BEIJING, Nov. 3, 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 third quarter of 2015.
Third Quarter 2015 Financial Highlights
- Total sales in the third quarter of 2015 increased by
14.4% to $78.8 million from
$68.9 million in the same quarter of
2014.
- Gross profit increased by 9.0% to $50.8 million from $46.6
million in the same quarter of 2014. Gross margin
decreased by 3.1 basis points to 64.5% in the third quarter of 2015
from 67.6% in the third quarter of 2014.
- Income from operations increased by 1.2% to $35.0 million from $34.6
million in the same quarter of 2014. Operating margin
decreased to 44.5% in the third quarter of 2015 from 50.2% in the
same quarter of 2014.
- Net income attributable to the Company increased by
13.9% to $22.9 million from
$20.1 million in the same quarter of
2014. Fully diluted net income per share increased to
$0.82 from $0.76 in the same quarter of 2014.
- Non-GAAP adjusted net income
attributable to the Company increased by 23.6% to $26.2 million from $21.2
million in the same quarter of 2014. Non-GAAP adjusted
net income per share increased to $0.94 from $0.81 in
the same quarter of 2014.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are pleased to report another healthy quarter that exceeded our
expectations, despite a slightly negative impact from foreign
currency translation, as we were able to sell a greater volume of
finished products made from the purchased plasma than we originally
anticipated and benefited from modestly better product pricing.
During this quarter, market demand for plasma products remained
strong and we continued to make progress on our further penetration
into tier-one markets. As we announced last quarter, we expected to
experience a lower year-over-year growth rate in the third quarter
compared to the first half of the year, due to a relatively high
volume sold in the third quarter of 2014 following the first batch
approval from the upgraded Guizhou
facility last July. Additionally, we had a relatively low volume of
products available for sale during most of the third quarter this
year following the meaningful growth in demand for our products in
the first half of the year. However, our inventories have now been
replenished as the first 143 tonnes of plasma and pastes purchased
earlier this from Xinjiang Deyuan year have been fully processed.
Since late September, we began to deliver to the market products
made from such raw materials. The majority of these products are
expected to be delivered to the market in 2016."
Mr. Gao continued, "We recently announced several important
developments. We entered into a strategic cooperation agreement
with Xinjiang Deyuan to source no less than 500 tonnes of raw
plasma over the next three years. Access to this additional source
material represents a meaningful growth catalyst for China
Biologic, as we continue to expand our own collection capabilities.
As part of this effort, we were pleased to announce that we
received approval in October to start plasma collection in our
newly built branch collection facility in Shandong Province. Also, in October, Shandong
Taibang received approval from the CFDA to begin clinical trials on
a new generation IVIG product. We expect to be able to begin
commercial production of the new generation IVIG in 2018 in our new
operating facility in Shandong."
"As we anticipate a continued positive trend in the fourth
quarter, we are confident that we will be able to reach the high
end of our full year sales guidance range and we now expect to
deliver net income results above our previous guidance. Looking
forward to 2016, we will focus our operational efforts on several
key areas, which include: continuing to achieve double-digit growth
in plasma collection volume, managing public tenders in local
markets to ensure stable or improved product pricing, further
deepening our IVIG penetration in tier-one markets, and overseeing
the plasma collection from Xinjiang Deyuan's plasma stations.
Finally, we currently expect that the new Xi'an Huitian facility,
in which we have a minority equity interest, will obtain GMP
certification and resume production in the second half of 2016,"
Mr. Gao concluded.
Third Quarter 2015 Financial Performance
Total sales, excluding foreign currency impact, increased
by 15.9% in RMB terms, or 14.4% in USD terms, to $78.8 million from $68.9
million in the third quarter of 2015, compared with the same
quarter of 2014. The increase was primarily attributable to
increases in sales volume of major plasma-based products.
During the third quarter of 2015, human albumin and IVIG
products remained the two largest sales contributors. The sales
volume of human albumin and IVIG products increased by 15.7% and
14.6%, respectively, in the reporting quarter. As a percentage of
total sales, sales from human albumin products increased to 38.7%
in the third quarter of 2015 from 38.3% in the same quarter of
2014. Sales from IVIG was 41.4% in the third quarter of 2015, as
compared to 41.7% in the same quarter of 2014.
