Exhibit 99.2
China Biologic First Quarter 2020 Financial Results
First Quarter 2020 Financial Performance
Total sales in the first quarter of 2020 increased by 25.3% in USD terms, or 29.4% in RMB terms, to $162.6 million from $129.8 million in the same quarter of 2019.
Total sales for biopharmaceutical products increased by 31.3% in USD terms, or 35.7% in RMB terms, to $153.0 million in the first quarter of 2020 from $116.5 million in the same quarter of 2019, mainly because of an increase in sales of IVIG products, which was partly offset by a decrease in sales of albumin and placenta polypeptide products. For plasma products, total sales in the first quarter of 2020 increased by 37.6% in USD terms, or 42.1% in RMB terms, to $149.7 million from $108.8 million in the same quarter of 2019.
Revenue from IVIG products increased by 169.7% in USD terms, or 178.2% in RMB terms, from $29.0 million in the first quarter of 2019 to $78.2 million in the first quarter of 2020, mainly due to a temporary substantial growth in demand for IVIG in connection with the COVID-19 outbreak, supported by the Company’s high IVIG inventory that was the result of sluggish sales of the product in previous quarters. The sales volume of IVIG products increased by 188.3% during this quarter over the same period of last year. The average price decreased by 6.6% in USD terms and 3.5% in RMB terms, because of a higher percentage of sales volume in the distributor channel in the first quarter of 2020 compared to the same quarter of 2019.
Revenue from human albumin decreased by 26.9% in USD terms, or 24.5% in RMB terms, to $41.5 million in the first quarter of 2020, from the exceptionally high number of $56.8 million in the first quarter of 2019, during which there was a temporary shortage of albumin supply in the market related to a lower import volume. The sales volume of human albumin products decreased by 25.2% in the first quarter of 2020 over same quarter last year. The average price for human albumin increased by 0.9% in RMB terms compared to the same quarter of 2019, because of a higher percentage of sales volume in the direct sales channel. In USD terms, the average price of human albumin decreased by 2.3% in the first quarter of 2020 compared to the same quarter of 2019.
In the first quarter of 2020, IVIG and human albumin products remained the Company’s two largest sales contributors. As a percentage of total sales, sales of IVIG and human albumin products were 48.1% and 25.5%, respectively, in the first quarter of 2020.
Revenue from other immunoglobulin products increased by 3.8% in USD terms, or 7.0% in RMB terms in the first quarter of 2020 compared to the same quarter of 2019, representing 8.4% of total sales as compared to 10.1% of total sales in the same quarter of 2019.
Revenue from other plasma products increased by 66.7% in USD terms, or 72.5% in RMB terms, in the first quarter of 2020 compared to the same quarter of 2019, with a growth in revenue from all the three coagulation factor products, namely human coagulation factor VIII, human prothrombin complex concentrate and human fibrinogen products, reaching 10.1% of total sales in the first quarter of 2020 compared to 7.6% of total sales in the same quarter of 2019.
Revenue from placenta polypeptide products decreased by 57.1% in USD terms, or 55.7% in RMB terms in the first quarter of 2020 as compared to the same quarter of 2019, accounting for 2.0% of total sales compared to 5.9% of total sales in the same quarter of 2019. The main reason for this decrease was that this product was included in the drug lists for monitoring and prescription control in many regions, which put a downward pressure on its sales volume.
Total sales for biomaterial products in the first quarter of 2020 decreased by 27.8% in USD terms, or 25.7% in RMB terms, to $9.6 million from $13.3 million in the same quarter of 2019, mainly due to a decline in sales of artificial dura mater products in connection with a reduced number of non-urgent surgical operations during the COVID-19 outbreak.
Cost of salesincreased by 39.4% to $61.6 million in the first quarter of 2020 from $44.2 million in the same quarter of 2019. As a percentage of total sales, cost of sales increased to 37.9% in the first quarter of 2020 from 34.1% in the same quarter of 2019, as a combined result of decreased sales prices for the Company’s major plasma products, lower percentages of higher-margin placenta polypeptide and dura mater products in total sales, and increased plasma collection costs.
