On March 12, 2020 China Biologic Products Holdings, Inc. (NASDAQ: CBPO, "China Biologic" or the "Company"), a leading fully integrated plasma-based biopharmaceutical company in China, reported its financial results for the fourth quarter and fiscal year of 2019 (Press release, China Biologic Products, MAR 12, 2020, View Source [SID1234555515]).

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Fourth Quarter 2019 Financial Highlights

Total sales in the fourth quarter of 2019 decreased by 9.6% in RMB terms and 11.1% in USD terms to $102.2 million from $114.9 million in the same quarter of 2018.
Gross profit decreased by 17.2% to $64.0 million from $77.3 million in the same quarter of 2018. Gross margin decreased to 62.6% from 67.3% in the same quarter of 2018.
Income from operations decreased by 56.2% to $18.6 million from $42.5 million in the same quarter of 2018. Operating margin decreased to 18.2% from 37.0% in the same quarter of 2018.
Non-GAAP adjusted income from operations decreased by 28.9% in RMB terms and 30.2% in USD terms to $27.8 million from $39.8 million in the same quarter of 2018.
Net income attributable to the Company decreased by 64.1% to $12.5 million from $34.8 million in the same quarter of 2018. Diluted earnings per share decreased to $0.32 compared to $0.87 in the same quarter of 2018.
Non-GAAP adjusted net income attributable to the Company decreased by 31.2% in RMB terms and 32.6% in USD terms to $20.7 million from $30.7 million in the same quarter of 2018. Non-GAAP adjusted earnings per diluted share decreased to $0.53 from $0.76 in the same quarter of 2018.
Fiscal Year 2019 Financial Highlights

Total sales in 2019 increased by 12.3% in RMB terms and 7.9% in USD terms to $503.7 million from $466.9 million in 2018.
Gross profit increased by 2.8% to $329.1 million from $320.1 million in 2018. Gross margin decreased to 65.3% from 68.6% in 2018.
Income from operations increased by 11.9% to $163.6 million from $146.2 million in 2018. Operating margin increased to 32.5% from 31.3% in 2018.
Non-GAAP adjusted income from operations increased by 16.6% in RMB terms and 11.6% in USD terms to $198.3 million from $177.7 million in 2018.
Net income attributable to the Company increased by 8.4% to $138.8 million from $128.1 million in 2018. Diluted earnings per share remained stable at $3.53 in 2019 as compared to 2018.
Non-GAAP adjusted net income attributable to the Company increased by 20.5% in RMB terms and 15.4% in USD terms to $168.4 million from $145.9 million in 2018. Non-GAAP adjusted earnings per diluted share increased to $4.28 from $4.02 in 2018.
NOTE: Detailed financial statements and information are available through this link: View Source

"We are pleased to report that China Biologic surpassed our upwardly revised guidance for the full year 2019. As anticipated, however, we saw a year-over-year decline in the fourth quarter after exceptionally strong results for the first nine months of the year," said Joseph Chow, Chairman and CEO of China Biologic. "During the fourth quarter we continued our various initiatives to transform our business, including improving our earnings quality, distribution network, and credit policy management. We saw encouraging progress in several areas including distribution channel consolidation, plasma collection expansion and improving accounts receivable turnover. In 2020, we expect to face challenges including increasingly strict industry regulations, intensified market competition and disruptions to our operations as a result of the coronavirus outbreak. Despite these challenges, we are confident our newly-reorganized management team will successfully implement our strategies as we pursue our mission of raising standards in China’s plasma industry and improving lives through the application of groundbreaking medical science."

Financial Outlook

The COVID-19 outbreak has impacted various aspects of CBPO’s operations, including plasma collection, production of certain products, and sales and marketing activities. The Company is actively evaluating the overall impact on CBPO’s business, and has decided to postpone the release of financial guidance for the full year 2020. The Company will provide financial guidance to the market when it has better visibility.

Conference Call

The Company will host a conference call at 7:30 a.m. Eastern Time on Friday, March 13, 2020, which is 7:30 p.m. Beijing Time on March 13, 2020, to discuss its fourth quarter and fiscal year 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 March 20, 2020. The dial-in details are:

US:

1 877 344 7529

International:

1 412 317 0088

Passcode:

10139946

A live and archived webcast of the conference call will be available through the Company’s investor relations website at View Source