China Biologic Products, Inc. (CBPO)

[GorillaGorilla]

All this information is freely available in the 10-Q's and K's but thank you, again, for bringing this to our notice. There are only a limited number of licenese to collect blood products - CBPO had little choice about who they deal with. As far as I can understand all these court cases came about because of the people they bought the collection stations from; who clearly are a bunch of criminals. That said CBPO has been entrusted to clear up the mess that is blood products - will they do this? Well, I haven't seen some malpractice generated by the operations of the company or by the directors been directly involved in wrong doings. Have you?

rich

[invest_dd]

Calling others' names would not make you smart or make you profit. We are here to make money. If you have read the recent filings, you would get red flags. I will just quote several statements from the company's recent S-1 form:
For the dispute over 41% and 25% ownership of Taibang: "The case is slated to be reviewed again by the Hubei Jingzhou Intermediate Court."
Comment: so, that a big pending lawsuit.
"A notice was issued on July 5, 2004 by the Shenzhen Public Security Bureau Economic Crime Investigation Unit requesting a stay of the Beijing action pending their investigation into money laundering relating to the 20 million RMB loan to Zu Ying Du."
Comment: read "money laundering".
"Dr. Du has alleged that Mr. Lam, the current CEO of our subsidiary Taibang, was formerly known as Lin Zepin and that the individual, Lin Zepin, was court martialed for smuggling in Fujian in 1999. Dr. Du alleges that Lin Zepin was released from prison in 2003. Mr. Lam denies these statements and has provided an affidavit stating that he was never know as Lin Zepin and has not been convicted of any crime. "
Comment: Of course Mr. Lam would deny. But the other party would be foolish to bring this up if they do not have enough evidence.

For me, that is pretty shocking. I move on and am done with this.

[morokoy]

So you woke up this morning, and decided to get a user name and start posting on the Yahoo Board, and get a user name and start posting on the IHUB Board, with the same post. Idiot, please crawl back under the rock from whence you came.

[invest_dd]

This initial investment and the whole thing should be return to the original owners of the stolen money, not even to Mr. Du, according to the information I gether. Of course, imo.

[invest_dd]

Lawsuit
Well your answer does not help. I was thinking I could get better discussion on iHub than yahoo mb.
Further research indicates to me that the person (Mr. Zhang) behind the lending of RMB20M to Mr. Du and funding for the up wing or logic express was arrested. Bottom line, the money was stolen from clients' deposits, which is the same or worse than Madoff's case.

[morokoy]

Why don't you try asking Forbes Magazine, since they just included them in their - list of Asia's "200 Best Under a Billion" for the year 2009.
http://finance.yahoo.com/news/China-Biologic-Named-to-prnews-3719305970.html?x=0&.v=27

[invest_dd]

I was trying to get some feedback on my research on this company. Any one listened to previous conference calls or has knowldge cares to comment?

This following is my re-post from Yahoo MB:

I have been doing some research on this company recently. Everything looks fine except for the legal issues between the former majority shareholder of Taibang, Mr. Du, and the company.

Based on my research on the news and documents available (in Chinese), it seems that 1). the money invested in the company by Logic express was illegally obtained; 2). The two owners of Logic express are the wives of two excutives of the company; 3). Mr. Lam, the CEO of Taibang, was a convicted criminal who changed his ID; 4). possible loss of ownership of Taibang and confiscation of illegally obtained initial investment in the company.

In the worst case senario, the common shareholders could lose everthing.

Any comments are welcome. If you can read Chinese, here is one link you can start with (http://blog.163.com/jwfldj@126/blog/).

[maverick1974]

Verry good news today. Going up up up !!!!!!!!!!!!

[tothe]

CBPO fill today..love these little dips.

 
 10/02/2009  02:33:13 PM  $7.30    200.000    $1,460.00     
 NET TOTAL  200.000   $1,460.00    
  
  

[viking86]

thanks, good point.

[abh3vt]

These warrants were issued as part of the initial PIPE that was done a couple of years ago, when the price wasn't much higher than the warrant's exercise price.

They have already been mostly factored into the fds count as per the treasury stock method, so there is minimal additional dilution from them. Might as well tap the warrant holders for the cash and have it on your balance sheet, since the warrant shares are already counted in the FDS count.

Will some of the warrant holders sell? Perhaps, but if they wanted to sell in order to raise cash to pay the company that would have happened already, IMHO.

Regarding use/need for cash....all you have to do is remember what happened in 2008 when cash virtually dried up for these Chinese companies. I'm sure they will try to utilize their cash and cash flows to maximum benefit. They could acquire other plasma collection stations, or simply negotiate to buy out the interests of their minority partners.

[viking86]

thanks Burp and Tothe for the info.

So, the 875K shares issued for the warrants last week for 2.48m cash represent a 4% dilution. The other offering of convertible notes and warrants redeemable by June 2011 is even more dilution coming with 1.14m shares= 1.14/22.3=5% plus interest payable in stock twice a year for the next 2 years if I read that right.

It's just not clear to me why they need to raise that relatively small amount of cash while they have 50m in cash by end of 2Q09?

[tothe]

CBPO charts
FMR chart for one year show a stairway to heaven money flow and OBV.
http://eresearch.fidelity.com/eresearch/goto/evaluate/chart/chartAdvanced.jhtml?destination=%2Feresearch%2Fgoto%2Fevaluate%2Fchart%2FchartAdvanced.jhtml&symbols=cbpo

[tothe]

Warrants start on page 26...maturity in June 2011, with semi annual intrest payments due on September 30 & March 31 each year, in cash. Question is, will they dilute by selling stock to raise cash of $181,528?
http://finance.aol.com/company/china-biologic-prods-inc/cbpo/nab/10-Q/091016364/pdf/sec-filings


On June 5, 2009, the Company entered into a securities purchase agreement (the "Purchase Agreement") with certain accredited investors (collectively, the"Investors"), pursuant to which the Company agreed to issue to the Investors, 3.8% Senior Secured Convertible Notes in the aggregate principal amount of $9,554,140 (the "Notes") and warrants (the "Warrants" and together with the Notes, the "Subscribed Securities") to purchase up to 1,194,268 shares of common stock of the Company (the "Warrant Shares" and together with the Conversion Shares, the "Underlying Securities"). The transaction closed on June 10, 2009. Other than with respect to this transaction, none of the Investors have had a material relationship with the Company or any of the Company's officers, directors or affiliates or any associate of any such officer or director.
The Notes accrue interest at 3.8% per annum (the "Interest Rate"), from the closing until repayment, whether on maturity on June 5, 2011, by acceleration or otherwise. Interest on the Notes is due and payable in cash semi-annually on September 30 and March 31 of each year, commencing September 30, 2009, but the Company has the option to pay the interest due through the issuance of its common stock at a conversion price of $4.00 per share. If the Company defaults in the payment of the principal of or interest on the Notes when due, then upon the Investors' election, the Company is obligated to either (a) redeem all or a portion of the Notes pursuant to the redemption rights discussed below or (b)pay interest on such defaulted amount at a rate equal to the Interest Rate plus 2.0%. The Notes are convertible at any time before maturity into shares of our common stock at a conversion price of $4.00 per share, subject to certain adjustments as specified in the Notes.
The Company's obligations under the Notes are secured by the pledge by Siu Ling Chan, our board chair and a principal shareholder, of 3,000,000 shares of common stock held by her, pursuant to the terms of a Guarantee and Pledge Agreement among the Company, the investors and Ms. Chan. To induce Ms. Chan to enter into the Guarantee and Pledge Agreement with the Investors, the Company has agreed to indemnify her for all damages, liabilities, losses and expenses of any kind ("losses"), which may be sustained or suffered by her, arising out of or in connection with any enforcement action instituted by the Investors pursuant to the Guarantee and Pledge Agreement. The Company's indemnification obligation is limited to losses that arise as the result of any negligent or
unlawful conduct of the Company that is caused unilaterally by the Company and is beyond Ms. Chan's control in her capacity as a director of the Company, and will not exceed the fair market value of the pledged shares as of the closing of the transaction.
The Warrants have a term of 3 years, an exercise price of $4.80 per share, subject to adjustments as provided in the Warrants, from time to time pursuant to anti-dilution and other customary provisions, and are exercisable by the Investors at any time after the date on which their related Notes are converted, except that if any of the Notes is converted in part, the Investors may only exercise a corresponding portion of the related Warrant.
- 20-

[bUrRpPPP!]

On September 21, 2009, China Biologic Products, Inc. (the "Company"), exercised its right to call all outstanding and unexercised warrants to purchase the Company’s common stock, par value $0.0001 per share, that were issued to investors in a July 2006 private placement (the "2006 Warrants"). Warrants issued to the placement agent in the 2006 offering were excluded from the call. The Company's right to call the 2006 Warrants was triggered by the recent satisfaction of the conditions to such right, including that the volume weighted average trading price per share of the Company’s common stock for 15 consecutive trading days, as reported by Bloomberg L.P., was equal to or greater than 160% of the exercise price of the 2006 Warrants. Holders of the 2006 Warrants had the right to exercise their right to purchase Company’s common stock at a price of $2.8425 per share, until 6:30 p.m. Eastern Standard Time on September 24, 2009, the call date, whereupon all such rights would be extinguished.

The Company completed the redemption of the callable 2006 Warrants on September 24, 2009. Warrants to purchase a total of 875,000 shares of the Company’s common stock were exercised, equal to 100% of all such warrants that remained outstanding and unexercised.

The Company received approximately $2.48 million in proceeds from the exercise of the warrants. The Company intends to use the proceeds for general corporate purposes.

[viking86]

re. warrants: anybody knows how many shares will be issued if all warrants are exercized and how much dilution ? Thnx.

[tothe]

CBPO added more

 
 Date Time Price Quantity Total  
 09/25/2009  01:56:52 PM  $6.58    300.000    $1,974.00     
 NET TOTAL  300.000   $1,974.00    
  
  

[bUrRpPPP!]

