2Q12 Revenue was RMB72.9 Million ($11.5
Million)
2Q12 Net Income was RMB10.5 Million ($1.7
Million)
2Q12 Non-GAAP Adjusted Net Income was RMB11.3
Million ($1.8 Million)
Live conference call to be held Thursday, August
23, 2012 at 8:00 am ET
China Nuokang Bio-Pharmaceutical Inc. (Nasdaq:NKBP) ("Nuokang" or
the "Company"), a leading China-based biopharmaceutical company
focused on the research, development, manufacture, marketing and
sales of hospital-based medical products, today announced its
unaudited financial results for the second quarter of 2012.
Mr. Baizhong Xue, the Company's Chairman and Chief Executive
Officer, stated, "We are pleased to announce financial results for
the second quarter of 2012 which demonstrate our continued progress
with our corporate restructuring and profit making. Revenues from
Baquting, our flagship product, rose sequentially by approximately
20% to RMB68.9 million from RMB57.5 million in the first quarter of
2012. Revenues through our sales agent channels remained strong
while direct sales revenue, although less than the second quarter
of 2011, improved from the first quarter of 2012. We are encouraged
by these signs and continue to believe in the potential of our
product portfolio."
Chairman Xue continued, "We remain focused on rebuilding and
strengthening our business across various dimensions. For example,
we continued regaining revenue levels with Baquting, whose
quarter-over-quarter growth indicates that revenues generated by
this product are approaching levels that were achieved prior to the
restructuring. Moving beyond our core product offerings as part of
a diversification strategy, we continued investing in clinical
trials and market education for Kaitong and the Alpha Lipoic Acid
Capsule ("ALA"). The Company is in the process of securing the
required SFDA production permit for ALA. We likewise continued
investing in R&D to support ongoing innovation. I am especially
encouraged to see a sequential rise in net profit, which positively
reflects on the progress the Company is making."
Second Quarter 2012 Financial Highlights
- Revenue was RMB72.9 million ($11.5 million)1, compared to
RMB79.5 million in the prior year period;
- Baquting revenue was RMB68.9 million ($10.8 million), compared
to RMB76.1 million in the prior year period;
- Gross profit was RMB64.2 million ($10.1 million), compared to
RMB70.9 million in the prior year period;
- Gross margin was 88.1%, compared to 89.2% in the prior year
period;
- Operating income was RMB13.2 million ($2.1 million), compared
to RMB21.0 million in the prior year period;
- Net income was RMB10.5 million ($1.7 million), or RMB0.56
($0.09) per diluted ADS2, compared to RMB14.1 million, or RMB0.72
per diluted ADS, in the prior year period; and
- Non-GAAP adjusted net income was RMB11.3 million ($1.8
million), compared to RMB15.7 million in the prior year
period.
Second Quarter 2012 Financial Performance
Revenue for the second quarter of 2012 was RMB72.9 million
($11.5 million), compared to RMB79.5 million in the second quarter
of 2011. Revenue from Baquting decreased to RMB68.9 million ($10.8
million) from RMB76.1 million in the prior year period but
increased sequentially from RMB57.5 million in the first quarter of
2012. This sequential growth reflects the gradual stabilization of
the Company's sales team structure and the team's improving
performance. Baquting revenue as a percentage of total revenue was
94.5% in the second quarter of 2012, compared to 94.2% in the
second quarter of 2011. Revenue from other products was RMB4.0
million ($0.6 million), compared to RMB3.4 million in the prior
year period.
Gross profit for the second quarter of 2012 was RMB64.2 million
($10.1 million), compared to RMB70.9 million in the second quarter
of 2011. Gross margin for the second quarter of 2012 was 88.1%, in
line with 89.2% in the second quarter of 2011.
Operating income for the second quarter of 2012 was RMB13.2
million ($2.1 million), compared to RMB21.0 million in the prior
year period. Although representing a year-on-year decline, this
marks the second consecutive quarter of a sequential increase in
operating income, which continued to be driven by the Company's
focus on strengthening its sales and marketing efforts for both
Baquting and the Company's new products throughout the second
quarter of 2012.
