HONG KONG, Nov. 25, 2014 /PRNewswire/ -- China Cord Blood
Corporation (NYSE: CO) ("CCBC" 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 preliminary
unaudited financial results for the second quarter and first half
of fiscal year 2015 ended September 30,
2014.
Second Quarter of Fiscal 2015 Highlights
- Revenues for the second quarter of fiscal 2015 increased by
7.4% to RMB152.1 million
($24.8 million) from RMB141.6 million in the prior year period.
- New subscriber sign-ups and accumulated subscriber base were
15,584 and 407,755, respectively.
- Gross profit increased by 6.6% to RMB121.8 million ($19.8
million) from RMB114.3 million
in the prior year period.
- Gross margin was 80.1%, compared to 80.7% in the prior year
period.
- Operating income increased to RMB57.5
million ($9.4 million) from
RMB56.3 million in the prior year
period, despite higher depreciation expenses as a result of the
completion of the new Guangdong
and Zhejiang facilities.
- Operating income before depreciation and amortization expenses
of RMB13.3 million ($2.2 million) amounted to RMB70.8 million ($11.5
million), up 8.9% year-over-year.[1]
- Interest expense amounted to RMB25.2
million ($4.1 million),
compared to RMB16.5 million in the
prior year period due to the absence of interest expense
capitalization.
- As higher interest expense was offset by lower income tax
expense, net income attributable to the Company's shareholders
increased to RMB27.2 million
($4.4 million) from RMB24.9 million in the prior year period.
- Operating cash flow for the quarter increased by 41.4% to
RMB171.0 million ($27.9 million) from RMB121.0 million in the prior year period.
First Half of Fiscal 2015 Highlights
- Revenues for the first half of fiscal 2015 increased by 13.0%
to RMB305.5 million ($49.8 million) from RMB270.4 million in the prior year period.
- New subscriber sign-up reached 31,132 and accumulated
subscriber base expanded to 407,755.
- Gross profit increased by 12.3% to RMB245.3 million ($40.0
million) from RMB218.5 million
in the prior year period.
- Operating income increased by 15.1% to RMB117.6 million ($19.2
million) from RMB102.2 million
in the prior year period.
- Operating income before depreciation and amortization expenses
of RMB24.7 million ($4.0 million) amounted to RMB142.3 million ($23.2
million), up 19.1% year-over-year.[1]
- Interest expense amounted to RMB50.1
million ($8.2 million),
compared to RMB31.2 million in the
prior year period due to the absence of interest expense
capitalization.
- Net income attributable to the Company's shareholders amounted
to RMB57.0 million ($9.3 million), compared to RMB57.8 million in the prior year period.
- Operating cash flow for the first half of fiscal 2015 increased
by 28.8% to RMB295.7 million
($48.2 million) from RMB229.6 million in the prior year period.
"In the second quarter, we continued to execute our sales
strategy that emphasizes the one-time upfront payment option,
resulting in strong operating cash flow," stated Ms. Ting Zheng,
Chief Executive Officer of China Cord Blood Corporation. "As of the
end of the second quarter, our accumulated subscriber base
increased 4% since last quarter and now has over four hundred
thousand units, further solidifying our position as one of the
largest cord blood banks on a global scale."
Ms. Zheng further commented, "During the second quarter, we
began a series of internal reorganization and marketing activities
designed to strengthen the company's industry leadership position
and long-term competitive advantage. For instance, we are
increasing our recruitment efforts and adjusting our remuneration
policies, redeploying our sales staff for improved coverage and
initiating new advertising campaigns, all of which are aimed at
enhancing our overall sales operations. For the second half of
fiscal 2015, our primary focus will be reinforcing these new
measures that drive customer enrollment."