The average price for human albumin products, excluding foreign
exchange impact, increased by approximately 1.2% in RMB terms, or
decreased by approximately 0.2% in USD terms, in the third quarter
of 2015, compared with the same quarter of 2014. The average price
for IVIG products, excluding foreign exchange impact, increased by
approximately 0.5% in RMB terms, or decreased by approximately 0.9%
in USD terms, in the third quarter of 2015 compared with the same
quarter of 2014.
Cost of sales was $28.0
million in the third quarter of 2015, compared to
$22.4 million in the same quarter of
2014. As a percentage of total sales, cost of sales was 35.5%, as
compared to 32.4% in the same quarter of 2014. The increase in cost
of sales was mainly due to increased sales volume and increased
plasma collection costs, and from the higher cost of products made
from the purchased raw plasma.
Gross profit increased by 9.0% to $50.8 million in the third quarter of 2015 from
$46.6 million in the same quarter of
2014. Gross margin was 64.5% and 67.6% in the third quarter
of 2015 and 2014, respectively.
Total operating expenses in the third quarter of 2015
increased by 32.8% to $15.8 million
from $11.9 million in the same
quarter of 2014 due to increases in general and administrative
expenses, mainly resulting from higher share-based compensation
expenses. As a percentage of total sales, total operating expenses
increased to 20.0% in the third quarter of 2015 from 17.3% in the
same quarter of 2014.
Selling expenses in the third quarter of 2015 increased
by 12.5% to $2.7 million from
$2.4 million in the same quarter of
2014. As a percentage of total sales, selling expenses remained
relatively stable at 3.4%, compared with 3.5% in the same quarter
of 2014.
General and administrative expenses in the third quarter
of 2015 were $11.5 million compared
to $7.7 million in the same quarter
of 2014. The increase in general and administrative expenses was
mainly due to a $2.2 million increase
in share-based compensation expenses. As a percentage of total
sales, general and administrative expenses increased to 14.6% in
the third quarter of 2015 from 11.2% in the third quarter of
2014.
Research and development expenses in the third quarter of
2015 were $1.6 million, compared to
$1.8 million in the same quarter of
2014. As a percentage of total sales, research and development
expenses decreased to 2.0% in the third quarter of 2015 from 2.6%
in the same quarter of 2014.
Income from operations for the third quarter of 2015
increased by 1.2% to $35.0 million
from $34.6 million in the same period
of 2014. Operating margin decreased to 44.5% in the third
quarter of 2015 from 50.2% in the same quarter of 2014.
Income tax expense in the third quarter of 2015 was
$6.0 million, compared to
$7.0 million in the same quarter of
2014, representing a decrease of 14.3%. The effective income tax
rates were 16.8% and 19.9% in the third quarter of 2015 and 2014,
respectively.
Net income attributable to the Company increased
by 13.9% to $22.9 million in the
third quarter of 2015 from $20.1
million in the same quarter of 2014. Net margin
remained stable at 29.0%, compared to 29.1% in the same quarter of
2014. Fully diluted net income per share increased to
$0.82 in the third quarter of 2015
from $0.76 in the third quarter of
2014.
Non-GAAP adjusted net income attributable to the Company
increased by 23.6% to $26.2 million
in the third quarter of 2015 from $21.2
million in the same quarter of 2014. Non-GAAP net
margin increased to 33.2% from 30.8% in the same quarter of
2014. Non-GAAP adjusted net income per diluted share
increased to $0.94 in the third
quarter of 2015 from $0.81 in the
third quarter of 2014.
Non-GAAP adjusted net income and diluted earnings per share in
the third quarter of 2015 exclude $3.3
million of non-cash employee share-based compensation
expenses.
First Nine Months 2015 Financial Performance
Total sales, excluding foreign currency impact, increased
by 23.6% in RMB terms, or 23.2% in USD terms, to $228.2 million from $185.3
million, in the first nine months of 2015 compared with 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 37.5% and 43.6%,
respectively, for the first nine months of 2015.
Cost of sales was $79.5
million in the first nine months of 2015, compared to
$59.0 million in the same period of
2014. Cost of sales as a percentage of total sales was 34.8%, as
compared to 31.8% in the same period of 2014.
