2Q19 Added 22,908 New
Subscribers
Revenues Up 5.3% YoY to RMB247.1 Million ($36.0
Million)
Operating Income Up 37.3%
YoY to RMB104.8 Million
($15.3 Million)
Non-GAAP Operating Income Up 8.7% YoY to
RMB118.2 Million ($17.2 Million)
Conference Call to be Held on November 28, 2018 at 8:00
a.m. ET
HONG KONG, Nov. 27, 2018 /PRNewswire/ -- Global Cord Blood
Corporation (NYSE: CO) ("GCBC" or the "Company"), China's leading provider of cord blood
collection, laboratory testing, hematopoietic stem cell processing
and stem cell storage services, today announced its unaudited
financial results for the second quarter and first half of fiscal
year 2019 ended September 30,
2018.
Second Quarter of Fiscal 2019 Highlights
- Revenues increased by 5.3% year over year ("YoY") to
RMB247.1 million ($36.0 million).
- New subscribers and accumulated subscriber base were 22,908 and
704,690[1],
respectively.
- Gross profit increased by 5.8% YoY to RMB199.8 million ($29.1
million).
- Gross margin increased from 80.5% in the prior year period to
80.9%.
- Operating income increased by 37.3% YoY to RMB104.8 million ($15.3
million).
- Operating income before depreciation and amortization and
share-based compensation expenses[2] ("non-GAAP operating income")
increased by 8.7% YoY to RMB118.2
million ($17.2
million).
- Net income attributable to the Company's shareholders was
RMB65.1 million ($9.5 million) compared to RMB67.6 million in the prior year period, after
taking into account the unrealized holding loss of RMB30.9 million ($4.5
million) for equity securities, or more commonly known as
mark-to-market loss, following the adoption of a new accounting
standard[3].
- Net cash provided by operating activities for the second
quarter of fiscal 2019 was RMB211.6
million ($30.8 million).
First Half of Fiscal 2019 Highlights
- Revenues for the first half of fiscal 2019 increased by 4.8%
YoY to RMB480.9 million ($70.0 million).
- New subscriber sign-up was 43,509, and accumulated subscriber
base expanded to 704,690[1].
- Gross profit increased by 6.0% YoY to RMB390.5 million ($56.9
million).
- Operating income increased by 25.7% YoY to RMB200.2 million ($29.2
million).
- Non-GAAP operating income[2] increased by 12.8% YoY to
RMB226.7 million ($33.0 million).
- Net income attributable to the Company's shareholders increased
to RMB138.7 million ($20.2 million) from RMB136.7 million in the prior year period.
- Net cash provided by operating activities for the first half of
fiscal 2019 was RMB386.9 million
($56.3 million).
"We are glad to see the new subscriber number increase by 11.2%
in the second quarter from the previous quarter, which demonstrates
the success of the measures we took under current market
conditions. As we continue to execute on our strategies, we remain
cautiously optimistic about our growth prospects in the second half
of the year, which are supported by the Chinese government
announcing business-friendly policies amid escalating trade
tensions between the U.S. and China." said Ms. Ting Zheng, Chairperson and
Chief Executive Officer of GCBC. "While keeping our focus on
nurturing and penetrating existing domestic markets, we will
continue to explore potential development opportunities to expand
revenue sources or save costs in order to consolidate our position
as the industry leader."
