Added 22,194 New Subscribers in
4Q19
4Q19 Revenues Increased by 8.0% YoY to RMB251.7 Million ($37.5
Million)
4Q19 Operating Income
Increased to RMB88.9 Million
($13.2 Million)
Conference Call to be Held
on June 19, 2019 at
8:00 a.m. ET
HONG KONG, June 18, 2019 /PRNewswire/ -- Global Cord Blood
Corporation (NYSE: CO) ("GCBC" 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 unaudited
financial results for the fourth quarter and full year of fiscal
year 2019 ended March 31, 2019.
Fourth Quarter of Fiscal 2019
Highlights
- Fourth quarter revenues increased by 8.0% year over year
("YoY") to RMB251.7 million
($37.5 million).
- New subscribers were 22,194, and the accumulated subscriber
base expanded to 750,273[1].
- Gross profit increased by 8.2% YoY to RMB204.3 million ($30.4
million). Gross margin increased slightly to 81.2% from
81.0% in the prior year period.
- Operating income increased to RMB88.9
million ($13.2 million) due to
the absence of share-based compensation expense; all outstanding
restricted share units ("RSUs") were fully vested during the
quarter ended March 31, 2018.
- Operating income before depreciation and amortization and
share-based compensation expense ("non-GAAP operating
income")[2] amounted to
RMB101.9 million ($15.2 million).
- Net income attributable to the Company's shareholders increased
to RMB91.1 million ($13.6 million) due to improved operating income
and an increase in fair value of equity securities[3] ("mark-to-market gains") of
RMB11.5 million ($1.7 million) in the fourth quarter.
- Net cash provided by operating activities improved by 14.0% to
RMB221.5 million ($33.0 million).
Full Year Fiscal 2019 Highlights
- Revenues increased by 5.3% YoY to RMB986.8 million ($147.0
million).
- New subscriber sign-ups reached 89,366 and the accumulated
subscriber base expanded to 750,273[1].
- Gross profit increased by 6.0% YoY to RMB800.7 million ($119.3
million).
- Operating income increased by 36.4% to RMB381.7 million ($56.9
million).
- Non-GAAP operating income[2] improved by 4.7% to RMB434.0 million ($64.7
million).
- Net income attributable to the Company's shareholders increased
by 22.8% YoY to RMB291.1 million
($43.4 million).
- Net cash provided by operating activities was RMB792.1 million ($118.0
million).
"During fiscal 2019, the total newborn number in China and in the markets we operate decreased.
Despite the market condition, we managed to recruit over 89,000 new
subscribers, hitting the upper bound of our fiscal 2019 target. The
management team is glad with our achievements," said Ms. Ting
Zheng, Chairperson and Chief Executive Officer of GCBC.
"We expect volume contributions from our three markets to remain
in their respective trends, and we maintain caution regarding
near-term volumes. We believe that our new pricing will absorb some
rising cost pressures and bridge the revenue gap while better
reflecting the Company's market position. As we continue to
re-examine our capital on hand, business position, core
competencies, and strategy, we also remain alert to the possible
changes ahead together with available opportunities. With the solid
foundation set forth by our PRC cord blood banking business, we
continue our commitment towards enhancing service quality, customer
experience, and taking a pro-active approach to expand our business
scope and service offerings in order to take the Company to the
next phase," Ms. Zheng concluded.
Summary –
Fourth Quarter and Full Year Ended
March 31, 2018 and 2019
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March
31,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
(In
thousands)
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues
|
|
232,981
|
|
251,651
|
|
37,497
|
|
936,768
|
|
986,754
|
|
147,031
|
Gross
Profit
|
188,750
|
|
204,276
|
|
30,438
|
|
755,285
|
|
800,727
|
|
119,312
|
Operating Income
[4]
|
42,194
|
|
88,854
|
|
13,239
|
|
279,863
|
|
381,657
|
|
56,869
|
Change in Fair Value
of
|
|
|
|
|
|
|
|
|
|
|
Equity
Securities[3]
|
-
|
|
11,526
|
|
1,717
|
|
-
|
|
(57,125)
|
|
(8,512)
|
Net Income
Attributable to
|
|
|
|
|
|
|
|
|
|
|
the
Company's
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
30,514
|
|
91,108
|
|
13,574
|
|
237,098
|
|
291,124
|
|
43,380
|
Earnings per
Share
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
(RMB/US$)
|
0.27
|
|
0.74
|
|
0.11
|
|
2.10
|
|
2.40
|
|
0.36
|
– Diluted
(RMB/US$)
|
0.25
|
|
0.74
|
|
0.11
|
|
1.99
|
|
2.40
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing Fees
and
Other Services
|
|
63.2%
|
|
59.1%
|
|
|
|
65.3%
|
|
60.9%
|
|
|
Storage
Fees
|
|
36.8%
|
|
40.9%
|
|
|
|
34.7%
|
|
39.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
|
21,390
|
|
22,194
|
|
|
|
91,789
|
|
89,366
|
|
|
Total Accumulated
Subscribers
(persons)
|
|
661,618
|
|
750,273[1]
|
|
|
|
661,618
|
|
750,273[1]
|
|
|
Summary – Selected
Cash Flow Statement Items
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Year Ended March 31,
|
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
(In
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Net cash provided
by
operating
activities
|
|
194,350
|
|
221,495
|
|
33,005
|
|
818,762
|
|
792,118
|
|
118,031
|
|
Net cash used in
investing
activities
|
|
(19,118)
|
|
(508)
|
|
(76)
|
|
(66,477)
|
|
(30,210)
|
|
(4,502)
|
|
Net cash used in
financing
activities
|
|
-
|
|
(3,019)
|
|
(450)
|
|
(2,015)
|
|
(21,192)
|
|
(3,158)
|
|
Fourth Quarter of Fiscal 2019 Financial Results
REVENUES. Revenues in the fourth quarter of fiscal
2019 increased by 8.0% YoY to RMB251.7
million ($37.5 million). The
growth was mainly driven by the expansion of the subscriber
base.
