19 Chaoyang Park Road
Chaoyang District, Beijing 100125
People’s Republic of China

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YesxNo¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YesxNo¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes¨Nox

The number of shares outstanding of each of the issuer’s classes of common stock, as of May ~~4, 2016~~3, 2017 is as follows:

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

See accompanying notes to Unaudited Condensed Consolidated Financial Statements.

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

See accompanying notes to Unaudited Condensed Consolidated Financial Statements.

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

See accompanying notes to Unaudited Condensed Consolidated Financial Statements.

CHINA BIOLOGIC PRODUCTS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

See accompanying notes to Unaudited Condensed Consolidated Financial Statements.

CHINA BIOLOGIC PRODUCTS INC. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, ~~2016~~2017 AND ~~2015~~2016

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The December 31, ~~2015~~2016 consolidated balance sheet was derived from the audited consolidated financial statements of China Biologic Products, Inc. (the “Company”). The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the December 31, ~~2015~~2016 audited consolidated financial statements of the Company included in the Company’s annual report on Form 10-K for the year ended December 31, ~~2015.~~2016.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of March 31, ~~2016,~~2017, the results of operations for the three months ended March 31, ~~2016~~2017 and ~~2015, changes in equity for the three months ended March 31,~~ 2016 ~~and 2015,~~ and cash flows for the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, have been made. ~~All significant intercompany transactions and balances are eliminated on consolidation.~~

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment and intangibles with definite lives, the allowances for doubtful accounts, the fair value determinations of stock compensation awards, the realizability of deferred tax assets and inventories, the recoverability of intangible assets, land use rights, property, plant and equipment, equity method investment and loan receivable, and accruals for income tax uncertainties and other contingencies.

Effective January 1, 2017, on a retrospective basis, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). This update required that deferred tax assets and liabilities be classified as noncurrent. As a result of adoption of this guidance, the Company reclassified current deferred income tax assets in the amount of $4,625,996, which had been included in prepayments and other current assets, to other noncurrent assets as of December 31, 2016. There was no impact on results of operations or cash flows as a result of the adoption of this guidance.

Effective January 1, 2017, the Company adopted the FASB ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The standard simplified certain aspects of the accounting for share-based payment transactions, including recognition of excess tax benefits and deficiencies, classification of awards and classification in the statement of cash flows. As a result of adoption, the Company elected to adopt the change regarding income taxes on a prospective basis to recognize excess tax benefits and deficiencies from stock-based compensation as a discrete item in income tax expense, which were historically recorded as additional paid-in-capital. In addition, the Company elected to apply the change regarding classification in the statement of cash flows prospectively to record excess tax benefits from stock-based compensation from cash flows from financing activities to cash flows from operating activities. The adoption of this standard in the first quarter of this year had no material impact on the Company’s financial statements.

The Company’s operations are carried out in the People’s Republic of China (the “PRC”) and are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other matters.

The Company maintains cash and deposit balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits for its bank accounts located in the United States or may exceed Hong Kong Deposit Protection Board insured limits for its bank accounts located in Hong Kong or may exceed the insured limits for its bank accounts in China established by China Deposit Insurance Fund Management Institution.

Total cash at banks and deposits as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 amounted to ~~$179,625,214~~$196,560,252 and ~~$182,291,723,~~$183,078,440, respectively, of which ~~$2,650,724~~$2,522,387 and ~~$3,020,569~~$2,744,704 are insured, respectively. The Company has not experienced any losses in uninsured bank deposits and does not believe that it is exposed to any significant risks on cash held in bank accounts.

As of March 31, 2017 and December 31, 2016, the Company maintained cash and cash equivalents at banks in the following locations:

The Company’s two major products are human albumin and human immunoglobulin for intravenous injection (“IVIG”). Human albumin accounted for ~~38.1%~~40.3% and ~~38.2%~~38.1% of the total sales for the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, respectively. IVIG accounted for ~~39.9%~~34.8% and ~~46.7%~~39.9% of the total sales for the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, respectively. If the market demands for human albumin and IVIG cannot be sustained in the future or the price of human albumin and IVIG decreases, the Company’s operating results could be adversely affected.

Substantially all of the Company’s customers are located in the PRC. There were no customers that individually comprised 10% or more of the total sales during the three months ended March 31, ~~2016~~2017 and ~~March 31, 2015. There was no~~2016. No individual customer represented 10% or more ~~than 10%~~ of accounts receivables as at March 31, ~~2016~~2017 and December 31, ~~2015,~~2016, respectively. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers.

There was one supplier, namely, Xinjiang Deyuan Bioengineering Co., Ltd. (“Xinjiang Deyuan”), that comprised 10% or more of the total purchases for the three months ended March 31, 2017 and 2016. ~~No supplier that comprised 10% or more of the total purchases for the three months ended March 31, 2015. There was one supplier that~~Chongqing Sanda Great Exploit Pharmaceutical Co, Ltd. represented more than 10% of accounts payables as at March 31, ~~2016~~2017 and December 31, ~~2015, respectively.~~2016.

Accounts receivable at March 31, ~~2016~~2017 and December 31, ~~2015~~2016 consisted of the following:

The activity in the allowance for doubtful accounts-accounts receivable for the three months ended March 31, ~~2016~~2017 and ~~2015~~2016 are as follows:

Inventories at March 31, ~~2016~~2017 and December 31, ~~2015~~2016 consisted of the following:

AnProvisions to write-down the carrying amount of obsolete inventory ~~write-down of~~to its estimated net realizable value amounted to nil and $59,560 ~~and $4,576 was recorded~~ during the three months ended March 31, 2017 and 2016, respectively, and ~~2015, respectively.~~were recorded as cost of sales in the unaudited condensed consolidated statements of comprehensive income.

Property, plant and equipment at March 31, ~~2016~~2017 and December 31, ~~2015~~2016 consisted of the following:

Depreciation expense for the three months ended March 31, 2017 and 2016 was $3,052,133 and ~~2015 was~~ $2,267,623, ~~and $2,201,020,~~ respectively.

~~In 2012, Guizhou Taibang made a refundable payment of RMB83,400,000 (approximately $12,907,818) to~~ No interest expenses were capitalized into construction in progress for the local government in connection with the public bidding for a land use right in Guizhou Province. Given the decrease of the land area to be provided by the local government, RMB13,000,000 (approximately $2,012,010)three months ended March 31, 2017 and RMB10,000,000 (approximately $1,547,700) was refunded by the local government in December 2013 and January 2014, respectively. Guizhou Taibang completed the bidding and purchased the land use right in December 2015. In April 2016, RMB 16,082,462 (approximately $2,489,083) was refunded by the local government. The remaining deposit is expected to be refunded by the end of 2016.

In August 2015, the Company entered into a cooperation agreement with Xinjiang Deyuan and the controlling shareholder of Xinjiang Deyuan. Pursuant to the agreement, Guizhou Taibang agreed to provide Xinjiang Deyuan with an interest-bearing ~~loans~~loan at an interest rate of 6% per annum with an aggregate principal amount of RMB300,000,000 (approximately ~~$46,431,000)~~$47,160,000). The ~~loans are~~loan is due July 31, 2018 and secured by a pledge of Deyuan Shareholder’s 58.02% equity interest in Xinjiang Deyuan. Interest will be paid on the 20th day of the last month of each quarter. For the year ended December 31, 2015, RMB258,663,461 (approximately $40,033,344) was lent to Xinjiang Deyuan. The remaining RMB41,336,539 (approximately $6,331,518) was lent during the three months period ended March 31, 2016.

Interest income of $608,180 and $652,306 was ~~accrued~~recognized and received by Guizhou Taibang for the three months ~~period~~ ended March 31, ~~2016.~~2017 and 2016, respectively.

In March 2017, the Company obtained a one-year unsecured loan of RMB60,000,000 (approximately $8,715,000) from Bank of China (Taishan Branch) at an interest rate of 4.5675%. The loan is due March 21, 2018 and interest will be paid on the 21th day of each month.

~~In October 2014, Shandong provincial government granted Shandong Taibang~~Other payables and accrued expenses at March 31, 2017 and December 31, 2016 consisted of the ~~High and New Technology Enterprise certificate. This certificate entitled Shandong Taibang to enjoy a preferential income tax rate of 15% for a period of three years from 2014 to 2016.~~following:

According to Cai Shui [2011] No. 58 dated July 27, 2011, Guizhou Taibang, being a qualified enterprise located in the western region of PRC, enjoys a preferential income tax rate of 15% effective retroactively from January 1, 2011 to December 31, 2020.

The Company’s effective income tax rates were 17% ~~and 16%~~ for the three months ended March 31, 2017 and 2016, respectively. The difference between the effective income tax rates and ~~2015.~~statutory income tax rate of 25% for the three months ended March 31, 2017 and 2016 was primarily due to preferential tax rate of 15% applicable to both Guizhou Taibang and Shandong Taibang in 2017 and 2016, which was partially offset by valuation allowances against the deferred tax assets of China Biologic in the U.S. relating to operating losses.

As of and for the three months ended March 31, ~~2016,~~2017, the Company did not have any unrecognized tax benefits and thus no interest and penalties related to unrecognized tax benefits were recorded. In addition, the Company does not expect that the amount of unrecognized tax benefits to change significantly within the next 12 months.

A summary of stock options activity for the three months ended March 31, ~~2016~~2017 is as follow:

For the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, the Company recorded stock compensation expense of ~~$243,577~~nil and ~~$293,050,~~$243,577, respectively, in general and administrative expenses.

~~At March 31, 2016, approximately $405,625 of stock compensation expense with respect to the non-vested stock options is expected to be recognized over approximately 0.42 years.~~

A summary of nonvested shares activity for the three months ended March 31, ~~2016~~2017 is as follows:

For the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, the Company recorded stock compensation expense of ~~$4,325,818~~$8,072,065 and ~~$1,676,923~~$4,325,818 respectively in general and administrative expenses.