Summary - Second Quarter and First Half Ended September 30, 2017 and 2018
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
(in
thousands)
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
Revenues
|
|
234,572
|
|
247,104
|
35,979
|
|
458,794
|
|
480,925
|
70,025
|
Gross
Profit
|
|
188,928
|
|
199,841
|
29,097
|
|
368,368
|
|
390,504
|
56,859
|
Operating
Income[4]
|
76,328
|
|
104,766
|
15,253
|
|
159,289
|
|
200,208
|
29,151
|
Unrealized Holding
Loss For
|
|
|
|
|
|
|
|
|
|
Equity
Securities[3]
|
-
|
|
(30,945)
|
(4,506)
|
|
-
|
|
(40,266)
|
(5,863)
|
Net Income
Attributable to
the Company's
Shareholders
|
|
67,595
|
|
65,114
|
9,479
|
|
136,730
|
|
138,656
|
20,188
|
Earnings per
Share[5]
|
|
|
|
|
|
|
|
|
|
(RMB/US$)
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
0.60
|
|
0.54
|
0.08
|
|
1.22
|
|
1.15
|
0.17
|
–
Diluted
|
|
0.60
|
|
0.53
|
0.08
|
|
1.22
|
|
1.14
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
Revenues Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
Processing Fees and
Other
|
|
65.7%
|
|
|
|
|
|
|
|
|
Services
|
|
61.4%
|
|
65.6%
|
|
61.4%
|
|
Storage
Fees
|
|
34.3%
|
|
38.6%
|
|
|
34.4%
|
|
38.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
23,647
|
|
22,908
|
|
|
46,170
|
|
43,509
|
|
Total
Accumulated
|
|
|
|
|
|
|
|
|
|
|
Subscribers (persons)
|
620,680
|
|
704,690[1]
|
|
|
620,680
|
|
704,690[1]
|
|
Summary - Selected Cash Flow Statement Items
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
(in
thousands)
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
Net cash provided
by
operating activities
|
|
215,293
|
|
211,617
|
30,812
|
|
441,710
|
|
386,934
|
56,338
|
Net cash used in
investing activities
|
|
(11,354)
|
|
(8,822)
|
(1,285)
|
|
(22,017)
|
|
(15,948)
|
(2,323)
|
Net cash used in
financing activities
|
|
-
|
|
(18,173)
|
(2,646)
|
|
-
|
|
(18,173)
|
(2,646)
|
Second Quarter of Fiscal 2019 Financial Results
REVENUES. Revenues increased by 5.3% YoY to
RMB247.1 million ($36.0 million) in the second quarter of fiscal
2019. The increase was mainly driven by the Company's continued
enlargement of its total subscriber base.
Revenues generated from storage fees increased by 18.5% YoY to
RMB95.4 million ($13.9 million) in the reporting quarter. The
accumulated subscriber base as of September
30, 2018, was 704,690[1]. Storage fee revenues
accounted for 38.6% of total revenues compared to 34.3% in the
prior year period.
Revenues generated from processing fees and other services in
the second quarter was RMB151.7
million ($22.1 million).
22,908 new subscriber sign-ups were recorded during the reporting
quarter. The market continued to be challenging this quarter, yet,
with the Company's continued efforts, the new subscriber number
increased by 11.2% quarter over quarter ("QoQ"). Revenues generated
from processing fees accounted for 61.4% of total revenues compared
to 65.7% in the prior year period.
GROSS PROFIT. Gross profit for the second quarter
increased by 5.8% YoY to RMB199.8
million ($29.1 million).
Rising raw materials cost was offset by the economy of scale from a
higher contribution from storage fees. Gross margin as a result
improved to 80.9% from 80.5% in the prior year period.
OPERATING INCOME. Operating income increased by
37.3% YoY to RMB104.8 million
($15.3 million), which was fueled by
modest margin expansion and the absence of share-based compensation
expense, as no share-based compensation expense was recognized
since April 1, 2018. Operating income
also improved by 9.8% QoQ. As a result, operating margin increased
to 42.4%. Depreciation and amortization expenses for the second
quarter increased moderately to RMB13.4
million ($2.0 million), from
RMB12.4 million of the same period
last year. In the prior year period, there was RMB20.1 million in share-based compensation
expense whereas no such expense occurred in the current quarter.
Non-GAAP operating income[2] increased by 8.7% YoY to
RMB118.2 million ($17.2 million).
Sales and Marketing
Expenses. Sales and marketing expenses decreased by 8.3%
YoY to RMB51.5 million ($7.5 million) as no share-based compensation
expense were recognized since April 1,
2018. Also, the Company has been increasingly prudent and
selective when deploying its marketing budget, and such reduction
led to a YoY and QoQ decline in marketing and promotion expense.
Sales and marketing expenses as a percentage of revenues decreased
to 20.8% from 23.9% of the same quarter last year.
