LIUZHOU, China, Nov. 14, 2012 /PRNewswire/ -- China BCT Pharmacy
Group, Inc., (OTC BB: CNBI), ("China BCT" or the "Company"), a
leading pharmaceutical distributor, retail pharmacy, and
manufacturer of pharmaceutical products in Guangxi Province, China, today announced results for the three
and nine month periods ended September 30,
2012.
Third Quarter 2012
Highlights
- Revenue decreased 18% year-over-year to $55.4 million
- Gross profit decreased 34% year-over-year to $10.7 million
- Operating income decreased 53% year-over-year to $5.8 million
- GAAP net income applicable to common stockholders decreased 65%
to $2.9 million, or $0.08 per diluted share, from $8.3 million, or $0.22 per diluted share, in the third quarter of
2011
- Excluding non-cash items related to change in the fair value of
warrant liabilities and share-based compensation expense, non-GAAP
adjusted net income applicable to common stockholders was
$3.0 million, or $0.08 per diluted share
- Cash and cash equivalents as of September 30, 2012 totaled $19.4 million, compared to $31.5 million at the end of 2011
"In the third quarter, the trend of strong pressure on wholesale
prices and margins continued," said Mr. Huitian Tang, Chief Executive Officer of the
Company. "Government pressure on those margins through a zero
profit policy for drug sales by the hospitals, a ceiling on drug
price increases during the contract bidding process and a mandate
for hospitals to take the lowest bid price in all cases
continue. These are the challenges that we are
addressing. However we have yet to halt the decline in
operating profit from our wholesale activities which has declined
32% for the first nine months of the year and 68% for the third
quarter. We have put a great deal of effort into expanding
our retail operations to offset the wholesale declines and results
are encouraging. Our operating profit from our retail
activities is up 10% for the year so far, although expansion costs
have reduced profitability for the third quarter by 11%."
Third Quarter 2012 Results
Third quarter 2012 revenue decreased 18% to $55.4 million from $67.5
million in the third quarter of 2011, was mainly due to
selling price pressures in the pharmaceutical distribution
segment.
Revenue from the Company's pharmaceutical distribution segment
decreased 23% year-over-year to $38.6
million, or 70% of total revenue in the third quarter of
2012.
Revenue from the Company's retail pharmacy segment decreased 1%
year-over-year to $13.5 million, or
24% of total third quarter revenue. A $1.2 million decrease in sales due to the closure
of 17 stores over the last twelve months was partly offset by a
$0.5 million increase from newly
opened stores.
Revenue from the Company's manufacturing segment fell 8%
year-over-year to $3.3 million, or 6%
of total third quarter revenue.
Gross profit fell 34% year-over-year to $10.7 million, from $16.3
million for the same period of 2011. Gross profit margin was
reduced to 19.4%, as compared to 24.2% in the comparable period
last year. The decrease in gross profit margin in the third quarter
of 2012 mainly reflected the price pressures on sales to hospitals
from the PRC government-mandated collective tender process and
pressures on prices of drugs sold to health care community centers
via the government-controlled prices of drugs on the prescribed
list within the Basic Drug Catalogue.
Within pharmaceutical distribution, operating profit margin
decreased to 6.6% in the third quarter of 2012 from 16.0% in the
third quarter of 2011. Operating profit margin for the retail
pharmacy segment decreased to 15.9% from 17.7% in the third quarter
of 2011. Manufacturing segment operating profit margin was
42.3% and 53.8% during the three months ended September 30, 2012 and 2011,
respectively.
Selling and administrative expenses totaled $4.9 million for the three months ended
September 30, 2012, as compared to
$3.8 million for the three months
ended September 30, 2011,
representing an increase of $1.1
million or approximately 28.9%.
Operating income decreased 53.2% to $5.8
million, or 10.5% of revenue, from $12.5 million, or 18.5% of revenue, in the third
quarter of 2011.
GAAP net income applicable to common stockholders decreased
65.3% to $2.9 million, or
$0.08 per diluted share, as compared
to $8.3 million, or $0.22 per diluted share, in the third quarter of
2011. Diluted earnings per share were calculated using weighted
average shares of 38.2 million shares for the three months ended
September 30, 2012 and 2011.
Excluding a non-cash gain related to change in the fair value of
warrant liabilities and excluding share-based compensation expense,
third quarter 2012 non-GAAP adjusted net income attributable to
common shareholders was $3.0 million,
or $0.08 per diluted share, compared
to $7.9 million, or $0.21 per diluted share in the third quarter of
2011.
