BEIJING, Aug. 4, 2016 /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 2016.
Second Quarter 2016 Financial Highlights
- Total sales in the second quarter of 2016 increased by
23.4% in RMB terms, or 15.5% in USD terms, to $91.4 million from $79.1
million in the same quarter of 2015.
- Gross profit increased by 15.2% to $59.9 million from $52.0
million in the same quarter of 2015. Gross margin
decreased slightly to 65.6% from 65.8% in the same quarter of
2015.
- Income from operations increased by 6.7% to $43.0 million from $40.3
million in the same quarter of 2015. Operating margin
decreased to 47.1% from 50.9% in the same quarter of 2015.
- Net income attributable to the Company increased by
15.4% to $30.8 million from
$26.7 million in the same quarter of
2015. Fully diluted net income per share increased to
$1.10 from $0.99 in the same quarter of 2015.
- Non-GAAP adjusted net income attributable to the Company
increased by 31.3% in RMB terms, or 23.1% in USD terms, to
$35.2 million from $28.6 million in the same quarter of 2015.
Non-GAAP adjusted net income per share increased to
$1.26 from $1.06 in the same quarter of 2015.
Mr. David (Xiaoying) Gao,
Chairman and Chief Executive Officer of China Biologic, commented,
"We are pleased to achieve healthy financial results for the second
quarter of 2016, even after accounting for the negative foreign
currency impact of approximately eight percentage points. Our gross
margin improvement compared to last quarter was mainly attributable
to slightly higher product pricing, better product mix, and a
comparatively small volume of finished goods made from the 140
tonnes of purchased plasma last year that was sold in the reporting
quarter, as anticipated. We continue to make progress increasing
our market share in the geographic areas and hospitals we serve
directly, while also further penetrating into tier-1 cities. We
significantly ramped up the production capability of certain
hyper-immune products such as tetanus immunoglobulin at the expense
of IVIG production. This resulted in tetanus immunoglobulin
capturing the number one market position in China in the second quarter. In addition, we
achieved stronger than expected growth for our non-plasma placenta
polypeptide products as a result of our efforts to improve market
penetration into more hospitals."
Mr. Gao continued, "Our Xinglong plasma collection station in
Hebei Province received its
operating permit and commenced operations in June 2016. Plasma collection growth from our
existing stations as well as from our outsourcing partner, Xinjiang
Deyuan's stations, remains on track as planned. The new Huitian
facility also began delivery of products to the market in
June 2016, ahead of schedule, while
the construction of our new facility in Shandong Province remains on track with its
construction plan. On the R&D front, we recently received
approval from the CFDA to commence clinical trials of a new Human
Coagulation Factor VIII at our Guizhou facility. We estimate the time line
for commercial launch of this product to be within three years.
Once commercially launched, we believe that the Factor VIII
produced by our Guizhou facility
can improve the production efficiency and economics of plasma
collected by Guizhou Taibang and better serve hemophilia
patients."
"Finally, we successfully completed a follow-on offering of 2.78
million shares of common stock in June
2016, which added new institutional investors to our
shareholder base, improved our ownership structure and increased
our stock liquidity. Looking ahead to the second half of 2016, we
will continue to focus our operational efforts on several key areas
including exploring new regions to expand plasma donor coverage
while also driving plasma collection growth volume at our existing
stations, managing public tenders in various local markets to
ensure stable or improved product pricing, further investing in our
R&D platform to accelerate the release of new products to the
market and improve production yields and plasma utilization
efficiency, and further enhancing our
equity ownership in Guizhou Taibang," Mr. Gao concluded.
Second Quarter 2016 Financial Performance
Total sales in the second quarter of 2016 increased by
23.4% in RMB terms, or 15.5% in USD terms, to $91.4 million from $79.1
million in the same quarter of 2015. The increase was
primarily attributable to the increase in sales volume of human
albumin products, human tetanus immunoglobulin products and
placenta polypeptide products, as well as an increase in the sales
price of human tetanus immunoglobulin products.
During the second quarter of 2016, human albumin and IVIG
products remained the Company's two largest sales contributors. As
a percentage of total sales, sales from human albumin products
increased to 41.2% in the second quarter of 2016, compared to 35.7%
in the same quarter of 2015. Revenue from IVIG products decreased
to 33.6% of total sales in the second quarter of 2016 from 43.1% in
the same quarter of 2015 as the Company strategically ramped up its
production capability of certain hyper-immune products with higher
profit margin at the expense of IVIG production. The sales volume
of human albumin products and IVIG products increased by 39.3% and
decreased by 8.0%, respectively, in the second quarter of 2016.