General and Administrative
Expenses. During the second quarter, general and
administrative expenses decreased by 24.2% YoY to RMB40.0 million ($5.8
million), which was mainly driven by the absence of
share-based compensation expense. General and administrative
expenses were down 2.5% QoQ as the Company attempted to keep costs
under control. As a result, general and administrative expenses as
a percentage of revenues declined to 16.2% from 22.5% in the same
quarter of the previous year.
OTHER INCOME AND EXPENSES.
Unrealized holding loss for
equity securities. In the reporting period, RMB30.9 million ($4.5
million) in unrealized holding loss for equity securities,
or more commonly known as mark-to-market loss, mainly attributable
to the investments in Cordlife Group Limited ("CGL"), was
recognized as other expenses under the new accounting standard,
whereas such loss of RMB18.6 million
was recorded as other comprehensive loss in the prior year
period[3].
Dividend income.
During the second quarter, the Company received RMB1.0 million ($0.1
million) dividend income from the Company's equity
investments in CGL.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. As the increase in operating income was
impacted by the mark-to-market loss, income before income tax for
the second quarter decreased by 2.6% YoY to RMB81.1 million ($11.8
million). Income tax expense for the second quarter was
RMB14.9 million ($2.2 million) compared to RMB14.5 million in the prior year period. Net
income attributable to the Company's shareholders for the second
quarter decreased by 3.7% YoY to RMB65.1
million ($9.5 million). Net
margin for the second quarter was 26.4%, down by 2.4 percentage
points compared to the same quarter last year.
EARNINGS PER SHARE[5]. Basic and diluted
earnings per ordinary share for the second quarter of fiscal 2019
were RMB0.54 ($0.08) and RMB0.53
($0.08) compared to RMB0.60 in the prior year period.
First Half of Fiscal 2019 Financial Results
For the first half of fiscal year 2019, total revenues increased
by 4.8% YoY to RMB480.9 million
($70.0 million). The increase was
mainly attributable to an increase in the Company's storage fee
revenues from its accumulated subscriber base. Revenues from
storage fees increased by 17.9% YoY to RMB185.9 million ($27.1
million), and revenues from processing fees and other
services were down by 2.0% YoY to RMB295.0
million ($42.9 million). Gross
profit increased by 6.0% YoY to RMB390.5
million ($56.9 million).
Operating income increased by 25.7% YoY to RMB200.2 million ($29.2
million). Non-GAAP operating income[2] increased by 12.8% YoY to
RMB226.7 million ($33.0 million). Net income attributable to the
Company's shareholders improved to RMB138.7
million ($20.2 million) from
RMB136.7 million in the prior year
period. Basic and diluted earnings per share[5] attributable to ordinary shares
were RMB1.15 ($0.17) and RMB1.14
($0.17), respectively, compared to
RMB1.22 in the same period last
year. Net cash provided by operating activities in the first
half of fiscal 2019 was RMB386.9
million ($56.3 million)
compared to RMB441.7 million in the
prior year period.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on
Wednesday, November 28, 2018, to
discuss its financial performance and give a brief overview of the
Company's recent developments, followed by a question and answer
session. Interested parties can access the audio webcast through
the Company's IR website at http://ir.globalcordbloodcorp.com. A
replay of the webcast will be accessible two hours after the
conference call and available for three weeks at the same URL
above. Listeners can also access the call by dialing 1-646-722-4977
or 1-855-824-5644 for US callers, or +852-3027-6500 for
Hong Kong callers, access code:
68320201#.
[1] During the
three months and six months ended September 30, 2018, 22,908 and
43,509 new subscribers were recruited, respectively. The Company
reclassified 299 and 437 private cord blood units as donated cord
blood units during the three months and six months ended September
30, 2018 after the Company determined that the recoverability of
these prior private cord blood banking subscribers was low.
