Added 20,566 New Subscribers in 4Q17
4Q17 Revenue Amounted to RMB202.0
Million ($29.3 Million)
4Q17 Operating Income Amounted to
RMB56.3 Million ($8.2 Million)
Conference Call to be Held on June 22, 2017 at
8:00 a.m. ET
HONG KONG, June 21, 2017 /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 the fiscal year 2017 ended March 31, 2017.
Fourth Quarter of Fiscal 2017
Highlights
- Revenues for the fourth quarter of fiscal 2017 increased by
28.8% to RMB202.0 million
($29.3 million) from RMB156.8 million in the prior year period, partly
attributed to the relatively low comparison base in the prior year
period.
- New subscribers and accumulated subscriber base were 20,566 and
575,0401
respectively.
- Gross profit increased to RMB161.0
million ($23.4 million) from
RMB122.2 million in the prior year
period. Gross margin increased to 79.7% from 77.9% in the prior
year period.
- Operating income increased by 42.0% to RMB56.3 million ($8.2
million).
- Operating income before depreciation and amortization and
share-based compensation expenses increased by 26.1% to
RMB84.7 million ($12.3 million).2
- Interest expense was RMB30.2
million ($4.4 million),
compared to RMB28.0 million in the
prior year period.
- Income tax benefit of RMB3.9
million ($0.6 million) was
recorded in the fourth quarter of fiscal 2017 as a result of the
reversal of provision for income tax.
- Net income attributable to the Company's shareholders increased
to RMB37.9 million ($5.5 million) from RMB8.2
million in the prior year period.
- Net cash provided by operating activities for the fourth
quarter of fiscal 2017 amounted to RMB200.5
million ($29.1 million).
Full Year of Fiscal 2017 Highlights
- Revenues for the full year of fiscal 2017 increased by 14.6% to
RMB760.0 million ($110.4 million).
- New subscriber sign-ups reached 74,952 and accumulated
subscriber base expanded to 575,0401.
- Gross profit increased by 19.1% to RMB617.3 million ($89.7
million) from RMB518.4 million
in the prior year.
- Operating income increased by 38.4% to RMB264.9 million ($38.5
million) from RMB191.3 million
in the prior year.
- Operating income before depreciation and amortization and
share-based compensation expenses increased to RMB377.6 million ($54.9
million) from RMB300.2 million
in the prior year, a year-on-year increase of 25.8%.2
- Interest expense was RMB119.4
million ($17.3 million),
compared to RMB108.0 million in the
prior year.
- Net income attributable to the Company's shareholders increased
by 38.7% to RMB126.2 million
($18.3 million) from RMB91.0 million in the prior year.
- Net cash provided by operating activities for the full year of
fiscal 2017 increased by 9.7% to RMB637.6
million ($92.6 million) from
RMB581.0 million in the prior
year.
"In fiscal 2017, we successfully added 74,952 new subscribers to
our accumulated subscriber base with the Guangdong market as the main driver of growth.
We added 20,566 new subscribers in the fourth quarter, a
year-over-year increase of 42.1%, partially aided by a lower
comparison in the prior year period. Our accumulated subscriber
base expanded to 575,0401, which
underscores our position as
a leading provider in China's cord blood banking industry," Ms. Ting
Zheng, Chief Executive Officer of CCBC, commented.
"Looking ahead, we expect an increase in the number of newborn
babies in 2018, yet consumer discretionary spending will continue
to be constrained. To further grow our subscription base and
penetrate markets, we will utilize new media and marketing methods
to continue improving new subscriber awareness of the value of cord
blood storage. Meanwhile, the management team will proactively
explore various cooperation and business opportunities to best
serve our clients' maternal needs throughout the prenatal and
postnatal periods. In doing so, we will leverage our existing
resources and core competencies to develop more comprehensive
preventive healthcare measures."
