Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-34566 |
Entity Incorporation, State or Country Code | KY |
Entity Address, Address Line One | 18th Floor, Jialong International Building |
Entity Address, Address Line Two | 19 Chaoyang Park Road |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100125 |
Entity Address, Country | CN |
Title of 12(b) Security | Ordinary Shares, par value $0.0001 per share |
Trading Symbol | CBPO |
Security Exchange Name | NASDAQ |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | China Biologic Products Holdings, Inc. |
Entity Central Index Key | 0001369868 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 38,459,769 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Business Contact [Member] | |
Entity Address, Address Line One | 18th Floor, Jialong International Building |
Entity Address, Address Line Two | 19 Chaoyang Park Road |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100125 |
Entity Address, Country | CN |
Contact Personnel Name | Joseph Chow |
City Area Code | 10 |
Local Phone Number | 6598-3111 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 161,750,425 | $ 338,880,559 |
Time deposits | 497,676,069 | 537,478,040 |
Short term investments | 267,830,790 | 76,048,594 |
Accounts receivable, net of allowance for doubtful accounts | 100,270,436 | 125,115,842 |
Inventories | 250,728,260 | 243,295,512 |
Prepayments and other current assets | 21,469,418 | 36,369,275 |
Total Current Assets | 1,299,725,398 | 1,357,187,822 |
Property, plant and equipment, net | 177,596,563 | 178,327,361 |
Intangible assets, net | 44,068,061 | 53,258,871 |
Land use rights, net | 28,458,944 | 32,204,342 |
Equity method investment | 16,725,513 | 15,428,028 |
Prepayments for investments in equity securities | 0 | 10,812,893 |
Long term equity investments | 10,812,893 | |
Loan receivable | 35,642,340 | 39,942,591 |
Goodwill | 308,509,397 | 313,588,803 |
Other non-current assets | 16,319,388 | 9,227,970 |
Consolidated total assets | 1,937,858,497 | 2,009,978,681 |
Current Liabilities | ||
Accounts payable | 6,262,256 | 11,404,642 |
Income tax payable | 13,303,085 | 11,010,347 |
Other payables and accrued expenses | 99,743,350 | 99,933,793 |
Total Current Liabilities | 119,308,691 | 122,348,782 |
Deferred income | 2,300,428 | 2,824,212 |
Non-current income tax payable | 24,905,728 | 26,899,038 |
Other liabilities | 16,491,793 | 13,203,485 |
Total Liabilities | 163,006,640 | 165,275,517 |
Shareholders' Equity | ||
Ordinary share: par value $0.0001; 100,000,000 shares authorized; 41,910,701 and 41,616,320 shares issued at December 31, 2019 and 2018, respectively; 38,459,769 and 39,361,616 shares outstanding at December 31, 2019 and 2018, respectively | 4,191 | 4,162 |
Additional paid-in capital | 1,158,274,206 | 1,189,698,494 |
Treasury share: 3,450,932 and 2,254,704 shares at December 31, 2019 and 2018, respectively, at cost | (167,432,883) | (56,425,094) |
Retained earnings | 773,290,486 | 634,482,738 |
Accumulated other comprehensive losses | (68,421,408) | (45,710,701) |
Total equity attributable to China Biologic Products Holdings, Inc. | 1,695,714,592 | 1,722,049,599 |
Noncontrolling interest | 79,137,265 | 122,653,565 |
Total Shareholders' Equity | 1,774,851,857 | 1,844,703,164 |
Commitments and contingencies | ||
Total Liabilities and Shareholders' Equity | $ 1,937,858,497 | $ 2,009,978,681 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 41,910,701 | 41,616,320 |
Common Stock, Shares, Outstanding | 38,459,769 | 39,361,616 |
Treasury Stock, Shares | 3,450,932 | 2,254,704 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Sales | $ 503,744,922 | $ 466,877,569 | $ 370,406,840 |
Cost of sales | 174,666,544 | 146,787,236 | 125,517,021 |
Gross profit | 329,078,378 | 320,090,333 | 244,889,819 |
Operating expenses | |||
Selling expenses | 80,319,448 | 95,575,830 | 34,843,935 |
General and administrative expenses | 73,376,457 | 68,817,340 | 67,683,667 |
Research and development expenses | 11,734,590 | 9,524,412 | 6,503,712 |
Income from operations | 163,647,883 | 146,172,751 | 135,858,505 |
Other income (expenses) | |||
Equity in income of an equity method investee | 1,587,067 | 2,368,995 | 3,509,071 |
Interest income | 21,322,239 | 13,706,750 | 7,623,624 |
Interest expense | (557,597) | (338,136) | (583,432) |
Other income, net | 5,494,119 | 4,092,935 | 0 |
Total other income, net | 27,845,828 | 19,830,544 | 10,549,263 |
Income before income tax expense | 191,493,711 | 166,003,295 | 146,407,768 |
Income tax expense | 28,098,525 | 18,036,180 | 64,171,809 |
Net income | 163,395,186 | 147,967,115 | 82,235,959 |
Less: Net income attributable to noncontrolling interest | 24,587,438 | 19,910,813 | 14,292,924 |
Net income attributable to China Biologic Products Holdings, Inc. | $ 138,807,748 | $ 128,056,302 | $ 67,943,035 |
Earnings per share of ordinary share: | |||
Basic | $ 3.55 | $ 3.54 | $ 2.40 |
Diluted | $ 3.53 | $ 3.53 | $ 2.38 |
Weighted average shares used in computation: | |||
Basic | 38,657,553 | 35,304,294 | 27,361,561 |
Diluted | 38,897,964 | 35,432,959 | 27,605,623 |
Net income | $ 163,395,186 | $ 147,967,115 | $ 82,235,959 |
Other comprehensive (losses)/income: | |||
Other comprehensive income | (20,376,586) | (60,783,829) | 36,861,394 |
Comprehensive income | 143,018,600 | 87,183,286 | 119,097,353 |
Less: Comprehensive income attributable to noncontrolling interest | 21,694,640 | 12,794,989 | 17,876,743 |
Comprehensive income attributable to China Biologic Products Holdings, Inc. | $ 121,323,960 | $ 74,388,297 | $ 101,220,610 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Foreign currency translation adjustment, taxes | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Ordinary share [Member] | Additional paid-in capital [Member] | Treasury stock [Member] | Retained earnings [Member] | Accumulated other comprehensive income (losses) [Member] | Equity attributable to China Biologic Products Holdings, Inc. [Member] | Noncontrolling interest [Member] | Total |
Balance at Dec. 31, 2016 | $ 2,943 | $ 105,459,610 | $ (56,425,094) | $ 438,483,401 | $ (25,320,271) | $ 462,200,589 | $ 58,936,234 | $ 521,136,823 |
Balance (in shares) at Dec. 31, 2016 | 29,427,609 | |||||||
Net income | $ 0 | 0 | 0 | 67,943,035 | 0 | 67,943,035 | 14,292,924 | 82,235,959 |
Other comprehensive income | 0 | 0 | 0 | 0 | 33,277,575 | 33,277,575 | 3,583,819 | 36,861,394 |
Dividend declared to a noncontrolling interest shareholder | 0 | 0 | 0 | 0 | 0 | 0 | (10,680,008) | (10,680,008) |
Share-based compensation | 0 | 33,903,283 | 0 | 0 | 0 | 33,903,283 | 0 | 33,903,283 |
Ordinary share issued in connection with: | ||||||||
Exercise of stock options | $ 9 | 867,537 | 0 | 0 | 0 | 867,546 | 0 | $ 867,546 |
Exercise of stock options (in shares) | 85,242 | 85,242 | ||||||
Vesting of restricted shares | $ 35 | (35) | 0 | 0 | 0 | 0 | 0 | $ 0 |
Vesting of restricted shares (in shares) | 353,694 | |||||||
Balance at Dec. 31, 2017 | $ 2,987 | 140,230,395 | (56,425,094) | 506,426,436 | 7,957,304 | 598,192,028 | 66,132,969 | 664,324,997 |
Balance (in shares) at Dec. 31, 2017 | 29,866,545 | |||||||
Net income | $ 0 | 0 | 0 | 128,056,302 | 0 | 128,056,302 | 19,910,813 | 147,967,115 |
Other comprehensive income | 0 | 0 | 0 | 0 | (53,668,005) | (53,668,005) | (7,115,824) | (60,783,829) |
Dividend declared to a noncontrolling interest shareholder | 0 | 0 | 0 | 0 | 0 | 0 | (10,145,395) | (10,145,395) |
Share-based compensation | 0 | 23,130,570 | 0 | 0 | 0 | 23,130,570 | 0 | 23,130,570 |
Issuance of ordinary shares in private placement | $ 585 | 590,264,415 | 590,265,000 | 590,265,000 | ||||
Issuance of ordinary shares in private placement (Shares) | 5,850,000 | |||||||
Issuance of ordinary shares to PWM in exchange for 80% equity interest of TianXinFu | $ 552 | 434,888,618 | 434,889,170 | 53,871,002 | 488,760,172 | |||
Issuance of ordinary shares to PWM in exchange for 80% equity interest of TianXinFu (Shares) | 5,521,000 | |||||||
Ordinary share issued in connection with: | ||||||||
Exercise of stock options | $ 12 | 1,184,522 | 0 | 0 | 0 | 1,184,534 | 0 | $ 1,184,534 |
Exercise of stock options (in shares) | 121,945 | 121,945 | ||||||
Vesting of restricted shares | $ 26 | (26) | 0 | 0 | 0 | 0 | 0 | $ 0 |
Vesting of restricted shares (in shares) | 256,830 | |||||||
Balance at Dec. 31, 2018 | $ 4,162 | 1,189,698,494 | (56,425,094) | 634,482,738 | (45,710,701) | 1,722,049,599 | 122,653,565 | 1,844,703,164 |
Balance (in shares) at Dec. 31, 2018 | 41,616,320 | |||||||
Net income | $ 0 | 0 | 0 | 138,807,748 | 0 | 138,807,748 | 24,587,438 | 163,395,186 |
Other comprehensive income | 0 | 0 | 0 | 0 | (17,483,788) | (17,483,788) | (2,892,798) | (20,376,586) |
Dividend declared to a noncontrolling interest shareholder | 0 | 0 | 0 | 0 | 0 | 0 | (10,124,707) | (10,124,707) |
Share-based compensation | 0 | 26,600,015 | 0 | 0 | 0 | 26,600,015 | 0 | 26,600,015 |
Acquisition of noncontrolling interests | (58,636,048) | (5,226,919) | (63,862,967) | (55,086,233) | (118,949,200) | |||
Share repurchase | (111,007,789) | (111,007,789) | (111,007,789) | |||||
Ordinary share issued in connection with: | ||||||||
Exercise of stock options | $ 5 | 611,769 | 0 | 0 | 0 | 611,774 | 0 | $ 611,774 |
Exercise of stock options (in shares) | 49,900 | 49,900 | ||||||
Vesting of restricted shares | $ 24 | (24) | 0 | 0 | 0 | 0 | 0 | $ 0 |
Vesting of restricted shares (in shares) | 244,481 | |||||||
Balance at Dec. 31, 2019 | $ 4,191 | $ 1,158,274,206 | $ (167,432,883) | $ 773,290,486 | $ (68,421,408) | $ 1,695,714,592 | $ 79,137,265 | $ 1,774,851,857 |
Balance (in shares) at Dec. 31, 2019 | 41,910,701 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) | Dec. 31, 2018 |
TianXinFu | |
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 163,395,186 | $ 147,967,115 | $ 82,235,959 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 16,517,254 | 13,809,041 | 11,691,731 |
Amortization | 9,723,617 | 9,416,310 | 1,216,959 |
Loss on disposal of property, plant and equipment | 297,504 | 1,001,000 | 3,228,845 |
Fair value changes of short term investments | 350,816 | ||
(Reversal of) /Allowance for doubtful accounts - accounts receivable | (77,624) | 655,148 | 23,783 |
(Reversal of) /Allowance for doubtful accounts - prepayments and other receivables | (24,959) | 96,267 | 0 |
Impairment for other non-current assets | 0 | 2,671,528 | 0 |
Write-down of inventories to net realizable value | 3,379,600 | 0 | 0 |
Deferred income tax benefit | (2,437,244) | (4,159,890) | (3,252,516) |
Share-based compensation | 26,600,015 | 23,130,570 | 33,903,283 |
Equity in income of an equity method investee | (1,587,067) | (2,368,995) | (3,509,071) |
Change in operating assets and liabilities, net of effect of acquisition of TianXinFu: | |||
Accounts receivable | 22,132,899 | (53,879,876) | (39,918,939) |
Inventories | (14,848,008) | (42,594,485) | (42,078,261) |
Prepayments and other current assets | 4,403,945 | (9,387,783) | (1,777,783) |
Accounts payable | (1,298,670) | 8,140,553 | 977,152 |
Income tax payable | 2,499,525 | (3,575,544) | 6,047,808 |
Other payables and accrued expenses | 2,792,697 | 23,693,979 | 16,821,694 |
Deferred income | (483,833) | (504,886) | (493,897) |
Non-current income tax payable | (1,993,310) | (10,168,100) | 37,067,138 |
Net cash provided by operating activities | 229,342,343 | 103,941,952 | 102,183,885 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cash acquired from acquisition of TianXinFu | 0 | 97,702,278 | 0 |
Purchase of time deposit | (1,682,444,149) | (1,871,773,012) | (22,669,000) |
Proceeds from maturity of time deposit | 1,718,265,827 | 1,349,949,821 | 0 |
Purchase of short term investments | (924,056,075) | (855,074,467) | 0 |
Proceeds from maturity of short term investments | 727,962,833 | 767,654,706 | 0 |
Payment for property, plant and equipment | (24,287,087) | (31,743,146) | (37,504,440) |
Payment for intangible assets and land use rights | (149,010) | (4,973,244) | (786,691) |
Proceeds from disposal of property, plant and equipment and land use rights | 4,563,433 | 124,560 | 64,914 |
Prepayments for investments in equity securities | 0 | (10,812,893) | 0 |
Net cash used in investing activities | (180,144,228) | (558,945,397) | (60,895,217) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from stock option exercised | 611,774 | 1,184,534 | 867,546 |
Proceeds from short-term bank loans | 0 | 0 | 23,009,280 |
Repayment of short-term bank loans | 0 | 0 | (23,412,060) |
Dividend paid by subsidiaries to noncontrolling interest shareholders | (10,124,707) | (10,145,395) | (18,789,151) |
Proceeds from issuance of ordinary shares | 0 | 590,265,000 | 0 |
Prepayment to an investment bank for potential share repurchase | 0 | (10,000,000) | 0 |
Payment to an investment bank for share repurchase | (110,042,776) | ||
Refund of prepayment to an investment bank for share repurchase | 9,034,987 | ||
Acquisition of noncontrolling interest | (118,949,200) | 0 | 0 |
Net cash provided by/ (used in) financing activities | (229,469,922) | 571,304,139 | (18,324,385) |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 3,141,673 | 3,243,017 | 12,607,032 |
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS | (177,130,134) | 119,543,711 | 35,571,315 |
Cash at beginning of year | 338,880,559 | 219,336,848 | 183,765,533 |
Cash at end of year | 161,750,425 | 338,880,559 | 219,336,848 |
Supplemental cash flow information | |||
Cash paid for income taxes | 30,358,013 | 35,449,581 | 24,691,429 |
Cash paid for interest expense | 0 | 0 | 252,353 |
Noncash investing and financing activities: | |||
Acquisition of property, plant and equipment included in payables | 3,154,835 | 3,687,742 | 7,548,964 |
Set-off loan receivable against accounts payable | 3,716,055 | 3,784,297 | 0 |
Share repurchase using the prepayment to an investment bank | 111,007,789 | ||
Fair value of noncash assets acquired and liabilities assumed in acquisition of Tianxinfu | $ 0 | $ 337,186,892 | $ 0 |
DESCRIPTION OF BUSINESS AND SIG
DESCRIPTION OF BUSINESS AND SIGNIFICANT CONCENTRATIONS AND RISKS | 12 Months Ended |
Dec. 31, 2019 | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT CONCENTRATIONS AND RISKS | |
DESCRIPTION OF BUSINESS AND SIGNIFICANT CONCENTRATIONS AND RISKS | NOTE 1 – DESCRIPTION OF BUSINESS AND SIGNIFICANT CONCENTRATIONS AND RISKS China Biologic Products Holdings, Inc. (“CBP”) and its subsidiaries (collectively, the “Company”), are principally engaged in the research, development, manufacturing and sales of biopharmaceutical products in the People’s Republic of China (the “PRC”). Biopharmaceutical products include plasma-based products and placenta polypeptide. All of the biopharmaceutical products are prescription medicines administered in the form of injections. The principal plasma products are human albumin and human immunoglobulin for intravenous injection (“IVIG”). The PRC subsidiaries own and operate plasma collection stations that purchase and collect plasma from individual donors. The plasma is processed into finished goods after passing through a series of fractionating processes. On January 1, 2018, the Company acquired 80% equity interest in TianXinFu (Beijing) Medical Appliance Co., Ltd. (“TianXinFu”), a medical device company primarily engaging in manufacturing and sale of regenerative medical biomaterial products. Biomaterial products include artificial dura mater and spinal dura mater products, with extracted collagen as the main raw material, which are applied in brain and spinal surgeries. On June 28, 2019, Taibang Biotech (Shandong) Co., Ltd., an indirect wholly-owned subsidiary of the Company, entered into a share purchase agreement with Fujian Pingtan Centurium Investment Partnership (Limited Partnership) and Xinyu Yongshuo Management and Consulting Partnership (Limited Partnership) to purchase 15% and 5%, respectively, of the equity interest in TianXinFu from such sellers for a total cash consideration of $118.9 million and as a result, TianXinFu became an indirect wholly-owned subsidiary of the Company. All of the Company’s plasma products require government approval before the products are sold to customers. The Company primarily sells its products to hospitals and inoculation centers directly or through distributors in the PRC. On July 21, 2017, China Biologic Products Holdings, Inc. (the “Successor”) succeeded to the interests of China Biologic Products, Inc. (the “Predecessor”) following a redomicile merger pursuant to an agreement and plan of merger dated as of April 28, 2017 (the “Merger Agreement”) between the Successor and the Predecessor. Pursuant to the Merger Agreement, the Predecessor merged with and into the Successor, with the Successor surviving the merger and each issued and outstanding shares of Predecessor’s common stock converted into the right to receive one ordinary share of the Successor. The consolidated financial statements of the Successor represents the continuation of the financial statements of the Predecessor, reflecting the assets and liabilities, retained earnings and other equity balances of the Predecessor before the domiciliation. The equity structure is restated using the exchange ratio established in the Merger Agreement to reflect the number of shares of the Successor. Cash Concentration The Company maintains cash balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits for its bank accounts located in the United States or may exceed Hong Kong Deposit Protection Board insured limits for its bank accounts located in Hong Kong or may exceed the insured limits for its bank accounts in China established by the People’s Bank of China. Total cash at banks and deposits, including cash and equivalents, time deposits and short term investments as of December 31, 2019 and December 31, 2018 amounted to $925,817,723 and $951,336,787, respectively, of which $2,661,396 and $3,227,530 are insured, respectively. The Company has not experienced any losses in uninsured bank deposits and does not believe that it is exposed to any significant risks on cash held in bank accounts. Sales Concentration The Company’s two major biopharmaceutical products are human albumin and IVIG. Human albumin accounted for 37.3%, 32.0% and 35.8% of the total sales for the years ended December 31, 2019, 2018 and 2017, respectively. IVIG accounted for 23.2%, 24.3% and 31.7% of the total sales for the years ended December 31, 2019, 2018 and 2017, respectively. The Company expects sales from these two products to represent a substantial portion of its sales in the future. If the market demands for human albumin and IVIG cannot be sustained in the future or the price of human albumin and IVIG decreases, the Company’s operating results could be adversely affected. Substantially all of the Company’s customers are located in the PRC. There were no customers that individually comprised 10% or more of sales during the years ended December 31, 2019, 2018 and 2017. No individual customer represented 10% or more of accounts receivables as at December 31, 2019 and 2018. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. Purchase Concentration There was one supplier, namely, Xinjiang Deyuan Bioengineering Co., Ltd. (“Xinjiang Deyuan”) (see Note 10), that comprised 10% or more of the total purchases during the years ended December 31, 2019, 2018 and 2017. Chongqing Sanda Great Exploit Pharmaceutical Co, Ltd. represented more than 10% of accounts payables as at December 31, 2019. No individual supplier represented 10% or more of accounts payables as at December 31, 2018. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), and include the financial statements of the Company and its subsidiaries in which CBP, directly or indirectly, has a controlling financial interest. All intercompany balances and transactions have been eliminated upon consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment and intangibles with definite lives, the collectability of accounts receivable and loan receivable, the fair value determinations of stock compensation awards and short term investments, identifiable assets acquired and liabilities assumed and noncontrolling interest in business combinations, the realizability of deferred income tax assets and inventories, the recoverability of intangible assets, land use rights, property, plant and equipment, goodwill and equity method investment, and accruals for income tax uncertainties and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. Foreign Currency Translation The accompanying consolidated financial statements of the Company are reported in US dollar. The financial position and results of operations of the Company’s subsidiaries in the PRC are measured using the Renminbi, which is the local and functional currency of these entities. Assets and liabilities of the subsidiaries are translated at the prevailing exchange rate in effect at each period end. Revenues and expenses are translated at the average rate of exchange during the period. Translation adjustments are included in other comprehensive income/(losses). Revenue Recognition Prior to January 1, 2018, revenue was recognized when persuasive evidence of an arrangement existed, delivery of the product has occurred and the customer took ownership and assumed risk of loss, the sales price was fixed or determinable and collection of the relevant receivable was probable. For all sales, the Company required a signed contract or purchase order, which specified pricing, quantity and product specifications. Delivery of the product occurred when the customer received the product, which was when the risks and rewards of ownership have been transferred. Delivery was evidenced by signed customer acknowledgement. The Company’s sales agreements did not provide the customer the right of return, unless the product was defective in which case the Company allowed for an exchange of product or return. For the periods presented, defective product returns were inconsequential. Revenue represents the invoiced amount of products sold, net of value added taxes (VAT). Effective January 1, 2018, the Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers Revenue Recognition The Company sells biopharmaceutical and biomaterial products to hospitals, inoculation centers and distributors. For all sales, the Company requires a signed contract or purchase order, which specifies pricing, quantity and product specifications. The Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgement. The selling price, which is specified in the signed contracts or purchase orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgement. Customers are required to pay under the customary payment terms, which is generally less than six months. Advances from customers (a contract liability) is recognized when the Company has an unconditional right to a payment before it transfers the products to customers, and are included in other payables and accrued expenses. Fair Value Measurements The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: ● Level 1 Inputs: Unadjusted quoted prices for identical assets or liabilities in active markets accessible to the entity at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1, inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The fair value measurement level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. See Note 16 to the Consolidated Financial Statements. Cash and Cash Equivalents Cash consists of cash on hand and demand deposits. The Company considers all highly liquid investments with original maturities of three-month or less at the time of purchase and readily convertible into known amounts of cash to be cash equivalents. As of December 31, 2019 and 2018, the Company maintained cash and cash equivalents at banks in the following locations: December 31, 2019 December 31, 2018 USD USD PRC, excluding Hong Kong 78,412,035 158,739,504 Hong Kong 1,153,006 3,936,815 U.S. 80,745,824 175,133,834 Total 160,310,865 337,810,153 Time deposits The Company’s time deposits represent bank financial products with original maturity of less than one year when purchased with insured principle and interest based on the stated interest rate in the agreement with the Company upon maturity. The interest earned is recorded in interest income in the statements of comprehensive income. Short term investments The Company’s short term investments represent bank financial products not readily available to be converted to cash with terms less than one year when purchased with floating interest rate. The Company elects to apply the fair value option for short term investments. Investment income and fair value changes from short term investments are recorded in other income, net in the statements of comprehensive income. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable is recognized when the Company has an unconditional right to receive consideration. A right to receive consideration is unconditional if only the passage of time is required before payment of that consideration is due. Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses, the customers’ financial condition, the amount of accounts receivables in dispute, the accounts receivables aging and the customers’ payment patterns. The Company reviews its allowance for doubtful accounts monthly. Past due balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. Cost of work-in-process and finished goods comprise direct materials, direct production costs and an allocation of production overheads based on normal operating capacity. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Adjustments are recorded to write down the carrying amount of any obsolete and excess inventory to its estimated net realizable value based on historical and forecasted demand. Property, Plant and Equipment Property, plant and equipment are stated at cost, less than accumulated depreciation and impairment, if any. Cost incurred in the construction of property, plant and equipment, including downpayments and progress payments, are initially capitalized as construction-in-progress and transferred into their respective asset categories when the assets are ready for their intended use, at which time depreciation commences. Depreciation on property, plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Estimated useful lives of the assets are as follows: Buildings 20‑45 years Machinery and equipment 10 years Furniture, fixtures, office equipment and vehicles 5‑10 years When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred, and replacements and betterments are capitalized and amortized over the remaining useful life. Business Combination The Company accounts for its business combination using the acquisition method in accordance with ASC Topic 805 (“ASC 805”): Business Combinations Goodwill Goodwill represents the excess of the aggregate purchase price over the fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but is tested for impairment at the reporting unit level on at least an annual basis and more frequently when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. When performing an evaluation of goodwill impairment, the Company has elected the option to first assess qualitative factors, such as significant events and changes to expectations and activities that may have occurred since the last impairment evaluation, to determine if it is more likely than not that goodwill might be impaired. If as a result of the qualitative assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the quantitative fair value test is performed to determine if the fair value of the reporting unit exceeds its carrying value. The Company has adopted Accounting Standards Update ("ASU") 2017-04, Simplifying the Test for Goodwill Impairment In 2019, the Company only performed qualitative assessments to determine that it is not more likely than not that the fair value of each reporting unit was less than its carrying amount. No impairment of goodwill was recognized for any of the years presented. Lease The Company is a lessee in a number of noncancellable operating leases, primarily for warehouses and office space. Prior to the adoption of ASC 842, operating leases were not recognized on the balance sheet of the Company, but rent expenses with fixed escalating payments and/or rent holidays were recognized on a straight-line basis over the lease term. From January 1, 2019, the Company accounts for leases in accordance with ASC Topic 842, Leases For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. Key estimates and judgments include how the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) lease term and (3) lease payments. ● ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot determine the interest rate implicit in the lease because it does not have access to the lessor’s estimated residual value of the underlying leased asset or the amount of the lessor’s deferred initial direct costs. Instead, the Company uses its incremental borrowing rate as the discount rate for the lease. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow on a collateralized basis, it uses the interest rate it pays on its noncollateralized borrowings as an input to derive an appropriate incremental borrowing rate, adjusted for the amount of the lease payments, the lease term and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments for that lease. ● The lease term for all of the Company’s leases includes the noncancellable period of the lease plus any additional periods covered by either a Company’s option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. ● Lease payments included in the measurement of the lease liability comprise the following: – Fixed payments, including in-substance fixed payments, owed over the lease term (which includes termination penalties the Company would owe if the lease term assumes the Company to exercise a termination option); – Variable lease payments that depend on an index or rate, initially measured using the index or rate at the lease commencement date; – Amounts expected to be payable under a Company-provided residual value guarantee; and – The exercise price of a Company option to purchase the underlying asset if the Company is reasonably certain to exercise the option. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease payments associated with the Company’s leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Variable lease payments are presented as operating expense in the Company’s consolidated statements of income in the same line item as expense arising from fixed lease payments (operating leases). ROU assets for operating and finance leases are periodically reduced by impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment – Overall The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in profit or loss. Operating lease ROU assets are presented in other non-current assets on the consolidated balance sheet. The current portion of operating lease liabilities is included in other payables and accrued expenses and the long-term portion is presented separately as other liabilities on the consolidated balance sheets. The Company has made accounting policy elections whereby it (i) does not recognize ROU assets or lease liabilities for short term leases (those with original terms of 12-months or less) and (ii) combines lease and non-lease components for facilities leases, which primarily relate to ancillary expenses such as common area maintenance charges and management fees of its operating leases. As of December 31, 2019, the Company did not have any finance leases. Land Use Rights Land use rights represent the exclusive right to occupy and use a piece of land in the PRC for a specified contractual term. Land use rights are carried at cost, less accumulated amortization. Amortization is calculated using the straight-line method over the contractual period of the rights ranging from 40 to 50 years. Equity Method Investment Investment in an investee in which the Company has the ability to exercise significant influence, but does not have a controlling interest is accounted for using the equity method. Significant influence is generally presumed to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the board of directors and participation in policy-making processes, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the Company’s share of the investee’s results of operations is included in other income (expenses) in the Company’s consolidated statements of comprehensive income. Deferred taxes are provided for the difference, if any, between the book and tax basis of the investment. The Company determines the difference between the carrying amount of the investee and the underlying equity in net assets which results in an excess basis in the investment. The excess basis is allocated to the underlying assets and equity method goodwill of the Company’s investee. The excess basis allocated to the underlying assets is either amortized or depreciated over the applicable useful lives. The equity method goodwill, which is $1,173,008 and $1,192,320 at December 31, 2019 and 2018, respectively, is not amortized or tested for impairment; instead the equity method investment is tested for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company recognizes a loss if it is determined that other than temporary decline in the value of the investment exists. The process of assessing and determining whether an impairment on a particular equity investment is other than temporary requires significant amount of judgment. To determine whether an impairment is other-than-temporary, management considers whether the Company has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. No impairment loss was recognized by the Company for the years ended December 31, 2019, 2018 and 2017. The Company’s equity method investment as of December 31, 2019 and 2018 represented 35%equity interest investment in Xi’an Huitian Blood Products Co., Ltd. (“Huitian”), which the Company acquired in October 2008. Government Grants Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. Grants that compensate research and development expenses are recognized as a reduction to the related research and development expenses. Grants that compensate the Company for the cost of property, plant and equipment are recognized as deferred income and are recognized as a reduction of depreciation and amortization during the useful life of the asset. For the years ended December 31, 2019, 2018 and 2017, the Company received government grants of RMB8,468,100 (approximately $1,225,147), RMB4,837,300 (approximately $704,795) and RMB2,405,210 (approximately $368,093), respectively, which have been recognized as a reduction of research and development expenses. For the year ended December 31, 2012, the Company received government grants of RMB18,350,000 (approximately $2,989,215) related to the technical upgrade of the manufacturing facilities in Guizhou Taibang, which was recorded as deferred income. The grants amortized amounted to $266,217, $277,801 and $271,754 for the years ended December 31, 2019, 2018 and 2017, respectively. For the year ended December 31, 2015, the Company received government grants of RMB15,000,000 (approximately $2,452,864) related to the new manufacturing facilities for factor products in Shandong Taibang, which was recorded as deferred income. These grants are amortized as the related assets are depreciated. The grants amortized amounted to $217,616, $227,085 and $222,143 for the year ended December 31, 2019, 2018 and 2017, respectively. Intangible Assets Intangible assets with finite useful life are amortized on a straight-line basis, as the pattern of economic benefit of intangible assets cannot be reliably determined, over the estimated useful lives of the respective assets. The Company’s amortizable intangible assets consist of permits and license, customer relationships, technical know-how and others with the following estimated useful lives. Permits and license 5‑10 years Customer relationships 7 years Technical know-how 3‑12 years Others 5‑10 years The estimated useful life is the period over which the intangible asset is expected to contribute directly or indirectly to the future cash flows of the Company. The in-process research and development assets acquired in a business combination are accounted for as an indefinite-lived intangible asset until completion or abandonment of the associated research and development activities. Research and Development Expenses Research and development costs are expensed as incurred. Research and development expenses for the years ended December 31, 2019, 2018 and 2017 were $11,734,590, $9,524,412 and $6,503,712, respectively. These expenses include the costs of the Company’s internal research and development activities. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses. Employee Benefit Plans Pursuant to relevant PRC regulations, the Company is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 25% to 43% on a standard salary base as determined by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of comprehensive income when the related service is provided. For the years ended December 31, 2019, 2018 and 2017, the costs of the Company’s contributions to the defined contribution plans amounted to $5,941,209, $5,581,682, and $3,763,276, respectively. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. Share-based Payment The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. For graded vesting awards, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. Impairment of Long-lived Assets Long-lived assets, including property, plant and equipment, land use rights and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Earnings per Share Basic earnings per ordinary share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary share outstanding during the year using the two-class method. Under the two-class method, net income is allocated between ordinary share and other participating securities based on their participating rights in undistributed earnings. The Company’s nonvested shares were considered participating securities since the holders of these securities participate in dividends on the same basis as ordinary shareholders. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary share equivalent, if any, by the weighted average number of ordinary share and dilutive ordinary share equivalent outstanding during the year. Potential dilutive securities are not included in the calculation of diluted earnings per share if the impact is anti-dilutive. Segment Reporting The Company uses the management approach in determining reportable operating segments. The management approach considers the internal reporting used by the chief operating decision maker for making operating decisions about the allocation of resources of the segment and the assessment of its performance in determining the Company’s reportable operating segments. As a result of the business combination completed on January 1, 2018 as described in Note 3, the Company classified the reportable operating segments for the year ended December 31, 2019 and 2018 into (i) biopharmaceutical products and (ii) biomaterial products. Biopharmaceutical products currently include plasma products and placenta polypeptide. The Company had one operating segment, biopharmaceutical products segment, which included plasma-based products and placenta polypeptide for the years of 2017. Substantially all of the Company’s operations and customers are located in the PRC, and therefore, no geographic information is presented. Contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations and tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Disclosure will be made if an unfavorable outcome is determined to be reasonably possible but not probable, or if the amount of loss cannot be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) . In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12, Income Tax (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2019 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | NOTE 3 – BUSINESS COMBINATION On October 12, 2017, the Company entered into a definitive agreement with PW Medtech Group Limited (“PWM”), a company listed on the Stock Exchange of Hong Kong Limited, to acquire 80% equity interest of TianXinFu in exchange for 5,521,000 ordinary shares of CBP. TianXinFu is a medical device company primarily engaging in the manufacturing and sale of regenerative medical biomaterial products, of which 80% equity interest was owned by PWM and 20% by a third party before this acquisition. The Company completed the acquisition on January 1, 2018. The transaction was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations The following table presents the amounts recognized for assets acquired and liabilities assumed for TianXinFu as of the acquisition date. The noncontrolling interest represents the fair value of the 20% equity interest not held by the Company: As of January 01, 2018 USD Cash and cash equivalents 97,702,278 Accounts receivable 312,832 Inventories 2,745,771 Other current assets 283,824 Property, plant and equipment 6,522,447 Land use rights 4,135,141 Intangible assets 63,725,856 Deferred income tax assets 480,334 Current liabilities (6,129,418) Deferred income tax liabilities (10,382,902) Fair value of noncontrolling interest (53,871,002) Goodwill 329,364,009 Total purchase consideration 434,889,170 The intangible assets consist of customer relationship, technical know-how and in-process research and development assets. The fair values of the customer relationship of $54,956,664 and technical know-how of $7,514,256 are amortized over 7 years and 3 The estimated fair value of the noncontrolling interest in TianXinFu was determined by an independent valuer by using discount cash flow model. The goodwill resulting from the business combination primarily attributed to the synergies and economic scale anticipated to be achieved from combining the operations of the Company and TianXinFu, and the assigned assembled workforce. None of the goodwill is expected to be deductible for income tax purpose. As of the acquisition date, the goodwill acquired in the business combination was assigned to the biomaterial products segment of $182 million and to the biopharmaceutical products segment of $147 million. The carrying amount of goodwill as of December 31, 2018 and 2019 was $313,588,803 and $308,509,397, respectively. The exchange difference during the years ended December 31,2018 and 2019 for goodwill was $15,775,206, and $5,079,406. Unaudited Pro Forma Financial Information The following unaudited pro forma consolidated financial information for the year ended December 31, 2017 are presented as if the acquisition had been consummated on January 1, 2017 after giving effect to purchase accounting adjustments. These pro forma results have been prepared for comparative purpose only and do not purport to be indicative of what operating results would have been had the acquisition actually taken place on the date indicated and may not be indicative of future operating results. Unaudited pro forma consolidated statements of comprehensive income for the year ended December 31, 2017: December 31, 2017 USD Sales 412,248,989 Net income 100,749,486 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable [Member] | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | NOTE 4 – ACCOUNTS RECEIVABLE Accounts receivable at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Accounts receivable 101,379,309 126,352,173 Less: Allowance for doubtful accounts (1,108,873) (1,236,331) Total 100,270,436 125,115,842 The activity in the allowance for doubtful accounts – accounts receivable for the years ended December 31, 2019, 2018 and 2017 are as follows: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Beginning balance 1,236,331 590,991 533,596 Provisions — 655,148 23,783 Reversal of allowance (77,624) — — Foreign currency translation adjustment (49,834) (9,808) 33,612 Ending balance 1,108,873 1,236,331 590,991 |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | NOTE 5 – PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets as of December 31, 2019 mainly represented other receivables of $12,595,296, and prepayments of $7,181,729. Prepayments and other current assets as of December 31, 2018 mainly represented other receivables of $15,897,405, prepayment to an investment bank for a share repurchase program of $10,000,000 and other prepayments of $9,081,680. The activity in the allowance for doubtful accounts –prepayments and other receivables for the years ended December 31, 2019, 2018 and 2017 are as follows: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Beginning balance 4,783,093 4,960,020 4,671,896 Provisions — 96,267 — Reversal of allowance (24,959) — — Foreign currency translation adjustment (45,331) (273,194) 288,124 Ending balance 4,712,803 4,783,093 4,960,020 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