The average price for human albumin products, excluding foreign
exchange impact, would have increased by approximately 2.4% in RMB
terms, or decreased by approximately 4.0% in USD terms, in the
second quarter of 2016 compared to the same quarter of 2015. The
average price for IVIG products, excluding foreign exchange impact,
would have increased by approximately 4.4% in RMB terms, or
decreased by approximately 2.1% in USD terms, in the second quarter
of 2016 compared to the same quarter of 2015.
Revenue from hyper-immune products increased by 22.4% in the
second quarter of 2016 compared to the same quarter of 2015,
reaching 9.0% of total sales. Revenue from placenta polypeptide
products increased by 41.6% in the second quarter of 2016 compared
to the same quarter of 2015, reaching 11.9% of total sales. And
revenue from other plasma products including human coagulation
factor VIII and human prothrombin complex concentrate also
increased by 62.5% in the second quarter of 2016 compared to the
same quarter of 2015, reaching 4.3% of total sales.
Cost of sales was $31.5
million in the second quarter of 2016, compared to
$27.1 million in the same quarter of
2015. As a percentage of total sales, cost of sales remained stable
at 34.4%, as compared to 34.2% in the same quarter of 2015.
Gross profit increased by 15.2% to $59.9 million in the second quarter of 2016 from
$52.0 million in the same quarter of
2015. Gross margin was 65.6% and 65.8% in the second quarter
of 2016 and 2015, respectively.
Total operating expenses in the second quarter of 2016
increased by 44.4% to $16.9 million
from $11.7 million in the same
quarter of 2015, mainly due to the increases of general and
administrative expenses. As a percentage of total sales, total
operating expenses increased to 18.5% in the second quarter of 2016
from 14.9% in the same quarter of 2015.
Selling expenses in the second quarter of 2016 increased
by 15.4% to $3.0 million from
$2.6 million in the same quarter of
2015. As a percentage of total sales, selling expenses remained
stable at 3.3% compared to the same quarter of 2015.
General and administrative expenses in the second quarter
of 2016 were $12.6 million compared
to $8.1 million in the same quarter
of 2015. As a percentage of total sales, general and administrative
expenses increased to 13.8% in the second quarter of 2016 from
10.3% in the same quarter of 2015. The increase in general and
administrative expenses was mainly due to a $2.7 million increase in share-based compensation
expenses, as well as a $1.2 million
prepayment provision in the reporting quarter. Excluding the impact
of share-based compensation expenses, general and administrative
expenses would have been 8.6% and 7.6% as a percentage of total
sales in the second quarter of 2016 and 2015, respectively.
Research and development expenses in the second quarter
of 2016 increased to $1.3 million
from $1.0 million in the same quarter
of 2015, primarily because the Company received a government grant
of $0.9 million in May 2015 and recognized it as a reduction of
research and development expenses in the second quarter of 2015.
Excluding the impact of the government grant, research and
development expenses as a percentage of total sales would have
decreased to 1.4% in the second quarter of 2016 from 2.4% in the
same quarter of 2015.
Income from operations for the second quarter of 2016
increased by 6.7% to $43.0 million
from $40.3 million in the same period
of 2015. Operating margin decreased to 47.1% in the second
quarter of 2016 from 50.9% in the same quarter of 2015.
Income tax expense in the second quarter of 2016 was
$7.0 million, compared to
$6.1 million in the same quarter of
2015, representing an increase of 14.8%. The effective income tax
rate was 15.7% and 15.2% in the second quarter of 2016 and 2015,
respectively.
Net income attributable to the Company increased
by 15.4% to $30.8 million in the
second quarter of 2016 from $26.7
million in the same quarter of 2015. Net margin
decreased slightly to 33.6% compared to 33.8% in the same quarter
of 2015. Fully diluted net income per share increased to
$1.10 in the second quarter of 2016
from $0.99 in the same quarter of
2015.
Non-GAAP adjusted net income attributable to the Company
increased by 23.1% to $35.2 million
in the second quarter of 2016 from $28.6
million in the same quarter of 2015. Non-GAAP net
margin increased to 38.5% from 36.2% in the same quarter of
2015. Non-GAAP adjusted net income per diluted share
increased to $1.26 in the second
quarter of 2016 from $1.06 in the
same quarter of 2015.