At March 31, ~~2016,~~2017, approximately ~~$44,353,568~~$76,128,493 of stock compensation expense with respect to nonvested shares is expected to be recognized over weighted average period of approximately ~~2.57~~2.76 years.

Management used the following methods and assumptions to estimate the fair value of financial instruments at the relevant balance sheet dates:

• Short-term financial instruments (including cash and cash equivalents, ~~time deposits,~~ accounts receivable, other receivables, accounts payable, short-term bank loan and other payables and accrued expenses) – The carrying amounts of the short-term financial instruments approximate their fair values because of the short maturity of these instruments.

• Loan receivable – The carrying amounts of loan receivable approximate their fair value. The fair value is estimated using discounted cash flow analysis based on the ~~Company’s incremental~~ borrowing rates for similar borrowing.

The Company’s sales ~~are primarily derived from the manufacture and sale of Human Albumin and Immunoglobulin products. The Company’s sales~~ by ~~significant types of product~~products for the three months ended March 31, ~~2016~~2017 and ~~2015~~2016 are as follows:

As of March 31, ~~2016,~~2017, commitments outstanding for operating lease approximated $0.9 million.

As of March 31, 2017, commitments outstanding for the purchase of property, plant and equipment approximated ~~$34.1~~$22.8 million.

As of March 31, ~~2016,~~2017, commitments outstanding for the purchase of plasma from ~~2016~~April 1, 2017 to 2018 approximated ~~$76.1~~$34.9 million.

~~Dispute with Jie’an over Certain Capital Injection into Guizhou Taibang~~

In May 2007, a 91% majority of Guizhou Taibang’s shareholders approved a plan to raise additional capital from qualified strategic investors through the issuance of an additional 20,000,000 shares of Guizhou Taibang. The plan required all existing Guizhou Taibang shareholders to waive their rights of first refusal to subscribe for the additional shares. The remaining 9% minority shareholder of Guizhou Taibang’s shares, Guizhou Jie’an Company, or Jie’an, did not support the plan and did not waive its right of first refusal. In May 2007, Guizhou Taibang signed an Equity Purchase Agreement with certain alleged strategic investors (who concealed their background), pursuant to which such investors agreed to invest an aggregate of RMB50,960,000 (approximately $7,887,079) in exchange for 21.4% of Guizhou Taibang’s equity interests. Such Equity Purchase Agreement was not approved or ratified by over two-thirds supermajority of Guizhou Taibang’s shareholders, which approval or ratification is required under the PRC Company Law. At the same time, as an existing shareholder, Jie’an also subscribed for 1,800,000 shares, representing its pro rata share of the 20,000,000 shares being offered. In total, Guizhou Taibang received RMB50,960,000 (approximately $7,887,079) from the investors and RMB6,480,000 (approximately $1,002,910) from Jie’an.

In June 2007, Jie’an brought a lawsuit against Guizhou Taibang, alleging that it had a right to acquire the 18,200,000 shares offered to the investors under the Equity Purchase Agreement. The trial court denied Jie’an’s request, and the PRC Supreme Court ultimately sustained the original ruling in May 2009 and denied the rights of first refusal of Jie’an over the 18,200,000 shares.

During the second quarter of 2010, Jie’an requested that Guizhou Taibang register its 1.8 million shares of additional capital injection with the local administration of industry and commerce, or AIC. Guizhou Taibang’s board of directors withheld its required ratification of Jie’an’s request, pending the outcome of the ongoing litigation. In March 2012, Jie’an brought another lawsuit against Guizhou Taibang for refusing to register the shares. In July 2013, the trial court dismissed the lawsuit for lack of jurisdiction. Jie’an did not appeal the dismissal.

In December 2013, Jie’an brought a third lawsuit against Guizhou Taibang, requesting Guizhou Taibang to register 1.8 million shares under its name with the local AIC. In July 2014, the trial court denied Jie’an’s request to register such shares. Despite the denial of Jie’an’s share registration request, the trial court, however, in its ruling, ordered Guizhou Taibang to pay accumulated dividends of RMB13,809,197 (approximately $2,137,249) associated with these shares and the related interest expenses to Jie’an. Guizhou Taibang and Jie’an subsequently filed a cross-appeal. In December 2014, the appellate court ruled in favor of Jie’an supporting its request to register 1.8 million shares and ordered Guizhou Taibang to pay Jie’an its share of accumulated dividends of RMB18,339,227 (approximately $2,838,362) associated with these shares plus the related interest expenses to Jie’an. In the first half of 2015, Guizhou Taibang paid an aggregate of RMB22,639,227 (approximately $3,503,873) to the trial court held in escrow pending further appeal of this case. Guizhou Taibang appealed to the High Court of Guizhou in June 2015 which overruled the decision of the appellate court and remanded the case to the trial court for retrial in September 2015.

In November 2013, Guizhou Taibang held a shareholders meeting and the shareholders passed resolutions, or the November 2013 Resolutions, that, inter alia, (i) determined that it was no longer necessary for Guizhou Taibang to obtain additional capital from investors; (ii) rejected Jie’an’s request that Jie’an subscribe for additional shares of Guizhou Taibang alone and one or more other shareholders reduce their shareholding in Guizhou Taibang; and (iii) approved the issuance of a total of 20,000,000 new shares to all existing shareholders on a pro rata basis. Jie’an subsequently filed a fourth lawsuit against Guizhou Taibang in December 2013, requesting that the court declare the November 2013 Resolutions void. Both the trial court and the appellate court denied Jie’an’s request.

In March 2014, Guizhou Taibang held another shareholders meeting and the shareholders passed resolutions, or the March 2014 Resolutions, that, inter alia, re-calculated the ownership percentage in Guizhou Taibang based on the November 2013 Resolutions and the additional capital injections from existing shareholders. Guizhou Taibang subsequently updated the registration with the local AIC regarding the additional capital injections in August 2014. In September 2014, Jie’an and another minority shareholder of Guizhou Taibang filed a lawsuit against Guizhou Taibang, requesting that the court declare both the November 2013 Resolutions and the March 2014 Resolutions void and instruct Guizhou Taibang to withdraw the AIC registration. In November 2014, the trial court suspended this case pending the final outcome of the third lawsuit filed by Jie’an. In October 2015, the trial court denied their request.

If the pending cases with Jie’an are ultimately ruled in Jie’an’s favor, the ownership interest in Guizhou Taibang may be diluted to 83% and Jie’an may be entitled to receive accumulated dividends of RMB18,339,227 (approximately $2,838,362), being its claimed share of Guizhou Taibang’s accumulated dividend distributions associated with the 1.8 million shares, and the related interest expenses from Guizhou Taibang. As of March 31, 2016, Guizhou Taibang had maintained, on its balance sheet, payables to Jie’an in the amounts of RMB5,040,000 (approximately $780,041) as received funds in respect of the 1.8 million shares in dispute, RMB1,440,000 (approximately $222,869) for the over-paid subscription price paid by Jie’an and RMB3,759,412 (approximately $581,844) for the accrued interest. As these cases are closely interlinked to the outcome of the disputes with certain individual investor described below, based on its PRC litigation counsel’s assessment, the Company does not expect Jie’an to prevail.

Dispute with Certain Individual Investors over Certain Capital Injection into Guizhou Taibang

In part due to the invalidity of the Equity Purchase Agreement with certain alleged strategic investors in May 2007, which was never approved or ratified by Guizhou Taibang’s shareholders, such investors’ equity ownership in Guizhou Taibang and the related increase in registered capital of Guizhou Taibang have never been registered with the local AIC. In January 2010, one individual among such investors brought a lawsuit against Guizhou Taibang requesting to register his 14.35% ownership interest in Guizhou Taibang with the local AIC and seeking the distribution of his share of Guizhou Taibang’s dividends declared since 2007.

In October 2010, the trial court denied such individual investor’s right as ~~shareholders~~shareholder of Guizhou Taibang and his entitlement to share the dividends, which ruling was reaffirmed after a re-trial by the same trial court in December 2012. After such ruling, Guizhou Taibang attempted to return the originally received fund of RMB34,160,000 (approximately ~~$5,286,943)~~$5,011,272) to such investor by wiring the fund back to his bank account but was unable to do so due to the closure of his bank account. Another investor, however, accepted the returned fund of RMB11,200,000 (approximately ~~$1,733,424)~~$1,699,040) from Guizhou Taibang in November 2010. In 2013, the same individual investor appealed the case to the PRC Supreme Court, which also denied his claims for shareholder status in Guizhou Taibang and the related dividend distribution and accrued interest in September 2013. Such investor subsequently attempted to seek a re-trial by the PRC Supreme Court, which request was denied by the PRC Supreme Court in January 2014. He then applied to the PRC Supreme Procuratorate to request for a review of the PRC Supreme Court’s decision and seek an appeal by the PRC Supreme Procuratorate to the PRC Supreme Court for an ultimate re-trial on his behalf. In July 2015, the PRC Supreme Procuratorate rejected his request for review.

As of March 31, ~~2016,~~2017, Guizhou Taibang had maintained, on its balance sheet, payables to the ~~investors~~investor of RMB34,160,000 (approximately ~~$5,286,943)~~$4,951,150) as originally received funds from such individual investor in respect of the shares in dispute, ~~RMB18,082,330~~RMB20,987,035 (approximately ~~$2,798,602)~~$3,041,861) for the interest expenses, and RMB341,600 (approximately ~~$52,869)~~$49,512) for the 1% penalty imposed by the Equity Purchase Agreement for any breach in the event that Guizhou Taibang is required to return the original investment amount to such investor.

