- 3Q18 Added 24,229 New Subscribers
- 3Q18 Revenues Up 22.0% YOY to RMB245.0 Million ($37.7
Million)
- 3Q18 Operating Income Reached
RMB78.4 Million ($12.0 Million)
- Conference Call to be Held on February 27, 2018 at 8:00
a.m. ET
HONG KONG, Feb. 26, 2018 /PRNewswire/ -- China Cord Blood
Corporation (NYSE: CO) ("CCBC" or the "Company"), a leading cord
blood bank operator in China,
today announced its unaudited financial results for the third
quarter and first nine months of fiscal year 2018.
Third Quarter of Fiscal 2018 Highlights
- Revenues for the third quarter of fiscal 2018 increased by
22.0% to RMB245.0 million
($37.7 million) from RMB200.9 million in the prior year period.
- New subscribers and accumulated subscriber base were 24,229 and
640,3111, respectively.
- Gross profit in third quarter fiscal 2018 grew at a slower pace
of 12.7% to RMB198.2 million
($30.5 million), from RMB175.8 million last year because the Company
recorded a one-off reduction in direct costs of RMB16.8 million in the comparable fiscal quarter
last year.
- Third quarter fiscal 2018 operating income and operating income
before depreciation and amortization and share-based compensation
expenses2 were RMB78.4
million ($12.0 million) and
RMB110.8 million ($17.0 million), respectively. Aside from the
one-off reduction in direct costs, the Company also recorded
RMB26.3 million other operating
income in the comparable fiscal quarter last year. Therefore, third
quarter fiscal 2017 operating income and operating income before
depreciation and amortization and share-based compensation
expenses2 amounted to RMB101.7
million and RMB130.3 million,
respectively.
- Net income attributable to the Company's shareholders increased
by 25.0% to RMB69.9 million
($10.7 million) from RMB55.9 million in the prior year period as no
interest expense was incurred in this quarter.
- Net cash provided by operating activities for the third quarter
of fiscal 2018 increased to RMB182.7
million ($28.1 million) from
RMB169.8 million last year.
First Nine Months of Fiscal 2018 Highlights
- Revenues for the first nine months of fiscal 2018 increased by
26.1% to RMB703.8 million
($108.2 million).
- New subscriber sign-ups reached 70,399 and accumulated
subscriber base expanded to 640,3111.
- Gross profit increased by 24.1% to RMB566.5 million ($87.1
million).
- Operating income increased by 14.0% to RMB237.7 million ($36.5
million).
- Operating income before depreciation and amortization and
share-based compensation expenses2 increased to
RMB311.8 million ($47.9 million) from RMB292.9 million in the prior year period.
- Net income attributable to the Company's shareholders increased
to RMB206.6 million ($31.8 million) from RMB88.3 million in the prior year period.
- Net cash provided by operating activities for the first nine
months of fiscal 2018 was RMB624.4
million ($96.0 million), up
42.9% from last year period.
"In the reporting quarter, we continued to achieve pleasing
results led by outstanding performance in our Guangdong division and maintained our leading
position in the cord blood bank industry. We also rolled out pilot
programs to expand our channels beyond hospitals. Meanwhile, we
expect that the issuance of new policies to support and regulate
research on stem cell therapy will encourage and accelerate the
development of stem cell-related clinical applications, which will
boost cord blood storage demand over the long run," said Ms. Ting
Zheng, Chairperson and Chief Executive Officer of China Cord Blood
Corporation.
