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China Biologic Reports Financial Results for the Fourth Quarter and Fiscal Year 2013

  China Biologic Reports Financial Results for the Fourth Quarter and Fiscal
                                  Year 2013

-- FY13 Total Sales Up 10.0% to $203.4 Million --

-- FY13 Operating Margin Up 240 Basis Points to 42.7% --

-- FY13 Non-GAAP Net Income Up 22.9% to $59.0 Million --

-- Issues FY14 Forecast --

PR Newswire

BEIJING, March 12, 2014

BEIJING, March 12, 2014 /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 2013.

Fourth Quarter 2013 Financial Highlights

  oTotal sales in the fourth quarter of 2013 increased by 25.3% to $42.6
    million from $34.0 million in the same quarter of 2012.
  oGross profit increased by 12.9% to $27.0 million from $23.9 million in the
    same quarter of 2012. Gross margin fell to 63.4% in the fourth quarter of
    2013, from 70.4% in the fourth quarter of 2012 primarily due to certain
    non-recurring, higher-than-usual plasma costs for a portion of the
    products sold in the quarter.
  oIncome from  operations decreased by 10.4% to $12.5 million from $13.9
    million in the same quarter of 2012. Operating margin decreased to 29.3%
    in the fourth quarter of 2013 from 41.0% in the same quarter of 2012
    mainly due to higher selling expenses resulting from increased Placenta
    Polypeptide product shipments.
  oNet income attributable to the Company increased by 52.0% to $8.8 million
    from $5.8 million in the same quarter of 2012. Fully diluted net income
    per share was $0.32 in the fourth quarter of 2013 as compared to $0.21 in
    the same quarter of 2012.
  oNon-GAAP adjusted net income attributable to the Company was $9.6 million,
    representing a 32.2% increase from $7.3 million in the same quarter of
    2012. Non-GAAP adjusted net income per share was $0.35, compared to $0.27
    in the same quarter of 2012.

Fiscal Year 2013 Financial Highlights

  oTotal sales in 2013 increased by 10.0% to $203.4 million from $184.8
    million in 2012.
  oGross profit in 2013 increased by 9.4% to $137.9 million from $126.0
    million in 2012. Gross margin remained relatively stable at 67.8% and
    68.2% in 2013 and 2012, respectively.
  oIncome from operations in 2013 increased by 16.7% to $86.9 million from
    $74.5 million in 2012. Operating margin increased to 42.7% in 2013 from
    40.3% in 2012.
  oNet income attributable to the Company increased by 20.7% to $54.6 million
    from $45.2 million in 2012. Fully diluted net income per share was $1.96
    in 2013 as compared to $1.62 in 2012.
  oNon-GAAP adjusted net income attributable to the Company was $59.0
    million, representing a 22.9% increase from $48.0 million in 2012.
    Non-GAAP adjusted net income per share was $2.12, compared to $1.79 in
    2012.

Mr. David (Xiaoying) Gao, Chairman and Chief Executive Officer of China
Biologic, commented, "We are proud of the material increase to our
year-over-year sales and net income results in spite of a temporary production
suspension for GMP renewal at our Guizhou facility midway through the year and
from a challenging comparison to strong 2012 financial results. Our steady
growth was supported by rising market demand, favorable product pricing,
stringent cost control measures, and most importantly, the expansion of our
product portfolio and transition to a more profitable product mix. In 2013, we
experienced a 16% increase in our plasma collection volume, mostly through
organic growth at existing centers. In addition we added one new plasma
collection center in Cao County and enlarged collection territory at two
collection centers of our Guizhou subsidiary. During the year, we also
improved our plasma utilization efficiency following the launch of our Factor
VIII products. We are particularly pleased to have amassed a market share of
19% in China's Factor VIII market during the first year of its launch."

"In 2013, we accomplished a primary corporate goal of full compliance with
Good Manufacturing Practice ("GMP") standards at our various facilities.
Through our efforts, our Shandong Taibang facility obtained the renewal of its
GMP certification for plasma production in June 2013, while our Guizhou
Taibang facility completed its GMP upgrade in January 2014. Moreover, in
January 2014, we received GMP certification for the Placenta Polypeptide
production facility at Guizhou. We are expecting to receive GMP certification
and resume production in the second quarter as planned for our plasma
production facility. As such, we expect higher growth with more products
available for sales starting in the third quarter this year. We are confident
that, with these upgrades, we can enhance our operating efficiency to meet
growing market demand moving forward."