Research and development expenses for the second quarter of 2012
were RMB4.7 million ($0.7 million), compared to RMB3.3 million in
the prior year period. Research and development expenses as a
percentage of revenue was 6.5% for the second quarter of 2012,
within the Company's expected range.
Selling, marketing and distribution expenses for the second
quarter of 2012 were RMB31.8 million ($5.0 million), compared to
RMB36.6 million in the prior year period. Selling, marketing and
distribution expenses for the second quarter of 2012 primarily
consisted of the Company's investment in sales and marketing for
Baquting to preserve market share as well as the Company's
continued investment in the commercialization of Kaitong and ALA.
Selling, marketing and distribution expenses as a percentage of
revenue for the second quarter of 2012 was 43.6%, compared to 46.1%
in the second quarter of 2011.
General and administrative expenses were RMB14.5 million ($2.3
million) compared to RMB9.9 million in the prior year period.
During the second quarter of 2012, expenses relating to the
Company's going-private transaction were RMB3.4 million ($0.5
million).
Provision for income taxes was RMB3.8 million ($0.6 million),
compared to RMB4.8 million in the prior year period, as a result of
decreased income before tax.
Net income was RMB10.5 million ($1.7 million), or RMB0.56
($0.09) per diluted ADS, compared to RMB14.1 million, or RMB0.72
per diluted ADS, in the prior year period.
Non-GAAP adjusted net income, excluding foreign exchange gains
and losses, ESOP-related charges and the ASC 740 adjustment, were
RMB11.3 million ($1.8 million), compared to RMB15.7 million in the
prior year period.
For the second quarter of 2012, the Company had approximately
154.4 million weighted average diluted ordinary shares outstanding,
or 19.3 million weighted average diluted ADSs.
As of June 30, 2012, the Company had cash and cash equivalents
and other short-term investments of RMB236.1 million ($37.2
million), compared to RMB179.4 million as of December 31, 2011.
Six Months Ended June 30, 2012 Financial
Performance
For the six months ended June 30, 2012, revenue decreased 7.5%
to RMB133.2 million ($21.0 million) from RMB144.0 million for the
six months ended June 30, 2011. During this same time period, gross
profit decreased 8.5% to RMB116.4 million ($18.3 million) from
RMB127.1 million and operating income decreased by 64.2% to RMB14.0
million ($2.2 million) from RMB39.0 million.
Net income decreased 55.3% to RMB11.2 million ($1.8 million), or
RMB0.56 ($0.09) per diluted ADS from RMB25.0 million, or RMB1.27
per diluted ADS, for the six months ended June 30, 2011. Weighted
average number of diluted ordinary shares outstanding was
approximately 154.6 million for the six months of 2012, or 19.3
million ADSs.
Non-GAAP Measures
Adjusted net income is presented to better illustrate the
Company's ongoing and core operational results. Adjusted net income
is defined as net income excluding foreign exchange losses, ESOP
related charges and ASC 740 adjustment. Adjusted net income may be
calculated differently, and therefore Nuokang's adjusted net income
may not be comparable to similarly titled measures of other
companies. Adjusted net income is not a measure of financial
performance under U.S. generally accepted accounting principles
(GAAP), and should not be considered in isolation or as an
alternative to net income, cash flows from operating activities and
other measures determined in accordance with GAAP. Items excluded
from adjusted net income are significant and necessary components
to the operations of the Company's business, and, therefore,
adjusted net income should only be used as a supplemental measure
of operating performance.
Conference Call
The Company will hold a conference call at 8:00 a.m. ET on
Thursday, August 23, 2012 to discuss the second quarter 2012
financial results. Listeners may access the call by dialing:
United States toll
free: 1-855-500-8701
China toll
free:
400-1200654 Hong Kong toll free:
800-903737 United Kingdom toll
free:
0800-0159724
International:
65-6723-9385 Conference
ID:
14787970
A telephone replay will become available beginning two hours
after the conclusion of the call and will remain available through
September 6, 2012. Listeners may access the replay by dialing:
United States toll free:
1-866-214-5335
International:
1-718-354-1232 Conference
ID:
14787970
A webcast will also be available through the Company's website
www.nkbp.com.
