China Biologic Reports Financial Results for the Fourth Quarter and Fiscal Year 2014

-- 4Q14 Total Sales Up 36.2% to 58.0 Million / FY14 Total Sales Up 19.6% to $243.3 Million --

-- 4Q14 Operating Margin Up 470 Basis Points to 34.0% / FY14 Operating Margin Up 300 Basis Points to 45.7% --

-- 4Q14 Non-GAAP Net Income Up 53.1% to 14.7 Million / FY14 Non-GAAP Net Income Up 28.1% to $75.6 Million --

-- Exceeds FY14 Non-GAAP Net Income Forecast --

-- Issues FY15 Forecast --

Mar 4, 2015

BEIJING, March 4, 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 financial results for the fourth quarter and fiscal year 2014.

Fourth Quarter 2014 Financial Highlights

  • Total sales in the fourth quarter of 2014 increased by 36.2%, or 36.8% excluding the impact of foreign currency exchange rate changes, to $58.0 million from $42.6 million in the same quarter of 2013.
  • Gross profit increased by 37.0% to $37.0 million from $27.0 million in the last quarter of 2013. Gross margin increased to 63.8% from 63.4% in the fourth quarter of 2013.
  • Income from operations increased by 57.6% to $19.7 million from $12.5 million in the last quarter of 2013. Operating margin increased to 34.0%, or 42.8% excluding the impact of a one-time provision in connection with certain advance payments made under an employee housing development project, in the fourth quarter of 2014 from 29.3% in the same quarter of 2013.
  • Net income attributable to the Company increased by 46.6% to $12.9 million from $8.8 million in the last quarter of 2013. Fully diluted net income per share was $0.48 in the fourth quarter of 2014 as compared to $0.32 in the fourth quarter of 2013.
  • Non-GAAP adjusted net income attributable to the Company was $14.7 million, representing a 53.1% increase from $9.6 million in the same quarter of 2013. Non-GAAP adjusted net income per share was $0.56, compared to $0.35 in the last quarter of 2013.

Fiscal Year 2014 Financial Highlights

  • Total sales in 2014 increased by 19.6% to $243.3 million from $203.4 million in 2013.
  • Gross profit in 2014 increased by 18.3% to $163.2 million from $137.9 million in 2013. Gross margin decreased slightly to 67.1% in 2014 from 67.8% in 2013.
  • Income from operations in 2014 increased by 28.0% to $111.2 million from $86.9 million in 2013. Operating margin increased to 45.7% in 2014 from 42.7% in 2013.
  • Net income attributable to the Company in 2014 increased by 29.9% to $70.9 million from $54.6 million in 2013. Fully diluted net income per share was $2.71 in 2014 as compared to $1.96 in 2013.
  • Non-GAAP adjusted net income attributable to the Company in 2014 was $75.6 million, exceeding the Company's prior estimate, which represents a 28.1% increase from $59.0 million in 2013. Non-GAAP adjusted net income per share was $2.89, compared to $2.12 in 2013.

Note: The net income and non-GAAP adjusted net income figures in this news release reflected the one-time impact of the previously disclosed $3.6 million bad-debt provision attributable to the Company for the employee housing project in Shandong. See the Company's press release dated November 5, 2014.

Mr. David (Xiaoying) Gao, Chairman and Chief Executive Officer of China Biologic, commented, "We are very pleased to finish 2014 with strong top line and bottom line growth, significant operational developments, as well as an improved shareholder structure. Our healthy financial growth was supported by strong market demand, stable product pricing, increased production capacity after the renewal of GMP certification at our Guizhou facility, stringent cost control measures, the optimization of our product portfolio mix and the successful implementation of our sales strategy in tier-one cities."

"In 2014, we experienced a double-digit increase in our plasma collection volume for the third consecutive year, primarily through organic growth at our existing collection centers. We are pleased with our many accomplishments throughout the year. Highlights include receiving the approval to build two new plasma collection centers in Hebei Province, receiving production approval for human PCC products, increasing IVIG sales in tier-one cities, and expanding our production capacity of, and implementing an in-house sales strategy for, placenta polypeptide products. These combined efforts contributed to our considerable top line growth and improved operational efficiency in the fourth quarter and will contribute to our overall growth in the years to come."

