4Q11 Revenue was RMB57.0 Million ($9.1
Million)
4Q11 Non-GAAP Adjusted Net Income was RMB6.3
Million ($1.0 million)
FY11 Revenue was RMB288.3 Million ($45.8
Million)
FY11 Non-GAAP Adjusted Net Income was RMB34.6
Million ($5.5 million)
Live conference call to be held Thursday, March
15, 2012 at 8:00 am ET
China Nuokang Bio-Pharmaceutical Inc. (Nasdaq:NKBP) ("Nuokang" or
the "Company"), a leading China-based biopharmaceutical company
focused on the research, development, manufacture, marketing and
sales of hospital-based medical products, today announced unaudited
financial results for the fourth quarter and full year of 2011.
Mr. Baizhong Xue, the Company's Chairman and Chief Executive
Officer, stated, "We believe this quarter marked an important
milestone in Nuokang's restructuring efforts. As we have noted in
the past few months, including in our announcement of the recent
changes in our management team, it became clear toward the end of
2011 that Nuokang needed to refocus our direction in order to
achieve greater success as a publicly-listed and diversified
pharmaceutical company. We are proud of the staff that helped
Nuokang build Baquting into a market leader and successfully become
a U.S.-listed company. At the same time, we believe that the
changes in our management team will allow us to better lead Nuokang
in the future. Financially, we have taken the steps to create a
healthier balance sheet. We have paid down most of our debt,
increased operating cash flow by decreasing days sales outstanding,
removed the overhang of our lease obligations and expensed one-time
costs to show a cleaner balance sheet. We believe these steps are
necessary to prepare Nuokang to achieve its long-term
potential.
"Our financial performance this quarter was affected by the
aforementioned efforts. First, as we have noted before, we
recognize that our exploration of certain strategic alternatives to
increase shareholder value has negatively impacted our short-term
results. While our externally managed marketing agent sales
continued to grow and the volume of Baquting sales for the fourth
quarter remained relatively stable, this performance was tempered
by the decrease in our higher-margin and higher-price direct sales.
This shift in revenue mix therefore resulted in a lower average
price per unit and a noticeable sequential revenue decline. Second,
we resolved our obligation through a recent contract for the
Penglai plant for RMB13.4 million. We believe this action was
prudent as it removes the financial overhang of the potential
costs. Lastly, to present a cleaner balance sheet, we have
conservatively incurred an allowance for non-trade receivables of
RMB8.6 million. These efforts to strengthen our financial condition
and the one-time and non-operational charge of RMB11.6 million
related to exploration of strategic alternatives, led to a net loss
for the fourth quarter of 2011. Moving forward, we are excited to
have a stronger management team and healthier balance sheet to
better support our future growth.
"Overall, we believe that our efforts have laid a solid
foundation for a gradual but steady recovery from 2011. Despite the
challenges of the fourth quarter, we are pleased to note that
Baquting remains the leader in the hemocoagulase market with 36%
market share. Looking forward, we are focused on maintaining this
market leadership position while further strengthening management
of our direct sales team to achieve a more favorable revenue mix
and greater sales volume. Our new vice president of sales and
marketing has proactively reached out to employees to cultivate
greater confidence in and excitement for Nuokang's growth
potential. In addition to Baquting, revenue from Kaitong has been
steadily growing. For 2012, we expect to see revenue contribution
from Kaitong and our newly acquired Alpha Lipoic Acid Capsule. We
also expect our expenses to normalize in 2012 compared to the
fourth quarter of 2011, during which we chose to conservatively
recognize one-time, non-operational charges. Although the recovery
process may be gradual, we are confident that 2012 will show
sequential revenue and profitability growth compared to 2011."
