BEIJING, March 12, 2012 /PRNewswire-Asia-FirstCall/ -- China Biologic Products, Inc. (NASDAQ: CBPO) ("China Biologic" or the "Company"), one of the leading plasma-based biopharmaceutical companies in the People's Republic of China ("PRC"), today reported its financial results for the year ended December 31, 2011.
Financial highlights for the year 2011
- Total sales increased $13.4 million or 9.6% to $153.1 million for the year ended December 31, 2011, from $139.7 million in 2010, including the benefit of a 5.0% gain from foreign exchange translation. Total sales in terms of RMB increased 4.6% in 2011 from 2010.
- Gross profit increased $4.3 million or 4.2% to $107.1 million in 2011 from $102.7 million in 2010. The gross profit margin decreased by 3.6% to 69.9% in 2011 from 73.5% in 2010.
- Income from operations decreased by $36.4 million or 53.0% to $32.2 million in 2011 from $68.6 million in 2010. The year 2011 included a non-cash charge for impairment of goodwill of $18.2 million and non-cash loss on abandonment of long-lived assets of $6.6 million.
- GAAP net income attributable to China Biologic was $18.2 million in 2011 or $0.37 per diluted share, compared with $31.5 million or $1.30 per diluted share in 2010.
- Non-GAAP adjusted net income was $36.5 million or $1.37 per diluted share in 2011 compared with $39.0 million or $1.61 per diluted share in 2010.
CEO Comments
Mr. Chao Ming Zhao, Chief Executive Officer of China Biologic, said, "As we stated in July, the supply for raw plasma in our Guizhou facility was unfortunately impacted by the closures of our four plasma collection stations at the direction of the Guizhou provincial government's then newly imposed plan. Those stations had accounted for about 34% of our total raw plasma volume collected in 2010.
"Since then, we have developed alternativesolutions and opportunities to mitigate the negative impacts of the closures of these plasma collection stations, reallocated resources from the closed stations to maximize their utilization within our company, and continued to aggressively explore new regions for new plasma stations. The process of locating and developing new stations includes numerous time-consuming activities and uncertainties, including analyzing and selecting the appropriate locations for successful plasma stations, gaining the extensive and detailed sequential approvals at various levels of government, station construction, equipment installation, inspections and licensing, and donor promotion and education programs.
"We have adjusted our production plan and sales and marketing strategy to leverage our continuing plasma resources to maximize profit, given the changing market dynamics. We have focused on supplying our life-saving products through our direct sales to those facilities with patients who have the most critical medical needs and to our best long-term customers. We are also focusing on our most profitable products.
"In his recent statement, Mr. Zhu Chen, China's Minister of Health, encouraged the country to double plasma supply from 2012 to 2016, as part of China's newest five year plan. According to Mr. Chen, the current supply of plasma can barely meet half of the potential demand for plasma protein products. We hope the Minister's statements will induce local government's support and cooperation in broadening regions for development and building of new plasma collection stations.
"The demand for most of our plasma products continues to hold relatively strong, with China's growing and aging population, increasing urbanization, and economic growth, the government's promotion of health care and its strategies and policies that encourage the expansion in plasma collection and use of plasma products.
"We remain committed to accelerating our long-term earnings growth in the future by focusing on broadening our research and development pipeline, strengthening our direct institutional sales, expanding our geographic reach, locating and creating new raw plasma sources, pursuing possible prudent acquisitions and mergers and potential international collaborations.
"We will continue to take the actions needed to achieve our strategic goals to create additional value for shareholders through outstanding products that are vital to human health."
Results for the year 2011
Revenues increased $13.4 million or 9.6% to $153.1 million in 2011 from $139.7 million in 2010. The increase is mainly due to higher pricing and sale volumes of certain products and the favorable changes of foreign exchange translation. Total sales in terms of RMB increased 4.6% in 2011 from 2010.