TAI'AN, China, Sept 24, 2009 /PRNewswire-Asia-FirstCall via COMTEX/ -- China Biologic Products, Inc. (CBPO) ("China Biologic," or the "Company"), one of the leading plasma-based pharmaceutical companies in the People's Republic of China ("PRC"), today announced that on September 11, 2009, the Company entered into a strategic research and development agreement with the Institute of Blood Transfusion (the "IBT") based in Chengdu, Sichuan Province, to strengthen the Company's research and development capabilities and manufacturing processes. IBT is a division of the Chinese Academy of Medical Sciences and Peking Union Medical College ("CAMS"). The IBT is a leading research institute in China, specializing in a variety of plasma-based research including research on the safety of blood transfusions, blood immunology, transfusion disposable materials, blood biochemistry and molecular biology. China Biologic's collaboration with IBT will include the use of IBT's technology to enhance safe and efficient plasma collection, and increase the range of plasma-derivative products that can be manufactured by the Company. The agreement also entitles China Biologic to utilize IBT's platform technologies, including its recombinant protein therapeutics, monoclonal antibody technology and diagnostics. China Biologic will collaborate by providing partial funding, plasma, the use of its manufacturing facilities, and access to its research and development resources. IBT will provide specialized training and education to China Biologic's research staff, and will procure additional funding from national and provincial funding bodies. In addition, China Biologic is entitled to the priority purchase rights to commercialize any new technologies or products that result from the collaboration. "We are committed to being a technology leader in the area of plasma-based pharmaceuticals and we constantly seek to improve our collection and manufacturing processes," commented Mr. Chao Ming Zhao, CEO of China Biologic Products. "China's plasma-based industry is underpenetrated, partially due to the scarcity of investment in the research and development of new products, as compared to similar investment in more developed countries. We are pleased to enter into the research and development agreement with IBT, which we believe will enable us to leverage IBT's advanced scientific resources to accelerate our development of new products and improve the efficiency of our operations. About the Institute of Blood Transfusion Founded in 1958, the Institute of Blood Transfusion ("IBT") is a division of the Chinese Academy of Medical Sciences and Peking Union Medical College, based in Chengdu, Sichuan Province. As the exclusive state-level institute of transfusion medicine, IBT is primarily engaged in transfusion medicine and the research and development of relevant products. For over 40 years, IBT has made an extensive contribution to the construction and development of transfusion medicine in China, especially in the area of blood safety, HLA research and bank construction, and biotech research. IBT is mainly engaged in biochemical and molecular biology, microbiology, immunology, cell biology and biomedicine, and is a leader in the research and development of products related to safe blood transfusion, blood immunology, transfusion disposable materials, and blood biochemistry. IBT has received several prestigious awards from state and local institutions including 65 awards from the Chinese Ministry of Health and the Sichuan provincial government. About China Biologic Products, Inc. China Biologic Products, Inc. (the "Company"), through its indirect majority-owned subsidiaries, Shandong Taibang Biological Products Co. Ltd. and Chongqing Dalin Biologic Technologies Co., Ltd, and its equity investment in Xi'an Huitian Blood Products Co., Ltd., is currently the largest non-state- owned plasma-based biopharmaceutical company in China. The Company is a fully integrated biologic products company with plasma collection, production and manufacturing, research and development, and commercial operations. The Company's plasma-based biopharmaceutical products are irreplaceable during medical emergencies, and are used for the prevention and treatment of various diseases. It sells its products to hospitals and other healthcare facilities in China. Safe Harbor Statement This release may contain certain "forward-looking statements" relating to the business of China Biologic Products, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the significance of the strategic research and development agreement with IBT on the business and operations of the Company; the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries, including the possibility that he strategic research and development agreement with IBT will advance the Company's strategy to bring new higher margin products to market; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact: Company Contact: Mr. Y. Tristan Kuo Chief Financial Officer China Biologic Products, Inc. Tel: [phone] Email: [e-mail] Web: Investor Relations Contact: Mr. Crocker Coulson, President CCG Investor Relations Tel: [phone] (NY office) Mr. Gary Chin Tel: [phone] Email: [e-mail] Web: SOURCE China Biologic Products, Inc.
Copyright (C) 2009 PR Newswire. All rights reserved

[Bob Stocks]

Really i'm not concerned

[qualjohn]

Biggest risk in their 10-K; a lot to like about the stock, but can someone better explain this risk in their 10-K? It is a little lengthy but I think explains the low stock price:

There is a dispute between the former shareholders of Shandong Taibang that calls into question our ownership of 66%, or a majority, of our primary operating subsidiary, which if not resolved in our favor will adversely affect our business.

Mr. Zu Ying Du was one of the original equity holders in our operating subsidiary, Shandong Taibang. Pursuant to a joint venture agreement, among the original equity holders, Mr. Du was obligated to make a capital contribution of RMB20 million (or approximately $2.6 million) for a 25% interest in Shandong Taibang. Mr. Du made this contribution using funds borrowed from the Beijing Chen Da Technology Investment Company, or Beijing Chen Da. Mr. Du failed to repay Beijing Chen Da for his loan of the capital contribution amount. Mr. Du disputes that the money was due and owing. A Beijing court found that Beijing Chen Da had given money to Mr. Du but found that the loan agreement failed to comply with Chinese law. A notice was issued on July 5, 2004 by the Shenzhen Public Security Bureau Economic Crime Investigation Unit requesting a stay of the Beijing action pending their investigation into money laundering relating to the 20 million RMB loan to Zu Ying Du.

Subsequently, Beijing Chen Da entered into an equity transfer agreement with Mr. Du, pursuant to which Mr. Du’s 25% equity interest in Shandong Taibang was transferred to Beijing Chen Da as repayment of the RMB20 million debt. This agreement was signed by Mr. Du’s brother who held a power of attorney from Mr. Du. Mr. Du disputes the legitimacy of this transfer and has argued that his brother, Du Hai Shan, exceeded the scope of the power of attorney. Mr. Du sued his brother in the court of Jianli County, Hubei province, relating to the propriety of the brother’s actions under the power of attorney. Initially the county court found in its judgment that the act had exceeded the scope of the power of attorney. Subsequently the Intermediate Court of Jingzhou City, Hubei province, ruled on December 10, 2008 to suspend the judgment based on the grounds that the original court lacked jurisdiction to hear the case. The case is stated to be reviewed again by the Hubei Jingzhou Intermediate Court.

Missile Engineering, another original equity holder wholly controlled by Mr. Du, was obligated to contribute RMB32.8 million (or $4.2 million) for a 41% interest in Shandong Taibang by means of cash, equipment and patent technology. It was obligated to obtain new drug certificate and production license of its patent technology from the government within a stipulated period in order to be recognized as a valid capital contribution, or in the alternative, make a cash payment. The patent technology was valued as RMB26.4 million (or approximately $3.4 million). However, Missile Engineering failed to obtain the new drug certificate and production license within the stipulated period. Mr. Du also disputes whether the period for obtaining the certificate and license had expired. Pursuant to a stockholders resolution on September 26, 2004, Missile Engineering agreed to sell its 41% interest in Shandong Taibang to Up-Wing and Up-Wing agreed to take up the obligation of Missile Engineering to pay the RMB26.4 million in cash. Missile Engineering disputes this transaction and sued the brother of Mr. Du in the court of Jianli County, Hubei province, relating to the propriety of the brother’s actions under the power of attorney. Initially the county court found in its judgment that the act had exceeded the scope of the power of attorney. Subsequently the Intermediate Court of Jingzhou City, Hubei province, ruled on December 10, 2008 to suspend the judgment based on the grounds that the original court lacked jurisdiction to hear the case. The case is stated to be reviewed again by the Hubei Jingzhou Intermediate Court.

In June 10, 2005, Beijing Chen Da also sold its equity interest in Shandong Taibang to Up-Wing Investments Limited, or Up-Wing, pursuant to a share transfer agreement, which became effective on September 2, 2005, upon approval by the Shandong Provincial Department of Foreign Trade and Economic Cooperation, or the Shandong COFTEC. In March 2006, Up-Wing sold its equity interests in Shandong Taibang to Logic Express, our subsidiary.

In 2006, Missile Engineering applied for arbitration before the China International Economic and Trade Arbitration Commission, or CIETAC, to challenge the effectiveness of the transfer to Up-Wing Investments Limited, of the equity interests in Shandong Taibang formerly owned by Missile Engineering. The equity transfer had been approved by the Shandong Provincial Department of Foreign Trade and Economic Cooperation, or the Shandong COFTEC. Missile Engineering later voluntarily withdrew this application and instead applied for administrative reconsideration of the equity transfer, but this application was rejected by the Ministry of Commerce in 2007. Missile Engineering applied with the District Court of Lixia District, Jinan City, Shandong province requesting revocation of Shandong COFTEC’s approval of the equity transfer to Up-wing by Missile Engineering. Missile Engineering later voluntarily withdrew the action. In April 2007, Logic Express initiated an arbitration proceeding before the Shandong Tai’an Arbitration Committee, to establish that Logic Express is the lawful shareholder of Shandong Taibang. The parties to that proceeding were Logic Express Ltd. and Shandong Taibang Biological Products Co., Ltd. The Arbitration Committee’s decision on September 6, 2007 confirmed that Logic Express had legitimate ownership as a result of the transfer of Shandong Taibang. Up-Wing started an action in the Intermediate Court of Tai’an City, Shandong province requesting the court to establish that Up-Wing is the lawful shareholder of Shandong Taibang. The Intermediate Court of Tai’an City, Shandong province on December 20, 2007 rejected the application on the basis that the same matter had been tried by the arbitration panel.

Up-Wing filed a defamation case in the District Court of Hi-technology and Industry Development District, Tai’an City, Shandong province claiming defamation against Mr. Du and the 21 st Century Economic Report Newspaper. Judgment in favor of Up-Wing was rendered on July 22, 2008 ordering the newspaper and Mr. Du to apologize on the newspaper to Up-Wing.

Mr. Du and Missile Engineering have filed two actions in the Intermediate Court of Wuhan City, Hubei province, against the following defendants, Du Hai Shan, his brother, Beijing Chen Da and Logic Express. Mr. Du and Missile Engineering have requested that the Wuhan Intermediate Court to restore the equity interests originally held by the plaintiffs, 25% equity interest held by Mr. Du and 41% equity interest held by Missile Engineering. The Wuhan Intermediate Court has issued a preliminary order attaching 66% of the equity of Shandong Taibang pending the outcome of the case.

Dr. Du has alleged that Mr. Lam, the current CEO of our subsidiary Taibang, was formerly known as Lin Zepin and that the individual, Lin Zepin, was court martialed for smuggling in Fujian in 1999. Dr. Du alleges that Lin Zepin was released from prison in 2003. Mr. Lam denies these statements and has provided an affidavit stating that he was never know as Lin Zepin and has not been convicted of any crime. If it were determined that Mr. Lam, the CEO of Taibang, was formerly known as Lin Zepin and was in fact convicted of a crime, our business and results of operations could be adversely affected.

For failure to resolve these disputes in our favor may adversely affect our business and operations.

[GorillaGorilla]

Is there any way of knowing how many investors have bought a stock? I assume someone must be keeping count

rich

[tika1]

I know some other people got in today and I expect this to go up. This is good stock. It will reach forward PE 15 within a year, this is what I am hoping for.

[Bob Stocks]

ABH posted this

A couple of answers to your comments...

The only thing keeping CBPO from uplisting,

as far as I can tell, is the number of shareholders.

I have spoken to several folks about this issue, as well as management. I believe they needed more than 450 round lot shareholders, and this has been taken care of.

BTW, this was sponsored by the same folks who brought us HOGS, correct?

If you are referring to Pinnacle China and Barry Kitt, then yes, this one of "their" companies. I would point out that Kitt is no longer a shareholder in CBPO, having sold his interest to several parties, notably IDG-Accel Growth Fund and Heartland Value. Kitt has been selling off a variety of his Chinese holdings over the past few months, so this is not any indication of specific problems at China Biologic.

[Traderfan]

Is this stock in the process for uplisting? Can anybody fill me in?