Mr. Gao continued, "In an effort to expand our product portfolio and increase
profitability, we continue to make progress in several important areas during
2013 that can contribute to our 2014 financial performance. We obtained SFDA
approval to manufacture Human Prothrombin Complex Concentrate ("PCC") at our
Guizhou Taibang facility and also received SFDA manufacturing approval for a
new dosage of FVIII (300IU), further reinforcing our industry leadership. We
also initiated phase III clinical trials for Human Fibrinogen."

"We continue our efforts to enhance our shareholding structure and increase
shareholder value. During the last three quarters, we closed two share
repurchase transactions, where we repurchased an aggregate 3.98 million shares
of common stock for a total consideration of $99.6 million. The repurchased
shares represent approximately 14.76% of the total common stock outstanding in
early August prior to the first share repurchase."

Mr. Gao concluded, "Looking into 2014, we are confident that we can further
capitalize on growing demand for our products and achieve greater levels of
revenue growth. We anticipate our plasma collection volume will continue to
rise in both Shandong and Guizhou. We also see great opportunity to further
penetrate sales of IVIG and higher-margin hyper-immune products in certain
markets and increase our production and sales of Placenta Polypeptide
products. We expect to strengthen our market leadership in human coagulation
products, including FVIII, and introduce PCC to the market in 2014. With the
strength of our current product portfolio and planned growth initiatives, we
believe 2014 will be another promising year for our company."

Fourth Quarter 2013 Financial Performance

Total sales in the fourth quarter of 2013 were $42.6 million, representing an
increase of 25.3% from $34.0 million in the same quarter of 2012. The increase
was mainly due to the substantial increase in albumin sales in Shandong and
increased sales from Placenta Polypeptide in Guizhou.

Cost of sales increased by 54.7% to $15.6 million from $10.1 million in the
same quarter of 2012. Cost of sales as a percent of total sales was 36.6%,
compared to 29.6% in 2012. Volume and percentage increases in cost of sales
were mainly caused by a portion of products sold during the quarter with
higher-than-usual plasma cost resulting from certain non-recurring charges.

Total operating expenses in the fourth quarter of 2013 increased by 45.4% to
$14.5 million from $10.0 million in 2012. As a percentage of total sales,
total operating expenses increased to 34.1% from 29.4% in 2012. Volume and
percentage increases in total operating expenses were mainly due to higher
selling expenses resulting from increased Placenta Polypeptide product
shipments.

Income from operations decreased by 10.4% to $12.5 million from $13.9 million
in the same quarter of 2012 for the reasons states above. Operating margin
decreased to 29.3 % in the fourth quarter of 2013 from 41.0% in the same
quarter of 2012.

Net income attributable to the Company increased by 52.0% to $8.8 million from
$5.8 million in the same quarter of 2012. Fully diluted net income per share
was $0.32 in the fourth quarter of 2013 compared to $0.21 in the same quarter
of 2012.

Non-GAAP adjusted net income attributable to the Company was $9.6 million, or
$0.35 per diluted share, in the fourth quarter of 2013, representing a 32.2%
increase from $7.3 million, or $0.27 per diluted share, in the fourth quarter
of 2012.

Fiscal Year 2013 Financial Performances

Total sales in 2013 were $203.4 million, an increase of 10.0% from $184.8
million in 2012. Excluding foreign exchange influence, the increase in sales
was primarily attributable to a mix of price and volume increases in certain
plasma based products.

During 2013, human albumin products and IVIG products remained the largest two
sales contributors. The average price for human albumin products increased by
approximately 10.1%, mainly due to the increase of retail price ceiling
announced by NDRC at the beginning of 2013, which allowed the Company to
increase ex-factory prices in certain regional markets. The average price for
IVIG products remained relatively stable in 2013 as compared to 2012.