Summary – Third
Quarter and First Nine Months Ended December 31, 2016 and
2017
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Revenues
|
|
200,888
|
|
244,993
|
|
37,654
|
|
557,980
|
|
703,787
|
|
108,170
|
|
Gross
Profit
|
|
175,788
|
|
198,167
|
|
30,457
|
|
456,359
|
|
566,535
|
|
87,075
|
|
Other Operating
Income
|
|
26,316
|
|
-
|
|
-
|
|
26,316
|
|
-
|
|
-
|
|
Operating
Income3
|
|
101,670
|
|
78,380
|
|
12,046
|
|
208,549
|
|
237,669
|
|
36,530
|
|
Interest
Expense
|
|
(30,594)
|
|
-
|
|
-
|
|
(89,228)
|
|
(3,257)
|
|
(501)
|
|
Net Income
Attributable to
the
Company's
Shareholders
|
|
55,887
|
|
69,854
|
|
10,734
|
|
88,250
|
|
206,584
|
|
31,751
|
|
Earnings per Ordinary
Share
– Basic4 and Diluted
(RMB/US$)
|
|
0.70
|
|
0.61
|
|
0.09
|
|
1.14
|
|
1.83
|
|
0.28
|
|
Revenues Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing
Fees
|
|
64.5%
|
|
66.7%
|
|
|
|
63.0%
|
|
66.0%
|
|
|
|
Storage
Fees
|
|
35.5%
|
|
33.3%
|
|
|
37.0%
|
|
34.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
|
19,712
|
|
24,229
|
|
|
54,386
|
|
70,399
|
|
|
|
Total
Accumulated
Subscribers (persons)
|
|
554,742
|
|
640,3111
|
|
|
|
554,742
|
|
640,3111
|
|
|
|
Summary – Selected
Cash Flow Statement Items
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net cash provided
by
operating
activities
|
|
169,804
|
|
182,702
|
|
28,080
|
|
|
437,095
|
|
624,412
|
|
95,970
|
Net cash used
in
investing
activities
|
|
(316)
|
|
(25,342)
|
|
(3,895)
|
|
|
(84,596)
|
|
(47,359)
|
|
(7,279)
|
Net cash used
in
financing
activities
|
|
-
|
|
(2,015)
|
|
(310)
|
|
|
(60,000)
|
|
(2,015)
|
|
(310)
|
Third Quarter of Fiscal 2018 Financial Results
REVENUES. Revenues increased by 22.0% to
RMB245.0 million ($37.7 million) in the third quarter of fiscal
2018 from RMB200.9 million in the
prior year period. Revenues generated from processing fees and
other services in the third quarter of fiscal 2018 increased by
26.1% to RMB163.3 million
($25.1 million) from RMB129.5 million in the prior year period as a
result of the 24,229 new subscriber sign-ups recorded during the
reporting period, a 22.9% year-over-year growth. Revenues generated
from processing fees accounted for 66.7% of total revenues compared
to 64.5% in the prior year period.
Revenues generated from storage fees increased by 14.4% to
RMB81.7 million ($12.6 million) in the reporting quarter from
RMB71.4 million in the prior year
period. Accumulated subscriber base as of December 31, 2017 reached 640,3111.
Storage fee revenues accounted for 33.3% of total revenues compared
to 35.5% in the prior year period.
GROSS PROFIT. Gross profit for the third quarter
of fiscal 2018 grew by 12.7% to RMB198.2
million ($30.5 million) from
RMB175.8 million in the prior year
period. In the third quarter of fiscal 2017, the Company received
RMB16.8 million of consideration for
rendering a consultation service and such consideration was
recorded as a reduction of direct costs. No such consideration was
recorded in the third quarter of fiscal 2018. Excluding such
consideration, gross margin for the prior year period was 79.1%.
Benefiting from economies of scale, gross margin for the reporting
period increased to 80.9%.
OPERATING INCOME. Third quarter fiscal 2018
operating income and operating income before depreciation and
amortization and share-based compensation expenses2 were
RMB78.4 million ($12.0 million) and RMB110.8 million ($17.0
million), respectively. Third quarter fiscal 2017 operating
income and operating income before depreciation and amortization
and share-based compensation expenses2 amounted to
RMB101.7 million and RMB130.3 million, respectively. Third quarter
fiscal 2017 operating income included a one-off reduction of direct
costs of RMB16.8 million and an
RMB26.3 million other operating
income as a result of a public bank collaboration project, none of
which was recorded in the third quarter fiscal 2018.