[Bob Stocks]

Very nice tothe...$6.00 will be here soon

[tika1]

Started position today...@5.7 Reminds me RINO and YONG

[tothe]

CBPO fill

 
 EXECUTIONS FOR THIS TRADE  
  Date Time Price Quantity Total  
 09/17/2009  02:26:47 PM  $5.64    100.000    $564.00     
 NET TOTAL  100.000   $564.00    
  
  

[Bob Stocks]

do it

[Bob Stocks]

I'll

[Bob Stocks]

Ibox needs to be fixed up

[Bob Stocks]

Impressive earnings

[lostmyballs]

what will it take for this to move..Barry has been selling the snot out of cpby and ctfo..Only has a few left of cbpo

[abh3vt]

Too bad this board is dead; CBPO had a great quarterly result:

China Biologic Products Announces Record Second Quarter 2009 Results

Press Release
Source: China Biologic Products, Inc.
On Monday August 17, 2009, 7:16 am EDT

TAI'AN, China, Aug. 17 /PRNewswire-Asia-FirstCall/ -- China Biologic Products, Inc. (OTC Bulletin Board: CBPO - News; "China Biologic," or the "Company"), one of the leading plasma-based pharmaceutical companies in the People's Republic of China ("PRC"), operating through its indirect majority-owned subsidiaries, Shandong Taibang Biological Products Co. Ltd. ("Taibang") and Chongqing Dalin Biologic Technologies Co., Ltd. ("Dalin") and its equity investment in Xi'an Huitian Blood Products Co., Ltd. ("Huitian"), reported record financial results for the second quarter of 2009.

Second Quarter 2009 Highlights

-- Revenues increased 178.2% year-over-year to a record $33.2 million
-- Revenues excluding the acquisition of Dalin increased 57.5%
year-over-year to $18.8 million
-- Gross profit increased 189.8% to $24.0 million, compared to the second
quarter of 2008, representing a gross margin of 72.4%
-- Operating income increased 232.8%, year-over-year to $16.5 million,
representing an operating margin of 49.8%
-- Net income attributable to controlling interest was up 242.7%
year-over-year to $7.0 million, or $0.32 per diluted share
-- Non-GAAP net income* was $8.3 million or $0.38 per diluted share, a
151.5% increase over $3.3 million in the second quarter of 2008, or
$0.15 per diluted share

* Excluding non-cash employee compensation expenses and changes in the
fair value of warrants. See "About Non-GAAP Financial Measures" as well
as the reconciliation table of non-GAAP net income to GAAP net income at
the end of the press release.
"We are pleased to report another quarter of solid results for our second quarter of 2009. We achieved strong organic growth and benefitted from the consolidation of our Dalin acquisition," said Mr. Chao Ming Zhao, CEO of China Biologic Products. "We believe that as a result of these acquisitions we are now strategically positioned as the leading non-state-owned plasma-based biopharmaceutical company in China. We continue to work to integrate these acquisitions to obtain additional synergies and economies of scale."

During the second quarter of 2009, the Company achieved the following milestones:

-- China Biologic completed the acquisition of a 90% equity interest in
Dalin and in Dalin's 54% majority-owned operating subsidiary, Qianfeng
Biological Products Co., Ltd. ("Qianfeng"), one of the largest
plasma-based biopharmaceutical companies in China, located in Guiyang,
Guizhou Province, for a total consideration of RMB 194,400,000
(approximately $28.5 million)

-- China Biologic successfully raised an aggregate principal amount of
$9.6 million through the issuance of 3.8% senior secured convertible
notes due 2011 to certain accredited investors led by Essence
International Investment Limited
Second Quarter of 2009 Results

Revenues for the second quarter of 2009 increased 178.2% to a record $33.2 million, compared to $11.9 million in the second quarter of 2008. The increase in revenues for the second quarter of 2009 is primarily attributable to the revenue consolidation of Dalin, a general increase in the price of plasma-based products, and a 5.2% increase due to foreign exchange translation. During the second quarter of 2009, Dalin contributed to $14.4 million in revenue, or 43.4% of total revenues, an increase of 52.7% from the first quarter of 2009. Taibang accounted for $18.8 million in revenue, or 56.6% of total revenues, an increase of 60.3% from the first quarter of 2009. Revenues, excluding the acquisition of Dalin, increased 57.5% year-over-year, as prior to January 1, 2009, Taibang contributed to 100% of the Company's revenues.

All of the Company's approved products, except human hepatitis B immunoglobulin, recorded price increases ranging from 2.1% to 46.1%. The Company's major plasma-based product, human albumin, contributed to 47.4% of sales in the second quarter of 2009, as compared to 57.8% in same period a year ago. Revenues from human albumin products increased by 128.5%, while the average sales price increased by 2.1%. The Company's human immunoglobulin for intravenous injection product represented 42.6% of revenues in the second quarter of 2009, as compared to 17.4% in the second quarter of 2008; its revenues and average sales price increased by 583.7% and 13.3%, respectively. The Company's human tetanus immunoglobulin products represented 1.0% of revenues in the second quarter of 2009, as compared to 8.6% of the revenues in the second quarter of 2008, its revenue contribution decreased 66.5% and its average sales price increased 46.1%. The approved human rabies immunoglobulin products represented 2.8% of revenue in the second quarter of 2009 compared to 3.6% a year ago, and its revenues and average sales price increased by 116.2% and 37.5%, respectively.

Gross profit for the second quarter of 2009 was $24.0 million, up 189.8% from $8.3 million in the second quarter of 2008. Gross margin was 72.4% for the second quarter of 2009, compared to 69.5% for the second quarter of 2008. The increase in the gross profit margin was primarily associated with general price increase and increase in sales of higher margin products.

Total operating expenses in the second quarter of 2009 rose 125.5% to $7.5 million. Selling expenses increased 118.3% to $1.1 million, compared to $0.5 million in the second quarter of 2008. The increase in selling expenses is primarily due to the consolidation of Dalin's selling activities as well as increased marketing efforts to increase direct sales to new hospitals. As a percentage of sales, selling expenses in the second quarter of 2009 were 3.4%, down from 4.3% a year ago due to the expanded sales following the Dalin acquisition. General and administrative ("G&A") expenses increased 137.4% to $6.0 million. As a percentage of sales, G&A expenses decreased to 18.1% for the second quarter of 2009, from 21.2% for the same period in 2008, primarily due to the expanded sales following the Dalin acquisition. The dollar increase was mainly due to an increase in personnel-related costs and increase in depreciation and amortization expenses in connection with the Company's acquisition of Dalin as result of fair value adjustments, as well as additional professional service charges related to the acquisition of Dalin. The Company also incurred $27,594 in non-cash employee compensation expenses as a result of grants to employees, consultants and directors made under the 2008 Equity Incentive Plan, compared to $1.3 million for the same period in 2008.

Research and development expenses increased 31.5% to $0.4 million, or 1.1% of total revenue compared to $0.3 million in the second quarter of 2008 or 2.3% of total revenue. The dollar increase was due primarily to the consolidation of Dalin and increased costs from continuing clinical trial on new products. Total other expenses in the second quarter of 2009 were $2.3 million. The Company recognized of a loss $1.3 million from the adoption of a new accounting rule effective January 1, 2009, which requires the changes in the fair value of warrants to be recognized in earnings each quarter. No such charge occurred in the second quarter of 2008. The Company recorded a loss of $90,390 in equity income in connection with its 35% equity interest investment in Huitian, the Company's unconsolidated affiliate, compared to a gain of $40,247 in the first quarter of 2009 due to the additional depreciation and amortization expenses arising from assets write-up as a result of the equity investment. Net interest expense was $0.9 million for the second quarter of 2009 compared to an interest income of $846 for the same period in 2008. The increase in interest expense is primarily due to financing related to the acquisition of Dalin.

Provision for income taxes increased 40.4% to $3.0 million for the second quarter of 2009, compared to $2.1 million for the same period last year. The increase in provision for income taxes is mainly due to the consolidation of Dalin, which was offset by the decrease of Taibang's provision for income taxes as Taibang accrued its 2008 taxes at 25% before it was granted a 15% preferential tax rate for the 2008 tax year in early 2009. The effective tax rate for the quarter was 20.9%, as compared to 43.2% in the same period of 2008.

Net income attributable to controlling interest for the second quarter of 2009 was $7.0 million, up 242.7% from $2.0 million in second quarter of 2008. Fully diluted earnings per share were $0.32 for the second quarter of 2009, compared to $0.09 in second quarter of 2008. Compared to the first quarter of 2009, net income attributable to controlling interest which includes the consolidation of Dalin, increased 63.7% from $4.3 million. Non-GAAP net income in the second quarter of 2009 was $8.3 million or $0.38 per fully diluted share, an increase of 151.5% from non-GAAP net income of $3.3 million, or $0.15 per fully diluted share in the second quarter of 2008.*

* Excluding non-cash employee compensation expenses and changes in the
fair value of warrants. See "About Non-GAAP Financial Measures" as well
as the reconciliation table of non-GAAP net income to GAAP net income at
the end of the press release.
Six Months Results

For the first six months of 2009, total revenue was $54.3 million, up 174.7% from the first six months of 2008. Revenues excluding the acquisition of Dalin increased 54.4% year-over-year. Gross profit for the first six months of 2009 was $39.0 million, up 174.6% from $14.2 million in the comparable period a year ago. Gross margin of 71.7% remained unchanged from the first quarter of 2008. Income from operations for the period was $26.6 million, up 209.4% from $8.6 million in the first six months of 2008. Net income for the first six months of 2009 was $11.2 million, up 161.0% from $4.3 million in the first six months of 2008. Fully diluted earnings per share were $0.52 for the first six months of 2009 compared to $0.20 in the first six months of 2008. Adjusting for non-cash charges associated with non-cash employee compensation expenses and changes in the fair value of warrants, the non-GAAP net income for the first six months of 2009 was $13.0 million or $0.60 per fully diluted share, an increase of 133.1% from non-GAAP net income of $5.6 million or $0.26 per fully diluted share.

Financial Condition

As of June 30, 2009, the Company had $49.5 million in cash, approximately $17.1 million in working capital and a current ratio of 1.3. Shareholder's equity at the end of the second quarter of 2009 was $76.5 million, compared to $42.0 million at the end of 2008. The Company generated $28.4 million in net cash from operating activities for the second quarter of 2009.

Recent Developments

In July 2009, China Biologic hosted a forum of industry experts to discuss and provide advice to the Company regarding how to create synergies among its subsidiaries including, the initiation of research and development of new drugs, efficient use of resources among the subsidiaries, quality control procedures during collection, production and distribution processes, and other expert opinions to create long-term, sustainable growth for the Company.

Business Outlook

The recent outbreak of the H1N1 flu, known as the swine flu, and the HFMD or known as the hand foot and mouth disease, has further increased the demand for plasma-based products. The Company expects that a pandemic outbreak of the flu could prompt an increase in demand for the Company's human immunoglobulin for intravenous injection ("IVIG") product, which is mainly used for acute infection, autoimmune diseases and other immune deficiencies caused by decreased or abolished antibody production capabilities. During the second quarter of 2009, the Company experienced an unusual increase in the demand for its IVIG product. IVIG, which has a higher gross margin, contributed to over 42% of revenues during the second quarter of 2009, therefore, contributing to a higher percentage increase in revenue compared to the same period last year and from the first quarter of 2009. Continued strong sales of IVIG in 2009 will be dependent on the continued availability of the plasma supply for production and sales.