Mr. Gao continued, "At the non-operational level, we continued to improve our shareholding structure and  create shareholder value. In early 2014, we repurchased an aggregate of 2.5 million shares of common stock, for a total consideration of $70 million. Additionally, we completed a following-on offering with net proceeds of $33.2 million in the middle of year and acquired an additional 19.84% equity stake in Guizhou Taibang in September 2014, which resulted in earnings accretion as well as the super majority ownership with significantly enhanced control of Guizhou Taibang's long-term strategy and development. Looking ahead, we will continue our efforts in 2015 to grow China Biologic into a national leader in the plasma biopharmaceutical industry."

Fourth Quarter 2014 Financial Performance

Total sales in the fourth quarter of 2014 were $58.0 million, representing an increase of 36.2%, or 36.8% excluding the foreign exchange effect, from $42.6 million in the same quarter of 2013. The increase was primarily attributable to the sales increases in major plasma-based products and placenta polypeptide.

Cost of sales increased by 34.6% to $21.0 million in the fourth quarter of 2014 from $15.6 million in the same quarter of 2013, mainly in line with the total sales growth.

Gross profit increased by 37.0% to $37.0 million from $27.0 million in the same quarter of 2013. Gross margin increased to 63.8% in the fourth quarter of 2014, from 63.4% in the fourth quarter of 2013 primarily due to the combined effects of higher raw material costs, more profitable production mix and certain one-time non-recurring production charges in connection with new production lines and new products. 

Total operating expenses in the fourth quarter of 2014 increased by 19.3% to $17.3 million from $14.5 million in the same quarter of 2013, mainly due to effective cost control, partially offset by a $5.1 million one-time provision in connection with an employee housing development project in Shandong. As a percentage of total sales, total operating expenses decreased to 29.8%, or 21.0% excluding the impact of the one-time housing project provision, from 34.0% in the same quarter of 2013.

Income from operations increased by 57.6% to $19.7 million from $12.5 million in the same period of 2013. Operating margin increased to 34.0%, or 42.8% excluding the impact of the one-time bad-debt provision for the employee housing project in Shandong, in the reporting quarter from 29.3% in the same quarter of 2013.

Net income attributable to the Company increased by 46.6% to $12.9 million in the fourth quarter of 2014, from $8.8 million in the same quarter of 2013. Fully diluted net income per share was $0.48 in the fourth quarter of 2014, as compared to $0.32 in the same quarter of 2013.

Non-GAAP adjusted net income attributable to the Company was $14.7 million, or $0.56 per diluted share in the fourth quarter of 2014, representing an increase of 53.1% from $9.6 million, or 60.0% increase, from $0.35 per diluted share in the same quarter of 2013.

Fiscal Year 2014 Financial Performance

Total sales in 2014 were $243.3 million, an increase of 19.6% from $203.4 million in 2013. The increase in sales was primarily attributable to volume increases in major plasma-based products and placenta polypeptide products.

During 2014, human albumin and IVIG products remained the Company's largest two sales contributors. The average price for both products remained relatively stable as a result of the combined effects of the higher government-imposed retail price ceiling, reduced value added tax rate and our sales effort to increase market share in tier-one cities and new markets in 2014.

  • As a percentage of total sales, revenue from human albumin products was 39.3% in 2014 as compared to 44.1% in 2013. Sales volume of human albumin products increased by 5.1% in 2014, mainly due to the increased sales volume at Shandong Taibang, partially offset by the decreased sales volume at Guizhou Taibang as a result of the planned production suspension from June 2013 to March 2014.
  • As a percentage of total sales, revenue from IVIG products was 40.4% in 2014 as compared to 38.0% in 2013. Sales volume of IVIG products increased by 27.4% in 2014, primarily due to  increased market demand from the outburst of Hand-Foot-and-Mouth Disease and from increased sales through distributors in tier-one cities and new markets during 2014.
  • As a percentage of total sales, revenue from placenta polypeptide was 9.9% in 2014 as compared to 6.0% in 2013. The sales increase was due to higher volume from the expanded placenta polypeptide production capacity at Guizhou Taibang after its receipt of the GMP certification for the upgraded production facilities in January 2014.

Cost of sales increased by 22.1% to $80.0 million in 2014, from $65.5 million in 2013. Cost of sales as a percentage of total sales was 32.9%, as compared to 32.2% in 2013. Volume and percentage increases in cost of sales were mainly due to the increases in sales volume, cost of plasma and overhead, partially offset by a more profitable product mix.

Gross profit increased by 18.3% to $163.2 million in 2014 from $137.9 million in 2013. Gross margin was 67.1% in 2014 compared to 67.8% in 2013. 