Research and Development
Expenses. Research and development expenses amounted to
RMB2.9 million ($0.5 million) in the third quarter of fiscal
2018, similar to that of the same period last year.
Sales and Marketing
Expenses. Sales and marketing expenses for the third
quarter amounted to RMB60.0 million
($9.2 million), up 27.6% from
RMB47.0 million in the prior year
period. The growth was led by higher promotion and staff
remuneration costs. As a percentage of revenues, sales and
marketing expenses were 24.5% compared to 23.4% in the prior year
period.
General and Administrative
Expenses. General and administrative expenses for the third
quarter increased to RMB56.9 million
($8.7 million) from RMB50.6 million in the prior year period as a
result of higher share-based compensation expenses and account
receivables write-off. During the reporting quarter, the Company
recorded a write-off of RMB5.1
million ($0.8 million) in
accounts receivable because the Company determined that the
recoverability of these subscribers was low. General and
administrative expenses as a percentage of revenues declined to
23.2% from 25.2% in the prior year period.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. Income before income tax for the third
quarter of fiscal 2018 amounted to RMB85.8
million ($13.2 million)
compared to RMB73.3 million in the
prior year period as a result of the absences of interest expense
and impairment loss on available-for-sale equity securities. Income
tax expense for the reporting period was RMB15.6 million ($2.4
million). Net income attributable to the Company's
shareholders for the third quarter of fiscal 2018 increased by
25.0% to RMB69.9 million
($10.7 million) from RMB55.9 million in the prior year period. Net
margin for the third quarter of fiscal 2018 was 28.5%, up from
27.8% in the prior year period.
EARNINGS PER SHARE. Basic and diluted earnings per
ordinary share for the third quarter of fiscal 2018 was
RMB0.61 ($0.09)4 compared to RMB0.70 in the prior year period.
LIQUIDITY. As of December
31, 2017, the Company had cash and cash equivalents of
RMB4,078.3 million ($626.8 million), up from RMB3,510.3 million as of March 31, 2017. Total current and non-current
deferred revenues amounted to RMB2,169.0
million ($333.4 million) as of
December 31, 2017. Net cash provided
by operating activities for the third quarter of fiscal 2018
increased to RMB182.7 million
($28.1 million) from RMB169.8 million in the prior year period.
First Nine Months of Fiscal 2018 Financial Results
For the first nine months of fiscal year 2018, total revenues
increased by 26.1% to RMB703.8
million ($108.2 million) from
RMB558.0 million in the prior year
period as a result of strong growth in new subscriber sign-ups and
an enlarged client base. Revenues from processing fees and storage
fees grew by 32.1% and 16.0%, respectively. Gross profit increased
by 24.1% to RMB566.5 million
($87.1 million) from RMB456.4 million in the prior year period.
Operating income and operating income before depreciation and
amortization and share-based compensation expenses2 for
the nine months ended December 31,
2017 amounted to RMB237.7
million ($36.5 million) and
RMB311.8 million ($47.9 million), respectively, representing an
annual increase of 14.0% and 6.4%, respectively. Operating income
and operating income before depreciation and amortization and
share-based compensation expenses2 for the nine months
ended December 31, 2017 grew at a
slower pace as compared to the growth of revenues due to the
reasons including (i) an absence of direct costs reduction, (ii) an
absence of public bank collaboration project contribution, and
(iii) higher sales and marketing costs. Net income attributable to
the Company's shareholders totaled RMB206.6
million ($31.8 million). Basic
and diluted earnings per ordinary share increased to RMB1.83 ($0.28)
from RMB1.14 in the prior year
period. Net cash provided by operating activities in the first nine
months of fiscal 2018 increased to RMB624.4
million ($96.0 million) from
RMB437.1 million in the prior year
period.
