BEIJING, Aug. 17, 2020 /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 second quarter of 2020.
Second Quarter 2020 Financial Highlights
- Total sales in the second quarter of 2020 decreased by
14.9% in RMB terms and 18.1% in USD terms to $111.1 million from $135.7
million in the same quarter of 2019.
- Gross profit decreased by 16.0% to $76.4 million from $90.9
million in the same quarter of 2019. Gross margin
increased to 68.8% from 67.0% in the same quarter of 2019.
- Income from operations decreased by 11.4% to
$42.7 million from $48.2 million in the same quarter of 2019.
Operating margin increased to 38.4% from 35.5% in the same
quarter of 2019.
- Non-GAAP adjusted income from operations decreased by
5.8% in RMB terms and 9.3% in USD terms to $51.4 million from $56.7
million in the same quarter of 2019.
- Net income attributable to the Company
decreased by 14.2% to $35.7 million
from $41.6 million in the same
quarter of 2019. Diluted earnings per share decreased to
$0.91 compared to $1.06 in the same quarter of 2019.
- Non-GAAP adjusted net income attributable to the Company
decreased by 7.2% in RMB terms and 10.9% in USD terms to
$43.4 million from $48.7 million in the same quarter of 2019.
Non-GAAP adjusted earnings per diluted share
decreased to $1.11 from $1.24 in the same quarter of 2019.
NOTE: Detailed financial statements and information are
available through this link: https://photos.prnasia.com/prnk/20200817/2886842-1
"In line with our previous estimates, our revenue and net income
declined during the second quarter reflecting the combined impact
of the ongoing COVID-19 pandemic and our adjusted sales focus,"
said Joseph Chow, Chairman and CEO
of China Biologic. "Although a decline in demand and an increase in
supply have led to increased competition in our core markets, and
while many hospitals are maintaining strict precautionary measures
against the pandemic which limits our promotional activities, we
have gained market share across most of our major products within
direct sales channels. For certain major products in our
distribution channels, we are taking a conservative approach in
order to better align inventory with market demand for the second
half of 2020. "
"We continue to focus on optimizing the efficiency of our
distribution network and lowering our credit exposure by
eliminating smaller non-performing distributors, evidenced by our
continued improvement in accounts receivable turnover, which is
quite important during this difficult time amid COVID-19. We are
also implementing online enterprise management and logistics
systems as we adjust our operational strategies to adapt to the
challenging new environment. These measures together with our
efforts to reduce operating costs have helped us to further improve
our operating margin. We are also exploring more channels to
improve overall plasma supply and fill the gap in both internal
collection and outsourced plasma volumes. We will continue to make
every effort to maintain our track record of providing high-quality
products to our patients, investing in new product development, and
bringing better healthcare to society."
Recent Updates
Obtained Approval to Build a New Collection
Station
In April 2020, China Biologic
received approval from the Health Commission of Shandong Province to build a new plasma
collection station in Yangxin County, Binzhou City of Shandong
Province.
Coagulation Factor IX Approved for
Manufacturing
In July 2020, China Biologic
received the certificate of approval for manufacturing coagulation
factor IX. The Company began the clinical trial in 2017 for this
first-to-market plasma-based product in China, which will further improve China
Biologic's plasma fractionation utilization and contribute to its
long-term financial growth. China Biologic has begun manufacturing
coagulation factor IX and expects to launch the product in the
third quarter of 2020.
Huitian's Manufacturing Permit Revoked
In July 2020, Xi'an Huitian Blood
Products Co., Ltd. ("Huitian"), a PRC company in which China
Biologic holds an indirect minority equity interest, received an
administrative order from the Shaanxi Medical Products
Administration revoking Huitian's pharmaceutical manufacturing
permit due to its failure to meet certain good manufacturing
practice standards in its production of pharmaceutical
products.
Huitian is a plasma products company based in Xi'an, Shaanxi
Province, and China Biologic indirectly holds 35% of its
equity interest. The Company records its equity investment in
Huitian as equity in income of equity method investee in the
Company's consolidated statements of comprehensive income. In 2017,
2018 and 2019, such equity in income of equity method investee was
$3.5 million, $2.4 million and $1.6
million, respectively, accounting for 5.2%, 1.8% and 1.1%,
respectively, of the total net income attributable to China
Biologic.
Conference Call
The Company will host a conference call at 7:30 am Eastern Time on Tuesday, August 18, which
is 7:30 p.m. Beijing Time on
August 18, 2020, to discuss its
second quarter 2020 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 August 25, 2020. The dial-in details are:
US:
1 877 344 7529
International:
1 412 317 0088
Passcode:
10147239
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.
View original
content:http://www.prnewswire.com/news-releases/china-biologic-reports-financial-results-for-the-second-quarter-of-2020-301113048.html
SOURCE China Biologic Products Holdings, Inc.