Summary – Second
Quarter and First Half Ended September 30, 2013 and
2014
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
(in
thousands)
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues
|
|
141,635
|
|
152,122
|
|
24,784
|
|
270,356
|
|
305,453
|
|
49,764
|
Gross
Profit
|
|
114,275
|
|
121,774
|
|
19,840
|
|
218,504
|
|
245,329
|
|
39,969
|
Operating
Income
|
|
56,290
|
|
57,463
|
|
9,362
|
|
102,170
|
|
117,630
|
|
19,164
|
Depreciation
and Amortization Expenses
|
|
8,715
|
|
13,301
|
|
2,167
|
|
17,308
|
|
24,708
|
|
4,025
|
Interest
Expense
|
|
16,461
|
|
25,209
|
|
4,107
|
|
31,219
|
|
50,104
|
|
8,163
|
Net Income
Attributable to the Company's Shareholders
|
|
24,904
|
|
27,249
|
|
4,439
|
|
57,810
|
|
56,985
|
|
9,283
|
Earnings per Ordinary
Share
– Basic[2] and Diluted (RMB/US$)
|
|
0.33
|
|
0.35
|
|
0.06
|
|
0.73
|
|
0.72
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing
Fees
|
|
71.6%
|
|
67.4%
|
|
|
|
70.6%
|
|
68.3%
|
|
|
Storage
Fees
|
|
28.4%
|
|
32.6%
|
|
|
|
29.4%
|
|
31.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
|
15,928
|
|
15,584
|
|
|
|
31,188
|
|
31,132
|
|
|
Total Accumulated
Subscribers (persons)
|
|
343,170
|
|
407,755
|
|
|
|
343,170
|
|
407,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary – Selected
Cash Flow Statement Items
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net cash provided by
operating activities
|
|
120,969
|
|
171,048
|
|
27,867
|
|
229,623
|
|
295,691
|
|
48,174
|
Net cash used in
investing activities
|
|
(17,531)
|
|
(3,998)
|
|
(651)
|
|
(56,891)
|
|
(22,395)
|
|
(3,649)
|
Net cash provided by
financing activities
|
|
5,578
|
|
-
|
|
-
|
|
2,336
|
|
-
|
|
-
|
Second Quarter of Fiscal 2015 Financial Results
REVENUES. Revenues increased by 7.4% to
RMB152.1 million ($24.8 million) in the second quarter of fiscal
2015 from RMB141.6 million in the
prior year period, driven mainly by the increase of recurring
storage revenues derived from the Company's enlarged total
subscriber base.
As the Company's accumulated subscriber base expanded to 407,755
by the end of September 2014,
revenues generated from storage fees increased to RMB49.6 million ($8.1
million), up 23.4% from RMB40.2
million in the prior year period. As a percentage of total
revenues, storage fees accounted for 32.6%, compared to 28.4% in
the prior year period.
Revenues generated from processing fees in the second quarter
were RMB102.5 million ($16.7 million), up modestly from RMB101.4 million in the prior year period due
mainly to the year-over-year difference in processing fees for the
contracts signed between the two quarters. 15,584 new subscriber
sign-ups were recorded during the second quarter of fiscal 2015,
representing a slight decrease from 15,928 in the prior year period
but slight improvement from the first quarter of fiscal 2015.
Revenues generated from processing fees accounted for 67.4% of
total revenues, compared to 71.6% in the prior year period.
GROSS PROFIT. Gross profit for the second quarter
of fiscal 2015 increased by 6.6% to RMB121.8
million ($19.8 million) from
RMB114.3 million in the prior year
period, mainly due to increased revenues and well-controlled direct
costs. Despite the increase in depreciation expenses, the Company
continued to report a solid gross margin of 80.1%, compared to
80.7% in the prior year period.
OPERATING INCOME. Operating income for the second
quarter increased at a slower pace to RMB57.5 million ($9.4
million) from RMB56.3 million
in the prior year period, as a result of higher depreciation
expenses. Operating margin in this quarter was 37.8%, compared to
39.7% in the prior year period. Depreciation and amortization
expenses for the second quarter were RMB13.3
million ($2.2 million),
compared to RMB8.7 million in the
prior year period. Operating income before depreciation and
amortization expenses totaled RMB70.8
million ($11.5 million), up
8.9% compared to the prior year period.[3]
Research and Development
Expenses. Research and development expenses, which have
been stable in the last few quarters, were RMB2.3 million ($0.4
million).