INVENTORIES | NOTE 6 – INVENTORIES Inventories at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Raw materials 106,799,042 124,408,741 Work-in-process 75,439,226 57,457,153 Finished goods 68,489,992 61,429,618 Total 250,728,260 243,295,512 Raw materials mainly comprised of human plasma collected from the Company’s plasma collection stations. Work-in-process represented intermediate products in the process of production. Finished goods mainly comprised of plasma products. Provisions to write-down the carrying amount of inventories to its estimated net realizable value amounted to $3,379,600, nil and nil for the years ended December 31, 2019, 2018 and 2017, respectively, and were recorded as cost of sales in the consolidated statements of comprehensive income. As of December 31, 2019, there were approximately 19 tons of source plasma purchased from Xinjiang Deyuan, which were expected to go out of date and could not be put into production for lacking subsequent quarantine information, which was an essential requirement by the PRC government. Accordingly, management has accrued 100% write-down of these source plasma to its estimated net realizable value of nil. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 7 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Buildings 87,496,197 86,923,161 Machinery and equipment 124,893,555 111,797,936 Furniture, fixtures, office equipment and vehicles 12,616,722 11,670,963 Construction in progress 10,960,485 7,713,523 Total property, plant and equipment, gross 235,966,959 218,105,583 Accumulated depreciation (58,459,783) (42,447,406) Impairment of property, plant and equipment (2,045,875) (2,060,844) Total property, plant and equipment, net 175,461,301 173,597,333 Prepayment for property, plant and equipment 2,135,262 4,730,028 Property, plant and equipment, net 177,596,563 178,327,361 Loss on disposal of property, plant and equipment for the year ended December 31, 2019 was $297,504. As a result of the planned commencement of operation of the new facility, the Company disposed certain machinery and equipment in the old facility of Shandong Taibang and incurred a disposal loss of $1,001,000 and $3,228,845 for the years ended December 31, 2018 and 2017. Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $16,517,254, $13,809,041 and $11,691,731, respectively. No |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | NOTE 8 – INTANGIBLE ASSETS Intangible assets at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Permits and license 4,275,567 4,579,081 Customer relationship 51,473,394 52,320,870 Technical know-how 7,037,994 7,153,870 In-process research and development assets 751,102 1,194,740 Others 983,526 1,041,652 Total intangible assets 64,521,583 66,290,213 Accumulated amortization (20,453,522) (13,031,342) Total intangible assets, net 44,068,061 53,258,871 Amortization expense for the years ended December 31, 2019, 2018 and 2017 was $8,116,160, $8,742,607 and $497,344, respectively. The estimated annual amortization expense for intangible assets in each of the next five years is as follows: For the Years Ended December 31, Amount USD 2020 7,998,798 2021 7,987,360 2022 7,983,682 2023 7,925,391 2024 7,860,769 Total 39,756,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 9 – RELATED PARTY TRANSACTIONS Private Placement On August 24, 2018, the Company entered into (i) a share purchase agreement with Beachhead Holdings Limited (“Centurium”) and Double Double Holdings Limited (“DD”), which were then affiliated with two directors of the Company, Mr. David Hui Li and Mr. Joseph Chow, and is affiliated with Mr. David Hui Li, (ii) a share purchase agreement with PWM, the then largest shareholder of the Company with a director representative, Ms. Yue’e Zhang (iii) share purchase agreements with two third party investors, for the issuance and sale of 3,050,000, 800,000 and 2,000,000 ordinary shares of CBP at a per share purchase price of $100.9, respectively, to raise aggregate gross proceeds of approximately $590 million. The transaction was approved by a special committee formed by the board of directors of the Company, consisting of two independent directors. On the same date, CBP issued 1,800,000 ordinary shares to Centurium and 2,000,000 ordinary shares to two third party investors, pursuant to their respective share purchase agreements. On September 4, 2018, DD assigned its rights and obligations under the share purchase agreement to Centurium and CBP issued 1,250,000 additional ordinary shares to Centurium thereafter. On September 21, 2018, CBP issued 800,000 ordinary shares to PWM. Long term equity investments The Company’s investments without readily determinable fair values are measured using the measurement alternative, defined by ASC Topic 321, Investment-Equity Securities, On November 28, 2018, the Company entered into a share transfer agreement with Smart Step Investments Limited (“Smart Step”), the then largest shareholder of Beijing Taijie Weiye Technology Co., Ltd. (“TJWY Medical”), pursuant to which the Company purchased approximately 11.55% equity interests of TJWY Medical from Smart Step in a cash consideration of $10,812,893. Pursuant to the share transfer agreement, the Company has the right (the “put option”) to request Smart Step to redeem full or part of the equity interests in TJWY transferred at the original purchase price plus 6% compound interest rate per annum. Such put option can be exercised by the Company within 6 months from the third anniversary of the closing date of the transaction. The investment and put option are both accounted under ASC 321. The Company measured this put option at cost, less impairments. The carry amount of investment and put option are $10.0 million and $0.8 million based on the relative fair value upon completion of the transaction. The Company paid 100% cash consideration on December 21, 2018. The transaction was completed on January 23, 2019. TJWY Medical is a manufacturer of interventional products. The ultimate beneficial owner of Smart Step is the mother of Ms. Yue’e Zhang, a director of the Company. No Acquisition of Remaining 20% Equity Interest in TianXinFu On June 28, 2019, Taibang Biotech (Shandong) Co., Ltd., an indirect wholly-owned subsidiary of the Company, entered into a share purchase agreement with Fujian Pingtan Centurium Investment Partnership (Limited Partnership) and Xinyu Yongshuo Management and Consulting Partnership (Limited Partnership) to purchase 15% and 5%, respectively, of the equity interest in TianXinFu from such sellers for a total cash consideration of $118.9 million (the “TianXinFu Transaction”). The Company previously acquired 80% equity interest in TianXinFu in January 2018. Upon the completion of the TianXinFu Transaction, TianXinFu became an indirect wholly-owned subsidiary of the Company. Fujian Pingtan Centurium Investment Partnership (Limited Partnership) is an affiliate of Centurium Capital, which beneficially owned approximately 25.2% of the Company’s outstanding share capital as of March 9, 2020 and at the time of the TianXinFu Transaction was affiliated with two directors on the board of directors of the Company (the “Board”), Mr. Joseph Chow and Mr. David Hui Li. According to ASC810, the TianXinFu Transaction is accounted for as an equity transaction, and is recognized by reducing the carrying amount of the noncontrolling interest by $55.1 million. The $63.8 million which represented excess of the cash paid ($118.9 million) over the carrying amount of the noncontrolling interest is recognized as a decrease in additional paid-in capital. In addition, the noncontrolling interest’s share of accumulated other comprehensive income is adjusted by $5.2 million through a corresponding increase |
LOAN RECEIVABLE
LOAN RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
Loans Receivable [Member] | |
LOAN RECEIVABLE | |
LOAN RECEIVABLE | NOTE 10 – LOAN RECEIVABLE In August 2015, the Company entered into a cooperation agreement with Xinjiang Deyuan and the controlling shareholder of Xinjiang Deyuan (“Deyuan Shareholder”). Pursuant to the agreement, (i) Xinjiang Deyuan agreed to sell to Guizhou Taibang no less than 500 tonnes of source plasma in batches over the next three years, before July 31, 2018, and (ii) Guizhou Taibang agreed to provide Xinjiang Deyuan with an interest-bearing loan at an interest rate of 6% per annum with an aggregate principal amount of RMB300,000,000 (approximately $43,002,000). The loan was due July 31, 2018 and secured by a pledge of Deyuan Shareholder’s 58.02% equity interest in Xinjiang Deyuan. In August 2018, the Company extended this cooperation agreement with Xinjiang Deyuan and Deyuan Shareholder for another 3 years to purchase at least an additional 500 tonnes of source plasma and to extend the due date of the loan to July 31, 2021.The loan is secured by a pledge of Deyuan Shareholder’s 58.02% equity interest in Xinjiang Deyuan. $3,716,055 and $3,784,297 of the loan principal was set off against the equivalent amount in accounts payable for purchase of plasma from Xinjiang Deyuan for the years ended December 31, 2019 and 2018, respectively. Interest income of $2,162,210, $2,904,886 and $2,514,936 were recognized and nil, $695,757 and $2,514,936 were received in cash by Guizhou Taibang and $2,308,913, $2,062,426 and nil were set off against the equivalent amounts in accounts payable for the purchase of plasma from Xinjiang Deyuan for the years ended December 31, 2019, 2018 and 2017, respectively. Since November 2019, Xinjiang Deyuan has significantly reduced the plasma volume delivered to the Company due to its operating cash shortfall and its disagreement with the Company regarding payment arrangements for purchase of plasma. As of the date of this report, the Company is still in negotiation with Xinjiang Deyuan and endeavoring to resolve the disagreement. As of December 31, 2019, no allowance was provided for the loan receivable considering the amount of loan receivable, the fair value of Deyuan shareholder’s equity interest pledged in the cooperation agreement and the ability of assets realization and solvency of Xinjiang Deyuan. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
LEASES | NOTE 11 – LEASES. As of December 31, 2019, the Company has seven Rent expense for the year ended December 31, 2019 was $906,670. There was no sublease income The impact of Topic 842 on the December 31, 2019 condensed consolidated balance sheet was as follows: December 31, 2019 USD Other non-current assets 5,566,093 Other payables and accrued expenses 1,172,158 Other liabilities 4,372,418 Total lease liabilities 5,544,576 Supplemental cash flow information related to leases was as follows: December 31, 2019 USD Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows 827,089 Right of use assets obtained in exchange for lease obligations: 5,566,093 A maturity analysis of the Company’s operating leases as of December 31, 2019 was as follows: Future undiscounted cash flows: Amount USD 2020 1,410,155 2021 1,207,870 2022 1,211,943 Thereafter 2,468,904 Total 6,298,872 Discount factor (754,296) Lease liability 5,544,576 Amounts due within 12 months 1,172,158 Non-current lease liability 4,372,418 As previously disclosed in the consolidated financial statements for the year ended December 31, 2018 and under the previous lease standard (Topic 840), future minimum annual lease payments for the years subsequent to December 31, 2018 and in aggregate are as follows: Amount USD 2019 848,731 2020 938,551 2021 167,378 2022 4,095 Thereafter 170,297 Total minimum payments 2,129,052 Rent expense for the year ended December 31, 2018 was approximately $807,088. |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 12 – OTHER PAYABLES AND ACCRUED EXPENSES Other payables and accrued expenses at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Payables to a potential investor (1) 8,723,540 8,574,254 Payable to Guizhou Eakan Investing Corp. (2) 2,087,030 2,121,392 Salaries and bonuses payable 26,439,393 23,543,535 Accruals for sales promotion fee 32,335,868 29,401,827 Payables for construction work 3,591,000 8,181,773 Other tax payables 1,802,797 1,456,184 Advance from customers (3) 7,631,941 9,101,834 Deposits received 3,120,134 7,463,172 Lease liability - current 1,172,158 — Others 12,839,489 10,089,822 Total 99,743,350 99,933,793 (1) The payables to a potential investor comprises deposits received from a potential investor in the amount of $4,896,494 and $4,977,112 as of December 31, 2019 and 2018, respectively, and related interest plus penalty on these deposits totaling $3,827,046 and $3,597,142 as of December 31, 2019 and 2018, respectively. (2) Guizhou Taibang has payables to Guizhou Eakan Investing Corp., amounting to approximately $2,087,030 and $2,121,392 as of December 31, 2019 and 2018, respectively. The Company borrowed this interest free advance for working capital purpose for Guizhou Taibang. The balance is due on demand. See Note 19. (3) The change in advance from customers primarily represents cash received, less amounts recognized as sales during the year. All the advance from customers at December 31, 2018 was recognized in sales during the year ended December 31, 2019. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAX | |
INCOME TAX | NOTE 13 – INCOME TAX The Company and each of its subsidiaries file separate income tax returns. The United States of America China Biologic Products Inc. was originally incorporated on December 20, 1989 under the laws of the State of Texas as Shepherd Food Equipment, Inc. On November 20, 2000, Shepherd Food Equipment, Inc. changed its corporate name to Shepherd Food Equipment, Inc. Acquisition Corp., or Shepherd. Shepherd is the survivor of a May 28, 2003 merger between Shepherd and GRC Holdings, Inc., or GRC, a Texas corporation. In the merger, the surviving corporation adopted the articles of incorporation and bylaws of GRC and changed its corporate name to GRC Holdings, Inc. On January 10, 2007, a plan of conversion became effective pursuant to which GRC was converted into a Delaware corporation and changed its name to China Biologic Products, Inc. With the completion of domiciliation to the Cayman Islands on July 21, 2017, China Biologic Products Inc. was merged with and into China Biologic Products Holdings, Inc., with China Biologic Products Holdings, Inc. as the surviving company. China Biologic Products Holdings, Inc. continued to be a U.S. corporation for U.S. federal income tax purposes and is subject to U.S. federal corporate income tax at gradual rates of up to 35% for year 2017. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted. The Tax Act has made significant changes to the U.S. Internal Revenue Code, including the taxation of U.S. corporations, by, among other things, limiting interest deductions, reducing the U.S. corporate income tax rate, disallowing certain deductions that had previously been allowed, altering the expensing of capital expenditures, adopting elements of a territorial tax system, assessing a repatriation tax or “toll-charge” on undistributed earnings and profits of U.S.-owned foreign corporations, and introducing certain anti-base erosion provisions. In 2017, the Company recorded a charge of approximately $40.3 million as a provisional amount for the repatriation tax on deemed repatriation to the United States of accumulated earnings. The charge for deemed repatriation will be payable by the Company over an eight-year period commencing April 2018. In 2019 and 2018, $1,993,310 and $3,250,000 repatriation tax were paid by the Company to the U.S. tax bureau. In August 2018, based on additional implementation guidance issued by the U.S. Treasury Department and the Internal Revenue Service, the Company adjusted the provisional amount by reversing income tax payable and income tax expense of $7.5 million. The accounting for the income tax effect of the Tax Act has been completed. The Company file U.S. federal income tax returns on a consolidated basis at a tax rate of 21% for the year of 2019. Cayman Islands Under the current laws of Cayman Islands, China Biologic Products Holdings, Inc. is not subject to tax on its income or capital gains. British Virgin Islands Taibang Biological is incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands (BVI), Taibang Biological is not subject to tax on income or capital gains. In addition, upon payments of dividends by Taibang Biological, no British Virgin Islands withholding tax is imposed. Hong Kong Taibang Holdings (Hong Kong) Limited (“Taibang Holdings”, formerly known as “Logic Holdings (Hong Kong) Limited”) is incorporated in Hong Kong and is subject to Hong Kong’s profits tax rate of 16.5%for the years ended December 31, 2019, 2018 and 2017. Taibang Holdings did not earn any income that was derived in Hong Kong for the years ended December 31, 2019, 2018 and 2017. Health Forward Holdings Limited (“Health Forward”) is incorporated in Hong Kong and is subject to Hong Kong’s profits tax rate of 16.5%for the years ended December 31, 2019 and 2018. Health Forward did not earn any income that was derived in Hong Kong for the years ended December 31, 2019 and 2018. The payments of dividends by Hong Kong companies are not subject to any Hong Kong withholding tax. PRC The PRC’s statutory income tax rate is 25%. The Company’s PRC subsidiaries are subject to income tax at 25% unless otherwise specified. In October 2014, Shandong Taibang obtained a notice from the Shandong provincial government that granted it the High and New Technology Enterprise certificate. This certificate entitled Shandong Taibang to enjoy a preferential income tax rate of 15% for a period of three years from 2014 to 2016. In December 2017, Shandong Taibang renewed its high and new technology enterprise qualification, which entitled it to enjoy a preferential income tax rate of 15% for a period of three years from 2017 to 2019. Shandong Taibang will apply for an additional three years from 2020 to 2022 upon the expiration of such certificate. According to CaiShui [2011] No. 58 dated July 27, 2011, Guizhou Taibang, being a qualified enterprise located in the western region of the PRC, enjoys a preferential income tax rate of 15% effective retroactively from January 1, 2011 to December 31, 2020. In September 2014, Guizhou Taibang obtained a notice from the Guizhou provincial government that granted it the High and New Technology Enterprise certificate. This certificate entitled Guizhou Taibang to enjoy a preferential income tax rate of 15% for a period of three years from 2014 to 2016. In November 2017, Guizhou Taibang renewed its high and new technology enterprise qualification, which entitled it to enjoy a preferential income tax rate of 15% for a period of three years from 2017 to 2019. Guizhou Taibang will apply for an additional three years from 2020 to 2022 upon the expiration of such certificate. TianXinFu was recognized by Beijing provincial government as a high and new technology enterprise in 2009 and the latest renewal of its qualification was obtained in 2018, which entitled TianXinFu to enjoy a preferential income tax rate of 15%for a period of three years from 2018 to 2020. The components of earnings (losses) before income tax expense by jurisdictions are as follows: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD PRC, excluding Hong Kong 202,870,388 175,225,854 171,787,763 U.S. (12,932,509) (11,303,223) (28,866,395) BVI 1,563,160 2,341,136 3,488,680 Hong Kong (7,328) (260,472) (2,280) Total 191,493,711 166,003,295 146,407,768 Income tax expense for the years ended December 31, 2019, 2018 and 2017 represents current income tax expense and deferred income tax (benefit)/expense: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD Current income tax expense-PRC 30,228,726 29,715,744 27,133,958 Current income tax expense-US 307,043 (7,519,674) 40,290,367 Deferred income tax benefit-PRC (2,770,534) (4,657,379) (3,252,516) Deferred income tax expense-US 333,290 497,489 — Total income tax expense 28,098,525 18,036,180 64,171,809 The effective income tax rate based on income tax expense and earnings before income taxes reported in the consolidated statements of comprehensive income differs from the PRC statutory income tax rate of 25% due to the following: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 (in percentage to earnings before income tax expense) PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Non-deductible expenses: Share-based compensation 1.8 % 1.4 % 3.7 % Others 0.4 % 0.9 % 1.1 % Tax rate differential (0.3) % (0.5) % (0.9) % Effect of PRC preferential tax rate (9.4) % (9.0) % (11.1) % Bonus deduction on research and development expenses (2.4) % (2.3) % (1.5) % Change in valuation allowance 0.0 % 0.4 % (0.6) % Repatriation tax — (4.5) % 29.4 % Tax effect of equity method investment 0.2 % 0.3 % (0.6) % Excess tax benefits from stock option exercises (0.6) % (0.8) % (0.7) % Effective income tax rate 14.7 % 10.9 % 43.8 % The PRC tax rate has been used because the majority of the Company’s consolidated pre-tax earnings arise in the PRC. As of December 31, 2019 and 2018, significant temporary differences between the tax basis and financial statement basis of assets and liabilities that gave rise to deferred taxes were principally related to the following: December 31, 2019 December 31, 2018 USD USD Deferred income tax assets arising from: -Accrued expenses 8,982,660 7,587,118 -Deferred income 177,383 213,086 -Property, Plant and Equipment 1,079,536 1,149,033 -Other non-current assets 190,440 158,607 -Tax loss carryforwards 3,120,172 4,300,813 Gross deferred income tax assets 13,550,191 13,408,657 Less: valuation allowance (3,120,172) (4,300,813) Net deferred income tax assets 10,430,019 9,107,844 Deferred income tax liabilities arising from: - Property, plant and equipment (115,677) (129,636) - Intangible assets (6,575,677) (7,947,786) - Land use rights (529,090) (552,602) - Equity method investment (830,779) (497,489) - Dividend withholding tax (3,774,778) (3,774,778) Deferred income tax liabilities (11,826,001) (12,902,291) Classification on consolidated balance sheets: Deferred income tax assets, included in other non-current assets 10,430,019 9,107,844 Deferred income tax liabilities, included in other liabilities (11,826,001) (12,902,291) In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible and tax loss carryforwards are utilized. Management considers the scheduled reversal of deferred income tax liabilities (including the impact of available carryforwards periods), projected future taxable income, and tax planning strategies in making this assessment. The deferred income tax assets of $3,120,172 for tax loss carry forwards as of December 31, 2019 represented tax loss carryforwards of certain PRC subsidiaries. For PRC income tax purposes, these PRC subsidiaries had tax loss carryforwards of $14,696,748, of which $4,136,265, $4,568,923, $716,377, $4,076,401 and $1,198,782 would expire by 2020, 2021, 2022, 2023 and 2024, respectively, if unused. In view of their cumulative losses positions, management determined it is more likely than not that deferred income tax assets of these PRC subsidiaries will not be realized, and therefore full valuation allowances of $3,120,172 and $4,300,813 were provided as of December 31, 2019 and 2018, respectively. For United States federal income tax purposes, CBP had nil tax loss carry forwards as of December 31, 2019 and 2018. All tax loss brought forwards of CBP has been utilized by December 31, 2017 as a result of the repatriation tax on deemed repatriation of accumulated earnings to the United States. The following table presents the movement of the valuation allowance for deferred income tax assets for the years ended December 31, 2019, 2018 and 2017: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Beginning balance 4,300,813 5,031,657 26,629,179 Addition (deduction) during the year (1,123,767) (507,897) (21,927,117) Foreign currency translation adjustment (56,874) (222,947) 329,595 Ending balance 3,120,172 4,300,813 5,031,657 According to the prevailing PRC income tax law and relevant regulations, dividends relating to earnings accumulated beginning on January 1, 2008 that are received by non-PRC-resident enterprises from PRC-resident enterprises are subject to withholding tax at 10%, unless reduced by tax treaties or similar arrangement. Dividends relating to undistributed earnings generated prior to January 1, 2008 are exempt from such withholding tax. Further, dividends received by the Company from its overseas subsidiaries are subject to the U.S. federal income tax less any qualified foreign tax credits. Based on the dividend policy the Company has provided the deferred income tax liabilities of $7,351,023 on undistributed earnings of $74 million, approximately 50% of Shandong Taibang’s total undistributed earnings at December 31, 2014. The balance of the deferred income tax liabilities was reduced by $2,310,512 during the year ended December 31, 2018 when the dividends of RMB148,760,000 (approximately $21,674,332) was distributed to Taibang Holdings (Hong Kong) Limited by Taibang Biotech (Shandong) Co., Ltd.. Due to the Company’s plan and intention of reinvesting its earnings in its PRC business, the Company has not provided for the related deferred income tax liabilities on the remaining undistributed earnings of the PRC subsidiaries totaling $806.2 million as of December 31, 2019. As of January 1, 2017 and for each of the years ended December 31, 2019, 2018 and 2017, the Company and its subsidiaries did not have any unrecognized tax benefits, and therefore no interest or penalties related to unrecognized tax benefits were accrued. The Company does not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months. The Company and each of its PRC subsidiaries file income tax returns in the United States and the PRC, respectively. The Company is subject to U.S. federal income tax examination by tax authorities for tax years beginning in 2007. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances where the underpayment of taxes is more than RMB100,000 (approximately $14,334). In the case of transfer pricing issues, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The PRC tax returns for the Company’s PRC subsidiaries are open to examination by the PRC tax authorities for the tax years beginning in 2013. |