As a percentage of total sales, revenue from human albumin products was 44.1%
in 2013 as compared to 44.6% in 2012. Sales volume for human albumin products
decreased slightly by 1.2% in 2013, primarily due to the production suspension
for GMP renewal in Guizhou Taibang starting from June 2013.

As a percentage of total sales, revenue from IVIG products was 38.0% in 2013
as compared to 39.0% in 2012. Sales volume for IVIG products increased by 6.0%
in 2013, as a result of the Company's efforts to engage new distributors to
promote IVIG sales in certain tier-one cities.

For the year ended December 31, 2013, the sales increase of other products was
mainly attributable to the newly-launched human coagulation factor VIII
(200IU) in Shandong Taibang, which accounted for 2.1% of total sales in 2013.

Cost of sales increased by 11.3% to $65.5 million in 2013 from $58.8 million
in 2012. Cost of sales as a percentage of total sales was 32.2%, as compared
to 31.8% in 2012. Volume and percentage increases in cost of sales were mainly
due to increased sales activities and increased raw plasma collection costs
resulting from higher compensation paid to plasma donors.

Gross profit increased by 9.4% to $137.9 million in 2013 from $126.0 million
in 2012. Gross margin remained relatively stable at 67.8% and 68.2% in 2013
and 2012, respectively.

Total operating expenses in 2013 decreased slightly by 1.1% to $50.9 million
from $51.5 million in 2012. As a percentage of total sales, total operating
expenses decreased to 25.0% from 27.9% in 2012.

Selling expenses in 2013 decreased by 26.2% to $10.6 million from $14.4
million in 2012. As a percentage of total sales, selling expenses were 5.2%,
down from 7.8% in 2012. The decrease was primarily due to the increased direct
sales to the hospitals since the second half of 2012.

General and administrative expenses in 2013 increased by 6.0% to $36.1 million
from $34.0 million in 2012. The increase in general and administrative
expenses was mainly due to an increase in expenses related to payroll and
employee benefits as a result of general salary increases, and an increase in
non-recurring legal expenses. As a percentage of total sales, general and
administrative expenses were 17.7% and 18.4% in 2013 and 2012, respectively.

Research and development expenses in 2013 were $4.2 million, representing an
increase of 39.3% from $3.0 million in 2012. As a percentage of total sales,
research and development expenses for the years ended December 31, 2013 and
2012 were 2.1% and 1.6%, respectively. The increase in research and
development expenses was primarily due to the engagement of external expertise
to improve production yields on certain hyper-immune products during the year
ended December 31, 2013. In addition, China Biologic started the clinical
trial program on human fibrinogen in 2013.

Income from operations in 2013 was $86.9 million, representing an increase of
16.7% from $74.5 million in 2012. Operating margin increased to 42.7% in 2013
from 40.3% in 2012.

Income tax expense in 2013 was $15.5 million, as compared to $15.2 million in
2012. The effective income tax rates were 16.8% and 18.7% for the years ended
December 31, 2013 and 2012, respectively.

Net income attributable to the Company increased by 20.7% to $54.6 million in
2013, from $45.2 million in 2012. Net margins were 26.9% and 24.5% for the
years ended December 31, 2013 and 2012, respectively. Fully diluted net income
per share was $1.96, as compared to $1.62 in 2012.

Non-GAAP adjusted net income attributable to the Company was $59.0 million or
$2.12 per diluted share in 2013, compared to $48.0 million or $1.79 per
diluted share in 2012.

Non-GAAP adjusted net income and diluted earnings per share in 2013 excluded
$4.4 million of non-cash employee share-based compensation expenses.

As of December 31, 2013, the Company had cash and cash equivalents of $144.1
million, compared to $129.6 million as of December 31, 2012.

Net cash provided by operating activities for the year ended December 31, 2013
was $74.3 million, as compared to $71.1 million for the same period of 2012.
The increase in inventory for the years ended December 31, 2013 and 2012 were
$10.4 million and $3.8 million, respectively. The increase in inventories was
mainly due to increase of raw materials due to the continued supply of plasma
by plasma stations of Guizhou Taibang during the production suspension for GMP
renewal. The increase in accounts receivable was $5.7 million, largely in line
with sales expansion in 2013. Accounts receivable turnover days decreased
slightly from 28 days in 2012 to 26 days in 2013.