Fourth Quarter 2011 Financial Highlights
- Revenue was RMB57.0 million ($9.1 million)[1], compared to
RMB79.3 million in the prior year period;
- Baquting revenue was RMB52.2 million ($8.3 million), compared
to RMB76.7 million in the prior year period;
- Gross profit was RMB47.2 million ($7.5 million), compared to
RMB70.0 million in the prior year period;
- Gross margin was 82.7% compared to 88.2%, in the prior year
period;
- Operating loss was RMB36.8 million ($5.9 million), compared to
an operating income of RMB4.2 million in the prior year
period;
- Net loss was RMB46.7 million ($7.4 million), or RMB2.42 ($0.39)
per diluted ADS[2], compared to a net income of RMB278,000, or
RMB0.01 per diluted ADS, in the prior year period; and
- Non-GAAP adjusted net loss was RMB6.3 million ($1.0 million)
compared to an adjusted net income of RMB3.9 million in the prior
year period.
Fourth Quarter 2011 Financial Performance
Revenue for the fourth quarter of 2011 was RMB57.0 million ($9.1
million), compared to RMB79.3 million in the prior year period.
Revenue from Baquting decreased to RMB52.2 million ($8.3 million)
from RMB76.7 million in the prior year period, primarily
attributable to a decline in the performance of the Company's
direct sales channel. Baquting revenue as a percentage of total
revenue was 91.6%, compared to 96.7% in the prior year period.
Revenue from other products increased to RMB4.8 million ($0.8
million) from RMB2.6 million in the prior year period, driven by
gradually increasing revenue contribution from Kaitong.
Gross profit was RMB47.2 million ($7.5 million), compared to
RMB70.0 million in the prior year period. Gross margin was 82.7%,
compared to 88.2% in the prior year period. This margin decline was
due to a shift in revenue mix towards a greater proportion of
lower-margin marketing agent sales.
Operating loss was RMB36.8 million ($5.9 million), compared to
an operating income of RMB4.2 million in the prior year period.
This is a reflection of the incurrence of one-time charges in the
fourth quarter of 2011, including costs associated with the
Company's exploration of certain strategic alternatives of RMB11.6
million ($1.8 million) and an increase in allowance for non-trade
receivables of RMB8.6 million ($1.4 million).
Research and development expenses were RMB3.6 million ($0.6
million), compared to RMB4.2 million in the prior year period.
Research and development expenses as a percentage of revenue was
6.4%, compared to 5.2% in the prior year period, primarily due to
the lower revenue base for the fourth quarter of 2011.
Selling, marketing and distribution expenses decreased 7.0% to
RMB44.8 million ($7.1 million) from RMB48.2 million in the prior
year period due to lower revenues, partially offset by the
Company's continued investment in market development of its
new-to-market products.
General and administrative expenses was RMB35.5 million ($5.6
million), compared to RMB13.4 million in the prior year period,
primarily as a result of significant one-time charges, such as
costs associated with the Company's exploration of strategic
alternatives and an increase in allowance for non-trade
receivables. As these are non-recurring expenses, the Company
expects general and administrative expenses to normalize in the
coming quarters.
The Company recognized a tax benefit of RMB3.8 million ($0.6
million), compared to a tax expense of RMB1.5 million in the prior
year period. The tax benefit is due to the loss it incurred in the
fourth quarter of 2011.
Net loss was RMB46.7 million ($7.4 million), or RMB2.42 ($0.39)
per diluted ADS, compared to a net income of RMB278,000, or RMB0.01
per diluted ADS, in the prior year period.
Non-GAAP adjusted net loss, excluding share-based compensation,
foreign exchange gains and losses and other one-time,
non-operational charges, was RMB6.3 million ($1.0 million),
compared to a net income of RMB3.9 million in the prior year
period.
For the quarter ended December 31, 2011, the Company had
approximately 154.2 million weighted average diluted ordinary
shares outstanding, or 19.3 million weighted average diluted
ADSs.
Full Year Ended December 31, 2011 Financial
Performance
For the full year ended December 31, 2011, revenue was RMB288.3
million ($45.8 million), compared to RMB315.8 million for the full
year ended December 31, 2010. Gross profit was RMB249.8 million
($39.7 million), compared to RMB278.5 million in the prior year.
