Liabilities
|
|
68,770,148
|
|
120,681,840
|
|
|
|
|
|
Long-term bank loans,
excluding current portion
|
|
-
|
|
40,000,000
|
Deferred
income
|
|
2,626,321
|
|
2,765,024
|
Other
liabilities
|
|
8,086,775
|
|
8,138,498
|
Total Liabilities
|
|
79,483,244
|
|
171,585,362
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common
stock:
|
|
|
|
|
par value
$0.0001;
|
|
|
|
|
100,000,000 shares
authorized;
|
|
|
|
|
27,962,705 and
27,865,871 shares issued at June 30, 2015 and December 31,
2014, respectively;
|
|
|
|
|
25,708,001 and
24,806,167 shares outstanding at June 30, 2015 and December
31, 2014, respectively
|
|
2,797
|
|
2,787
|
Additional paid-in
capital
|
|
89,462,086
|
|
24,008,281
|
Treasury stock:
2,254,704 and 3,059,704 shares at June 30, 2015 and December
31, 2014, respectively, at cost
|
|
(56,425,094)
|
|
(76,570,621)
|
|
|
|
|
|
Retained
earnings
|
|
294,547,822
|
|
244,661,391
|
Accumulated other
comprehensive income
|
|
20,318,850
|
|
19,985,189
|
Total equity
attributable to China Biologic Products, Inc.
|
|
347,906,461
|
|
212,087,027
|
|
|
|
|
|
Noncontrolling
interest
|
|
77,539,330
|
|
63,174,703
|
|
|
|
|
|
Total Stockholders' Equity
|
|
425,445,791
|
|
275,261,730
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
|
504,929,035
|
|
446,847,092
|
|
|
|
|
|
|
|
|
|
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
For the six months
ended
|
|
June 30,
|
|
June 30,
|
|
2015
|
|
2014
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net
income
|
|
63,897,532
|
|
50,724,210
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
4,123,599
|
|
3,289,535
|
Amortization
|
|
415,231
|
|
371,168
|
Loss on sale of
property, plant and equipment and land use rights
|
|
313,529
|
|
71,494
|
Allowance for
doubtful accounts - accounts receivable
|
|
35,372
|
|
1,477
|
Allowance for
doubtful accounts - other receivables and prepayments
|
|
796
|
|
-
|
Write-down of
obsolete inventories
|
|
16,750
|
|
9,092
|
Deferred tax
expense
|
|
167,921
|
|
1,154,991
|
Share-based
compensation
|
|
4,033,482
|
|
1,961,929
|
Equity in loss
(income) of an equity method investee
|
|
761,300
|
|
(1,860,579)
|
Excess tax benefits
from share-based compensation arrangements
|
|
(288,681)
|
|
(760,869)
|
Change in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(18,835,493)
|
|
(7,473,499)
|
Prepayment and other
current assets
|
|
(1,165,997)
|
|
(2,393,459)
|
Inventories
|
|
(25,272,719)
|
|
(6,852,680)
|
Accounts
payable
|
|
10,123,561
|
|
(438,427)
|
Other payables and
accrued expenses
|
|
(2,391,597)
|
|
171,318
|
Deferred
income
|
|
(149,708)
|
|
(74,721)
|
Income tax
payable
|
|
(1,223,601)
|
|
1,126,281
|
Net cash provided
by operating activities
|
|
34,561,277
|
|
39,027,261
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Payment for property,
plant and equipment
|
|
(16,486,212)
|
|
(10,243,198)
|
Payment for
intangible assets and land use right
|
|
(4,205,678)
|
|
(1,227,914)
|
Refund of deposits
related to land use right
|
|
-
|
|
1,635,200
|
Proceeds upon
maturity of time deposit
|
|
-
|
|
6,608,612
|
Proceeds from sale of
property, plant and equipment and land use rights
|
|
559,029
|
|
190,660
|
Net cash used in
investing activities
|
|
(20,132,861)
|
|
(3,036,640)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds from stock
option exercised
|
|
771,164
|
|
1,643,559
|
Repayment of bank
loans
|
|
(97,910,360)
|
|
(4,905,600)
|
Proceeds from
long-term bank loans
|
|
-
|
|
70,000,000
|
Maturity of deposit
as security for short-term bank loan
|
|
31,985,122
|
|
-
|
Payment for deposit
as security for long-term bank loans
|
|
-
|
|
(72,290,922)
|
Payment for share
repurchase
|
|
-
|
|
(70,000,000)
|
Excess tax benefits
from share-based compensation arrangements
|
|
288,681
|
|
760,869
|
Dividend paid by
subsidiaries to noncontrolling interest shareholders
|
|
-
|
|
(1,409,542)
|
Net proceeds from
reissuance of treasury stock
|
|
80,583,959
|
|
-
|
Dividend to the trial
court to be held in escrow as to dispute with Jie'an
|
|
(3,690,814)
|
|
-
|
Net cash provided
by (used in) financing activities
|
|
12,027,752
|
|
(76,201,636)
|
|
|
|
|
|
EFFECTS OF FOREIGN
EXCHANGE RATE CHANGE ON CASH
|
|
(661,684)
|
|
(703,847)
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
25,794,484
|
|
(40,914,862)
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
80,820,224
|
|
144,138,487
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
106,614,708
|
|
103,223,625
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Cash paid for income
taxes
|
|
12,829,660
|
|
7,564,408
|
Cash paid for
interest expense
|
|
1,428,614
|
|
1,067,251
|
Noncash investing and
financing activities:
|
|
|
|
|
Acquisition of
property, plant and equipment included in payables
|
|
231,397
|
|
2,805,220
|
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
For the three months
ended
|
|
June 30,
|
|
June 30,
|
|
2015
|
|
2014
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
28,582,627
|
|
20,522,830
|
Diluted EPS - Non
GAAP
|
1.06
|
|
0.82
|
Non-cash employee
stock compensation
|
(1,858,668)
|
|
(797,875)
|
Net Income
Attributable to the Company
|
26,723,959
|
|
19,724,955
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
26,320,773
|
|
24,719,011
|
|
|
|
|
|
For the six months
ended
|
|
June 30,
|
|
June 30,
|
|
2015
|
|
2014
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
53,533,033
|
|
39,594,376
|
Diluted EPS - Non
GAAP
|
1.99
|
|
1.53
|
Non-cash employee
stock compensation
|
(3,646,602)
|
|
(1,595,750)
|
Net Income
Attributable to the Company
|
49,886,431
|
|
37,998,626
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
26,265,857
|
|
25,435,122
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-biologic-reports-financial-results-for-the-second-quarter-of-2015-300124004.html
SOURCE China Biologic Products, Inc.