During the second quarter of 2009, the Company continued to experience a lower percentage of sales for human album representing approximately 47.4%, compared to 57.8% a year ago. Human albumin is relatively easier to produce than other plasma-based products, therefore, yielding a lower gross margin and more competition in the market. Although the percentage of revenue from human album is gradually decreasing with new product sales increasing, the Company expects Human Albumin sales will still remain as the main contributor to the Company's 2009 revenue.

As one of the first plasma based manufacturers to receive GMP certification in 1999 and with increased regulation on the plasma industry, China Biologic has implemented strict quality control procedures over the plasma collection process, manufacturing, and distribution channels in order to ensure that each of the Company's products are safe. Such careful quality control process has been applied to Taibang over the years and has enabled it to produce high quality plasma-based products.

The same quality control process is now gradually being implemented at Dalin's majority owned subsidiary, Qianfeng. During the second quarter of 2009, the Company implemented a comprehensive marketing program to expand Qianfeng's distribution channels via direct sales to hospitals, as compared to Qianfeng's previous strategy to sell largely through distributors.

The Company expects that direct sales to hospitals will lead to lower selling expenses. Moreover, China Biologic believes it can ensure proper storage and handling of the product, further enhancing Qianfeng's quality control procedures.

Despite the State Food and Drug Administration's implementation of a 90-day quarantine period for plasma raw materials, effective July 1, 2008, the Company was ahead of the industry and took measures to minimize the effects of this new regulation. Currently, the Company's inventory level of raw materials is in line with current availability of plasma collection from its own plasma collection stations. Combined, China Biologic's indirect majority-owned subsidiaries have a total plasma collection capacity of greater than 500 metric tons per year. The Company expects to achieve such collection levels under current conditions, assuming no major changes in the Chinese government's regulation on the plasma industry.

With the acquisition of Dalin and the equity investment in Huitian, China Biologic is now the largest non-state owned plasma-based biopharmaceutical company in China. It is expected to have a total market share of approximately 15% based on management's estimate from the products approved for sales by the PRC government.

"We expect the tight supply/demand situation for plasma-based products to persist for some time, which bodes well for our fundamental outlook," remarked Mr. Zhao. "We will, however, continue to focus on a strong research and development efforts aimed at bringing new, higher margin products to market. We will also continue to integrate our acquisitions and work to increase our capacity utilization."

Conference Call

China Biologic will host a conference call at 9:00 a.m. EDT on Monday, August 17, 2009 to discuss the 2009 second quarter financial results. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: [phone]. International callers should dial [phone]. The pass code for the call is 87475342. If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Monday, August 17, 2009 at 11:00 a.m. EDT. To access the replay, dial 1-888-286-8010. International callers should dial [phone]. The conference pass code is 40692580



CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008

Three Months Ended Three Months Ended
Adjusted Net Income June 30, 2009 June 30, 2008
Net Income (Loss)
Diluted EPS Net Income Diluted EPS Net Income Diluted EPS
Adjusted Amount -
Non GAAP $8,294,071 $0.38 $3,297,342 $0.15
Non-cash employee
compensation (1) $27,594 $0.00 1,263,188 0.06

Loss in fair value
of warrant
liabilities (2) $1,295,732 $0.06 -- $0.00
Amount per
consolidated
statement of $6,970,745 $0.32 $2,034,154 $0.09
operations
Weighted average
number of shares -
diluted 21,811,473 21,664,429


Six Months Ended Six Months Ended
Adjusted Net Income June 30, 2009 June 30, 2008
Net Income (Loss)
Diluted EPS Net Income Diluted EPS Net Income Diluted EPS
Adjusted Amount -
Non GAAP $12,972,785 $0.60 $5,565,142 $0.26
Non-cash employee
compensation (1) $54,967 $0.00 $1,263,188 $0.06

Loss in fair value
of warrant
liabilities (2) $1,688,755 $0.08 -- $0.00
Amount per
consolidated
statement of
operations $11,229,063 $0.52 $4,301,954 $0.20
Weighted average
number of Shares 21,527,509 21,808,852

(1) Non-cash compensation expenses related to options granted to employees
and directors under the Company's 2008 Equity Incentive Plan
(2) Adoption of a new accounting rule effective January 1, 2009 requires
changes in the fair value of warrants to be recognized in earnings
each quarter.

Use of Non-GAAP Financial Measures

GAAP results for the three months and six months ended June 30, 2009 and June 30, 2008 include non-cash compensation expenses related to options granted to employees and directors under the Company's 2008 Equity Incentive Plan and the adoption of a new accounting rule effective January 1, 2009 that requires changes in the fair value of warrants to be recognized in earnings each quarter. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information excluding the impact of this item in this release. The Company's management believes that this non-GAAP measure provides investors with a better understanding of how the results relate to the Company's historical performance. A reconciliation of the adjustments to GAAP results appears in the table accompanying this press release. 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.

About China Biologic Products, Inc.

China Biologic Products, Inc. (the "Company"), through its indirect majority-owned subsidiaries, Shandong Taibang Biological Products Co. Ltd. and Chongqing Dalin Biologic Technologies Co., Ltd, and its equity investment in Xi'an Huitian Blood Products Co., Ltd., is currently the largest non-state- owned plasma-based biopharmaceutical company in China. The Company is a fully integrated biologic products company with plasma collection, production and manufacturing, research and development, and commercial operations. The Company's plasma-based biopharmaceutical products are irreplaceable during medical emergencies, and are used for the prevention and treatment of various diseases. It sells its products to hospitals and other healthcare facilities in China.

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of China Biologic Products, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the Company's acquisitions and acquisition strategy and the benefits of the acquisitions, including the expected impact on the Company's 2009 revenues and net income; the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

- FINANCIAL TABLES FOLLOW -



CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(Unaudited)

Three months ended Six months ended
June 30, June 30,
2009 2008 2009 2008

REVENUES $33,181,545 $11,925,842 $54,330,143 $19,774,849
COST OF SALES 9,161,765 3,638,128 15,376,695 5,587,026

GROSS PROFIT 24,019,780 8,287,714 38,953,448 14,187,823
OPERATING EXPENSES
Selling expenses 1,114,614 510,565 1,694,110 1,005,094
General and admini-
strative expenses 6,004,802 2,529,780 9,827,709 4,121,854
Research and develop-
ment expenses 367,856 279,833 835,583 463,615
Total operating
expenses 7,487,272 3,320,178 12,357,402 5,590,563
INCOME FROM OPERATIONS 16,532,508 4,967,536 26,596,046 8,597,260

OTHER EXPENSES
Equity in income of
unconsolidated
affiliate 90,390 -- 50,143 --
Change in fair value of
warrant liabilities 1,295,732 -- 1,688,755 --
Interest expense
(income), net 883,914 (846) 1,254,767 14,182
Other expense
(income), net (16,005) 52,041 35,310 52,452
Total other
expenses, net 2,254,031 51,195 3,028,975 66,634
INCOME BEFORE PROVISION
FOR INCOME TAXES AND
NONCONTROLLING
INTEREST 14,278,477 4,916,341 23,567,071 8,530,626
PROVISION FOR INCOME
TAXES 2,982,101 2,123,843 5,012,295 2,864,325

NET INCOME BEFORE
NONCONTROLLING
INTEREST 11,296,376 2,792,498 18,554,776 5,666,301
Less: Net income
attributable to
noncontrolling
interest 4,325,631 758,344 7,325,713 1,364,347
NET INCOME ATTRIBUTABLE
TO CONTROLLING
INTEREST 6,970,745 2,034,154 11,229,063 4,301,954

OTHER COMPREHENSIVE
INCOME
Foreign currency
translation
adjustments (1,250) 632,130 17,387 1,574,829
Comprehensive income
attributable to
noncontrolling
interest (9,213) 116,824 (26,977) 301,291
COMPREHENSIVE INCOME $6,960,282 $2,783,108 $11,219,473 $6,178,074

BASIC EARNINGS PER SHARE
Weighted average
number of shares 21,442,909 21,434,942 21,438,948 21,434,942
Earnings per share $0.33 $0.09 $0.52 $0.20

DILUTED EARNINGS PER SHARE
Weighted average
number of shares 21,811,473 21,664,429 21,527,509 21,808,852
Earnings per share $0.32 $0.09 $0.52 $0.20



CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2009 AND DECEMBER 31, 2008

ASSETS

June 30, 2009 December 31, 2008

CURRENT ASSETS: (Unaudited)
Cash $49,479,021 $8,814,616
Accounts receivable, net of allowance
for doubtful accounts of $1,274,001
And $1,268,052 as of June 30, 2009
and December 31, 2008 respectively 980,696 313,087
Account Receivable - related party 795,080 --
Dividend receivable 147,055 147,256
Other receivables 473,975 356,957
Other receivables - related party 797,138 --
Inventories 27,316,217 14,949,196
Prepayments and deferred expense 1,928,553 614,704
Total current assets 81,917,735 25,195,816

PLANT AND EQUIPMENT, net 27,631,919 19,299,364

OTHER ASSETS:
Investment in unconsolidated
affiliate 6,474,950 6,533,977
Refundable deposit for potential
acquisition -- 14,181,800
Prepayments-non-current 4,362,343 955,874
Intangible assets, net 21,977,205 1,002,561
Goodwill 12,425,589 --
Total other assets 45,240,087 22,674,212

Total assets $154,789,741 $67,169,392

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable $3,704,482 $2,481,889
Notes payable -- 29,340
Short term loan - bank 13,580,550 --
Short term loans - holder of
noncontrolling shareholder 4,424,723 773,277
Other payables and accrued
liabilities 15,722,686 3,962,931
Other payables - land use right 29,265 1,683
Other payable - related party 3,082,731 --
Accrued interest - holder of
noncontrolling shareholder 911,084 --
Distribution payable to holder of
noncontrolling shareholder 447,821 3,252,354
Customer deposits 7,838,187 1,091,792
Taxes payable 5,567,794 4,060,010
Long term bank loan - current
maturities 3,369,500 --
Investment payable 6,139,984 3,275,501
Total current liabilities 64,818,807 18,928,777

OTHER LIABILITIES:
Non-current other payable - land
use right 324,141 323,707
Notes payable, net of discount of
$9,533,784 as of June 30, 2009 41,534 --
Long term loan - bank, net of
current maturities -- 5,868,000
Derivative liability - conversion
option 5,796,562 --
Fair value of derivative
instrument 7,276,964 --
Total other liabilities 13,439,201 6,191,707
Total Liabilities 78,258,008 25,120,484
COMMITMENTS AND CONTINGENCIES -- --