Operating income was RMB18.7 million ($3.0 million), compared to
RMB65.9 million in the prior year. Net loss was RMB14.0 million
($2.2 million), or RMB0.72 ($0.11) per diluted ADS, compared to a
net income of RMB46.1 million, or RMB2.32 per diluted ADS, for the
prior year. Non-GAAP adjusted net income was RMB34.6 million ($5.5
million), compared to RMB60.9 million in the prior year.
For the full year ended December 31, 2011, the Company had
approximately 155.9 million weighted average diluted ordinary
shares outstanding, or 19.5 million weighted average diluted
ADSs.
As of December 31, 2011, the Company had cash and cash
equivalents of RMB179.4 million ($28.5 million), compared to
RMB191.8 million as of December 31, 2010.
New Product Performance
The Company continued to make progress on the commercialization
of the following pipeline products:
Kaitong: The Company continued to make progress
on market education and sales channel development for Kaitong. As
of March 2012, the Company has won tenders in eight provinces and
four military zones and continues its nationwide marketing campaign
in order to drive awareness and understanding of Kaitong. Looking
forward, the Company expects Kaitong revenues to grow steadily but
gradually throughout 2012 as it continues to bid for additional
regions.
Alpha Lipoic Acid Capsule ("ALA"): In January
2012, the Company expanded its product portfolio to the diabetic
drug category by acquiring the manufacturing license and marketing
rights for ALA, an antioxidant product that addresses diabetic
neuropathy. The manufacturing license is being transferred to the
Company's plant in Penglai from that of the seller. The Company has
also already won tenders in four provinces and two military zones
for ALA.
In-licensed Products: The Company has submitted
testing results for Dianatal® for the final stage of import license
approval to the SFDA. For the cardiovascular product, the Company
is also awaiting SFDA review of testing results for the final stage
before receiving the import license. The Company expects SFDA
approval by the end of 2012 for both products.
Non-GAAP Measures
Adjusted net income (loss) is presented to better illustrate the
Company's ongoing and core operational results. Adjusted net income
(loss) is defined as net income excluding share-based compensation
expense, foreign exchange losses, other one-time charges, other
loss and tax expenses. Adjusted net income (loss) may be calculated
differently, and therefore Nuokang's adjusted net income (loss) may
not be comparable to similarly titled measures of other companies.
Adjusted net income (loss) is not a measure of financial
performance under U.S. generally accepted accounting principles
(GAAP), and should not be considered in isolation or as an
alternative to net income (loss), cash flows from operating
activities and other measures determined in accordance with GAAP.
Items excluded from adjusted net income (loss) are significant and
necessary components to the operations of the Company's business,
and, therefore, adjusted net income (loss) should only be used as a
supplemental measure of operating performance.
Conference Call
The Company will hold a conference call at 8:00 am ET on
Thursday, March 15, 2012 to discuss the fourth quarter and full
year 2011 financial results. Listeners may access the call by
dialing:
United States toll free: |
1-855-500-8701 |
United States toll: |
1-646-254-3515 |
China toll free: |
400-1200654 |
Hong Kong toll free: |
800-903737 |
United Kingdom toll free: |
0800-0159724 |
Conference ID: |
57093004 |
A telephone replay will be available beginning two hours after
the conclusion of the call and will be available through March 28,
2012. Listeners may access the replay by dialing:
United States toll free: |
1-866-214-5335 |
International: |
1-718-354-1232 |
Conference ID: |
57093004 |
A webcast will also be available through the Company's website
www.nkbp.com.
About China Nuokang Bio-Pharmaceutical Inc.