The following table sets forth the computation of basic and diluted ~~net income~~earnings per share for the periods indicated:

During the three months ended March 2017 and 2016, ~~and 2015,~~ no ~~option was antidilutive or~~potential ordinary shares outstanding were excluded from the calculation of diluted ~~net income~~earnings per common stock.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Special Note Regarding Forward Looking Statements

In addition to historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act, ~~of 1933, as amended,~~ and Section 21E of the ~~Securities~~ Exchange ~~Act of 1934, as amended.~~Act. We use words such as “believe,” “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will” or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, those concerning market and industry growth and demand and acceptance of new and existing products; expectations regarding governmental approvals of our new products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those identified in Item 1A “Risk Factors” described in our Annual Report on Form 10-K ~~filed on February 25,~~for the fiscal year ended December 31, 2016, as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause the results of ~~our company~~the Company to differ materially from those expressed or implied by such forward-looking statements.

Readers are urged to carefully review and consider the various disclosures made by us in this report and our other filings with the SEC. These reports attempt to advise interested parties of the risks and factors that may affect our business, financial condition and results of operations and prospects. The forward-looking statements made in this report speak only as of the date hereof and we disclaim any obligation, except as required by law, to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events.

Use of Terms

Except as otherwise indicated by the context and for the purposes of this report only, references in this report to:

“China Biologic,” “we,” “us,” ~~“our company,”~~ the “Company” or “our” are to ~~the combined business of~~ China Biologic Products, Inc., a Delaware corporation, and, unless the context requires otherwise, its direct and indirect subsidiaries;

“China” or “PRC” are to the People’s Republic of China, excluding, for the purposes of this report only, Taiwan and the special administrative regions of Hong Kong and Macau;

“Exchange Act” are to the Securities Exchange Act of 1934, as amended;

“~~GMP” are to good manufacturing practice;~~

“Guizhou Taibang” are to ~~our majority owned subsidiary~~ Guizhou Taibang Biological Products Co., Ltd., a PRC ~~company;~~company indirectly wholly owned by us;

“Huitian” are to Xi’an Huitian Blood Products Co., Ltd., a PRC company in which we hold aan indirect minority equity interest;

“RMB” are to the legal currency of China;

“SEC” are to the Securities and Exchange Commission;

“Securities Act” are to the Securities Act of 1933, as amended;

“Shandong Taibang” are to ~~our majority owned subsidiary~~ Shandong Taibang Biological Products Co. Ltd., a PRC ~~company;~~company indirectly majority owned by us; and

“U.S. dollars,” “USD” and “$” are to the legal currency of the United ~~States.~~States of America.

Overview of Our Business

We are a biopharmaceutical company principally engaged in the research, development, manufacturing and sales of human plasma-based biopharmaceutical products, or plasma products, in China. We operate our business through ~~two~~a majority owned ~~subsidiaries,~~subsidiary, Shandong Taibang, a company based in Tai’an, Shandong Province and a wholly owned subsidiary, Guizhou Taibang, a company based in Guiyang, Guizhou Province. We also hold a minority equity interest in Huitian, a plasma products company based in Xi’an, Shaanxi Province.

We have a strong product portfolio with over 20 different dosage forms of plasma products and other biopharmaceutical products across nine categories. All of our products are prescription medicines administered in the form of injections. Our principal products are human albumin and immunoglobulin for intravenous injection, or IVIG. Albumin has been used for almost 50 years to treat critically ill patients by assisting the maintenance of adequate blood volume and pressure. IVIG is used for certain disease prevention and treatment by enhancing specific immunity. These products use human plasma as their principal raw material. Sales of human albumin products represented approximately ~~38.1%~~40.3% and ~~38.2%~~38.1% of our total sales for the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, respectively. Sales of IVIG products represented approximately ~~39.9%~~34.8% and ~~46.7%~~39.9% of our total sales for the three months ended March 31, 2017 and 2016, ~~and 2015,~~ respectively. ~~All of our products are prescription medicines administered in the form of injections.~~

Our sales model focuses on direct sales to hospitals and inoculation centers and is complemented by distributor sales.For the three months ended March 31, ~~2016~~2017 and ~~2015~~,2016, our top five customers accounted for approximately ~~17.5%~~20.1% and ~~13.8%~~17.5%, respectively, of our total sales.

We operate and manage our business as one single segment. We do not account for the results of our operations on a geographic or other basis.

Our principal executive offices are located at 18th Floor, Jialong International Building, 19 Chaoyang Park Road, Chaoyang District, Beijing 100125, People’s Republic of China. Our corporate telephone number is (8610) 6598-3111 and our fax number is (8610) 6598-3222. We maintain a website athttp://www.chinabiologic.com that contains information about our company, but that information is not part of this report or incorporated by reference herein.

~~Recent Developments~~

In April 2016, our wholly owned subsidiary, Guiyang Dalin Biologic Technologies Co., Ltd., increased its equity interest in Guizhou Taibang from 81.81% as of December 31, 2015 to 85.27% following a series of capital injections.

First Quarter Financial Performance Highlights

The following are some financial highlights for the three months ended March 31, ~~2016:~~2017:

Sales: Sales increased by ~~$15.2~~$5.9 million, or ~~21.6%~~6.9%, to ~~$85.6~~$91.5 million for the three months ended March 31, ~~2016,~~2017, from ~~$70.4~~$85.6 million for the same period in ~~2015.~~2016.

Gross profit: Gross profit increased by ~~$5.6~~$7.7 million, or ~~12.2%~~15.0%, to ~~$51.5~~$59.2 million for the three months ended March 31, ~~2016,~~2017, from ~~$45.9~~$51.5 million for the same period in ~~2015.~~2016.

Income from operations: Income from operations increased by ~~$3.2~~$0.9 million, or ~~9.2%~~2.4%, to ~~$37.9~~$38.8 million for the three months ended March 31, ~~2016,~~2017, from ~~$34.7~~$37.9 million for the same period in ~~2015.~~2016.

Net income attributable to our company: Net income increased by ~~$3.0~~$3.8 million, or ~~12.9%~~14.5%, to ~~$26.2~~$30.0 million for the three months ended March 31, ~~2016,~~2017, from ~~$23.2~~$26.2 million for the same period in ~~2015.~~2016.

Diluted ~~net income~~earnings per share: Diluted ~~net income~~earnings per share was ~~$0.94~~$1.06 for the three months ended March 31, ~~2016,~~2017, as compared to ~~$0.87~~$0.94 for the same period in ~~2015.~~2016.

Results of Operations

Comparison of Three Months Ended March 31, ~~2016~~2017 and March 31, ~~2015~~2016

The following table sets forth key components of our results of operations in thousands of U.S. dollars for the periods indicated.

	For the three months ended March 31,												For the Three Months Ended March 31,
	2016						2015						2017						2016
	Amount			% of Total Sales			Amount			% of Total Sales			Amount			% of Total Sales			Amount			% of Total Sales
	(U.S. dollars in thousands, except percentage and per share data)												(U.S. dollars in thousands, except percentage and per share data)
Sales		85,588			100.0			70,354			100.0			91,453			100.0			85,588			100.0
Cost of sales		34,043			39.8			24,462			34.8			32,215			35.2			34,043			39.8
Gross margin		51,545			60.2			45,892			65.2
Gross profit														59,238			64.8			51,545			60.2
Operating expenses:
Selling expenses		1,228			1.4			1,951			2.8			3,808			4.2			1,228			1.4
General and administrative expenses		11,328			13.2			7,853			11.2			15,257			16.7			11,328			13.2
Research and development expenses		1,095			1.3			1,342			1.9			1,357			1.5			1,095			1.3
Total operating expenses		13,651			15.9			11,146			15.8			20,422			22.4			13,651			15.9
Income from operations		37,894			44.3			34,746			49.4			38,816			42.4			37,894			44.3
Other income (expenses):
Equity in loss of an equity method investee		(216	)		(0.3	)		(95	)		(0.1	)
Equity in income (loss) of an equity method investee														912			1.0			(216	)		(0.3	)
Interest expense		(89	)		(0.1	)		(757	)		(1.1	)		(63	)		(0.1	)		(89	)		(0.1	)
Interest income		1,751			2.0			1,377			2.0			1,624			1.8			1,751			2.0
Total other income, net		1,446			1.6			525			0.7			2,473			2.7			1,446			1.6
Earnings before income tax expense		39,340			45.9			35,271			50.1
Income before income tax expense														41,289			45.1			39,340			45.9
Income tax expense		6,607			7.7			5,616			8.0			6,951			7.6			6,607			7.7
Net income		32,733			38.2			29,655			42.2			34,338			37.5			32,733			38.2
Less: Net income attributable to noncontrolling interest		6,536			7.6			6,493			9.2			4,346			4.7			6,536			7.6
Net income attributable to our company		26,197			30.6			23,162			32.9			29,992			32.8			26,197			30.6
Net income per share of common stock
Earnings per share of common stock
Basic		0.96						0.91						1.07						0.96
Diluted		0.94						0.87						1.06						0.94

Sales

Our sales increased by ~~$15.2~~$5.9 million, or ~~21.6%~~6.9%, to ~~$85.6~~$91.5 million for the three months ended March 31, ~~2016,~~2017, compared to ~~$70.4~~$85.6 million for the same period in ~~2015. Excluding the foreign exchange impact resulting from the depreciation of the~~2016. In RMB ~~against the U.S. dollar,~~terms, our total sales ~~would have~~ increased by ~~29.4%~~12.7% for the three months ended March 31, ~~2016~~2017 as compared to the same period in ~~2015.~~2016. The increase in sales for the three months ended March 31, ~~2016~~2017 was primarily attributable to the sales volume ~~increases~~increase in ~~major plasma~~human albumin products and ~~human tetanus immunoglobulin~~placenta polypeptide products.