Gross profit increased by 17.7% to $148.7 million in the first nine months of 2015
from $126.3 million in the same
period of 2014. Gross margin was 65.2% in the first nine
months of 2015, compared to 68.2% in the same period of
2014.
Total operating expenses in the first nine months of 2015
increased by 11.2% to $38.7 million
from $34.8 million in the same period
of 2014. As a percentage of total sales, total operating expenses
decreased to 17.0% for the first nine months of 2015, from 18.8% in
the same period of 2014.
Income from operations in the first nine months of 2015
increased by 20.2% to $110.0 million
from $91.5 million in the same period
of 2014.
Income tax expense in the first nine months of 2015 was
$17.8 million, as compared to
$16.8 million in the same period of
2014. The effective income tax rate was 15.9% and 17.6% in the
first nine months of 2015 and 2014, respectively.
Net income attributable to the Company increased
by 25.3% to $72.8 million for the
first nine months of 2015, from $58.1
million in the same period of 2014. Net margin was
31.9% and 31.3% for the first nine months of 2015 and 2014,
respectively.
Non-GAAP adjusted net income attributable to the Company
was $79.7 million, or $2.94 per diluted share, for the first nine
months of 2015, compared with $60.8
million, or $2.34 per diluted
share, in the same period of 2014.
Non-GAAP adjusted net income and diluted earnings per share for
the first nine months of 2015 exclude $7.0
million of non-cash employee share-based compensation
expenses.
As of September 30, 2015, the
Company had $142.7 million in cash
and cash equivalents, primarily consisting of cash on hand and
demand deposits, and $38.8 million in
time deposits.
Net cash provided by operating activities for the first
nine months of 2015 was $72.3
million, as compared to $64.1
million for the same period in 2014. The increase in net
cash provided by operating activities was primarily due to
increases in net income, other payables and accrued expenses, and
decreases in prepayment and other current assets, partially offset
by increases in accounts receivable and inventories during the nine
months ended September 30, 2015.
Accounts receivable increased by $16.2
million during the first nine months of 2015, as compared to
$7.5 million during the same period
in 2014, primarily due to the extended credit terms granted to
certain top-tier hospitals and distributors for human rabies
immunoglobulin products.
Inventories increased by $26.1
million in the first nine months of 2015, as compared to
$8.7 million during the same period
in 2014, primarily due to the increase of plasma products and
work-in-process derived from the source plasma and plasma pastes
purchased from Xinjiang Deyuan.
Other payables and accrued expenses increased by $4.2 million in the first nine months of 2015, as
compared to $0.4 million during the
same period in 2014, primarily due to the individual income tax
payable of $5.5 million withheld for
employees and directors in connection with the vesting of certain
restricted stock in the third quarter of 2015.
The prepayment and other assets decreased by $0.7 million in the first nine months of 2015, as
compared to an increase of $8.6
million during the same period in 2014. During the first
nine months of 2014, Shandong Taibang made a payment totaling
$5.0 million on behalf of a real
estate developer to certain employees under an employee housing
development project.
Net cash used in investing activities for the first nine
months of 2015 was $55.8 million, as
compared to $8.3 million for the same
period in 2014. During the first nine months of 2015, the Company
paid $30.5 million for the
acquisition of property, plant and equipment, intangible assets and
land use right for Shandong Taibang and Guizhou Taibang, provided a
long-term loan of $28.5 million to
Xinjiang Deyuan, and received $2.5
million government grants related to property, plant and
equipment. During the first nine months of 2014, the Company paid
$16.8 million for the acquisition of
property, plant and equipment, intangible assets and land use right
for Shandong Taibang and Guizhou Taibang, 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
nine months of 2015 was $49.7
million, as compared to net cash used in financing
activities of $124.5 million for the
same period in 2014. The net cash provided by financing activities
for the first nine months 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 $63.2
million from the maturity of deposits used as security for
bank loans, and proceeds of $7.2
million from stock options exercised, 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 nine
months of 2014 mainly consisted of a payment of $86.8 million for acquisition of non-controlling
interest in Guizhou Taibang and a payment of $70.0 million for share repurchase, partially
offset by proceeds of $33.2 million
from a follow-on offering of the Company's common stock in
July 2014.
