HONG KONG, June 18, 2015 /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 fourth quarter and full year of
fiscal 2015 ended March 31, 2015.
Fourth Quarter of Fiscal 2015 Highlights
- Revenues for the fourth quarter of fiscal 2015 increased by
7.3% to RMB163.0 million
($26.3 million) from RMB151.9 million in the prior year period.
- New subscribers and accumulated subscriber base were 15,982 and
441,359, respectively.
- Gross profit increased by 3.2% to RMB128.6 million ($20.7
million) from RMB124.6 million
in the prior year period, despite higher raw material costs and
depreciation expense.
- Gross margin was 78.9%, compared to
82.0% in the prior year period.
- Operating income amounted to RMB49.5
million ($8.0 million),
compared to RMB64.0 million in the
prior year period, mainly caused by higher depreciation expense due
to the completion of the new facilities and the recognition of
share-based compensation expense related to the restricted share
units ("RSUs") granted.
- Operating income before depreciation and amortization and
share-based compensation expenses was RMB76.6 million ($12.4
million), up 3.7% year-over-year.1
- Interest expense was RMB25.2
million ($4.1 million)
compared to RMB17.0 million in the
prior year period as no interest expense was capitalized in this
period.
- Net income attributable to the Company's shareholders was
RMB16.9 million ($2.7 million), compared to RMB39.5 million in the prior year period.
- Operating cash flow for the quarter was RMB146.4 million ($23.6
million).
Full Year of Fiscal 2015 Highlights
- Revenues for the full year of fiscal 2015 increased by 10.9% to
RMB635.1 million ($102.5 million) from RMB572.9 million in the prior year.
- New subscribers increased to 64,736 and the accumulated
subscriber base increased to 441,359.
- Gross profit increased by 8.1% to RMB504.5 million ($81.4
million) from RMB466.6 million
in the prior year.
- Operating income increased by 1.3% to RMB235.0 million ($37.9
million) from RMB231.9 million
in the prior year.
- Operating income before depreciation and amortization and
share-based compensation expenses was RMB302.1 million ($48.7
million), up 12.3% year-over-year.1
- Interest expense was RMB101.1
million ($16.3 million),
compared to RMB70.1 million in the
prior year due to the absence of interest expense
capitalization.
- Net income attributable to the Company's shareholders was
RMB107.3 million ($17.3 million), compared to RMB131.9 million in the prior year.
- Operating cash flow for the full year
of fiscal 2015 increased by 11.0% to RMB594.9 million ($96.0
million) from RMB536.0 million
in the prior year.
1 See
exhibit 3 of this press release for a reconciliation of operating
income to exclude the non-cash items related to the depreciation
and amortization and share-based compensation expenses to the
comparable financial measure prepared in accordance with U.S.
generally accepted accounting principles ("U.S. GAAP").
|
"Entering into Chinese Year of Sheep, we experienced a
noticeable decline of newborn babies in the regions where we
operate, which affected our new subscriber number," stated Ms. Ting
Zheng, Chief Executive Officer of China Cord Blood Corporation, "We
anticipate a decline in new born babies for the remainder of the
year. To mitigate the impact, we intend to evaluate new promotional
platforms and marketing channels and prudently ramp up our
commercialization effort in the Zhejiang market to attract new
subscribers."
Summary -- Fourth Quarter and Full Year Ended
March 31, 2014 and 2015
|
Three Months Ended
March 31
|
Year Ended March
31,
|
|
2014
|
2015
|
2014
|
2015
|
(in
thousands)
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
Revenues
|
151,915
|
162,994
|
26,294
|
572,857
|
635,122
|
102,456
|
Gross
Profit
|
124,574
|
128,554
|
20,738
|
466,632
|
504,511
|
81,386
|
Operating
Income
|
64,013
|
49,523
|
7,989
|
231,926
|
234,996
|
37,909
|
Depreciation and
|
9,808
|
13,024
|
2,101
|
37,065
|
50,609
|
8,164
|
Amortization
Expenses
|
Share-based
|
|
|
|
|
|
|
Compensation Expense2
|
-
|
14,038
|
2,265
|
-
|
16,535
|
2,667
|
Interest
Expense
|
16,990
|
25,238
|
4,071
|
70,075
|
101,102
|
16,309
|
Net Income
Attributable to the
Company's
Shareholders
|
39,539
|
16,923
|
2,729
|
131,903
|
107,292
|
17,308
|
Earnings per Ordinary
Share
|
0.46
|
0.23
|
0.04
|
1.60
|
1.36
|
0.22
|
–
Basic3 and
Diluted
|
(RMB/US$)
|
|
|
|
|
|
|
|
Revenue Breakdown
(%)
|
|
|
|
|
|
|
Processing
Fees
|
71.1%
|
66.3%
|
|
70.9%
|
67.9%
|
|
Storage
Fees
|
28.9%
|
33.7%
|
|
29.1%
|
32.1%
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
17,136
|
15,982
|
|
64,641
|
64,736
|
|
Total
Accumulated
Subscribers (persons)
|
376,623
|
441,359
|
|
376,623
|
441,359
|
|
|
|
|
|
|
|
|
2
Share-based compensation expense relates to the Company's
restricted share unit scheme ("RSU Scheme") in which 7,300,000 RSUs
were granted to certain executives, directors and key employees
during the three months ended December 31, 2014. Out of 7,300,000
RSUs granted, 7,080,000 ordinary shares ("Shares") were then issued
and deposited into a trust sponsored and funded by the Company
("Trust").