Gross profit increased by 18.0% to $101.0 million in the first quarter of 2020 from $85.6 million in the same quarter of 2019.Gross margin was 62.1% and 65.9% in the first quarter of 2020 and 2019, respectively.
Total operating expenses in the first quarter of 2020 decreased by $8.6 million, or 20.7%, to $33.0 million from $41.6 million in the same quarter of 2019. This decrease consisted of a $4.2 million decrease in selling expenses, a $3.8 million decrease in general and administrative expenses and a $0.6 million decrease in research and development expenses. As a percentage of total sales, total operating expenses decreased to 20.3% in the first quarter of 2020 from 32.0% in the same quarter of 2019.
Selling expensesin the first quarter of 2020 decreased by $4.2 million, or 22.5%, to $14.5 million from $18.7 million for the same quarter of 2019. As a percentage of total sales, selling expenses decreased to 8.9% in the first quarter of 2020 from 14.4% in the same quarter of 2019. The decrease was primarily due to a decrease in marketing and promotion expenses related to placenta polypeptide products, whose sales decreased significantly in the first quarter of 2020. The decrease in selling expenses as a percentage of sales was also due to a delay of normal sales and promotional activities during the COVID-19 epidemic because of quarantine regulations.
General and administrative expensesdecreased by $3.8 million, or 18.4%, to $16.8 million in the first quarter of 2020, from $20.6 million in the same quarter of 2019. The decrease was mainly due to a decrease in allowance for doubtful accounts receivable, reflecting the Company’s effective implementation of earnings quality management, as well as a decrease in consulting service fees. As a percentage of total sales, general and administrative expenses decreased to 10.3% in the first quarter of 2020 compared to 15.9% in the same quarter of 2019.
Research and development expenses in the first quarter of 2020 decreased by $0.6 million, or 26.1%, to $1.7 million from $2.3 million in the same quarter of 2019, with some of the clinical trial programs in hospitals and clinics being temporarily halted during the COVID-19 epidemic. As a percentage of total sales, research and development expenses decreased to 1.0% in the first quarter of 2020 from 1.8% in the same quarter of 2019.
Income from operations in the first quarter of 2020 increased by 54.5% in USD terms, or 60.1% in RMB terms, to $68.0 million from $44.0 million in the same quarter of 2019.Operating margin increased to 41.8% in the first quarter of 2020 from 33.9% in the same quarter of 2019.
Income tax expense in the first quarter of 2020 was $11.6 million, compared to $7.9 million in the same quarter of 2019. The effective income tax rate was 15.7% and 15.0% for the first quarter of 2020 and 2019, respectively.
Net income attributable to the Company increased by 41.6% in USD terms, or 46.3% in RMB terms, to $53.4 million in the first quarter of 2020 from $37.7 million in the same quarter of 2019.Net margin increased to 32.8% in the first quarter of 2020 from 29.1% in the same quarter of 2019.Diluted earnings per share increased to $1.36 in the first quarter of 2020 as compared to $0.94 in the same quarter of 2019.
Non-GAAP adjusted income from operations increased by 47.3% in USD terms or 52.1% in RMB terms to $76.9 million in the first quarter of 2020 from $52.2 million in the same quarter of 2019.
Non-GAAP adjusted net income attributable to the Companyincreased by 38.0% in USD terms, or 42.3% in RMB terms, to $61.4 million in the first quarter of 2020 from $44.5 million in the same quarter of 2019.Non-GAAP net margin increased to 37.8% in the first quarter of 2020 compared to 34.3% in the same quarter of 2019.Non-GAAP adjusted earnings per diluted shareincreased to $1.56 in the first quarter of 2020 as compared to $1.11 in the same quarter of 2019.
Non-GAAP adjusted income from operations for the first quarter of 2020 excludes $6.9 million in non-cash employee share-based compensation expenses, and $2.0 million in amortization expenses of intangible assets and land use rights related to the acquisition of TianXinFu.
Non-GAAP adjusted net income and earnings per diluted share for the first quarter of 2020 exclude $6.3 million in non-cash employee share-based compensation expenses, and $1.7 million in amortization expenses of intangible assets and land use rights related to the acquisition of TianXinFu.