Nine-Month Results
Revenue was $187.7 million for the
nine months ended September 30, 2012,
a decrease of 1.8% from $191.2
million in the same period in the prior year.
In terms of revenue mix, the pharmaceutical distribution segment
remained the Company's largest segment for the nine month period at
$135.4 million or 72.1% of total
sales, compared to 74.2% last year. Retail pharmacy segment sales
were $41.4 million, representing
22.0% of total Company sales in the nine month period ended
September 30, 2012, up from 20.6% of
total sales in the same period last year. The manufacturing
segment accounted for $11.0 million
or 5.9% of total sales in the nine month period of 2012, compared
to 5.2% for the same period last year.
Gross profit was $40.6 million, or
21.6% of revenue, for the nine months ended September 30, 2012, down 11.7% from $46.0 million, or 24.0% of revenue for the same
period in 2011.
Operating income was $26.5
million, or 14.1% of revenue, for the nine months ended
September 30, 2012, down 19.0% from
$32.7 million, or 17.1% of revenue
for the same period in 2011.
GAAP net income attributable to common shareholders decreased
27.2% to $15.7 million, or
$0.41 per diluted share, compared to
$21.6 million, or $0.57 per diluted share for the same nine month
period in 2011. Excluding a net non-cash expense related to change
in the fair value of warrant liabilities and share-based
compensation expense, adjusted net income was $16.0 million, or $0.42 per diluted share, as compared to
$21.2 million, or $0.56 per diluted share for the nine month period
a year ago.
Financial Condition
As of September 30, 2012, China
BCT had $19.4 million in cash and
cash equivalents, $127.0 million in
working capital and a current ratio of 2.89. Long-term bank debt
was $0.1 million. Stockholders'
equity was $133.4 million on
September 30, 2012, compared to
$116.5 million at the end of
2011.
The Company generated a $10.7
million cash outflow from operating activities for the nine
months ended September 30, 2012
compared to cash outflow of $4.8
million in the nine months of the prior year, primarily due
to a slowdown in the collection of accounts receivable. Cash used
in investing activities was $2.9
million, compared to cash used in investing activities of
$5.2 million in the same period a
year ago. Cash inflow from financing activities totaled
$1.4 million.
Business Outlook
"In a very challenging year for our wholesale business we have
remained profitable to date.
Looking forward, we are working on expanding our wholesale
business by adding new supply contracts. Since the bidding
round for new contracts closed in the second quarter of 2011, we
have won 2,000-3,000 more product distribution rights with regard
to our hospital and clinic clients. This represented an
approximately 50% increase over 2010. We also increased the
number of bids awarded to us for counties and cities under the New
Rural Cooperate Medicare bidding process from 6 counties and cities
to 22. We look forward to competing aggressively in the next
round of centralized bidding which appears to have been pushed out
to 2013 due to the delay in the publication of the new basic drug
list.
We are also focusing on growing our retail pharmacy
business. We have been consolidating our existing pharmacy
stores into larger stores with built-in traditional Chinese
medicine, or TCM, clinics; we are targeting to have about 4 to 5
such stores built for each larger city and at least one such store
built for each county in Guangxi. We re-decorated
and opened our first 3,000 square feet pharmacy store with built-in
TCM clinics in December 2011 where we
provide around 5,400 types of products. We built 3
consultation rooms for TCM doctors to provide free consultations to
increase in-store TCM sales and attract more in-store
traffic. As of September 30,
2012, we now have 8 stores with built-in TCM clinics,
including one mega store of 18,000 square feet and we expect to
open another 2-5 such stores in the remainder of 2012 at a cost of
approximately $2.4 million for the
re-decorating and re-opening. We will put priority focus on
quality rather than quantity of the stores that we are going to
operate.
Overall we are excited by the challenges and opportunities
before us. Despite current price pressures, we believe the
Chinese government desires an efficient and viable drug supply
chain and we are working towards being a leader in that chain in
Guangxi Province," concluded Mr.
Tang.
Conference Call
China BCT will conduct a conference call at 8:00 a.m. Eastern Time (ET) on Wednesday, November 14, 2012, to discuss its
third quarter and nine-month 2012 financial results.