Recent Developments
- On January 31, 2018, the Company
announced that Nanjing Ying Peng Hui Kang Medical Industry
Investment Partnership (limited partnership) ("Nanjing Ying Peng"),
via its subsidiary, had become a major shareholder of the Company.
Following the entry of Nanjing Ying Peng, its authorized
representative of the executive partner Mr. Ping Xu was appointed as a director of the Board
of Directors of the Company (the "Board"). Simultaneously, Mr. Yuen
Kam resigned from his positions as Chairman and director of the
Board and as Chairman and member of the Nominating and Corporate
Governance Committee (the "Nominating Committee") of the Company,
effective as of January 31, 2018.
Following Mr. Kam's resignation, Ms. Ting Zheng, Chief Executive
Officer of the Company, was appointed as the Chairperson of the
Board and the Chairperson of the Nominating Committee. Mr.
Mark Chen, one of the Company's
existing independent non-executive directors, also joined as a new
member of the Nominating Committee.
- On February 7, 2018, the Company
announced that the Board had approved seeking shareholder approval
regarding the change of the Company name from "China Cord Blood
Corporation" to "Global Cord Blood Corporation" to better reflect
the future development direction and business strategy of the
Company. The Company plans to hold an extraordinary general meeting
("EGM") for shareholders to approve the name change at its
Hong Kong office on 48/F, Bank of
China Tower, 1 Garden Road, Central, Hong
Kong, at 8:00 p.m. Hong Kong
Time on March 16, 2018 (8:00 a.m. U.S. Eastern Daylight Time on
March 16, 2018). Shareholders of
record as of February 27, 2018 will
be entitled to receive the notice and vote at the EGM.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on
Tuesday, February 27, 2018 to discuss
its financial performance and give a brief overview of the
Company's recent developments, followed by a question and answer
session. Interested parties can access the audio webcast through
the Company's IR website at http://ir.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 1-855-824-5644
or 1-646-722-4977 for US callers, or +852-3027-6500 for
Hong Kong callers, access code:
93146136#.
1 During the three months and nine months ended
December 31, 2017, 24,229 and 70,399
new subscribers were recruited, respectively. The Company
reclassified 4,598 and 5,128 private cord blood units as donated
cord blood units during the three months and nine months ended
December 31, 2017 after the Company
determined that the recoverability of these prior private cord
blood banking subscribers was low. Therefore, the Company
terminated their subscription services according to the
subscription contracts and these units are being treated as if they
were donated cord blood units and will be part of the Company's
non-current inventories. Hence, the net accumulated subscriber base
was 640,311 as of December 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 nine months ended December 31,
2016 and 2017 included the following:
(i) Depreciation and amortization expenses for the
three months ended December 31, 2016
and 2017 were RMB12.7 million and
RMB12.7 million ($1.9 million). Depreciation and amortization
expenses for the nine months ended December
31, 2016 and 2017 were RMB37.8
million and RMB37.8 million
($5.8 million); and
(ii) As of December 31,
2017, a total of 7,300,000 restricted share units ("RSU")
were issued and outstanding under the Company's RSU scheme, subject
to certain performance conditions. Share-based compensation
expenses related to this RSU scheme were RMB15.9 million and RMB19.8 million ($3.0
million) for the three months ended December 31, 2016 and 2017. Share-based
compensation expenses for the nine months ended December 31, 2016 and 2017 were RMB46.5 million and RMB36.4 million ($5.6
million).
4 Out of 7,300,000 RSUs issued and outstanding as of
December 31, 2017, 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 113,524,742 outstanding shares (73,003,248 outstanding
shares for the three and nine months ended December 31, 2016), basic and diluted earnings
per ordinary share would be RMB0.67
and RMB0.58 ($0.09) for the three months ended December 31, 2016 and 2017, and RMB1.07 and RMB1.73
($0.27) for the nine months ended
December 31, 2016 and 2017,
respectively.
