China Biologic Products, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, the company's total sales increased by 12.7% in RMB terms, or increased by 6.9% in USD terms to $91.5 million from $85.6 million in the same quarter of 2016. The increase was primarily attributable to the sales volume increase in human albumin products and placenta polypeptide products. Income from operations increased by 2.4% to $38.8 million from $37.9 million in the same period of 2016. The effective income tax rate was 16.8% for the first quarter of 2017 and 2016, respectively. Net income attributable to the company increased by 14.5% to $30.0 million from $26.2 million in the same period of 2016. Diluted earnings per share increased to $1.06 from $0.94 in the same quarter of 2016. Non-GAAP adjusted net income attributable to the company increased by 29.7% in RMB terms, or 23.0% in USD terms, to $37.4 million from $30.4 million in the same quarter of 2016. Non-GAAP adjusted earnings per diluted share increased to $1.32 in the first quarter of 2017 from $1.09 in the same quarter of 2016. Non-GAAP adjusted net income and diluted earnings per share exclude non-cash employee share-based compensation expense of $7.4 million and $4.2 million for the three months ended March 31, 2017 and 2016, respectively. Net cash provided by operating activities was $13.1 million, as compared to $24.2 million for the same quarter of 2016. The decrease in net cash provided by operating activities was primarily due to the increases in accounts receivable and inventories. Income before income tax expense was $41,289,030 compared to $39,340,145 a year ago. Payment for property, plant and equipment was $8,936,981 compared to $13,672,613 a year ago.

For the full year of 2017, the company reiterates its full year forecast of total sales growth of 13% to 15% in RMB terms and non-GAAP adjusted net income growth of 18% to 20% in RMB terms over 2016 financial results. This forecast factors into a cumulative three month production suspension at the Company's Shandong facility in connection with plant transition. This guidance does not factor in any potential foreign currency translation impact. Having previously adopted an exchange rate of approximately RMB 6.63 = $1.00 based on weighted average quarterly exchange rates in 2016 in translating 2016 financial results, the Company expects that the total sales and non-GAAP adjusted net income in USD terms in 2017 will be adversely affected by the foreign currency translation impact. This guidance assumes only organic growth, excluding potential acquisitions, and necessarily assumes no significant adverse product price changes during 2017. This forecast reflects the Company's current and preliminary views, which are subject to change.