OPTIONS AND NONVESTED SHARES
OPTIONS AND NONVESTED SHARES | 12 Months Ended |
Dec. 31, 2019 | |
OPTIONS AND NONVESTED SHARES | |
OPTIONS AND NONVESTED SHARES | NOTE 14 – OPTIONS AND NONVESTED SHARES Options Effective May 9, 2008, the Board of Directors adopted the China Biologic 2008 Equity Incentive Plan, (“the 2008 Plan”). The 2008 Plan provides for grants of stock options, stock appreciation rights, performance units, restricted stock, restricted stock units and performance shares. A total of five million shares of the Company’s ordinary share may be issued pursuant to the 2008 Plan. The exercise price per share for the shares to be issued pursuant to an exercise of a stock option will be no less than the fair market value per share on the grant date, except that, in the case of an incentive stock option granted to a person who holds more than 10% of the total combined voting power of all classes of the Company’s stock or any of its subsidiaries, the exercise price will be no less than 110% of the fair market value per share on the grant date. All the options to be granted will have 10-year terms. The 2008 Plan expired on May 9, 2018 and all ordinary shares reserved under the 2008 Plan had been granted. For the years ended December 31, 2019, 2018 and 2017, no stock options to purchase ordinary share were granted to any directors or employees. A summary of stock options activity for the years ended December 31, 2019, 2018 and 2017 is as follows: Weighted Weighted Average Average Remaining Number of Exercise Contractual Aggregate Options Price Term in years Intrinsic Value USD USD Outstanding as of January 1, 2017 314,491 10.32 3.84 30,568,083 Granted — — Exercised (85,242) 10.18 (7,868,258) Forfeited and expired — — Outstanding as of December 31, 2017 229,249 10.37 2.61 15,168,276 Granted — — Exercised (121,945) 9.71 (9,137,231) Forfeited and expired — — Outstanding as of December 31, 2018 107,304 11.13 2.28 7,570,681 Granted — — Exercised (49,900) 12.26 (3,910,884) Forfeited and expired — — Outstanding as of December 31, 2019 57,404 10.14 1.93 4,106,623 Vested as of December 31, 2019 57,404 10.14 1.93 4,106,623 Exercisable as of December 31, 2019 57,404 10.14 1.93 4,106,623 For the years ended December 31, 2019, 2018 and 2017, no Nonvested shares For the years ended December 31, 2019, 2018 and 2017, nonvested shares were granted to certain directors and employees (collectively, the “Participant”). Pursuant to the nonvested share grant agreements between the Company and the Participant, the Participant will have all the rights of a shareholder with respect to the nonvested shares. The nonvested shares granted to directors generally vest in one A summary of nonvested shares activity for the year ended December 31, 2019, 2018 and 2017 is as follow: Number of Grant date weighted nonvested shares average fair value USD Outstanding as of January 1, 2017 912,650 104.51 Granted 356,150 89.94 Vested (353,694) 91.32 Forfeited (1,080) 98.20 Outstanding as of December 31, 2017 914,026 103.95 Granted 333,620 79.23 Vested (256,830) 100.91 Forfeited (385,425) 98.86 Outstanding as of December 31, 2018 605,391 94.85 Granted — — Vested (244,481) 100.93 Forfeited (6,300) 96.71 Outstanding as of December 31, 2019 354,610 90.63 For the years ended December 31, 2019, 2018 and 2017, the Company recorded stock compensation expense in the amount of $22,317,649, $23,130,570 and $33,903,283 relating to nonvested shares in general and administrative expenses, respectively. As of December 31, 2019, approximately $21,964,345 of stock compensation expense with respect to nonvested shares is to be recognized over weighted average period of approximately 1.72 years. Restricted share units Effective May 10, 2019, the Board of Directors adopted the China Biologic 2019 Equity Incentive Plan, (“the 2019 Plan”). The 2019 Plan provides for grants of stock options, restricted shares, restricted share units, share appreciation rights, and other share-based awards. A maximum of 1,650,000 Shares will be available for issuance under the 2019 Plan. The shares may be authorized and unissued Shares or shares now held or subsequently acquired by the Company. For the years ended December 31, 2019, restricted share units were granted to certain directors and employees (collectively, the “Participant”). Pursuant to the restricted share units grant agreements between the Company and the Participant, the Participant will not have any of the rights of a shareholder with respect to the restricted share units until vested. The restricted share units granted to directors generally vest in one A summary of restricted share units activity for the year ended December 31, 2019 is as follow: Number of Grant date weighted restricted share units average fair value USD Outstanding as of January 1, 2019 — — Granted 407,786 96.78 Vested — — Forfeited — — Outstanding as of December 31, 2019 407,786 96.78 For the years ended December 31, 2019, the Company recorded stock compensation expense in the amount of $4,282,366 relating to restricted share units in general and administrative expenses. As of December 31, 2019, approximately $35,183,796 of stock compensation expense with respect to restricted shares units is to be recognized over weighted average period of approximately 3.50 years. |
STATUTORY RESERVES
STATUTORY RESERVES | 12 Months Ended |
Dec. 31, 2019 | |
STATUTORY RESERVES | |
STATUTORY RESERVES | NOTE 15 – STATUTORY RESERVES The Company’s PRC subsidiaries are required to allocate at least 10%of its after tax profits as determined under generally accepted accounting principles in the PRC to its statutory surplus reserve until the reserve balance reaches 50% of respective registered capital. For the years ended December 31, 2019, 2018 and 2017, the Company’s PRC subsidiaries made appropriations to the reserve fund of $1,393,320, $18,844,626 and $5,051, respectively. The accumulated balance of the statutory reserve as of December 31, 2019 and 2018 was $54,751,734 and $53,358,414, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 16 – FAIR VALUE MEASUREMENTS Financial assets and liabilities of the Company primarily comprise of cash and cash equivalents, time deposits, short term investments, accounts receivable, other receivables, loan receivable, accounts payable, and other payables and accrued expenses. Management used the following methods and assumptions to estimate the fair value of financial assets and liabilities at the relevant balance sheet dates: Fair Value of Financial Instruments Short term financial assets and liabilities (including cash and cash equivalents, time deposits, accounts receivable, loan receivable, other receivables,accounts payable, and other payables and accrued expenses) – The carrying amounts of the short term financial assets and liabilities approximate their fair values because of the short maturity of these instruments. Loan receivable – The carrying amounts of loan receivable approximate their fair value. The fair value is estimated using discounted cash flow analysis based on the borrower’s incremental borrowing rates for similar borrowing. Recurring Fair Value Measurements The Company elects the fair value option to account for short term investments. The Company values its short term investments using the effective interest method with inputs of annualized rate of return provided by issuing banks. The annualized rate of return range from 2.80% to 4.00% depending on the amount and time period invested. The Company classifies the valuation techniques that use these inputs as Level 2. |
SHARE REPURCHASE
SHARE REPURCHASE | 12 Months Ended |
Dec. 31, 2019 | |
SHARE REPURCHASE | |
SHARE REPURCHASE | NOTE 17– SHARE REPURCHASE On November 1, 2018, the Company announced a share repurchase program, which was approved by the Board of Directors on October 30, 2018. Under the share repurchase program, CBP may repurchase up to $100 million worth of shares over 6 months following the date of approval. In late April 2019, the Company completed the share repurchase program previously authorized by its board of directors in 2018, having repurchased an aggregate of 1,074,376 shares for a total consideration of $100 million. In May 2019, the Company’s board of directors authorized an additional share repurchase program under which the Company may repurchase up to $150 million worth of shares over a 12-month period. As of December 31, 2019, the Company had repurchased 121,852 shares for a total consideration of $11.0 million under this program. |
SALES
SALES | 12 Months Ended |
Dec. 31, 2019 | |
SALES | |
SALES | NOTE 18 – SALES The Company’s sales by product categories for the years ended December 31, 2019, 2018 and 2017 are as follows: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD Plasma products: Human Albumin 187,835,401 149,369,846 132,498,791 Immunoglobulin products: Human Immunoglobulin for Intravenous Injection 117,147,536 113,490,790 117,511,797 Other Immunoglobulin products 72,071,759 59,470,912 50,147,328 Others 53,706,467 31,677,439 21,049,636 Placenta Polypeptide 26,977,805 68,157,257 49,199,288 Biopharmaceutical products 457,738,968 422,166,244 370,406,840 Artificial Dura Mater 42,275,272 40,644,561 — Others 3,730,682 4,066,764 — Biomaterial products 46,005,954 44,711,325 — Total 503,744,922 466,877,569 370,406,840 The Company’s sales by channel for the years ended December 31, 2019, 2018 and 2017 are as follows: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD Plasma products: Distributors 220,149,266 174,698,620 126,381,596 Hospitals and inoculation centers 210,611,897 179,310,367 194,825,956 430,761,163 354,008,987 321,207,552 Placenta Polypeptide: Distributors 26,977,805 68,157,257 49,199,288 Total Biopharmaceutical products 457,738,968 422,166,244 370,406,840 Biomaterial products: Distributors 43,774,081 42,717,750 — Hospitals 2,231,873 1,993,575 — Total Biomaterial products 46,005,954 44,711,325 — Total 503,744,922 466,877,569 370,406,840 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 19 – COMMITMENTS AND CONTINGENCIES Commitments As of December 31, 2019, commitments outstanding for the purchase of property, plant and equipment approximated $11,021,364. As of December 31, 2019, commitments outstanding for the purchase of plasma approximated $33,659,897. The following table sets forth the Company’s material contractual obligations as of December 31, 2019: Payments due by period Less than One to Two to Three to Four to Contractual Obligations one year two years three years four years five years Purchase of plasma commitment (1) 17,633,688 16,026,209 — — — Capital commitment 9,919,228 1,102,136 — — — Total 27,552,916 17,128,345 — — — (1) See Note 10. Legal proceedings PRC Lawsuit -Dispute with an Individual over a Due-on-demand Loan of Guizhou Taibang In June 2017, an individual brought a lawsuit against Guizhou Taibang and Guizhou Eakan Investing Corp. (“Guizhou Eakan”), an entity affiliated with one of Guizhou Taibang’s former noncontrolling shareholders, requesting repayment of RMB14,560,000 (approximately $2,087,030) and related fund possession cost amounting to approximately RMB37,141,600 (approximately $5,323,877). The plaintiff alleged that he entered into an agreement with Guizhou Eakan in May 2007, according to which he provided RMB14,560,000 for Guizhou Eakan to satisfy Guizhou Taibang’s loan request. On February 28, 2018, the trial was set in Shanghai Pudong New Area People’s Court. In March 2018, the court dismissed the trial for lack of jurisdiction and then transferred the trial to Shanghai No.1 Intermediate People’s Court (“No.1 Court”). On December 26, 2019, the plaintiff applied for withdrawal of action. The No.1 Court granted approval of the plaintiff’s application on December 27, 2019. As of December 31, 2019, Guizhou Taibang has maintained RMB14,560,000 (approximately $2,087,030) payable to Guizhou Eakan on its balance sheet. - Dispute with an Individual over Capital Injection into Guizhou Taibang In January 2019, another individual who claimed to be a strategic investor of Guizhou Taibang brought a lawsuit against Guizhou Taibang, requesting to register her alleged ownership interest in Guizhou Taibang with the local Administration for Market Regulation (“AMR”, formerly known as the Administration of Industry and Commerce). The plaintiff alleged that she entered into an Equity Purchase Agreement with Guizhou Taibang in May 2007, according to which she paid RMB11,200,000 (approximately $1,605,408) to Guizhou Taibang in exchange for approximately 4.71% of Guizhou Taibang’s equity interests. On March 14, 2019, Shanghai Xuhui District People’s Court notified Guiyang Dalin Biologic Technologies Co., Ltd., requesting its participation in the action as a third party in the case. On January 2, 2020, the plaintiff applied for withdrawal of action. Shanghai Xuhui District People’s Court granted approval of the plaintiff’s application on January 2, 2020. - Dispute with an Individual over a Technical Cooperation Development Contract of TianXinFu On March 20, 2015, an individual brought a lawsuit against TianXinFu, alleging that he was entitled to 15% of the profits of TianXinFu from selling biomaterial products during the period from January 1, 2000 to August 31, 2014 pursuant to a technical cooperation development contract and other related agreements. The plaintiff requested the payment of RMB10,000,000 by TianXinFu. On October 15, 2019, Beijing Dongcheng People’s Court ruled that TianXinFu should pay RMB10,000,000 to the plaintiff. In October 2019, TianXinFu filed an appeal to the Beijing Intellectual Property Court and the first-instance judgment ruled by the Beijing Dongcheng People’s Court is not yet in force accordingly. As of the reporting date, no Cayman Lawsuit On August 27, 2018, the Company’s former Chairman and CEO Mr. David (Xiaoying) Gao commenced a proceeding against the Company in the Grand Court of the Cayman Islands (the “Court”), principally seeking (a) a declaration that the private placement that was announced by the Company on August 24, 2018 was invalid and void, (b) an order requiring the Company to reverse and/or rescind any transactions carried out pursuant to the private placement, and (c) an injunction to prevent further shares from being issued by the Company to the entities participating in the private placement. The private placement was completed on September 21, 2018. On October 5, 2018, the Company made an application to the Court for dismissal of Mr. Gao’s lawsuit on the ground, among others, that Mr. Gao lacked standing to pursue the claims. On December 13, 2018, the Court granted the Company’s application and dismissed Mr. Gao’s lawsuit. On December 21, 2018, the Court granted Mr. Gao leave to appeal its December 13, 2018 order. Pursuant to the Cayman Islands Court of Appeal Rules, Mr. Gao was required to lodge a Notice of Appeal within 14 days of being granted leave to appeal. As of the date of this report, the Court of Appeal had no record of a Notice of Appeal relating to this case, and the Company has not been served with a Notice of Appeal or any further documents relating to this litigation. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 20 – EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the periods indicated: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD Net income attributable to China Biologic Products Holdings, Inc. 138,807,748 128,056,302 67,943,035 Earnings allocated to participating nonvested shares (1,690,519) (3,072,170) (2,188,633) Net income used in basic and diluted earnings per ordinary share 137,117,229 124,984,132 65,754,402 Weighted average shares used in computing basic earnings per ordinary share 38,657,553 35,304,294 27,361,561 Diluted effect of stock option and restricted share units 240,411 128,665 244,062 Weighted average shares used in computing diluted earnings per ordinary share 38,897,964 35,432,959 27,605,623 Basic earnings per ordinary share 3.55 3.54 2.40 Diluted earnings per ordinary share 3.53 3.53 2.38 During the years ended December 31, 2019, 2018 and 2017, no potential ordinary shares outstanding were excluded from the calculation of diluted earnings per ordinary share. |
CHINA BIOLOGIC PRODUCTS HOLDING
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. (PARENT COMPANY) | 12 Months Ended |
Dec. 31, 2019 | |
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. (PARENT COMPANY) | |