China Nuokang Bio-Pharmaceutical Inc. (Nasdaq:NKBP) is a leading
biopharmaceutical company in China focused on the research,
development, manufacture, marketing and sales of hospital-based
medical products. The Company provides a diversified portfolio of
products across more than 3,000 hospitals in China. Nuokang's
principal products include Baquting®, China's leading hemocoagulase
product by market share, and Kaitong®, a lipid emulsion alprostadil
product for the treatment of peripheral vascular diseases,
cardiocerebral microcirculation disorders and post-surgery
thrombosis. The Company's product pipeline includes product
candidates under development in hematological, cardiovascular and
cerebrovascular disease diagnosis, treatment and prevention. Please
visit www.nkbp.com for more information.
Safe-Harbor Statement
This press release contains statements of a forward-looking
nature. These statements, including the management quotations and
the statements relating to the Company's new product development,
are made under the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including certain plans,
expectations, goals, and projections, which are subject to numerous
assumptions, risks, and uncertainties. These forward-looking
statements may include, but are not limited to, statements
containing words such as "may," "could," "would," "plan,"
"anticipate," "believe," "estimate," "predict," "potential,"
"expects," "intends" and "future" or similar expressions. Among
other things, the statements relating to the Company's expected
progress on the product portfolio and future financial results may
contain forward-looking statements. These forward-looking
statements speak only as of the date of this press release and are
subject to change at any time. These forward-looking statements are
based upon management's current expectations and are subject to a
number of risks, uncertainties and contingencies, many of which are
beyond the Company's control that may cause actual results, levels
of activity, performance or achievements to differ materially from
any future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. The
Company's actual results could differ materially from those
contained in the forward-looking statements due to a number of
factors, including those described under the heading "Risk Factors"
in the Company's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F.
[1] This announcement contains translations of certain
Renminbi amounts into US dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to US dollars as of and for the quarter ended
December 31, 2011, were made at the noon buying rate of RMB6.2939
to USD1.00 on December 30, 2011 in the City of New York for cable
transfers in Renminbi per US dollar as certified for customs
purposes by the Federal Reserve Bank of New York. China Nuokang
Bio-Pharmaceutical Inc. makes no representation that the Renminbi
or US dollar amounts referred to in this press release could have
been or could be converted into US dollars or Renminbi, at any
particular rate or at all.
[2] The Company's American Depositary Shares, which
are traded on the NASDAQ, each of which represents eight ordinary
shares of the Company.
CONSOLIDATED STATEMENTS
OF INCOME |
FOR THE MONTHS ENDED
DECENBER 31, 2010 AND 2011 |
|
|
|
|
|
|
|
|
Full Year
2010 |
Full Year