Non-GAAP adjusted net income and diluted earnings per share for
the three months ended June 30, 2016
exclude $4.4 million of non-cash
employee share-based compensation expenses.
First Half 2016 Financial Performance
Total sales in the first half of 2016 increased by 26.2%
in RMB terms, or 18.5% in USD terms, to $177.0 million from $149.4
million in the same period of 2015. The increase in sales
was primarily driven by the increase in sales volume of human
albumin products, human tetanus immunoglobulin products and
placenta polypeptide products, as well as an increase in the sales
price of human tetanus immunoglobulin products. As a percentage of
total sales, sales from human albumin products and IVIG products
accounted for 39.7% and 36.6%, respectively, for the first half of
2016.
Cost of sales was $65.5
million in the first half of 2016, compared to $51.5 million in the same period of 2015. Cost of
sales as a percentage of total sales was 37.0%, as compared to
34.5% in the same period of 2015. The increase in cost of sales as
a percentage of total sales was mainly due to the higher cost of
plasma purchased from Xinjiang Deyuan, which was partially offset
by the increase in the average sales price of certain plasma
products and the adjustment of product mix to achieve higher profit
margin.
Gross profit increased by 13.9% to $111.5 million in the first half of 2016 from
$97.9 million in the same period of
2015. Gross margin was 63.0% in the first half of 2016,
compared to 65.5% in the same period of 2015.
Total operating expenses in the first half of 2016
increased 33.0% to $30.6 million from
$23.0 million in the same period of
2015. As a percentage of total sales, total operating expenses
increased to 17.3% for the first half of 2016 from 15.3% in the
same period of 2015, mainly due to the increase of the general and
administrative expenses.
Income from operations in the first half of 2016
increased by 7.9% to $80.9 million
from $75.0 million in the same period
of 2015.
Income tax expense in the first half of 2016 was
$13.6 million, as compared to
$11.7 million in the same period of
2015. The effective income tax rate was 16.2% and 15.5% for the
first half of 2016 and 2015, respectively.
Net income attributable to the Company increased
by 14.2% to $57.0 million for the
first half of 2016 from $49.9 million
in the same period of 2015. Net margin was 32.2% and 33.4%
for the first half of 2016 and 2015, respectively.
Non-GAAP adjusted net income attributable to the Company
was $65.6 million, or $2.36 per diluted share, for the first half of
2016, compared to $53.5 million, or
$1.99 per diluted share, in the same
period of 2015.
Non-GAAP adjusted net income and diluted earnings per share for
the first half of 2016 exclude $8.6
million of non-cash employee share-based compensation
expenses.
As of June 30, 2016, the Company
had $204.0 million in cash and
cash equivalents, primarily consisting of cash on hand and
demand deposits.
Net cash provided by operating activities for the first
half of 2016 was $57.0 million, as
compared to $34.6 million for the
same period in 2015. The increase in net cash provided by operating
activities was largely consistent with the improvements in the
results of operations, the speed-up of accounts receivable
collection, the shortened inventory cycle and the increase of net
non-cash operating expenses for the first half of 2016 as compared
to the same period in 2015. Accounts receivable increased by
$13.9 million during the first half
of 2016, as compared to $18.8 million
during the same period in 2015. The accounts receivable turnover
days for plasma products decreased to 42 days during the first half
of 2016 from 49 days during the same period in 2015, mainly because
the Company no longer offered the long credit term policy to human
rabies immunoglobulin product distributors in the first half of
2016 as it did in the same period of 2015 to penetrate the
market.
Inventories increased by $12.5
million in the first half of 2016, as compared to
$25.3 million during the same period
in 2015, primarily because of the decrease of plasma purchased from
the collection stations of Xinjiang Deyuan as of June 30, 2016 compared to the amount as of
June 30, 2015.
Net cash used in investing activities for the first half
of 2016 was $26.3 million, as
compared to $20.1 million for the
same period in 2015. During the first half of 2016, the Company
paid $26.6 million for the
acquisition of property, plant and equipment, intangible assets and
land use rights for Shandong Taibang and Guizhou Taibang and
granted a loan of $6.3 million to
Xinjiang Deyuan pursuant to a cooperation agreement in August 2015, which was partially offset by the
receipt of a refund of $6.5 million
from the local government of Guiyang with respect to deposits of land use
rights. During the first half of 2015, the Company paid
$20.7 million for the acquisition of
property, plant and equipment, intangible assets, and land use
rights for Shandong Taibang and Guizhou Taibang.