CHINA BIOLOGIC PRODUCTS, INC. (PARENT COMPANY) | NOTE 21 – CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. (PARENT COMPANY) The following represents condensed unconsolidated financial information of the Parent Company only: Condensed Balance Sheets: December 31, 2019 December 31, 2018 USD USD Cash 80,745,824 175,133,834 Time deposits 432,000,000 430,000,000 Prepayments and prepaid expenses 2,443,868 12,140,443 Total Current Assets 515,189,692 617,274,277 Property, plant and equipment, net 49 88 Investment in and amounts due from subsidiaries 1,214,913,704 1,139,337,487 Total Assets 1,730,103,445 1,756,611,852 Other payables and accrued expenses 5,723,648 4,544,071 Income tax payable - current 2,928,698 2,621,655 Total Current Liabilities 8,652,346 7,165,726 Income tax payable - non current 24,905,728 26,899,038 Other liabilities 830,779 497,489 Total Liabilities 34,388,853 34,562,253 Total Shareholders’ Equity 1,695,714,592 1,722,049,599 Total Liabilities and Shareholders’ Equity 1,730,103,445 1,756,611,852 Condensed Statements of Comprehensive Income: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Equity in income of subsidiaries 152,380,590 132,337,339 137,099,797 General and administrative expenses (25,944,997) (16,575,019) (28,879,890) Interest income 13,012,488 5,271,797 13,495 Earnings before income tax expense 139,448,081 121,034,117 108,233,402 Income tax (benefits)/expense 640,333 (7,022,185) 40,290,367 Net Income 138,807,748 128,056,302 67,943,035 Condensed Statements of Cash Flows: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Net cash provided by / (used in) operating activities 8,008,005 (6,211,606) (3,830,330) Net cash used in investing activities (2,000,000) (404,812,895) (3,000,000) Net cash (used in) / provided by financing activities (100,396,015) 581,449,534 — Net (decrease) / increase in cash (94,388,010) 170,425,033 (6,830,330) Cash at beginning of year 175,133,834 4,708,801 11,539,131 Cash at end of year 80,745,824 175,133,834 4,708,801 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 22 – SEGMENT INFORMATION The Company’s principal operating segments coincide with the types of products to be sold. The products from which revenues are derived are consistent with the reporting structure of the Company’s internal organization. The Company’s reportable segments for the years ended December 31, 2019 and 2018 were biopharmaceutical products and biomaterial products as a result of the acquisition of TianXinFu completed on January 1, 2018 as described in Note 3. The Company had one operating segment, biopharmaceutical products segment, which included plasma-based products and placenta polypeptide for the year of 2017. The Company’s chief operating decision-maker (“CODM”) has been identified as the chief executive officer. The CODM regularly reviews financial information at the reporting segment level in order to make decisions about resources to be allocated to the segments and to assess their performance. There are no inter-segment revenue transactions and, therefore, revenues are only generated from external customers. The accounting policies of the segments are the same as those used by the Company. Segment information for the years ended and as of December 31, 2019 and December 31, 2018 are as follows: Biopharmaceutical Biomaterial Products Products Total USD USD USD Year ended December 31, 2019 Sales 457,738,968 46,005,954 503,744,922 Cost of sales 170,119,887 4,546,657 174,666,544 Gross profit 287,619,081 41,459,297 329,078,378 Income from operations 146,889,589 16,758,294 163,647,883 Net income 138,237,792 25,157,394 163,395,186 Equity in income of an equity method investee 1,587,067 — 1,587,067 Interest income 21,292,269 29,970 21,322,239 Share-based compensation 26,600,015 — 26,600,015 Depreciation and Amortization 17,729,392 8,511,479 26,240,871 Segment assets 2,195,660,575 368,932,329 2,564,592,904 Capital expenditures 22,966,579 3,826,444 26,793,023 Equity method investment 16,725,513 — 16,725,513 Biopharmaceutical Biomaterial Products Products Total USD USD USD Year ended December 31, 2018 Sales 422,166,244 44,711,325 466,877,569 Cost of sales 141,683,089 5,104,147 146,787,236 Gross profit 280,483,155 39,607,178 320,090,333 Income from operations 128,980,355 17,192,396 146,172,751 Net income 131,561,108 16,406,007 147,967,115 Equity in income of an equity method investee 2,368,995 — 2,368,995 Interest income 13,704,954 1,796 13,706,750 Share-based compensation 23,130,570 — 23,130,570 Depreciation and Amortization 13,902,507 9,322,844 23,225,351 Income tax expense 15,353,208 2,682,972 18,036,180 Segment assets 2,095,996,321 348,885,628 2,444,881,949 Capital expenditures 35,245,016 1,471,374 36,716,390 Equity method investment 15,428,028 — 15,428,028 Reconciliation of segment assets to consolidated total assets: December 31, December 31, 2019 2018 USD USD Total segment assets 2,564,592,904 2,444,881,949 Elimination of intercompany investment balances (626,734,407) (434,903,268) Consolidated total assets 1,937,858,497 2,009,978,681 As substantially all of the Company’s revenue is derived from the PRC and substantially all of the Company’s long-lived assets are located in the PRC, no geographical information is presented. In addition, revenue derived from and long-lived assets located in Cayman Islands, the Company’s country of domicile, are immaterial. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 23 – SUBSEQUENT EVENTS Because of the outbreak of coronavirus in China from January, the Company has closed all plasma collection stations since late January, and most plasma collection stations were approved by local government to commence collection operation as of the date of this report. Due to the mechanism of the Company’s production cycle, the impact of the reduced collection volume of raw material, plasma, would be reflected in the second half year of 2020 or in the next year. However, the outbreak has a positive impact on the sales of certain plasma products. The Company will continue to monitor and modify the operating strategies. Given the dynamic nature of these circumstances, the reduced collection volume of plasma, the increased sales volume of certain plasma products and related financial impact cannot be reasonably estimated at this time. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), and include the financial statements of the Company and its subsidiaries in which CBP, directly or indirectly, has a controlling financial interest. All intercompany balances and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment and intangibles with definite lives, the collectability of accounts receivable and loan receivable, the fair value determinations of stock compensation awards and short term investments, identifiable assets acquired and liabilities assumed and noncontrolling interest in business combinations, the realizability of deferred income tax assets and inventories, the recoverability of intangible assets, land use rights, property, plant and equipment, goodwill and equity method investment, and accruals for income tax uncertainties and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. |
Foreign Currency Translation | Foreign Currency Translation The accompanying consolidated financial statements of the Company are reported in US dollar. The financial position and results of operations of the Company’s subsidiaries in the PRC are measured using the Renminbi, which is the local and functional currency of these entities. Assets and liabilities of the subsidiaries are translated at the prevailing exchange rate in effect at each period end. Revenues and expenses are translated at the average rate of exchange during the period. Translation adjustments are included in other comprehensive income/(losses). |
Revenue Recognition | Revenue Recognition Prior to January 1, 2018, revenue was recognized when persuasive evidence of an arrangement existed, delivery of the product has occurred and the customer took ownership and assumed risk of loss, the sales price was fixed or determinable and collection of the relevant receivable was probable. For all sales, the Company required a signed contract or purchase order, which specified pricing, quantity and product specifications. Delivery of the product occurred when the customer received the product, which was when the risks and rewards of ownership have been transferred. Delivery was evidenced by signed customer acknowledgement. The Company’s sales agreements did not provide the customer the right of return, unless the product was defective in which case the Company allowed for an exchange of product or return. For the periods presented, defective product returns were inconsequential. Revenue represents the invoiced amount of products sold, net of value added taxes (VAT). Effective January 1, 2018, the Company adopted the new guidance of ASC Topic 606, Revenue from Contracts with Customers Revenue Recognition The Company sells biopharmaceutical and biomaterial products to hospitals, inoculation centers and distributors. For all sales, the Company requires a signed contract or purchase order, which specifies pricing, quantity and product specifications. The Company recognizes revenue upon the satisfaction of its performance obligation, which is to transfer the control of the promised products to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those products, excluding amounts collected on behalf of third parties (e.g. value-added taxes). The transfer of control of the products is satisfied at a point in time, which is the delivery of the products to customers’ premises and evidenced by signed customer acknowledgement. The selling price, which is specified in the signed contracts or purchase orders, is fixed. The Company has unconditional right to receive full payment of the sales price, upon the delivery of the products to customers and the signing of the customer acknowledgement. Customers are required to pay under the customary payment terms, which is generally less than six months. Advances from customers (a contract liability) is recognized when the Company has an unconditional right to a payment before it transfers the products to customers, and are included in other payables and accrued expenses. |
Fair Value Measurements | Fair Value Measurements The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: ● Level 1 Inputs: Unadjusted quoted prices for identical assets or liabilities in active markets accessible to the entity at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1, inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The fair value measurement level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. See Note 16 to the Consolidated Financial Statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of cash on hand and demand deposits. The Company considers all highly liquid investments with original maturities of three-month or less at the time of purchase and readily convertible into known amounts of cash to be cash equivalents. As of December 31, 2019 and 2018, the Company maintained cash and cash equivalents at banks in the following locations: December 31, 2019 December 31, 2018 USD USD PRC, excluding Hong Kong 78,412,035 158,739,504 Hong Kong 1,153,006 3,936,815 U.S. 80,745,824 175,133,834 Total 160,310,865 337,810,153 |
Time deposits | Time deposits The Company’s time deposits represent bank financial products with original maturity of less than one year when purchased with insured principle and interest based on the stated interest rate in the agreement with the Company upon maturity. The interest earned is recorded in interest income in the statements of comprehensive income. |
Short term investments | Short term investments The Company’s short term investments represent bank financial products not readily available to be converted to cash with terms less than one year when purchased with floating interest rate. The Company elects to apply the fair value option for short term investments. Investment income and fair value changes from short term investments are recorded in other income, net in the statements of comprehensive income. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable is recognized when the Company has an unconditional right to receive consideration. A right to receive consideration is unconditional if only the passage of time is required before payment of that consideration is due. Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses, the customers’ financial condition, the amount of accounts receivables in dispute, the accounts receivables aging and the customers’ payment patterns. The Company reviews its allowance for doubtful accounts monthly. Past due balances are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. Cost of work-in-process and finished goods comprise direct materials, direct production costs and an allocation of production overheads based on normal operating capacity. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Adjustments are recorded to write down the carrying amount of any obsolete and excess inventory to its estimated net realizable value based on historical and forecasted demand. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less than accumulated depreciation and impairment, if any. Cost incurred in the construction of property, plant and equipment, including downpayments and progress payments, are initially capitalized as construction-in-progress and transferred into their respective asset categories when the assets are ready for their intended use, at which time depreciation commences. Depreciation on property, plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Estimated useful lives of the assets are as follows: Buildings 20‑45 years Machinery and equipment 10 years Furniture, fixtures, office equipment and vehicles 5‑10 years When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value and the proceeds received thereon. Ordinary maintenance and repairs are charged to expense as incurred, and replacements and betterments are capitalized and amortized over the remaining useful life. |
Business Combination | Business Combination The Company accounts for its business combination using the acquisition method in accordance with ASC Topic 805 (“ASC 805”): Business Combinations |
Goodwill | Goodwill Goodwill represents the excess of the aggregate purchase price over the fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but is tested for impairment at the reporting unit level on at least an annual basis and more frequently when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. When performing an evaluation of goodwill impairment, the Company has elected the option to first assess qualitative factors, such as significant events and changes to expectations and activities that may have occurred since the last impairment evaluation, to determine if it is more likely than not that goodwill might be impaired. If as a result of the qualitative assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the quantitative fair value test is performed to determine if the fair value of the reporting unit exceeds its carrying value. The Company has adopted Accounting Standards Update ("ASU") 2017-04, Simplifying the Test for Goodwill Impairment In 2019, the Company only performed qualitative assessments to determine that it is not more likely than not that the fair value of each reporting unit was less than its carrying amount. No impairment of goodwill was recognized for any of the years presented. |
Lease | Lease The Company is a lessee in a number of noncancellable operating leases, primarily for warehouses and office space. Prior to the adoption of ASC 842, operating leases were not recognized on the balance sheet of the Company, but rent expenses with fixed escalating payments and/or rent holidays were recognized on a straight-line basis over the lease term. From January 1, 2019, the Company accounts for leases in accordance with ASC Topic 842, Leases For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. Key estimates and judgments include how the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) lease term and (3) lease payments. ● ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot determine the interest rate implicit in the lease because it does not have access to the lessor’s estimated residual value of the underlying leased asset or the amount of the lessor’s deferred initial direct costs. Instead, the Company uses its incremental borrowing rate as the discount rate for the lease. The Company’s incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow on a collateralized basis, it uses the interest rate it pays on its noncollateralized borrowings as an input to derive an appropriate incremental borrowing rate, adjusted for the amount of the lease payments, the lease term and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments for that lease. ● The lease term for all of the Company’s leases includes the noncancellable period of the lease plus any additional periods covered by either a Company’s option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. ● Lease payments included in the measurement of the lease liability comprise the following: – Fixed payments, including in-substance fixed payments, owed over the lease term (which includes termination penalties the Company would owe if the lease term assumes the Company to exercise a termination option); – Variable lease payments that depend on an index or rate, initially measured using the index or rate at the lease commencement date; – Amounts expected to be payable under a Company-provided residual value guarantee; and – The exercise price of a Company option to purchase the underlying asset if the Company is reasonably certain to exercise the option. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease payments associated with the Company’s leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Variable lease payments are presented as operating expense in the Company’s consolidated statements of income in the same line item as expense arising from fixed lease payments (operating leases). ROU assets for operating and finance leases are periodically reduced by impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment – Overall The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in profit or loss. Operating lease ROU assets are presented in other non-current assets on the consolidated balance sheet. The current portion of operating lease liabilities is included in other payables and accrued expenses and the long-term portion is presented separately as other liabilities on the consolidated balance sheets. The Company has made accounting policy elections whereby it (i) does not recognize ROU assets or lease liabilities for short term leases (those with original terms of 12-months or less) and (ii) combines lease and non-lease components for facilities leases, which primarily relate to ancillary expenses such as common area maintenance charges and management fees of its operating leases. As of December 31, 2019, the Company did not have any finance leases. |
Land Use Rights | Land Use Rights Land use rights represent the exclusive right to occupy and use a piece of land in the PRC for a specified contractual term. Land use rights are carried at cost, less accumulated amortization. Amortization is calculated using the straight-line method over the contractual period of the rights ranging from 40 to 50 years. |
Equity Method Investment | Equity Method Investment Investment in an investee in which the Company has the ability to exercise significant influence, but does not have a controlling interest is accounted for using the equity method. Significant influence is generally presumed to exist when the Company has an ownership interest in the voting stock between 20% and 50%, and other factors, such as representation on the board of directors and participation in policy-making processes, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the Company’s share of the investee’s results of operations is included in other income (expenses) in the Company’s consolidated statements of comprehensive income. Deferred taxes are provided for the difference, if any, between the book and tax basis of the investment. The Company determines the difference between the carrying amount of the investee and the underlying equity in net assets which results in an excess basis in the investment. The excess basis is allocated to the underlying assets and equity method goodwill of the Company’s investee. The excess basis allocated to the underlying assets is either amortized or depreciated over the applicable useful lives. The equity method goodwill, which is $1,173,008 and $1,192,320 at December 31, 2019 and 2018, respectively, is not amortized or tested for impairment; instead the equity method investment is tested for impairment whenever events or changes in circumstances indicate that the carrying value of the investment may not be recoverable. The Company recognizes a loss if it is determined that other than temporary decline in the value of the investment exists. The process of assessing and determining whether an impairment on a particular equity investment is other than temporary requires significant amount of judgment. To determine whether an impairment is other-than-temporary, management considers whether the Company has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. No impairment loss was recognized by the Company for the years ended December 31, 2019, 2018 and 2017. The Company’s equity method investment as of December 31, 2019 and 2018 represented 35%equity interest investment in Xi’an Huitian Blood Products Co., Ltd. (“Huitian”), which the Company acquired in October 2008. |
Government Grants | Government Grants Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. Grants that compensate research and development expenses are recognized as a reduction to the related research and development expenses. Grants that compensate the Company for the cost of property, plant and equipment are recognized as deferred income and are recognized as a reduction of depreciation and amortization during the useful life of the asset. For the years ended December 31, 2019, 2018 and 2017, the Company received government grants of RMB8,468,100 (approximately $1,225,147), RMB4,837,300 (approximately $704,795) and RMB2,405,210 (approximately $368,093), respectively, which have been recognized as a reduction of research and development expenses. For the year ended December 31, 2012, the Company received government grants of RMB18,350,000 (approximately $2,989,215) related to the technical upgrade of the manufacturing facilities in Guizhou Taibang, which was recorded as deferred income. The grants amortized amounted to $266,217, $277,801 and $271,754 for the years ended December 31, 2019, 2018 and 2017, respectively. For the year ended December 31, 2015, the Company received government grants of RMB15,000,000 (approximately $2,452,864) related to the new manufacturing facilities for factor products in Shandong Taibang, which was recorded as deferred income. These grants are amortized as the related assets are depreciated. The grants amortized amounted to $217,616, $227,085 and $222,143 for the year ended December 31, 2019, 2018 and 2017, respectively. |
Intangible assets | Intangible Assets Intangible assets with finite useful life are amortized on a straight-line basis, as the pattern of economic benefit of intangible assets cannot be reliably determined, over the estimated useful lives of the respective assets. The Company’s amortizable intangible assets consist of permits and license, customer relationships, technical know-how and others with the following estimated useful lives. Permits and license 5‑10 years Customer relationships 7 years Technical know-how 3‑12 years Others 5‑10 years The estimated useful life is the period over which the intangible asset is expected to contribute directly or indirectly to the future cash flows of the Company. The in-process research and development assets acquired in a business combination are accounted for as an indefinite-lived intangible asset until completion or abandonment of the associated research and development activities. |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred. Research and development expenses for the years ended December 31, 2019, 2018 and 2017 were $11,734,590, $9,524,412 and $6,503,712, respectively. These expenses include the costs of the Company’s internal research and development activities. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses. |
Employee Benefit Plans | Employee Benefit Plans Pursuant to relevant PRC regulations, the Company is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 25% to 43% on a standard salary base as determined by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of comprehensive income when the related service is provided. For the years ended December 31, 2019, 2018 and 2017, the costs of the Company’s contributions to the defined contribution plans amounted to $5,941,209, $5,581,682, and $3,763,276, respectively. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. |
Share-based Payment | Share-based Payment The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. For graded vesting awards, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived assets, including property, plant and equipment, land use rights and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. |
Earnings per Share | Earnings per Share Basic earnings per ordinary share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary share outstanding during the year using the two-class method. Under the two-class method, net income is allocated between ordinary share and other participating securities based on their participating rights in undistributed earnings. The Company’s nonvested shares were considered participating securities since the holders of these securities participate in dividends on the same basis as ordinary shareholders. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary share equivalent, if any, by the weighted average number of ordinary share and dilutive ordinary share equivalent outstanding during the year. Potential dilutive securities are not included in the calculation of diluted earnings per share if the impact is anti-dilutive. |