The conference call can be accessed by dialing 866-759-2078
(U.S. and Canada callers) or
706-643-0585 (international callers) and entering the conference ID
70856824 approximately five to ten minutes prior to the call. A
replay will be available for two weeks starting on Wednesday, November 14, 2012 at 11:00 a.m. ET by dialing 855-859-2056 (U.S. and
Canada callers) or 404-537-3406
(international callers) and entering the conference replay ID
70856824.
About China BCT
China BCT is engaged in pharmaceutical distribution, pharmacy
retailing, and the manufacture of pharmaceuticals products through
its subsidiaries Guangxi Liuzhou Baicaotang Medicine Limited,
Guangxi Liuzhou Baicaotang Medicine Retail Limited, and Hefeng
Pharmaceutical Co. Limited in Guangxi province, China. It operates a large regional retail
network in Guangxi province,
consisting of 195 directly owned retail stores in Guangxi province and currently over 8,000
products are distributed through the Company's wholesale
distribution network. For more information, please visit
www.china-bct.com.
Safe Harbor Statement
This press release contains "forward-looking statements"
within the meaning of the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such statements involve
known and unknown risks, uncertainties and other factors that could
cause the actual results of the Company to differ materially from
the results expressed or implied by such statements, including:
changes from anticipated levels of sales; future international,
national or regional economic and competitive conditions; changes
in relationships with customers; access to capital; difficulties in
developing and marketing new products and services; marketing
existing products and services; customer acceptance of existing and
new products and services; and other factors detailed in the
Company's periodic filings with the Securities and Exchange
Commission (http://www.sec.gov). Accordingly,
although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct. The
Company has no obligation to update the forward-looking information
contained in this presentation.
Use of Non-GAAP Financial Information
GAAP results for the three and nine months ended September 30, 2012 and 2011 include change in
fair value of warrant liabilities and share-based compensation
expense. To supplement the Company's 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, which are non-GAAP net income and non-GAAP diluted
earnings per share. The Company's management believes that these
non-GAAP measures provide investors with a better understanding of
how the results related to the Company's historical performance.
The additional adjusted information is not meant to be considered
in isolation or as a substitute for GAAP financials. The adjusted
financial information that the Company provides also may differ
from the adjusted information provided by other companies.
Management believes that these adjusted financial measures are
useful to investors because they exclude non-cash expenses that
management excludes when it internally evaluates the performance of
the Company's business and makes operating decisions, including
internal budgeting, and performance measurement, as these measures
provide a consistent method of comparison to historical periods. As
a result, the provision of these adjusted measures allows investors
to evaluate the Company's performance using the same methodology
and information as that used by the Company's management. Adjusted
measures are subject to inherent limitations because they do not
include all of the expenses included under GAAP and because they
involve the exercise of judgment of which charges are excluded from
the adjusted financial measure. However, the Company's management
compensates for these limitations by providing the relevant
disclosure of the items excluded. A reconciliation of each adjusted
measures to the nearest GAAP measure appears in the table
below.
|
China
BCT Pharmacy Group, Inc.
RECONCILIATION OF NON-GAAP NET INCOME AND DILUTED
EPS
|
|
Three
months Ended
|
|
Nine
months Ended
|
|
September
30,
|
September
30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
US$ -
thousands, except per share
|
|
|
|
|
|
|
|
Net income
(GAAP) applicable to common stock
|
$2,873
|
|
$8,291
|
|
$15,708
|
|
$21,587
|
|
-
Share-based compensation expense
|
166
|
|
3
|
|
471
|
|
574
|
|
- Change
in fair value of warrant liabilities
|
(53)
|
|
(392)
|
|
(191)
|
|
(968)
|
|
Adjusted
net income (non-GAAP)
|
$2,986
|
|
$7,902
|
|
$15,988
|
|
$21,193
|
|
|
|
|
|
|
|
|
|
Per
diluted share
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
$0.08
|
|
$0.22
|
|
$0.41
|
|
$0.57
|
|
Share-based compensation expense
|
$0.00
|
|
$0.00
|
|
$0.01
|
|
$0.02
|
|
Change in
fair value of warrant liabilities
|
($0.00)
|
|
($0.01)
|
|
($0.00)
|
|
($0.03)
|
|
Adjusted
net income (non-GAAP)
|
$0.08
|
|
$0.21
|
|
$0.42
|
|
$0.56
|
|
Weighted
average shares outstanding – '000
|
|
|
|
|
|
|
|
-diluted
|
38,154
|
|
38,154
|
|
38,154
|
|
38,154
|
-Financial Tables Follow-
|
China BCT Pharmacy Group,
Inc.
