Market Overview

Leading Investor Group Issues Statement Following China Biologic's Dilutive Private Placement of Shares


A consortium composed of Mr. David (Xiaoying) Gao, GL Capital Group,
Bank of China Group Investment Limited and CDH Investments (the
"Consortium") today issued the following statement following China
Biologic Products Holdings, Inc.'s ("China Biologic" or the "Company")
(NASDAQ:CBPO) decision to conduct a dilutive private placement and
reject the Consortium's non-binding proposal to acquire all of the
outstanding common shares of the Company for US$118.00 per share in
cash. The Consortium's proposal represented an approximate 30% premium
to China Biologic's closing share price on August 16, 2018, the last
trading day before its proposal was conveyed.

"We are deeply disappointed that China Biologic's Board has rejected our
compelling proposal to deliver immediate and significant value to all
shareholders. Instead of meaningfully engaging with us, the Board has
hastily arranged a private placement of shares to a select handful of
investors, including a fund affiliated with the Chairman, at a steep
discount to the price that we proposed, substantially diluting the
remainder of the Company's shareholders. We will evaluate all our
options, including legal action, to hold the Board accountable and
ensure that they act in the best interests of all shareholders."

Goldman Sachs is acting as financial advisor to the Consortium, Skadden,
Arps, Slate, Meagher & Flom LLP is acting as its U.S. legal advisor, and
Conyers, Dill & Pearman is acting as its Cayman Islands legal advisor.

Forward-Looking Statements

This communication may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to, statements
regarding the Consortium's offer to acquire the Company, its financing
of the proposed transaction, its expected future performance (including
expected results of operations, financial condition, strategy and
plans). Forward-looking statements may be identified by the use of the
words "anticipates," "expects," "intends," "plans," "should," "could,"
"would," "may," "will," "believes," "estimates," "potential," "target,"
"opportunity," "tentative," "positioning," "designed," "create,"
"predict," "project," "seek," "ongoing," "upside," "increases" or
"continue" and variations or similar expressions. These statements are
based upon the current expectations and beliefs of the Consortium and
are subject to numerous assumptions, risks and uncertainties that change
over time and could cause actual results to differ materially from those
described in the forward-looking statements. These assumptions, risks
and uncertainties include, but are not limited to, assumptions, risks
and uncertainties discussed in the Company's most recent annual or
quarterly report filed with the Securities and Exchange Commission (the
"SEC") and assumptions, risks and uncertainties relating to the
Consortium's proposed acquisition, which will be detailed from time to
time in the Company's and/or the Consortium's filings with the SEC,
which factors are incorporated herein by reference.

Important factors that could cause actual results to differ materially
from the forward-looking statements we make in this communication are
set forth in other reports or documents that we file from time to time
with the SEC and, and include, but are not limited to:

  • the ultimate outcome of any possible transaction between the
    Consortium and the Company;
  • if a transaction between the Consortium and the Company were to occur,
    the ultimate outcome and the effects of the transaction, including the
    Company's future financial condition, operating results, strategy and
  • ability to obtain regulatory approvals and meet other closing
    conditions to the transaction, including all necessary approvals from
    the shareholders of the Company, on a timely basis;
  • the availability and access of funds sufficient to meet our equity and
    debt financing required to consummate the transaction in a timely
    manner; and
  • the risks and uncertainties detailed by the Company with respect to
    its business as described in its reports and documents filed with the

All forward-looking statements attributable to us or any person acting
on our behalf are expressly qualified in their entirety by this
cautionary statement. Readers are cautioned not to place undue reliance
on any of these forward-looking statements. These forward-looking
statements speak only as of the date hereof. The Consortium undertakes
no obligation to update any of these forward-looking statements to
reflect events or circumstances after the date of this communication or
to reflect actual outcomes.

Additional Information

This communication does not constitute an offer to buy or solicitation
of an offer to sell any securities. This communication relates to a
preliminary non-binding proposal which the Consortium has made for an
acquisition transaction with the Company. In furtherance of the
Consortium's acquisition proposal and subject to future developments,
the Consortium (and, if a negotiated transaction is agreed, the Company)
may file one or more proxy statements or other documents with the SEC.
This communication is not a substitute for any proxy statement or other
documents the Consortium and/or the Company may file with the SEC in
connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS
THE PROPOSED TRANSACTION. Any definitive proxy statement(s) (if and when
available) will be mailed to stockholders of the Company, as applicable.
Investors and security holders will be able to retrieve and review, free
of charge, these documents (if and when available) and other documents
filed with the SEC by the Consortium and/or the Company through the web
site maintained by the SEC at

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