Sales and Marketing
Expenses. Sales and marketing expenses for the second
quarter amounted to RMB31.0 million
($5.0 million), compared to
RMB27.6 million in the prior year
period. As a percentage of revenue, sales and marketing expenses
were 20.3%, up from 19.5% in the prior year period but down from
20.7% in the first quarter of the current fiscal year. Sales and
marketing expenses continued to be correlated with the Company's
revenue performance. Looking ahead, the CCBC management team
intends to further expand its sales force and marketing and
promotion activities to continue to increase public awareness of
cord blood banking.
General and Administrative
Expenses. General and administrative expenses for the
second quarter were RMB31.0 million
($5.1 million), compared to
RMB28.0 million in the prior year
period. Increased depreciation expenses and repair and maintenance
fees contributed to the increase in general and administrative
expenses. As a percentage of revenue, general and administrative
expenses were 20.4%, compared to 19.8% in the prior year
period.
OTHER INCOME AND EXPENSES.
Interest Expense.
Interest expense is mainly related to the Company's outstanding
convertible notes. In the current quarter, the Company incurred
interest expense of RMB25.2 million
($4.1 million), without any
capitalization. For the prior year period, interest expense was
RMB16.5 million as RMB6.8 million of interest expense was
capitalized for the construction of the Company's new facilities in
Zhejiang and Guangdong.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. Due to higher interest expense, income before
tax for the second quarter decreased year-over-year to RMB37.5 million ($6.1
million) from RMB44.7 million.
However, net income attributable to the Company's shareholders for
the second quarter of fiscal 2015 increased to RMB27.2 million ($4.4
million) from RMB24.9 million
in the prior year period mainly due to lower income tax expense.
Net margin for the second quarter of fiscal 2015 was 17.9%.
EARNINGS PER SHARE. The terms of the convertible
notes issued to KKR and Golden Meditech provide each party with the
ability to participate in any Excess Cash Dividend[4]. Therefore,
the calculation of basic and diluted EPS has taken into
consideration the effect of such participating rights, which was
RMB0.02 ($0.003) per share. Basic and diluted earnings
per ordinary share for the second quarter of fiscal 2015 were
RMB0.35 ($0.06).
LIQUIDITY. As of September
30, 2014, the Company had cash and cash equivalents of
RMB2,156.5 million ($351.3 million) compared to RMB1,882.9 million as of March 31, 2014. The Company had total debt of
RMB857.2 million ($139.7 million) as of September 30, 2014. Operating cash flow for the
second quarter of fiscal 2015 increased by 41.4% to RMB171.0 million ($27.9
million) from RMB121.0 million
in the prior year period.
First Half of Fiscal 2015 Financial Results
For the first half of fiscal 2015, total revenues increased by
13.0% to RMB305.5 million
($49.8 million) from RMB270.4 million in the prior year period. The
increase was largely attributable to the increase of the Company's
storage revenue from the Company's expanded subscriber base, which
reached 407,755 units by the end of September 2014. Revenues from processing fees and
storage fees grew by 9.3% and 21.8%, respectively. Gross profit
increased by 12.3% to RMB245.3
million ($40.0 million) from
RMB218.5 million in the prior year
period. Operating income increased by 15.1% to RMB117.6 million ($19.2
million) from RMB102.2 million
in the prior year period. Operating income before depreciation and
amortization expenses totaled RMB142.3
million ($23.2 million), up
19.1% compared to the prior year period.[5] Net income attributable
to the Company's shareholders amounted to RMB57.0 million ($9.3
million). Basic and diluted earnings per share attributable
to ordinary shares were RMB0.72
($0.12). Net cash provided by
operating activities in the first half of fiscal 2015 was
RMB295.7 million ($48.2 million).
Conference Call
The Company will host a conference call at 8:00 a.m. ET on Wednesday,
November 26, 2014 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.chinacordbloodcorp.com. A replay of the webcast will be
accessible two hours after the conference call and available for
three weeks at the same URL link above. Listeners can also access
the call by dialing 1-631-514-2526 or 1-855-298-3404 for US
callers, or +852-5808-3202 for Hong
Kong callers, access code: 7331700.
