TAI'AN, China, Nov. 16 /PRNewswire-Asia-FirstCall/ -- China
Biologic Products, Inc. (OTC:CBPO) (BULLETIN BOARD: CBPO) ("China
Biologic," or the "Company"), one of the leading plasma-based
biopharmaceutical companies in the People's Republic of China
("PRC"), operating through its indirect majority- owned
subsidiaries, Shandong Taibang Biological Products Co. Ltd.
("Taibang") and Guiyang Dalin Biologic Technologies Co., Ltd.
("Dalin") and its equity investment in Xi'an Huitian Blood Products
Co., Ltd. ("Huitian"), today reported financial results for the
third quarter ended September 30, 2009. Third Quarter 2009
Highlights -- Revenues increased 95.9% year-over-year to $27.0
million -- Revenues excluding the acquisition of Dalin increased
23.2% year-over-year to $17.0 million -- Gross profit increased
107.8% year-over-year to $20.1 million, representing a gross margin
of 74.3% -- Operating income increased 99.1% year-over-year to
$14.0 million, representing an operating margin of 51.9% -- Net
loss attributable to controlling interest was $6.2 million, or
($0.29) per diluted share, including the impact of a $13.2 million
non-cash expense -- Non-GAAP net income(*) was $7.1 million or
$0.33 per diluted share, a 56.8% increase over $4.5 million or
$0.21 per diluted share in the third quarter of 2008 (*) Excluding
non-cash employee compensation expenses and changes in the fair
value of derivative liabilities. See "About Non-GAAP Financial
Measures" as well as the reconciliation table of non-GAAP net
income to GAAP net income at the end of the press release. "In the
third quarter of 2009, we maintained our leadership position in the
industry by continuing to provide high margin, plasma-based
products to the market. Our operating income nearly doubled
year-over-year, due to the contribution of our recently acquired
Dalin subsidiary and healthy organic growth," said Mr. Chao Ming
Zhao, Chief Executive Officer. "Furthermore, we made major steps
forward in expanding our research and development capabilities by
engaging an expert in plasma-based research to serve as our
director of R&D, and we entered into a collaboration agreement
with a well- known blood institute in Sichuan Province. We believe
that these measures will allow us to make tangible progress toward
our goal of becoming the leading plasma-based pharmaceutical
company in China." During the third quarter of 2009, the Company
achieved the following milestones: -- China Biologic hosted a forum
of industry experts at its headquarters in Tai'an City. The Company
received counsel on how to create synergies among its subsidiaries,
including the initiation of research and development of new drugs,
efficient use of resources, quality control procedures during
collection, production and distribution processes, and other areas
to create long-term, sustainable growth. -- In order to reduce the
cost of administrative operations, the Company relocated its Dalin
subsidiary from Chongqing, Sichuan Province, to China Biologic's
campus in Guiyang, Guizhou Province. Dalin was renamed "Guiyang
Dalin Biologic Technologies Co., Ltd." to reflect the relocation.
-- China Biologic appointed Dr. Vincent Yi-Wu Xie to serve as the
Company's Director of Research and Development. Dr. Xie will
oversee the development of new biologic products including
processes, analytical methods and indications. Dr. Xie is a veteran
in the biopharmaceutical industry and has published several papers
and articles related to the field of plasma-based research. --
China Biologic's indirectly owned subsidiary, Qianfeng Biological
Products Co., Ltd. ("Qianfeng"), was granted renewal of its PRC
State Food and Drug Administration ("SFDA") certification of
compliance with Good Manufacturing Practices for the Qianfeng
production facility. -- China Biologic entered into a strategic
research and development agreement with the Institute of Blood
Transfusion (the "IBT"), based in Chengdu, Sichuan Province, to
strengthen the Company's research and development capabilities and
manufacturing processes. IBT is a division of the Chinese Academy
of Medical Sciences and Peking Union Medical College. Third Quarter
Results Revenues for the third quarter of 2009 increased 95.9% to a
record $27.0 million, compared to $13.8 million for the same period
last year. The increase in revenues is primarily attributable to
the consolidation of Dalin, a general increase in the price of
plasma-based products, which was partially offset by a decline in
sales volume by one of the Company's products, and a 0.3% increase
due to foreign exchange translation. During the third quarter of
2009, Dalin accounted for $10.0 million in revenue, or 37.1% of
total revenues, and Taibang accounted for $17.0 million in revenue,
or 62.9% of total revenues. Revenues, excluding the acquisition of
Dalin, increased 23.2% year-over-year, as prior to January 1, 2009,