Segment Reporting | Segment Reporting The Company uses the management approach in determining reportable operating segments. The management approach considers the internal reporting used by the chief operating decision maker for making operating decisions about the allocation of resources of the segment and the assessment of its performance in determining the Company’s reportable operating segments. As a result of the business combination completed on January 1, 2018 as described in Note 3, the Company classified the reportable operating segments for the year ended December 31, 2019 and 2018 into (i) biopharmaceutical products and (ii) biomaterial products. Biopharmaceutical products currently include plasma products and placenta polypeptide. The Company had one operating segment, biopharmaceutical products segment, which included plasma-based products and placenta polypeptide for the years of 2017. Substantially all of the Company’s operations and customers are located in the PRC, and therefore, no geographic information is presented. |
Contingencies | Contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations and tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Disclosure will be made if an unfavorable outcome is determined to be reasonably possible but not probable, or if the amount of loss cannot be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) . In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12, Income Tax (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of cash at banks | As of December 31, 2019 and 2018, the Company maintained cash and cash equivalents at banks in the following locations: December 31, 2019 December 31, 2018 USD USD PRC, excluding Hong Kong 78,412,035 158,739,504 Hong Kong 1,153,006 3,936,815 U.S. 80,745,824 175,133,834 Total 160,310,865 337,810,153 |
Schedule of estimated useful lives of property, plant and equipment | Depreciation on property, plant and equipment is calculated on the straight-line method over the estimated useful lives of the assets. Estimated useful lives of the assets are as follows: Buildings 20‑45 years Machinery and equipment 10 years Furniture, fixtures, office equipment and vehicles 5‑10 years |
Schedule of estimated useful lives of intangible assets | Permits and license 5‑10 years Customer relationships 7 years Technical know-how 3‑12 years Others 5‑10 years |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BUSINESS COMBINATION | |
Schedule of business acquisitions, by acquisition | The following table presents the amounts recognized for assets acquired and liabilities assumed for TianXinFu as of the acquisition date. The noncontrolling interest represents the fair value of the 20% equity interest not held by the Company: As of January 01, 2018 USD Cash and cash equivalents 97,702,278 Accounts receivable 312,832 Inventories 2,745,771 Other current assets 283,824 Property, plant and equipment 6,522,447 Land use rights 4,135,141 Intangible assets 63,725,856 Deferred income tax assets 480,334 Current liabilities (6,129,418) Deferred income tax liabilities (10,382,902) Fair value of noncontrolling interest (53,871,002) Goodwill 329,364,009 Total purchase consideration 434,889,170 |
Schedule of unaudited proforma consolidated statements of comprehensive income | Unaudited pro forma consolidated statements of comprehensive income for the year ended December 31, 2017: December 31, 2017 USD Sales 412,248,989 Net income 100,749,486 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of accounts receivable | Accounts receivable at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Accounts receivable 101,379,309 126,352,173 Less: Allowance for doubtful accounts (1,108,873) (1,236,331) Total 100,270,436 125,115,842 |
Accounts Receivable [Member] | |
Schedule of activity in the allowance for doubtful accounts | The activity in the allowance for doubtful accounts – accounts receivable for the years ended December 31, 2019, 2018 and 2017 are as follows: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Beginning balance 1,236,331 590,991 533,596 Provisions — 655,148 23,783 Reversal of allowance (77,624) — — Foreign currency translation adjustment (49,834) (9,808) 33,612 Ending balance 1,108,873 1,236,331 590,991 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Receivables And Prepayments [Member] | |
Prepayments And Other Current Assets [Line Items] | |
Schedule of activity in the allowance for doubtful accounts | The activity in the allowance for doubtful accounts –prepayments and other receivables for the years ended December 31, 2019, 2018 and 2017 are as follows: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Beginning balance 4,783,093 4,960,020 4,671,896 Provisions — 96,267 — Reversal of allowance (24,959) — — Foreign currency translation adjustment (45,331) (273,194) 288,124 Ending balance 4,712,803 4,783,093 4,960,020 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
Schedule of inventories | Inventories at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Raw materials 106,799,042 124,408,741 Work-in-process 75,439,226 57,457,153 Finished goods 68,489,992 61,429,618 Total 250,728,260 243,295,512 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Property, plant and equipment at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Buildings 87,496,197 86,923,161 Machinery and equipment 124,893,555 111,797,936 Furniture, fixtures, office equipment and vehicles 12,616,722 11,670,963 Construction in progress 10,960,485 7,713,523 Total property, plant and equipment, gross 235,966,959 218,105,583 Accumulated depreciation (58,459,783) (42,447,406) Impairment of property, plant and equipment (2,045,875) (2,060,844) Total property, plant and equipment, net 175,461,301 173,597,333 Prepayment for property, plant and equipment 2,135,262 4,730,028 Property, plant and equipment, net 177,596,563 178,327,361 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS | |
Schedule of intangible assets | Intangible assets at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Permits and license 4,275,567 4,579,081 Customer relationship 51,473,394 52,320,870 Technical know-how 7,037,994 7,153,870 In-process research and development assets 751,102 1,194,740 Others 983,526 1,041,652 Total intangible assets 64,521,583 66,290,213 Accumulated amortization (20,453,522) (13,031,342) Total intangible assets, net 44,068,061 53,258,871 |
Schedule of estimated annual amortization expense | The estimated annual amortization expense for intangible assets in each of the next five years is as follows: For the Years Ended December 31, Amount USD 2020 7,998,798 2021 7,987,360 2022 7,983,682 2023 7,925,391 2024 7,860,769 Total 39,756,000 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Schedule of condensed consolidated balance sheet information related to leases | The impact of Topic 842 on the December 31, 2019 condensed consolidated balance sheet was as follows: December 31, 2019 USD Other non-current assets 5,566,093 Other payables and accrued expenses 1,172,158 Other liabilities 4,372,418 Total lease liabilities 5,544,576 |
Schedule of condensed supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: December 31, 2019 USD Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows 827,089 Right of use assets obtained in exchange for lease obligations: 5,566,093 |
Schedule of maturity analysis of the Company's operating leases | A maturity analysis of the Company’s operating leases as of December 31, 2019 was as follows: Future undiscounted cash flows: Amount USD 2020 1,410,155 2021 1,207,870 2022 1,211,943 Thereafter 2,468,904 Total 6,298,872 Discount factor (754,296) Lease liability 5,544,576 Amounts due within 12 months 1,172,158 Non-current lease liability 4,372,418 |
Schedule of future minimum annual lease payments as per topic 840 | As previously disclosed in the consolidated financial statements for the year ended December 31, 2018 and under the previous lease standard (Topic 840), future minimum annual lease payments for the years subsequent to December 31, 2018 and in aggregate are as follows: Amount USD 2019 848,731 2020 938,551 2021 167,378 2022 4,095 Thereafter 170,297 Total minimum payments 2,129,052 |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
Schedule of other payables and accrued expenses | Other payables and accrued expenses at December 31, 2019 and 2018 consisted of the following: December 31, 2019 December 31, 2018 USD USD Payables to a potential investor (1) 8,723,540 8,574,254 Payable to Guizhou Eakan Investing Corp. (2) 2,087,030 2,121,392 Salaries and bonuses payable 26,439,393 23,543,535 Accruals for sales promotion fee 32,335,868 29,401,827 Payables for construction work 3,591,000 8,181,773 Other tax payables 1,802,797 1,456,184 Advance from customers (3) 7,631,941 9,101,834 Deposits received 3,120,134 7,463,172 Lease liability - current 1,172,158 — Others 12,839,489 10,089,822 Total 99,743,350 99,933,793 (1) The payables to a potential investor comprises deposits received from a potential investor in the amount of $4,896,494 and $4,977,112 as of December 31, 2019 and 2018, respectively, and related interest plus penalty on these deposits totaling $3,827,046 and $3,597,142 as of December 31, 2019 and 2018, respectively. (2) Guizhou Taibang has payables to Guizhou Eakan Investing Corp., amounting to approximately $2,087,030 and $2,121,392 as of December 31, 2019 and 2018, respectively. The Company borrowed this interest free advance for working capital purpose for Guizhou Taibang. The balance is due on demand. See Note 19. (3) The change in advance from customers primarily represents cash received, less amounts recognized as sales during the year. All the advance from customers at December 31, 2018 was recognized in sales during the year ended December 31, 2019. |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAX | |
Schedule of components of earnings (losses) before income tax expense by jurisdictions | The components of earnings (losses) before income tax expense by jurisdictions are as follows: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD PRC, excluding Hong Kong 202,870,388 175,225,854 171,787,763 U.S. (12,932,509) (11,303,223) (28,866,395) BVI 1,563,160 2,341,136 3,488,680 Hong Kong (7,328) (260,472) (2,280) Total 191,493,711 166,003,295 146,407,768 |
Schedule of income tax expense | Income tax expense for the years ended December 31, 2019, 2018 and 2017 represents current income tax expense and deferred income tax (benefit)/expense: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD Current income tax expense-PRC 30,228,726 29,715,744 27,133,958 Current income tax expense-US 307,043 (7,519,674) 40,290,367 Deferred income tax benefit-PRC (2,770,534) (4,657,379) (3,252,516) Deferred income tax expense-US 333,290 497,489 — Total income tax expense 28,098,525 18,036,180 64,171,809 |
Schedule of reconciliation of income tax expense | The effective income tax rate based on income tax expense and earnings before income taxes reported in the consolidated statements of comprehensive income differs from the PRC statutory income tax rate of 25% due to the following: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 (in percentage to earnings before income tax expense) PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Non-deductible expenses: Share-based compensation 1.8 % 1.4 % 3.7 % Others 0.4 % 0.9 % 1.1 % Tax rate differential (0.3) % (0.5) % (0.9) % Effect of PRC preferential tax rate (9.4) % (9.0) % (11.1) % Bonus deduction on research and development expenses (2.4) % (2.3) % (1.5) % Change in valuation allowance 0.0 % 0.4 % (0.6) % Repatriation tax — (4.5) % 29.4 % Tax effect of equity method investment 0.2 % 0.3 % (0.6) % Excess tax benefits from stock option exercises (0.6) % (0.8) % (0.7) % Effective income tax rate 14.7 % 10.9 % 43.8 % |
Schedule of deferred tax assets and liabilities | As of December 31, 2019 and 2018, significant temporary differences between the tax basis and financial statement basis of assets and liabilities that gave rise to deferred taxes were principally related to the following: December 31, 2019 December 31, 2018 USD USD Deferred income tax assets arising from: -Accrued expenses 8,982,660 7,587,118 -Deferred income 177,383 213,086 -Property, Plant and Equipment 1,079,536 1,149,033 -Other non-current assets 190,440 158,607 -Tax loss carryforwards 3,120,172 4,300,813 Gross deferred income tax assets 13,550,191 13,408,657 Less: valuation allowance (3,120,172) (4,300,813) Net deferred income tax assets 10,430,019 9,107,844 Deferred income tax liabilities arising from: - Property, plant and equipment (115,677) (129,636) - Intangible assets (6,575,677) (7,947,786) - Land use rights (529,090) (552,602) - Equity method investment (830,779) (497,489) - Dividend withholding tax (3,774,778) (3,774,778) Deferred income tax liabilities (11,826,001) (12,902,291) Classification on consolidated balance sheets: Deferred income tax assets, included in other non-current assets 10,430,019 9,107,844 Deferred income tax liabilities, included in other liabilities (11,826,001) (12,902,291) |
Schedule of movement of the valuation allowance for deferred income tax assets | The following table presents the movement of the valuation allowance for deferred income tax assets for the years ended December 31, 2019, 2018 and 2017: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Beginning balance 4,300,813 5,031,657 26,629,179 Addition (deduction) during the year (1,123,767) (507,897) (21,927,117) Foreign currency translation adjustment (56,874) (222,947) 329,595 Ending balance 3,120,172 4,300,813 5,031,657 |
OPTIONS AND NONVESTED SHARES (T
OPTIONS AND NONVESTED SHARES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OPTIONS AND NONVESTED SHARES | |
Schedule of summary of stock options activity | A summary of stock options activity for the years ended December 31, 2019, 2018 and 2017 is as follows: Weighted Weighted Average Average Remaining Number of Exercise Contractual Aggregate Options Price Term in years Intrinsic Value USD USD Outstanding as of January 1, 2017 314,491 10.32 3.84 30,568,083 Granted — — Exercised (85,242) 10.18 (7,868,258) Forfeited and expired — — Outstanding as of December 31, 2017 229,249 10.37 2.61 15,168,276 Granted — — Exercised (121,945) 9.71 (9,137,231) Forfeited and expired — — Outstanding as of December 31, 2018 107,304 11.13 2.28 7,570,681 Granted — — Exercised (49,900) 12.26 (3,910,884) Forfeited and expired — — Outstanding as of December 31, 2019 57,404 10.14 1.93 4,106,623 Vested as of December 31, 2019 57,404 10.14 1.93 4,106,623 Exercisable as of December 31, 2019 57,404 10.14 1.93 4,106,623 |
Schedule of summary of nonvested shares activity | A summary of nonvested shares activity for the year ended December 31, 2019, 2018 and 2017 is as follow: Number of Grant date weighted nonvested shares average fair value USD Outstanding as of January 1, 2017 912,650 104.51 Granted 356,150 89.94 Vested (353,694) 91.32 Forfeited (1,080) 98.20 Outstanding as of December 31, 2017 914,026 103.95 Granted 333,620 79.23 Vested (256,830) 100.91 Forfeited (385,425) 98.86 Outstanding as of December 31, 2018 605,391 94.85 Granted — — Vested (244,481) 100.93 Forfeited (6,300) 96.71 Outstanding as of December 31, 2019 354,610 90.63 |
Summary of restricted share units activity | A summary of restricted share units activity for the year ended December 31, 2019 is as follow: Number of Grant date weighted restricted share units average fair value USD Outstanding as of January 1, 2019 — — Granted 407,786 96.78 Vested — — Forfeited — — Outstanding as of December 31, 2019 407,786 96.78 |
SALES (Tables)
SALES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SALES | |
Schedule of sales by product categories | The Company’s sales by product categories for the years ended December 31, 2019, 2018 and 2017 are as follows: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD Plasma products: Human Albumin 187,835,401 149,369,846 132,498,791 Immunoglobulin products: Human Immunoglobulin for Intravenous Injection 117,147,536 113,490,790 117,511,797 Other Immunoglobulin products 72,071,759 59,470,912 50,147,328 Others 53,706,467 31,677,439 21,049,636 Placenta Polypeptide 26,977,805 68,157,257 49,199,288 Biopharmaceutical products 457,738,968 422,166,244 370,406,840 Artificial Dura Mater 42,275,272 40,644,561 — Others 3,730,682 4,066,764 — Biomaterial products 46,005,954 44,711,325 — Total 503,744,922 466,877,569 370,406,840 |
Schedule of sales by channel | The Company’s sales by channel for the years ended December 31, 2019, 2018 and 2017 are as follows: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD Plasma products: Distributors 220,149,266 174,698,620 126,381,596 Hospitals and inoculation centers 210,611,897 179,310,367 194,825,956 430,761,163 354,008,987 321,207,552 Placenta Polypeptide: Distributors 26,977,805 68,157,257 49,199,288 Total Biopharmaceutical products 457,738,968 422,166,244 370,406,840 Biomaterial products: Distributors 43,774,081 42,717,750 — Hospitals 2,231,873 1,993,575 — Total Biomaterial products 46,005,954 44,711,325 — Total 503,744,922 466,877,569 370,406,840 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of contractual obligation | The following table sets forth the Company’s material contractual obligations as of December 31, 2019: Payments due by period Less than One to Two to Three to Four to Contractual Obligations one year two years three years four years five years Purchase of plasma commitment (1) 17,633,688 16,026,209 — — — Capital commitment 9,919,228 1,102,136 — — — Total 27,552,916 17,128,345 — — — (1) See Note 10. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for the periods indicated: For the Years Ended December 31, December 31, December 31, 2019 2018 2017 USD USD USD Net income attributable to China Biologic Products Holdings, Inc. 138,807,748 128,056,302 67,943,035 Earnings allocated to participating nonvested shares (1,690,519) (3,072,170) (2,188,633) Net income used in basic and diluted earnings per ordinary share 137,117,229 124,984,132 65,754,402 Weighted average shares used in computing basic earnings per ordinary share 38,657,553 35,304,294 27,361,561 Diluted effect of stock option and restricted share units 240,411 128,665 244,062 Weighted average shares used in computing diluted earnings per ordinary share 38,897,964 35,432,959 27,605,623 Basic earnings per ordinary share 3.55 3.54 2.40 Diluted earnings per ordinary share 3.53 3.53 2.38 |
CHINA BIOLOGIC PRODUCTS HOLDI_2
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. (PARENT COMPANY) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. (PARENT COMPANY) | |
Schedule of condensed balance sheets | Condensed Balance Sheets: December 31, 2019 December 31, 2018 USD USD Cash 80,745,824 175,133,834 Time deposits 432,000,000 430,000,000 Prepayments and prepaid expenses 2,443,868 12,140,443 Total Current Assets 515,189,692 617,274,277 Property, plant and equipment, net 49 88 Investment in and amounts due from subsidiaries 1,214,913,704 1,139,337,487 Total Assets 1,730,103,445 1,756,611,852 Other payables and accrued expenses 5,723,648 4,544,071 Income tax payable - current 2,928,698 2,621,655 Total Current Liabilities 8,652,346 7,165,726 Income tax payable - non current 24,905,728 26,899,038 Other liabilities 830,779 497,489 Total Liabilities 34,388,853 34,562,253 Total Shareholders’ Equity 1,695,714,592 1,722,049,599 Total Liabilities and Shareholders’ Equity 1,730,103,445 1,756,611,852 |
Schedule of condensed statements of comprehensive income | Condensed Statements of Comprehensive Income: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Equity in income of subsidiaries 152,380,590 132,337,339 137,099,797 General and administrative expenses (25,944,997) (16,575,019) (28,879,890) Interest income 13,012,488 5,271,797 13,495 Earnings before income tax expense 139,448,081 121,034,117 108,233,402 Income tax (benefits)/expense 640,333 (7,022,185) 40,290,367 Net Income 138,807,748 128,056,302 67,943,035 |
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows: For the Years Ended December 31, 2019 December 31, 2018 December 31, 2017 USD USD USD Net cash provided by / (used in) operating activities 8,008,005 (6,211,606) (3,830,330) Net cash used in investing activities (2,000,000) (404,812,895) (3,000,000) Net cash (used in) / provided by financing activities (100,396,015) 581,449,534 — Net (decrease) / increase in cash (94,388,010) 170,425,033 (6,830,330) Cash at beginning of year 175,133,834 4,708,801 11,539,131 Cash at end of year 80,745,824 175,133,834 4,708,801 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION | |
Schedule of segment information | Segment information for the years ended and as of December 31, 2019 and December 31, 2018 are as follows: Biopharmaceutical Biomaterial Products Products Total USD USD USD Year ended December 31, 2019 Sales 457,738,968 46,005,954 503,744,922 Cost of sales 170,119,887 4,546,657 174,666,544 Gross profit 287,619,081 41,459,297 329,078,378 Income from operations 146,889,589 16,758,294 163,647,883 Net income 138,237,792 25,157,394 163,395,186 Equity in income of an equity method investee 1,587,067 — 1,587,067 Interest income 21,292,269 29,970 21,322,239 Share-based compensation 26,600,015 — 26,600,015 Depreciation and Amortization 17,729,392 8,511,479 26,240,871 Segment assets 2,195,660,575 368,932,329 2,564,592,904 Capital expenditures 22,966,579 3,826,444 26,793,023 Equity method investment 16,725,513 — 16,725,513 Biopharmaceutical Biomaterial Products Products Total USD USD USD Year ended December 31, 2018 Sales 422,166,244 44,711,325 466,877,569 Cost of sales 141,683,089 5,104,147 146,787,236 Gross profit 280,483,155 39,607,178 320,090,333 Income from operations 128,980,355 17,192,396 146,172,751 Net income 131,561,108 16,406,007 147,967,115 Equity in income of an equity method investee 2,368,995 — 2,368,995 Interest income 13,704,954 1,796 13,706,750 Share-based compensation 23,130,570 — 23,130,570 Depreciation and Amortization 13,902,507 9,322,844 23,225,351 Income tax expense 15,353,208 2,682,972 18,036,180 Segment assets 2,095,996,321 348,885,628 2,444,881,949 Capital expenditures 35,245,016 1,471,374 36,716,390 Equity method investment 15,428,028 — 15,428,028 |
Schedule of reconciliation of segment assets to consolidated total assets | Reconciliation of segment assets to consolidated total assets: December 31, December 31, 2019 2018 USD USD Total segment assets 2,564,592,904 2,444,881,949 Elimination of intercompany investment balances (626,734,407) (434,903,268) Consolidated total assets 1,937,858,497 2,009,978,681 |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SIGNIFICANT CONCENTRATIONS AND RISKS (Details) | Jun. 28, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017 | Jan. 01, 2018 |
