(b) Use of estimates
The preparation of the unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the estimate of stand-alone selling price for each performance obligation in contracts with customers that contain more than one performance obligation, the estimated number of successful match units over the estimated weighted average remaining useful life of donated cord blood units, the useful lives of property, plant and equipment and intangible assets, the recoverability of property, plant and equipment and intangible assets, the collectibility of accounts receivables, and the realizability of inventories and deferred tax assets.
3 Property, plant and equipment, net
Property, plant and equipment, net consist of the following:
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|
|
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March 31,
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September 30,
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2020
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2020
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2020
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RMB
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RMB
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US$
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|
|
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Buildings
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604,112
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604,008
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88,961
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Leasehold improvements
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14,864
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14,864
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2,189
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Machineries
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208,377
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217,397
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32,019
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Motor vehicles
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|
19,088
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19,183
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2,825
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Furniture, fixtures and equipment
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|
55,722
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54,913
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|
8,088
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Construction-in-progress
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1,356
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|
3,115
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|
459
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|
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903,519
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913,480
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134,541
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Less: Accumulated depreciation
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(380,840)
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(399,327)
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(58,815)
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Total property, plant and equipment, net
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522,679
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514,153
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75,726
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Depreciation expense related to property, plant and equipment for the three months ended September 30, 2019 and 2020 was RMB11,300 and RMB11,111 (US$1,636), respectively. Depreciation expense related to property, plant and equipment for the six months ended September 30, 2019 and 2020 was RMB22,590 and RMB22,312 (US$3,286), respectively.
4 Income tax
The Company’s PRC subsidiaries are subject to PRC statutory income tax rate of 25% unless otherwise specified.
In February 2018, Beijing Jiachenhong Biological Technologies Co., Ltd. (“Beijing Jiachenhong”) received approval from the tax authority on the renewal of its High and New Technology Enterprises (“HNTE”) status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2017 to December 31, 2019. Beijing Jiachenhong is in the process of reapplication for its HNTE certificate which, upon approval, will entitle it to the preferential income tax rate of 15% from January 1, 2020 to December 31, 2022.
In February 2020, Guangzhou Municipality Tianhe Nuoya Bio-engineering Co., Ltd. (“Guangzhou Nuoya”) received approval from the tax authority on the renewal of its HNTE status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2019 to December 31, 2021.
In March 2019, Zhejiang Lukou Biotechnology Co., Ltd. (“Zhejiang Lukou”) received approval from the tax authority that it qualified as a HNTE which entitled it to the preferential income tax rate of 15% effective retrospectively from January 1, 2018 to December 31, 2020.