Use of Non-GAAP Financial Measures
GAAP results for the three months and six months ended
September 30, 2014 include non-cash
item related to depreciation and
amortization 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 from 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 our 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 of this
press release. This additional adjusted information is not meant to
be considered in isolation or as a substitute for U.S. GAAP
financials.
About China Cord Blood Corporation
China 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 only seven licenses have been authorized as of today. China
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.chinacordbloodcorp.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
(including revisions to China's
One Child Policy) 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 implementing 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, as well as general economic
conditions; compliance with restrictive debt covenants under our
senior convertible notes; 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, 2014 were made at the
noon buying rate of RMB6.1380 to
$1.00 on September 30, 2014 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
China Cord Blood Corporation makes no representation that the
Renminbi or U.S. dollar amounts referred to in this press release
could have been or could be converted into U.S. dollars or
Renminbi, at any particular rate or at all.
For more information, please contact:
China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com
ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com
EXHIBIT 1
CHINA CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
As of March 31 and
September 30, 2014
|
|
|
|
|
|
|
|
March 31,
|
|
September
30,
|
|
2014
|
|
2014
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands except share
data)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
1,882,901
|
|
2,156,527
|
|
351,340
|
Accounts receivable,
less allowance for doubtful accounts
|
|
|
|
|
|
(March 31, 2014:
RMB20,322; September 30, 2014: RMB23,691)
|
95,273
|
|
110,412
|
|
17,988
|
Inventories
|
31,583
|
|
25,611
|
|
4,172
|
Prepaid expenses and
other receivables
|
37,010
|
|
16,712
|
|
2,723
|
Debt issuance
costs
|
3,616
|
|
3,608
|
|
588
|
Deferred tax
assets
|
7,664
|
|
8,578
|
|
1,398
|
Total current
assets
|
2,058,047
|
|
2,321,448
|
|
378,209
|
Property, plant and
equipment, net
|
626,632
|
|
616,545
|
|
100,446
|
Non-current
prepayments
|
208,894
|
|
208,429
|
|
33,957
|
Non-current accounts
receivable, less allowance for doubtful
accounts (March 31, 2014: RMB42,703; September 30,
2014:
|
|
|
|
|
|
RMB48,300)
|
225,496
|
|
211,805
|
|
34,507
|
Inventories
|
48,385
|
|
54,062
|
|
8,808
|
Intangible assets,
net
|
120,549
|
|
118,239
|
|
19,263
|
Available-for-sale
equity securities
|
144,247
|
|
139,637
|
|
22,750
|
Other
investment
|
189,129
|
|
189,129
|
|
30,813
|
Debt issuance
costs
|
7,854
|
|
6,028
|
|
982
|
Deferred tax
assets
|
1,789
|
|
2,648
|
|
431
|
Total
assets
|
3,631,022
|
|
3,867,970
|
|
630,166
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank loan
|
60,000
|
|
60,000
|
|
9,775
|
Accounts
payable
|
10,422
|
|
15,624
|
|
2,545
|
Accrued expenses and
other payables
|
102,559
|
|
77,625
|
|
12,647
|
Deferred
revenue
|
196,432
|
|
208,151
|
|
33,912
|
Amounts due to
related parties
|
21,453
|
|
22,245
|
|
3,624
|
Income tax
payable
|
2,571
|
