BEIJING, Nov. 13, 2019 /PRNewswire/ -- China Biologic
Products Holdings, Inc. (NASDAQ: CBPO, "China Biologic" or the
"Company"), a leading fully integrated plasma-based
biopharmaceutical company in China, today announced its unaudited financial
results for the third quarter of 2019.
Third Quarter 2019 Financial Highlights
- Total sales in the third quarter of 2019 increased by
17.5% in RMB terms and 14.3% in USD terms to $136.1 million from $119.1
million in the same quarter of 2018.
- Gross profit increased by 9.1% to $88.6 million from $81.2
million in the same quarter of 2018. Gross margin
decreased to 65.1% from 68.2% in the same quarter of 2018.
- Income from operations increased by 84.7% to
$53.0 million from $28.7 million in the same quarter of 2018.
Operating margin increased to 38.9% from 24.1% in the same
quarter of 2018.
- Non-GAAP adjusted income from operations increased by
64.1% in RMB terms and 59.7% in USD terms to $61.5 million from $38.5
million in the same quarter of 2018.
- Net income attributable to the Company
increased by 42.9% to $47.0 million
from $32.9 million in the same
quarter of 2018. Diluted net earnings per share increased to
$1.21 compared to $0.94 in the same quarter of 2018.
- Non-GAAP adjusted net income attributable to the Company
increased by 66.0% in RMB terms and 61.4% in USD terms to
$54.4 million from $33.7 million in the same quarter of 2018.
Non-GAAP adjusted net earnings per diluted
share increased to $1.40 from
$0.96 in the same quarter of
2018.
NOTE: Detailed financial statements
and information are available through this link: https://photos.prnasia.com/prnk/20191113/2641257-1
"We were pleased to achieve another quarter of strong financial
results, driven primarily by the higher-than-expected IVIG sales in
the distributor channel following the successful reorganization of
our sales and marketing team," said Joseph
Chow, Chairman and CEO of China Biologic. "Looking into the
fourth quarter and beyond, our new sales and marketing talent will
be dedicated to the further pursuit of medical marketing strategies
to enhance doctors' awareness about the benefits of IVIG, PCC, and
other coagulation factor products in treating chronic diseases. As
a result of stronger than expected albumin sales for the first nine
months of the year combined with this quarter's rebound in IVIG
sales, we are raising guidance for the full year 2019."
Financial Outlook
For the full year of 2019, the Company is raising its full year
forecast of growth of non-GAAP adjusted income from operations to
11% to 13% from 4% to 6% and non-GAAP adjusted net income growth to
16% to 18% from 4% to 6% in RMB terms over the Company's full year
2018 financial results. The raising of guidance was primarily due
to the combined effect of stronger than expected albumin sales for
the first nine months of the year, a rebound in IVIG sales in the
third quarter, and higher than anticipated interest income for the
full year.
This guidance does not factor in any potential foreign currency
translation impact. Having previously adopted an exchange rate of
approximately RMB6.59 = $1.00 based on weighted average quarterly
exchange rates in 2018 in translating 2018 financial results, the
Company expects that the total sales and non-GAAP adjusted net
income in USD terms in 2019 could be affected by the foreign
currency translation impact.
This guidance excludes potential acquisitions, and necessarily
assumes no significant adverse product price changes during 2019.
This forecast reflects the Company's current and preliminary views,
which are subject to change.
Conference Call
The Company will host a conference call at 7:30 am Eastern Time on Thursday, November 14,
2019, which is 8:30 pm Beijing Time
on November 14, 2019, to discuss its
third quarter 2019 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
|
Mainland
China:
|
400 120
1203
|
A telephone replay will be available one hour after the
conclusion of the conference all through November 21, 2019. The dial-in details are:
US:
|
1 877 344
7529
|
International:
|
1 412 317
0088
|
Passcode:
|
10136730
|
A live and archived webcast of the conference call will be
available through the Company's investor relations website at
http://chinabiologic.investorroom.com.
About China Biologic Products Holdings, Inc.