Summary – Fourth Quarter and Full
Year Ended March 31, 2016
and 2017
|
|
Three Months Ended
March 31,
|
|
Year Ended
March 31,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
(In
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Revenues
|
|
156,778
|
|
201,998
|
|
29,347
|
|
662,999
|
|
759,978
|
|
110,411
|
|
Gross Profit
|
|
122,184
|
|
160,979
|
|
23,388
|
|
518,401
|
|
617,338
|
|
89,688
|
|
Other Operating
Income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
26,316
|
|
3,823
|
|
Operating
Income3
|
|
39,671
|
|
56,316
|
|
8,182
|
|
191,330
|
|
264,865
|
|
38,480
|
|
Interest
Expense
|
|
(27,991)
|
|
(30,190)
|
|
(4,386)
|
|
(107,967)
|
|
(119,418)
|
|
(17,349)
|
|
Net Income Attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the
Company's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
8,244
|
|
37,940
|
|
5,511
|
|
90,970
|
|
126,190
|
|
18,333
|
|
Earnings per Ordinary
Share
– Basic and Diluted4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(RMB/US$)
|
|
0.18
|
|
0.45
|
|
0.07
|
|
1.25
|
|
1.59
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing
Fees
|
|
59.2 %
|
|
64.4%
|
|
|
|
63.3 %
|
|
63.4 %
|
|
|
|
Storage Fees
|
|
40.8 %
|
|
35.6 %
|
|
|
|
36.7 %
|
|
36.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
|
14,472
|
|
20,566
|
|
|
|
62,909
|
|
74,952
|
|
|
|
Total Accumulated
Subscribers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(persons)
|
|
504,268
|
|
575,0401
|
|
|
|
504,268
|
|
575,0401
|
|
|
|
Summary – Selected Cash Flow Statement Items
|
|
Three Months Ended
March 31,
|
|
Year Ended
March 31,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
(In
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Net cash provided
by
operating
activities
|
|
138,874
|
|
200,537
|
|
29,135
|
|
580,997
|
|
637,632
|
|
92,636
|
|
Net cash used in
investing
activities
|
|
(1,147)
|
|
(5,979)
|
|
(869)
|
|
(16,480)
|
|
(90,575)
|
|
(13,158)
|
|
Net cash used in
financing
activities
|
|
(1,646)
|
|
-
|
|
-
|
|
(1,646)
|
|
(60,000)
|
|
(8,717)
|
|
Fourth Quarter of Fiscal 2017 Financial Results
REVENUES. Revenues in the fourth quarter of fiscal
2017 increased by 28.8% to RMB202.0
million ($29.3 million) from
RMB156.8 million in the prior year
period, mainly driven by an increase in new subscribers backed by
strong growth in the Guangdong
market. The strong year-over-year growth rate was also partly
attributable to the relatively low comparison base in the prior
year period.
20,566 new subscriber sign-ups were recorded during the
reporting quarter, representing 42.1% year-over-year growth and
factoring in the low comparison base of the prior year period.
Revenues generated from processing fees in the fourth quarter
increased by 40.3% to RMB130.2
million ($18.9 million) from
RMB92.8 million in the prior year
period. As a percentage of revenues, revenues generated from
processing fees accounted for 64.4%, compared to 59.2% in the prior
year period.
Revenues generated from storage fees increased to RMB71.8 million ($10.4
million), up 12.2% from RMB64.0
million in the prior year period. The Company's accumulated
subscriber base reached 575,0401 by the end of
March 2017. Storage fees accounted
for 35.6% of the total revenues, compared to 40.8% in the prior
year period.
GROSS PROFIT. Gross profit for the fourth quarter
of fiscal 2017 increased to RMB161.0
million ($23.4 million) from
RMB122.2 million in the prior year
period, a year-on-year growth of 31.8%. Gross margin was 79.7% in
the reporting quarter, up from 77.9% in the prior year period.
Higher revenue and economy of scale lifted the gross margin.