(Formerly named China Baicaotang Medicine
Limited)
Consolidated Statements of Income and
Comprehensive Income
(Stated
in US Dollars)
|
|
Three months ended
September 30,
(unaudited)
|
|
Nine months ended
September
30,
(unaudited)
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Sales
revenue
|
$
55,402,769
|
|
$
67,480,712
|
|
$
187,746,088
|
|
$
191,199,700
|
|
Cost of
sales
|
44,654,619
|
|
51,180,349
|
|
147,134,670
|
|
145,219,476
|
|
Gross
profit
|
10,748,150
|
|
16,300,363
|
|
40,611,418
|
|
45,980,224
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Administrative
expenses
|
2,567,242
|
|
2,127,195
|
|
7,188,885
|
|
7,843,247
|
|
Selling
expenses
|
2,356,450
|
|
1,719,926
|
|
6,919,100
|
|
5,435,073
|
|
Total operating expenses
|
4,923,692
|
|
3,847,121
|
|
14,107,985
|
|
13,278,320
|
|
|
|
|
|
|
|
|
|
Income
from operations
|
5,824,458
|
|
12,453,242
|
|
26,503,433
|
|
32,701,904
|
|
|
|
|
|
|
|
|
|
Non-operating income (expense)
|
|
|
|
|
|
|
|
|
Interest
income
|
4,077
|
|
21,510
|
|
22,873
|
|
47,499
|
|
Other
income
|
72,776
|
|
20,278
|
|
324,546
|
|
157,019
|
|
Change in fair value of warrant liabilities
|
53,418
|
|
391,652
|
|
190,871
|
|
967,696
|
|
Other expenses
|
(13,674)
|
|
(7,147)
|
|
(26,177)
|
|
(24,733)
|
|
Finance
costs
|
(260,948)
|
|
(256,156)
|
|
(753,233)
|
|
(646,060)
|
|
Total non-operating income
(expense)
|
(144,351)
|
|
170,137
|
|
(241,120)
|
|
501,421
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
5,680,107
|
|
12,623,379
|
|
26,262,313
|
|
33,203,325
|
|
Income
taxes
|
(1,527,284)
|
|
(3,165,839)
|
|
(6,771,893)
|
|
(8,893,359)
|
|
Net
income
|
4,152,823
|
|
9,457,540
|
|
19,490,420
|
|
24,309,966
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
|
|
|
|
|
|
adjustments
|
(360,123)
|
|
1,047,236
|
|
651,779
|
|
3,398,140
|
|
Total
comprehensive income
|
$
3,792,700
|
|
$
10,504,776
|
|
$
20,142,199
|
|
$
27,708,106
|
|
|
|
|
|
|
|
|
|
Earnings
per share – basic and diluted
|
$
0.08
|
|
$
0.22
|
|
$
0.41
|
|
$
0.57
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares
|
|
|
|
|
|
|
|
|
outstanding – basic and diluted
|
38,154,340
|
|
38,154,340
|
|
38,154,340
|
|
38,154,340
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to income
applicable to common stock:
|
|
|
|
|
|
|
|
|
Net
income
|
$
4,152,823
|
|
$
9,457,540
|
|
$
19,490,420
|
|
$
24,309,966
|
|
Less:
dividends and accretion on
preferred stock
|
(1,279,511)
|
|
(1,167,011)
|
|
(3,782,283)
|
|
(2,723,026)
|
|
Income
applicable to common stock
|
$
2,873,312
|
|
$
8,290,529
|
|
$
15,708,137
|
|
$
21,586,940
|
|
China
BCT Pharmacy Group, Inc.
