1Q12 Revenue was RMB60.3 Million ($9.6
Million)
1Q12 Net Income was RMB0.7 Million ($0.1
Million)
1Q12 Non-GAAP Adjusted Net Income was RMB1.4
Million ($0.2 Million)
Live conference call to be held Thursday, May 24,
2012 at 8:00 am ET
China Nuokang Bio-Pharmaceutical Inc. (Nasdaq:NKBP) ("Nuokang" or
the "Company"), a leading China-based biopharmaceutical company
focused on the research, development, manufacture, marketing and
sales of hospital-based medical products, today announced unaudited
financial results for the first quarter of 2012.
Mr. Baizhong Xue, the Company's Chairman and Chief Executive
Officer, stated, "We are pleased to announce financial results for
the first quarter of 2012 which demonstrate that Nuokang has been
gradually recovering through our restructuring efforts. This
quarter, revenue from our flagship Baquting product recovered
sequentially to RMB57.5 million from RMB52.2 million in the fourth
quarter of 2011. Our marketing agent sales remained strong. Our
direct sales, although weak compared to the prior year period,
recovered noticeably from the fourth quarter of 2011. This is
especially significant in light of the first quarter historically
being our seasonally weaker period as it coincides with the Chinese
New Year. We are encouraged by these positive signs and continue to
believe in the potential of our product portfolio.
"We continue to focus on strengthening our business through
several measures. First, we continue to adjust our sales strategy
for Baquting to better adapt to an increasingly competitive
landscape. Next, we are diversifying our product portfolio by
investing in market education and clinical trials for new products
to generate greater recognition for their efficacy and safety.
Lastly, we will maintain a strong balance sheet and operating cash
flows. Looking ahead, we anticipate gradual recovery in revenue and
profit."
First Quarter 2012 Financial Highlights
- Revenue was RMB60.3 million ($9.6 million)1 compared to RMB64.5
million in the prior year period;
- Baquting revenue was RMB57.5 million ($9.1 million) compared to
RMB60.8 million in the prior year period;
- Gross profit was RMB52.1 million ($8.3 million) compared to
RMB56.3 million in the prior year period;
- Gross margin was 86.5% compared to 87.2% in the prior year
period;
- Operating income was RMB747,000 ($119,000) compared to RMB17.9
million in the prior year period;
- Net income was RMB700,000 ($111,000), or RMB0.04 ($0.01) per
diluted ADS2 compared to RMB10.9 million, or RMB0.55 per diluted
ADS, in the prior year period; and
- Non-GAAP adjusted net income was RMB1.4 million ($216,000)
compared to RMB13.8 million in the prior year period.
First Quarter 2012 Financial Performance
Revenue for the first quarter of 2012 was RMB60.3 million ($9.6
million) compared to RMB64.5 million in the first quarter of 2011.
Revenue from Baquting decreased to RMB57.5 million ($9.1 million)
from RMB60.8 million in the prior year period but increased
sequentially from RMB52.2 million in the fourth quarter of 2011.
This sequential growth reflects the gradual stabilization of the
Company's sales team structure and performance. Baquting revenue as
a percentage of total revenue was 95.4% in the first quarter of
2012 compared to 94.2% in first quarter of 2011. Revenue from other
products was RMB2.7 million ($0.4 million) compared to RMB3.8
million in the prior year period.
Gross profit for the first quarter of 2012 was RMB52.1 million
($8.3 million) compared to RMB56.3 million in the first quarter of
2011. Gross margin was 86.5% compared to 87.2% in the first quarter
of 2011. This margin recovery reflects the nascent recovery of the
Company's direct sales team's performance as well as the continued
strong performance of its marketing agent sales.
Operating income was RMB747,000 ($119,000) compared to RMB17.9
million in the prior year period. This continues to reflect the
Company's focus on strengthening its sales and marketing team for
both Baquting and the Company's new products throughout the first
quarter of 2012.
Research and development expenses were RMB2.7 million ($0.4
million) compared to RMB4.2 million in the prior year period.
Research and development expenses as a percentage of revenue was
4.5%, within the Company's expected range.
Selling, marketing and distribution expenses increased 69.2% to
RMB35.8 million ($5.7 million) from RMB21.2 million in the prior
year period. This was primarily due to the Company's investment in
sales and marketing for Baquting in the first quarter of 2012 to
combat similar increases in marketing activities by industry peers
as well as the Company's continued investment in the
commercialization of Kaitong and Alpha Lipoic Acid Capsule. Sales,
marketing and distribution expense ratio for the first quarter of
2012 was sequentially lower. The Company expects this ratio will
continue to decrease as revenues from new products ramp up.