OPERATING INCOME. Operating income for the fourth
quarter increased by 42.0% to RMB56.3
million ($8.2 million),
compared to RMB39.7 million in the
prior year period. Top line growth was partially offset by
increased sales and marketing efforts but still fueled operating
margin expansion from 25.3% in the prior year period to 27.9% in
the reporting quarter. Depreciation and amortization expenses for
the fourth quarter were RMB12.6
million ($1.8 million),
compared to RMB12.4 million in the
prior year period. Share-based compensation expense was
RMB15.7 million ($2.3 million), compared to RMB15.1 million in the prior year period. The
increase of share-based compensation expense was mainly
attributable to the depreciation of Renminbi against U.S. dollar.
Operating income before depreciation and amortization and
share-based compensation expenses increased by 26.1% to
RMB84.7 million ($12.3 million) from RMB67.1 million in the prior year
period.2
Research and Development Expenses. Research and
development expenses amounted to RMB3.2
million ($0.5 million)
compared to RMB2.3 million in the
prior year period.
Sales and Marketing Expenses. Sales and marketing
expenses for the fourth quarter amounted to RMB53.7 million ($7.8
million), compared to RMB37.2
million in the prior year period. The increase was mainly
attributable to an additional performance incentive of RMB5.2 million ($0.8
million) for the contribution of the Guangdong sales team and to a lesser extent,
additional promotion expense relating to a new marketing campaigns
on social media. As a percentage of revenues, sales and marketing
expenses were 26.6%, compared to 23.7% in the prior year
period.
General and Administrative Expenses. General and
administrative expenses for the fourth quarter increased modestly
to RMB47.8 million ($6.9 million) from RMB43.0
million in the prior year period while decreased by 5.5%
quarter-over-quarter from RMB50.6
million in the prior quarter. During the three months ended
March 31, 2017, the Company recorded
a RMB1.0 million ($0.1 million) write-off of accounts receivable
because the recoverability of 268 private cord blood banking
subscribers was considered low. As a percentage of revenues,
general and administrative expenses were 23.7%, down from 27.4% in
the prior year period.
OTHER INCOME AND EXPENSES.
Interest Expense. Interest expense was mainly
related to the Company's outstanding convertible notes. In the
reporting quarter, the Company incurred interest expense of
RMB30.2 million ($4.4 million), compared to RMB28.0 million in the prior year period. The
increase was due to the compounding interest effect of the
convertible notes and the translation difference arising from the
depreciation of Renminbi against U.S. dollar. Subsequent to the end
of the fourth quarter of fiscal 2017, all outstanding convertible
notes were converted into an aggregate of 40,521,494 ordinary
shares.
INCOME TAX (EXPENSE)/BENEFIT. Income tax benefit
of RMB3.9 million ($0.6 million) was recorded in the fourth quarter
of fiscal 2017 as a result of the reversal of provision for income
tax of RMB18.2 million ($2.6 million) made in the reporting quarter.
Excluding the effect of the reversal, income tax expense was
RMB14.3 million ($2.1 million), compared to RMB8.6 million in the prior year period.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. Net income attributable to the Company's
shareholders for the fourth quarter of fiscal 2017 increased to
RMB37.9 million ($5.5 million) from RMB8.2
million in the prior year period. Net margin for the fourth
quarter of fiscal 2017 increased to 18.8% from 5.3% in the prior
year period.
EARNINGS PER SHARE. Basic and diluted earnings per
ordinary share for the fourth quarter of fiscal 2017 were
RMB0.45 ($0.07)5, up from RMB0.18 in the prior year period.
LIQUIDITY. As of March 31,
2017, the Company had cash and cash equivalents of
RMB3,510.3 million ($510.0 million), up from RMB3,008.4 million as of March 31, 2016. The Company had total
debt6 of RMB1,031.2
million ($149.8 million) as of
March 31, 2017. Net cash provided by
operating activities for the fourth quarter of fiscal 2017 amounted
to RMB200.5 million ($29.1 million).
Full Year of Fiscal 2017 Financial Results
For the full year of fiscal 2017, total revenues increased by
14.6% to RMB760.0 million
($110.4 million) from RMB663.0 million in the prior year. The increase
was mainly attributable to the growth in processing and storage
revenues contributed by the increased new subscriber number of
74,952 for the reporting fiscal year and the enlarged subscriber
base of 575,0401 as of March 31,
2017. Revenues from processing fees and storage fees grew by
14.8% and 14.3%, respectively.