Taibang accounted for 100% of the Company's revenues. Gross profit
for the third quarter of 2009 was $20.1 million, up 107.8% from
$9.7 million in the third quarter of 2008. Gross margin was 74.3%,
up 430 basis points from 70.0% in the third quarter of 2008. The
increase in gross profit margin was primarily due to general price
increases and an increase in sales of higher margin products, which
was partially offset by an increase in raw material costs. Total
operating expenses in the third quarter of 2009 increased 131.4% to
$6.1 million versus $2.6 million in the prior year period. Selling
expenses decreased 20.6% to $0.6 million, compared to $0.8 million
in the third quarter of 2008. The decrease in selling expenses was
primarily due to the reduction in marketing and promotion
activities initiated in 2008, which was offset by the consolidation
of Dalin's selling activities, as well as increased marketing
efforts to increase direct sales to new hospitals. As a percentage
of sales, selling expenses in the third quarter of 2009 were 2.3%,
down from 5.7% in the third quarter last year. General and
administrative ("G&A") expenses increased 216.3% to $5.2
million. As a percentage of sales, G&A expenses increased to
19.1% for the third quarter of 2009, from 11.8% for the same period
in 2008. The increase in G&A expenses was mainly due to
expenses related to the acquisition of Dalin, such as additional
professional service charges and personnel-related costs and
depreciation and amortization expenses. The Company also incurred
$7,314 in non-cash employee compensation expenses as a result of
grants to employees, consultants and directors made under the 2008
Equity Incentive Plan, compared to $20,613 for the same period in
2008. Research and development expenses increased 30.6% to $0.3
million, or 1.0% of total revenues, compared to $0.2 million, or
1.5% of total revenue, in the third quarter of 2008. The dollar
increase was due primarily to the consolidation of Dalin and
increased costs from continuing clinical trials on new products.
Total other expenses in the third quarter of 2009 were $14.3
million. Between June 30, 2009 and September 30, 2009, the
Company's stock price increased from $4.03 per share to $7.52 per
share. As a result, the Company recognized a loss of $13.2 million
from changes in the fair value of derivative liabilities, including
warrants and derivative instruments (including the conversion
option) embedded in the Company's Senior Secured Convertible Notes.
No such charge occurred in the third quarter of 2008. In addition,
the Company recorded a loss of $31,051 in equity income in
connection with its 35% equity interest in Huitian, the Company's
unconsolidated affiliate, compared to a net gain of $90,390 in the
second quarter of 2009, due to the additional depreciation and
amortization expenses arising from the write-up of assets as a
result of the equity investment. Net interest expense was $0.7
million for the third quarter of 2009 compared to interest income
of $21,713 for the same period in 2008. The increase in interest
expense is primarily due to financing related to the acquisition of
Dalin. Provision for income taxes increased 61.2% to $2.5 million
for the third quarter of 2009, compared to $1.6 million for the
same period last year. The increase in provision for income taxes
is mainly due to the consolidation of Dalin, which was offset by
the decrease of Taibang's provision for income taxes. Taibang
accrued its 2008 taxes at 25% before it was granted a 15%
preferential tax rate for the 2008 tax year in early 2009. Net loss
attributable to controlling interest for the third quarter of 2009
was $6.2 million, compared to net income attributable to
controlling interest of $4.5 million in the third quarter of 2008.
Fully diluted loss per share was $0.29 for the third quarter of
2009, compared to earnings per share of $0.21 in the third quarter
of 2008. Non-GAAP net income in the third quarter of 2009 was $7.1
million or $0.31 per fully diluted share, an increase of 56.8% from
non-GAAP net income of $4.5 million, or $0.21 per fully diluted
share in the third quarter of 2008.(*) (*) Excluding non-cash
employee compensation expenses and changes in the fair value of
derivative liabilities. See "About Non-GAAP Financial Measures" as
well as the reconciliation table of non-GAAP net income to GAAP net
income at the end of the press release. Nine Month Results For the
first nine months of 2009, total revenue was $81.4 million, up
142.4% from the first nine months of 2008. Revenues excluding the
acquisition of Dalin increased 41.8% year-over-year to $47.6
million, compared to $33.6 million a year ago. Gross profit for the
first nine months of 2009 was $59.0 million, up 147.5% from $23.8
million in the comparable period a year ago. Gross margin increased
200 basis points to 73.0% from 71.0% in the same period last year.