The following table summarizes the breakdown of sales by ~~significant~~major types of product:

	For the three months ended March 31,								Change				For the Three Months Ended March 31,								Change
	2016				2015								2017				2016
	Amount		%		Amount		%		Amount		%		Amount		%		Amount		%		Amount			%
	(U.S. dollars in millions, except percentage)												(U.S. dollars in millions, except percentage)
Human albumin		32.6		38.1		26.9		38.2		5.7		21.2		36.9		40.3		32.6		38.1		4.3			13.2
Immunoglobulin products:
IVIG		34.2		39.9		32.9		46.7		1.3		4.0		31.8		34.8		34.2		39.9		(2.4	)		(7.0	)
Other immunoglobulin products		8.9		10.4		4.3		6.2		4.6		107.0		8.3		9.1		8.9		10.4		(0.6	)		(6.7	)
Placenta polypeptide		5.7		6.7		4.6		6.5		1.1		23.9		10.2		11.1		5.7		6.7		4.5			78.9
Others		4.2		4.9		1.7		2.4		2.5		147.1		4.3		4.7		4.2		4.9		0.1			2.4
Totals		85.6		100.0		70.4		100.0		15.2		21.6		91.5		100.0		85.6		100.0		5.9			6.9

During the three months ended March 31, ~~2016~~2017 as compared to the three months ended March 31, ~~2015:~~2016:

the average price for our approved human albumin products, which accounted for ~~38.1%~~40.3% of our total sales for the three months ended March 31, ~~2016, increased~~2017, decreased by ~~2.8%~~1.2% and 6.3% in RMB term and ~~decreased by 3.4%~~ in USD ~~term;~~term, respectively, mainly due to lower sales proportion from the higher-unit-price dosages; and

the average price for our approved IVIG products, which accounted for ~~39.9%~~34.8% of our total sales for the three months ended March 31, ~~2016,~~2017, increased by ~~2.7%~~3.2% in RMB term and decreased by ~~3.4%~~2.1% in USD ~~term;~~term mainly due to an increase in price to the company’s major distributors; and

~~The average sales price of our human albumin products and IVIG products increased in RMB term for the three months ended March 31, 2016 as compared to the same period in 2015following the removal of the retail price ceiling for drug products effective on June 1, 2015~~.

The sales volume of our products depends on market demand and our production volume. The production volume of our human albumin products and IVIG products depends primarily on the general plasma supply. The production volume of our hyper-immune products, which include human rabies immunoglobulin, human hepatitis B immunoglobulin and human tetanus immunoglobulin products, is subject to the availabilities of specific vaccinated plasma and our production capacity. The supply of specific vaccinated plasma requires several months of lead time. Our production facility currently can only accommodate the production of one type of hyper-immune products at any given time and we rotate the production of different types of hyper-immune products from time to time in response to market demand. As such, the sales volume of any given type of hyper-immune products may vary significantly from quarter to quarter.

The sales volume of ~~our~~ human albumin products ~~and IVIG products~~ increased by ~~25.6% and 7.6%~~20.6% for the three months ended March 31, ~~2016~~2017 as compared to the same period in ~~2015~~2016, primarily due to enhanced production and sales volume at Guizhou Taibang as a result of ~~the~~ increased ~~production~~plasma supply volume. The sales volume ~~at Shandong Taibang and Guizhou Taibang. The slower sales growth~~ of IVIG products decreased by 5% for the three months ended March 31, 2017 as compared to the same period in 2016, ~~was~~ primarily due to a high comparison base in the ~~depletion~~first quarter of 2016 when we sold the IVIG products processed from the approximately 143 tonnes of source plasma and plasma pastes ~~we reserved~~outsourced from ~~previous years to be processed and sold~~Xinjiang Deyuan in ~~2015 in anticipation of favorable market conditions and our improved sales capabilities at that time.~~2015.

~~The sales increase of~~Revenue from hyper-immune products, which were included in other immunoglobulin products, decreased by 6.7% in USD term for the three months ended March 31, ~~2016~~2017 as compared to the same period in ~~2015 was mainly attributable to the increase in both sales volume and sales price of human tetanus immunoglobulin products. The sales of human tetanus immunoglobulin~~2016.

Revenue from placenta polypeptide products increased by ~~$5.0 million~~89.3% and 78.9% in RMB term and USD term, respectively, reaching 11.1% of total sales, for the three months ended March 31, ~~2016~~2017 as compared to the same period in ~~2015. The average~~2016, attributable to higher-than-normal product sales volume in the first quarter possibly in anticipation of the nationwide implementation of a two-invoice policy system which will potentially result in higher billing price offor distributors in the future.

Revenue from other plasma products including human ~~tetanus immunoglobulin products~~coagulation factor VIII and human prothrombin complex concentrate increased ~~significantly~~by 8.2% and 2.4% in RMB term and USD term, respectively, for the three months ended March 31, ~~2016~~2017 as compared to the same period in ~~2015 due to the strong market demand coupled by the removal~~2016, representing at 4.7% of ~~the retail price ceiling for drug products effective on June 1, 2015.~~

~~The~~total sales ~~increase of other products~~ for the three months period ended March 31, 2016 as compared to the same period in 2015 was mainly due to the increase in sales volume of human prothrombin complex concentrate, or PCC and factor VIII. We launched PCC to the market in early 2015 and experienced the sales ramp-up for the three months ended March 31, 2016.2017.

Cost of salesand gross profit

	For the three months ended March 31,						Change					For the Three Months Ended March 31,						Change
	2016			2015			Amount		%			2017			2016			Amount			%
	(U.S. dollars in millions, except percentage)											(U.S. dollars in millions, except percentage)
Cost of sales		34.1			24.5			9.6		39.2			32.3			34.1			(1.8	)		(5.3	)
as a percentage of total sales		39.8	%		34.8	%				5.0			35.2	%		39.8	%					(4.6	)
Gross Profit		51.5			45.9			5.6		12.2			59.2			51.5			7.7			15.0
Gross Margin		60.2	%		65.2	%				(5.0	)		64.8	%		60.2	%					4.6

Our cost of sales was ~~$34.1~~$32.3 million, or ~~39.8%~~35.2% of our sales for the three months ended March 31, ~~2016,~~2017, as compared to ~~$24.5~~$34.1 million, or ~~34.8%~~39.8% of our sales for the same period in ~~2015.~~2016. Our gross profit was ~~$51.5~~$59.2 million and ~~$45.9~~$51.5 million for the three months ended March 31, ~~2016~~2017 and ~~2015,~~2016, respectively, representing gross margins of ~~60.2%~~64.8% and ~~65.2%~~60.2%, respectively. The decrease of the gross margin was mainly due to the sales derived from the raw material purchased from Xinjiang Deyuan Bioengineering Co., Ltd., or Xinjiang Deyuan, whose cost is moderately higher than plasma from our own collection stations. Excluding this impact, our gross margin remained consistent for the three months ended March 31, 2016 as compared to the same period in 2015.

Our cost of sales and gross margin are affected by the ~~volume and~~product pricing, ~~of our sold products,~~ raw material costs, ~~production~~product mix, yields and ~~respective yields, inventory provisions, production cycles and routine maintenance costs.~~manufactory efficiency. In an effort to increase plasma collection volume and expand our donor base, we increased the nutrition fees paid to donors consistent with the industry practice. We ~~expected~~expect the nutrition fees to be paid to donors will continue to increase as a result of improving living standards in China. Consequently, future improvements on margins will need to be derived from increases in product pricing, ~~and volume, product mix,~~ yields and manufacturing ~~efficiency.~~efficiency, as well as from optimizing the product mix.

The ~~increase in cost of sales for the three months ended March 31, 2016 as compared to the same period in 2015 was generally in line with the increases in sales volume and cost of plasma. The increase~~decrease in cost of sales as a percentage of sales for the three months ended March 31, ~~2016~~2017 as compared to the same period in ~~2015~~2016 was mainly due to the ~~moderately higher cost~~lower sales proportion of the high-cost outsourced raw plasma, ~~purchased from Xinjiang Deyuan partially offset by~~as well as greater sales proportion of the ~~increase in the average sales price of certain plasma~~higher-margin placenta polypeptide products.

Operating expenses

	For the three months ended March 31,						Change				For the Three Months Ended March 31,						Change
	2016			2015			Amount		%		2017			2016			Amount		%
	(U.S. dollars in millions, except percentage)										(U.S. dollars in millions, except percentage)
Operating expenses		13.6			11.1			2.5		22.5		20.4			13.6			6.8		50.0
as a percentage of total sales		15.9	%		15.8	%				0.1		22.4	%		15.9	%				6.5

Our total operating expenses increased by ~~$2.5~~$6.8 million, or ~~22.5%~~50.0%, to ~~$13.6~~$20.4 million for the three months ended March 31, ~~2016,~~2017, from ~~$11.1~~$13.6 million for the same period in ~~2015.~~2016. As a percentage of sales, total operating expenses increased by ~~0.1%~~6.5% to ~~15.9%~~22.4% for the three months ended March 31, ~~2016,~~2017, from ~~15.8%~~15.9% for the same period in ~~2015.~~2016. The increase of the total operating expenses was mainly due to the increase of the selling expenses and general and administrative expenses as discussed below.

Selling expenses

	For the three months ended March 31,						Change						For the Three Months Ended March 31,						Change
	2016			2015			Amount			%			2017			2016			Amount		%
	(U.S. dollars in millions, except percentage)												(U.S. dollars in millions, except percentage)
Selling expenses		1.2			2.0			(0.8	)		(40.0	)		3.8			1.2			2.6		216.7
as a percentage of total sales		1.4	%		2.8	%					(1.4	)		4.2	%		1.4	%				2.8

Our selling expenses ~~decreased~~increased by ~~$0.8~~$2.6 million, or ~~40.0%~~216.7%, to ~~$1.2~~$3.8 million for the three months ended March 31, ~~2016,~~2017, from ~~$2.0~~$1.2 million for the same period in ~~2015.~~2016. As a percentage of sales, our selling expenses ~~decreased~~increased by ~~1.4%~~2.8% to ~~1.4%~~4.2% for the three months ended March 31, ~~2016,~~2017, from ~~2.8%~~1.4% for the same period in ~~2015~~2016 primarily due to ~~the~~higher marketing and promotion ~~activities on human rabies immunoglobulin~~costs related to certain hyper-immune products ~~we carried out in the three months ended March 31, 2015.~~and placenta polypeptide products.