As of March 31, 2020, the Company had $122.9 million in cash on hand and demand deposits, $496.1 million in time deposits, and $372.7 million in short term investments.
Net cash provided by operating activities for the first quarter of 2020 was $75.7 million as compared to $32.2 million for the same quarter of 2019. The increase of $43.5 million in net cash provided by operating activities was mainly because of a decrease in inventories and an increase in net income compared to the same quarter of 2019, which was partly offset by an increase in accounts receivable.
Inventories decreased by $33.0 million in the first quarter of 2020, compared with an increase of $4.0 million in the same quarter of 2019. The decrease of inventory in the first quarter of 2020 was primarily because of the exceptionally high sales volume of IVIG products during this period, which cleaned up the high IVIG inventory as of the end of year 2019. The decrease of inventory in the first quarter of 2020 was also because of a significant decline in raw material plasma collection volume as all plasma collection stations of the Company were closed for over one month during the COVID-19 outbreak to help contain the spread of the virus and the collection volume was still below normal levels after the resumption of collection operations in March 2020.
Accounts receivable increased by $35.3 million during the first quarter of 2020 as compared to an increase of $11.6 million during the same quarter of 2019, largely in line with the increase in sales revenue. Accounts receivable turnover days for plasma products were shortened to 78 days during the first quarter of 2020 from 100 days during the same quarter of 2019, reflecting the Company’s ongoing efforts to shorten credit terms of some of its distributors and increased collection efforts to control credit exposure.
Net cash used in investing activitiesfor the first quarter of 2020 was $113.4 million as compared to $214.7 million for the same quarter of 2019. During the first quarter of 2020, the Company paid $3.2 million for the acquisition of property, plant and equipment, and intangible assets, and the Company also purchased time deposits and short term investments in an amount of $859.2 million. This was partly offset by the maturity value of time deposits and short term investments of $749.0 million. Net cash used in investing activities in the first quarter of 2019 mainly consisted of payment of $937.4 million for the purchase of time deposits and short term investments, and payment of $7.9 million for the acquisition of property, plant and equipment, intangible assets and land use rights, which was partly offset by the maturity value of $730.6 million of time deposits and short term investments.
Net cash used in financing activitiesfor the first quarter of 2020 was nil as compared to $60.0 million for the same quarter of 2019, which mainly represented a remittance of $60.0 million to an investment bank by the Company to execute the previously approved share repurchase program on behalf of the Company.
Non-GAAP Disclosure
This management’s discussion and analysis of the financial results (this “MD&A”) contains non-GAAP financial measures that exclude non-cash compensation expenses related to restricted shares and restricted share units granted to employees and directors under the Company’s Equity Incentive Plans and amortization of acquired intangible assets and land use rights. To supplement the Company’s unaudited consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information excluding the impact of these items in this MD&A. The Company’s management believes that its presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. A reconciliation of the adjustments to GAAP results appears in the table accompanying this MD&A. This additional non-GAAP information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP financial information that the Company provides also may differ from the non-GAAP information provided by other companies.
In addition, as the Company evaluates certain key items of its financial results on a local currency basis (i.e., in RMB) in addition to the reporting currency (i.e., in USD), this MD&A contains local currency information that eliminates the impact of fluctuations in foreign currency exchange rates. The Company believes that, given its operations primarily based in China, providing local currency information on such key items enhances the understanding of its financial results and evaluation of performance in comparison to prior periods. Changes in local currency percentages are calculated by comparing financial results denominated in RMB from period to period.