Income from operations for the period was $40.6 million, up 159.7%
from $15.6 million in the first nine months of 2008. Net income for
the first nine months of 2009 was $5.0 million, down 42.7% from
$8.8 million in the first nine months of 2008. Fully diluted
earnings per share was $0.23 for the first nine months of 2009
compared to $0.40 in the first nine months of 2008. Adjusting for
non-cash employee compensation expenses and changes in the fair
value of derivative liabilities, including warrants and derivative
instruments (including the conversion option) embedded in the
Company's Senior Secured Convertible Notes, non-GAAP net income for
the first nine months of 2009 was $20.0 million, or $0.92 per fully
diluted share, an increase of 99.7% from non-GAAP net income of
$10.1 million or $0.46 per fully diluted share for the first nine
months of 2008. Financial Condition As of September 30, 2009, the
Company had $50.3 million in cash and cash equivalents,
approximately $26.8 million in working capital, and a current ratio
of 1.4:1. Total shareholder's equity at the end of the third
quarter of 2009 was $78.3 million, compared to $42.0 million at the
end of 2008. The Company generated $35.5 million in net cash from
operating activities for the first nine months of 2009 compared to
$14.7 million in the same period of 2008. Recent Developments China
Biologic was named to Forbes Magazine's fifth annual list of Asia's
"200 Best Under a Billion" for the year 2009. Business Outlook Mr.
Zhao added, "We believe that as a result of our recent equity
investments in Dalin and Huitian, and as the only approved
manufacturer of plasma-based biopharmaceuticals in Shandong
Province, we are well-positioned to capitalize on the opportunities
in our market. The acquisition of equity interests in Dalin and
Huitian has accelerated our geographic expansion, diversified our
customer base, and enhanced our technological capabilities, and has
provided us with ownership interests in three of the 32 approved
plasma-based biopharmaceutical manufacturers in China. "During the
fourth quarter of 2009 and into 2010, we expect to continue to
experience strong demand for our products and services, as the
tight supply and demand situation for plasma-based products in
China is expected to persist. In the interim, we continue to invest
in our research and development efforts aimed at expanding our
product line to include higher-margin, technologically more
advanced plasma-based biopharmaceutical products." Conference Call
China Biologic will host a conference call at 8:00 a.m. ET on
Monday, November 16, 2009, to discuss the 2009 third quarter
financial results. To participate in the conference call, please
dial the following number five to ten minutes prior to the
scheduled conference call time: 866-356-3093. International callers
should dial +1-617-597-5381. The pass code for the call is
91606809. If you are unable to participate in the call at this
time, a replay will be available for 14 days starting on Monday,
November 16, 2009 at 10:00 a.m. ET. To access the replay, dial
888-286-8010. International callers should dial +1-617-801-6888.
The conference pass code is 78299906. Use of Non-GAAP Financial
Measures GAAP results for the three months and nine months ended
September 30, 2009, and September 30, 2008, include non-cash
compensation expenses related to options granted to employees and
directors under the Company's 2008 Equity Incentive Plan and
changes in the fair value of derivative liabilities, including
warrants and derivative instruments (including the conversion
option) embedded in the Company's Senior Secured Convertible Notes.