General and administrative expenses

For the three months ended March 31, Change
2016 2015 Amount %
(U.S. dollars in millions, except percentage)
General and administrative expenses 11.3 7.9 3.4 43.0
as a percentage of total sales 13.2 % 11.2 % 2.0

	For the Three Months Ended March 31,						Change
	2017			2016			Amount		%
	(U.S. dollars in millions, except percentage)
General and administrative expenses		15.2			11.3			3.9		34.5
as a percentage of total sales		16.7	%		13.2	%				3.5

Our general and administrative expenses increased by ~~$3.4~~$3.9 million, or ~~43.0%~~34.5%, to ~~$11.3~~$15.2 million for the three months ended March 31, ~~2016,~~2017, from ~~$7.9~~$11.3 million for the same period in ~~2015.~~2016. General and administrative expenses as a percentage of sales increased by ~~2.0%~~3.5% to ~~13.2%~~16.7% for the three months ended March 31, ~~2016,~~2017, from ~~11.2%~~13.2% for the same period in ~~2015.~~2016. The increase in general and administrative expenses was mainly due to the increase of share-based compensation expenses totaling ~~$2.6~~$3.5 million.

Research and development expenses

	For the three months ended March 31,						Change						For the Three Months Ended March 31,						Change
	2016			2015			Amount			%			2017			2016			Amount		%
	(U.S. dollars in millions, except percentage)												(U.S. dollars in millions, except percentage)
Research and development expenses		1.1			1.3			(0.2	)		(15.4	)		1.4			1.1			0.3		27.3
as a percentage of total sales		1.3	%		1.9	%					(0.6	)		1.5	%		1.3	%				0.2

Our research and development expenses ~~decreased~~increased by ~~$0.2~~$0.3 million, or ~~15.4%~~27.3%, to ~~$1.1~~$1.4 million for the three months ended March 31, ~~2016,~~2017, from ~~$1.3~~$1.1 million for the same period in ~~2015. We received government grants of RMB 0.9 million (approximately $0.14 million) and recognized it as a reduction of research and development expenses for the three months ended March 31,~~ 2016. Excluding this impact, our research and development expenses remained consistent in RMB term for the three months ended March 31, 2016 as compared to the same period in 2015. As a percentage of sales, our research and development expenses for the three months ended March 31, 2016 and 2015 were 1.3% and 1.9%, respectively.

Income tax

	For the three months ended March 31,						Change					For the Three Months Ended March 31,						Change
	2016			2015			Amount		%			2017			2016			Amount		%
	(U.S. dollars in millions, except percentage)											(U.S. dollars in millions, except percentage)
Income tax		6.6			5.6			1.0		17.9			7.0			6.6			0.4		6.1
as a percentage of total sales		7.7	%		8.0	%				(0.3	)		7.6	%		7.7	%				(0.1	)

Our provision for income taxes increased by ~~$1.0~~$0.4 million, or ~~17.9%~~6.1%, to ~~$6.6~~$7.0 million for the three months ended March 31, ~~2016,~~2017, from ~~$5.6~~$6.6 million for the same period in ~~2015.~~2016. Our effective income tax rate was 16.8% ~~and 15.9%~~ for the three months ended March 31, 2017 and 2016, respectively. The difference between the effective income tax rates and ~~2015, respectively.The~~ statutory income tax rate of 25% for the three months ended March 31, 2017 and 2016 was primarily due to preferential tax rate of 15% applicable to ~~our major operating subsidiaries~~both Guizhou Taibang and Shandong Taibang in 2017 and 2016, which was partially offset by valuation allowances against the deferred tax assets of China Biologic in the ~~PRC for 2016 and 2015 is 15.0%.~~U.S. relating to operating losses.

Liquidity and Capital Resources

To date, we have financed our operations primarily through cash flows from operations, ~~augmented~~supplemented by bank borrowings and equity contributions by our stockholders. As of March 31, ~~2016,~~2017, we had ~~$180.1~~$197.4 million in cash and cash equivalents, primarily consisting of ~~cash on hand and~~ demand deposits.

The following table provides the summary of our cash flows for the periods indicated:

For the three months ended March 31,
2016 2015
(U.S. dollars in millions)
Net cash provided by operating activities 24.2 16.5
Net cash used in investing activities (19.9 ) (8.5 )
Net cash provided by (used in) financing activities 29.8 (2.1 )
Effects of exchange rate change on cash 1.1 (0.7 )
Net increase in cash and cash equivalents 35.2 5.2
Cash and cash equivalents at beginning of the period 144.9 80.8
Cash and cash equivalents at end of the period 180.1 86.0

	For the Three Months Ended March 31,
	2017			2016
	(U.S. dollars in millions)
Net cash provided by operating activities		13.1			24.2
Net cash used in investing activities		(9.1	)		(19.9	)
Net cash provided by financing activities		8.8			29.8
Effects of exchange rate change on cash		0.8			1.1
Net increase in cash and cash equivalents		13.6			35.2
Cash and cash equivalents at beginning of the period		183.8			144.9
Cash and cash equivalents at end of the period		197.4			180.1

Operating Activities

Net cash provided by operating activities for the three months ended March 31, ~~2016~~2017 was ~~$24.2~~$13.1 million, as compared to ~~$16.5~~$24.2 million for the same period in ~~2015.~~2016. The ~~increase~~decrease in net cash provided by ~~operations~~operating activities was ~~largely consistent with~~primarily due to the ~~improvements~~increases in ~~our results of operations, the speed-up of~~ accounts receivable ~~collection~~ and the increase of net non-cash operating expense for the three months ended March 31, 2016 as compared to the same period in 2015, partially offset by an increase in inventories during the relevant period.inventories.

Accounts receivable

~~We sped up our collection~~Accounts receivable increased by $17.6 million during the first quarter of ~~accounts receivable for the three months ended March 31, 2016~~2017, as compared to $5.3 million in the same ~~period in 2015.~~quarter of 2016. The accounts receivable turnover days for plasma products ~~were~~increased to 46 days during the first quarter of 2017 from 33 days and 38 days for the three months period ended March 31, 2016 and March 31, 2015, respectively. For the three months ended March 31, 2015, in order to penetrate the market for human rabies immunoglobulin product, we granted credit terms ranging from two to three months to the distributors rather than requiring them to make full payments prior to deliveries. We no longer implemented such credit policy in the ~~three months ended March 31,~~same quarter of 2016. The increased turnover days are combined results of higher percentage of direct sales and higher concentration on large hospital customers and distributor customers that typically request longer credit terms.

Inventories

Inventories increased by $9.1 million in the first quarter of 2017, mainly comprising of outsourced and our own collected raw material plasma increase. This increase was higher than the inventory increase of $3.9 million ~~during the three months ended March 31, 2016, as compared to $1.9 million during~~in the same ~~period in 2015, primarily due~~quarter of 2016, mainly because we had to stockpile sufficient inventories as a preparation for the ~~increase of plasma purchased from Xinjiang Deyuan.~~

~~Net non-cash operating expenses~~

Net non-cash operating expenses increased by $1.5 million during the three months ended March 31, 2016, as compared to the same period in 2015, primarily due to the increase of share-based compensation expenses totaling $2.6 million.planned temporary production suspension at our Shandong facility.

Investing Activities

Our use of cash for investing activities is primarily for the acquisition of property, plant and equipment ~~intangibles~~ and long-term loan to a third party.

Net cash used in investing activities for the three months ended March 31, ~~2016~~2017 was ~~$19.9~~$9.1 million, as compared to ~~$8.5~~$19.9 million for the same period in ~~2015.~~2016. During the three months ended March 31, 2017 and 2016, we paid $9.1 million and $14.6 million, respectively, for the acquisition of property, plant and equipment ~~intangible assets~~ and land use ~~right~~rights for Shandong Taibang and Guizhou ~~Taibang, and~~Taibang. In addition, during the three months ended March 31, 2016, we granted a loan of $6.3 million to Xinjiang Deyuan pursuant to a cooperation agreement we entered into with Xinjiang Deyuan in August 2015. ~~During the three months ended March 31, 2015, we paid $8.5 million for the acquisition of property, plant and equipment, for Shandong Taibang and Guizhou Taibang.~~

Financing Activities

Net cash provided by financing activities for the three months ended March 31, ~~2016~~2017 was ~~$29.8~~$8.8 million, as compared to net cash ~~used in~~provided by financing activities of ~~$2.1~~$29.8 million for the same period in ~~2015.~~2016. The net cash provided by financing activities in the first quarter of 2017 mainly consisted of $8.7 million short-term loan. The net cash provided by financing activities for the three months ended March 31, 2016 mainly consisted of the maturity of a $37.8 million time deposit as a security for a 24-month loan which was fully repaid in June 2015, partially offset by dividend of $7.9 million paid to the ~~minority~~noncontrolling shareholder by Shandong Taibang. The net cash used in financing activities for the three months ended March 31, 2015 mainly consisted of a repayment of $31.6 million on a short-term bank loan and a dividend of $3.0 million to be held in escrow by a trial court in connection with disputes with a minority shareholder of Guizhou Taibang, partially offset by the maturity of a $32.0 million deposit as security for the same short-term bank loan.

Management believes that our company has sufficient cash on hand and will continue to have positive cash inflow for its operations from the sale of its products in the PRC market.

Obligations under Material Contracts

The following table sets forth our material contractual obligations as of March 31, ~~2016:~~2017:

	Payments Due by Period										Payments Due by Period
Contractual Obligations	Total		Less than one year		One to three years		Three to five years		More than five years		Total		Less than one year		One to three years		Three to five years		More than five years
	(U.S. dollars in millions)										(U.S. dollars in millions)
Operating lease commitment		1.4		0.4		0.8		-		0.2		0.9		0.4		0.4		-		0.1
Purchase commitment		76.1		29.8		46.3		-		-		34.9		23.7		11.2		-		-
Capital commitment		34.1		30.7		3.4		-		-		22.8		20.5		2.3		-		-
Total		111.6		60.9		50.5		-		0.2		58.6		44.6		13.9		-		0.1

Seasonality of Our Sales

Our operating results and operating cash flows historically have not been subject to seasonal variations. This pattern may change, however, as a result of new market opportunities or new product introductions.