(Formerly named China Baicaotang Medicine
Limited)
Consolidated Balance Sheets
(Stated
in US Dollars)
|
|
September 30,
|
|
December 31,
|
|
2012
|
|
2011
|
|
(Unaudited)
|
|
(*)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
19,367,354
|
|
$
|
31,479,528
|
|
Restricted cash
|
|
762,722
|
|
|
1,052,096
|
|
Accounts receivable, net
|
|
142,273,600
|
|
|
118,406,001
|
|
Bills receivable
|
|
92,379
|
|
|
33,052
|
|
Amounts due from related companies
|
|
255,025
|
|
|
255,169
|
|
Other receivables, prepayments and
deposits
|
|
11,840,383
|
|
|
5,750,056
|
|
Inventories
|
|
18,782,283
|
|
|
14,183,052
|
|
Deferred income taxes
|
|
866,896
|
|
|
927,860
|
|
Total current assets
|
|
194,240,642
|
|
|
172,086,814
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
19,859,886
|
|
|
18,097,062
|
|
Land use rights, net
|
|
13,397,724
|
|
|
13,584,135
|
|
Long-term deposits
|
|
7,388,784
|
|
|
7,070,400
|
|
Goodwill
|
|
542,248
|
|
|
540,157
|
|
Other intangible assets, net
|
|
439,582
|
|
|
504,948
|
|
Deferred income taxes
|
|
687,376
|
|
|
667,509
|
|
Other investment
|
|
31,576
|
|
|
31,424
|
|
Total assets
|
$
|
236,587,818
|
|
$
|
212,582,449
|
|
(*)
Derived from audited financial statements
|
|
China
BCT Pharmacy Group, Inc.
(Formerly named China Baicaotang Medicine
Limited)
Consolidated Balance Sheets
(Cont'd)
(Stated
in US Dollars)
|
|
September 30,
|
|
December 31,
|
|
2012
|
|
2011
|
|
(Unaudited)
|
|
(*)
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable
|
$
|
45,611,582
|
|
$
|
42,290,191
|
|
Bills payable
|
|
1,800,390
|
|
|
2,104,192
|
|
Other payables and accrued expenses
|
|
6,111,440
|
|
|
5,490,237
|
|
Amounts due to directors
|
|
127,961
|
|
|
168,246
|
|
Amounts due to related companies
|
|
710,790
|
|
|
37,604
|
|
Income taxes payable
|
|
1,513,048
|
|
|
2,726,869
|
|
Secured bank loans, current portion
|
|
11,105,443
|
|
|
9,036,060
|
|
Other loans
|
|
212,349
|
|
|
200,956
|
|
Retirement benefit costs
|
|
63,347
|
|
|
46,854
|
|
Total current liabilities
|
|
67,256,350
|
|
|
62,101,209
|
|
|
|
|
|
|
|
Secured
bank loans
|
|
143,680
|
|
|
206,767
|
|
Warrant
liabilities
|
|
120
|
|
|
190,991
|
|
Retirement
benefit costs
|
|
167,903
|
|
|
177,368
|
|
Total liabilities
|
|
67,568,053
|
|
|
62,676,335
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible redeemable preferred stock
|
|
|
|
|
|
|
Series A convertible, redeemable preferred
stock:
|
|
|
|
|
|
|
$0.001 par value; 20,000,000 shares
authorized;
|
|
|
|
|
|
|
9,375,000 shares issued and outstanding
|
|
35,668,186
|
|
|
33,385,903
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
Common stock: par
value $0.001 per share;
|
|
|
|
|
|
|
150,000,000 shares authorized;
|
|
|
|
|
|
|
38,154,340 shares issued and outstanding
|
|
38,154
|
|
|
38,154
|
|
Additional
paid-in capital
|
|
18,745,218
|
|
|
18,273,766
|
|
Statutory
and other reserves
|
|
6,851,002
|
|
|
6,851,002
|
|
Accumulated other comprehensive income
|
|
9,560,934
|
|
|
8,909,155
|
|
Retained
earnings
|
|
98,156,271
|
|
|
82,448,134
|
|
Total stockholders' equity
|
|
133,351,579
|
|
|
116,520,211
|
|
Total liabilities and stockholders' equity
|
$
|
236,587,818
|
|
$
|
212,582,449
|
|
China BCT Pharmacy Group,
Inc.
