China Biologic Products, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company's sales were USD 112,464,890 compared to USD 91,453,112 a year ago. sales increased by 13.7%. The increase was primarily attributable to an USD 11.4 million contribution from TianXinFu, which accounted for approximately 10.1% of total sales for the quarter. Income from operations for the first quarter of 2018 increased by 0.5% to USD 39.0 million from USD 38.8 million in the same period of 2017. Operating margin decreased to 34.7% in the first quarter of 2018 from 42.4% in the same quarter of 2017. Net income attributable to the Company increased by 5.3% to USD 31.6 million in the first quarter of 2018 from USD 30.0 million in the same quarter of 2017. Diluted net earnings per share decreased to USD 0.92 in the first quarter of 2018 compared to USD 1.06 in the same quarter of 2017. Non-GAAP adjusted net income attributable to the Company increased by 2.1% in RMB terms, or 10.4% in USD terms, to USD 41.3 million in the first quarter of 2018 from USD 37.4 million in the same quarter of 2017. Non-GAAP adjusted net income per diluted share decreased to USD 1.21 in the first quarter of 2018 from USD 1.32 in the same quarter of 2017. Excluding TianXinFu, Non-GAAP adjusted net income attributable to the company decreased by 12.1% in RMB terms, or 4.8% in USD terms in the first quarter of 2018 compared to the same quarter of 2017. Non-GAAP adjusted net income and diluted earnings per share for the first quarter of 2018 exclude USD 8.3 million in non-cash employee share-based compensation expenses and USD 1.5 million in intangible assets amortization expense related to the acquisition of TianXinFu. Net cash provided by operating activities for the first quarter of 2018 was USD 23.3 million, including a USD 4.5 million contribution from TianXinFu, compared to USD 13.0 million for the same quarter of 2017. Payment for property, plant and equipment was USD 11,048,396 compared to USD 8,936,981 a year ago. Payment for intangible assets and land use rights was USD 255,664 compared to USD 151,326 a year ago.Net cash provided by or operating activities was negatively impacted by a decrease in net income, decrease in accounts payable and increase in prepayments and deferred expense and an increase in inventory compared to first quarter 2017.

For the full year of 2018, the Company previously published a guidance of total sales growth of 18% to 20% in RMB terms and non-GAAP adjusted net income growth of 16% to 18% in RMB terms over 2017 financial results. Excluding TianXinFu, 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.