(Financial statements on the following pages)
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| | | For the Three Months Ended | |
| | | March 31, 2020 | | | March 31, 2019 | |
| | | USD | | | USD | |
| Sales: | | | 162,591,393 | | | | 129,784,067 | |
| Plasma products: | | | | | | | | |
| Human Albumin | | | 41,496,784 | | | | 56,812,789 | |
| Immunoglobulin products: | | | | | | | | |
| Human Immunoglobulin for Intravenous Injection | | | 78,210,029 | | | | 29,044,180 | |
| Other Immunoglobulin products | | | 13,555,014 | | | | 13,089,220 | |
| Others | | | 16,477,114 | | | | 9,870,008 | |
| Placenta Polypeptide | | | 3,278,965 | | | | 7,658,990 | |
| Biopharmaceutical products | | | 153,017,906 | | | | 116,475,187 | |
| Artificial Dura Mater | | | 9,044,415 | | | | 12,314,033 | |
| Others | | | 529,072 | | | | 994,847 | |
| Biomaterial products | | | 9,573,487 | | | | 13,308,880 | |
| | | | | | | | | |
| Cost of sales | | | 61,602,393 | | | | 44,240,445 | |
| Gross profit | | | 100,989,000 | | | | 85,543,622 | |
| | | | | | | | | |
| Operating expenses | | | | | | | | |
| Selling expenses | | | 14,460,110 | | | | 18,728,259 | |
| General and administrative expenses | | | 16,761,113 | | | | 20,597,560 | |
| Research and development expenses | | | 1,742,542 | | | | 2,330,825 | |
| Income from operations | | | 68,025,235 | | | | 43,886,978 | |
| | | | | | | | | |
| Other income (expenses) | | | | | | | | |
| Equity in (loss)/income of an equity method investee | | | (786,180 | ) | | | 593,030 | |
| Interest expense | | | (104,902 | ) | | | (63,777 | ) |
| Interest income | | | 4,529,001 | | | | 6,525,839 | |
| Other income, net | | | 2,194,440 | | | | 1,600,376 | |
| Total other income, net | | | 5,832,359 | | | | 8,655,468 | |
| | | | | | | | | |
| Income before income tax expense | | | 73,857,594 | | | | 52,542,446 | |
| | | | | | | | | |
| Income tax expense | | | 11,622,921 | | | | 7,918,442 | |
| | | | | | | | | |
| Net income | | | 62,234,673 | | | | 44,624,004 | |
| | | | | | | | | |
| Less: Net income attributable to noncontrolling interest | | | 8,850,264 | | | | 6,931,898 | |
| | | | | | | | | |
| Net income attributable to China Biologic Products Holdings, Inc. | | | 53,384,409 | | | | 37,692,106 | |
| | | | | | | | | |
| Earnings per share of ordinary share: | | | | | | | | |
| Basic | | | 1.38 | | | | 0.94 | |
| Diluted | | | 1.36 | | | | 0.94 | |
| Weighted average shares used in computation: | | | | | | | | |
| Basic | | | 38,467,948 | | | | 39,331,954 | |
| Diluted | | | 38,928,072 | | | | 39,412,441 | |
| | | | | | | | | |
| Net income | | | 62,234,673 | | | | 44,624,004 | |
| | | | | | | | | |
| Other comprehensive (losses)/income: | | | | | | | | |
| Foreign currency translation adjustment, net of nil income taxes | | | (21,181,477 | ) | | | 24,316,421 | |
| | | | | | | | | |
| Comprehensive income | | | 41,053,196 | | | | 68,940,425 | |
| | | | | | | | | |
| Less: Comprehensive income attributable to noncontrolling interest | | | 7,716,046 | | | | 8,752,259 | |
| | | | | | | | | |
| Comprehensive income attributable to China Biologic Products Holdings, Inc. | | | 33,337,150 | | | | 60,188,166 | |
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| | | March 31, 2020 | | | December 31, 2019 | |
| | | | USD | | | | USD | |
| ASSETS | | | | | | | | |
| Current Assets | | | | | | | | |
| Cash and cash equivalents | | | 122,855,872 | | | | 161,750,425 | |
| Time deposits | | | 496,097,743 | | | | 497,676,069 | |
| Short term investments | | | 372,680,170 | | | | 267,830,790 | |
| Accounts receivable, net of allowance for doubtful accounts | | | 132,992,218 | | | | 100,270,436 | |
| Inventories | | | 214,439,311 | | | | 250,728,260 | |