Gross profit increased by 19.1% to RMB617.3 million ($89.7
million) from RMB518.4 million
in the prior year as a result of revenue growth and a recognition
of RMB16.8 million ($2.4 million) consideration from consultation
services related to the usage of cord blood processing devices and
consumables, which was recorded as a reduction of direct costs.
Operating income increased to RMB264.9
million ($38.5 million) from
RMB191.3 million in the prior year, a
year-on-year increase of 38.4%, attributed to a higher gross profit
and other operating income of RMB26.3
million ($3.8 million) from a
public bank collaboration project, which was partially offset by
the increased operating expenses. Operating income before
depreciation and amortization and share-based compensation expenses
increased by 25.8% to RMB377.6
million ($54.9 million) from
RMB300.2 million in the prior
year.2
Combining the effects of increased operating income and lower
income tax expenses, which was driven by the reversal of provision
for income tax and partially offset by lower dividend income, net
income attributable to the Company's shareholders increased by
38.7% to RMB126.2 million
($18.3 million) from RMB91.0 million in the prior year.
Basic and diluted earnings per share attributable to ordinary
shares were RMB1.59 ($0.23), compared to RMB1.25 in the prior year.
Net cash provided by operating activities in the full year of
fiscal 2017 increased to RMB637.6
million ($92.6 million) from
RMB581.0 million in the prior
year.
Recent Developments
- On April 6, 2017, the holder of
all outstanding convertible notes converted such securities in
ordinary shares of the Company at a conversion price of
$2.838 per share. The conversion
resulted in an issuance of 40,521,494 ordinary shares of the
Company. Subsequent to such conversion, the Company has no
outstanding convertible notes.
- On April 13, 2017, the Board of
Directors (the "Board") adopted the recommendation of the special
committee of independent directors (the "Special Committee"),
formed to evaluate the previously announced proposal received from
Golden Meditech Holdings Limited ("Golden Meditech"), pursuant to
which Golden Meditech proposed to acquire all of the outstanding
ordinary shares of the Company not already directly or indirectly
owned by Golden Meditech, to terminate any further evaluation and
negotiation regarding such proposal. In making its
recommendation, the Special Committee had taken into account
various factors including but not limited to the pending
acquisition transaction between an affiliate of Golden Meditech and
Nanjing Ying Peng Hui Kang Medical Industry Investment Partnership
(limited partnership) ("NJYP"), pursuant to which an affiliate of
Golden Meditech has conditionally agreed to sell to NJYP an
approximate 65.4% equity interest in the Company on a fully diluted
basis for RMB5.764 billion in cash,
NJYP's future plans regarding the Company after the acquisition is
completed and the overall viability of the proposal. The Special
Committee's recommendation was unanimous and the adoption of its
recommendation by the full Board of the Company was unanimous, with
the chairman Mr. Yuen Kam abstaining.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on Thursday,
June 22, 2017 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 1-719-325-2226 or 1-888-394-8218 for US
callers, or +852-3008-1527 for Hong
Kong callers, access code: 5571545.
Use of Non-GAAP Financial Measures
GAAP results for the three months and year ended March 31, 2017 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.
1 During
the three months and year ended March 31, 2017, 20,566 and 74,952
new subscribers were recruited, respectively. During the three
months and year ended March 31, 2017, the Company reclassified 268
and 4,180 private cord blood units as donated cord blood units
after the Company determined that the recoverability of these prior
private cord blood banking subscribers was low and therefore the
Company terminated their subscription services according to the
subscription contracts. 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 575,040 as of March 31, 2017.
|
|
2 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").