|
7,202
|
|
1,173
|
Deferred tax
liabilities
|
3,900
|
|
6,500
|
|
1,059
|
Total current
liabilities
|
397,337
|
|
397,347
|
|
64,735
|
Convertible
notes
|
777,753
|
|
797,227
|
|
129,884
|
Non-current deferred
revenue
|
823,921
|
|
962,574
|
|
156,822
|
Other non-current
liabilities
|
164,077
|
|
189,529
|
|
30,878
|
Deferred tax
liabilities
|
27,938
|
|
27,331
|
|
4,453
|
Total
liabilities
|
2,191,026
|
|
2,374,008
|
|
386,772
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Shareholders'
equity of China Cord Blood Corporation
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
- US$0.0001 par
value, 250,000,000 shares authorized,
|
50
|
|
50
|
|
8
|
73,140,147
shares issued, and 73,003,248 shares outstanding
|
as of March 31
and September 30, 2014, respectively
|
Additional paid-in
capital
|
798,221
|
|
798,221
|
|
130,046
|
Treasury stock, at
cost
|
(2,815)
|
|
(2,815)
|
|
(459)
|
(March 31 and
September 30, 2014: 136,899 shares,
|
respectively)
|
Accumulated other
comprehensive income
|
84,263
|
|
81,393
|
|
13,260
|
Retained
earnings
|
555,323
|
|
612,308
|
|
99,756
|
Total equity
attributable to China Cord Blood Corporation
|
1,435,042
|
|
1,489,157
|
|
242,611
|
Non-controlling
interests
|
4,954
|
|
4,805
|
|
783
|
Total
equity
|
1,439,996
|
|
1,493,962
|
|
243,394
|
Total liabilities
and equity
|
3,631,022
|
|
3,867,970
|
|
630,166
|
|
EXHIBIT 2
CHINA CORD BLOOD
CORPORATION
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
For the Three Months
and Six Months ended September 30, 2013 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
September
30,
|
September
30,
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
141,635
|
|
152,122
|
|
24,784
|
|
270,356
|
|
305,453
|
|
49,764
|
|
Direct
costs
|
(27,360)
|
|
(30,348)
|
|
(4,944)
|
|
(51,852)
|
|
(60,124)
|
|
(9,795)
|
|
Gross
profit
|
114,275
|
|
121,774
|
|
19,840
|
|
218,504
|
|
245,329
|
|
39,969
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(2,310)
|
|
(2,330)
|
|
(380)
|
|
(4,833)
|
|
(4,829)
|
|
(787)
|
|
Sales and
marketing
|
(27,633)
|
|
(30,953)
|
|
(5,043)
|
|
(56,057)
|
|
(62,696)
|
|
(10,214)
|
|
General and
administrative
|
(28,042)
|
|
(31,028)
|
|
(5,055)
|
|
(55,444)
|
|
(60,174)
|
|
(9,804)
|
|
Total operating
expenses
|
(57,985)
|
|
(64,311)
|
|
(10,478)
|
|
(116,334)
|
|
(127,699)
|
|
(20,805)
|
|
Operating
income
|
56,290
|
|
57,463
|
|
9,362
|
|
102,170
|
|
117,630
|
|
19,164
|
|
Other expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
4,312
|
|
4,704
|
|
766
|
|
8,494
|
|
8,970
|
|
1,461
|
|
Interest
expense
|
(16,461)
|
|
(25,209)
|
|
(4,107)
|
|
(31,219)
|
|
(50,104)
|
|
(8,163)
|
|
Exchange
gain/(loss)
|
69
|
|
(182)
|
|
(30)
|
|
(55)
|
|
(2)
|
|
-
|
|
Dividend
income
|
-
|
|
-
|
|
-
|
|
8,722
|
|
1,196
|
|
195
|
|
Others
|
514
|
|
680
|
|
111
|
|
1,044
|
|
1,297
|
|
211
|
|
Total other
expense, net
|
(11,566)
|
|
(20,007)
|
|
(3,260)
|
|
(13,014)
|
|
(38,643)
|
|
(6,296)
|
|
Income before
income tax
|
44,724
|
|
37,456
|
|
6,102
|
|
89,156
|
|
78,987
|
|
12,868
|
|
Income tax
expense
|
(19,706)
|
|
(10,214)
|
|
(1,664)
|
|
(31,079)
|
|
(22,151)
|
|
(3,609)
|
|
Net
income
|
25,018
|
|
27,242
|
|
4,438
|
|
58,077
|
|
56,836
|
|
9,259
|
|
Net Income
attributable to non-controlling interests
|
(114)
|
|
7
|
|
1
|
|
(267)
|
|
149
|
|
24
|
|
Net income
attributable to China Cord Blood Corporation's
shareholders
|
24,904
|
|
27,249
|
|
4,439
|
|
57,810
|
|
56,985
|
|
9,283