To supplement the Company's condensed consolidated financial
statements presented on a GAAP basis, the Company has provided
non-GAAP financial information excluding the impact of this item in
this release. The Company's management believes that this non-GAAP
measure provides investors with a better understanding of how the
results relate to the Company's historical performance. A
reconciliation of the adjustments to GAAP results appears in the
table accompanying this press 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. About China Biologic
Products, Inc. China Biologic Products, Inc. (the "Company"),
through its indirect majority-owned subsidiaries, Shandong Taibang
Biological Products Co. Ltd. and Guiyang Dalin Biologic
Technologies Co., Ltd, and its equity investment in Xi'an Huitian
Blood Products Co., Ltd., is currently the largest non-state- owned
plasma-based biopharmaceutical company in China. The Company is a
fully integrated biologic products company with plasma collection,
production and manufacturing, research and development, and
commercial operations. The Company's plasma-based biopharmaceutical
products are irreplaceable during medical emergencies, and are used
for the prevention and treatment of various diseases. The Company
sells its products to hospitals and other healthcare facilities in
China. Safe Harbor Statement This release may contain certain
"forward-looking statements" relating to the business of China
Biologic Products, Inc. and its subsidiary companies. All
statements, other than statements of historical fact included
herein are "forward-looking statements," including statements
regarding: the significance of the Company's acquisitions and
acquisition strategy and the benefits of such acquisitions,
including the expected impact on the Company's 2009 revenues and
net income; the ability of the Company to achieve its commercial
objectives; the business strategy, plans and objectives of the
Company and its subsidiaries, including its goal of becoming the
leading plasma-based biopharmaceutical company in China; and any
other statements of non-historical information. These
forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects" or
similar expressions, and involve known and unknown risks and
uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do 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 press 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 those 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. For
further information, please contact: Company Contact: China
Biologic Products, Inc. Mr. Y. Tristan Kuo Chief Financial Officer
Tel: +86-538-6202206 Email: Web: http://www.chinabiologic.com/
Investor Relations Contact: CCG Investor Relations Mr. Athan
Dounis, Account Manager Tel: +1-646-213-1916 Email: Mr. Crocker
Coulson, President Tel: +1-646-213-1915 Email: Web:
http://www.ccgirasia.com/ CHINA BIOLOGIC PRODUCTS, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER
COMPREHENSIVE INCOME (LOSS)FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2009 AND 2008 (Unaudited) Three months ended Nine
months ended September 30, September 30, 2009 2008 2009 2008
REVENUES Revenues $26,871,259 $13,799,915 $80,861,353 $33,574,764
Revenues - related party 168,480 -- 508,529 -- Total revenues
27,039,739 13,799,915 81,369,882 33,574,764 COST OF REVENUES Cost
of revenues 6,942,948 4,138,077 22,283,881 9,725,103 Cost of
revenues - related party 17,953 -- 53,715 -- Total cost of revenues
6,960,901 4,138,077 22,337,596 9,725,103 GROSS PROFIT 20,078,838
9,661,838 59,032,286 23,849,661 OPERATING EXPENSES: Selling
expenses 619,467 780,246 2,313,577 1,785,340 General and
administrative expenses 5,169,137 1,634,233 14,996,846 5,756,087
Research and development expenses 262,500 201,037 1,098,083 664,652
Total operating expenses 6,051,104 2,615,516 18,408,506 8,206,079
INCOME FROM OPERATIONS 14,027,734 7,046,322 40,623,780 15,643,582
OTHER EXPENSES (INCOME): Equity in loss (income) of unconsolidated
affiliate (31,051) -- 19,092 -- Change in fair value of derivative
liabilities 13,242,333 -- 14,931,088 -- Interest expense (income),
net 724,771 (21,713) 1,979,538 (7,531) Other expense (income), net
337,645 57,815 372,955 110,267 Total other expenses, net 14,273,698
36,102 17,302,673 102,736 INCOME (LOSS) BEFORE PROVISION FOR INCOME
TAXES AND NONCONTROLLING INTEREST (245,964) 7,010,220 23,321,107
15,540,846 PROVISION FOR INCOME TAXES 2,535,023 1,572,816 7,547,318
4,437,141 NET INCOME (LOSS) BEFORE NONCONTROLLING INTEREST