| Prepayments and other current assets | | | 20,956,022 | | | | 21,469,418 | |
| Total Current Assets | | | 1,360,021,336 | | | | 1,299,725,398 | |
| | | | | | | | | |
| Property, plant and equipment, net | | | 173,329,694 | | | | 177,596,563 | |
| Intangible assets, net | | | 41,420,541 | | | | 44,068,061 | |
| Land use rights, net | | | 27,849,346 | | | | 28,458,944 | |
| Equity method investment | | | 15,695,341 | | | | 16,725,513 | |
| Long term equity investments | | | 10,812,893 | | | | 10,812,893 | |
| Loan receivable | | | 35,095,297 | | | | 35,642,340 | |
| Goodwill | | | 303,774,356 | | | | 308,509,397 | |
| Other non-current assets | | | 16,726,895 | | | | 16,319,388 | |
| Total Assets | | | 1,984,725,699 | | | | 1,937,858,497 | |
| | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| Current Liabilities | | | | | | | | |
| Accounts payable | | | 5,749,375 | | | | 6,262,256 | |
| Income tax payable | | | 21,014,717 | | | | 13,303,085 | |
| Other payables and accrued expenses | | | 102,594,111 | | | | 99,743,350 | |
| Total Current Liabilities | | | 129,358,203 | | | | 119,308,691 | |
| | | | | | | | | |
| Deferred income | | | 2,147,445 | | | | 2,300,428 | |
| Non-current income tax payable | | | 24,905,728 | | | | 24,905,728 | |
| Other liabilities | | | 17,843,904 | | | | 16,491,793 | |
| Total Liabilities | | | 174,255,280 | | | | 163,006,640 | |
| | | | | | | | | |
| Shareholders’ Equity | | | | | | | | |
| Ordinary share: | | | | | | | | |
| par value $0.0001; | | | | | | | | |
| 100,000,000 shares authorized; | | | | | | | | |
| 41,931,512 and 41,910,701 shares issued at March 31, 2020 and December 31, 2019, respectively; | | | | | | | | |
| 38,480,580 and 38,459,769 shares outstanding at March 31, 2020 and December 31, 2019, respectively | | | 4,193 | | | | 4,191 | |
| Additional paid-in capital | | | 1,165,205,822 | | | | 1,158,274,206 | |
| Treasury share: 3,450,932 shares at March 31, 2020 and 3,450,932 at December 31, 2019, respectively, at cost | | | (167,432,883 | ) | | | (167,432,883 | ) |
| Retained earnings | | | 826,674,895 | | | | 773,290,486 | |
| Accumulated other comprehensive losses | | | (88,468,667 | ) | | | (68,421,408 | ) |
| Total equity attributable to China Biologic Products Holdings, Inc. | | | 1,735,983,360 | | | | 1,695,714,592 | |
| | | | | | | | | |
| Noncontrolling interest | | | 74,487,059 | | | | 79,137,265 | |
| | | | | | | | | |
| Total Shareholders’ Equity | | | 1,810,470,419 | | | | 1,774,851,857 | |
| | | | | | | | | |
| Commitments and contingencies | | | - | | | | - | |
| | | | | | | | | |
| Total Liabilities and Shareholders’ Equity | | | 1,984,725,699 | | | | 1,937,858,497 | |
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | For the Three Months Ended | |
| | | March 31, | | | March 31, | |
| | | 2020 | | | 2019 | |
| | | USD | | | USD | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | |
| Net income | | | 62,234,673 | | | | 44,624,005 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation | | | 4,159,957 | | | | 3,959,985 | |
| Amortization | | | 2,468,349 | | | | 2,439,384 | |
| Loss on disposal of property, plant and equipment | | | 1,275 | | | | 37,829 | |
| Fair value changes of short term investments | | | (681,455 | ) | | | (836,538 | ) |
| Allowance for doubtful accounts - accounts receivable | | | 431,676 | | | | 2,224,200 | |
| Reversal of doubtful accounts – prepayments and other receivables | | | - | | | | (19,560 | ) |
| Deferred income tax benefit | | | (55,051 | ) | | | (382,896 | ) |
| Share-based compensation | | | 6,931,618 | | | | 6,305,967 | |
| Equity in income of an equity method investee | | | 786,180 | | | | (593,030 | ) |
| Change in operating assets and liabilities: | | | | | | | | |