Net cash provided by financing activities for the first
half of 2016 was $32.2 million, as
compared to $12.0 million for the
same period in 2015. The net cash provided by financing activities
in the first half of 2016 mainly consisted of the proceeds of
$2.4 million from stock option
exercised and the maturity of a $37.8
million time deposit as a security for a 24-month loan which
was fully repaid in June 2015,
partially offset by a dividend of $7.9
million paid to the minority shareholder by Shandong
Taibang. The net cash provided by financing activities for the
first half of 2015 mainly consisted of net proceeds of $80.6 million from a follow-on offering of the
Company's stock in June 2015 and
proceeds of $32.0 million from the
maturity of a deposit used as security for short-term bank loan,
partially offset by repayments of bank loans totaling $97.9 million and a dividend of $3.7 million held in escrow by a trial court in
connection with disputes with a minority shareholder of Guizhou
Taibang.
Financial Outlook
For the full year of 2016, the Company reiterates its full year
forecast of total sales growth of 21% to 23% in RMB terms and
non-GAAP adjusted net income growth of 24% to 26% in RMB terms over
2015 financial results. This guidance does not factor in any
potential foreign currency translation impact. Having previously
adopted an exchange rate of approximately RMB6.21 = $1.00
based on weighted average quarterly exchange rates in 2015 in
translating 2015 financial results, the Company expects that the
total sales and non-GAAP adjusted net income in USD terms in 2016
will be adversely affected by the foreign currency translation
impact.
This guidance assumes only organic growth, excluding potential
acquisitions, and necessarily assumes no significant adverse
product price changes during 2016. 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 Friday, August 5, 2016, which is 7:30 pm Beijing Time on August 5, 2016, to discuss second quarter
2016 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 12, 2016. The dial-in details are:
US:
|
1 877 344
7529
|
International:
|
1 412 317
0088
|
Passcode:
|
10090306
|
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 dosage forms of plasma 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 its presentation of non-GAAP
financial measures provides useful supplementary information to and
facilitates additional analysis by investors. 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 purchased 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 purchased 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 follow.
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|
|
|
|
|
|
|
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,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Sales
|
|
91,421,155
|
|
79,068,452
|
|
177,008,866
|
|
149,422,783
|
Cost of
sales
|
|
31,482,146
|
|
27,054,626
|
|
65,525,581
|
|
51,516,201
|
Gross
profit
|
|
59,939,009
|
|
52,013,826
|
|
111,483,285
|
|
97,906,582
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
3,026,457
|
|
2,604,660
|
|
4,254,127
|
|
4,555,348
|
General and
administrative
expenses
|
|
12,573,683
|
|
8,121,390
|
|
23,901,696
|
|
15,974,585
|
Research and development
expenses
|
|
1,303,815
|
|
1,046,985
|
|
2,398,538
|
|
2,389,307
|
Income from
operations
|
|
43,035,054
|
|
40,240,791
|
|
80,928,924
|
|
74,987,342
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
Equity in income (loss)
of an equity method
investee
|
|
259,850
|
|
(666,233)
|
|
43,535
|
|
(761,300)
|
Interest expense
|
|
(88,528)
|
|
(675,860)
|
|
(177,078)
|
|
(1,432,681)
|
Interest income
|
|
1,292,069
|
|
1,467,135
|
|
3,043,209
|
|
2,843,982
|
Total other income,
net
|
|
1,463,391
|
|
125,042
|
|
2,909,666
|
|
650,001
|
|
|
|
|
|
|
|
|
|
Earnings before income tax
expense
|
|
44,498,445
|
|
40,365,833
|
|
83,838,590
|
|
75,637,343
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
7,006,764
|
|
6,123,661
|
|
13,613,867
|
|
11,739,811
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
37,491,681
|
|
34,242,172
|
|
70,224,723
|
|
63,897,532
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling
interest
|
|
6,738,646
|
|
7,518,213
|
|
13,274,433
|
|
14,011,101
|
|
|
|
|
|
|
|
|
|
Net income attributable to China Biologic Products,
Inc.