Therefore, the Company terminated their subscription services
according to the subscription contracts and these units are being
treated as if they were donated cord blood units and will be part
of the Company's non-current inventories. Hence, the net
accumulated subscriber base was 704,690 as of September 30,
2018.
|
[2] See exhibit 3
of this press release for a reconciliation of non-GAAP operating
income to exclude the non-cash items related to the depreciation
and amortization and share-based compensation expenses to the
comparable financial measure prepared in accordance with U.S.
generally accepted accounting principles ("U.S. GAAP").
|
[3]
Unrealized holding loss for equity securities was
recognized as other expenses instead of other comprehensive losses
as practiced previously because of the adoption of Accounting
Standards Update No. 2016-01 since April 1, 2018. During the three
months ended September 30, 2017 and 2018, unrealized holding loss
for equity securities was RMB18.6 million and RMB30.9 million ($4.5
million) respectively.
|
[4] The reported
operating income for the three months and six months ended
September 30, 2017 and 2018 included the following:
(i) Depreciation and
amortization expenses for the three months ended September 30, 2017
and 2018 were RMB12.4 million and RMB13.4 million ($2.0 million).
Depreciation and amortization expenses for the six months ended
September 30, 2017 and 2018 were RMB25.1 million and RMB26.5
million ($3.9 million); and
(ii) For the three and six months
ended September 30, 2017, share-based compensation expenses related
to the Company's restricted share units ("RSUs") scheme were
RMB20.1 million and RMB16.6 million respectively, whereas no such
expense or reversal was recorded in the current quarter since the
RSUs were fully vested in the quarter ended March 31,
2018.
|
[5] Taking into
account the 7,080,000 shares (related to the RSU scheme) issued and
deposited to a trust sponsored and funded by the Company, in
addition to 113,524,742 outstanding shares for the three months and
six months ended September 30, 2017, basic and diluted earnings per
ordinary share would be RMB0.56 and RMB1.15 for the three and six
months ended September 30, 2017. During the reporting quarter,
726,333 scrip dividend shares were issued. As a result, 121,687,974
and 121,551,075 shares were issued and outstanding as of September
30, 2018.
|
Use of Non-GAAP Financial Measures
GAAP results for the three months and six months ended
September 30, 2018, include non-cash
items related to the depreciation and amortization and share-based
compensation expenses. To supplement the Company's unaudited
condensed consolidated financial statements presented on a U.S.
GAAP basis, the Company has provided adjusted financial information
excluding the impact of these items in this press release. The
non-GAAP financial measure represents non-GAAP operating income.
Such adjustment is a departure of U.S. GAAP; however, the Company's
management believes that these adjusted measures provide investors
with a better understanding of how the results relate to the
Company's historical performance. Also, management uses non-GAAP
operating income as a measurement tool for evaluating actual
operating performance compared to budget and prior periods. These
adjusted measures should not be considered an alternative to
operating income, or any other measure of financial performance or
liquidity presented in accordance with U.S. GAAP. These measures
are not necessarily comparable to a similarly titled measure of
another company. A reconciliation of the adjustments to U.S. GAAP
results appears in exhibit 3 accompanying this press release. This
additional adjusted information is not meant to be considered in
isolation or as a substitute for U.S. GAAP financials. The adjusted
financial information that the Company provides also may differ
from the adjusted information provided by other companies.
About Global Cord Blood Corporation
Global Cord Blood Corporation is the first and largest umbilical
cord blood banking operator in China in terms of geographical coverage and
the only cord blood banking operator with multiple licenses.
Under current PRC government regulations, only one licensed cord
blood banking operator is permitted to operate in each licensed
region and no new licenses will be granted before 2020 in addition
to the seven licenses authorized as of today. Global Cord
Blood Corporation provides cord blood collection, laboratory
testing, hematopoietic stem cell processing, and stem cell storage
services. For more information, please visit our website at
http://www.globalcordbloodcorp.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. These
statements relate to future events or the Company's future
financial performance. The Company has attempted to identify
forward-looking statements by terminology including "anticipates",
"believes", "expects", "can", "continue", "could", "estimates",
"intends", "may", "plans", "potential", "predict", "should" or
"will" or the negative of these terms or other comparable
terminology. These statements are only predictions, uncertainties
and other factors may cause the Company's actual results, levels of
activity, performance or achievements to be materially different
from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking
statements. The information in this press release is not intended
to project future performance of the Company. Although the Company
believes that the expectations reflected in the forward-looking
statements are reasonable, the Company does not guarantee future
results, levels of activity, performance or achievements. The
Company expectations are as of the date this press release is
issued, and the Company does not intend to update any of the
forward-looking statements after the date this press release is
issued to conform these statements to actual results, unless
required by law.