(Formerly named China Baicaotang Medicine
Limited)
Consolidated Statements of Cash
Flows
(Stated
in US Dollars)
|
|
Nine
months ended September 30,
|
|
(Unaudited)
|
|
2012
|
|
2011
|
|
|
|
|
|
Cash flows
from operating activities:
|
|
|
|
|
Net income
|
$
19,490,420
|
|
$
24,309,966
|
|
Adjustments to reconcile net income to net cash used in
operating activities:
|
|
|
|
|
Depreciation and amortization
|
1,234,769
|
|
1,141,687
|
|
Deferred income taxes
|
48,658
|
|
(4,133)
|
|
Loss on sale of property, plant and
equipment
|
-
|
|
10,960
|
|
Change in fair value of warrant
liabilities
|
(190,871)
|
|
(967,696)
|
|
Share-based compensation expense
|
471,452
|
|
574,136
|
|
Changes in operating assets and liabilities, net of
effects of acquisitions
of distribution stores:
|
|
|
|
|
Accounts receivable
|
(23,338,452)
|
|
(30,174,501)
|
|
Bills receivable
|
(59,426)
|
|
(18,381)
|
|
Other receivables, prepayments and
deposits
|
(6,070,497)
|
|
(1,128,518)
|
|
Inventories
|
(4,542,253)
|
|
(2,025,584)
|
|
Bills payable
|
(315,434)
|
|
(942,186)
|
|
Accounts payable
|
3,153,342
|
|
4,862,137
|
|
Other payables and accrued expenses
|
602,945
|
|
(967,922)
|
|
Retirement benefit costs
|
5,950
|
|
(6,803)
|
|
Income tax payable
|
(1,227,012)
|
|
496,034
|
|
Total adjustments
|
(30,226,829)
|
|
(29,150,770)
|
|
Net cash used in operating activities
|
$
(10,736,409)
|
|
$
(4,840,804)
|
|
|
|
|
|
China BCT Pharmacy Group,
Inc.
(Formerly named China Baicaotang Medicine
Limited)
Consolidated Statements of Cash Flows
(Cont'd)
(Stated
in US Dollars)
|
|
Nine
months ended September 30,
|
|
(Unaudited)
|
|
2012
|
|
2011
|
|
|
|
|
|
Cash flows
from investing activities:
|
|
|
|
|
Additions to property, plant and equipment
|
$
(2,593,919)
|
|
$
(1,887,074)
|
|
Net cash from acquisition of distribution
chains
|
-
|
|
36,502
|
|
Payment to acquire intangible assets
|
(449)
|
|
(12,068)
|
|
Proceeds from sale of property, plant and
equipment
|
-
|
|
4,039
|
|
Change in long-term deposits
|
(284,598)
|
|
(3,365,600)
|
|
Net cash used in investing activities
|
(2,878,966)
|
|
(5,224,201)
|
|
|
|
|
|
Cash flows
from financing activities:
|
|
|
|
|
Advance/repayment to related
companies
|
674,702
|
|
(5,677,714)
|
|
Proceeds received from
placement of preferred stock
|
-
|
|
29,495,866
|
|
Change in restricted
cash
|
295,237
|
|
475,110
|
|
Repayments to
directors
|
(41,115)
|
|
(31,606)
|
|
Proceeds from bank
loans
|
11,034,710
|
|
9,888,040
|
|
Repayments of bank
loans
|
(9,071,202)
|
|
(11,270,387)
|
|
Preferred dividends paid
|
(1,500,000)
|
|
-
|
|
Net cash provided by financing activities
|
1,392,332
|
|
22,879,309
|
|
|
|
|
|
Effect of
foreign currency translation on cash and cash
equivalents
|
110,869
|
|
1,292,319
|
|
|
|
|
|
Net
(decrease)/increase in cash and cash equivalents
|
(12,112,174)
|
|
14,106,623
|
|
|
|
|
|
Cash and
cash equivalents - beginning of period
|
31,479,528
|
|
20,157,112
|
|
|
|
|
|
Cash and
cash equivalents - end of period
|
$
19,367,354
|
|
$
34,263,735
|
|
|
|
|
|
Supplemental disclosures for cash flow information
:
|
|
|
|
|
Cash paid for :
|
|
|
|
|
Interest
|
$
645,651
|
|
$
580,475
|
|
Income taxes
|
$
7,950,247
|
|
$
8,401,458
|
|
|
|
|
|
|
|
|
|
Non-cash
financing and investing activities
|
|
|
|
|
Dividends
and accretion on preferred stock
|
$
3,782,283
|
|
$
2,723,026
|
|
|
|
|
Company Contact:
Ms. Shelly Zhang, Chief Financial
Officer
China BCT Pharmacy Group, Inc.
Email: shelly.zhang@china-bct.com
Tel: (86) 772-363-8318
Website: www.china-bct.com
Investor Relations Contact:
Mark Collinson, Partner
CCG Investor Relations
Email: mark.collinson@ccgir.com
Tel: +1-310-954-1343
www.ccgirasia.com
SOURCE China BCT Pharmacy Group, Inc.