|
3 The
terms of the convertible notes held by KKR China Healthcare
Investment Limited ("KKR"), Cordlife Group Limited ("CGL") and
Magnum Opus International Holdings Limited ("Magnum") 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 nil and
RMB0.11 ($0.02) per share for the three months and year ended March
31, 2015.
|
Summary -- Selected Cash Flow Statement Items
|
Three Months Ended
March 31,
|
Year Ended March
31,
|
|
2014
|
2015
|
2014
|
2015
|
(in
thousands)
|
RMB
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
Net cash provided
by
operating
activities
|
137,399
|
146,443
|
23,625
|
536,015
|
594,866
|
95,961
|
Net cash used
in
investing
activities
|
(9,037)
|
(4,794)
|
(774)
|
(149,883)
|
(42,431)
|
(6,845)
|
Net cash provided
by
financing
activities
|
-
|
-
|
-
|
2,336
|
-
|
-
|
Fourth Quarter of Fiscal 2015 Financial Results
REVENUES. Revenues increased by 7.3% to
RMB163.0 million ($26.3 million) in the fourth quarter of fiscal
2015 from RMB151.9 million in the
prior year period, mainly driven by the increased storage
revenue.
The Company's accumulated subscriber base expanded to 441,359 by
the end of March 2015, which resulted
in a 25.0% increase in storage fee revenues to RMB55.0 million ($8.9
million) in the fourth quarter of fiscal 2015 from
RMB44.0 million in the prior year
period. As a percentage of total revenues, storage fees accounted
for 33.7%, compared to 28.9% in the prior year period.
Revenues generated from processing fees and other services in
the fourth quarter were RMB108.0
million ($17.4 million), up
from RMB107.9 million in the prior
year period. Revenues generated from processing fees accounted for
66.3% of total revenues, compared to 71.1% in the prior year
period.
GROSS PROFIT. Gross profit for the fourth quarter
of fiscal 2015 amounted to RMB128.6
million ($20.7 million), a
3.2% increase from RMB124.6 million
in the prior year period. Gross margin was 78.9%, compared to 82.0%
in the prior year period, due to higher depreciation expense and
raw material costs.
OPERATING INCOME. Operating income for the fourth
quarter was RMB49.5 million
($8.0 million) compared to
RMB64.0 million in the prior year
period, mainly due to higher depreciation expense and the
recognition of share-based compensation expense. Operating margin
was 30.4%, compared to 42.1% in the prior year period. Depreciation
and amortization expenses for the fourth quarter were RMB13.0 million ($2.1
million), compared to RMB9.8
million in the prior year period. Share-based compensation
expense related to the Company's RSUs which were granted in
December 2014 pursuant to the
Company's RSU Scheme amounted to RMB14.0
million ($2.3 million) for the
March quarter, whereas no such expense was incurred in the prior
year period. Operating income before depreciation and amortization
and share-based compensation expenses totaled RMB76.6 million ($12.4
million), up 3.7% compared to the prior year
period.4
4 See
exhibit 3 of this press release for a reconciliation of 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.
GAAP.
|
Research and Development Expenses. Research and
development expenses, which have been stable in recent quarters,
were RMB2.7 million ($0.4 million).