The forward-looking statements included in this press release
are subject to risks, uncertainties and assumptions about the
Company's businesses and business environments. These statements
reflect the Company's current views with respect to future events
and are not a guarantee of future performance. Actual results of
the Company's operations may differ materially from information
contained in the forward-looking statements as a result of risk
factors some of which include, among other things: continued
compliance with government regulations regarding cord blood banking
in the People's Republic of China,
or PRC and any other jurisdiction in which the Company conducts its
operations; changing legislation or regulatory environments in the
PRC and any other jurisdiction in which the Company conducts its
operations; the acceptance by subscribers of the Company's
different pricing and payment options and reaction to the
introduction of the Company's premium-quality pricing strategy;
demographic trends in the regions of the PRC in which the Company
is the exclusive licensed cord blood banking operator; labor and
personnel relations; the existence of a significant shareholder
able to influence and direct the corporate policies of the Company;
credit risks affecting the Company's revenue and profitability;
changes in the healthcare industry, including those which may
result in the use of stem cell therapies becoming redundant or
obsolete; the Company's ability to effectively manage its growth,
including maintaining effective controls and procedures and
attracting and retaining key management and personnel; changing
interpretations of generally accepted accounting principles; the
availability of capital resources, including in the form of capital
markets financing opportunities, in light of industry developments
affecting issuers that have pursued a "reverse merger" with an
operating company based in China,
the presence of a new majority shareholder, international pressure
on trade and currency against the PRC and its potential impact on
the PRC consumer behavior, as well as general economic conditions;
and other relevant risks detailed in the Company's filings with the
Securities and Exchange Commission in the
United States.
This announcement contains translations of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars as of and for the periods ending
September 30, 2018 were made at the
noon buying rate of RMB6.8680 to
$1.00 on September 28, 2018 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
Global Cord Blood Corporation makes no representation that the
Renminbi or U.S. dollar amounts referred to in this press release
could have been or could be converted into U.S. dollars or
Renminbi, at any particular rate or at all.
For more information, please contact:
Global Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@globalcordbloodcorp.com
ICR, Inc.
William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com
EXHIBIT
1
|
|
GLOBAL CORD BLOOD
CORPORATION
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
As of March 31, and
September 30, 2018
|
|
|
|
|
|
|
|
March
31,
|
|
September
30,
|
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands
except share data)
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
4,250,610
|
|
4,611,250
|
|
671,410
|
|
Accounts receivable,
less allowance for doubtful accounts
|
|
|
|
|
|
|
(March 31,
2018: RMB58,227; September 30, 2018:
|
|
|
|
|
|
|
RMB70,817
(US$10,312))
|
107,818
|
|
104,709
|
|
15,244
|
|
Inventories
|
27,718
|
|
32,538
|
|
4,738
|
|
Prepaid expenses and
other receivables
|
22,276
|
|
25,582
|
|
3,725
|
|
Total current
assets
|
4,408,422
|
|
4,774,079
|