(2,780,987) 5,437,404 15,773,789 11,103,705 Less: Net income
attributable to noncontrolling interest 3,412,582 958,858
10,738,295 2,323,205 NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING
INTEREST (6,193,569) 4,478,546 5,035,494 8,780,500 OTHER
COMPREHENSIVE INCOME (LOSS): Foreign currency translation
adjustments (62,767) 121,814 349,602 1,992,939 COMPREHENSIVE INCOME
(LOSS) $(6,256,336) $4,600,360 $5,385,096 $10,773,439 BASIC
EARNINGS PER SHARE: Weighted average number of shares 21,632,793
21,434,942 21,504,002 21,434,942 Earnings (loss) per share $(0.29)
$0.21 $0.23 $0.41 DILUTED EARNINGS PER SHARE: Weighted average
number of shares 21,632,793 21,504,629 21,767,086 21,713,170
Earnings (loss) per share $(0.29) $0.21 $0.23 $0.40 CHINA BIOLOGIC
PRODUCTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF
SEPTEMBER 30, 2009 AND DECEMBER 31, 2008 ASSETS September 30,
December 31, 2009 2008 (Unaudited) CURRENT ASSETS: Cash and cash
equivalents $50,348,133 $8,814,616 Accounts receivable, net of
allowance for doubtful accounts of $1,393,567 and $1,268,052 as of
September 30, 2009 and December 31, 2008, respectively 1,473,942
313,087 Accounts receivable - related party 41,430 -- Dividend
receivable -- 147,256 Other receivables 926,581 356,957 Inventories
33,218,618 14,949,196 Prepayments and deferred expense 1,582,566
614,704 Total current assets 87,591,270 25,195,816 PLANT AND
EQUIPMENT, net 27,849,832 19,299,364 OTHER ASSETS: Investment in
unconsolidated affiliate 6,277,894 6,533,977 Refundable deposit for
potential acquisition -- 14,181,800 Prepayments - non-current
4,870,735 955,874 Intangible assets, net 21,152,417 1,002,561
Goodwill 12,425,589 -- Total other assets 44,726,635 22,674,212
Total assets $160,167,737 $67,169,392 LIABILITIES AND EQUITY
CURRENT LIABILITIES: Accounts payable $3,610,470 $2,481,889 Notes
payable -- 29,340 Short term loans - bank 10,782,450 -- Short term
loans - holder of noncontrolling interest 4,425,777 773,277 Other
payables and accrued liabilities 17,118,218 3,962,931 Other payable
- related parties 3,086,940 -- Accrued interest - holder of
noncontrolling interest 1,319,556 -- Distribution payable to holder
of noncontrolling interest 759,319 3,252,354 Customer deposits
7,751,013 1,091,792 Taxes payable 5,913,231 4,060,010 Long term
loan - bank, current maturities 3,374,100 -- Investment payable
2,625,405 3,275,501 Total current liabilities 60,766,479 18,927,094
OTHER LIABILITIES: Non-current other payable - land use right
324,121 325,390 Notes payable, net of discount of $9,508,965 as of
September 30, 2009 45,175 -- Long term loan - bank, net of current
maturities -- 5,868,000 Derivative liability - conversion option
12,784,873 -- Fair value of derivative instruments 7,943,174 --
Total other liabilities 21,097,343 6,193,390 Total liabilities
81,863,822 25,120,484 COMMITMENTS AND CONTINGENCIES -- -- EQUITY:
Common stock, $0.0001 par value, 100,000,000 shares authorized,
22,650,442 and 21,434,942 shares issued and outstanding at
September 30, 2009 and December 31, 2008, respectively 2,265 2,143
Paid-in-capital 19,191,623 10,700,032 Statutory reserves 13,413,353
6,989,801 Retained earnings 13,074,618 15,392,253 Accumulated other
comprehensive income 5,102,487 4,752,885 Total shareholders' equity
50,784,346 37,837,114 NONCONTROLLING INTEREST 27,519,569 4,211,794
Total equity 78,303,915 42,048,908 Total liabilities and equity
$160,167,737 $67,169,392 CHINA BIOLOGIC PRODUCTS, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE
MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (Unaudited) 2009 2008 CASH
FLOWS FROM OPERATING ACTIVITIES: Net income attributable to
controlling interest $5,035,494 $8,780,500 Net income attributable
to noncontrolling interest 10,738,295 2,323,205 Consolidated net
income 15,773,789 11,103,705 Adjustments to reconcile net income to
cash provided by operating activities: Depreciation 2,158,206
914,575 Amortization 2,654,269 80,753 Loss on disposal of equipment
114,246 73,310 Recovery of bad debt previously reserved (9,621) --
Allowance for bad debt - accounts receivables 90,442 -- Allowance
for bad debt - other receivables and prepayments 659,788 -- Stock
based compensation 62,281 1,283,801 Change in fair value of warrant
liabilities 14,931,088 -- Amortization of deferred note issuance
cost 110,938 -- Amortization of discount on convertible notes
45,175 -- Equity in loss of unconsolidated affiliate 19,092 --
Change in operating assets and liabilities: Notes receivable --