General and administrative expenses remained steady and in line
with the Company's expected range at RMB12.9 million ($2.0 million)
from the prior year period.
Provision for income taxes was RMB358,000 ($57,000) compared to
RMB4.6 million in the prior year period, as a result of decreased
income before tax.
Net income was RMB700,000 ($111,000), or RMB0.04 ($0.01) per
diluted ADS compared to RMB10.9 million, or RMB0.55 per diluted
ADS, in the prior year period.
Non-GAAP adjusted net income, excluding share-based
compensation, foreign exchange gains and losses and FIN 48
adjustment, was RMB1.4 million ($216,000) compared to RMB13.8
million in the prior year period.
For the quarter ended March 31, 2012, the Company had
approximately 154.8 million weighted average diluted ordinary
shares outstanding, or 19.4 million weighted average diluted
ADSs.
As of March 31, 2012, the Company had cash and cash equivalents
and other short-term investments of RMB231.9 million ($36.8
million) compared to RMB179.4 million as of December 31, 2011.
New Product Performance
The Company continued to make progress with market education and
sales channel development for Kaitong and Alpha Lipoic Acid Capsule
("ALA"). For Kaitong, the Company has recently won bids for two
additional provinces, bringing the total to ten provinces and four
military zones.
For Dianatal® and the new cardiovascular product, the Company is
awaiting final-stage SFDA review of testing results. The Company
expects SFDA approval by the end of 2012 for both products.
Non-GAAP Measures
Adjusted net income is presented to better illustrate the
Company's ongoing and core operational results. Adjusted net income
is defined as net income excluding share-based compensation
expense, foreign exchange losses, and FIN 48 adjustment. Adjusted
net income may be calculated differently, and therefore Nuokang's
adjusted net income may not be comparable to similarly titled
measures of other companies. Adjusted net income is not a measure
of financial performance under U.S. generally accepted accounting
principles (GAAP), and should not be considered in isolation or as
an alternative to net income, cash flows from operating activities
and other measures determined in accordance with GAAP. Items
excluded from adjusted net income are significant and necessary
components to the operations of the Company's business, and,
therefore, adjusted net income should only be used as a
supplemental measure of operating performance.
Conference Call
The Company will hold a conference call at 8:00 a.m. ET on
Thursday, May 24, 2012 to discuss the first quarter 2012 financial
results. Listeners may access the call by dialing:
United States toll free: |
1-855-500-8701 |
China toll free: |
400-1200654 |
Hong Kong toll free: |
800-903737 |
United Kingdom toll free: |
0800-0159724 |
International: |
65-6723-9385 |
Conference ID: |
78456828 |
A telephone replay will become available beginning two hours
after the conclusion of the call and will remain available through
June 7, 2012. Listeners may access the replay by dialing:
United States toll free: |
1-866-214-5335 |
International: |
61-2-8235-5000 |
Conference ID: |
78456828 |
A webcast will also be available through the Company's website
www.nkbp.com.
About China Nuokang Bio-Pharmaceutical Inc.
China Nuokang Bio-Pharmaceutical Inc. (Nasdaq:NKBP) is a leading
biopharmaceutical company in China focused on the research,
development, manufacture, marketing and sales of hospital-based
medical products. The Company provides a diversified portfolio of
products across more than 4,200 hospitals in China. Nuokang's
principal products include Baquting®, China's leading hemocoagulase
product by market share, Kaitong®, a lipid emulsion alprostadil
product for the treatment of peripheral vascular diseases,
cardiocerebral microcirculation disorders and post-surgery
thrombosis; and alpha lipoic acid capsules, or ALA, an antioxidant
product that addresses diabetic neuropathy. The Company's product
pipeline includes product candidates under development in
hematological, cardiovascular and cerebrovascular disease
diagnosis, treatment and prevention. Please visit www.nkbp.com for
more information.