EQUITY:
Common stock, $0.0001 par value,
100,000,000 shares authorized,
21,474,942 and 21,434,942 shares
issued and outstanding at June 30,
2009 and December 31, 2008,
respectively 2,147 2,143
Paid-in-capital 10,255,255 10,700,032
Statutory reserves 11,738,002 6,989,801
Retained earnings 20,943,538 15,392,253
Accumulated other comprehensive
income 4,176,685 4,159,298
Total shareholders' equity 47,115,627 37,243,527

NONCONTROLLING INTEREST 29,416,106 4,805,381

Total equity 76,531,733 42,048,908

Total Liabilities $154,789,741 $67,169,392



CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(Unaudited)

2009 2008
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income attributable to
controlling interest $11,229,063 $4,301,954
Net income attributable to
non-controlling interest 7,325,713 1,364,347
Consolidated net income 18,554,776 5,666,301
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation 1,589,625 579,754
Amortization 1,704,248 53,192
(Gain) Loss on disposal of
equipment (506) 1,900
Recovery of bad debt previously
reserved (22,311) (107,583)
Allowance for bad debt - accounts
receivables 9,635 --
Allowance for bad debt - other
receivables 397,101 --
Stock based compensation 54.967 1,263,188
Change in fair value of warrant
liabilities 1,688,755 --
Amortization of deferred note
issuance cost 25,323 --
Amortization of discount on
convertible notes 20,356 --
Equity in loss of unconsolidated
affiliate 50,143 --
Change in operating assets and
liabilities:
Notes receivable -- (23,694)
Accounts receivable (676,036) (477,858)
Accounts receivable - related party (375,810) --
Other receivables (23,082) (210,576)
Other receivables - shareholders -- 1,419
Inventories (4,130,960) (2,571,137)
Prepayments and deferred expenses (750,937) (241,377)
Accounts payable (50,767) (294,290)
Other payables and accrued
liabilities 4,573,201 683,527
Accrued interest 21,178 --
Accrued interest - holder of
noncontrolling interest 911,084 --
Customer deposits 4,251,476 264,990
Taxes payable 608,063 2,134,302
Contingent liability -- (107,273)
Net cash provided by operating
activities 28,429,522 6,623,785

CASH FLOWS FROM INVESTING ACTIVITIES:
Cash acquired through acquisition 11,943,673 --
Payments made for acquisition (10,373,854) --
Purchase of plant and equipment (1,865,746) (2,245,627)
Additions to intangible assets (1,014,766) (10,269)
Proceeds from sale of equipment -- 3,546
Advances on non-current assets (590,428) (32,945)
Net cash used in investing
activities (1,901,121) (2,285,295)

CASH FLOWS FINANCING ACTIVITIES:
Proceeds from warrants conversion 113,700 --
Proceeds from issuance of
convertible notes 8,971,337 --
Repayments of former shareholders
loan in acquiring company (2,652,737) --
Proceeds from short term bank loan 13,513,754 --
Payments on short term loans - bank -- (709,200)
Payments on long term loan - bank (5,862,800) --
Dividends paid to noncontrolling
interest shareholders -- (283,680)
Net cash provided by (used in)
investing activities 14,083,254 (992,880)

EFFECTS OF EXCHANGE RATE CHANGE IN CASH 52,750 419,599

INCREASE IN CASH 40,664,405 3,765,209

CASH and CASH EQUIVALENTS,
beginning of year 8,814,616 5,010,033

CASH and CASH EQUIVALENTS, end of year $49,479,021 $8,775,242

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Income taxes paid $4,351,056 $850,605
Interest paid (net of capitalized
interest) $715,158 $29,901
Non-cash investing and financing
activities
Reclassification of warrant
liability to paid-in capital
upon warrants conversion $125,009 $--
Dividend paid in exchange of holder
of noncontrolling interest loan $3,736,773 $--
Dividend paid by offsetting loan
due from holder of
noncontrolling interest $3,720,649 $--
Net assets acquired with prepayments
made in prior periods $14,159,124 $--
Net assets acquired with unpaid
investment $2,849,321 $--
Plant and equipment acquired with
prepayments made in prior periods $131,103 $--


For more information, please contact:

Company Contact:
Mr. Y. Tristan Kuo
Chief Financial Officer
China Biologic Products, Inc.
Tel: [phone]
Email: [e-mail]
Web: http://www.chinabiologic.com

Investor Relations Contact:
Mr. Crocker Coulson, President
CCG Investor Relations
Tel: [phone] (NY office) or
Mr. Gary Chin
Tel: [phone]
Email: [e-mail]
Web: http://www.ccgirasia.com

[di4]

China Biologic Products Announces Strong First Quarter 2009 Results
May 18, 2009 10:05:00 AM


Email Story Discuss on ZenoBank

View Additional ProfilesTAI'AN, Shandong, May 18 /PRNewswire-Asia-FirstCall/ -- China Biologic Products, Inc. (OTC Bulletin Board: CBPO) ("China Biologic," or the "Company"), one of the leading plasma-based pharmaceutical companies in the People's Republic of China ("PRC"), reported strong financial results for the first quarter of 2009.

First Quarter 2009 Highlights
-- Revenues increased 169.4% year-over-year to a record $21.1 million
-- Gross profit increased 153.1% to $14.9 million compared to the first
quarter of 2008, representing a gross margin of 70.6%
-- Operating income increased 176.6%, from the first quarter 2008 to $10.1
million, representing an operating margin of 47.6%
-- Net income was up 87.8% year-over-year to $4.3 million, or $0.20 per
diluted share
"We are pleased to report exceptional revenue and net income results for our first quarter of 2009 as 'The New China Biologic Products'," said Mr. Chao Ming Zhao, CEO of China Biologic Products. "During the first quarter, we completed the government approval process for the transfer of 35% equity interest in Xi'an Huitian Blood Products Co., Ltd. We recently also completed the acquisition of a 90% controlling interest in Chongqing Dalin Biologic Technologies Co., Ltd., which owns 54% of the equity interest in Qianfeng Biologic Products Co., Ltd. Both of these acquisitions combined have transformed China Biologic into the largest non-state-owned plasma-based biopharmaceutical company in China. Our first quarter results reflect the consolidation of these interests and demonstrate the potential for significant earnings power ahead."

During the first quarter of 2009, the Company achieved the following milestones:

-- The Company's indirect majority-owned subsidiary, Shandong Taibang
Biological Products Co. Ltd. ("Shandong Taibang") was awarded the High-
Technology Enterprise Certification by the provincial government in
Shandong Province, which allows the Company to be taxed at the
preferential income tax rate of 15% instead of at the regular 25% rate,
for a period of 3 years commencing January 1, 2008.

-- One of China Biologic Products' R&D projects, "High-Purity Human
Albumin," was listed in the National Torch Plan of China.

-- China Biologic Products completed the government approval process for
the transfer of a 35% equity interest in Xi'an Huitian Blood Products
Co., Ltd. in March 2009.
First Quarter of 2009 Results

Revenue for the first quarter of 2009 increased 169.4% to a record $21.1 million compared with $7.8 million in the first quarter of 2008. The increase in revenues for the first quarter of 2009 is primarily attributable to the revenue consolidation of Dalin which accounted for approximately 44.6% of the total revenue, a general increase in the price of plasma-based products, and a 12.4% increase due to the foreign exchange translation. During the first quarter of 2009, Dalin contributed to approximately $9.5 million in revenue, and the rest of revenue was generated from Shandong Taibang, which experienced a 49.3% increase from the first quarter of 2008 to approximately $11.6 million. All of the Company's approved products, except human hepatitis B immunoglobulin, recorded price increases ranging from 3.5% to 49.2%.

Sales breakdown of the Company's major plasma-based products, the human albumin products, accounted for 58.2% of sales in the first quarter of 2009, as compared to 58.1% in same period a year ago. Sales of human albumin products increased by 171.1% while the average selling price increased by 3.5%. The Company's human immunoglobulin for intravenous injection product represented 25.4% of revenues in the first quarter of 2009, as compared to 21.1% in the first quarter of 2008; its sales and average selling price increased by 224.6% and 14.7%, respectively. The Company's human tetanus immunoglobulin products represented 4.9% of revenues in the first quarter of 2009, as compared to 1.4% of revenues in the first quarter of 2008, and it sales and average selling price increased 823.1% and 34.3%, respectively.

Gross profit for the first quarter of 2009 was $14.9 million, up 153.1% from $5.9 million in the first quarter of 2008. Gross margin was 70.6% for the period ended March 31, 2009, compared to 75.2% for the first quarter of 2008. The decrease in the gross profit margin was primarily due to the increase in the cost of raw materials associated with the increased compensation fee for donors.

Operating expenses in the first quarter of 2009 rose 115.3% to $4.9 million. Selling expenses increased 17.2% to $0.6 million. As a percentage of sales, selling expenses in the first quarter of 2009 was 2.7%, down from 6.3% a year ago. General and administrative ("G&A") expenses increased 141.3% to $3.8 million. As a percentage of sales, the G&A expenses decreased to 18.1% for the first quarter of 2009, from 20.2% for the same period in 2008. The dollar increase in the G&A expenses was mainly due to the consolidation of Dalin, the increase in personnel-related costs, extra depreciation and amortization expenses in connection with the acquisition of Dalin as result of fair value adjustments as well as additional professional service charges related to the acquisition of Dalin. Research and development expenses increased 154.5% to $0.5 million, or 2.2% of total revenue compare to $0.2 million in the first quarter of 2008 or 2.3% of total revenue. The dollar increase was due primarily to the consolidation of Dalin and increased costs from continuing clinical trial on new products.

Total other expenses in the first quarter of 2009 was $0.8 million, as the Company recognized of a loss in the change in fair value of derivative liability in the amount of $0.4 million, and net interest expense in the amount of $0.4 million.

Provision for income taxes increased 174.2% to $2.0 million for the first quarter of 2009, from $0.7 million for the same period last year. The effective tax rate for the quarter was 21.9% as compared to 20.5% in the same period of 2008.

Net income attributable to controlling interest for the first quarter of 2009 was $4.3 million, up 87.8% from $2.3 million in first quarter of 2008. Fully diluted earnings per share were $0.20 for the first quarter of 2009, compared to $0.10 in first quarter of 2008.

Financial Condition

As of March 31, 2009, the Company had $34.0 million in cash, approximately $2.2 million in working capital and a current ratio of 1.0. Shareholder's equity at the end of the first quarter of 2009 was $39.9 million, compared to $37.2 million at the end of 2008. The Company generated $7.1 million in net cash from operating activities for the first quarter of 2009.

Recent Developments

On April 17, China Biologic announced that it has completed the third installment payment towards the acquisition of a 90% equity interest in Chongqing Dalin Biologic Technologies Co., Ltd. ('Dalin') for a total consideration of RMB 194,400,000 (approximately $28.5 million), in accordance with the terms of an equity transfer agreement with the Dalin shareholders, and is now entitled to all the rights and privileges of a 90% shareholder in Dalin and in Dalin's 54% majority-owned operating subsidiary, Qianfeng Biological Products Co., Ltd. ('Qianfeng'), one of the largest plasma-based biopharmaceutical companies in China, located in Guiyang, Guizhou Province.