43,011 Accounts receivable (1,306,293) (353,412) Accounts
receivable - related party 378,308 -- Other receivables (485,641)
15,251 Inventories (9,729,616) (3,206,654) Prepayments and deferred
expenses (511,819) (355,012) Accounts payable (149,764) 72,681
Other payables and accrued liabilities 4,236,622 1,267,099 Accrued
interest - holder of noncontrolling interest 1,319,555 -- Customer
deposits 4,154,255 383,703 Taxes payable 942,929 3,477,543
Contingent liability -- (108,430) Net cash provided by operating
activities 35,458,229 14,691,924 CASH FLOWS FROM INVESTING
ACTIVITIES: Cash acquired through acquisition 11,945,303 --
Proceeds from dividend receivable 147,256 -- Payments made for
acquisition (10,373,854) -- Payments made for unconsolidated
affiliate (3,224,980) -- Purchase of plant and equipment
(2,323,903) (3,154,996) Additions to intangible assets (1,374,146)
(9,620) Proceeds from sale of equipment 513 53,078 Advances for
potential acquisition -- (1,463,000) Advances on non-current assets
(855,298) (160,256) Net cash used in investing activities
(6,059,109) (4,734,794) CASH FLOWS FROM FINANCING ACTIVITIES:
Change in restricted cash -- (338,353) Payments on notes payable
(29,318) -- Proceeds from warrants conversion 3,455,059 -- Proceeds
from issuance of convertible notes 8,967,516 -- Repayments of
former shareholders loan in acquiring company (2,782,278) --
Proceeds from short term loans - bank 13,515,598 -- Payments on
short term loans - bank (2,814,528) (716,850) Payments on long term
loan - bank (5,863,600) -- Dividends paid to noncontrolling
interest shareholders (2,293,888) (286,740) Net cash provided by
(used in) financing activities 12,095,925 (1,341,943) EFFECTS OF
EXCHANGE RATE CHANGE IN CASH 38,472 598,736 INCREASE IN CASH
41,533,517 9,213,923 CASH and CASH EQUIVALENTS, beginning of period
8,814,616 5,010,033 CASH and CASH EQUIVALENTS, end of period
$50,348,133 $14,223,956 SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION Income taxes paid $7,525,262 $1,830,589 Interest paid
(net of capitalized interest) $911,846 $47,197 Non-cash investing
and financing activities: Reclassification of warrant liability to
paid-in capital upon warrants conversion $5,712,822 $-- Dividend
paid by offsetting accounts receivable-related party $943,907 $--
Dividend paid in exchange of holder of noncontrolling interest loan
$3,737,283 $-- Dividend paid by offsetting loan due from holder of
noncontrolling interest $4,470,995 $-- Net assets acquired with
prepayments made in prior periods $14,248,548 $-- Net assets
acquired with unpaid investment $2,849,710 $-- Land use right
acquired with prepayments made in prior periods $131,931 $-- CHINA
BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES FOR THE THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 2009 AND 2008 Three Months Ended Three Months Ended
September 30, 2009 September 30, 2008 Net Diluted Net Diluted
Income EPS Income EPS Adjusted Amount - Non GAAP $7,056,078 $0.33
$4,499,159 $0.21 Non-cash employee compensation (1) $7,314 $0.00
$20,613 $0.00 Change in fair value of derivative liabilities (2)
$13,242,333 $0.61 -- -- Amount per consolidated statement of
operations ($6,193,569) ($0.29) $4,478,546 $0.21 Weighted average
number of shares - diluted 21,632,793 21,504,629 Nine Months Ended
Nine Months Ended September 30, 2009 September 30, 2008 Net Diluted
Net Diluted Income EPS Income EPS Adjusted Amount - Non GAAP
$20,028,863 $0.92 $10,064,301 $0.46 Non-cash employee compensation
(1) $62,281 $0.00 $1,283,801 $0.06 Change in fair value of
derivative liabilities (2) $14,931,088 $0.69 -- -- Amount per
consolidated statement of operations $5,035,494 $0.23 $8,780,500
$0.40 Weighted average number of shares - diluted 21,767,086
21,713,170 (1) Non-cash compensation expenses related to options
granted to employees and directors under the Company's 2008 Equity
Incentive Plan; (2) Change in the fair value of derivative
liabilities, including warrants and derivative instruments
(including the conversion option) embedded in the Company's Senior
Secured Convertible Notes, to be recognized in earnings each
quarter. DATASOURCE: China Biologic Products, Inc. CONTACT: China
Biologic Products, Inc., +86-538-6202206, Email: ; Investor
Relations Contact: CCG Investor Relations, Mr. Athan Dounis,
Account Manager, +1-646-213-1916, Email: , or Mr. Crocker Coulson,
President, +1-646-213-1915, Email: Web site:
http://www.chinabiologic.com/
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