Use of Non-GAAP Financial Measures
GAAP results for the three months and nine months ended
December 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 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 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,
the presence of a new majority shareholder, as well as general
economic conditions; and other relevant risks detailed in the
Company's filings with the Securities and Exchange Commission in
the United States.
This announcement contains translations of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars as of and for the periods ending
December 31, 2017 were made at the
noon buying rate of RMB6.5063 to
$1.00 on December 29, 2017 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
China Cord Blood Corporation makes no representation that the
Renminbi or U.S. dollar amounts referred to in this press release
could have been or could be converted into U.S. dollars or
Renminbi, at any particular rate or at all.
For more information, please contact:
China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com
ICR, Inc.
William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com
EXHIBIT 1
CHINA CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
As of March 31 and
December 31, 2017
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2017
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands
except share data)
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
3,510,264
|
|
4,078,303
|
|
626,823
|
|
Accounts receivable,
less allowance for doubtful
|
|
|
|
|
|
|
accounts
(March 31, 2017: RMB46,858;
|
|
|
|
|
|
|
December 31,
2017: RMB52,036 (US$7,998))
|
112,533
|
|
108,908
|
|
16,739
|
|
Inventories
|
30,987
|
|
35,270
|
|
5,420
|
|
Prepayments and other
receivables - Third
|
|
|
|
|
|
|
parties
|
17,524
|
|
23,262
|
|
3,576
|
|
Prepayments and other
receivables - Related
|
|
|
|
|
|
|
parties
|
-
|
|
2,284
|
|
351
|
|
Total current
assets
|
3,671,308
|
|
4,248,027
|
|
652,909
|
|
Property, plant and
equipment, net
|
551,434
|
|
556,757
|
|
85,572
|
|
Non-current deposits
- Third parties
|
237,487
|
|
222,633
|
|
34,218
|
|
Non-current deposits
- Related party
|
-
|
|
8,500
|
|
1,306
|
|
Non-current accounts
receivable, less
|
|
|
|
|
|
|
allowance for
doubtful accounts
|
|
|
|
|
|
|
(March 31,
2017: RMB70,744; December 31,
|
|
|
|
|
|
|
2017:
RMB65,922 (US$10,132))
|
135,148
|
|
111,053
|
|
17,069
|
|
Inventories
|
68,775
|
|
70,854
|
|
10,890
|
|
Intangible assets,
net
|
106,686
|
|
103,221
|
|
15,865
|
|
Available-for-sale
equity securities
|
200,790
|
|
162,628
|
|
24,995
|
|
Other
investment
|
189,129
|
|
189,129
|
|
29,069
|
|
Deferred tax
assets
|
22,155
|
|
23,701
|
|
3,643
|
|
Total
assets
|
5,182,912
|
|
5,696,503
|
|
875,536
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Convertible notes,
net
|
1,031,154
|
|
-
|
|
-
|
|
Accounts
payable
|
11,060
|
|
13,535
|
|
2,080
|
|
Accrued expenses and
other payables
|
65,162
|
|
76,630
|
|
11,778
|
|
Deferred
revenue
|
323,690
|
|
359,545
|
|
55,261
|
|
Amount due to a
related party
|
4,679
|
|
-
|
|
-
|
|
Income tax
payable
|
11,383
|
|
8,309
|
|
1,277
|
|
Total current
liabilities
|
1,447,128