Total operating expenses in 2014 increased by 2.4% to $52.1 million from $50.9 million in 2013. As a percentage of total sales, total operating expenses decreased to 21.4% in 2014, from 25.0% in 2013. The operating expenses for 2014 included a one-time provision of $5.1 million in connection with an employee housing development project in Shandong. Excluding the impact of such provision, total operating expenses decreased by 7.7% in 2014, mainly due to decreased general and administrative expenses.

Selling expenses in 2014 increased slightly by 0.9% to $10.7 million from $10.6 million in 2013. As a percentage of total sales, selling expenses were 4.4%, down from 5.2% in 2013, which was primarily due to the decreased per-unit selling expense of placenta polypeptide during the year.

General and administrative expenses in 2014 decreased by 11.1% to $32.1 million from $36.1 million in 2013. As a percentage of total sales, general and administrative expenses were 13.2% and 17.7% in 2014 and 2013, respectively. The decrease in general and administrative expenses was mainly due to a decrease in legal expenses and amortization expenses of intangible assets in connection with the Company's acquisition of a majority stake in Guizhou Taibang in 2008. 

Research and development expenses in 2014 were $4.2 million, compared to $4.2 million in 2013. As a percentage of total sales, research and development expenses for 2014 and 2013 were 1.7% and 2.1%, respectively. During 2014, the Company received one-off government grants totaling $2.1 million. Excluding this impact, research and development expenses increased by $2.1 million in 2014 from 2013. The increase was primarily due to the expenditure paid for certain clinical trial programs and the engagement of external experts for certain pipeline products.

Income from operations for 2014 was $111.2 million, representing an increase of 28.0% from $86.9 million in 2013. Operating margin increased to 45.7% in 2014 from 42.7% in 2013.

Other income for 2014 was $11.6 million, representing an increase of 110.9% from $5.5 million in 2013. The increase was mainly due to a non-recurring real estate gain of $6.7 million, reflected in investment income as a result of a land use right disposal at Xi'an Huitian.

Income tax expense in 2014 was $26.6 million, as compared to $15.5 million in 2013. The effective income tax rates were 21.7% and 16.8% for 2014 and 2013, respectively. For 2014, the dividend withholding income tax attributable to Shandong Taibang increased by $6.2 million, as compared to 2013, due to an increase in dividend distribution in Shandong Taibang. The dividends from Shandong Taibang are subject to withholding tax at a rate of 10%. Excluding the impact of dividend withholding income tax, effective income tax rates were 14.4% and 13.9% for 2014 and 2013, respectively.

Net income attributable to the Company increased by 29.9% to $70.9 million for 2014, from $54.6 million in 2013. Net margins were 29.1% and 26.8% for the years ended December 31, 2014 and 2013, respectively. Fully diluted net income per share was $2.71, as compared to $1.96 in 2013.

Non-GAAP adjusted net income attributable to the Company was $75.6 million, or $2.89 per diluted share 2014, representing an increase of 28.1% from $59.0 million, or 36.3% from $2.12 per diluted share, in 2013. 

Non-GAAP adjusted net income and diluted earnings per share in 2014 excluded $4.6 million of non-cash employee share-based compensation expenses.

As of December 31, 2014, the Company had cash and cash equivalents of $80.8 million, compared to $144.1 million as of December 31, 2013.

Net cash provided by operating activities for 2014 was $93.5 million, as compared to $74.3 million for 2013. The increase in inventory for 2014 and 2013 were $13.4 million and $10.4 million, respectively. The increase in inventories was mainly due to an increase in raw materials from the continued supply of plasma by plasma stations of Guizhou Taibang during the production suspension for GMP renewal. Accounts receivable increased by $2.2 million for 2014, in-line with the expansion of our sales during the period. The increase in accounts receivable for 2013 was $5.7 million.

Net cash used in investing activities for 2014 was $13.4 million, as compared to $25.6 million for 2013. For 2014 and 2013, the Company paid $17.2 million and $20.5 million, respectively, for the acquisition of property, plant and equipment at both Shandong Taibang and Guizhou Taibang. In addition, the Company made a refundable payment of $13.3 million in 2012 to the local government in connection with its bid for a land use right in Guizhou Province and received the refunded deposits of $1.6 million and $2.1 million in 2014 and 2013, respectively, due to a decrease in the size of the land provided by the local government. Further, Guizhou Taibang made a time deposit of $6.6 million in 2013, which matured in 2014.

