BEIJING, Nov. 24, 2020 /PRNewswire/ -- China Biologic
Products Holdings, 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 2020.
Third Quarter 2020 Financial Highlights
- Total sales in the third quarter of
2020 increased by 0.8% in RMB terms and 1.8% in USD terms to
$138.5 million from $136.1 million in the same quarter of 2019.
- Gross profit increased by 4.4% to $92.5 million from $88.6
million in the same quarter of 2019. Gross margin
increased to 66.8% from 65.1% in the same quarter of
2019.
- Income from operations decreased by 1.9% to
$52.0 million from $53.0 million in the same quarter of 2019.
Operating margin decreased to 37.5% from 38.9% in the
same quarter of 2019.
- Non-GAAP adjusted income from operations increased
by 11.7% in RMB terms and 12.8% in USD terms to $69.4 million from $61.5
million in the same quarter of 2019.
- Net income attributable to the
Company decreased by 16.0% to $39.5 million from
$47.0 million in the same
quarter of 2019. Diluted earnings per share decreased
to $0.99 compared to $1.21 in the same quarter of
2019.
- Non-GAAP adjusted net income attributable to the
Company increased by 0.2% in RMB terms and 1.3% in
USD terms to $55.1 million from
$54.4 million in the same
quarter of 2019. Non-GAAP adjusted
earnings per diluted share was $1.39 compared to $1.40 in the same quarter of
2019.
NOTE: Detailed financial statements and information are
available through this link: https://mma.prnewswire.com/media/1341457/China_Biologic_Third_Quarter_2020_Financial_Results.pdf
"This quarter China Biologic reported an encouraging rebound in
revenue from the second quarter and a slight increase on a
year-over-year basis, reflecting our efforts to regain sales
momentum following the COVID-19 disruption," said Joseph Chow, Chairman and CEO of China Biologic.
"Thanks to recent measures to improve sales and marketing
efficiencies, we recorded non-GAAP operating income growth of
nearly 12% over the same quarter last year. During the quarter we
further optimized our commercial team structure, enhanced our
medical marketing support function, implemented a multidimensional
evaluation system for staff performance and established better
incentive and compensation structures. These strategic initiatives
position us to cope with ongoing pandemic-related
macro-uncertainties as well as potentially intensifying market
competition, in the face of a short-term decline in demand and
supply surge as observed in our peer companies' recent batch
approval records."
"Beyond sales and marketing, our long term growth initiatives,
including construction of new plasma collection stations and
R&D projects, are well on track. We are pleased to report that
our newly built collection station in Chongqing city recently passed official
inspection with commercial operations to commence soon, and two new
collection stations in Shandong
province are expected to commercially launch in early 2021. With
the continuing expansion of our plasma collection capacity and
progress in our product pipeline, CBPO is well positioned to meet
the increasing market demands for plasma protein therapeutics in
China in the coming years."
Recent Development
As previously announced, on November 19,
2020, the Company entered into a definitive Agreement and
Plan of Merger (the "Merger Agreement") with CBPO Holdings Limited
("Parent") and CBPO Group Limited ("Merger Sub"), a wholly owned
subsidiary of Parent, which contemplates that Merger Sub will merge
with and into the Company, with the Company continuing as the
surviving entity and becoming a wholly-owned subsidiary of
Parent.
Pursuant to the Merger Agreement, at the effective time of the
merger, each ordinary share of the Company issued and outstanding
immediately prior to the effective time of the merger will be
cancelled and cease to exist in exchange for the right to receive
$120.00 in cash without interest,
except for Excluded Shares and Dissenting Shares (each as defined
in the Merger Agreement). If completed, the merger will result in
the Company becoming a privately-held company and its shares will
no longer be listed on the NASDAQ Global Select Market.
The closing of the merger is currently expected to occur during
the first half of 2021 and is subject to customary closing
conditions, including, among others, (i) that the Merger Agreement
shall be authorized and approved by an affirmative vote of
shareholders representing at least two-thirds of the ordinary
shares of the Company present and voting in person or by proxy at
an extraordinary general meeting of the Company's shareholders and
(ii) that the aggregate amount of dissenting shares shall be less
than 8% of the total outstanding ordinary shares of the Company
immediately prior to the effective time of the merger.
The Company does not undertake any obligation to provide any
update with respect to the merger or any other transaction, except
as required under applicable law.
Conference Call
The Company's management will hold a conference call at 7:30
a.m. ET on Wednesday, November 25,
2020, which is 8:30 p.m.
Beijing Time on November 25, 2020, to
discuss third quarter 2020 results. Listeners may access the call
by dialing:
US:
1 888 346 8982
International: 1
412 902 4272
Hong
Kong: 800
905945
Mainland China: 4001
201203
A telephone replay will be available one hour after the
conclusion of the conference call through December 2, 2020. The dial-in details are:
US:
1 877 344 7529
International: 1
412 317 0088
Passcode: 10149967
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 Holdings, Inc.
China Biologic Products Holdings, 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 subsidiary, Shandong Taibang Biological Products
Co., Ltd. and its wholly owned subsidiary, Guizhou Taibang
Biological Products Co., Ltd. The Company also has an equity
investment in Xi'an Huitian Blood Products Co., Ltd. Since the
acquisition of TianXinFu (Beijing)
Medical Appliance Co., Ltd. in 2018, China Biologic is also engaged
in the sale of medical devices, primarily regenerative medical
biomaterial products. 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.
Contact:
China Biologic Products Holdings, Inc.
Mr. Ming Yin
Senior Vice President
Email: ir@chinabiologic.com
The Foote Group
Mr. Philip Lisio
Phone: +86-135-0116-6560
Email: phil@thefootegroup.com
Non-GAAP Disclosure
This news release contains non-GAAP financial measures that
exclude non-cash compensation expenses related to restricted shares
and restricted share units granted to employees and directors under
the Company's Equity Incentive Plans and amortization of acquired
intangible assets and land use rights. To supplement the Company's
unaudited 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
the detailed financial statements and information available through
the link in the notes of 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.
In addition, as the Company evaluates certain key items of its
financial results on a local currency basis (i.e., in RMB) in
addition to the reporting currency (i.e., in USD), this news
release contains local currency information that eliminates the
impact of fluctuations in foreign currency exchange rates. The
Company believes that, given its operations primarily based in
China, providing local currency
information on such key items enhances the understanding of its
financial results and evaluation of performance in comparison to
prior periods. Changes in local currency percentages are calculated
by comparing financial results denominated in RMB from period to
period.
Safe Harbor Statement
This news release may contain certain "forward-looking
statements" relating to the business of China Biologic Products
Holdings, 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 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, the
occurrence of any event, change or circumstance that could give
rise to the right of the Company or Parent to terminate the Merger
Agreement, the ability to obtain the approval of the Merger
Agreement by the shareholders of the Company, a delay in the
closing of the merger, quality 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.
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SOURCE China Biologic Products Holdings, Inc.