|
695,117
|
|
Property, plant and
equipment, net
|
552,960
|
|
543,451
|
|
79,128
|
|
Non-current
deposits
|
233,115
|
|
256,457
|
|
37,341
|
|
Non-current accounts
receivable, less allowance for doubtful
|
|
|
|
|
|
|
accounts
(March 31, 2018: RMB69,713; September 30,
|
|
|
|
|
|
|
2018:
RMB70,682 (US$10,291))
|
101,809
|
|
97,798
|
|
14,240
|
|
Inventories
|
71,758
|
|
74,021
|
|
10,778
|
|
Intangible assets,
net
|
102,065
|
|
99,755
|
|
14,525
|
|
Investment in equity
securities
|
153,882
|
|
126,477
|
|
18,415
|
|
Other
investment
|
189,129
|
|
189,129
|
|
27,538
|
|
Deferred tax
assets
|
31,295
|
|
36,413
|
|
5,302
|
|
Total
assets
|
5,844,435
|
|
6,197,580
|
|
902,384
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
11,372
|
|
21,582
|
|
3,142
|
|
Accrued expenses and
other payables
|
73,023
|
|
83,684
|
|
12,184
|
|
Deferred
revenue
|
366,373
|
|
387,951
|
|
56,487
|
|
Income tax
payable
|
17,407
|
|
18,494
|
|
2,693
|
|
Total current
liabilities
|
468,175
|
|
511,711
|
|
74,506
|
|
Non-current deferred
revenue
|
1,874,014
|
|
1,997,270
|
|
290,808
|
|
Other non-current
liabilities
|
362,876
|
|
386,920
|
|
56,337
|
|
Deferred tax
liabilities
|
20,628
|
|
20,148
|
|
2,934
|
|
Total
liabilities
|
2,725,693
|
|
2,916,049
|
|
424,585
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders'
equity of Global Cord Blood
|
|
|
|
|
|
|
Corporation
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
|
-
US$0.0001 par value, 250,000,000 shares authorized,
|
|
|
|
|
|
|
120,961,641 and
120,824,742 shares issued and
|
|
|
|
|
|
|
outstanding as of March
31, 2018 and 121,687,974
|
|
|
|
|
|
|
and 121,551,075 shares
issued and outstanding
|
|
|
|
|
|
|
as of September 30,
2018
|
83
|
|
83
|
|
12
|
|
Additional paid-in
capital
|
2,053,866
|
|
2,101,582
|
|
305,996
|
|
Treasury stock, at
cost (March 31 and September 30,
|
|
|
|
|
|
|
2018: 136,899 shares,
respectively)
|
(2,815)
|
|
(2,815)
|
|
(410)
|
|
Accumulated other
comprehensive losses
|
(54,654)
|
|
(79,493)
|
|
(11,575)
|
|
Retained
earnings
|
1,116,873
|
|
1,254,755
|
|
182,695
|
|
Total equity
attributable to Global Cord Blood
|
|
|
|
|
|
|
Corporation
|
3,113,353
|
|
3,274,112
|
|
476,718
|
|
Non-controlling
interests
|
5,389
|
|
7,419
|
|
1,081
|
|
Total
equity
|
3,118,742
|
|
3,281,531
|
|
477,799
|
|
Total liabilities
and equity
|
5,844,435
|
|
6,197,580
|
|
902,384
|
|
EXHIBIT
2
|
|
GLOBAL CORD BLOOD
CORPORATION
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
For the Three Months
and Six Months Ended September 30, 2017 and 2018
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
234,572
|
|
247,104
|
|
35,979
|
|
458,794
|
|
480,925
|
|
70,025
|
|
Direct costs
|
|
(45,644)
|
|
(47,263)
|
|
(6,882)
|
|
(90,426)
|
|
(90,421)
|
|
(13,166)
|
|
Gross
profit
|
|
188,928
|
|
199,841
|
|
29,097
|
|
368,368
|
|
390,504
|
|
56,859
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(3,664)
|
|
(3,590)
|
|
(523)
|
|
(6,343)
|
|
(6,381)
|
|
(929)
|
|
Sales and
marketing
|
|
(56,152)
|
|
(51,488)
|
|
(7,497)
|
|
(99,602)
|
|
(102,903)
|
|
(14,983)
|
|
General and
administrative
|
|
(52,784)
|
|
(39,997)
|
|
(5,824)
|
|
(103,134)
|
|
(81,012)
|
|
(11,796)
|
|
Total operating
expenses
|
|
(112,600)
|
|
(95,075)
|
|
(13,844)
|
|
(209,079)
|
|
(190,296)
|
|
(27,708)
|
|
Operating
income
|
|
76,328
|
|
104,766
|
|
15,253
|
|
159,289
|
|
200,208
|
|
29,151
|
|
Other
income/(expenses), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
5,790
|
|
6,405
|
|
933
|
|
10,617
|
|
12,103
|
|
1,762
|
|
Interest
expense
|
|
-
|
|
-
|
|
-
|
|
(3,257)
|
|
-
|
|
-
|
|
Foreign currency
exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gains/(losses)
|
|
110
|
|
(49)
|