|
|
3 The
reported operating income for the three months and year ended March
31, 2016 and 2017 included the following:
|
|
(i)
Depreciation and amortization expenses for the three months ended
March 31, 2016 and 2017 were RMB12.4 million and RMB12.6 million
($1.8 million). Depreciation and amortization expenses for the year
ended March 31, 2016 and 2017 were RMB50.2 million and RMB50.5
million ($7.3 million); and
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|
(ii) During the
quarter ended December 31, 2014, the Company granted a total of
7,300,000 restricted share units ("RSU") to certain executives,
directors and key employees under the Company's RSU scheme, subject
to certain performance conditions. Share-based compensation
expenses related to this RSU scheme were RMB15.1 million and
RMB15.7 million ($2.3 million) for the three months ended March 31,
2016 and 2017. Share-based compensation expenses for the year ended
March 31, 2016 and 2017 were RMB58.7 million and RMB62.2 million
($9.0 million).
|
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4 The
terms of the convertible notes provide the holder 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 RMB0.07 ($0.01) and RMB0.14 ($0.02)
per share for the three months and year ended March 31, 2017,
respectively.
|
|
5 Out of
7,300,000 RSUs granted to certain executives, directors and key
employees under the Company's RSU scheme during the quarter ended
December 31, 2014, 7,080,000 ordinary shares ("Shares") were then
issued and deposited into a trust sponsored and funded by the
Company ("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.
Taking into account of such Shares, in addition to 73,003,248
outstanding shares, basic and diluted earnings per ordinary share
would be RMB0.43 ($0.06) and RMB1.50 ($0.2) for the three months
and year ended March 31, 2017, respectively.
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6 Total
debt represented the carrying amount of convertible notes, net as
of March 31, 2017 and carrying amounts of bank loan and convertible
notes, net as of March 31, 2016.
|
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 no new licenses will be granted before 2020 in addition
to the seven licenses 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 the relaxation of 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; the proposed transactions
between an affiliate of Golden Meditech and NJYP; 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, 2017 were made at the noon
buying rate of RMB6.8832 to
$1.00 on March
31, 2017 in the City of New
York for cable transfers in Renminbi per U.S. dollar as
certified for customs purposes by the Federal Reserve Bank of
New York. China Cord Blood
Corporation makes no representation that the Renminbi or U.S.
dollar amounts referred to in this press release could have been or
could be converted into U.S. dollars or Renminbi, at any particular
rate or at all.
For more information, please contact:
China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com
ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com
EXHIBIT
1
|
|
|
|
|
|
|
CHINA CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
As of March 31, 2016
and 2017
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands except share
data)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
3,008,422
|
|
3,510,264
|
|
509,976
|
Accounts receivable,
less allowance for
doubtful accounts (March 31, 2016:
RMB38,261; March 31, 2017: RMB46,858
(US$6,808))
|
|
124,645
|
|
112,533
|
|
16,349
|
Inventories
|
|
28,326
|
|
30,987
|
|
4,502
|
Prepaid expenses and