On April 27, China Biologic received an order from one of the largest authorized biopharmaceutical distributors in India, to ship Company products valued at $5.3 million to be sold under Shandong Taibang's own brand.

Business Outlook

On July 1, 2008, the SFDA implemented a new 90-day quarantine period on plasma raw material. This new measure further tightens the raw material that is available for production, and has adversely impacted the already short supply of plasma-based products. As a result, during the first quarter of 2009, the supply of plasma-based products remained very tight industry-wide. The continuing price increase of the Company's products since 2008 was primarily attributable to the government's stringent control on the quality standard of the plasma-based production industry, which resulted in a shortage in the supply of finished products. The Company has been able to adjust its production plan to take advantage of the limited market supply of plasma resources to realize higher profit margins. In addition, there is a shortage in the market supply for human albumin products which has increased the value of the Company's products in the market place.

The plasma-based industry has been immune from the impact of the ongoing global financial crisis as the demand for the Company's products has outpaced supply. As a result, the Company's selling price, cost of revenue and operating expenses during the first quarter of 2009 were not impacted by the global financial turmoil. With the acquisitions of Huitian and Dalin, and its operating subsidiary Qianfeng, the Company is better situated to serve its existing and new customers with expanded production capacity and market coverage. Management expects that revenue growth will remain strong for the remainder of 2009.

Assuming the full year consolidation of Dalin, management estimates revenues for 2009 will be in the range of $90 million to $100 million with net income between $18 million to $22 million, including the equity investment income from the 35% acquisition of Hutian but excluding stock based compensation.

"Despite continued tough economic conditions worldwide, China Biologic continues to prosper due to favorable industry fundamentals, growing brand recognition, a solid business strategy and a highly defensible, scalable business model," remarked Mr. Zhao. "We see 2009 as a year in which we attain critical mass, and realize significant economies of scale as we integrate our acquisitions and increase our capacity utilization."

Conference Call

China Biologic will host a conference call at 8:00 a.m. EDT on Tuesday, May 19, 2009, to discuss the 2009 first quarter financial results. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 1-888-419-5570. International callers should dial [phone]. The pass code for the call is 634 701 69. If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Tuesday, May 19, 2009 at 10:00 a.m. EDT. To access the replay, dial 1- 888-286-8010. International callers should dial [phone]. The conference pass code is 373 105 74.

About China Biologic Products, Inc.

China Biologic Products, Inc. (the "Company"), through its indirect majority-owned subsidiary, Shandong Taibang Biological Products Co. Ltd., and equity investments in Xi'an Huitian Blood Products Co., Ltd. and Chongqing Dalin Biologic Technologies Co., Ltd. is currently the largest non-state-owned plasma-based biopharmaceutical company approved by the Chinese government. The Company is a fully integrated biologic products company with plasma collection, production and manufacturing, research and development, and commercial operations. The Company's blood products are irreplaceable in the application of medical emergencies, and prevention and treatment for various diseases. It sells its plasma-based biopharmaceutical products to hospitals and other healthcare facilities in China.

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of China Biologic Products, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the Company's acquisitions and acquisition strategy and the benefits of the acquisitions, including the expected impact on the Company's 2009 revenues and net income; the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

- FINANCIAL TABLES FOLLOW -


CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(Unaudited)

2009 2008

REVENUES $21,148,598 $7,849,007
COST OF SALES 6,214,930 1,948,898
GROSS PROFIT 14,933,668 5,900,109

OPERATING EXPENSES:
Selling expenses 579,496 494,529
General and administrative expenses 3,822,907 1,584,128
Research and development expenses 467,727 183,782
Total operating expenses 4,870,130 2,262,439

INCOME FROM OPERATIONS 10,063,538 3,637,670
Equity in income of unconsolidated
affiliate -40,247 --
Change in fair value of warrant
liabilities 393,023 --
Interest expense (income), net 370,853 22,973
Other expense (income), net 51,315 412
Total other expenses (income), net 774,944 23,385

INCOME BEFORE PROVISION FOR INCOME TAXES
AND NONCONTROLLING INTEREST 9,288,594 3,614,285

PROVISION FOR INCOME TAXES 2,030,194 740,482

NET INCOME BEFORE NONCONTROLLING INTEREST 7,258,400 2,873,803

Less: Net income attributable to
noncontrolling interest 3,000,082 606,003

NET INCOME ATTRIBUTABLE TO CONTROLLING
INTEREST 4,258,318 2,267,800

OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustments 18,637 942,699
Comprehensive income attributable to
noncontrolling interest 427,302 184,467
COMPREHENSIVE INCOME $4,704,257 $3,394,966

BASIC EARNINGS PER SHARE:
Weighted average number of shares 21,434,942 21,434,942
Earnings per share $0.20 $0.11

DILUTED EARNINGS PER SHARE:
Weighted average number of shares 21,434,942 21,964,168
Earnings per share $0.20 $0.10


CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2009 AND DECEMBER 31, 2008

March 31, December 31,
2009 2008
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $34,005,948 $8,814,616
Notes receivable 468,800 --
Accounts receivable, net of allowance
for doubtful accounts of $1,275,437
and $1,268,052 as of March 31, 2009
and December 31, 2008, respectively 383,781 313,087
Accounts receivable - related party 631,803 --
Dividend receivable 147,055 147,256
Other receivables 845,780 356,957
Other receivables - related party 797,138 --
Inventories 26,700,002 14,949,196
Prepayments and deferred expense 1,133,535 614,704
Total current assets 65,113,842 25,195,816

PLANT AND EQUIPMENT, net 27,583,288 19,299,364
OTHER ASSETS:
Investment in unconsolidated affiliate 6,565,312 6,533,977
Refundable deposit for potential
acquisition -- 14,181,800
Prepayments - non-current 4,519,925 955,874
Intangible assets, net 21,636,063 1,002,561
Goodwill 13,692,473 --
Total other assets 46,413,773 22,674,212

Total assets $139,110,903 $67,169,392

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $3,502,387 $2,481,889
Notes payable 29,300 29,340
Short term loans - bank 7,720,550 --
Short term loan - holder of
noncontrolling interest 772,223 773,277
Other payables and accrued liabilities 12,978,381 3,962,931
Other payable - land use right 29,281 1,683
Other payable - holder of
noncontrolling interest 1,333,795 --
Other payable - related party 2,563,643 --
Accrued interest - related party 305,966 --
Distribution payable to holder of
noncontrolling interest 4,166,692 3,252,354
Customer deposits 6,390,937 1,091,792
Taxes payable 5,211,498 4,060,010
Long term bank loan-current maturities 439,500 --
Investment payable 17,510,836 3,275,501
Total current liabilities 62,954,989 18,928,777

OTHER LIABILITIES:
Non-current other payable - land use
right 324,546 323,707
Long term loan-bank, net of current
maturities 8,790,000 5,868,000
Total other liabilities 9,114,546 6,191,707
Total liabilities 72,069,535 25,120,484

WARRANT LIABILITIES 2,061,049 --

COMMITMENTS AND CONTINGENCIES -- --

SHAREHOLDERS' EQUITY:
Common stock, $0.0001 par value,
100,000,000 shares authorized,
21,434,942 shares issued and
outstanding at March 31, 2009
and December 31, 2008 2,143 2,143
Paid-in-capital 9,988,956 10,700,032
Statutory reserves 9,750,637 6,989,801
Retained earnings 15,960,158 15,392,253
Accumulated other comprehensive income 4,177,935 4,159,298
Total shareholders' equity 39,879,829 37,243,527

NONCONTROLLING INTEREST 25,100,490 4,805,381

Total equity 64,980,319 42,048,908

Total liabilities and shareholders'
equity $139,110,903 $67,169,392




CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(Unaudited)

2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income attributable to
controlling interest $4,258,318 $2,267,800
Net income attributable to
non-controlling interest 3,000,082 606,003
Consolidated net income 7,258,400 2,873,803
Adjustments to reconcile net income
to cash provided by operating activities:
Depreciation 759,072 274,361
Amortization 838,459 26,157
(Gain) Loss on disposal of equipment -276 166
Allowance for bad debt 26,581 --
Stock based compensation 27,373 --
Change in fair value of warrant
liabilities 393,023 --
Equity in income of unconsolidated
affiliate -40,246 --
Change in operating assets and
liabilities:
Notes receivable -468,832 --
Accounts receivable -97,007 -960,482
Accounts receivable - related party -212,367 --
Other receivables -18,487 1,285
Other receivables - related party -- 1,398
Inventories -3,513,011 -1,585,462
Prepayments and deferred expenses -124,944 -96,457
Accounts payable -252,850 -310,692
Other payables and accrued
liabilities 307,916 101,089
Accrued interest - related party 305,966 --
Customer deposits 2,872,712 927,456
Taxes payable -979,190 871,964
Contingent liability -- -105,707

Net cash provided by operating
activities 7,082,292 2,018,879

CASH FLOWS FROM INVESTING ACTIVITIES:
Cash acquired through acquisition 11,938,784 --
Purchase of plant and equipment -986,640 -1,249,620
Additions to intangible assets -88,845 -3,285
Advances on non-current assets -474,736 --
Advances on building acquired from -- -106,777
related party
Net cash provided by (used in)
investing activities 10,388,563 -1,359,682

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short term bank loan 7,647,822 --
Payments on short term loan -- -698,850
Net cash provided by (used in)
financing activities 7,647,822 -698,850

EFFECTS OF EXCHANGE RATE CHANGE IN CASH 72,655 182,249

INCREASE IN CASH 25,191,332 142,596
CASH, beginning of period 8,814,616 5,010,033
CASH, end of period $34,005,948 $5,152,629

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Income taxes paid $1,783,619 $ --
Interest paid (net of capitalized
interest) $236,649 $18,416
Non-cash investing and financing
activities:
Dividend paid by offsetting loan due
from holder of noncontrolling interest $3,735,243 $ --
Net assets acquired with prepayments
made in prior periods $14,240,772 $ --
Net assets acquired with unpaid
investment $14,240,772 $ --
Plant and equipment acquired with
prepayments made in prior periods $87,305 $ --



For more information, please contact:

Company Contact:
Mr. Y. Tristan Kuo
Chief Financial Officer
China Biologic Products, Inc.
Tel: [phone]
Email: [e-mail]
Web: http://www.chinabiologic.com

Investor Relations Contact:
Mr. Crocker Coulson, President
CCG Investor Relations
Tel: [phone] (NY office) or
Mr. Gary Chin, Tel: [phone]
Email: [e-mail]
Web: http://www.ccgirasia.com
SOURCE China Biologic Products, Inc.