Sales and Marketing Expenses. Sales and marketing
expenses for the fourth quarter amounted to RMB35.0 million ($5.6
million), compared to RMB28.4
million in the prior year period. As a percentage of
revenue, sales and marketing expenses were 21.4%, as compared to
18.7% in the prior year period. The increase in sales and marketing
expenses is mainly due to the recognition of share-based
compensation expenses in the current quarter whereas no such
expense incurred in the prior year period. Excluding such effect,
sales and marketing expenses, as a percentage of revenue, increased
marginally.
General and Administrative Expenses. General and
administrative expenses for the fourth quarter were RMB41.4 million ($6.7
million), compared to RMB29.6
million in the prior year period. As a percentage of
revenue, general and administrative expenses were 25.4%. Increased
depreciation expense and the recognition of share-based
compensation expense since December
2014 is the principle cause of the increase.
OTHER INCOME AND EXPENSES.
Interest Expense. Interest expense was mainly
related to the Company's outstanding convertible notes. In the
March quarter, the Company incurred interest expense of
RMB25.2 million ($4.1 million), with no capitalization. For the
prior year period, interest expense was RMB17.0 million as RMB7.0
million of interest expense was capitalized in relation to
the construction of new facilities, which were completed as of
March 31, 2014 and no interest
expense was capitalized after that.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. Due to the decrease in operating income and
higher interest expense, income before income tax for the fourth
quarter decreased year-over-year to RMB29.0
million ($4.7 million) from
RMB52.5 million. Net income
attributable to the Company's shareholders for the fourth quarter
of fiscal 2015 amounted to RMB16.9
million ($2.7 million),
compared to RMB39.5 million in the
prior year period. Net margin for the fourth quarter of fiscal 2015
was 10.4%.
EARNINGS PER SHARE. The terms of the convertible
notes held by KKR, CGL and Magnum provide each party with the
ability to participate in any Excess Cash Dividend5.
Therefore, the calculation of basic and diluted EPS has taken into
consideration the effect of such participating rights. As there is
no Excess Cash Dividend for the current period, such participating
right effect is nil. Basic and diluted earnings per ordinary share
for the fourth quarter of fiscal 2015 were RMB0.23 ($0.04).6
LIQUIDITY. As of March 31,
2015, the Company had cash and cash equivalents of
RMB2,436.7 million ($393.1 million), compared to RMB1,882.9 million as of March 31, 2014. The Company had total debt of
RMB875.9 million ($141.3 million) as of March 31, 2015. Operating cash flow for the
fourth quarter of fiscal 2015 amounted to RMB146.4 million ($23.6
million).
5 "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.
|
6 During
the quarter ended March 31, 2014, the Company granted a total of
7,300,000 RSUs to certain executives, directors and key employees
under the Company's RSU Scheme, subject to certain performance
conditions. Out of 7,300,000 RSUs granted, 7,080,000 Shares were
then issued and deposited into a Trust, and will be transferred to
respective executives, directors and key employees (or their
designated nominees) under the Company's RSU Scheme when the
performance conditions are met. The Trust facilitates the granting
(and subsequent vesting) of incentive RSUs and holds such Shares
for the benefit of such executives, directors and key employees as
a class. Under the non-GAAP measure to take into account of such
Shares, in addition to 73,003,248 outstanding shares, basic and
diluted earnings per ordinary share were RMB0.20 ($0.03) and
RMB1.32 ($0.21) for the three months and year ended March 31,
2015.
|
Full year of Fiscal 2015 Financial Results
For the full year of fiscal year 2015, total revenues increased
by 10.9% to RMB635.1 million
($102.5 million) from RMB572.9 million in the prior year. The increase
was largely attributable to the increase in storage fees related
revenues. The accumulated subscriber base increased to 441,359 at
the end of March 2015. Revenues from
processing fees and storage fees grew by 6.2% and 22.3%
year-over-year, respectively. Gross profit increased by 8.1% to
RMB504.5 million ($81.4 million) from RMB466.6 million in the prior year. Operating
income increased by 1.3% to RMB235.0
million ($37.9 million) from
RMB231.9 million in the prior year.
Operating income before depreciation and amortization and
share-based compensation expenses totaled RMB302.1 million ($48.7
million), an increase of 12.3% over the prior
year.7 Net income attributable to the Company's
shareholders amounted to RMB107.3
million ($17.3 million). Basic
and diluted earnings per share attributable to ordinary shares were
RMB1.36 ($0.22). Net cash provided by operating
activities in the full year of fiscal 2015 was RMB594.9 million ($96.0
million).