other receivables
|
|
24,412
|
|
17,524
|
|
2,546
|
Total current
assets
|
|
3,185,805
|
|
3,671,308
|
|
533,373
|
Property, plant and
equipment, net
|
|
574,567
|
|
551,434
|
|
80,113
|
Non-current
deposits
|
|
218,379
|
|
237,487
|
|
34,502
|
Non-current accounts
receivable, less
allowance for doubtful accounts
(March 31, 2016: RMB62,633;
March 31, 2017: RMB70,744 (US$10,278))
|
|
165,011
|
|
135,148
|
|
19,634
|
Inventories
|
|
64,322
|
|
68,775
|
|
9,992
|
Intangible assets,
net
|
|
111,307
|
|
106,686
|
|
15,499
|
Available-for-sale
equity securities
|
|
162,734
|
|
200,790
|
|
29,171
|
Other
investment
|
|
189,129
|
|
189,129
|
|
27,477
|
Deferred tax
assets
|
|
16,673
|
|
22,155
|
|
3,219
|
Total
assets
|
|
4,687,927
|
|
5,182,912
|
|
752,980
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank loan
|
|
60,000
|
|
-
|
|
-
|
Convertible notes,
net
|
|
-
|
|
1,031,154
|
|
149,807
|
Accounts
payable
|
|
13,248
|
|
11,060
|
|
1,607
|
Accrued expenses and
other payables
|
|
61,304
|
|
65,162
|
|
9,467
|
Deferred
revenue
|
|
257,692
|
|
323,690
|
|
47,026
|
Amounts due to
related parties
|
|
53,255
|
|
4,679
|
|
680
|
Income tax
payable
|
|
8,524
|
|
11,383
|
|
1,654
|
Total current
liabilities
|
|
454,023
|
|
1,447,128
|
|
210,241
|
Convertible notes,
net
|
|
906,222
|
|
-
|
|
-
|
Non-current deferred
revenue
|
|
1,321,239
|
|
1,569,579
|
|
228,030
|
Other non-current
liabilities
|
|
255,932
|
|
302,233
|
|
43,909
|
Deferred tax
liabilities
|
|
37,086
|
|
21,423
|
|
3,112
|
Total
liabilities
|
|
2,974,502
|
|
3,340,363
|
|
485,292
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders'
equity of China Cord Blood Corporation
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
|
- US$0.0001 par
value, 250,000,000 shares authorized,
73,140,147 shares issued and 73,003,248 shares
outstanding
as of March 31, 2016 and 2017, respectively
|
|
50
|
|
50
|
|
7
|
Additional paid-in
capital
|
|
873,654
|
|
936,417
|
|
136,044
|
Treasury stock, at
cost
(March 31, 2016 and
2017: 136,899 shares,
respectively)
|
|
(2,815)
|
|
(2,815)
|
|
(409)
|
Accumulated other
comprehensive income
|
|
84,779
|
|
24,428
|
|
3,549
|
Retained
earnings
|
|
753,585
|
|
879,775
|
|
127,815
|
Total equity
attributable to China Cord Blood Corporation
|
|
1,709,253
|
|
1,837,855
|
|
267,006
|
Non-controlling
interests
|
|
4,172
|
|
4,694
|
|
682
|
Total
equity
|
|
1,713,425
|
|
1,842,549
|
|
267,688
|
Total liabilities
and equity
|
|
4,687,927
|
|
5,182,912
|
|
752,980
|
|
|
|
|
|
|
|
EXHIBIT
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
For the Three Months
and Year ended March 31, 2016 and 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
Year ended March
31,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
156,778
|
|
201,998
|
|
29,347
|
|
662,999
|
|
759,978
|
|
110,411
|
Direct
costs
|
|
(34,594)
|
|
(41,019)
|
|
(5,959)
|
|
(144,598)
|
|
(142,640)
|
|
(20,723)
|
Gross
profit
|
|
122,184
|
|
160,979
|
|
23,388
|
|
518,401
|
|
617,338
|
|
89,688
|
Operating
(expenses)/income
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(2,277)
|
|
(3,151)
|
|
(458)
|
|
(8,964)
|
|
(10,367)
|
|
(1,506)
|
Sales and
marketing
|
|
(37,221)
|
|
(53,683)
|
|
(7,799)
|
|
(148,155)
|
|
(178,482)
|
|
(25,930)
|
General and
administrative
|
|
(43,015)
|
|
(47,829)
|
|
(6,949)
|
|
(169,952)
|
|
(189,940)
|
|
(27,595)
|
Other operating
income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
26,316
|
|
3,823
|
Total operating
expenses, net
|
|
(82,513)
|
|
(104,663)
|
|
(15,206)
|
|
(327,071)
|
|
(352,473)
|
|
(51,208)
|
Operating
income
|
|
39,671
|
|
56,316
|
|
8,182
|
|
191,330
|
|