Net cash used in financing activities for 2014 was $142.8 million, as compared to $38.5 million for 2013. Net cash used in financing activities for 2014 mainly consisted of a payment of $86.8 million for the acquisition of non-controlling interest in Guizhou Taibang, a dividend payment of $8.8 million by the Company's subsidiaries to non-controlling interest shareholders and a payment of $70.0 million for share repurchase from an individual stockholder, partially offset by proceeds of $33.2 million from the follow-on offering of the Company's common stock. The net cash used in financing activities for 2013 mainly consisted of a payment of $29.6 million for share repurchase and a dividend of $16.9 million paid by the Company's subsidiaries to the non-controlling interest shareholders.

Financial Outlook

Excluding the potential adverse impact of foreign currency, the Company expects total sales for 2015 to be in the range of $287 million to $292 million, which represents growth of 18% to 20% over 2014, and full year non-GAAP adjusted net income attributable to the Company for 2015 to be in the range of $95 million to $97 million, which represents growth of 26% to 28% over 2014.

Taking into account the potential impact of foreign currency, the Company expects sales and non-GAAP adjusted net income to be negatively impacted by approximately 4% to 5% by applying a current twelve-month forward exchange rate projection of RMB6.41 = $1.00.

This guidance assumes only organic growth and excludes acquisitions and necessarily assumes no significant adverse price or sales volume changes during 2015. This guidance reflects the Company's current and preliminary views, which are subject to change.

Conference Call

The Company will host a conference call at 7:30 am, Eastern Time on Thursday, March 5, 2014, which is 8:30 pm, Beijing Time on March 5, 2014, to discuss fourth quarter and fiscal year 2014 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 6113

A telephone replay will be available one hour after the conclusion of the conference call through March 12, 2014. The dial-in details are:

US:

1 877 344 7529

International:

1 412 317 0088

Passcode:

10060992

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 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 and inoculation centers, as well as distributors, 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 historical 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 plan regarding the construction of the collection stations, the time required for the collection stations to reach their designed capacities, 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 potential delay or failure in acquiring land use rights, obtaining construction permits, completing the design or construction, or passing the government inspection and certification process for the new collection stations in Hebei province, potential inability to achieve the designed collection capacities at the new collection stations, potential inability to achieve the expected operating and financial performance, potential inability to find alternative sources of plasma, potential inability to increase production at permitted sites, 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

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS








December 31, 


December 31, 



2014


2013



USD


USD

ASSETS 





Current Assets 





   Cash and cash equivalents


80,820,224


144,138,487

   Time deposit


-


6,608,612

   Restricted cash deposits


63,677,610


-

   Accounts receivable, net of allowance for doubtful accounts 


19,402,820


17,270,132

   Inventories 


101,304,932


88,634,855

   Prepayments and other current assets, net of allowance for doubtful accounts


14,781,658


7,641,061

         Total Current Assets 


279,987,244


264,293,147






Property, plant and equipment, net 


80,230,888


73,149,072

Land use rights, net 


11,909,136


8,213,145

 Deposits related to land use rights


12,792,355


13,667,130

Restricted cash and cash deposits, excluding current portion


40,230,250


30,523,674

Equity method investment 


18,221,777


11,349,807

Other non-current assets 


3,475,442


2,585,232

           Total Assets 


446,847,092


403,781,207






LIABILITIES AND STOCKHOLDERS' EQUITY 





Current liabilities 





   Short-term bank loans, including current portion of long-term bank loans


57,902,600


9,822,000

   Accounts payable 


4,829,350


4,445,732

   Due to related parties 


-


7,206,970

   Other payables and accrued expenses 


49,692,757


37,761,593

   Income tax payable 


8,257,133


4,202,405

         Total Current Liabilities 


120,681,840


63,438,700






Long-term bank loans, excluding current portion


40,000,000


30,000,000

Deferred income


2,765,024


3,003,895

Other liabilities 


8,138,498


3,369,003

           Total Liabilities 


171,585,362


99,811,598






Stockholders' Equity 





   Common stock:





par value $0.0001;





100,000,000 shares authorized;





27,865,871 and 27,341,744 shares issued at December 31, 2014 and 2013, respectively;





24,806,167 and 25,862,040 shares outstanding at December 31, 2014 and 2013, respectively


2,787


2,734

   Additional paid-in capital 


24,008,281


72,031,864

   Treasury stock: 3,059,704 and 1,479,704 shares at December 31, 2014 and 2013,
   respectively, at cost


(76,570,621)


(29,594,080)






   Retained earnings


244,661,391


173,744,551

   Accumulated other comprehensive income 


19,985,189


21,506,494

   Total equity attributable to China Biologic Products, Inc. 