|
|
30,753,035
|
|
26,723,959
|
|
56,950,290
|
|
49,886,431
|
|
|
|
|
|
|
|
|
|
Net income per share of common
stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
1.12
|
|
1.05
|
|
2.08
|
|
1.96
|
Diluted
|
|
1.10
|
|
0.99
|
|
2.05
|
|
1.86
|
Weighted average shares used in
computation:
|
|
|
|
|
|
|
|
|
Basic
|
|
26,698,996
|
|
25,019,039
|
|
26,642,461
|
|
24,918,517
|
Diluted
|
|
27,152,560
|
|
26,320,773
|
|
27,145,470
|
|
26,265,857
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
37,491,681
|
|
34,242,172
|
|
70,224,723
|
|
63,897,532
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil
income taxes
|
|
(13,267,360)
|
|
1,463,605
|
|
(10,697,608)
|
|
609,243
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
24,224,321
|
|
35,705,777
|
|
59,527,115
|
|
64,506,775
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive income attributable to
noncontrolling
interest
|
|
4,468,767
|
|
7,831,571
|
|
11,447,450
|
|
14,286,683
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to China Biologic
Products, Inc.
|
|
19,755,554
|
|
27,874,206
|
|
48,079,665
|
|
50,220,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA BIOLOGIC PRODUCTS,
INC. AND SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
June
30,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
|
USD
|
|
USD
|
ASSETS
|
|
|
|
|
Current Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
204,033,989
|
|
144,937,893
|
Time
deposits
|
|
-
|
|
38,032,593
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
38,258,676
|
|
25,144,969
|
Inventories
|
|
136,038,217
|
|
126,395,312
|
Prepayments and other
current assets, net of allowance for doubtful
accounts
|
|
21,587,018
|
|
24,545,597
|
Deposits related to land
use rights, current portion
|
|
4,901,341
|
|
10,056,200
|
Total Current Assets
|
|
404,819,241
|
|
369,112,564
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
126,417,723
|
|
105,364,251
|
Land use rights,
net
|
|
24,227,992
|
|
23,576,300
|
Equity method
investment
|
|
8,579,872
|
|
8,718,133
|
Loan
receivable
|
|
45,240,000
|
|
39,834,173
|
Other non-current
assets
|
|
2,445,957
|
|
4,861,075
|
Total Assets
|
|
611,730,785
|
|
551,466,496
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
6,525,540
|
|
9,681,835
|
Other
payables and accrued expenses
|
|
49,276,574
|
|
57,462,563
|
Income tax
payable
|
|
8,689,920
|
|
4,510,986
|
Total Current Liabilities
|
|
64,492,034
|
|
71,655,384
|
|
|
|
|
|
Deferred
income
|
|
4,180,364
|
|
4,525,867
|
Other
liabilities
|
|
7,538,073
|
|
8,323,446
|
Total Liabilities
|
|
76,210,471
|
|
84,504,697
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common
stock:
|
|
|
|
|
par value $0.0001;
|
|
|
|
|
1,000,000,000 shares and 100,000,000 shares authorized at June 30,
2016 and December 31, 2015,
respectively;
|
|
|
|
|
29,061,130 and 28,835,053 shares issued at June 30, 2016 and
December 31, 2015,
respectively;
|
|
|
|
|
26,806,426 and 26,580,349 shares outstanding at June 30, 2016 and
December 31, 2015,
respectively
|
|
2,906
|
|
2,884
|
Additional paid-in
capital
|
|
117,265,271
|
|
105,079,845
|
Treasury stock: 2,254,704
shares at June 30, 2016 and December31, 2015, at
cost
|
|
(56,425,094)
|
|
(56,425,094)
|
|
|
|
|
|
Retained
earnings
|
|
390,654,384
|
|
333,704,094
|
Accumulated other
comprehensive income
|
|
(8,889,230)
|
|
(18,605)
|
Total equity attributable
to China Biologic Products, Inc.