2011 |
4Q 2010 |
4Q
2011 |
|
(RMB'000) |
(RMB'000) |
(US$'000) |
(RMB'000) |
(RMB'000) |
(US$'000) |
|
|
|
|
|
|
|
Net revenue |
315,789 |
288,269 |
45,801 |
79,317 |
57,016 |
9,059 |
Cost of revenue |
(37,304) |
(38,458) |
(6,110) |
(9,348) |
(9,856) |
(1,566) |
|
|
|
|
|
|
|
Gross profit |
278,485 |
249,811 |
39,691 |
69,969 |
47,160 |
7,493 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research and development costs |
(13,504) |
(15,737) |
(2,500) |
(4,156) |
(3,635) |
(578) |
Selling, marketing and distribution
expenses |
(145,549) |
(144,228) |
(22,916) |
(48,196) |
(44,821) |
(7,121) |
General and administrative expenses |
(53,527) |
(71,188) |
(11,311) |
(13,418) |
(35,531) |
(5,645) |
|
|
|
|
|
|
|
Total operating expenses |
(212,580) |
(231,153) |
(36,727) |
(65,770) |
(83,987) |
(13,344) |
|
|
|
|
|
|
|
Operating profit |
65,905 |
18,658 |
2,964 |
4,199 |
(36,827) |
(5,851) |
Interest income |
1,198 |
1,508 |
240 |
317 |
290 |
46 |
Interest expense |
(7,147) |
(3,096) |
(492) |
(1,093) |
(126) |
(20) |
Exchange losses |
(5,825) |
(5,142) |
(817) |
(2,141) |
(667) |
(106) |
Other income, net |
2,473 |
(13,400) |
(2,129) |
524 |
(13,225) |
(2,101) |
|
|
|
|
|
|
|
Income before income tax expense |
56,604 |
(1,472) |
(234) |
1,806 |
(50,555) |
(8,032) |
Income tax expense |
(10,606) |
(12,662) |
(2,012) |
(1,547) |
3,810 |
605 |
|
|
|
|
|
|
|
Net income |
45,998 |
(14,134) |
(2,246) |
259 |
(46,745) |
(7,427) |
|
|
|
|
|
|
|
Net loss attributable to non-controlling
interest |
64 |
128 |
20 |
19 |
23 |
4 |
|
|
|
|
|
|
|
Net income attributed
to |
|
|
|
|
|
|
ordinary shares |
46,062 |
(14,006) |
(2,225) |
278 |
(46,722) |
(7,423) |
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
Basic |
0.29 |
(0.09) |
(0.01) |
0.00 |
(0.30) |
(0.05) |
Diluted |
0.29 |
(0.09) |
(0.01) |
0.00 |
(0.30) |
(0.05) |
|
|
|
|
|
|
|
Shares used in net income
pershare computation |
|
|
|
|
|
Basic |
158,466,428 |
155,872,950 |
155,872,950 |
158,490,942 |
154,227,532 |
154,227,532 |
Diluted |
158,797,628 |
155,872,950 |
155,872,950 |
159,147,942 |
154,227,532 |
154,227,532 |
|
|
|
|
|
|
|
Net income per ADS |
|
|
|
|
|
|
Basic |
2.33 |
(0.72) |
(0.11) |
0.01 |
(2.42) |
(0.39) |
Diluted |
2.32 |
(0.72) |
(0.11) |
0.01 |
(2.42) |
(0.39) |
|
|
|
|
|
|
|
Shares used in net income
per ADS computation |
|
|
|
|
|
Basic |
19,808,304 |
19,484,119 |
19,484,119 |
19,811,368 |
19,278,442 |
19,278,442 |
Diluted |
19,849,704 |
19,484,119 |
19,484,119 |
19,893,493 |
19,278,442 |
19,278,442 |
|
|
|
|
|
|
|
Adjusted net income |
60,894.00 |
34,587.00 |
5,495.32 |
3,903.00 |
(6,311.00) |
(1,002.72) |
Adjusted diluted EPS |
3.07 |
1.78 |
0.28 |
0.20 |
(0.33) |
(0.05) |
|
CONSOLIDATED BALANCE
SHEETS |
AS OF DECEMBER 31, 2010
and DECEMBER 31, 2011 |
|
|
|
|
|
31-Dec |
31-Dec |
|
2010 |
2011 |
|
(RMB'000) |
(RMB'000) |
(US$'000) |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
191,822 |
179,385 |
28,501 |
Other investment - Current |
29,868 |
-- |
-- |
Accounts receivable (net of allowance for
doubtful accounts of RMB393,860 and RMB393,860 (US$62,578) as of
December 31, 2010 and December 31, 2011, respectively) |
132,504 |
60,767 |
9,655 |
Bills receivable |
86,587 |
109,256 |
17,359 |
Inventories |
16,789 |
15,846 |
2,518 |
Prepayments and other receivables |
20,116 |
30,634 |
4,867 |
Prepaid income tax |