China Biologic Products Holdings, Inc. (NASDAQ: CBPO) is a
leading fully integrated plasma-based biopharmaceutical company in
China. The Company's products are
used as critical therapies during medical emergencies and for the
prevention and treatment of life-threatening diseases and
immune-deficiency related diseases. China Biologic is headquartered
in Beijing and manufactures over
20 different dosage forms of plasma products through its indirect
majority-owned subsidiary, Shandong Taibang Biological Products
Co., Ltd. and its wholly owned subsidiary, Guizhou Taibang
Biological Products Co., Ltd. The Company also has an equity
investment in Xi'an Huitian Blood Products Co., Ltd. Since the
acquisition of TianXinFu (Beijing)
Medical Appliance Co., Ltd. in 2018, China Biologic is also engaged
in the sale of medical devices, primarily regenerative medical
biomaterial products. The Company sells its products to hospitals,
distributors and other healthcare facilities in China. For additional information, please see
the Company's website www.chinabiologic.com.
Contact:
China Biologic Products Holdings, Inc.
Mr. Ming Yin
Senior Vice President
Email: ir@chinabiologic.com
The Foote Group
Mr. Philip Lisio
Phone: +86-135-0116-6560
Email: phil@thefootegroup.com
Non-GAAP Disclosure
This news release contains non-GAAP financial measures that
exclude non-cash compensation expenses related to restricted shares
and restricted share units granted to employees and directors under
the Company's Equity Incentive Plans and amortization of acquired
intangible assets and land use rights. To supplement the Company's
unaudited consolidated financial statements presented on a GAAP
basis, the Company has provided non-GAAP financial information
excluding the impact of these items in this release. The Company's
management believes that its presentation of non-GAAP financial
measures provides useful supplementary information to and
facilitates additional analysis by investors. A reconciliation of
the adjustments to GAAP results appears in the table accompanying
the detailed financial statements and information available through
the link in the notes of this news release. This additional
non-GAAP information is not meant to be considered in isolation or
as a substitute for GAAP financials. The non-GAAP financial
information that the Company provides also may differ from the
non-GAAP information provided by other companies.
In addition, as the Company evaluates certain key items of its
financial results on a local currency basis (i.e., in RMB) in
addition to the reporting currency (i.e., in USD), this news
release contains local currency information that eliminates the
impact of fluctuations in foreign currency exchange rates. The
Company believes that, given its operations primarily based in
China, providing local currency
information on such key items enhances the understanding of its
financial results and evaluation of performance in comparison to
prior periods. Changes in local currency percentages are calculated
by comparing financial results denominated in RMB from period to
period.
Safe Harbor Statement
This news release may contain certain "forward-looking
statements" relating to the business of China Biologic Products
Holdings, Inc. and its subsidiaries. All statements, other than
statements of historical fact included herein, are "forward-looking
statements." These forward-looking statements are often identified
by the use of forward-looking terminology such as "intend,"
"believe," "expect," "are expected to," "will," or similar
expressions, and involve known and unknown risks and uncertainties.
Among other things, the management's quotations and forecast of the
Company's financial performance in this news release contain
forward-looking statements. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they involve assumptions, risks, and uncertainties, and
these expectations may prove to be incorrect.
Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release. The Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including, without limitation,
quality of purchased source plasma, potential delay or failure to
complete construction of new collection facilities, potential
inability to pass government inspection and certification process
for existing and new facilities, potential inability to achieve the
designed collection capacities at the new collection facilities,
potential inability to achieve the expected operating and financial
performance, potential inability to find alternative sources of
plasma, potential inability to increase production at permitted
sites, potential inability to mitigate the financial consequences
of a temporarily reduced raw plasma supply through cost cutting or
other efficiencies, and potential additional regulatory
restrictions on its operations and those additional risks and
uncertainties discussed in the Company's periodic reports that are
filed with the Securities and Exchange Commission and available on
its website (http://www.sec.gov). All forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these factors. Other than
as required under the securities laws, the Company does not assume
a duty to update these forward-looking statements.
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SOURCE China Biologic Products Holdings, Inc.