Inflation

Inflation does not materially affect our business or the results of our operations.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our investors.

Critical Accounting Policies

Critical accounting policies are those we believe are most important to portraying our financial conditions and results of operations and also require the greatest amount of subjective or complex judgments by management. Judgments and uncertainties regarding the application of these policies may result in materially different amounts being reported under various conditions or using different assumptions. There have been no material changes to the critical accounting policies previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2015.~~2016.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Our operations are carried out in the PRC and we are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. Accordingly, our business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. Our results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

Interest Rate Risk

We are exposed to interest rate risk primarily with respect to our bank loans. We have not used any derivative financial instruments to manage our interest rate risk exposure. We have not been exposed nor do we anticipate being exposed to material risks due to changes in interest rates. However, our future interest expenses may increase due to changes in market interest rates.

Management monitors the banks’ prime rates in conjunction with our cash requirements to determine the appropriate level of debt balances relative to other sources of funds. We have not entered into any hedging transactions in an effort to reduce our exposure to interest rate risk.

Foreign Exchange Risk

All of our ~~consolidated~~ revenues and ~~consolidated~~ costs of sales and majority of expenses are denominated in RMB. All of our assets are denominated in RMB, except certain cash balances. However, our reporting currency is U.S. dollars. As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange rate between U.S. dollars and RMB. If RMB depreciates against the U.S. dollars, the value of our RMB revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline. Assets and liabilities are translated at exchange rates at the balance sheet dates and revenue and expenses are translated at the average exchange rates and shareholders’ equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income but are included in ~~determining~~ other comprehensive income, a component of stockholders’ equity. We have not entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk.

RMB is currently freely convertible under the “current account,” which includes dividends, trade and service-related foreign exchange transactions, but not under the “capital account,” which includes foreign direct investment. In addition, beginning in July 2005, China reformed its exchange rate regime by changing to a managed floating exchange rate regime based on market supply and demand with reference to a basket of major foreign currencies. Under the managed floating exchange rate regime, RMB is no longer pegged to U.S. dollars. The People’s Bank of China announces the closing prices of foreign currencies such as U.S. dollars traded against RMB in the inter-bank foreign exchange market after the closing of the market on each business day, and makes such prices the central parity for trading against RMB on the following business day. On May 19, 2007, the People’s Bank of China announced a policy to expand the maximum daily floating range of RMB trading prices against U.S. dollars in the inter-bank spot foreign exchange market from 0.3% to 0.5%. On June 19, 2010, the People’s Bank of China announced that it would proceed further with the reform of the RMB exchange rate regime to enhance the flexibility of the RMB exchange rate and that emphasis would be placed on reflecting market supply and demand with reference to a basket of major foreign currencies. On April 16, 2012, the People’s Bank of China announced a policy to expand the maximum daily floating range of RMB trading prices against U.S. dollars in the inter-bank spot foreign exchange market from 0.5% to 1.0%. On March 17, 2014, the People’s Bank of China announced a policy to further expand the maximum daily floating range of RMB trading prices against U.S. dollars in the inter-bank spot foreign exchange market to 2.0%. In the long term, RMB may appreciate or depreciate more significantly in value against U.S. dollars or other foreign currencies, depending on the market supply and demand with reference to a basket of major foreign currencies. On August 10, 2015, the People’s Bank of China announced that it had changed the calculation method for RMB’s daily central parity exchange rate against U.S. dollars, which resulted in an approximately 2.0% depreciation of RMB on that day. RMB continued to ~~depreciate~~experience an approximately 9% depreciation against U.S. dollars throughout the remainder of 2015 and up to the ~~three months ended March 31, 2016.~~date of this report.

Account Balances

We maintain balances at financial institutions which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits for the banks located in the United States, Hong Kong Deposit Protection Board insured limits for the banks located in Hong Kong, or China Deposit Insurance Scheme insured limits for the banks located in the PRC. Total cash at banks and time deposits as of March 31, ~~2016~~2017 and December 31, ~~2015~~2016 amounted to ~~$179.6~~$196.6 million and ~~$182.3~~$183.1 million, respectively, ~~$2.7~~$2.5 million and ~~$3.0~~$2.7 million of which are covered by insurance, respectively. We have not experienced any losses in such accounts and we do not believe that we are exposed to any significant risks on our cash at banks and deposits.

Inflation

Inflationary factors such as increases in the cost of our sales and overhead costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses as a percentage of net sales if the selling prices of our products do not increase with these increased costs.

Market for Human Albumin and IVIG

Our two major products, human albumin and IVIG, accounted for ~~38.1%~~40.3% and ~~39.9%~~34.8% of the total sales for the three months ended March 31, ~~2016,~~2017, respectively. If the market demands for human albumin or IVIG cannot be sustained in the future or if there is substantial price decrease in either or both products, our operating results could be materially and adversely affected.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15(e), our management has carried out an evaluation, with the participation and under the supervision of our Chief Executive Officer, Mr. David (Xiaoying) Gao and our Chief Financial Officer, Mr. Ming Yang, of the effectiveness of the design and operation of our disclosure controls and procedures, as of March 31, ~~2016.~~2017. Based on that evaluation, Mr. Gao and Mr. Yang concluded that our disclosure controls and procedures were effective as of March 31, ~~2016.~~2017.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended March 31, ~~2016~~2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits and legal proceedings arising in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these, or other matters, may arise from time to time that may harm our business. Other than the legal proceedings set forth below, we are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

~~Dispute with Jie’an over Certain Capital Injection into Guizhou Taibang~~

In May 2007, a 91% majority of Guizhou Taibang’s shareholders approved a plan to raise additional capital from qualified strategic investors through the issuance of an additional 20,000,000 shares of Guizhou Taibang. The plan required all existing Guizhou Taibang shareholders to waive their rights of first refusal to subscribe for the additional shares. The remaining 9% minority shareholder of Guizhou Taibang’s shares, Guizhou Jie’an Company, or Jie’an, did not support the plan and did not waive its right of first refusal. In May 2007, Guizhou Taibang signed an Equity Purchase Agreement with certain alleged strategic investors (who concealed their background), pursuant to which such investors agreed to invest an aggregate of RMB51.0 million (approximately $7.9 million) in exchange for 21.4% of Guizhou Taibang’s equity interests. Such Equity Purchase Agreement was not approved or ratified by over two-thirds supermajority of Guizhou Taibang’s shareholders, which approval or ratification is required under the PRC Company Law. At the same time, as an existing shareholder, Jie’an also subscribed for 1,800,000 shares, representing its pro rata share of the 20,000,000 shares being offered. In total, Guizhou Taibang received RMB51.0 million (approximately $7.9 million) from the investors and RMB6.5 million (approximately $1.0 million) from Jie’an.

In December 2013, Jie’an brought a third lawsuit against Guizhou Taibang, requesting Guizhou Taibang to register 1.8 million shares under its name with the local AIC. In July 2014, the trial court denied Jie’an’s request to register such shares. Despite the denial of Jie’an’s share registration request, the trial court, however, in its ruling, ordered Guizhou Taibang to pay accumulated dividends of RMB13.8 million (approximately $2.1million) associated with these shares and the related interest expenses to Jie’an. Guizhou Taibang and Jie’an subsequently filed a cross-appeal. In December 2014, the appellate court ruled in favor of Jie’an supporting its request to register 1.8 million shares and ordered Guizhou Taibang to pay Jie’an its share of accumulated dividends of RMB18.3 million (approximately $2.8 million) associated with these shares plus the related interest expenses to Jie’an. In the first half of 2015, Guizhou Taibang paid an aggregate of RMB22.6 million (approximately $3.5 million) to the trial court held in escrow pending further appeal of this case. Guizhou Taibang appealed to the High Court of Guizhou in June 2015 which overruled the decision of the appellate court and remanded the case to the trial court for retrial in September 2015.

If the pending cases with Jie’an are ultimately ruled in Jie’an’s favor, our ownership interest in Guizhou Taibang may be diluted to 83% and Jie’an may be entitled to receive accumulated dividends of RMB18.3 million (approximately $2.8 million), being its claimed share of Guizhou Taibang’s accumulated dividend distributions associated with the 1.8 million shares, and the related interest expenses from Guizhou Taibang. As of March 31, 2016, Guizhou Taibang had maintained, on its balance sheet, payables to Jie’an in the amounts of RMB5.0 million (approximately $0.8 million) as received funds in respect of the 1.8 million shares in dispute, RMB1.4 million (approximately $0.2 million) for the over-paid subscription price paid by Jie’an and RMB3.8 million (approximately $0.6 million) for the accrued interest. As these cases are closely interlinked to the outcome of the disputes with certain individual investor described below, based on our PRC litigation counsel’s assessment, we do not expect Jie’an to prevail.

Dispute with Certain Individual Investor over Certain Capital Injection into Guizhou Taibang

In October 2010, the trial court denied such individual investor’s right as shareholder of Guizhou Taibang and his entitlement to share the dividends, which ruling was reaffirmed after a re-trial by the same trial court in December 2012. After such ruling, Guizhou Taibang attempted to return the originally received fund of RMB34.2 million (approximately ~~$5.3~~$5.0 million) to such investor by wiring the fund back to his bank account but was unable to do so due to the closure of his bank account. Another investor, however, accepted the returned fund of RMB11.2 million (approximately ~~$1.7~~$1.6 million) from Guizhou Taibang in November 2010. In 2013, the same individual investor appealed the case to the PRC Supreme Court, which also denied his claims for shareholder status in Guizhou Taibang and the related dividend distribution and accrued interest in September 2013. Such investor subsequently attempted to seek a re-trial by the PRC Supreme Court, which request was denied by the PRC Supreme Court in January 2014. He then applied to the PRC Supreme Procuratorate to request for a review of the PRC Supreme Court’s decision and seek an appeal by the PRC Supreme Procuratorate to the PRC Supreme Court for an ultimate re-trial on his behalf. In July 2015, the PRC Supreme Procuratorate rejected his request for review.