|
(7)
|
|
111
|
|
(75)
|
|
(11)
|
|
Unrealized holding loss
for equity
securities
|
|
-
|
|
(30,945)
|
|
(4,506)
|
|
-
|
|
(40,266)
|
|
(5,863)
|
|
Dividend
income
|
|
-
|
|
976
|
|
142
|
|
-
|
|
976
|
|
142
|
|
Others
|
|
993
|
|
(56)
|
|
(8)
|
|
2,142
|
|
(815)
|
|
(119)
|
|
Total other
income/(expenses),
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
|
|
6,893
|
|
(23,669)
|
|
(3,446)
|
|
9,613
|
|
(28,077)
|
|
(4,089)
|
|
Income before income
tax
|
|
83,221
|
|
81,097
|
|
11,807
|
|
168,902
|
|
172,131
|
|
25,062
|
|
Income tax
expense
|
|
(14,525)
|
|
(14,921)
|
|
(2,173)
|
|
(30,246)
|
|
(31,445)
|
|
(4,578)
|
|
Net
income
|
|
68,696
|
|
66,176
|
|
9,634
|
|
138,656
|
|
140,686
|
|
20,484
|
|
Net income attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(1,101)
|
|
(1,062)
|
|
(155)
|
|
(1,926)
|
|
(2,030)
|
|
(296)
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Cord Blood
Corporation's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
|
67,595
|
|
65,114
|
|
9,479
|
|
136,730
|
|
138,656
|
|
20,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.60
|
|
0.54
|
|
0.08
|
|
1.22
|
|
1.15
|
|
0.17
|
|
-
Diluted
|
|
0.60
|
|
0.53
|
|
0.08
|
|
1.22
|
|
1.14
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive
(losses)/income, net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nil income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign
currency translation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
|
(8,376)
|
|
14,597
|
|
2,125
|
|
(20,107)
|
|
37,477
|
|
5,457
|
|
- Unrealized holding
losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
securities
|
|
(18,562)
|
|
-
|
|
-
|
|
(30,487)
|
|
-
|
|
-
|
|
Total other
comprehensive
(losses)/income
|
|
(26,938)
|
|
14,597
|
|
2,125
|
|
(50,594)
|
|
37,477
|
|
5,457
|
|
Comprehensive
income
|
|
41,758
|
|
80,773
|
|
11,759
|
|
88,062
|
|
178,163
|
|
25,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(1,101)
|
|
(1,062)
|
|
(155)
|
|
(1,926)
|
|
(2,030)
|
|
(296)
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
Global Cord Blood
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporation's
shareholders
|
|
40,657
|
|
79,711
|
|
11,604
|
|
86,136
|
|
176,133
|
|
25,645
|
|
EXHIBIT
3
|
|
GLOBAL CORD BLOOD
CORPORATION
|
|
RECONCILIATION OF
NON-GAAP OPERATING INCOME
|
|
For the Three Months
and Six Months Ended September 30, 2017 and 2018
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Six months
ended
September 30,
|
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in
thousands)
|
|
GAAP amount of
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
76,328
|
|
104,766
|
|
15,253
|
|
159,289
|
|
200,208
|
|
29,151
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization
expenses[6]
|
|
12,354
|
|
13,391
|
|
1,950
|
|
25,106
|
|
26,536
|
|
3,864
|
|
Share-based
compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense[7]
|
|
20,060
|
|
-
|
|
-
|
|
16,622
|
|
-
|
|
-
|
|
Non-GAAP
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
108,742
|
|
118,157
|
|
17,203
|
|
201,017
|
|
226,744
|
|
33,015
|
|
[6]
Depreciation and amortization expenses relate to property, plant
and equipment and intangible assets respectively.
|
[7
Share-based compensation expense relates to the Company's RSU
scheme of which the shares have been fully vested in the quarter
ended March 31, 2018, accordingly there will be no share-based
compensation expense relating to those RSUs amortized in future
periods.
|
View original
content:http://www.prnewswire.com/news-releases/global-cord-blood-corporation-reports-financial-results-for-the-second-quarter-and-first-half-of-fiscal-2019-300755717.html
SOURCE Global Cord Blood Corporation