212,087,027


237,691,563






   Noncontrolling interest 


63,174,703


66,278,046






           Total Stockholders' Equity 


275,261,730


303,969,609






   Commitments and contingencies 


-


-






           Total Liabilities and Stockholders' Equity 


446,847,092


403,781,207

 

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME










For the Years Ended 



December 31, 


December 31, 


December 31, 



2014


2013


2012



USD


USD


USD

Sales


243,251,658


203,356,856


184,813,495

Cost of sales


80,025,375


65,484,153


58,835,998

Gross profit 


163,226,283


137,872,703


125,977,497








Operating expenses 







       Selling expenses


10,707,409


10,643,149


14,421,258

       General and administrative expenses 


32,129,985


36,073,871


34,034,360

       Research and development expenses 


4,161,901


4,223,165


3,032,719

       Provision for other receivables in respect of an employee housing development project


5,068,075


-


-

Income from operations 


111,158,913


86,932,518


74,489,160








Other income (expenses)







       Equity in income of an equity method investee 


8,646,181


2,170,473


2,665,881

       Change in fair value of derivative liabilities 


-


-


1,769,140

       Interest income 


6,644,886


4,433,326


2,910,297

       Interest expense 


(3,697,819)


(1,134,952)


(1,269,850)

       Other income (expense), net 


-


-


570,511

Total other income, net 


11,593,248


5,468,847


6,645,979








Earnings before income tax expense 


122,752,161


92,401,365


81,135,139








Income tax expense 


26,639,527


15,540,301


15,163,147








Net income 


96,112,634


76,861,064


65,971,992








Less: Net income attributable to noncontrolling interest 


25,195,794


22,259,513


20,749,803








Net income attributable to China Biologic Products, Inc. 


70,916,840


54,601,551


45,222,189








Net income per share of common stock: 







       Basic 


2.85


2.05


1.73

       Diluted 


2.71


1.96


1.62

Weighted average shares used in computation: 







       Basic 


24,427,196


26,410,819


26,153,540

       Diluted 


25,685,064


27,572,111


26,839,723








Net income 


96,112,634


76,861,064


65,971,992








Other comprehensive income:







Foreign currency translation adjustment, net of nil income taxes 


(1,918,715)


9,126,218


1,735,492








Comprehensive income 


94,193,919


85,987,282


67,707,484








Less: Comprehensive income attributable to noncontrolling interest 


24,798,384


23,951,559


21,163,655








Comprehensive income attributable to China Biologic Products, Inc. 


69,395,535


62,035,723


46,543,829

 

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS










For the Years Ended 



December 31, 


December 31, 


December 31, 



2014


2013


2012



USD


USD


USD

CASH FLOWS FROM OPERATING ACTIVITIES: 







   Net income 


96,112,634


76,861,064


65,971,992

   Adjustments to reconcile net income to net cash provided by operating activities: 







               Depreciation 


6,989,222


6,096,650


5,792,418

               Amortization


758,232


1,365,734


3,088,320

               Loss (gain) on sale of property, plant and equipment


172,032


(123,777)


828,296

               (Reversal of) provision for allowance for doubtful accounts, net – accounts receivable


(24,462)


31,567


(1,904)

               Allowance for doubtful accounts - other receivables and prepayments


5,068,075


65,094


110,123

               Write-down of obsolete inventories 


324,584


-


-

               Deferred tax expense 


3,483,890


112,632


1,127,433

               Share-based compensation 


5,396,271


5,050,796


4,544,927

               Change in fair value of derivative liabilities 


-


-


(1,769,140)

               Equity in income of an equity method investee 


(8,646,181)


(2,170,473)


(2,665,881)

               Excess tax benefits from share-based compensation arrangements


(1,611,399)


-


-

   Change in operating assets and liabilities: 







               Accounts receivable 


(2,191,118)


(5,667,386)


5,689,638

               Prepayment and other current assets 


(9,236,125)


(624,159)


(268,498)

               Inventories 


(13,418,971)


(10,432,492)


(3,750,200)

               Accounts payable 


405,071


1,621,917


(2,184,674)