Safe-Harbor Statement
This press release contains statements of a forward-looking
nature. These statements, including the management quotations and
the statements relating to the Company's new product development,
are made under the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including certain plans,
expectations, goals, and projections, which are subject to numerous
assumptions, risks, and uncertainties. These forward-looking
statements may include, but are not limited to, statements
containing words such as "may," "could," "would," "plan,"
"anticipate," "believe," "estimate," "predict," "potential,"
"expects," "intends" and "future" or similar expressions. Among
other things, the statements relating to the Company's expected
progress on the product portfolio and future financial results may
contain forward-looking statements. These forward-looking
statements speak only as of the date of this press release and are
subject to change at any time. These forward-looking statements are
based upon management's current expectations and are subject to a
number of risks, uncertainties and contingencies, many of which are
beyond the Company's control that may cause actual results, levels
of activity, performance or achievements to differ materially from
any future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. The
Company's actual results could differ materially from those
contained in the forward-looking statements due to a number of
factors, including those described under the heading "Risk Factors"
in the Company's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F.
1 This announcement contains translations of certain Renminbi
amounts into US dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to US dollars as of and for the quarter ended March
31, 2012, were made at the noon buying rate of RMB6.2975 to USD1.00
on March 30, 2012 in the City of New York for cable transfers in
Renminbi per US dollar as certified for customs purposes by the
Federal Reserve Bank of New York. China Nuokang Bio-Pharmaceutical
Inc. makes no representation that the Renminbi or US dollar amounts
referred to in this press release could have been or could be
converted into US dollars or Renminbi, at any particular rate or at
all.
2 The Company's American Depositary Shares, which are traded on
the NASDAQ, each of which represents eight ordinary shares of the
Company.
CONSOLIDATED STATEMENTS
OF INCOME |
FOR THE QUARTERS ENDED
MARCH 31, 2011 AND 2012 |
|
|
|
|
|
|
|
|
|
1Q 2011 |
1Q
2012 |
|
(RMB'000) |
(RMB'000) |
(US$'000) |
|
|
|
|
Net revenue |
64,519 |
60,285 |
9,573 |
Cost of revenue |
(8,265) |
(8,156) |
(1,295) |
|
|
|
|
Gross profit |
56,254 |
52,129 |
8,278 |
|
|
|
|
Operating expenses |
|
|
|
Research and development costs |
(4,223) |
(2,684) |
(426) |
Selling, marketing and distribution
expenses |
(21,163) |
(35,804) |
(5,685) |
General and administrative expenses |
(12,946) |
(12,894) |
(2,047) |
|
|
|
|
Total operating expenses |
(38,332) |
(51,382) |
(8,159) |
|
|
|
|
Operating profit |
17,922 |
747 |
119 |
Interest income |
184 |
502 |
80 |
Interest expense |
(1,056) |
(242) |
(38) |
Foreign exchange (losses) gain |
(1,361) |
32 |
5 |
Other (loss) income, net |
(165) |
12 |
2 |
|
|
|
|
Income before income tax expense |
15,524 |
1,051 |
167 |
Income tax expense |
(4,619) |
(358) |
(57) |
|
|
|
|
Net income |
10,905 |
693 |
110 |
|
|
|
|
Net loss attributable to non-controlling
interest |
27 |
7 |
1 |
|
|
|
|
Net income attributed
to ordinary shares |
10,932 |
700 |
111 |
|
|
|
|
Net income per share |
|
|
|
Basic |
0.07 |
0.00 |
0.00 |
Diluted |
0.07 |
0.00 |
0.00 |
|
|
|
|
Shares used in net income pershare
computation |
|
|
|
Basic |
158,524,942 |
153,693,170 |
153,693,170 |
Diluted |
159,205,942 |
154,826,170 |
154,826,170 |
|
|
|
|
Net income per ADS |