----------------------------------------------
Company Contact: Mr. Y. Tristan Kuo
Chief Financial Officer of China Biologic Products
Inc.
[phone]
or [e-mail]; Or Investor Relations Contact: Mr. Crocker Coulson
President of CCG Investor Relations
[phone] (NY office) or Mr. Gary Chin
Tel: [phone]
or [e-mail]

[di4]

China Biologic Products Announces 2009 First Quarter Results Conference Call
May 18, 2009 6:00:00 AM


Email Story Discuss on ZenoBank

View Additional ProfilesTAI'AN CITY, Shandong, China, May 18 /PRNewswire-Asia-FirstCall/ -- China Biologic Products, Inc. (OTC Bulletin Board: CBPO) ("CBP," or the "Company"), one of the leading plasma-based pharmaceutical companies in the People's Republic of China ("PRC"), today announced that it will host a conference call at 8:00 a.m. EDT on Tuesday, May 19, 2009, to discuss the 2009 first quarter financial results.

Hosting the call will be Mr. Colin Zhao, Chief Executive Officer, and Mr. Tristan Kuo, Chief Financial Officer.

To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 888- 419-5570. International callers should dial 617-896-9871. The pass code for the call is 634 701 69.

If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Tuesday, May 19, 2009 at 10:00 a.m. EDT. To access the replay, dial 888-286-8010, international callers should dial 617-801-6888. The conference pass code is 373 105 74.

About China Biologic Products, Inc.

China Biologic Products, Inc. (the "Company"), through its indirect majority-owned subsidiary, Shandong Taibang Biological Products Co. Ltd., and equity investments in Xi'an Huitian Blood Products Co., Ltd. and Chongqing Dalin Biologic Technologies Co., Ltd. is currently the largest non-state-owned plasma-based biopharmaceutical company approved by the Chinese government. The Company is a fully integrated biologic products company with plasma collection, production and manufacturing, research and development, and commercial operations. The Company's blood products are irreplaceable in the application of medical emergencies, and prevention and treatment for various diseases. It sells its plasma-based biopharmaceutical products to hospitals and other healthcare facilities in China.

For more information, please contact:

Company Contact:
Mr. Y. Tristan Kuo
CFO
China Biologic Products, Inc.
Tel: [phone]
Email: [e-mail]
Web: http://www.chinabiologic.com

Investor Relations Contact:
Mr. Crocker Coulson, President
CCG Investor Relations
Tel: [phone] (NY office), or
Mr. Gary Chin
Tel: [phone]
Email: [e-mail]
Web: http://www.ccgirasia.com
SOURCE China Biologic Products, Inc.



----------------------------------------------
Company Contact: Mr. Y. Tristan Kuo
CFO of China Biologic Products
Inc.
[phone]
or [e-mail]; Or Investor Relations Contact: Mr. Crocker Coulson
President of CCG Investor Relations
[phone] (NY office)
or Mr. Gary Chin
[phone]
or [e-mail]

[GuruTrader]

China Biologic Products Announces Strong 2008 Results
Wednesday April 1, 2009, 5:03 pm EDT
Buzz up! Print TAI'AN, China, April 1 /PRNewswire-Asia-FirstCall/ -- China Biologic Products, Inc. (OTC Bulletin Board: CBPO - News; "China Biologic" or the "Company"), one of the leading plasma-based pharmaceutical companies in the People's Republic of China ("PRC"), reported financial results for the year ended December 31, 2008.


2008 Highlights
-- Revenues increased 44.3% year-over-year to a record $46.8 million
-- Gross profit increased 45.7% to $32.7 million over 2007, representing a
gross margin of 70.0%
-- Operating income increased 59.4%, from 2007 to $20.3 million,
representing an operating margin of 43.5%
-- Net income was up 46.5% year-over-year to $12.0 million, or $0.56 per
diluted share

"We are pleased to report strong revenue and net income results for 2008," said Mr. Chao Ming Zhao, CEO of China Biologic Products. "We believe that our significant operating leverage demonstrate the success of the marketing strategies that we implemented last year. More recently, we were pleased to announce that our subsidiary, Shandong Taibang Biological Products Co. Ltd., has completed the government approval process for the transfer of 35% equity interest in Xi'an Huitian Blood Products Co., Ltd. We expected to close the Huitian acquisition, as well as the previously announced Qianfeng acquisition, in the near term. We expect that both of these acquisitions combined will transform China Biologic into the largest privately-held plasma-based biopharmaceutical company in China."

During the fourth quarter of 2008, the Company achieved the following milestones:


-- Entered into agreement to acquire 90% controlling interest in Chongqing
Dalin Biologic Technologies Co., Ltd., which owns approximately 54% of
the equity interest in Qianfeng Biological Products Co., Ltd., one of
the largest plasma-based biopharmaceutical companies in Guiyang,
Guizhou Province, China;
-- Entered into agreement to acquire 35% of the equity interest in Xi'an
Huitian Blood Products Co., Ltd., a biopharmaceutical company in Xi'an,
Shaanxi Province, China; and
-- Launched into international market with sales agreement to one of the
largest authorized biopharmaceutical distributors in India.

2008 Results

Revenue for the full 2008 increased 44.3% to a record $46.8 million compared with $32.4 million in 2007. The increase in revenues for 2008 is primarily attributable to a general increase in the price of plasma-based products which was partially offset by the sales volume decrease except for human immunoglobulin, and the foreign exchange translation, which accounted for 12.5% of the increase. All of the Company's approved products, except for human rabies immunoglobulin, recorded price increases ranging from 29.7% to 227.7%. During 2008, the SFDA implemented the new 90-day quarantine period on plasma raw material, effective July 1, 2008. This new measure further tightened the availability of raw material for production, and has adversely impacted the already short supply of plasma-based products. The price increase of plasma-based products between 2007 and 2008 was primarily attributable to the PRC government's stringent control on the quality standard of the plasma-based production industry, which resulted in a shortage in the supply of finished products. China Biologic was able to adjust its production plan to take advantage of the limited market supply of plasma resources and realize higher profit margins by developing a portfolio of high margin products and increasing the yield per unit volume of plasma.

Sales breakdown of the Company's major plasma-based products includes the approved human albumin products, which accounted for 57.8% of sales in 2008, as compared to 63.4% in 2007. Sales volume of human albumin products decreased by 7.4% while the average selling price increased by 29.7%. The Company's approved human immunoglobulin for intravenous injection product represented 22.0% of revenues in 2008, as compared to 10.3% in 2007, and its sales volume and average selling price increased by 39.2% and 102.8%, respectively. The Company's approved human hepatitis B immunoglobulin product represented 6.9% of revenues in 2008, as compared to 4.7% of revenues in 2007, and had a sales volume decrease of 41.7%.

Gross profit for 2008 was $32.7 million, up 45.7% from $22.5 million in 2007. Gross margin was 70.0% for the period ended December 31, 2008, compared to 69.3% for the 2007 period. The increase in the gross profit margin was primarily due to the increase in selling prices, as well as management's ability to maintain efficiencies in the production process.

Operating expenses for 2008 rose 27.6% to $12.4 million and selling expenses decreased 50.1% to $2.2 million. The substantial decrease in selling expense reflects the normalization of the marketing strategy that the Company initiated in the third quarter of 2007. Due to those marketing efforts in 2007, the Company was able to obtain higher sales with substantially lower selling expenses in 2008. General and administrative expenses increased 65.2% to $7.7 million, as a result of an increase in personnel costs of $0.9 million, an increase in professional expenses related to the costs of being a public reporting company of $0.2 million, and the write off of $0.9 million in bad debt. Research and development expenses increased 91.5% to $1.2 million, as a result of the increase in the cost of research activities and the clinical trial of new products during the 2008 period. The increase in operating expenses was the result of non-cash employee compensation of $1.3 million due to options granted to employees and consultants under the Company's 2008 Equity Incentive Plan. As a result, income from operations for the period was $20.3 million, up 59.4% from $12.8 million in 2007.

Provision for income taxes increased 121.6% to $4.6 million for 2008, from $2.1 million for the same period in 2007. The effective tax rate for 2008 was 23.1%, as compared to 16.9% in 2007.

Net income for 2008 was $12.0 million, up 46.5% from $8.2 million in 2007. Fully diluted earnings per share were $0.56 for 2008, compared to $0.37 in 2007.

Non-GAAP net income in 2008 was $13.3 million or $0.62 per fully diluted share, a 62.6% increase from net income of $8.2 million, or $0.37 per fully diluted share in 2007.(*)


(*) Excludes Stock Based Compensation ("SBC"). See Table 1 for a
reconciliation of Net Income and EPS to exclude SBC.

Financial Condition

As of December 31, 2008, the Company had $8.8 million in cash, approximately $6.3 million in working capital and a current ratio of 1.3. Shareholder's equity at 2008 year-end was $37.8 million, compared to $22.4 million at the end of 2007. The Company generated $20.0 million in net cash from operating activities for the year ended December 31, 2008.


Recent Developments
(1) The Company's indirect majority-owned subsidiary, Shandong Taibang
Biological Products Co. Ltd. ("Shandong Taibang") was awarded the
High-Technology Enterprise Certification by the provincial government
in Shandong Province, which allows the Company to be taxed at the
preferential income tax rate of 15% instead of at the regular 25% rate,
for a period of 3 years commencing January 1, 2008.
(2) One of China Biologic Products' R&D projects, "High-Purity Human
Albumin," was listed in the National Torch Plan of China.
(3) China Biologic Products completed the acquisition of a 35% interest in
Xi'an Huitian Blood Products Co., Ltd. in March 2009.

Business Outlook

Commencing January of 2008, the SFDA implemented stricter pharmaceutical GMP inspection standards designed to intensify supervision of drug producers and ensure drug quality. The new inspection standards include 259 articles, up from 225 articles in the previous standards, covering areas such as the sourcing of raw materials, manufacturing processes, self-inspection processes at each stage of production and transportation. China Biologic's newly constructed facility with 700 tons of annual production capacity for plasma-based products was certified to be in compliance with the new standards. The renewed GMP Certification replaces the current GMP certification for the production facility, which was renewed in 2004. The GMP certification is valid for five years following the date of issuance.

The plasma-based industry has been immune from the impact of the ongoing global financial crisis as the demand for the products has out-paced supply. As a result, the Company's selling price, cost of revenue and operating expenses during 2008 were not impacted by the global financial turmoil.

Currently, China Biologic is the only approved manufacturer of plasma-based biopharmaceuticals in Shandong Province, which has a population of 93 million. China Biologic currently produces about 200 tons of plasma-based products per year and has 700 tons of annual production capacity. The Company is pursuing an aggressive acquisition strategy aimed at becoming the largest non-state-owned producer of plasma-based products in China.

On September 26, 2008, the Company agreed to acquire a 90% controlling interest in Chongqing Dalin Biologic Technologies Co., Ltd. ("Dalin"). Dalin owns 54% of the equity interest in Qianfeng Biological Products Co., Ltd. ("Qianfeng"), one of the largest plasma-based biopharmaceutical companies in China, located in Guiyang, Guizhou Province. The acquisition will increase plasma collection to almost double current levels and significantly increase the Company's production capacity, and established market share in Guizhou Province. Qianfeng is one of the largest plasma-based biopharmaceutical companies in China and the only operating manufacturer in Guizhou Province, which has a population of 39 million. Qianfeng produces about 250 tons of products per year with annual production capacity of 400 tons. China Biologic believes that Qianfeng currently has approximately 9.5% market share in China, as compared to the Company's 6.1%, which would result in a combined market share of approximately 15.6%. The Company believes that the top 6 largest plasma-based biopharmaceutical companies in China, including Qianfeng, have a total market share of approximately 50%.