|
|
458,019
|
|
70,396
|
|
Non-current deferred
revenue
|
1,569,579
|
|
1,809,408
|
|
278,101
|
|
Other non-current
liabilities
|
302,233
|
|
346,738
|
|
53,292
|
|
Deferred tax
liabilities
|
21,423
|
|
20,864
|
|
3,207
|
|
Total
liabilities
|
3,340,363
|
|
2,635,029
|
|
404,996
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders'
equity of China Cord
|
|
|
|
|
|
|
Blood
Corporation
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
|
-
US$0.0001 par value, 250,000,000 shares
authorized,
73,140,147 shares issued and
73,003,248 shares
outstanding as of March
31, 2017 and
113,661,641 shares issued and
113,524,742 shares
outstanding as of
|
|
|
|
|
|
|
December 31,
2017
|
50
|
|
78
|
|
12
|
|
Additional paid-in
capital
|
936,417
|
|
2,006,694
|
|
308,424
|
|
Treasury stock, at
cost (March 31 and
|
|
|
|
|
|
|
December 31,
2017: 136,899 shares,
|
|
|
|
|
|
|
respectively)
|
(2,815)
|
|
(2,815)
|
|
(433)
|
|
Accumulated other
comprehensive income/
|
|
|
|
|
|
|
(loss)
|
24,428
|
|
(35,744)
|
|
(5,494)
|
|
Retained
earnings
|
879,775
|
|
1,086,359
|
|
166,970
|
|
Total equity
attributable to China Cord
|
|
|
|
|
|
|
Blood
Corporation
|
1,837,855
|
|
3,054,572
|
|
469,479
|
|
Non-controlling
interests
|
4,694
|
|
6,902
|
|
1,061
|
|
Total
equity
|
1,842,549
|
|
3,061,474
|
|
470,540
|
|
Total liabilities
and equity
|
5,182,912
|
|
5,696,503
|
|
875,536
|
|
EXHIBIT 2
CHINA CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
For the Three Months
and Nine Months ended December 31, 2016 and 2017
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Nine months ended
December 31,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
200,888
|
|
244,993
|
|
37,654
|
|
557,980
|
|
703,787
|
|
108,170
|
|
Direct costs
|
|
(25,100)
|
|
(46,826)
|
|
(7,197)
|
|
(101,621)
|
|
(137,252)
|
|
(21,095)
|
|
Gross
profit
|
|
175,788
|
|
198,167
|
|
30,457
|
|
456,359
|
|
566,535
|
|
87,075
|
|
Operating
(expenses)/income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(2,890)
|
|
(2,930)
|
|
(450)
|
|
(7,216)
|
|
(9,273)
|
|
(1,425)
|
|
Sales and
marketing
|
|
(46,965)
|
|
(59,947)
|
|
(9,214)
|
|
(124,799)
|
|
(159,549)
|
|
(24,522)
|
|
General and
administrative
|
|
(50,579)
|
|
(56,910)
|
|
(8,747)
|
|
(142,111)
|
|
(160,044)
|
|
(24,598)
|
|
Other operating
income
|
|
26,316
|
|
-
|
|
-
|
|
26,316
|
|
-
|
|
-
|
|
Total operating
expenses, net
|
|
(74,118)
|
|
(119,787)
|
|
(18,411)
|
|
(247,810)
|
|
(328,866)
|
|
(50,545)
|
|
Operating
income
|
|
101,670
|
|
78,380
|
|
12,046
|
|
208,549
|
|
237,669
|
|
36,530
|
|
Other
(expenses)/income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
4,307
|
|
5,416
|
|
832
|
|
13,022
|
|
16,033
|
|
2,464
|
|
Interest
expense
|
|
(30,594)
|
|
-
|
|
-
|
|
(89,228)
|
|
(3,257)
|
|
(501)
|
|
Foreign currency
exchange gains
|
|
-
|
|
7
|
|
1
|
|
120
|
|
118
|
|
18
|
|
Dividend
income
|
|
45
|
|
634
|
|
97
|
|
45
|
|
634
|
|
97
|
|
Impairment loss
on available-for-sale
equity
securities
|
|
(2,533)
|
|
-
|
|
-
|
|
(2,533)
|
|
-
|
|
-
|
|
Others
|
|
371
|
|
1,405
|
|
216
|
|
1,099
|
|
3,547
|
|
545
|
|
Total other
(expenses)/
income, net
|
|
(28,404)
|
|
7,462
|
|
1,146
|
|
(77,475)
|
|
17,075