Recent Developments
- On April 27, 2015, the Company
announced that its board of directors (the "Board") has received a
non-binding proposal letter from Golden Meditech Holdings Limited
("Golden Meditech"), pursuant to which Golden Meditech proposes to
acquire all of the outstanding ordinary shares of the Company not
already directly or indirectly owned by Golden Meditech for
US$6.40 per ordinary share in
cash.
According to the proposal letter, which was dated April 27, 2015, the proposed transaction is
intended to be financed with a combination of available cash
resources of Golden Meditech and debt and equity capital. In
connection with the proposed transaction, Golden Meditech also
intends to acquire all of the 7% senior convertible notes of the
Company pursuant to agreements entered
into with the holders of such convertible
notes.
- On April 29, 2015, the Company
announced that in response to the non-binding proposal letter dated
April 27, 2015 received by the Board
from Golden Meditech, the Board has formed a special committee of
independent directors who are not affiliated with Golden Meditech
(the "Special Committee") to evaluate such proposal. The Special
Committee consists of Mr. Mark D.
Chen, Dr. Ken Lu and Ms.
Jennifer J. Weng, each of whom
currently serves as an independent director on the Board, with Mr.
Chen serving as the chair of the Special Committee.
- On June 2, 2015, the Company
announced that the Special Committee has appointed Houlihan Lokey (China) Limited as its independent financial
advisor, Cleary Gottlieb Steen &
Hamilton LLP as its United States
legal counsel and Maples & Calder as its Cayman Islands legal counsel. The Special
Committee is considering Golden Meditech's proposal as well as the
Company's other alternatives. The Special Committee has not set a
definitive timetable to complete its evaluation of Golden
Meditech's proposal or any other alternative and does not currently
intend to announce developments unless and until an agreement has
been reached.
The Company cautions its shareholders and others considering
trading its securities that there can be no assurance that the
Special Committee will recommend Golden Meditech's proposal, nor
can there be any assurance as to when, if ever, or on what terms
any alternative transaction will be consummated.
7 See
exhibit 3 of this press release for a reconciliation of 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.
GAAP.
|
Conference Call
The Company will host a conference call at 8:00 a.m. ET on Friday,
June 19, 2015 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 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: 1917075.
Use of Non-GAAP Financial Measures
GAAP results for the three months and year ended March 31, 2015 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 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; the non-binding proposal letter from
Golden Meditech; 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
March 31, 2015 were made at the noon
buying rate of RMB6.1990 to
$1.00 on March
31, 2015 in the City of New
York for cable transfers in Renminbi per U.S. dollar as
certified for customs purposes by the Federal Reserve Bank of
New York. China Cord Blood
Corporation makes no representation that the Renminbi or U.S.
dollar amounts referred to in this press release could have been or
could be converted into U.S. dollars or Renminbi, at any particular
rate or at all.
For more information, please contact:
China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com
ICR, Inc.
William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com
EXHIBIT 1
CHINA CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
As of March 31, 2014
and 2015
|
|
March
31,
|
|
March
31,
|
|
|
2014
|
|
2015
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in
thousands except
share data)