5,117 |
8,179 |
1,300 |
Deferred tax assets |
1,518 |
1,040 |
165 |
|
|
|
|
Total current assets |
484,321 |
405,107 |
64,365 |
|
|
|
|
Non-current assets: |
|
|
|
Property, plant and equipment, net |
155,786 |
214,171 |
34,028 |
Land use rights, net |
35,800 |
35,121 |
5,580 |
Intangible assets, net |
23,587 |
21,212 |
3,370 |
Other Investments-Non current |
3,414 |
3,414 |
542 |
Prepayment for the exclusive distribution
right |
37,713 |
15,884 |
2,524 |
Deferred tax assets |
4,258 |
7,406 |
1,177 |
|
|
|
|
Total non-current assets |
260,558 |
297,208 |
47,222 |
|
|
|
|
TOTAL ASSETS |
744,879 |
702,315 |
111,587 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Short-term bank loans |
47,000 |
7,000 |
1,112 |
Accounts payable |
1,764 |
1,501 |
238 |
Accrued expenses and other payables |
22,281 |
35,715 |
5,675 |
Income tax payable |
253 |
3,312 |
526 |
Unrecognized tax benefits |
809 |
2,656 |
422 |
|
|
|
|
Total current liabilities |
72,107 |
50,184 |
7,973 |
|
|
|
|
Non-current
liabilities: |
|
|
|
Deferred tax liabilities |
2,054 |
2,036 |
323 |
Deferred government grants |
21,621 |
23,185 |
3,684 |
Long-term payable |
11,299 |
12,082 |
1,920 |
|
|
|
|
Total non-current liabilities |
34,974 |
37,303 |
5,927 |
|
|
|
|
Commitments and
contingencies |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
Ordinary shares (par value US$0.0005 per
share, 474,200,000 shares authorized and 158,490,942 shares issued
and outstanding as of December 31, 2010; 474,200,000 shares
authorized and 155,758,517 shares issued and outstanding as of
December 31, 2011) |
597 |
582 |
92 |
Additional paid-in capital |
460,981 |
452,159 |
71,841 |
Retained earnings |
174,133 |
160,127 |
25,442 |
|
|
|
|
Total shareholders'
equity |
635,711 |
612,868 |
97,375 |
|
|
|
|
Non-controlling
interests |
2,087 |
1,959 |
311 |
|
|
|
|
TOTAL EQUITY |
637,798 |
614,827 |
97,686 |
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
744,879 |
702,314 |
111,586 |
|
CONSOLIDATED
RECONCILIATION OF NON-GAAP ADJUSTED NET INCOME (LOSS) |
FOR THE MONTHS ENDED
DECENBER 31, 2010 AND 2011 |
|
|
|
|
|
|
|
|
Full Year
2010 |
Full Year
2011 |
4Q 2010 |
4Q
2011 |
|
(RMB'000) |
(RMB'000) |
(US$'000) |
(RMB'000) |
(RMB'000) |
(US$'000) |
|
|
|
|
|
|
|
GAAP net income (loss) |
46,062 |
(14,006) |
(2,225) |
278 |
(46,722) |
(7,423) |
|
|
|
-- |
|
|
-- |
Foreign exchange loss |
5,825 |
5,142 |
817 |
2,141 |
667 |
106 |
Share-based compensation expenses |
9,007 |
7,944 |
1,262 |
1,484 |
4,237 |
673 |
Accrual for restructuring charges |
-- |
11,639 |
1,849 |
-- |
11,639 |
1,849 |
Resolution of lease obligation expense |
-- |
13,421 |
2,132 |
-- |
13,421 |
2,132 |
Allowance for non-trade receivables |
-- |
8,600 |
1,366 |
-- |
8,600 |
1,366 |
Fin 48 adjustment |
-- |
1,847 |
293 |
-- |
1,847 |
293 |
|
|
|
-- |
|
|
|
Non-GAAP net income (loss) |
60,894 |
34,587 |
5,494 |
3,903 |
(6,311) |
(1,004) |
CONTACT: ICR, Inc.
Mr. Rob Koepp
Tel: (+86) 10-6583-7516
Ms. Wen Lei Zheng
Tel: (+86) 10-6583-7510
U.S. Tel: (646) 405-5180
China Nuokang Bio-Pharmaceutical Inc. ADS, Each Representing Eight Ordinary Shares (MM) (NASDAQ:NKBP)
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China Nuokang Bio-Pharmaceutical Inc. ADS, Each Representing Eight Ordinary Shares (MM) (NASDAQ:NKBP)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024