Basis Of Presentation Significant Concentration And Risk [Line Items] | |||||
Total cash at banks and deposits including insured amount | $ 925,817,723 | $ 951,336,787 | |||
Cash, Insured Amount | $ 2,661,396 | $ 3,227,530 | |||
Customers that individually comprised 10% or more of the total sales | 0 | 0 | 0 | ||
Suppliers that comprised 10% or more of the total purchases | 1 | 1 | 1 | ||
Customers represented 10% or more of trade receivables | 0 | 0 | |||
Suppliers that represented more than 10% of accounts payables | 0 | ||||
TianXinFu | |||||
Basis Of Presentation Significant Concentration And Risk [Line Items] | |||||
Cost Method Investments | 80.00% | ||||
Owenrship interest acquired | 80.00% | ||||
Human Albumin [Member] | |||||
Basis Of Presentation Significant Concentration And Risk [Line Items] | |||||
Major product sales percentage | 37.30% | 32.00% | 35.80% | ||
Human Immunoglobulin For Intravenous Injection [Member] | |||||
Basis Of Presentation Significant Concentration And Risk [Line Items] | |||||
Major product sales percentage | 23.20% | 24.30% | 31.70% | ||
TianXinFu | |||||
Basis Of Presentation Significant Concentration And Risk [Line Items] | |||||
Total cash consideration | $ 118,900,000 | ||||
Taibang Biotech [Member] | Fujian Pingtan Centurium Investment Partnership [Member] | |||||
Basis Of Presentation Significant Concentration And Risk [Line Items] | |||||
Owenrship interest acquired | 15.00% | ||||
Taibang Biotech [Member] | Xinyu Yongshuo Management and Consulting Partnership [Member] | |||||
Basis Of Presentation Significant Concentration And Risk [Line Items] | |||||
Owenrship interest acquired | 5.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($)segment | Dec. 31, 2017CNY (¥)segment | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2012USD ($) | Dec. 31, 2012CNY (¥) | |
Significant Accounting Policies [Line Items] | ||||||||||
Research and development expenses | $ 11,734,590 | $ 9,524,412 | $ 6,503,712 | |||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 1,173,008 | 1,192,320 | ||||||||
Impairment loss of equity method investment recognized | $ 0 | 0 | 0 | |||||||
Defined Contribution Plan Minimum Annual Contributions Per Employee Percent | 25.00% | 25.00% | ||||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 43.00% | 43.00% | ||||||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 5,941,209 | 5,581,682 | $ 3,763,276 | |||||||
Number of Operating Segments | segment | 1 | 1 | ||||||||
Operating Lease, Right-of-Use Asset | 5,566,093 | |||||||||
Operating lease liability | 5,544,576 | |||||||||
Prepaid Expenses and Other Current Assets [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Deferred Tax Assets, Net, Noncurrent | $ 10,430,019 | $ 9,107,844 | ||||||||
Xian Huitian Blood Products [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Equity method investment percentage | 35.00% | 35.00% | ||||||||
Guizhou Taibang [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Grants received | $ 2,989,215 | ¥ 18,350,000 | ||||||||
Grants amortized amount | $ 266,217 | $ 277,801 | $ 271,754 | |||||||
Shandong Taibang [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Grants received | $ 2,452,864 | ¥ 15,000,000 | ||||||||
Grants amortized amount | 217,616 | 227,085 | 222,143 | |||||||
Research and Development Expense [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Grants received | $ 1,225,147 | ¥ 8,468,100 | $ 704,795 | ¥ 4,837,300 | $ 368,093 | ¥ 2,405,210 | ||||
Minimum [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Equity method investment percentage | 20.00% | |||||||||
Contractual period of rights | 40 years | 40 years | ||||||||
Maximum [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Equity method investment percentage | 50.00% | |||||||||
Contractual period of rights | 50 years | 50 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and cash equivalents (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents at banks | $ 160,310,865 | $ 337,810,153 |
United States of America, Dollars | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents at banks | 80,745,824 | 175,133,834 |
PRC Excluding Hong Kong [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents at banks | 78,412,035 | 158,739,504 |
Hong Kong [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents at banks | $ 1,153,006 | $ 3,936,815 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of the assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 20 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 45 years |
Machinery and Equipment [Member] | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 10 years |
Furniture, Fixtures, Office Equipment and Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture, Fixtures, Office Equipment and Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Useful Life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Maximum [Member] | Permits and license | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Maximum [Member] | Customer relationship [Member] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Maximum [Member] | Technical know-how [Member] | |
Finite-Lived Intangible Asset, Useful Life | 12 years |
Maximum [Member] | Others | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Minimum [Member] | Permits and license | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Minimum [Member] | Technical know-how [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Minimum [Member] | Others | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) - USD ($) | Oct. 12, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 5,521,000 | |||
Goodwill | $ 308,509,397 | $ 313,588,803 | ||
Goodwill, Foreign Currency Translation Loss | 5,079,406 | $ 15,775,206 | ||
Business Combination Sale of Revenue | 44,700,000 | |||
Business Combination Net Income Loss | 16,400,000 | |||
Biomaterial products [Member] | ||||
Goodwill | 182,000,000 | |||
Biopharmaceutical products [Member] | ||||
Goodwill | 147,000,000 | |||
TianXinFu | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | |||
In-process research and development assets [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 1,254,937 | |||
Customer relationship [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 54,956,664 | |||
Technical know-how [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 7,514,256 | |||
Maximum [Member] | Customer relationship [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 7 years | |||
Maximum [Member] | Technical know-how [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 12 years | |||
Minimum [Member] | Technical know-how [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||
PW Medtech Group Limited [Member] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | |||
Cost Method Investments | 80.00% |
BUSINESS COMBINATION - Business
BUSINESS COMBINATION - Business acquisitions, by acquisition (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Goodwill | $ 308,509,397 | $ 313,588,803 | |
TianXinFu | |||
Cash and cash equivalents | $ 97,702,278 | ||
Accounts receivable | 312,832 | ||
Inventories | 2,745,771 | ||
Other current assets | 283,824 | ||
Property, plant and equipment | 6,522,447 | ||
Land use rights | 4,135,141 | ||
Intangible assets | 63,725,856 | ||
Deferred income tax assets | 480,334 | ||
Current liabilities | (6,129,418) | ||
Deferred income tax liabilities | (10,382,902) | ||
Fair value of noncontrolling interest | (53,871,002) | ||
Goodwill | 329,364,009 | ||
Total purchase consideration | $ 434,889,170 |
BUSINESS COMBINATION - Busine_2
BUSINESS COMBINATION - Business acquisition, pro forma information (Details) - TianXinFu | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Sales | $ 412,248,989 |
Net income | $ 100,749,486 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ACCOUNTS RECEIVABLE | ||
Accounts receivable | $ 101,379,309 | $ 126,352,173 |
Less: Allowance for doubtful accounts | (1,108,873) | (1,236,331) |
Total | $ 100,270,436 | $ 125,115,842 |
ACCOUNTS RECEIVABLE - Activity
ACCOUNTS RECEIVABLE - Activity in the allowance for doubtful accounts (Details) - Accounts Receivable [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ACCOUNTS RECEIVABLE | |||
Beginning balance | $ 1,236,331 | $ 590,991 | $ 533,596 |
Provisions | 655,148 | 23,783 | |
Reversal of allowance | (77,624) | ||
Foreign currency translation adjustment | (49,834) | (9,808) | 33,612 |
Ending balance | $ 1,108,873 | $ 1,236,331 | $ 590,991 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
PREPAYMENTS AND OTHER CURRENT ASSETS | ||
Other Receivables | $ 12,595,296 | $ 15,897,405 |
Prepaid Expense | $ 7,181,729 | 9,081,680 |
Prepayment to an investment bank for a share repurchase program | $ 10,000,000 |
PREPAYMENTS AND OTHER CURRENT_4
PREPAYMENTS AND OTHER CURRENT ASSETS- Activities in allowance for doubtful accounts (Details) - Other Receivables And Prepayments [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Beginning balance | $ 4,783,093 | $ 4,960,020 | $ 4,671,896 |
Provisions | 0 | 96,267 | 0 |
Reversal of allowance | 24,959 | ||
Foreign currency translation adjustment | (45,331) | (273,194) | 288,124 |
Ending balance | $ 4,712,803 | $ 4,783,093 | $ 4,960,020 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
INVENTORIES | ||
Raw materials | $ 106,799,042 | $ 124,408,741 |
Work-in-process | 75,439,226 | 57,457,153 |
Finished goods | 68,489,992 | 61,429,618 |
Total | $ 250,728,260 | $ 243,295,512 |
INVENTORIES - Additional inform
INVENTORIES - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)t | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Inventory | |||
Inventory Write-down | $ 3,379,600 | $ 0 | $ 0 |
Net realizable value of inventories | $ 250,728,260 | $ 243,295,512 | |
Xinjiang Deyuan | |||
Inventory | |||
Tons of source plasma expected to go obsolete | t | 19 | ||
Write-down of inventories (as a percent) | 100.00% | ||
Net realizable value of inventories | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | $ 235,966,959 | $ 218,105,583 |
Accumulated depreciation | (58,459,783) | (42,447,406) |
Impairment of property, plant and equipment | (2,045,875) | (2,060,844) |
Total property, plant and equipment, net | 175,461,301 | 173,597,333 |
Prepayment for property, plant and equipment | 2,135,262 | 4,730,028 |
Property, plant and equipment, net | 177,596,563 | 178,327,361 |
Buildings [Member] | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | 87,496,197 | 86,923,161 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | 124,893,555 | 111,797,936 |
Furniture, Fixtures, Office Equipment and Vehicles [Member] | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | 12,616,722 | 11,670,963 |
Construction in Progress [Member] | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | $ 10,960,485 | $ 7,713,523 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Additional information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss on disposal of property, plant and equipment | $ (297,504) | $ (1,001,000) | $ (3,228,845) |
Depreciation expense | 16,517,254 | 13,809,041 | 11,691,731 |
Interest Expenses, Capitalized into Construction in Progress | $ 0 | 0 | 0 |
Shandong Taibang [Member] | |||
Loss on disposal of property, plant and equipment | $ (1,001,000) | $ (3,228,845) |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible Assets, Gross (Excluding Goodwill) | $ 64,521,583 | $ 66,290,213 |
Accumulated amortization | (20,453,522) | (13,031,342) |
Total intangible assets, net | 44,068,061 | 53,258,871 |
Permits and license [Member] | ||
Intangible Assets, Gross (Excluding Goodwill) | 4,275,567 | 4,579,081 |
Customer relationship [Member] | ||
Intangible Assets, Gross (Excluding Goodwill) | 51,473,394 | 52,320,870 |
Technical know-how [Member] | ||
Intangible Assets, Gross (Excluding Goodwill) | 7,037,994 | 7,153,870 |
In-process research and development assets [Member] | ||
Intangible Assets, Gross (Excluding Goodwill) | 751,102 | 1,194,740 |
Others [Member] | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 983,526 | $ 1,041,652 |
INTANGIBLE ASSETS - Estimated a
INTANGIBLE ASSETS - Estimated annual amortization expense (Details) | Dec. 31, 2019USD ($) |
INTANGIBLE ASSETS | |
2020 | $ 7,998,798 |
2021 | 7,987,360 |
2022 | 7,983,682 |
2023 | 7,925,391 |
2024 | 7,860,769 |
Total | $ 39,756,000 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTANGIBLE ASSETS | |||
Amortization of Intangible Assets | $ 8,116,160 | $ 8,742,607 | $ 497,344 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | Jun. 28, 2019USD ($) | Jun. 28, 2018director | Nov. 28, 2018USD ($) | Aug. 24, 2018$ / sharesshares | Sep. 04, 2018shares | Aug. 24, 2018USD ($)$ / sharesshares | Sep. 21, 2018shares | Dec. 31, 2019USD ($) | Mar. 09, 2020 | Jan. 23, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 12, 2017 |
Proceeds from Issuance of Private Placement | $ 590,000,000 | |||||||||||
Prepayments for investments in equity securities | $ 0 | $ 10,812,893 | ||||||||||
Equity interest in TianXinFu acquired by the Company | 80.00% | |||||||||||
Beneficially owned the Company's outstanding share capital by Centurium Capital | 25.20% | |||||||||||
TianXinFu | ||||||||||||
Total cash consideration | $ 118,900,000 | |||||||||||
Number of directors affiliated on board of directors | director | 2 | |||||||||||
Reduction in carrying amount of the noncontrolling interest | 55,100,000 | |||||||||||
Excess of the cash paid over the adjustment to the carrying amount recognized as decrease in additional paid-in capital | 63,800,000 | |||||||||||
Decrease in share of accumulated other comprehensive income | 5,200,000 | |||||||||||
Increase in additional paid-in capital | $ 5,200,000 | |||||||||||
Taibang Biotech [Member] | Fujian Pingtan Centurium Investment Partnership [Member] | ||||||||||||
Owenrship interest acquired | 15.00% | |||||||||||
Taibang Biotech [Member] | Xinyu Yongshuo Management and Consulting Partnership [Member] | ||||||||||||
Owenrship interest acquired | 5.00% | |||||||||||
Beachhead Holdings Limited Centurium and Double Double Holdings Limited [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 1,800,000 | |||||||||||
Number of Ordinary Shares Authorized to be Issued | shares | 3,050,000 | |||||||||||
Number of Additional Ordinary Shares Issued | shares | 1,250,000 | |||||||||||
PW Medtech Group Limited [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 800,000 | |||||||||||
Number of Ordinary Shares Authorized to be Issued | shares | 800,000 | |||||||||||
Owenrship interest acquired | 80.00% | |||||||||||
Taijie Weiye Technology Co Ltd [Member] | ||||||||||||
Business Combination, Consideration Transferred | $ 10,812,893 | |||||||||||
Percentage of Cash Consideration Paid | 100.00% | |||||||||||
Carrying amount of investment | $ 10,000,000 | |||||||||||
Carrying amount of put option | $ 800,000 | |||||||||||
Impairment of Long Term Equity Investments | $ 0 | |||||||||||
Owenrship interest acquired | 11.55% | |||||||||||
CBP [Member] | ||||||||||||
Shares Issued, Price Per Share | $ / shares | $ 100.9 | $ 100.9 | ||||||||||
Two Third Party Investors [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 2,000,000 | |||||||||||
Number of Ordinary Shares Authorized to be Issued | shares | 2,000,000 |
LOAN RECEIVABLE (Details)
LOAN RECEIVABLE (Details) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018t | Aug. 31, 2015USD ($)t | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2015CNY (¥)t | |
LOAN RECEIVABLE | ||||||
Interest income | $ 21,322,239 | $ 13,706,750 | $ 7,623,624 | |||
Loan Receivable Offset by Accounts Payable | $ 3,716,055 | 3,784,297 | 0 | |||
Xinjiang Deyuan [Member] | ||||||
LOAN RECEIVABLE | ||||||
Number of tonnes agreed to sell | t | 500 | 500 | ||||
Additional tonnes agreed to sell | t | 500 | |||||
Extended number of years of agreement | 3 years | |||||
Percentage of equity interest pledged to secure the loan | 58.02% | |||||
Debt Instrument, Collateral | Deyuan Shareholder’s 58.02% equity interest in Xinjiang Deyuan. | |||||
Loan Receivable Offset by Accounts Payable | $ 3,716,055 | 3,784,297 | ||||
Xinjiang Deyuan [Member] | Long-term Debt [Member] | ||||||
LOAN RECEIVABLE | ||||||
Cooperation Agreement Loan Principal Amount | $ 43,002,000 | ¥ 300,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | ||||
Debt Instrument, Maturity Date | Jul. 31, 2018 | |||||
Interest income | 2,162,210 | 2,904,886 | 2,514,936 | |||
Interest Receivable Offset By Accounts Payable For The Purchase Of Plasma From Xinjiang Deyuan | 2,308,913 | 2,062,426 | 0 | |||
Proceeds from Interest Received | $ 0 | $ 695,757 | $ 2,514,936 |
LEASES (Details)
LEASES (Details) | Dec. 31, 2019segment | Dec. 31, 2019USD ($) |
LEASES | ||
Number of operating leases | segment | 7 | |
Weighted average remaining lease term | 13 years 5 months 8 days | 13 years 5 months 8 days |
Weighted average discount rates | 4.75% | 4.75% |
Rent expense | $ 906,670 | |
Variable lease costs | 0 | |
Sublease income for leased assets | $ 0 |
LEASES - Condensed consolidated
LEASES - Condensed consolidated balance sheet (Details) | Dec. 31, 2019USD ($) |
Condensed consolidated balance sheet | |
Other non-current assets | $ 5,566,093 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent |
Other payables and accrued expenses | $ 1,172,158 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accounts Payable and Accrued Liabilities |
Other liabilities | $ 4,372,418 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent |
Total lease liabilities | $ 5,544,576 |
LEASES - Condensed supplemental
LEASES - Condensed supplemental cash flow (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
LEASES | |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows | $ 827,089 |
Right of use assets obtained in exchange for lease obligations: | $ 5,566,093 |
LEASES - Maturity analysis of t
LEASES - Maturity analysis of the Company's operating leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Maturity analysis of the Company's operating leases | ||
2020 | $ 1,410,155 | |
2021 | 1,207,870 | |
2022 | 1,211,943 | |
Thereafter | 2,468,904 | |
Total | 6,298,872 | |
Discount factor | (754,296) | |
Lease liability | 5,544,576 | |
Amounts due within 12 months | 1,172,158 | |
Non-current lease liability | $ 4,372,418 | |
Future minimum annual lease payments | ||
2019 | $ 848,731 | |
2020 | 938,551 | |
2021 | 167,378 | |
2022 | 4,095 | |
Thereafter | 170,297 | |
Total minimum payments | 2,129,052 | |
Rent expense | $ 807,088 |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Payables to a potential investor | $ 8,723,540 | $ 8,574,254 |
Payable to Guizhou Eakan Investing Corp | 2,087,030 | 2,121,392 |
Salaries and bonuses payable | 26,439,393 | 23,543,535 |
Accruals for sales promotion fee | 32,335,868 | 29,401,827 |
Payables for construction work | 3,591,000 | 8,181,773 |
Other tax payables | 1,802,797 | 1,456,184 |
Advance from customers | 7,631,941 | 9,101,834 |
Deposits received | 3,120,134 | 7,463,172 |
Amounts due within 12 months | 1,172,158 | |
Others | 12,839,489 | 10,089,822 |
Total | $ 99,743,350 | $ 99,933,793 |
OTHER PAYABLES AND ACCRUED EX_4
OTHER PAYABLES AND ACCRUED EXPENSES - Additional information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Payables To Guizhou Eakan Investing Corp | $ 2,087,030 | $ 2,121,392 |
Potential Investors [Member] | ||
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Deposits received from a potential investor | 4,896,494 | 4,977,112 |
Interest plus penalty on these deposits | $ 3,827,046 | $ 3,597,142 |
INCOME TAX (Details)
INCOME TAX (Details) | 1 Months Ended | 12 Months Ended | 36 Months Ended | 120 Months Ended | ||||||||||
Aug. 31, 2018USD ($) | Apr. 30, 2018 | Dec. 22, 2017USD ($) | Jan. 31, 2008 | Dec. 31, 2020 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2020 | Dec. 31, 2019CNY (¥) | |
Deferred tax assets for tax loss carryforwards | $ 3,120,172 | $ 4,300,813 | $ 3,120,172 | |||||||||||
Deferred Tax Assets, Valuation Allowance | 3,120,172 | 4,300,813 | $ 5,031,657 | 3,120,172 | $ 26,629,179 | |||||||||
Subject to withholding tax at 10%, unless reduced by tax treaties | 10.00% | |||||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 | $ 0 | 0 | $ 0 | |||||||||
Deferred tax liabilities on undistributed earnings | $ 7,351,023 | |||||||||||||
Underpayment of taxes | 14,334 | $ 14,334 | ¥ 100,000 | |||||||||||
Repatriation of Foreign Earnings, Payable Term | 8 years | |||||||||||||
Income Tax Paid On Repatriated Earnings | $ 1,993,310 | 3,250,000 | ||||||||||||
Taibang Holdings [Member] | ||||||||||||||
Deferred Tax Liabilities, Reversed Amount | 2,310,512 | |||||||||||||
Shandong Taibang Biological Products Co., Ltd [Member] | ||||||||||||||
Preferential tax rate | 15.00% | 15.00% | ||||||||||||
Undistributed earnings | $ 74,000,000 | |||||||||||||
Deferred Income Tax Liabilities as a percentage of Total Undistributed Earnings | 50.00% | |||||||||||||
Distributed Earnings | $ 21,674,332 | ¥ 148,760,000 | ||||||||||||
Guizhou Taibang Biological Products Co., Ltd [Member] | ||||||||||||||
Income Tax Rate | 15.00% | |||||||||||||
Preferential tax rate | 15.00% | 15.00% | ||||||||||||
Health Forward Holdings Limited [Member] | ||||||||||||||
Income Tax Rate | 16.50% | 16.50% | 16.50% | |||||||||||
TianXinFu | ||||||||||||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||||
PRC [Member] | ||||||||||||||
Income Tax Rate | 25.00% | |||||||||||||
The United States of America [Member] | ||||||||||||||
Income Tax Rate | 21.00% | 35.00% | ||||||||||||
Tax loss carryforwards | $ 0 | $ 0 | $ 0 | |||||||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 40,300,000 | |||||||||||||
Current Income Tax Expense (Benefit) | $ (7,500,000) | |||||||||||||
Hong Kong [Member] | ||||||||||||||
Income Tax Rate | 16.50% | 16.50% | 16.50% | 16.50% | ||||||||||
PRC subsidiaries [Member] | ||||||||||||||
Deferred tax assets for tax loss carryforwards | $ 3,120,172 | 3,120,172 | ||||||||||||
Tax loss carryforwards | 14,696,748 | 14,696,748 | ||||||||||||
Deferred Tax Assets, Valuation Allowance | 3,120,172 | $ 4,300,813 | 3,120,172 | |||||||||||
Undistributed earnings | 806,200,000 | 806,200,000 | ||||||||||||
PRC subsidiaries [Member] | 2020 [Member] | ||||||||||||||
Tax loss carryforwards expiring | 4,136,265 | 4,136,265 | ||||||||||||
PRC subsidiaries [Member] | 2021 [Member] | ||||||||||||||
Tax loss carryforwards expiring | 4,568,923 | 4,568,923 | ||||||||||||
PRC subsidiaries [Member] | 2022 [Member] | ||||||||||||||
Tax loss carryforwards expiring | 716,377 | 716,377 | ||||||||||||