About China Nuokang Bio-Pharmaceutical Inc.
China Nuokang Bio-Pharmaceutical Inc. (Nasdaq:NKBP) is a leading
biopharmaceutical company in China focused on the research,
development, manufacture, marketing and sales of hospital-based
medical products. The Company provides a diversified portfolio of
products across more than 4,200 hospitals in China. Nuokang's
principal products include Baquting®, China's leading hemocoagulase
product by market share, Kaitong®, a lipid emulsion alprostadil
product for the treatment of peripheral vascular diseases,
cardiocerebral microcirculation disorders and post-surgery
thrombosis; and alpha lipoic acid capsules, or ALA, an antioxidant
product that addresses diabetic neuropathy. The Company's product
pipeline includes product candidates under development in
hematological, cardiovascular and cerebrovascular disease
diagnosis, treatment and prevention. Please visit www.nkbp.com for
more information.
Safe-Harbor Statement
This press release contains statements of a forward-looking
nature. These statements, including the management quotations and
the statements relating to the Company's new product development,
are made under the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including certain plans,
expectations, goals, and projections, which are subject to numerous
assumptions, risks, and uncertainties. These forward-looking
statements may include, but are not limited to, statements
containing words such as "may," "could," "would," "plan,"
"anticipate," "believe," "estimate," "predict," "potential,"
"expects," "intends" and "future" or similar expressions. Among
other things, the statements relating to the Company's expected
progress on the product portfolio and future financial results may
contain forward-looking statements. These forward-looking
statements speak only as of the date of this press release and are
subject to change at any time. These forward-looking statements are
based upon management's current expectations and are subject to a
number of risks, uncertainties and contingencies, many of which are
beyond the Company's control that may cause actual results, levels
of activity, performance or achievements to differ materially from
any future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. The
Company's actual results could differ materially from those
contained in the forward-looking statements due to a number of
factors, including those described under the heading "Risk Factors"
in the Company's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F.
1 This announcement contains translations of certain
Renminbi amounts into US dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to US dollars as of and for the quarter ended June
30, 2012, were made at the noon buying rate of RMB6.3530 to USD1.00
on June 29, 2012 in the City of New York for cable transfers in
Renminbi per US dollar as certified for customs purposes by the
Federal Reserve Bank of New York. China Nuokang Bio-Pharmaceutical
Inc. makes no representation that the Renminbi or US dollar amounts
referred to in this press release could have been or could be
converted into US dollars or Renminbi, at any particular rate or at
all.
2 The Company's American Depositary Shares, which are
traded on the NASDAQ, each of which represents eight ordinary
shares of the Company.