| Accounts receivable | | | (35,255,585 | ) | | | (11,554,181 | ) |
| Inventories | | | 32,964,705 | | | | (3,952,734 | ) |
| Prepayments and other current assets | | | 867,857 | | | | 2,996,350 | |
| Accounts payable | | | (423,618 | ) | | | (5,544,331 | ) |
| Income tax payable | | | 8,045,926 | | | | 1,751,980 | |
| Other payables and accrued expenses | | | (6,613,342 | ) | | | (9,167,249 | ) |
| Deferred income | | | (119,610 | ) | | | (123,545 | ) |
| Net cash provided by operating activities | | | 75,743,555 | | | | 32,165,636 | |
| | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | |
| Purchase of time deposits | | | (469,926,830 | ) | | | (743,412,316 | ) |
| Proceeds from maturity of time deposits | | | 470,473,651 | | | | 629,307,453 | |
| Purchase of short term investments | | | (389,307,402 | ) | | | (193,967,620 | ) |
| Proceeds from maturity of short term investments | | | 278,556,282 | | | | 101,281,030 | |
| Payment for property, plant and equipment | | | (3,234,510 | ) | | | (5,468,377 | ) |
| Payment for intangible assets and land use rights | | | (6,455 | ) | | | (2,453,524 | ) |
| Proceeds from disposal of property, plant and equipment and land use rights | | | 994 | | | | 436 | |
| Net cash used in investing activities | | | (113,444,270 | ) | | | (214,712,918 | ) |
| | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | |
| Proceeds from stock options exercised | | | - | | | | 3,678 | |
| Payment to an investment bank for share repurchase | | | - | | | | (60,000,000 | ) |
| Net cash used in financing activities | | | - | | | | (59,996,322 | ) |
| | | | | | | | | |
| EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | | | (1,193,838 | ) | | | 2,677,235 | |
| | | | | | | | | |
| NET DECREASE IN CASH AND CASH EQUIVALENTS | | | (38,894,553 | ) | | | (239,866,369 | ) |
| | | | | | | | | |
| Cash and cash equivalents at beginning of year | | | 161,750,425 | | | | 338,880,559 | |
| | | | | | | | | |
| Cash and cash equivalents at end of year | | | 122,855,872 | | | | 99,014,190 | |
| | | | | | | | | |
| Supplemental cash flow information | | | | | | | | |
| Cash paid for income taxes | | | 3,411,519 | | | | 6,687,364 | |
| Noncash investing and financing activities: | | | | | | | | |
| Acquisition of property, plant and equipment included in payables | | | 140,047 | | | | 2,113,697 | |
| Set-off loan receivable against accounts payable | | | - | | | | 1,636,952 | |
| Share repurchase using the prepayment to an investment bank | | | - | | | | 36,780,955 | |
| Land use right acquired with prepayments made in prior periods | | | - | | | | 2,689,467 | |
CHINA BIOLOGIC PRODUCTS HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
| | | For the Three Months Ended | |
| | | March 31, | | | March 31, | |
| | | 2020 | | | 2019 | |
| | | USD | | | USD | |
| Income from Operations | | | 68,025,235 | | | | 43,886,978 | |
| Non-cash employee share-based compensation | | | 6,931,618 | | | | 6,305,967 | |
| Amortization of acquired intangible assets and land use rights | | | 1,989,573 | | | | 2,055,032 | |
| Adjusted Income from Operations - Non GAAP | | | 76,946,426 | | | | 52,247,977 | |
| | | | | | | | | |
| Net Income Attributable to the Company | | | 53,384,409 | | | | 37,692,106 | |
| Non-cash employee share-based compensation | | | 6,282,793 | | | | 5,450,091 | |
| Amortization of acquired intangible assets and land use rights | | | 1,691,137 | | | | 1,397,422 | |
| Adjusted Net Income Attributable to the Company - Non GAAP | | | 61,358,339 | | | | 44,539,619 | |
| Diluted EPS - Non GAAP | | | 1.56 | | | | 1.11 | |
| | | | | | | | | |
| Weighted average number of shares used in computation of Non GAAP diluted EPS | | | 38,928,072 | | | | 39,412,441 | |