On October 10, 2008, the Company entered into an agreement to acquire 35% of the equity interest in Xi'an Huitian Blood Products Co., Ltd. ("Huitian"), a biopharmaceutical company based in Xi'an, Shaanxi Province. The Company expects that the acquisition will enable it to increase plasma collection, add to production capacity and expand into Shaanxi Province, which has had historically high collection volumes. Huitian is the only biopharmaceutical manufacturer in Shaanxi Province, which has a population of 37 million. Huitian produces about 80 tons of plasma-based products per year and has 200 tons of annual production capacity. The Company believes that Huitian currently has approximately 1.2% market share in China, which would result in a combined market share of approximately 17% if the Dalin acquisition is also included.

Assuming the full year consolidation of the two acquisitions, management estimates revenues for 2009 will be in the range of $90 million to $100 million with net income between $18 million to $22 million, excluding stock based compensation.

"We are optimistic about 2009 following the closing of the Huitian acquisition and as we near completion of the Dalin acquisition," remarked Mr. Zhao. "From our due diligence work, we see potential to achieve significant synergies and economies of scale. We expect that the acquisitions will help us to secure a greater supply of plasma, enhance our capacity utilization and achieve greater market share via geographic expansion."


Non-GAAP reconciliation table

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FOR THE YEAR ENDED DECEMBER 31, 2008 AND 2007

Fiscal year ended Fiscal year ended
Adjusted Net Income December 31, 2008 December 31, 2007
Diluted Diluted
Net Income (Loss) Diluted EPS Net Income EPS Net Income EPS
Adjusted Amount - Non-GAAP 13,297,398 0.62 8,179,376 0.37
Non-cash employee compensation (1) 1,311,727 0.06 -- --
Amount per consolidated statement of
operations 11,985,671 0.56 8,179,376 0.37

(1) Both non-cash compensation expenses are in connection with adoption of
the equity incentive plan granting share options on the Company's
common stock to employees and directors

Use of Non-GAAP Financial Measures

GAAP results for the year ended December 31, 2008 include non-cash stock based compensation charges. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information excluding the impact of this item in this release. The Company's management believes that this non-GAAP measure provides investors with a better understanding of how the results relate to the Company's historical performance. A reconciliation of the adjustments to GAAP results appears in the table accompanying this press release. 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.

About China Biologic Products, Inc.

China Biologic Products, Inc., through its indirect majority-owned subsidiary Shandong Taibang, is currently the only plasma-based biopharmaceutical company approved by the government of Shandong Province, the second largest province with a population of 93 million. The Company is engaged primarily in research, manufacturing, and sale of plasma-based biopharmaceutical products to hospitals and other health care facilities in China. Plasma-based Human Albumin is used mainly to increase blood volume while Immunoglobulin is used for disease prevention and treatment.

Safe Harbor Statement

This release may contain certain "forward-looking statements" relating to the business of China Biologic Products, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the Company's proposed acquisitions and acquisition strategy and the benefits of proposed acquisitions, including the expected impact on the Company's 2009 revenues and net income; the ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.




CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007

2008 2007

REVENUES $46,751,160 $32,398,669
COST OF SALES 14,040,602 9,945,921
GROSS PROFIT 32,710,558 22,452,748

OPERATING EXPENSES:
Selling expenses 2,212,073 4,434,721
General and administrative
expenses 7,684,493 4,651,434
Research and development
expenses 1,166,494 609,178
Stock-based compensation
expenses (general and
administrative) 1,311,727 --
TOTAL OPERATING EXPENSES 12,374,787 9,695,333

INCOME FROM OPERATIONS 20,335,771 12,757,415
OTHER EXPENSES (INCOME):
Equity in income of
unconsolidated affiliate (175,231) --
Interest expense (income), net 373,497 88,686
Other expense (income), net 251,390 422,891
TOTAL OTHER EXPENSES (INCOME), NET 449,656 511,577

INCOME BEFORE PROVISION FOR INCOME
TAXES AND MINORITY INTEREST 19,886,115 12,245,838
PROVISION FOR INCOME TAXES 4,596,603 2,074,560
NET INCOME BEFORE MINORITY INTEREST 15,289,512 10,171,278
LESS MINORITY INTEREST 3,303,841 1,991,902
NET INCOME 11,985,671 8,179,376
OTHER COMPREHENSIVE INCOME:
Foreign currency translation
gain 2,144,091 1,490,409
COMPREHENSIVE INCOME $14,129,762 $9,669,785
BASIC EARNINGS PER SHARE:
Weighted average number of
shares 21,434,942 21,434,942
Earnings per share $0.56 $0.38
DILUTED EARNINGS PER SHARE:
Weighted average number of
shares 21,556,342 21,861,014
Earnings per share $0.56 $0.37



CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
ASSETS
2008 2007
CURRENT ASSETS:
Cash $8,814,616 $5,010,033
Note receivable -- 41,130
Accounts receivable, net of
allowance for doubtful accounts
of $1,268,052 and
$1,238,772 as of December 31,
2008 and 2007, respectively 313,087 316,869
Dividend receivable 147,256 --
Other receivables 356,957 301,773
Other receivables- related party -- 413,697
Inventories 14,949,196 9,505,074
Prepayments and deferred expense 614,704 138,756
Total current assets 25,195,816 15,727,332
PLANT AND EQUIPMENT, net 19,299,364 15,434,124
OTHER ASSETS:
Investment in unconsolidated
affiliate 6,533,977 --
Refundable deposit for potential
acquisition 14,181,800 --
Prepayments-non-current 955,874 711,459
Long term prepayment - related
party -- 516,456
Intangible assets, net 1,002,561 915,874
Total other assets 22,674,212 2,143,789
Total assets $67,169,392 $33,305,245

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable $2,481,889 $2,677,587
Notes payable 29,340 --
Short term loans - bank -- 685,500
Short term loan - minority
shareholder 773,277 722,674
Other payables and accrued
liabilities 3,962,931 1,200,068
Other payable - land use right 1,683 1,485
Distribution payable to minority
shareholder 3,252,354 506,626
Customer deposits 1,091,792 398,794
Taxes payable 4,060,010 384,788
Investment payable 3,275,501 --
Total current
liabilities 18,928,777 6,577,522

OTHER LIABILITIES:
Non-current other payable - land
use right 323,707 304,086
Long term loan-bank 5,868,000 --
Total other liabilities 6,191,707 304,086
Total liabilities 25,120,484 6,881,608

COMMITMENTS AND CONTINGENCIES -- 142,120
MINORITY INTEREST 4,211,794 3,885,892

SHAREHOLDERS' EQUITY:
Common stock, $0.0001 par value,
100,000,000 shares authorized,
21,434,942 shares issued and
outstanding at December 31,
2008 and 2007 2,143 2,143
Paid-in-capital 10,700,032 9,388,305
Statutory reserves 6,989,801 3,934,703
Retained earnings 15,392,253 6,461,680
Accumulated other comprehensive
income 4,752,885 2,608,794
Total shareholders'
equity 37,837,114 22,395,625
Total
liabilities and
shareholders'
equity $67,169,392 $33,305,245



CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
2008 2007

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $11,985,671 $8,179,376
Adjustments to reconcile net
income to cash provided by
operating activities:
Minority Interest 3,303,841 1,991,902
Depreciation 1,088,155 777,007
Amortization 61,095 91,965
Loss on disposal of
equipment 214,663 245,042
Allowance for bad debt -
accounts receivable (56,462) 221,813
Allowance for bad debt -
other receivables and
prepayments 560,668 --
Impairment of assets 415,873 --
Stock based compensation 1,311,727 --
Equity in income of
unconsolidated
affiliate (175,231) --
Change in operating assets
and liabilities:
Notes receivable 43,245 44,109
Accounts receivable 81,980 3,351,444
Other receivables (33,462) 310,943
Other receivables -
related party 1,442 (2,302)
Inventories (4,695,495) (2,845,676)
Prepayments and deferred
expenses (459,019) 599,238
Accounts payable (376,527) 93,800
Other payables and
accrued liabilities 2,695,860 (773,185)
Other payables -land use
right (37,308) (1,346)
Customer deposits 653,514 2,679
Taxes payable 3,585,237 227,604
Contingent liability (149,428) 136,491
Net cash provided by
operating
activities 20,020,039 12,650,904

CASH FLOWS FROM INVESTING ACTIVITIES:
Payments to related party -- (395,010)
Additions to plant and equipment (4,033,667) (7,715,142)
Additions to intangible assets (83,259) (234,120)
Payments for unconsolidated
affiliate (3,171,300) --
Prepayments for potential
acquisition (14,181,800) --
Advances on non-current assets (270,119) (381,996)
Advances on building purchase to
related party -- (496,001)
Proceeds from sales of equipment 73,641 11,455
Net cash used in
investing activities (21,666,504) (9,210,814)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable 28,830 --
Proceeds from short term loan -- 1,316,700
Payments on short term loan (720,750) (3,291,750)
Proceeds from long term loan 5,766,000 --
Payments on long term debt -- (658,350)
Dividends paid to minority
shareholders (288,300) (488,878)
Net cash provided by
(used in) financing
activities 4,785,780 (3,122,278)

EFFECTS OF EXCHANGE RATE CHANGE IN
CASH 665,268 424,001

INCREASE IN CASH 3,804,583 741,813

CASH, beginning of year 5,010,033 4,268,220

CASH, end of year $8,814,616 $5,010,033

For further information, please contact:

Company Contact:
China Biologic Products, Inc.
Mr. Y. Tristan Kuo, CFO
Tel: [phone]
Email: [e-mail]
Web: http://www.chinabiologic.com

Investor Relations Contact:
CCG Investor Relations
Mr. Crocker Coulson, President
Tel: [phone] (NY office)
Email: [e-mail]

Mr. Gary Chin
Tel: [phone]
Web: http://www.ccgirasia.com

[*MARINE 1*]

China Biologic Products Provides Preliminary Guidance for 2009 of Revenues of $90 to $100 Million and Net Income of $18 to 22 Mi
Date : 10/16/2008 @ 1:19PM

[*MARINE 1*]

China Biologic Receives SFDA Approval for Clinical Trial of Human Coagulation Factor VIII..........CBPO





TAIAN CITY, Shandong, China, Sept. 17 /Xinhua-PRNewswire-FirstCall/ -- China Biologic Products, Inc. (OTC:CBPO) (BULLETIN BOARD: CBPO) ("China Biologic" or the "Company"), one of the leading plasma-based pharmaceutical companies in the People's Republic of China ("PRC"), today announced that the Company received approval from the PRC State Food and Drug Administration (the "SFDA") to commence clinical trial of its new Human Coagulation Factor VIII product ("FVIII"), a coagulation treatment for hemophilia and mass hemorrhaging.