|
|
|
Basic |
0.55 |
0.04 |
0.01 |
Diluted |
0.55 |
0.04 |
0.01 |
|
|
|
|
Shares used in net income per ADS
computation |
|
|
|
Basic |
19,815,618 |
19,211,646 |
19,211,646 |
Diluted |
19,900,743 |
19,353,271 |
19,353,271 |
|
|
CONSOLIDATED BALANCE
SHEETS |
AS OF DECEMBER 31, 2011
and MARCH 31, 2012 |
|
|
|
|
|
December 31 |
March
31, |
|
2011 |
2012 |
|
(RMB'000) |
(RMB'000) |
(US$'000) |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
179,385 |
191,881 |
30,469 |
Restricted cash |
5,410 |
4,328 |
687 |
Short-term investments |
-- |
40,000 |
6,352 |
Accounts receivable (net of allowance for
doubtful accounts of RMB394 and RMB394 (US$63) as of December 31,
2011 and March 31, 2012, respectively) |
60,767 |
58,886 |
9,351 |
Bills receivable |
109,256 |
45,755 |
7,266 |
Inventories |
15,846 |
16,393 |
2,603 |
Prepayments |
18,020 |
17,857 |
2,836 |
Other receivables |
7,203 |
5,764 |
915 |
Prepaid income tax |
8,179 |
7,943 |
1,261 |
Deferred tax assets |
1,040 |
784 |
124 |
|
|
|
|
Total current assets |
405,106 |
389,591 |
61,864 |
|
|
|
|
Non-current assets: |
|
|
|
Property, plant and equipment, net |
214,171 |
212,160 |
33,690 |
Land use rights, net |
35,121 |
34,951 |
5,550 |
Intangible assets, net |
21,212 |
20,618 |
3,274 |
Other Investments |
3,414 |
3,414 |
542 |
Prepayments |
15,884 |
24,048 |
3,819 |
Deferred tax assets |
7,406 |
9,373 |
1,488 |
|
|
|
|
Total non-current assets |
297,208 |
304,564 |
48,363 |
|
|
|
|
TOTAL ASSETS |
702,314 |
694,155 |
110,227 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term bank loans |
7,000 |
7,000 |
1,112 |
Accounts payable |
1,501 |
2,292 |
364 |
Accrued expenses and other payables |
34,863 |
23,778 |
3,776 |
Income tax payable |
3,312 |
3,886 |
617 |
Unrecognized tax benefits |
2,656 |
3,156 |
501 |
|
|
|
|
Total current liabilities |
49,332 |
40,112 |
6,370 |
|
|
|
|
Non-current
liabilities: |
|
|
|
Deferred tax liabilities |
2,036 |
2,130 |
338 |
Deferred government grants |
23,185 |
24,126 |
3,831 |
Long-term payable |
12,934 |
13,142 |
2,087 |
|
|
|
|
Total non-current liabilities |
38,155 |
39,398 |
6,256 |
|
|
|
|
Commitments and
contingencies |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
Ordinary shares (par value US$0.0005 per
share, 474,200,000 shares authorized and 157,906,470 shares issued
and outstanding as of December 31, 2011; 474,200,000 shares
authorized and 157,417,702 shares issued and outstanding as of
March 31, 2012) |
581 |
579 |
92 |
Additional paid-in capital |
469,107 |
469,298 |
74,521 |
Retained earnings |
143,180 |
142,816 |
22,678 |
|
|
|
|
Total shareholders'
equity |
612,868 |
612,693 |
97,291 |
|
|
|
|
Non-controlling
interests |
1,959 |
1,952 |
310 |
|
|
|
|
TOTAL EQUITY |
614,827 |
614,645 |
97,601 |
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
702,314 |
694,155 |
110,227 |
|
|
CONSOLIDATED
RECONCILIATION OF NON-GAAP ADJUSTED NET INCOME |
FOR THE QUARTERS ENDED
MARCH 31, 2011 AND 2012 |
|
|
|
|
|
|
|
|
|
1Q 2011 |
1Q
2012 |
|
(RMB'000) |
(RMB'000) |
(US$'000) |
|
|
|
|
GAAP net income |
10,932 |
700 |
111 |
|
|
|
|
Foreign exchange losses (gain) |
1,361 |
(32) |
(5) |
Share-based compensation expenses |
1,470 |
191 |
30 |
Fin 48 adjustment |
-- |
500 |
80 |
|
|
|
|
Non-GAAP net income |
13,763 |
1,359 |
216 |
|
|
|
|
CONTACT: China Nuokang Bio-Pharmaceutical Inc.
Mr. Steven Duan
Vice President of Investor Relations
Email: dsz@nkbp.com
ICR, Inc.
Mr. Rob Koepp
Tel: (+86) 10-6583-7516 or (646) 405-5180
Email: robert.koepp@icrinc.com
Grafico Azioni China Nuokang Bio-Pharmaceutical Inc. ADS, Each Representing Eight Ordinary Shares (MM) (NASDAQ:NKBP)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni China Nuokang Bio-Pharmaceutical Inc. ADS, Each Representing Eight Ordinary Shares (MM) (NASDAQ:NKBP)
Storico
Da Lug 2023 a Lug 2024