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS
OF INCOME |
FOR THE QUARTERS ENDED
JUNE 30, 2011 AND 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months 2011 |
Six
Months 2012 |
2Q
2011 |
2Q
2012 |
|
(RMB'000) |
(RMB'000) |
(US$'000) |
(RMB'000) |
(RMB'000) |
(US$'000) |
|
|
|
|
|
|
|
Net revenue |
144,006 |
133,190 |
20,965 |
79,487 |
72,905 |
11,476 |
Cost of revenue |
(16,886) |
(16,838) |
(2,650) |
(8,621) |
(8,682) |
(1,367) |
|
|
|
|
|
|
-- |
Gross profit |
127,120 |
116,352 |
18,315 |
70,866 |
64,223 |
10,109 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research and development expenses |
(7,497) |
(7,401) |
(1,165) |
(3,274) |
(4,717) |
(742) |
Selling, marketing and distribution
expenses |
(57,787) |
(67,591) |
(10,639) |
(36,624) |
(31,787) |
(5,003) |
General and administrative expenses |
(22,870) |
(27,404) |
(4,314) |
(9,924) |
(14,510) |
(2,284) |
|
|
|
-- |
|
|
|
Total operating expenses |
(88,154) |
(102,396) |
(16,118) |
(49,822) |
(51,014) |
(8,029) |
|
|
|
|
|
|
|
Operating profit |
38,966 |
13,956 |
2,197 |
21,044 |
13,209 |
2,080 |
Interest income |
612 |
1,605 |
253 |
428 |
1,103 |
174 |
Interest expense |
(2,139) |
(474) |
(75) |
(1,083) |
(232) |
(37) |
Foreign exchange (losses) gain |
(2,896) |
262 |
41 |
(1,535) |
230 |
36 |
Other (loss) income, net |
(97) |
(36) |
(6) |
68 |
(48) |
(8) |
|
|
|
|
|
|
|
Income before income tax expense |
34,446 |
15,313 |
2,410 |
18,922 |
14,262 |
2,245 |
Income tax expense |
(9,403) |
(4,122) |
(649) |
(4,784) |
(3,764) |
(592) |
|
|
|
|
|
|
|
Net income |
25,043 |
11,191 |
1,761 |
14,138 |
10,498 |
1,653 |
|
|
|
|
|
|
|
Net (income) loss attributable to
non-controlling interest |
60 |
(1) |
-- |
33 |
(8) |
(1) |
|
|
|
|
|
|
|
Net income attributed to ordinary
shares |
25,103 |
11,190 |
1,761 |
14,171 |
10,490 |
1,652 |
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
Basic |
0.16 |
0.07 |
0.01 |
0.09 |
0.07 |
0.01 |
Diluted |
0.16 |
0.07 |
0.01 |
0.09 |
0.07 |
0.01 |
|
|
|
|
|
|
|
Shares used in net income pershare
computation |
|
|
|
|
|
|
Basic |
157,415,893 |
153,491,202 |
153,491,202 |
156,319,035 |
153,292,893 |
153,292,893 |
Diluted |
158,096,893 |
154,589,389 |
154,589,389 |
157,000,035 |
154,425,893 |
154,425,893 |
|
|
|
|
|
|
|
Net income per ADS |
|
|
|
|
|
|
Basic |
1.28 |
0.56 |
0.09 |
0.73 |
0.56 |
0.09 |
Diluted |
1.27 |
0.56 |
0.09 |
0.72 |
0.56 |
0.09 |
|
|
|
|
|
|
|
Shares used in net income per ADS
computation |
|
|
|
|
|
|
Basic |
19,676,987 |
19,186,400 |
19,186,400 |
19,539,879 |
19,161,612 |
19,161,612 |
Diluted |
19,762,112 |
19,323,674 |
19,323,674 |
19,625,004 |
19,303,237 |
19,303,237 |
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETS |
AS OF DECEMBER 31, 2011
and JUNE 30, 2012 |
|
|
|
|
|
December 31 |
June
30 |
|
|
2011 |
2012 |
|
(RMB'000) |
(RMB'000) |
(US$'000) |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
179,385 |
150,506 |
23,691 |
Restricted cash |
5,410 |
-- |
-- |
Short-term investments |
-- |
85,548 |
13,466 |
Accounts receivable (net of allowance for
doubtful accounts of RMB393,860 and RMB393,860 (US$61,996) as of
December 31, 2011 and June 30, 2012, respectively) |
60,767 |
59,571 |
9,377 |
Bills receivable |
109,256 |