               Other payables and accrued expenses 


4,525,635


2,496,390


(5,244,915)

               Due to related parties 


(276,984)


66,349


734,037

               Income tax payable 


5,683,912


(446,911)


(904,655)

 Net cash provided by operating activities 


93,514,318


74,302,995


71,097,317








 CASH FLOWS FROM INVESTING ACTIVITIES:







   Payment for property, plant and equipment 


(17,194,201)


(20,492,159)


(13,886,045)

   Payment for intangible assets and land use rights 


(4,677,358)


(1,327,148)


(14,059,397)

   Refund of deposits related to land use right


1,635,200


2,100,150


-

   Dividends received 


-


565,425


1,109,115

   Purchase of time deposit


-


(6,608,612)


-

   Proceeds upon maturity of time deposit


6,608,612


-


-

   Proceeds from sale of property, plant and equipment


220,135


194,749


83,134

Net cash used in investing activities 


(13,407,612)


(25,567,595)


(26,753,193)








CASH FLOWS FROM FINANCING ACTIVITIES: 







   Proceeds from stock option exercised 


3,860,401


5,394,070


727,317

   Proceeds from warrants exercised 


-


-


4,500,000

   Payment for share repurchase


(70,000,000)


(29,594,080)


-

   Proceeds from short-term bank loans 


44,500,340


9,693,000


11,076,100

   Repayment of short-term bank loans 


(22,833,400)


(8,014,000)


(14,286,800)

   Proceeds from long-term bank loans 


70,000,000


30,000,000


-

   Repayment of long-term bank loans


(33,700,000)


-


-

   Payment for cash deposit as security for long-term bank loans 


(72,290,922)


(30,000,000)


-

   Payment for cash deposit as security for short-term bank loan


(31,881,083)


-


-

   Proceeds from maturity of cash deposit as security for long-term bank loan   


30,370,670


-


-

   Net proceeds from reissuance of treasury stock


33,212,518


-


-

   Acquisition of noncontrolling interest


(86,830,499)


(1,963,913)


-

   Excess tax benefits from share-based compensation arrangements


1,611,399


-


-

   Dividend paid by subsidiaries to noncontrolling interest shareholders


(8,846,984)


(16,931,149)


(7,120,693)

   Contribution from noncontrolling interest shareholders


-


2,891,422


-

 Net cash used in financing activities 


(142,827,560)


(38,524,650)


(5,104,076)








EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH 


(597,409)


4,318,420


957,434








NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS


(63,318,263)


14,529,170


40,197,482








Cash and cash equivalents at beginning of year 


144,138,487


129,609,317


89,411,835








Cash and cash equivalents at end of year 


80,820,224


144,138,487


129,609,317








Supplemental cash flow information 







   Cash paid for income taxes 


17,652,514


15,947,939


14,940,369

   Cash paid for interest expense 


3,150,381


347,602


446,381

   Noncash investing and financing activities: 







          Transfer from prepayments and deposits to property, plant and equipment 


1,433,376


7,728,824


38,452

          Land use right acquired with prepayments made in prior periods 


-


1,147,561


-

          Acquisition of property, plant and equipment included in payables 


3,300,284


4,252,428


104,300

          Exercise of warrants that were liability classified 


-


-


3,641,279

          Restricted cash spent for property, plant and equipment


-


2,928,421


-

 

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 










For the Three Months Ended




December 31, 


December 31, 




2014


2013




USD


USD

Adjusted Net Income Attributable to the Company - Non GAAP


14,723,811


9,623,074

Diluted EPS - Non GAAP


0.56


0.35

Non-cash employee stock compensation


(1,865,663)


(795,332)

Net Income Attributable to the Company


12,858,148


8,827,742

Weighted average number of shares used in computation of Non GAAP diluted EPS


25,949,267


26,910,788










For the Years Ended




December 31, 


December 31, 




2014


2013




USD


USD

Adjusted Net Income Attributable to the Company - Non GAAP


75,555,173


58,974,178

Diluted EPS - Non GAAP


2.89


2.12

Non-cash employee stock compensation


(4,638,333)


(4,372,627)

Net Income Attributable to the Company


70,916,840


54,601,551

Weighted average number of shares used in computation of Non GAAP diluted EPS


25,685,064


27,572,111

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-biologic-reports-financial-results-for-the-fourth-quarter-and-fiscal-year-2014-300045220.html

SOURCE China Biologic Products, Inc.


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