Net cash used in investing activities for the twelve months ended December 31,
2013 was $25.6 million compared to $26.8 million in the prior year period.

Net cash used in financing activities for the year ended December 31, 2013 was
$38.5 million compared to $5.1 million in the prior year period. Net cash used
in financing activities in 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, partially offset by
proceeds of $5.4 million from the exercise of the stock options and
contribution of $2.9 million from a non-controlling interest shareholder.

Outlook

For the full year of 2014, the Company expects total sales to be in the range
of $230million to $240 million. This guidance assumes only organic growth and
excludes acquisitions and necessarily assumes no significant adverse price
changes during 2014. The Company estimates full year non-GAAP adjusted net
income to be in the range of $67 million to $69 million.

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 8:00 am, Eastern Time on Thursday,
March 13, 2014, which is 8:00 pm, Beijing Time on March 13, 2014, to discuss
fourth quarter and fiscal year 2013 results and answer questions from
investors. Listeners may access the call by dialing:

US:            +1-866-652-5200
International: +1-412-317-6060
Hong Kong:     800-905-945
China:         400-120-1203
Passcode:      10042209

A telephone replay will be available one hour after the conclusion of the
conference all through 9:00 am, Eastern Time on March 20, 2014. The dial-in
details are:

US:            +1-877-344-7529
International: +1-412-317-0088
Passcode:      10042209

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
plasma-based products through its indirect majority-owned subsidiaries,
Shandong Taibang Biological Products Co., Ltd. and Guiyang Dalin Biologic
Technologies 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 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 and
changes in the fair value of warrants. 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 "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 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 its
potential inability to achieve the expected operating and financial
performance in 2013, 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
Vice President
Phone: +86-10-6598-3099
E-mail: 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.

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                                     For the Years Ended
                                                                     December31,  December31,  December31,
                                                                     2013           2012           2011
                                                                     USD            USD            USD
Sales                                                                203,356,856    184,813,495    153,092,289
Cost of sales                                                        65,484,153     58,835,998     46,017,661
Gross profit                                                        137,872,703    125,977,497    107,074,628
Operating expenses
 Selling expenses                                              10,643,149     14,421,258     14,595,794
 General and administrative expenses                          36,073,871     34,034,360     31,519,824
 Research and development expenses                            4,223,165      3,032,719      3,978,233
 Impairment loss of goodwill                                  -              -              18,160,281
 Loss on abandonment and write-off of long-lived assets       -              -              6,603,028
Income from operations                                              86,932,518     74,489,160     32,217,468
Other income (expenses)
 Equity in income of an equity method investee                2,170,473      2,665,881      1,858,171
 Change in fair value of derivative liabilities               -              1,769,140      11,974,834
 Interest income                                              4,433,326      2,910,297      1,356,950
 Interest expense                                             (1,134,952)    (1,269,850)    (4,670,606)
 Other income (expense), net                                  -              570,511        (453,949)
Total other income, net                                             5,468,847      6,645,979      10,065,400
Earnings before income tax expense                                  92,401,365     81,135,139     42,282,868
Income tax expense                                                  15,540,301     15,163,147     10,899,513
Net income                                                          76,861,064     65,971,992     31,383,355
Less: Net income attributable to noncontrolling interest            22,259,513     20,749,803     13,201,645
Net income attributable to China Biologic Products, Inc.            54,601,551     45,222,189     18,181,710
Net income per share of common stock:
 Basic                                                        2.05           1.73           0.73
 Diluted                                                      1.96           1.62           0.37
Weighted average shares used in computation:
 Basic                                                        26,410,819     26,153,540     25,028,796
 Diluted                                                      27,572,111     26,839,723     26,654,662
Net income                                                          76,861,064     65,971,992     31,383,355
Other comprehensive income:
Foreign currency translation adjustment, net of nil income taxes    9,126,218      1,735,492      6,846,721
Comprehensive income                                                85,987,282     67,707,484     38,230,076
Less:Comprehensiveincomeattributabletononcontrollinginterest  23,951,559     21,163,655     15,320,805
ComprehensiveincomeattributabletoChinaBiologicProducts,Inc.  62,035,723     46,543,829     22,909,271



CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
                                                                  December      December
                                                                  31,          31,
                                                                  2013          2012
                                                                  USD           USD
ASSETS
Current Assets
 Cash and cash equivalents                                      144,138,487   129,609,317
 Time deposit                                                   6,608,612     -
 Accounts receivable, net of allowance for doubtful accounts   17,270,132    11,206,244
 Inventories                                                   88,634,855    75,679,173
 Prepayments and other current assets                           7,641,061     5,664,919
 Total Current Assets                                    264,293,147   222,159,653
Property, plant and equipment, net                               73,149,072    51,325,177
Intangible assets, net                                           2,585,232     3,541,582
Land use rights, net                                             8,213,145     5,818,709
Deposits related to land use rights                               13,667,130    14,752,574
Restricted cash and deposit                                       30,523,674    2,912,145
Equity method investment                                         11,349,807    10,537,310
Total Assets                                            403,781,207   311,047,150
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
 Short-term bank loans                                         9,822,000     7,935,000
 Accounts payable                                              4,445,732     2,908,624
 Due to related parties                                        7,206,970     4,081,624
 Other payables and accrued expenses                           34,852,740    25,423,349
 Advance from customers                                        2,908,853     2,857,420
 Income tax payable                                            4,202,405     4,513,075
 Total Current Liabilities                               63,438,700    47,719,092
Long-term bank loans                                              30,000,000    -
Deferred income                                                   3,003,895     2,912,145
Other liabilities                                                3,369,003     2,996,749
 Total Liabilities                                       99,811,598    53,627,986
Stockholders' Equity
 Common stock:
par value $0.0001;
100,000,000 shares authorized;
27,341,744and26,629,615sharesissuedatDecember31,2013and
2012, respectively;
25,862,040and26,629,615sharesoutstandingatDecember
31,2013                                                          2,734         2,663
and 2012, respectively
 Additional paid-in capital                                    72,031,864    62,251,731
 Treasury stock: 1,479,704 and nil shares at December 31, 2013
and 2012,                                                         (29,594,080)  -
 respectively, at cost
 Retained earnings                                              173,744,551   119,143,000
 Accumulated other comprehensive income                        21,506,494    14,072,322
 Total equity attributable to China Biologic Products, Inc.    237,691,563   195,469,716
 Noncontrolling interest                                       66,278,046    61,949,448
 Total Stockholders' Equity                              303,969,609   257,419,164
 Commitments and contingencies                                 -             -
 Total Liabilities and Stockholders' Equity              403,781,207   311,047,150



CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                        For the Years Ended
                                                                                        December31,  December31,  December31,
                                                                                        2013           2012           2011
                                                                                        USD            USD            USD
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                                                                          76,861,064     65,971,992     31,383,355

Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:
 Depreciation                                                            6,096,650      5,792,418      4,253,661
 Amortization                                                             1,365,734      3,088,320      3,394,808
 (Gain) loss on sale of property, plant and equipment                     (123,777)      828,296        166,934
 Impairment loss of goodwill                                             -              -              18,160,281
 Loss on abandonment and write-off of long-lived assets                  -              -              6,603,028
 Provision for (reversal of) allowance for doubtful accounts, net        31,567         (1,904)        (19,611)
 Provision for(reversalof)doubtfulaccounts- other receivables and    65,094         110,123        (10,254)
prepayments
 Write-down of obsolete inventories                                      -              -              270,929
 Deferred tax expense (benefit)                                          112,632        1,127,433      (2,595,103)
 Share-based compensation                                                5,050,796      4,544,927      4,896,232
 Change in fair value of derivative liabilities                          -              (1,769,140)    (11,974,834)
 Amortization of deferred note issuance cost                             -              -              91,945
 Amortization of discount on convertible notes                           -              -              3,503,767
 Equity in income of an equity method investee                           (2,170,473)    (2,665,881)    (1,858,171)
Change in operating assets and liabilities:
 Accounts receivable                                                     (5,667,386)    5,689,638      (6,126,742)
 Prepayment and other current assets                                     (624,159)      (268,498)      (711,740)
 Inventories                                                             (10,432,492)   (3,750,200)    (17,079,263)
 Accounts payable                                                        1,621,917      (2,184,674)    431,836
 Other payables and accrued expenses                                     2,534,476      (3,210,777)    6,061,066
 Advance from customers                                                  (38,086)       (2,034,138)    1,140,386
 Due to related parties                                                  66,349         734,037        -
 Income tax payable                                                      (446,911)      (904,655)      (1,512,591)
Net cash provided by operating activities                                             74,302,995     71,097,317     38,469,919
CASH FLOWS FROM INVESTING ACTIVITIES:
 Payment for property, plant and equipment                                           (20,492,159)   (13,886,045)   (7,968,870)
 Payment for intangible assets and land use rights                                   (1,327,148)    (14,059,397)   (424,971)
 Refund of deposits related to land use right                                         2,100,150      -              -
 Dividends received                                                                  565,425        1,109,115      1,209,880
 Purchase of time deposit                                                             (6,608,612)    -              -
 Proceeds from sale of property, plant and equipment                                  194,749        83,134         56,709
Net cash used in investing activities                                                  (25,567,595)   (26,753,193)   (7,127,252)
CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from stock option exercised                                                5,394,070      727,317        300,000
 Proceeds from warrants exercised                                                    -              4,500,000      -
 Payment for share repurchase                                                         (29,594,080)   -              -
 Proceeds from short-term bank loans                                                 9,693,000      11,076,100     18,595,200
 Repayment of short-term bank loans                                                  (8,014,000)    (14,286,800)   (10,847,200)
 Proceeds from long-term bank loans                                                  30,000,000     -              -
 Payment for deposit as security for long-term bank loans                            (30,000,000)   -              -
 Acquisition of noncontrolling interest                                               (1,963,913)    -              (7,635,000)
 Dividends paid by subsidiaries to noncontrolling interest                            (16,931,149)   (7,120,693)    (10,489,504)
 Contribution from noncontrolling interest                                            2,891,422      -              -
Net cash used in financing activities                                                 (38,524,650)   (5,104,076)    (10,076,504)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH                                        4,318,420      957,434        3,204,304
NET INCREASE IN CASH AND CASH EQUIVALENTS                                               14,529,170     40,197,482     24,470,467
Cash and cash equivalents at beginning of year                                         129,609,317    89,411,835     64,941,368
Cash and cash equivalents at end of year                                               144,138,487    129,609,317    89,411,835
Supplemental cash flow information
 Cash paid for income taxes                                                          15,947,939     14,940,369     15,007,206
 Cash paid for interest expense                                                      347,602        446,381        890,312
 Noncash investing and financing activities:
 Convertible notes conversion                                                 -              -              12,972,000
 Transfer from prepayments and deposits to property, plant and equipment      7,728,824      38,452         959,660
 Land use right acquired with prepayments made in prior periods               1,147,561      -              312,060
 Acquisition of property, plant and equipment included in payables            4,252,428      104,300        83,226
 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
                                                                               December31,  December31,
                                                                               2013           2012
                                                                               USD            USD
Adjusted Net Income Attributable to the Company - Non GAAP                     9,623,074      7,279,757
Diluted EPS - Non GAAP                                                         0.35           0.27
Non-cash employee stock compensation                                           (795,332)      (1,470,795)
Net Income Attributable to the Company                                         8,827,742      5,808,962
WeightedaveragenumberofsharesusedincomputationofNonGAAPdilutedEPS  26,910,788     27,147,351
                                                                               For the Years Ended
                                                                               December 31,  December 31,
                                                                               2013           2012
                                                                               USD            USD
Adjusted Net Income Attributable to the Company - Non GAAP                     58,974,178     47,997,976
Diluted EPS - Non GAAP                                                         2.12           1.79
Non-cash employee stock compensation                                           (4,372,627)    (4,544,927)
Gain from change in fair value of warrants                                     -              1,769,140
Net Income Attributable to the Company                                         54,601,551     45,222,189
Weighted average number of shares used in computation of Non GAAP diluted EPS  27,572,111     26,839,723

SOURCE China Biologic Products, Inc.

Website: http://www.chinabiologic.com
Website: http://chinabiologic.investorroom.com
 
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