52,423 |
8,252 |
Inventories |
15,846 |
15,726 |
2,475 |
Prepayments |
18,020 |
23,389 |
3,682 |
Other receivables |
7,203 |
3,391 |
534 |
Prepaid income tax |
8,179 |
9,539 |
1,501 |
Deferred tax assets |
1,040 |
1,044 |
164 |
|
|
|
|
Total current assets |
405,106 |
401,137 |
63,142 |
|
|
|
|
Non-current assets: |
|
|
|
Property, plant and equipment, net |
214,171 |
213,475 |
33,602 |
Land use rights, net |
35,121 |
34,781 |
5,475 |
Intangible assets, net |
21,212 |
20,023 |
3,152 |
Other Investments |
3,414 |
3,414 |
537 |
Prepayments |
15,884 |
24,111 |
3,795 |
Deferred tax assets |
7,406 |
8,718 |
1,372 |
|
|
|
|
Total non-current assets |
297,208 |
304,522 |
47,933 |
|
|
|
|
TOTAL ASSETS |
702,314 |
705,659 |
111,075 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term bank loans |
7,000 |
7,000 |
1,102 |
Accounts payable |
1,501 |
1,963 |
309 |
Accrued expenses and other payables |
34,863 |
24,245 |
3,816 |
Income tax payable |
3,312 |
2,067 |
325 |
Unrecognized tax benefits |
2,656 |
4,156 |
654 |
|
|
|
|
Total current liabilities |
49,332 |
39,431 |
6,206 |
|
|
|
|
Non-current
liabilities: |
|
|
|
Deferred tax liabilities |
2,036 |
2,229 |
351 |
Deferred government grants |
23,185 |
26,048 |
4,100 |
Long-term payable |
12,934 |
13,294 |
2,093 |
|
|
|
|
Total non-current liabilities |
38,155 |
41,571 |
6,544 |
|
|
|
|
Commitments and
contingencies |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
Ordinary shares (par value US$0.0005 per
share, 474,200,000 shares authorized and 157,906,470 shares issued
and outstanding as of December 31, 2011; 474,200,000 shares
authorized and 157,330,734 shares issued and outstanding as of June
30, 2012) |
581 |
580 |
91 |
Additional paid-in capital |
469,107 |
469,297 |
73,870 |
Retained earnings |
143,180 |
152,820 |
24,055 |
|
|
|
|
Total shareholders'
equity |
612,868 |
622,697 |
98,016 |
|
|
|
|
Non-controlling
interests |
1,959 |
1,960 |
309 |
|
|
|
|
TOTAL EQUITY |
614,827 |
624,657 |
98,325 |
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
702,314 |
705,659 |
111,075 |
|
|
|
|
|
|
|
|
|
|
|
NKBP |
|
|
|
|
|
|
Non GAAP Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months 2011 |
Six
Months 2012 |
2Q 2011 |
2Q
2012 |
|
(RMB'000) |
(RMB'000) |
(USD$'000) |
(RMB'000) |
(RMB'000) |
(USD$'000) |
|
|
|
|
|
|
|
GAAP Net Income |
25,103 |
11,190 |
1,761 |
14,171 |
10,490 |
1,652 |
|
|
|
|
|
|
|
Adjusting |
|
|
|
|
|
|
Foreign Exchang Loss/(Gain) |
2,896 |
(262) |
(41) |
1,535 |
(230) |
(36) |
ESOP |
-- |
191 |
30 |
-- |
-- |
-- |
ASC 740 adjustment |
-- |
1,500 |
236 |
-- |
1,000 |
157 |
|
|
|
|
|
|
|
Non GAAP Net Income |
27,999 |
12,619 |
1,986 |
15,706 |
11,260 |
1,773 |
|
|
|
|
|
|
|
CONTACT: China Nuokang Bio-Pharmaceutical Inc.
Mr. Steven Duan
Vice President of Investor Relations
Email: dsz@nkbp.com
ICR, Inc.
Mr. Rob Koepp
Tel: (+86) 10-6583-7516 or (646) 405-5180
Email: robert.koepp@icrinc.com
China Nuokang Bio-Pharmaceutical Inc. ADS, Each Representing Eight Ordinary Shares (MM) (NASDAQ:NKBP)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
China Nuokang Bio-Pharmaceutical Inc. ADS, Each Representing Eight Ordinary Shares (MM) (NASDAQ:NKBP)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024