Financial Outlook
For the full year of 2015, the Company reiterates its full year
sales forecast, which was raised in May
2015, and raises its non-GAAP adjusted net income forecast,
despite the negative impact from foreign currency translation. The
Company expects total sales to be on the high end of the range of
$290 million to $295 million, which
represents a growth of 19% to 21% over the past year. Due to
better-than-expected operational efficiency and a more profitable
product mix during the first nine months of 2015, the Company now
expects its full year non-GAAP adjusted net income to be in the
range of $98 million to $100 million
as compared to its previous guidance of $95
million to $97 million, representing a growth of 29% to 33%
over the past year.
This revised guidance is based on an average exchange rate
during the reporting quarter of RMB6.244 = US$1.00,
which is approximately 1% higher than the exchange rate used in the
Company's previous guidance. It does not factor in the potential
for further negative impact from foreign currency translation.
This revised guidance assumes only organic growth, excluding
acquisitions, and necessarily assumes no significant product price
changes during the remainder of 2015. This forecast reflects the
Company's current and preliminary views, which are subject to
change.
Conference Call
The Company will hold a conference call at 7:30 a.m. ET on Wednesday,
November 4, 2015 which is 8:30
p.m. Beijing Time on November 4,
2015 to discuss its third quarter 2015 results and answer
questions from investors. Listeners may access the call by
dialing:
US (Toll
Free):
|
1 888 346 8982
|
International:
|
1 412 902 4272
|
Hong Kong (Toll
Free):
|
800 905 945
|
China (Toll
Free):
|
400 120 1203
|
A telephone replay will be available one hour after the
conclusion of the conference call through November 11, 2015. The dial-in details are:
US (Toll
Free):
|
1 877 344 7529
|
International:
|
1 412 317 0088
|
Passcode:
|
10075191
|
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 to complete construction of new collection facilities,
potential inability to pass government inspection and certification
process for existing and new facilities, potential inability to
achieve the designed collection capacities at the new collection
facilities, 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 to
follow.
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Sales
|
|
78,750,577
|
|
68,923,830
|
|
228,173,360
|
|
185,264,391
|
Cost of
sales
|
|
27,944,878
|
|
22,356,577
|
|
79,461,079
|
|
58,991,724
|
Gross
profit
|
|
50,805,699
|
|
46,567,253
|
|
148,712,281
|
|
126,272,667
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
2,674,434
|
|
2,420,971
|
|
7,229,782
|
|
8,032,632
|
General and administrative expenses
|
|
11,510,981
|
|
7,733,867
|
|
27,485,566
|
|
22,063,291
|
Research and development expenses
|
|
1,595,140
|
|
1,788,286
|
|
3,984,447
|
|
4,700,647
|
Income from
operations
|
|
35,025,144
|
|
34,624,129
|
|
110,012,486
|
|
91,476,097
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
Equity in (loss) income of an equity method
investee
|
|
(376,260)
|
|
(84,516)
|
|
(1,137,560)
|
|
1,776,063
|
Interest expense
|
|
(101,290)
|
|
(1,048,177)
|
|
(1,533,971)
|
|
(2,532,341)
|
Interest income
|
|
1,383,142
|
|
1,722,967
|
|
4,227,124
|
|
5,043,169
|
Total other income,
net
|
|
905,592
|
|
590,274
|
|
1,555,593
|
|
4,286,891
|
|
|
|
|
|
|
|
|
|
Earnings before
income tax expense
|
|
35,930,736
|
|
35,214,403
|
|
111,568,079
|
|
95,762,988
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
6,052,353
|
|
7,007,650
|
|
17,792,164
|
|
16,832,025
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
29,878,383
|
|
28,206,753
|
|
93,775,915
|
|
78,930,963
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interest
|
|
7,001,833
|
|
8,146,687
|
|
21,012,934
|
|
20,872,271
|
|
|
|
|
|
|
|
|
|
Net income
attributable to China Biologic Products, Inc.