|
|
2,623
|
|
Income before income
tax
|
|
73,266
|
|
85,842
|
|
13,192
|
|
131,074
|
|
254,744
|
|
39,153
|
|
Income tax
expense
|
|
(17,192)
|
|
(15,639)
|
|
(2,404)
|
|
(41,507)
|
|
(45,885)
|
|
(7,052)
|
|
Net
income
|
|
56,074
|
|
70,203
|
|
10,788
|
|
89,567
|
|
208,859
|
|
32,101
|
|
Net income attributable
to
non-controlling interests
|
|
(187)
|
|
(349)
|
|
(54)
|
|
(1,317)
|
|
(2,275)
|
|
(350)
|
|
Net income
attributable to
China Cord Blood Corporation's
shareholders
|
|
55,887
|
|
69,854
|
|
10,734
|
|
88,250
|
|
206,584
|
|
31,751
|
|
Earnings per
share: Attributable to ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.70
|
|
0.61
|
|
0.09
|
|
1.14
|
|
1.83
|
|
0.28
|
|
-
Diluted
|
|
0.70
|
|
0.61
|
|
0.09
|
|
1.14
|
|
1.83
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive losses,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of nil
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign
currency translation
adjustments
|
|
(19,514)
|
|
(12,961)
|
|
(1,992)
|
|
(27,874)
|
|
(33,068)
|
|
(5,082)
|
|
- Unrealized
holding (losses)/
gains in available-for-sale
equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Unrealized holding (losses)/
gains arising during the period
|
|
(38,117)
|
|
3,383
|
|
520
|
|
(55,094)
|
|
(27,104)
|
|
(4,166)
|
|
-
Reclassification adjustment for
losses included in net income
|
|
2,533
|
|
-
|
|
-
|
|
2,533
|
|
-
|
|
-
|
|
Total other
comprehensive losses
|
|
(55,098)
|
|
(9,578)
|
|
(1,472)
|
|
(80,435)
|
|
(60,172)
|
|
(9,248)
|
|
Comprehensive
income
|
|
976
|
|
60,625
|
|
9,316
|
|
9,132
|
|
148,687
|
|
22,853
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling interests
|
|
(187)
|
|
(349)
|
|
(54)
|
|
(1,317)
|
|
(2,275)
|
|
(350)
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to China Cord
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Blood
Corporation's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
|
789
|
|
60,276
|
|
9,262
|
|
7,815
|
|
146,412
|
|
22,503
|
|
EXHIBIT 3
CHINA CORD BLOOD
CORPORATION
|
RECONCILIATION OF
NON-GAAP OPERATING INCOME
|
For the Three Months
and Nine Months ended December 31, 2016 and 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Nine months ended
December 31,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP amount of
operating income
|
|
101,670
|
|
78,380
|
|
12,046
|
|
208,549
|
|
237,669
|
|
36,530
|
|
Depreciation and
amortization expenses5
|
|
12,690
|
|
12,660
|
|
1,946
|
|
37,837
|
|
37,766
|
|
5,805
|
|
Share-based compensation
expense6
|
|
15,931
|
|
19,757
|
|
3,037
|
|
46,536
|
|
36,379
|
|
5,592
|
|
Non-GAAP operating
income
|
|
130,291
|
|
110,797
|
|
17,029
|
|
292,922
|
|
311,814
|
|
47,927
|
|
5 Depreciation and amortization expenses relate to
property, plant and equipment and intangible assets
respectively.
6 Share-based compensation expense relates to the
Company's RSU scheme in which 7,300,000 RSUs were issued and
outstanding as of December 31,
2017.
View original
content:http://www.prnewswire.com/news-releases/china-cord-blood-corporation-reports-financial-results-for-the-third-quarter-and-first-nine-months-of-fiscal-2018-300603873.html
SOURCE China Cord Blood Corporation