As of March 31 ~~2016,~~2017, Guizhou Taibang had maintained, on its balance sheet, payables to the ~~investors~~investor of RMB34.2 million (approximately ~~$5.3~~$5.0 million) as originally received funds from such individual investor in respect of the shares in dispute, ~~RMB18.1~~RMB21.0 million (approximately ~~$2.8~~$3.0 million) for the interest expenses, and RMB0.3 million (approximately $0.1 million) for the 1% penalty imposed by the Equity Purchase Agreement for any breach in the event that Guizhou Taibang is required to return the original investment amount to such investor.

ITEM 1A. RISK FACTORS.

As of the date of this filing, there have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K filed on February ~~25, 2016.~~23, 2017. We operate in a changing environment that involves numerous known and unknown risks and uncertainties that could materially affect our operations. The risks, uncertainties and other factors set forth in the above-referenced Annual Report on Form 10-K may cause our actual results, performances and achievements to be materially different from those expressed or implied by our forward-looking statements. If any of these risks or events occurs, our business, financial condition or results of operations may be adversely affected.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

We have not sold any equity securities during the three months ended March 31, ~~2016~~2017 that were not previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K that was filed during this period. No repurchases of our common stock were made during the three months ended March 31, ~~2016.~~2017.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

~~Disclosure pursuant to Section 13(r) of the Exchange Act~~None.

Pursuant to Section 13(r) of the Exchange Act, we may be required to disclose in our annual and quarterly reports to the SEC, whether we or any of our “affiliates” knowingly engaged in certain activities, transactions or dealings relating to Iran or with certain individuals or entities targeted by U.S. economic sanctions. Disclosure is generally required even where the activities, transactions or dealings were conducted in compliance with applicable law. Because the SEC defines the term “affiliate” broadly, it includes any entity under common “control” with us (and the term “control” is also construed broadly by the SEC).

The description of the activities below has been provided to us by Warburg Pincus LLC, or WP, affiliates of which: (i) beneficially own more than 10.0% of our outstanding common stock and/or are a member of our board of directors, (ii) beneficially own more than 10.0% of the equity interests of, and have the right to designate members of the board of directors of Santander Asset Management Investment Holdings Limited, or SAMIH. SAMIH may therefore be deemed to be under common “control” with us; however, this statement is not meant to be an admission that common control exists.

The disclosure below relates solely to activities conducted by SAMIH and its affiliates. The disclosure does not relate to any activities conducted by us or by WP and does not involve our or WP’s management. Neither we nor WP has had any involvement in or control over the disclosed activities, and neither we nor WP has independently verified or participated in the preparation of the disclosure. Neither we nor WP is representing as to the accuracy or completeness of the disclosure nor do we or WP undertake any obligation to correct or update it.

~~We understand that one or more SEC-reporting affiliates of SAMIH intends to disclose in its next annual or quarterly SEC report that:~~

(a) Santander UK plc (“Santander UK”) holds two frozen savings accounts and two frozen current accounts for three customers resident in the United Kingdom (“UK”) who are currently designated by the United States (“US”) under the Specially Designated Global Terrorist (“SDGT”) sanctions program. The accounts held by each customer were blocked after the customer’s designation and have remained blocked and dormant through the first quarter of 2016. Revenue generated by Santander UK on these accounts in the first quarter of 2016 was £3.67 whilst net profits in the first quarter of 2016 were negligible relative to the overall profits of Banco Santander, S.A.

(b) An Iranian national, resident in the UK, who is currently designated by the US under the Iranian Financial Sanctions Regulations (“IFSR”) and the Weapons of Mass Destruction Proliferators Sanctions Regulations, holds a mortgage with Santander UK that was issued prior to any such designation. No further drawdown has been made (or would be allowed) under this mortgage although Santander UK continues to receive repayment instalments. In the first quarter of 2016, total revenue generated by Santander UK in connection with the mortgage was £201.22 whilst net profits were negligible relative to the overall profits of Banco Santander, S.A. Santander UK does not intend to enter into any new relationships with this customer, and any disbursements will only be made in accordance with applicable sanctions. The same Iranian national also holds two investment accounts with Santander ISA Managers Limited. The funds within both accounts are invested in the same portfolio fund. The accounts have remained frozen during the first quarter of 2016. The investment returns are being automatically reinvested, and no disbursements have been made to the customer. Total revenue in the first quarter of 2016 generated by Santander UK in connection with the investment accounts was £4.89 whilst net profits in the first quarter of 2016 were negligible relative to the overall profits of Banco Santander, S.A.

(c) A UK national designated by the US under the SDGT sanctions program holds a Santander UK current account. The account remained in arrears through the first quarter of 2016 (£1,344.01 in debit) and is currently being managed by Santander UK Collections & Recoveries department.

(d) In addition, during the first quarter of 2016, Santander UK has identified an OFAC match on a power of attorney account. A party listed on the account is currently designated by the US under the SDGT and IFSR sanctions programs. During the first quarter of 2016, related revenue generated by Santander UK was £73.81 whilst net profits in the first quarter of 2016 were negligible relative to the overall profits of Banco Santander, S.A.

ITEM 6. EXHIBITS.

The list of exhibits in the Exhibit Index to this report is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May ~~4, 2016~~3, 2017	CHINA BIOLOGIC PRODUCTS, INC.


	By:	/s/ David (Xiaoying) Gao
		David (Xiaoying) Gao, Chief Executive Officer
		(Principal Executive Officer)

By:

/s/ Ming Yang

Ming Yang, Chief Financial Officer

(Principal Financial Officer and Principal

Accounting Officer)

EXHIBIT INDEX

Exhibit No.		Description
2.1		Agreement and Plan of Merger by and between China Biologic Products, Inc. and China Biologic Products Holdings, Inc. dated April 28, 2017 (incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K filed by the Company on April 28, 2017)
3.1		Second Amended and Restated Certificate of Incorporation of China Biologic Products, Inc. (incorporated by reference to Exhibit 3.1 of the Quarterly Report on Form 10-Q filed by the Company on August 5, 2014).
3.2		Third Amended and Restated Bylaws of China Biologic Products, Inc. (incorporated by reference to Exhibit 3.2 of the Quarterly Report on Form 10-Q filed by the Company on August 5, 2014).
31.1		Certifications of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certifications of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certifications of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certifications of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		Interactive data filed pursuant to Rule 405 of Regulation S-T

Delaware		75-2308816
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Large accelerated filerx	x	Accelerated filer	¨
Non-accelerated filer	¨~~(Do~~	(Do not check if a smaller reporting company)	Smaller reporting company	¨

Class of Securities		Shares Outstanding
Common Stock, $0.0001 par value		~~26,590,974~~27,201,477

~~PART I~~ ~~FINANCIAL INFORMATION~~

Item 1. Financial Statements	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	1213
Item 3. Quantitative and Qualitative Disclosures About Market Risk	1819
Item 4. Controls and Procedures	1920


~~PART II~~ ~~OTHER INFORMATION~~

Item 1. Legal Proceedings	2021
Item 1A. Risk Factors	21
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3. Defaults Upon Senior Securities	21
Item 4. Mine Safety Disclosures	21
Item 5. Other Information	2122
Item 6. Exhibits	22

Contents		Page
Unaudited Condensed Consolidated Balance Sheets		2
Unaudited Condensed Consolidated Statements of Comprehensive Income		3
Unaudited Condensed Consolidated Statements of Cash Flows		4
Notes to the Unaudited Condensed Consolidated Financial Statements		6

	Note	March 31, 2016			December 31, 2015
		USD			USD
ASSETS
Current Assets
Cash and cash equivalents			180,116,752			144,937,893
Time deposits			-			38,032,593
Accounts receivable, net of allowance for doubtful accounts	2		30,593,102			25,144,969
Inventories	3		130,877,257			126,395,312
Prepayments and other current assets, net of allowance for doubtful accounts			21,663,389			24,545,597
Deposits related to land use rights, current portion	5		10,307,682			10,056,200
Total Current Assets			373,558,182			369,112,564

Property, plant and equipment, net	4		115,500,723			105,364,251
Land use rights, net			24,932,269			23,576,300
Equity method investment			8,543,149			8,718,133
Loan receivable	6		46,431,000			39,834,173
Other non-current assets			3,199,391			4,861,075
Total Assets			572,164,714			551,466,496

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable			5,994,820			9,681,835
Other payables and accrued expenses			42,626,588			57,462,563
Income tax payable			8,226,534			4,510,986
Total Current Liabilities			56,847,942			71,655,384

Deferred income			4,420,053			4,525,867
Other liabilities			6,703,382			8,323,446
Total Liabilities			67,971,377			84,504,697

Stockholders’ Equity
Common stock:
par value $0.0001;
100,000,000 shares authorized;
28,845,678 and 28,835,053 shares issued at March 31, 2016 and December 31, 2015, respectively;
26,590,974 and 26,580,349 shares outstanding at March 31, 2016 and December 31, 2015, respectively			2,885			2,884

Additional paid-in capital			109,649,239			105,079,845
Treasury stock: 2,254,704 shares at March 31, 2016 and December 31, 2015, at cost			(56,425,094	)		(56,425,094	)

Retained earnings			359,901,349			333,704,094
Accumulated other comprehensive income			2,108,251			(18,605	)
Total equity attributable to China Biologic Products, Inc.			415,236,630			382,343,124