|
|
22,876,550
|
|
20,060,066
|
|
72,762,981
|
|
58,058,692
|
|
|
|
|
|
|
|
|
|
Net income per share
of common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
0.86
|
|
0.80
|
|
2.81
|
|
2.35
|
Diluted
|
|
0.82
|
|
0.76
|
|
2.68
|
|
2.24
|
Weighted average
shares used in computation:
|
|
|
|
|
|
|
|
|
Basic
|
|
25,992,776
|
|
24,548,042
|
|
25,280,538
|
|
24,325,752
|
Diluted
|
|
27,056,215
|
|
25,787,106
|
|
26,488,730
|
|
25,568,515
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
29,878,383
|
|
28,206,753
|
|
93,775,915
|
|
78,930,963
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
(15,704,961)
|
|
(125,450)
|
|
(15,095,718)
|
|
(2,714,890)
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
14,173,422
|
|
28,081,303
|
|
78,680,197
|
|
76,216,073
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to noncontrolling interest
|
|
4,015,428
|
|
8,081,309
|
|
18,302,111
|
|
20,327,295
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to China Biologic Products, Inc.
|
|
10,157,994
|
|
19,999,994
|
|
60,378,086
|
|
55,888,778
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
142,660,409
|
|
80,820,224
|
Restricted cash
deposits
|
|
-
|
|
63,677,610
|
Time
deposits
|
|
38,822,808
|
|
-
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
34,418,937
|
|
19,402,820
|
Inventories
|
|
122,998,681
|
|
101,304,932
|
Prepayments and other
current assets, net of allowance for doubtful accounts
|
|
25,063,917
|
|
14,781,658
|
Total Current Assets
|
|
363,964,752
|
|
279,987,244
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
96,991,796
|
|
80,230,888
|
Land use rights,
net
|
|
15,162,367
|
|
11,909,136
|
Deposits related to
land use rights
|
|
12,322,732
|
|
12,792,355
|
Restricted cash and
cash deposits, excluding current portion
|
|
-
|
|
40,230,250
|
Equity method
investment
|
|
9,073,773
|
|
18,221,777
|
Loan
receivable
|
|
28,296,000
|
|
-
|
Other non-current
assets
|
|
2,948,377
|
|
3,475,442
|
Total Assets
|
|
528,759,797
|
|
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
|
|
5,299,128
|
|
4,829,350
|
Other payables and
accrued expenses
|
|
53,478,778
|
|
49,692,757
|
Income tax
payable
|
|
7,523,273
|
|
8,257,133
|
Total Current Liabilities
|
|
66,301,179
|
|
120,681,840
|
|
|
|
|
|
Long-term bank loans,
excluding current portion
|
|
-
|
|
40,000,000
|
Deferred
income
|
|
4,750,977
|
|
2,765,024
|
Other
liabilities
|
|
8,031,697
|
|
8,138,498
|
Total Liabilities
|
|
79,083,853
|
|
171,585,362
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common
stock:
|
|
|
|
|
par value
$0.0001;
|
|
|
|
|
100,000,000 shares
authorized;
|
|
|
|
|
28,784,953 and
27,865,871 shares issued at September 30, 2015
and December 31, 2014, respectively;
|
|
|
|
|
26,530,249 and
24,806,167 shares outstanding at September 30, 2015
and December 31, 2014, respectively
|
|
2,878
|
|
2,787
|
Additional paid-in
capital
|
|
99,518,736
|
|
24,008,281
|
Treasury stock:
2,254,704 and 3,059,704 shares at September 30, 2015
and December 31, 2014, respectively, at cost
|
|
(56,425,094)
|
|
(76,570,621)
|
|
|
|
|
|
Retained
earnings
|
|
317,424,372
|
|
244,661,391
|
Accumulated other
comprehensive income
|
|
7,600,294
|
|
19,985,189
|
Total equity
attributable to China Biologic Products, Inc.