PRC subsidiaries [Member] | 2023 [Member] | ||||||||||||||
Tax loss carryforwards expiring | 4,076,401 | 4,076,401 | ||||||||||||
PRC subsidiaries [Member] | 2024 [Member] | ||||||||||||||
Tax loss carryforwards expiring | $ 1,198,782 | $ 1,198,782 |
INCOME TAX - Earnings (losses)
INCOME TAX - Earnings (losses) before income tax expense by jurisdictions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAX | |||
PRC, excluding Hong Kong | $ 202,870,388 | $ 175,225,854 | $ 171,787,763 |
U.S. | (12,932,509) | (11,303,223) | (28,866,395) |
BVI | 1,563,160 | 2,341,136 | 3,488,680 |
Hong Kong | (7,328) | (260,472) | (2,280) |
Total | $ 191,493,711 | $ 166,003,295 | $ 146,407,768 |
INCOME TAX - Income tax expense
INCOME TAX - Income tax expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred income tax benefit | $ (2,437,244) | $ (4,159,890) | $ (3,252,516) |
Total income tax expense | 28,098,525 | 18,036,180 | 64,171,809 |
People Republic China [Member] | |||
Current income tax expense | 30,228,726 | 29,715,744 | 27,133,958 |
Deferred income tax benefit | (2,770,534) | (4,657,379) | (3,252,516) |
US [Member] | |||
Current income tax expense | 307,043 | (7,519,674) | 40,290,367 |
Deferred income tax benefit | $ 333,290 | $ 497,489 | $ 0 |
INCOME TAX - Earnings before in
INCOME TAX - Earnings before income taxes reported in the consolidated statements (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAX | |||
PRC statutory income tax rate | 25.00% | 25.00% | 25.00% |
Non-deductible expenses: | |||
Share-based compensation | 1.80% | 1.40% | 3.70% |
Others | 0.40% | 0.90% | 1.10% |
Tax rate differential | (0.30%) | (0.50%) | (0.90%) |
Effect of PRC preferential tax rate | (9.40%) | (9.00%) | (11.10%) |
Bonus deduction on research and development expenses | (2.40%) | (2.30%) | (1.50%) |
Change in valuation allowance | 0.00% | 0.40% | (0.60%) |
Repatriation tax | 0.00% | (4.50%) | 29.40% |
Tax effect of equity method investment | 0.20% | 0.30% | (0.60%) |
Excess tax benefits from stock option exercises | (0.60%) | (0.80%) | (0.70%) |
Effective income tax rate | 14.70% | 10.90% | 43.80% |
INCOME TAX - Deferred tax asset
INCOME TAX - Deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets arising from: | ||||
-Accrued expenses | $ 8,982,660 | $ 7,587,118 | ||
-Deferred income | 177,383 | 213,086 | ||
-Property, Plant and Equipment | 1,079,536 | 1,149,033 | ||
-Other non-current assets | 190,440 | 158,607 | ||
-Tax loss carryforwards | 3,120,172 | 4,300,813 | ||
Gross deferred income tax assets | 13,550,191 | 13,408,657 | ||
Less: valuation allowance | (3,120,172) | (4,300,813) | $ (5,031,657) | $ (26,629,179) |
Net deferred income tax assets | 10,430,019 | 9,107,844 | ||
Deferred income tax liabilities arising from: | ||||
- Property, plant and equipment | (115,677) | (129,636) | ||
- Intangible assets | (6,575,677) | (7,947,786) | ||
- Land use rights | (529,090) | (552,602) | ||
- Equity method investment | (830,779) | (497,489) | ||
- Dividend withholding tax | (3,774,778) | (3,774,778) | ||
Deferred income tax liabilities | (11,826,001) | (12,902,291) | ||
Prepaid Expenses and Other Current Assets [Member] | ||||
Classification on consolidated balance sheets: | ||||
Deferred income tax assets, included in other non-current assets | 10,430,019 | 9,107,844 | ||
Deferred income tax liabilities, included in other liabilities | $ (11,826,001) | $ (12,902,291) |
INCOME TAX - Novement of the va
INCOME TAX - Novement of the valuation allowance for deferred income tax assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAX | |||
Beginning balance | $ 4,300,813 | $ 5,031,657 | $ 26,629,179 |
Addition (deduction) during the year | (1,123,767) | (507,897) | (21,927,117) |
Foreign currency translation adjustment | (56,874) | (222,947) | 329,595 |
Ending balance | $ 3,120,172 | $ 4,300,813 | $ 5,031,657 |
OPTIONS AND NONVESTED SHARES (D
OPTIONS AND NONVESTED SHARES (Details) - USD ($) shares in Millions | 1 Months Ended | 12 Months Ended | ||
May 09, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employees [Member] | ||||
Warrants and Options Disclosure [Line Items] | ||||
Shares available for issuance | 4 years | |||
General and Administrative Expense [Member] | ||||
Warrants and Options Disclosure [Line Items] | ||||
Stock compensation expense with respect to stock options | $ 0 | $ 0 | $ 0 | |
Stock compensation expense with respect to nonvested shares | $ 22,317,649 | $ 23,130,570 | $ 33,903,283 | |
Minimum [Member] | Director [Member] | ||||
Warrants and Options Disclosure [Line Items] | ||||
Shares available for issuance | 1 year | |||
Maximum [Member] | Director [Member] | ||||
Warrants and Options Disclosure [Line Items] | ||||
Shares available for issuance | 2 years | |||
2008 Equity Incentive Plan [Member] | ||||
Warrants and Options Disclosure [Line Items] | ||||
Number of ordinary shares issued | 5 | |||
Stock Incentive Option Granted Percentage | 10.00% | |||
Fair Value Market Exercise Price Percentage | 110.00% | |||
Options granted terms | 10 years |
OPTIONS AND NONVESTED SHARES -
OPTIONS AND NONVESTED SHARES - Summary of stock options (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPTIONS AND NONVESTED SHARES | ||||
Number of Options, Outstanding at beginning | 107,304 | 229,249 | 314,491 | |
Number of Options, Granted | 0 | 0 | 0 | |
Number of Options, Exercised | (49,900) | (121,945) | (85,242) | |
Number of Options, Forfeited and expired | 0 | 0 | 0 | |
Number of Options, Outstanding at ending | 57,404 | 107,304 | 229,249 | 314,491 |
Number of Options, Vested | 57,404 | |||
Number of Options, Exercisable | 57,404 | |||
Weighted Average Exercise Price, Outstanding at beginning | $ 11.13 | $ 10.37 | $ 10.32 | |
Weighted Average Exercise Price, Granted | 0 | 0 | 0 | |
Weighted Average Exercise Price, Exercised | 12.26 | 9.71 | 10.18 | |
Weighted Average Exercise Price, Forfeited and expired | 0 | 0 | 0 | |
Weighted Average Exercise Price, Outstanding | 10.14 | $ 11.13 | $ 10.37 | $ 10.32 |
Weighted Average Exercise Price, Vested | 10.14 | |||
Weighted Average Exercise Price, Exercisable | $ 10.14 | |||
Weighted Average Remaining Contractual Term in Years, Outstanding | 1 year 11 months 4 days | 2 years 3 months 10 days | 2 years 7 months 9 days | 3 years 10 months 2 days |
Weighted Average Remaining Contractual Term in Years, Vested | 1 year 11 months 4 days | |||
Weighted Average Remaining Contractual Term in Years, Exercisable | 1 year 11 months 4 days | |||
Aggregate Intrinsic Value, Outstanding at beginning | $ 7,570,681 | $ 15,168,276 | $ 30,568,083 | |
Aggregate Intrinsic Value, Exercised | (3,910,884) | (9,137,231) | (7,868,258) | |
Aggregate Intrinsic Value, Outstanding | 4,106,623 | $ 7,570,681 | $ 15,168,276 | $ 30,568,083 |
Aggregate Intrinsic Value, Vested | 4,106,623 | |||
Aggregate Intrinsic Value, Exercisable | $ 4,106,623 |
OPTIONS AND NONVESTED SHARES _2
OPTIONS AND NONVESTED SHARES - Summary of nonvested shares activity (Details) - Non Vested Shares [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at the beginning | 605,391 | 914,026 | 912,650 |
Number of nonvested shares, Granted | 333,620 | 356,150 | |
Number of nonvested shares, Vested | (244,481) | (256,830) | (353,694) |
Number of nonvested shares, Forfeited | (6,300) | (385,425) | (1,080) |
Outstanding at the end | 354,610 | 605,391 | 914,026 |
Outstanding at the end (in dollars per share) | $ 94.85 | $ 103.95 | $ 104.51 |
Grant date weighted average fair value, Granted | 79.23 | 89.94 | |
Grant date weighted average fair value, Vested | 100.93 | 100.91 | 91.32 |
Grant date weighted average fair value, Forfeited | 96.71 | 98.86 | 98.20 |
Outstanding at the end (in dollars per share) | $ 90.63 | $ 94.85 | $ 103.95 |
Stock compensation expense to be recognized with respect to non-vested shares | $ 21,964,345 | ||
Stock compensation expense with respect to non-vested shares weighted average vesting period | 1 year 8 months 19 days |
OPTIONS AND NONVESTED SHARES _3
OPTIONS AND NONVESTED SHARES - Summary of restricted share units (Details) - Restricted share units | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of nonvested shares (RSU) | |
Granted | shares | 407,786 |
Outstanding at the end | shares | 407,786 |
Grant date weighted average fair value | |
Granted (in dollars per share) | $ / shares | $ 96.78 |
Outstanding at the end (in dollars per share) | $ / shares | $ 96.78 |
Stock compensation expense | $ | $ 4,282,366 |
Unrecognized stock compensation expense | $ | $ 35,183,796 |
Unrecognized stock compensation expense expected to be recognized over weighted average period | 3 years 6 months |
OPTIONS AND NONVESTED SHARES _4
OPTIONS AND NONVESTED SHARES - Summary of restricted share units - Additional Information (Details) - Restricted share units - shares | 12 Months Ended | |
Dec. 31, 2019 | May 10, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issaunce | 1,650,000 | |
Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Minimum [Member] | Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Maximum [Member] | Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years |
STATUTORY RESERVES (Details)
STATUTORY RESERVES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Accounting Practices | |||
Allocate at least 10% of its after tax profits | 10.00% | 10.00% | |
Until the reserve balance reaches 50% of respective registered capital | 50.00% | 50.00% | |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 54,751,734 | $ 53,358,414 | |
PRC subsidiaries [Member] | |||
Statutory Accounting Practices | |||
Appropriations To The Reserve Fund | $ 1,393,320 | $ 18,844,626 | $ 5,051 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Maximum [Member] | |
Fair value of Short Term Investments Return Percentage | 4.00% |
Minimum [Member] | |
Fair value of Short Term Investments Return Percentage | 2.80% |
SHARE REPURCHASE (Details)
SHARE REPURCHASE (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Apr. 30, 2019 | May 31, 2019 | Nov. 01, 2018 |
SHARE REPURCHASE | ||||
Authorized share repurchase | $ 150 | $ 100 | ||
Number of shares repurchased | 121,852 | 1,074,376 | ||
Total consideration | $ 11 | $ 100 |
SALES - Sales by Product Catego
SALES - Sales by Product Categories (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Product Information | |||
Sales | $ 503,744,922 | $ 466,877,569 | $ 370,406,840 |
Biomaterial products [Member] | |||
Product Information | |||
Sales | 46,005,954 | 44,711,325 | 0 |
Biopharmaceutical products [Member] | |||
Product Information | |||
Sales | 457,738,968 | 422,166,244 | 370,406,840 |
Human Albumin [Member] | Biopharmaceutical products [Member] | |||
Product Information | |||
Sales | 187,835,401 | 149,369,846 | 132,498,791 |
Human Immunoglobulin For Intravenous Injection [Member] | Biopharmaceutical products [Member] | |||
Product Information | |||
Sales | 117,147,536 | 113,490,790 | 117,511,797 |
Other Immunoglobulin Products [Member] | Biopharmaceutical products [Member] | |||
Product Information | |||
Sales | 72,071,759 | 59,470,912 | 50,147,328 |
Others [Member] | Biopharmaceutical products [Member] | |||
Product Information | |||
Sales | 53,706,467 | 31,677,439 | 21,049,636 |
Placenta Polypeptide [Member] | Biopharmaceutical products [Member] | |||
Product Information | |||
Sales | 26,977,805 | 68,157,257 | 49,199,288 |
Artificial Dura Mater [Member] | Biomaterial products [Member] | |||
Product Information | |||
Sales | 42,275,272 | 40,644,561 | 0 |
Others [Member] | Biomaterial products [Member] | |||
Product Information | |||
Sales | $ 3,730,682 | $ 4,066,764 | $ 0 |
SALES - Sales by Channel (Detai
SALES - Sales by Channel (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 503,744,922 | $ 466,877,569 | $ 370,406,840 |
Plasma Products [Member] | |||
Revenues | 430,761,163 | 354,008,987 | 321,207,552 |
Biopharmaceutical products [Member] | |||
Revenues | 457,738,968 | 422,166,244 | 370,406,840 |
Biomaterial products [Member] | |||
Revenues | 46,005,954 | 44,711,325 | 0 |
Distributors [Member] | Plasma Products [Member] | |||
Revenues | 220,149,266 | 174,698,620 | 126,381,596 |
Distributors [Member] | Placenta Polypeptide [Member] | |||
Revenues | 26,977,805 | 68,157,257 | 49,199,288 |
Distributors [Member] | Biomaterial products [Member] | |||
Revenues | 43,774,081 | 42,717,750 | 0 |
Hospitals and inoculation centers [Member] | Plasma Products [Member] | |||
Revenues | 210,611,897 | 179,310,367 | 194,825,956 |
Hospitals [Member] | Biomaterial products [Member] | |||
Revenues | $ 2,231,873 | $ 1,993,575 | $ 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2019USD ($) |
Contractual Obligations, Less than one year | $ 27,552,916 |
Contractual Obligations, One to two years | 17,128,345 |
Contractual Obligations, Two to three years | 0 |
Contractual Obligations, Three to four years | 0 |
Contractual Obligations, Four to five years | 0 |
Purchase of plasma commitment [Member] | |
Contractual Obligations, Less than one year | 17,633,688 |
Contractual Obligations, One to two years | 16,026,209 |
Contractual Obligations, Two to three years | 0 |
Contractual Obligations, Three to four years | 0 |
Contractual Obligations, Four to five years | 0 |
Capital commitment [Member] | |
Contractual Obligations, Less than one year | 9,919,228 |
Contractual Obligations, One to two years | 1,102,136 |
Contractual Obligations, Two to three years | 0 |
Contractual Obligations, Three to four years | 0 |
Contractual Obligations, Four to five years | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) | Oct. 15, 2019CNY (¥) | Mar. 20, 2015CNY (¥) | Oct. 31, 2019USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2019CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Jun. 30, 2017CNY (¥) | May 30, 2007CNY (¥) |
Purchase commitment amount | $ 2,129,052 | |||||||||||
Payables To Guizhou Eakan Investing Corp | $ 2,087,030 | $ 2,121,392 | ||||||||||
PRC Legal Proceedings [Member] | ||||||||||||
Guizhou Taibangs Equity Interests | 4.71% | 4.71% | ||||||||||
Payment to Guizhou Taibang in exchange | $ 1,605,408 | ¥ 11,200,000 | ||||||||||
Plasma [Member] | ||||||||||||
Purchase commitment amount | 33,659,897 | |||||||||||
Capital Addition Purchase Commitments [Member] | ||||||||||||
Purchase commitment amount | 11,021,364 | |||||||||||
PRC Lawsuit [Member] | ||||||||||||
Plaintiff alleged | ¥ | ¥ 14,560,000 | |||||||||||
Payables To Guizhou Eakan Investing Corp | $ 2,087,030 | $ 2,087,030 | ¥ 14,560,000 | ¥ 14,560,000 | ||||||||
Fund Possession Cost | $ 5,323,877 | ¥ 37,141,600 | ||||||||||
Percentage of profit entitled by individual lawsuit | 15.00% | |||||||||||
Plaintiff requested payment | ¥ | ¥ 10,000,000 | |||||||||||
Litigation settlement amount | ¥ | ¥ 10,000,000 | |||||||||||
Loss contingency | $ 0 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of basic and diluted earnings per share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EARNINGS PER SHARE | |||
Net income attributable to China Biologic Products Holdings, Inc. | $ 138,807,748 | $ 128,056,302 | $ 67,943,035 |
Earnings allocated to participating nonvested shares | (1,690,519) | (3,072,170) | (2,188,633) |
Net income used in basic and diluted earnings per ordinary share | $ 137,117,229 | $ 124,984,132 | $ 65,754,402 |
Weighted average shares used in computing basic earnings per ordinary share | 38,657,553 | 35,304,294 | 27,361,561 |
Diluted effect of stock option and restricted share units | 240,411 | 128,665 | 244,062 |
Weighted average shares used in computing diluted earnings per ordinary share | 38,897,964 | 35,432,959 | 27,605,623 |
Basic earnings per ordinary share | $ 3.55 | $ 3.54 | $ 2.40 |
Diluted earnings per ordinary share | $ 3.53 | $ 3.53 | $ 2.38 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 |
CHINA BIOLOGIC PRODUCTS HOLDI_3
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. (PARENT COMPANY) - Condensed unconsolidated financial information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Information Disclosure [Line Items] | ||||
Cash | $ 161,750,425 | $ 338,880,559 | $ 219,336,848 | $ 183,765,533 |
Time deposits | 497,676,069 | 537,478,040 | ||
Prepayments and prepaid expenses | 7,181,729 | 9,081,680 | ||
Total Current Assets | 1,299,725,398 | 1,357,187,822 | ||
Property, plant and equipment, net | 177,596,563 | 178,327,361 | ||
Total Assets | 1,937,858,497 | 2,009,978,681 | ||
Other payables and accrued expenses | 99,743,350 | 99,933,793 | ||
Income tax payable - current | 13,303,085 | 11,010,347 | ||
Total Current Liabilities | 119,308,691 | 122,348,782 | ||
Income tax payable - non current | 24,905,728 | 26,899,038 | ||
Other liabilities | 16,491,793 | 13,203,485 | ||
Total Liabilities | 163,006,640 | 165,275,517 | ||
Total Shareholders' Equity | 1,695,714,592 | 1,722,049,599 | ||
Total Liabilities and Shareholders' Equity | 1,937,858,497 | 2,009,978,681 | ||
Equity attributable to China Biologic Products Holdings, Inc. [Member] | ||||
Financial Information Disclosure [Line Items] | ||||
Cash | 80,745,824 | 175,133,834 | $ 4,708,801 | $ 11,539,131 |
Time deposits | 432,000,000 | 430,000,000 | ||
Prepayments and prepaid expenses | 2,443,868 | 12,140,443 | ||
Total Current Assets | 515,189,692 | 617,274,277 | ||
Property, plant and equipment, net | 49 | 88 | ||
Investment in and amounts due from subsidiaries | 1,214,913,704 | 1,139,337,487 | ||
Total Assets | 1,730,103,445 | 1,756,611,852 | ||
Other payables and accrued expenses | 5,723,648 | 4,544,071 | ||
Income tax payable - current | 2,928,698 | 2,621,655 | ||
Total Current Liabilities | 8,652,346 | 7,165,726 | ||
Income tax payable - non current | 24,905,728 | 26,899,038 | ||
Other liabilities | 830,779 | 497,489 | ||
Total Liabilities | 34,388,853 | 34,562,253 | ||
Total Shareholders' Equity | 1,695,714,592 | 1,722,049,599 | ||
Total Liabilities and Shareholders' Equity | $ 1,730,103,445 | $ 1,756,611,852 |
CHINA BIOLOGIC PRODUCTS HOLDI_4
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. (PARENT COMPANY) - Condensed Statements of Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statements Of Comprehensive Income [Line Items] | |||
Equity in income of subsidiaries | $ 1,587,067 | $ 2,368,995 | $ 3,509,071 |
General and administrative expenses | (73,376,457) | (68,817,340) | (67,683,667) |
Interest income | 5,494,119 | 4,092,935 | 0 |
Earnings before income tax expense | 191,493,711 | 166,003,295 | 146,407,768 |
Income tax (benefits)/expense | (28,098,525) | (18,036,180) | (64,171,809) |
Net Income | 163,395,186 | 147,967,115 | 82,235,959 |
Equity attributable to China Biologic Products Holdings, Inc. [Member] | |||
Statements Of Comprehensive Income [Line Items] | |||
Equity in income of subsidiaries | 152,380,590 | 132,337,339 | 137,099,797 |
General and administrative expenses | (25,944,997) | (16,575,019) | (28,879,890) |
Interest income | 13,012,488 | 5,271,797 | 13,495 |
Earnings before income tax expense | 139,448,081 | 121,034,117 | 108,233,402 |
Income tax (benefits)/expense | 640,333 | (7,022,185) | 40,290,367 |
Net Income | $ 138,807,748 | $ 128,056,302 | $ 67,943,035 |
CHINA BIOLOGIC PRODUCTS HOLDI_5
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. (PARENT COMPANY) - Condensed Statements of Cash Flows (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ 229,342,343 | $ 103,941,952 | $ 102,183,885 |
Net cash used in investing activities | (180,144,228) | (558,945,397) | (60,895,217) |
Net cash (used in) / provided by financing activities | (229,469,922) | 571,304,139 | (18,324,385) |
Net (decrease) / increase in cash | (177,130,134) | 119,543,711 | 35,571,315 |
Cash at beginning of year | 338,880,559 | 219,336,848 | 183,765,533 |
Cash at end of year | 161,750,425 | 338,880,559 | 219,336,848 |
Equity attributable to China Biologic Products Holdings, Inc. [Member] | |||
Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 8,008,005 | (6,211,606) | (3,830,330) |
Net cash used in investing activities | (2,000,000) | (404,812,895) | (3,000,000) |
Net cash (used in) / provided by financing activities | (100,396,015) | 581,449,534 | 0 |
Net (decrease) / increase in cash | (94,388,010) | 170,425,033 | (6,830,330) |
Cash at beginning of year | 175,133,834 | 4,708,801 | 11,539,131 |
Cash at end of year | $ 80,745,824 | $ 175,133,834 | $ 4,708,801 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)segment | |
Number of Operating Segments | segment | 1 | ||
Sales | $ 503,744,922 | $ 466,877,569 | $ 370,406,840 |
Cost of sales | 174,666,544 | 146,787,236 | 125,517,021 |
Gross profit | 329,078,378 | 320,090,333 | 244,889,819 |
Income from operations | 163,647,883 | 146,172,751 | 135,858,505 |
Net income | 163,395,186 | 147,967,115 | 82,235,959 |
Equity in income of an equity method investee | 1,587,067 | 2,368,995 | 3,509,071 |
Interest income | 21,322,239 | 13,706,750 | 7,623,624 |
Share-based compensation | 26,600,015 | 23,130,570 | 33,903,283 |
Depreciation and Amortization | 26,240,871 | 23,225,351 | |
Income tax expense | 28,098,525 | 18,036,180 | 64,171,809 |
Segment Assets | 2,564,592,904 | 2,444,881,949 | |
Capital expenditures | 26,793,023 | 36,716,390 | |
Equity method investment | 16,725,513 | 15,428,028 | |
Biopharmaceutical products [Member] | |||
Sales | 457,738,968 | 422,166,244 | 370,406,840 |
Cost of sales | 170,119,887 | 141,683,089 | |
Gross profit | 287,619,081 | 280,483,155 | |
Income from operations | 146,889,589 | 128,980,355 | |
Net income | 138,237,792 | 131,561,108 | |
Equity in income of an equity method investee | 1,587,067 | 2,368,995 | |
Interest income | 21,292,269 | 13,704,954 | |
Share-based compensation | 26,600,015 | 23,130,570 | |
Depreciation and Amortization | 17,729,392 | 13,902,507 | |
Income tax expense | 15,353,208 | ||
Segment Assets | 2,195,660,575 | 2,095,996,321 | |
Capital expenditures | 22,966,579 | 35,245,016 | |
Equity method investment | 16,725,513 | 15,428,028 | |
Biomaterial products [Member] | |||
Sales | 46,005,954 | 44,711,325 | $ 0 |
Cost of sales | 4,546,657 | 5,104,147 | |
Gross profit | 41,459,297 | 39,607,178 | |
Income from operations | 16,758,294 | 17,192,396 | |
Net income | 25,157,394 | 16,406,007 | |
Equity in income of an equity method investee | 0 | ||
Interest income | 29,970 | 1,796 | |
Share-based compensation | 0 | ||
Depreciation and Amortization | 8,511,479 | 9,322,844 | |
Income tax expense | 2,682,972 | ||
Segment Assets | 368,932,329 | 348,885,628 | |
Capital expenditures | 3,826,444 | $ 1,471,374 | |
Equity method investment | $ 0 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of segment assets to consolidated total assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
SEGMENT INFORMATION | ||
Total segment assets | $ 2,564,592,904 | $ 2,444,881,949 |
Elimination of intercompany investment balances | (626,734,407) | (434,903,268) |
Consolidated total assets | $ 1,937,858,497 | $ 2,009,978,681 |