Noncontrolling interest			88,956,707			84,618,675

Total Stockholders’ Equity			504,193,337			466,961,799

Commitments and contingencies	6 and 11		-			-

Total Liabilities and Stockholders’ Equity			572,164,714			551,466,496

	Note	March 31, 2017			December 31, 2016
		USD			USD
ASSETS
Current Assets
Cash and cash equivalents			197,357,368			183,765,533
Accounts receivable, net of allowance for doubtful accounts	2		51,647,936			33,918,796
Inventories	3		166,380,493			156,412,674
Prepayments and other current assets, net of allowance for doubtful accounts			17,732,312			15,320,913
Total Current Assets			433,118,109			389,417,916

Property, plant and equipment, net	4		138,037,731			132,091,923
Land use rights, net			23,362,992			23,389,384
Equity method investment			11,582,725			10,614,755
Loan receivable	5		43,482,000			43,245,000
Other non-current assets			5,838,184			6,198,531
Total Assets			655,421,741			604,957,509

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Short-term bank loan	6		8,696,400			-
Accounts payable			6,570,475			6,158,601
Income tax payable			9,391,380			7,484,366
Other payables and accrued expenses	7		59,648,041			59,798,145
Total Current Liabilities			84,306,296			73,441,112

Deferred income			3,655,387			3,755,648
Other liabilities			6,602,255			6,623,926
Total Liabilities			94,563,938			83,820,686

Stockholders’ Equity
Common stock:
par value $0.0001;
100,000,000 shares authorized;
29,456,181 and 29,427,609 shares issued at March 31, 2017 and December 31, 2016, respectively;
27,201,477 and 27,172,905 shares outstanding at March 31, 2017 and December 31, 2016, respectively			2,946			2,943
Additional paid-in capital			113,630,172			105,459,610
Treasury stock: 2,254,704 shares at March 31, 2017 and December 31, 2016, at cost			(56,425,094	)		(56,425,094	)
Retained earnings			468,475,250			438,483,401
Accumulated other comprehensive loss			(22,903,225	)		(25,320,271	)
Total equity attributable to China Biologic Products, Inc.			502,780,049			462,200,589

Noncontrolling interest			58,077,754			58,936,234

Total Stockholders’ Equity			560,857,803			521,136,823

Commitments and contingencies	12		-			-

Total Liabilities and Stockholders’ Equity			655,421,741			604,957,509

		For the Three Months Ended							For the Three Months Ended
	Note	March 31, 2016			March 31, 2015			Note	March 31, 2017			March 31, 2016
		USD			USD				USD			USD
Sales	10		85,587,711			70,354,331		11		91,453,112			85,587,711
Cost of sales			34,043,435			24,461,575				32,215,473			34,043,435
Gross profit			51,544,276			45,892,756				59,237,639			51,544,276

Operating expenses
Selling expenses			1,227,670			1,950,688				3,807,552			1,227,670
General and administrative expenses			11,328,013			7,853,195				15,256,766			11,328,013
Research and development expenses			1,094,723			1,342,322				1,357,363			1,094,723
Income from operations			37,893,870			34,746,551				38,815,958			37,893,870

Other income (expenses)
Equity in loss of an equity method investee			(216,315	)		(95,067	)
Equity in income (loss) of an equity method investee										911,743			(216,315	)
Interest income			1,751,140			1,376,847				1,623,839			1,751,140
Interest expense			(88,550	)		(756,821	)			(62,510	)		(88,550	)
Total other income, net			1,446,275			524,959				2,473,072			1,446,275

Earnings before income tax expense			39,340,145			35,271,510
Income before income tax expense										41,289,030			39,340,145

Income tax expense	7		6,607,103			5,616,150		8		6,950,539			6,607,103

Net income			32,733,042			29,655,360				34,338,491			32,733,042

Less: Net income attributable to noncontrolling interest			6,535,787			6,492,888				4,346,642			6,535,787

Net income attributable to China Biologic Products, Inc.			26,197,255			23,162,472				29,991,849			26,197,255

Net income per share of common stock:	12
Earnings per share of common stock:								13
Basic			0.96			0.91				1.07			0.96
Diluted			0.94			0.87				1.06			0.94
Weighted average shares used in computation:	12							13
Basic			26,585,926			24,816,877				27,183,733			26,585,926
Diluted			27,126,838			26,066,786				27,465,414			27,126,838

Net income			32,733,042			29,655,360				34,338,491			32,733,042

Other comprehensive income:
Foreign currency translation adjustment, net of nil income taxes			2,569,752			(854,362	)			2,720,968			2,569,752

Comprehensive income			35,302,794			28,800,998				37,059,459			35,302,794

Less: Comprehensive income attributable to noncontrolling interest			6,978,683			6,455,112				4,650,562			6,978,683

Comprehensive income attributable to China Biologic Products, Inc.			28,324,111			22,345,886				32,408,897			28,324,111

	For the Three Months Ended						For the Three Months Ended
	March 31,			March 31,			March 31,			March 31,
	2016			2015			2017			2016
	USD			USD			USD			USD
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		32,733,042			29,655,360			34,338,491			32,733,042
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		2,267,623			2,201,020			3,052,133			2,267,623
Amortization		216,971			208,237			428,028			216,971
Loss on sale of property, plant and equipment		90,261			60,540			63,425			90,261
Allowance for doubtful accounts - accounts receivable, net		-			23,656
Allowance for doubtful accounts - other receivables and prepayments		-			796
Allowance (reversal) for doubtful accounts - accounts receivable, net								(10,168	)		-
Write-down of obsolete inventories		59,560			4,576			-			59,560
Deferred tax (benefit) expense		(887,184	)		502,563
Deferred tax expense (benefit)								266,804			(887,184	)
Share-based compensation		4,569,395			1,969,973			8,072,065			4,569,395
Equity in loss of an equity method investee		216,315			95,067
Equity in (income) loss of an equity method investee								(911,743	)		216,315
Change in operating assets and liabilities:
Accounts receivable		(5,267,385	)		(9,178,096	)		(17,570,606	)		(5,267,385	)
Prepayment and other current assets		2,554,632			(1,638,307	)
Inventories		(3,869,727	)		(1,889,100	)		(9,130,101	)		(3,869,727	)
Prepayments and other current assets								(2,281,491	)		2,554,632
Accounts payable		(3,696,808	)		482,077			378,931			(3,696,808	)
Income tax payable								1,869,988			3,654,815
Other payables and accrued expenses		(8,282,055	)		(5,672,053	)		(5,411,627	)		(8,282,055	)
Deferred income		(127,705	)		(74,749	)		(121,102	)		(127,705	)
Income tax payable		3,654,815			(209,688	)
Net cash provided by operating activities		24,231,750			16,541,872			13,033,027			24,231,750

CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for property, plant and equipment		(13,672,613	)		(8,478,369	)		(8,936,981	)		(13,672,613	)
Payment for intangible assets and land use rights		(967,636	)		-
Payment for land use rights								(151,326	)		(967,636	)
Refund of deposits related to land use right		994,815			-			-			994,815
Proceeds from sale of property, plant and equipment and land use rights		63,397			6,219
Proceeds from sale of property, plant and equipment								3,626			63,397
Long-term loan lent to a third party		(6,331,518	)		-			-			(6,331,518	)
Net cash used in investing activities		(19,913,555	)		(8,472,150	)		(9,084,681	)		(19,913,555	)

	March 31, 2017		December 31, 2016
	USD		USD
PRC, excluding Hong Kong		185,589,171		171,539,309
U.S.		10,971,081		11,539,131
Total		196,560,252		183,078,440

	For the Three Months Ended					For the Three Months Ended
	March 31, 2016		March 31, 2015			March 31, 2017			March 31, 2016
	USD		USD			USD			USD
Beginning balance		443,624		433,948			533,596			443,624
Provisions		-		23,656
Recoveries		-		-			(10,168	)		-
Write-offs		-		-
Foreign currency translation adjustment		2,218		(258	)		2,947			2,218
Ending balance		445,842		457,346			526,375			445,842

	March 31, 2017		December 31, 2016
	USD		USD
Payables to a potential investor⁽¹⁾		8,042,523		7,941,013
Payable to Guizhou Eakan Investing Corp.⁽²⁾		2,110,326		2,098,824
Salaries and bonuses payable		10,642,788		16,740,846
Accruals for sales commission and promotion fee		5,873,077		4,391,160
Dividends payable to noncontrolling interest⁽³⁾		13,493,334		7,952,467
Payables for construction in progress		4,810,353		5,364,441
Other tax payables		2,518,384		1,918,248
Advance from customers		1,816,158		3,976,832
Deposits received		2,856,823		2,541,420
Others		7,484,275		6,872,894
Total		59,648,041		59,798,145

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years		Aggregate Intrinsic Value
			USD				USD
Outstanding at December 31, 2015		651,897		10.44		5.24		86,064,461
Granted		-
Exercised		-
Forfeited and expired		-
Outstanding at March 31, 2016		651,897		10.44		4.99		67,824,383

Vested and expected to vest		651,897		10.44		4.99		67,824,383
Exercisable at March 31, 2016		530,647		10.57		4.67		55,137,996

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years		Aggregate Intrinsic Value
				USD				USD
Outstanding as of December 31, 2016		314,491			10.32		3.84		30,568,083
Granted		-
Exercised		(10,000	)		9.85				(888,100	)
Forfeited and expired		-
Outstanding as of March 31, 2017		304,491			10.34		3.53		27,341,194

Vested as of March 31, 2017		304,491			10.34		3.53		27,341,194
Exercisable as of March 31, 2017		304,491			10.34		3.53		27,341,194

	Number of nonvested shares			Grant date weighted average fair value		Number of nonvested shares			Grant date weighted average fair value
				USD					USD
Outstanding at December 31, 2015		669,100			77.49
Outstanding at December 31, 2016							912,650			104.51
Granted		31,800			114.42		25,800			98.20
Vested		(10,625	)		41.81		(18,572	)		79.48
Forfeited		-			-		-			-
Outstanding at March 31, 2016		690,275			79.74
Outstanding at March 31, 2017							919,878			104.84