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
1,882,901
|
|
2,436,655
|
|
393,072
|
|
Trading
securities
|
-
|
|
7,708
|
|
1,243
|
|
Accounts receivable,
less allowance for doubtful accounts
|
|
|
|
|
|
|
(March 31,
2014: RMB20,322; March 31, 2015: RMB28,624
|
|
|
|
|
|
|
(US$4,618))
|
95,273
|
|
120,762
|
|
19,480
|
|
Inventories
|
31,583
|
|
23,803
|
|
3,840
|
|
Prepaid expenses and
other receivables
|
37,010
|
|
19,508
|
|
3,147
|
|
Debt issuance
costs
|
3,616
|
|
3,592
|
|
579
|
|
Deferred tax
assets
|
7,664
|
|
10,270
|
|
1,657
|
|
Total current
assets
|
2,058,047
|
|
2,622,298
|
|
423,018
|
|
Property, plant and
equipment, net
|
626,632
|
|
603,167
|
|
97,301
|
|
Non-current
prepayments
|
208,894
|
|
207,258
|
|
33,434
|
|
Non-current accounts
receivable, less allowance for doubtful
accounts
|
|
|
|
|
|
|
(March 31,
2014: RMB42,703; March 31, 2015: RMB55,211
|
|
|
|
|
|
|
(US$8,906))
|
225,496
|
|
194,238
|
|
31,334
|
|
Inventories
|
48,385
|
|
58,224
|
|
9,392
|
|
Intangible assets,
net
|
120,549
|
|
115,928
|
|
18,701
|
|
Available-for-sale
equity securities
|
144,247
|
|
122,416
|
|
19,748
|
|
Other
investment
|
189,129
|
|
189,129
|
|
30,510
|
|
Debt issuance
costs
|
7,854
|
|
4,210
|
|
679
|
|
Deferred tax
assets
|
1,789
|
|
2,618
|
|
422
|
|
Total
assets
|
3,631,022
|
|
4,119,486
|
|
664,539
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank loan
|
60,000
|
|
60,000
|
|
9,679
|
|
Accounts
payable
|
10,422
|
|
12,673
|
|
2,044
|
|
Accrued expenses and
other payables
|
102,559
|
|
87,381
|
|
14,097
|
|
Deferred
revenue
|
196,432
|
|
220,140
|
|
35,512
|
|
Amounts due to
related parties
|
21,453
|
|
20,802
|
|
3,355
|
|
Income tax
payable
|
2,571
|
|
10,081
|
|
1,626
|
|
Deferred tax
liabilities
|
3,900
|
|
9,100
|
|
1,468
|
|
Total current
liabilities
|
397,337
|
|
420,177
|
|
67,781
|
|
Convertible
notes
|
777,753
|
|
815,851
|
|
131,610
|
|
Non-current deferred
revenue
|
823,921
|
|
1,099,399
|
|
177,351
|
|
Other non-current
liabilities
|
164,077
|
|
215,585
|
|
34,777
|
|
Deferred tax
liabilities
|
27,938
|
|
25,261
|
|
4,075
|
|
Total
liabilities
|
2,191,026
|
|
2,576,273
|
|
415,594
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders'
equity of China Cord Blood Corporation
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
|
- US$0.0001 par
value, 250,000,000 shares authorized, 73,140,147
shares issued and 73,003,248 shares
outstanding as of
March 31, 2014 and 2015,
respectively
|
50
|
|
50
|
|
8
|
|
Additional paid-in
capital
|
798,221
|
|
814,678
|
|
131,420
|
|
Treasury stock, at
cost
|
|
|
|
|
|
|
(March 31, 2014 and
2015: 136,899 shares, respectively)
|
(2,815)
|
|
(2,815)
|
|
(454)
|
|
Accumulated other
comprehensive income
|
84,263
|
|
63,230
|
|
10,200
|
|
Retained
earnings
|
555,323
|
|
662,615
|
|
106,891
|
|
Total equity
attributable to China Cord Blood Corporation
|
1,435,042
|
|
1,537,758
|
|
248,065
|
|
Non-controlling
interests
|
4,954
|
|
5,455
|
|
880
|
|
Total
equity
|
1,439,996
|
|
1,543,213
|
|
248,945
|
|
Total liabilities
and equity
|
3,631,022
|
|
4,119,486
|
|
664,539
|
|
EXHIBIT 2
CHINA CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
For the Three Months
and Year ended March 31, 2014 and 2015
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
151,915
|
|
162,994
|
|
26,294
|
|
572,857
|
|
635,122
|
|
102,456
|
|
Direct costs
|
|
(27,341)
|
|
(34,440)
|
|
(5,556)
|
|
(106,225)
|
|
(130,611)
|
|
(21,070)
|
|
Gross
profit
|
|
124,574
|
|
128,554
|
|
20,738
|
|
466,632
|
|
504,511
|
|
81,386
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(2,539)
|
|
(2,660)
|
|
(429)
|
|
(9,773)
|
|
(9,907)
|
|
(1,598)
|
|
Sales and
marketing
|
|
(28,415)
|
|
(34,960)
|
|
(5,640)
|
|
(112,689)
|
|
(127,927)
|
|
(20,637)
|
|
General and
administrative
|
|
(29,607)
|
|
(41,411)
|
|
(6,680)
|
|
(112,244)
|
|
(131,681)
|
|
(21,242)
|
|