264,865
|
|
38,480
|
Other expenses,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
4,451
|
|
4,394
|
|
638
|
|
18,218
|
|
17,416
|
|
2,530
|
Interest
expense
|
|
(27,991)
|
|
(30,190)
|
|
(4,386)
|
|
(107,967)
|
|
(119,418)
|
|
(17,349)
|
Foreign currency
exchange losses
|
|
(13)
|
|
(158)
|
|
(23)
|
|
(972)
|
|
(38)
|
|
(6)
|
Dividend
income
|
|
-
|
|
-
|
|
-
|
|
49,198
|
|
45
|
|
7
|
Impairment loss
on
available-for-sale
equity
securities
|
|
-
|
|
-
|
|
-
|
|
(8,361)
|
|
(2,533)
|
|
(368)
|
Others
|
|
503
|
|
4,875
|
|
708
|
|
(113)
|
|
5,974
|
|
868
|
Total other
expenses, net
|
|
(23,050)
|
|
(21,079)
|
|
(3,063)
|
|
(49,997)
|
|
(98,554)
|
|
(14,318)
|
Income before
income tax
|
|
16,621
|
|
35,237
|
|
5,119
|
|
141,333
|
|
166,311
|
|
24,162
|
Income tax
(expense)/benefit
|
|
(8,590)
|
|
3,885
|
|
564
|
|
(50,000)
|
|
(37,622)
|
|
(5,466)
|
Net
income
|
|
8,031
|
|
39,122
|
|
5,683
|
|
91,333
|
|
128,689
|
|
18,696
|
Net loss/(income)
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
213
|
|
(1,182)
|
|
(172)
|
|
(363)
|
|
(2,499)
|
|
(363)
|
Net income
attributable to
China
Cord Blood
Corporation's
shareholders
|
|
8,244
|
|
37,940
|
|
5,511
|
|
90,970
|
|
126,190
|
|
18,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.18
|
|
0.45
|
|
0.07
|
|
1.25
|
|
1.59
|
|
0.23
|
-
Diluted
|
|
0.18
|
|
0.45
|
|
0.07
|
|
1.25
|
|
1.59
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive
(losses)/income, net of nil
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign
currency translation
adjustment
|
|
2,476
|
|
5,565
|
|
808
|
|
(19,124)
|
|
(22,309)
|
|
(3,241)
|
-
Unrealized holding (loss)/gain
|
|
|
|
|
|
|
|
|
|
|
|
|
in available-for-sale
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
- Unrealized
holding
(loss)/gain arising
during the period/year
|
|
(8,372)
|
|
14,519
|
|
2,109
|
|
32,312
|
|
(40,575)
|
|
(5,895)
|
-
Reclassification adjustment
for loss included in
net income
|
|
-
|
|
-
|
|
-
|
|
8,361
|
|
2,533
|
|
368
|
Total other
comprehensive
(losses)/income
|
|
(5,896)
|
|
20,084
|
|
2,917
|
|
21,549
|
|
(60,351)
|
|
(8,768)
|
Comprehensive
income
|
|
2,135
|
|
59,206
|
|
8,600
|
|
112,882
|
|
68,338
|
|
9,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss/(income)
attributable to non-controlling
interests
|
|
213
|
|
(1,182)
|
|
(172)
|
|
(363)
|
|
(2,499)
|
|
(363)
|
Comprehensive
income
attributable
to China Cord
Blood
Corporation's
shareholders
|
|
2,348
|
|
58,024
|
|
8,428
|
|
112,519
|
|
65,839
|
|
9,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA CORD BLOOD
CORPORATION
|
RECONCILIATION OF
NON-GAAP OPERATING INCOME
|
For the Three Months
and Year ended March 31, 2016 and 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
Year ended March
31,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP amount of
operating
income
|
|
39,671
|
|
56,316
|
|
8,182
|
|
191,330
|
|
264,865
|
|
38,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
expenses7
|
|
12,398
|
|
12,644
|
|
1,837
|
|
50,166
|
|
50,481
|
|
7,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
expense8
|
|
15,050
|
|
15,705
|
|
2,282
|
|
58,684
|
|
62,241
|
|
9,042
|
Non-GAAP operating
income
|
|
67,119
|
|
84,665
|
|
12,301
|
|
300,180
|
|
377,587
|
|
54,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7Depreciation
and amortization expenses relate to property, plant and equipment
and intangible assets respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8Share-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 quarter 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-2017-300477352.html
SOURCE China Cord Blood Corporation