China Biologic Products, Inc. reported consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, total sales increased by 12.2% in RMB terms and 16.1% in USD terms to $90.1 million from $77.6 million in the same quarter of 2016. The increase was primarily attributable to the increase in the sales of placenta polypeptide products and certain immunoglobulin products, which was partly offset by the decrease in the sales of human albumin products. Income from operations was decreased by 15.5% to $19.6 million from $23.2 million in the same quarter of 2016. Net loss attributable to the company, factoring in one-time $40.3 million income tax charge, was $24.6 million compared to net income attributable to the company of $19.4 million in the same quarter of 2016. Fully diluted loss per share was $0.86 compared to fully diluted earnings per share of $0.69 in the same quarter of 2016. Non-GAAP adjusted net income attributable to the company decreased by 6.8% in RMB terms and 3.7% in USD terms to $25.9 million from $26.9 million in the same quarter of 2016. Non-GAAP adjusted earnings per share decreased to $0.90 from $0.95 in the same quarter of 2016.

For the year, sales were $370,406,840 against $341,169,426 a year ago. Income from operations was $135,858,505 against $143,914,622 a year ago. Interest income was $7,623,624 against $7,815,780 a year ago. Earnings before income tax expense were $146,407,768 against $153,919,241 a year ago. Net income attributable to the company was $67,943,035 against $104,779,307 a year ago. Diluted earnings per share were $2.38 against $3.74 a year ago. Non-GAAP adjusted net income attributable to the Company increased by 13.7% in RMB terms, or 11.4% in USD terms, to $141.2 million from $126.8 million in 2016. Fully diluted non-GAAP adjusted net income per share increased to $4.95 from $4.52 in 2016. Net cash provided by operating activities was $102.2 million as compared to $123.3 million for 2016. The decrease in net cash provided by operating activities was primarily due to an increase in accounts receivable and inventories, which was partially offset by an increase in other payables and accrued liabilities during 2017. Payment for property, plant and equipment was $37,504,440 as compared to $49,371,318 for 2016. Payment for intangible assets and land use rights was $786,691 as compared to $1,635,891 for 2016.

For the full year of 2018, the company expects total sales to grow 18% to 20% in RMB terms and non-GAAP adjusted net income to grow 16% to 18% in RMB terms over 2017 financial results. These projections factor in the estimated 2018 financial results of TianXinFu in which the Company acquired 80% interests at the beginning of 2018. Excluding the TianXinFu contribution, estimated sales for 2018 are expected to grow 6% to 8% in RMB terms and non-GAAP adjusted net income is expected to grow 3% to 4% in RMB terms over 2017 financial results. The 2018 non-GAAP adjusted net income projection excludes non-cash employee share-based compensation expenses and non-cash intangible assets amortization expense associated with the TianXinFu acquisition.