Total operating
expenses
|
|
(60,561)
|
|
(79,031)
|
|
(12,749)
|
|
(234,706)
|
|
(269,515)
|
|
(43,477)
|
|
Operating
income
|
|
64,013
|
|
49,523
|
|
7,989
|
|
231,926
|
|
234,996
|
|
37,909
|
|
Other expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
4,615
|
|
4,708
|
|
759
|
|
16,870
|
|
18,252
|
|
2,944
|
|
Interest
expense
|
|
(16,990)
|
|
(25,238)
|
|
(4,071)
|
|
(70,075)
|
|
(101,102)
|
|
(16,309)
|
|
Exchange
gain/(loss)
|
|
329
|
|
(82)
|
|
(13)
|
|
80
|
|
(231)
|
|
(37)
|
|
Dividend
income
|
|
-
|
|
-
|
|
-
|
|
9,911
|
|
2,344
|
|
378
|
|
Others
|
|
565
|
|
101
|
|
16
|
|
2,212
|
|
861
|
|
139
|
|
Total other expense,
net
|
|
(11,481)
|
|
(20,511)
|
|
(3,309)
|
|
(41,002)
|
|
(79,876)
|
|
(12,885)
|
|
Income before income
tax
|
|
52,532
|
|
29,012
|
|
4,680
|
|
190,924
|
|
155,120
|
|
25,024
|
|
Income tax
expense
|
|
(12,830)
|
|
(11,664)
|
|
(1,882)
|
|
(58,398)
|
|
(47,327)
|
|
(7,635)
|
|
Net
income
|
|
39,702
|
|
17,348
|
|
2,798
|
|
132,526
|
|
107,793
|
|
17,389
|
|
Net income attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(163)
|
|
(425)
|
|
(69)
|
|
(623)
|
|
(501)
|
|
(81)
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Cord Blood
Corporation's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
|
39,539
|
|
16,923
|
|
2,729
|
|
131,903
|
|
107,292
|
|
17,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.46
|
|
0.23
|
|
0.04
|
|
1.60
|
|
1.36
|
|
0.22
|
|
-
Diluted
|
|
0.46
|
|
0.23
|
|
0.04
|
|
1.60
|
|
1.36
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net effect of
foreign currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
translation, net of
nil tax
|
|
(3,686)
|
|
1,360
|
|
219
|
|
8,299
|
|
4,642
|
|
749
|
|
- Net
unrealized (loss)/gain in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available-for-sale
equity securities,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of nil
tax
|
|
(6,346)
|
|
12,934
|
|
2,086
|
|
57,708
|
|
(25,675)
|
|
(4,142)
|
|
Comprehensive
income
|
|
29,670
|
|
31,642
|
|
5,103
|
|
198,533
|
|
86,760
|
|
13,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to non-controlling
interests
|
|
(163)
|
|
(425)
|
|
(69)
|
|
(623)
|
|
(501)
|
|
(81)
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
China Cord Blood
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporation's
shareholders
|
|
29,507
|
|
31,217
|
|
5,034
|
|
197,910
|
|
86,259
|
|
13,915
|
|
EXHIBIT 3
CHINA CORD BLOOD
CORPORATION
|
RECONCILIATION OF
NON-GAAP OPERATING INCOME
|
For the Three Months
and Year ended March 31, 2014 and 2015
|
|
|
Three months ended
March 31,
|
|
|
Year ended March
31,
|
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of operating
income
|
|
|
64,013
|
|
|
|
49,523
|
|
|
|
7,989
|
|
|
|
231,926
|
|
|
|
234,996
|
|
|
|
37,909
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization
expenses8
|
|
|
9,808
|
|
|
|
13,024
|
|
|
|
2,101
|
|
|
|
37,065
|
|
|
|
50,609
|
|
|
|
8,164
|
|
Share-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
expense9
|
|
|
-
|
|
|
|
14,038
|
|
|
|
2,265
|
|
|
|
-
|
|
|
|
16,535
|
|
|
|
2,667
|
|
Non-GAAP
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
|
73,821
|
|
|
|
76,585
|
|
|
|
12,355
|
|
|
|
268,991
|
|
|
|
302,140
|
|
|
|
48,740
|
|
8
Depreciation and amortization expenses relate to property, plant
and equipment and intangible assets respectively.
|
9
Share-based compensation expense relates to the Company's RSU
Scheme in which 7,300,000 RSUs were granted to certain executives,
directors and key employees during the three months ended December
31, 2014. Out of 7,300,000 RSUs granted, 7,080,000 Shares were then
issued and deposited into a Trust.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-cord-blood-corporation-reports-financial-results-for-the-fourth-quarter-and-full-year-of-fiscal-2015-300101224.html
SOURCE China Cord Blood Corporation