|
|
442,608,237
|
|
382,343,124
|
|
|
|
|
|
Noncontrolling
interest
|
|
92,912,077
|
|
84,618,675
|
|
|
|
|
|
Total Stockholders' Equity
|
|
535,520,314
|
|
466,961,799
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
611,730,785
|
|
551,466,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA BIOLOGIC PRODUCTS,
INC. AND SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
For the Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
USD
|
|
USD
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net income
|
70,224,723
|
|
63,897,532
|
Adjustments to reconcile
net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
4,590,028
|
|
4,123,599
|
Amortization
|
438,916
|
|
415,231
|
Loss on sale of property,
plant and equipment and land use
rights
|
115,075
|
|
313,529
|
Allowance for doubtful
accounts - accounts receivable,
net
|
6,604
|
|
35,372
|
Allowance for doubtful
accounts - other receivables and
prepayments
|
-
|
|
796
|
Allowance for doubtful
accounts - other non-current
assets
|
1,225,200
|
|
-
|
Write-down of obsolete
inventories
|
61,497
|
|
16,750
|
Deferred tax (benefit)
expense
|
(1,584,958)
|
|
167,921
|
Share-based
compensation
|
9,307,099
|
|
4,033,482
|
Equity in (income) loss of
an equity method investee
|
(43,535)
|
|
761,300
|
Excess tax benefits from
share-based compensation
arrangements
|
-
|
|
(288,681)
|
Change in operating assets
and liabilities:
|
|
|
|
Accounts
receivable
|
(13,856,209)
|
|
(18,835,493)
|
Prepayment and other
current assets
|
2,433,998
|
|
(1,165,997)
|
Inventories
|
(12,522,807)
|
|
(25,272,719)
|
Accounts
payable
|
(3,001,361)
|
|
10,123,561
|
Other payables and accrued
expenses
|
(4,465,594)
|
|
(2,391,597)
|
Deferred
income
|
(255,394)
|
|
(149,708)
|
Income tax
payable
|
4,339,536
|
|
(1,223,601)
|
Net cash provided by
operating activities
|
57,012,818
|
|
34,561,277
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Payment for
property, plant and
equipment
|
(25,222,545)
|
|
(16,486,212)
|
Payment for
intangible assets and land use
rights
|
(1,351,789)
|
|
(4,205,678)
|
Refund of deposits related
to land use right
|
6,461,924
|
|
-
|
Proceeds from
sale of property, plant and equipment and land use
rights
|
100,424
|
|
559,029
|
Long-term loan lent to a
third party
|
(6,331,518)
|
|
-
|
Net cash used in
investing activities
|
(26,343,504)
|
|
(20,132,861)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from
stock option exercised
|
2,364,952
|
|
771,164
|
Repayment of
short-term bank loans
|
-
|
|
(97,910,360)
|
Maturity of deposit as
security for bank loans
|
37,756,405
|
|
31,985,122
|
Excess tax benefits from
share-based compensation
arrangements
|
-
|
|
288,681
|
Dividend paid by
subsidiaries to noncontrolling interest
shareholders
|
(7,921,952)
|
|
-
|
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
financing activities
|
32,199,405
|
|
12,027,752
|
|
|
|
|
EFFECT OF FOREIGN EXCHANGE
RATE CHANGES ON CASH
|
(3,772,623)
|
|
(661,684)
|
|
|
|
|
NET INCREASE IN CASH AND CASH
EQUIVALENTS
|
59,096,096
|
|
25,794,484
|
|
|
|
|
Cash and cash equivalents
at beginning of period
|
144,937,893
|
|
80,820,224
|
|
|
|
|
Cash and cash equivalents
at end of period
|
204,033,989
|
|
106,614,708
|
|
|
|
|
Supplemental cash flow
information
|
|
|
|
Cash paid for income
taxes
|
10,841,209
|
|
12,829,660
|
Cash paid for
interest expense
|
-
|
|
1,428,614
|
Noncash
investing and financing activities:
|
|
|
|
Acquisition
of property, plant and equipment included in payables
|
9,312,476
|
|
231,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA BIOLOGIC PRODUCTS,
INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
For the Three Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non
GAAP
|
35,167,523
|
|
28,582,627
|
Diluted EPS - Non
GAAP
|
1.26
|
|
1.06
|
Non-cash employee stock
compensation
|
(4,414,488)
|
|
(1,858,668)
|
Net Income Attributable to
the Company
|
30,753,035
|
|
26,723,959
|
Weighted average number of
shares used in computation of Non GAAP diluted
EPS
|
27,152,560
|
|
26,320,773
|
|
|
|
|
|
For the Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
USD
|
|
USD
|
Adjusted Net Income
Attributable to the Company - Non
GAAP
|
65,609,897
|
|
53,533,033
|
Diluted EPS - Non
GAAP
|
2.36
|
|
1.99
|
Non-cash employee stock
compensation
|
(8,659,607)
|
|
(3,646,602)
|
Net Income Attributable to
the Company
|
56,950,290
|
|
49,886,431
|
Weighted average number of
shares used in computation of Non GAAP diluted
EPS
|
27,145,470
|
|
26,265,857
|
|
|
|
|
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-2016-300309199.html
SOURCE China Biologic Products, Inc.