|
|
368,121,186
|
|
212,087,027
|
|
|
|
|
|
Noncontrolling
interest
|
|
81,554,758
|
|
63,174,703
|
|
|
|
|
|
Total Stockholders' Equity
|
|
449,675,944
|
|
275,261,730
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
|
528,759,797
|
|
446,847,092
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
For the nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net
income
|
|
93,775,915
|
|
78,930,963
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
6,103,812
|
|
5,136,783
|
Amortization
|
|
637,301
|
|
558,991
|
Loss on sale of
property, plant and equipment and land use rights
|
|
363,857
|
|
152,638
|
Allowance (Reversal)
for doubtful accounts - accounts receivable
|
|
35,162
|
|
(24,462)
|
Allowance for
doubtful accounts - other receivables and prepayments
|
|
793
|
|
-
|
Write-down of
obsolete inventories
|
|
16,650
|
|
9,092
|
Deferred tax
expense
|
|
(55,232)
|
|
934,986
|
Share-based
compensation
|
|
7,640,894
|
|
3,331,299
|
Equity in loss
(income) of an equity method investee
|
|
1,137,560
|
|
(1,776,063)
|
Excess tax benefits
from share-based compensation arrangements
|
|
(288,681)
|
|
(760,869)
|
Change in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(16,229,405)
|
|
(7,510,078)
|
Prepayment and other
current assets
|
|
742,586
|
|
(8,602,273)
|
Inventories
|
|
(26,058,886)
|
|
(8,705,670)
|
Accounts
payable
|
|
659,077
|
|
396,647
|
Other payables and
accrued expenses
|
|
4,240,643
|
|
358,075
|
Deferred
income
|
|
(284,053)
|
|
(149,296)
|
Income tax
payable
|
|
(170,407)
|
|
1,827,163
|
Net cash provided
by operating activities
|
|
72,267,586
|
|
64,107,926
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Payment for property,
plant and equipment
|
|
(26,310,114)
|
|
(13,925,010)
|
Payment for
intangible assets and land use right
|
|
(4,199,308)
|
|
(2,834,220)
|
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
|
|
741,980
|
|
216,071
|
Long-term loan lent
to a third party
|
|
(28,450,202)
|
|
-
|
Receipt of government
grants related to property and equipment
|
|
2,452,864
|
|
-
|
Net cash used in
investing activities
|
|
(55,764,780)
|
|
(8,299,347)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds from stock
option exercised
|
|
7,220,483
|
|
2,258,285
|
Proceeds from
short-term bank loans
|
|
-
|
|
44,500,340
|
Repayment of bank
loans
|
|
(97,910,360)
|
|
(38,605,600)
|
Proceeds from
long-term bank loans
|
|
-
|
|
70,000,000
|
Payment for deposit
as security for long-term bank loans
|
|
-
|
|
(72,290,922)
|
Payment for deposit
as security for short-term bank loans
|
|
-
|
|
(31,881,083)
|
Maturity of deposit
as security for long-term bank loans
|
|
-
|
|
30,370,670
|
Maturity of deposit
as security for short-term bank loans
|
|
63,152,258
|
|
-
|
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
|
|
-
|
|
(6,035,226)
|
Net proceeds from
reissuance of treasury stock
|
|
80,583,959
|
|
33,212,518
|
Acquisition of
noncontrolling interest
|
|
-
|
|
(86,830,499)
|
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
|
|
49,644,207
|
|
(124,540,648)
|
|
|
|
|
|
EFFECTS OF FOREIGN
EXCHANGE RATE CHANGE ON CASH
|
|
(4,306,828)
|
|
(827,626)
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
61,840,185
|
|
(69,559,695)
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
80,820,224
|
|
144,138,487
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
142,660,409
|
|
74,578,792
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
Cash paid for income
taxes
|
|
18,073,863
|
|
14,098,003
|
Cash paid for
interest expense
|
|
1,426,883
|
|
2,108,667
|
Noncash investing and
financing activities:
|
|
|
|
|
Acquisition of
property, plant and equipment included in payables
|
|
1,990,043
|
|
2,988,146
|
CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
For the three months
ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
26,184,686
|
|
21,236,986
|
Diluted EPS - Non
GAAP
|
0.94
|
|
0.81
|
Non-cash employee
stock compensation
|
(3,308,136)
|
|
(1,176,920)
|
Net Income
Attributable to the Company
|
22,876,550
|
|
20,060,066
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
27,056,215
|
|
25,787,106
|
|
|
|
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non GAAP
|
79,717,719
|
|
60,831,362
|
Diluted EPS - Non
GAAP
|
2.94
|
|
2.34
|
Non-cash employee
stock compensation
|
(6,954,738)
|
|
(2,772,670)
|
Net Income
Attributable to the Company
|
72,762,981
|
|
58,058,692
|
Weighted average
number of shares used in computation of Non GAAP diluted
EPS
|
26,488,730
|
|
25,568,515
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-biologic-reports-financial-results-for-the-third-quarter-of-2015-300171074.html
SOURCE China Biologic Products, Inc.