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
0.33
|
|
0.35
|
|
0.06
|
|
0.73
|
|
0.72
|
|
0.12
|
|
- Diluted
|
0.33
|
|
0.35
|
|
0.06
|
|
0.73
|
|
0.72
|
|
0.12
|
|
Other
comprehensive income
|
|
|
|
|
|
|
|
- Net effect of
foreign currency translation, net of nil
tax
|
2,789
|
|
913
|
|
149
|
|
9,594
|
|
1,442
|
|
235
|
|
- Net unrealized
gain/(loss) in available-for-sale equity securities, net of nil
tax
|
59,220
|
|
(8,818)
|
|
(1,437)
|
|
83,558
|
|
(4,312)
|
|
(703)
|
|
Comprehensive
income
|
87,027
|
|
19,337
|
|
3,150
|
|
151,229
|
|
53,966
|
|
8,791
|
|
Comprehensive income
attributable to non-controlling interests
|
(114)
|
|
7
|
|
1
|
|
(267)
|
|
149
|
|
24
|
|
Comprehensive
income attributable to China Cord Blood Corporation's
shareholders
|
86,913
|
|
19,344
|
|
3,151
|
|
150,962
|
|
54,115
|
|
8,815
|
|
EXHIBIT 3
CHINA CORD BLOOD
CORPORATION
|
RECONCILIATION OF
NON-GAAP OPERATING INCOME
|
For the Three Months
and Six Months ended September 30, 2013 and 2014
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
September
30,
|
|
September
30,
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
amount
|
|
|
|
|
|
|
|
|
|
|
|
of operating
income
|
56,290
|
|
57,463
|
|
9,362
|
|
102,170
|
|
117,630
|
|
19,164
|
Depreciation and
Amortization[6]
|
8,715
|
|
13,301
|
|
2,167
|
|
17,308
|
|
24,708
|
|
4,025
|
Non-GAAP operating
income
|
65,005
|
|
70,764
|
|
11,529
|
|
119,478
|
|
142,338
|
|
23,189
|
[1]
|
See exhibit 3 of this
press release for a reconciliation of operating income to exclude
the non-cash item related to the depreciation and amortization
expenses to the comparable financial measure prepared in accordance
with U.S. generally accepted accounting principles ("U.S.
GAAP").
|
[2]
|
The terms of the
convertible notes issued to KKR China Healthcare Investment Limited
("KKR") and Golden Meditech Holdings Limited ("Golden Meditech")
provide each party with the ability to participate in any excess
cash dividend. Therefore, the calculation of basic EPS has taken
into consideration the effect of such participating rights of
RMB0.02 ($0.003) and RMB0.06 ($0.01) per share for the three months
and six months ended September 30, 2014, respectively.
|
[3]
|
See exhibit 3 of this
press release for a reconciliation of operating income to exclude
the non-cash item related to the depreciation and amortization
expenses to the comparable financial measure prepared in accordance
with U.S. GAAP.
|
[4]
|
"Excess Cash
Dividend" means any cash dividend to holders of shares that,
together with all other cash dividends previously paid to holders
of shares in the same financial year, exceeds, on a per share
basis, an amount equal to the interest that has accrued and shall
accrue at 7% in such financial year divided by the number of shares
into which the note is convertible at the conversion price then in
effect on the relevant record date.
|
[5]
|
See exhibit 3 of this
press release for a reconciliation of operating income to exclude
the non-cash item related to the depreciation and amortization
expenses to the comparable financial measures prepared in
accordance with U.S. GAAP.
|
[6]
|
Depreciation and
amortization expenses relate to our property, plant and equipment
and intangible assets respectively.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-cord-blood-corporation-reports-financial-results-for-the-second-quarter-and-first-half-of-fiscal-2015-300000931.html
SOURCE China Cord Blood Corporation