The Company's accumulated subscriber base reached
750,273[1] by the end of
March 2019, and revenues generated
from storage fees increased by 20.0% YoY to RMB103.0 million ($15.3
million). Storage fees accounted for 40.9% of the total
revenues, up from 36.8 % in the prior year period.
During the reporting quarter, we recorded 22,194 new
subscribers. Revenues generated from processing fees and other
services in the fourth quarter increased to RMB148.7 million ($22.2
million) from RMB147.2 million
in the prior year period. As a percentage of revenues, revenues
generated from processing fees accounted for 59.1% compared to 63.2
% in the prior year period.
GROSS PROFIT. Gross profit for the fourth quarter
of fiscal 2019 increased by 8.2% YoY to RMB204.3 million ($30.4
million). A better revenue mix was partially offset by
noticeable increases in raw material and labor costs, resulting in
gross margin slightly increasing to 81.2% during the quarter from
81.0% in the prior year period.
OPERATING INCOME and NON-GAAP OPEARTING
INCOME[2].
Fourth quarter operating income increased significantly to
RMB88.9 million ($13.2 million) from RMB42.2 million in the prior year period. Despite
higher sales and marketing expenses, operating income improved due
to the absence of share-based compensation expenses related to the
Company's RSUs scheme, of which the shares were fully vested in the
prior year period. Depreciation and amortization expenses for the
reporting quarter was RMB13.1 million
($2.0 million) compared to
RMB12.8 million in prior year period.
Fourth quarter non-GAAP operating income[2] was RMB101.9 million ($15.2
million) compared to RMB102.9
million in the prior year period. Non-GAAP operating margin
was 40.5% compared to 44.2% in the same period of last year.
Sales and Marketing Expenses. Although no
share-based compensation expense was recorded in the fourth
quarter, sales and marketing expenses for the fourth quarter was up
12.8% YoY to RMB67.3 million
($10.0 million). Both higher staff
renumeration expenses and increased promotional activities
contributed to the increase in sales and marketing expenses. While
the decline in newborn numbers within the addressable markets was
unfavorable, the Company believes it was necessary and remains
devoted to raising public awareness and driving public interest
towards the potential medical benefits of umbilical cord blood
banking. As a percentage of revenues, sales and marketing expenses
increased moderately from 25.6% in the prior year period to 26.7%
in the reporting period.
General and Administrative Expenses. General and
administrative expenses for the fourth quarter dropped to
RMB43.5 million ($6.5 million) from RMB83.5
million in the prior year period. Such decrease was mainly
due to the absence of share-based compensation expense related to
the vesting of all outstanding RSUs. On a quarter over quarter
basis, general administrative expense edged down 3% as the Company
continued to closely monitor its administrative cost structure.
OTHER INCOME AND EXPENSES.
Change in Fair Value of Equity Securities. In the
reporting quarter, the Company recognized an increase in fair value
of equity securities, or "mark-to-market gains", of RMB11.5 million ($1.7
million) as other income under the new accounting
standard[3]. Such
increase was mainly attributable to the investments in Cordlife
Group Limited ("Cordlife").
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. As a result of the increase in operating
income as well as the recognition of an increase in fair value of
equity securities through net income, net income attributable to
the Company's shareholders for the reporting period nearly tripled
to RMB91.1 million ($13.6 million) from RMB30.5 million in the prior year period. Net
margin for the fourth quarter of fiscal 2019 improved to 36.2% from
13.1% in the prior year period.
EARNINGS PER SHARE. Basic and diluted earnings per
ordinary share for the fourth quarter of fiscal 2019 improved to
RMB0.74 ($0.11).
Full Year Fiscal 2019 Financial Results
For the full year fiscal 2019, total revenues increased by 5.3%
YoY to RMB986.8 million ($147.0 million). The increase was mainly
attributable to the growth in storage fee revenues as the Company's
enlarged subscriber base reached 750,273[1] as of March
31, 2019. Gross profit increased by 6.0% YoY to RMB800.7 million ($119.3
million). Operating income increased by 36.4% YoY to
RMB381.7 million ($56.9 million), mainly due to the absence of
share-based compensation expense. Non-GAAP operating
income[2] improved by
4.7% YoY to RMB434.0 million
($64.7 million). Decrease in fair
value of equity securities during fiscal 2019 was RMB57.1 million ($8.5
million) and was recorded as other expense following the
adoption of a new accounting standard[3], whereas RMB29.6 million of such decrease was recorded as
other comprehensive losses in the previous fiscal year. Net income
attributable to the Company's shareholders increased by 22.8% to
RMB291.1 million ($43.4 million), resulting from increased
operating income, which was partially offset by the decrease in
fair value of equity securities. Basic and diluted earnings per
ordinary share were RMB2.40
($0.36). Net cash provided by
operating activities in the full year of fiscal 2019 was
RMB792.1 million ($118.0 million) compared to RMB818.8 million in the prior year period.
Recent Developments
- On June 4, 2019, the board of
directors of the Company (the "Board") received a non-binding
proposal letter from Cordlife, a company listed on the Mainboard of
the Singapore Exchange Securities Trading Limited ("SGX"), pursuant
to which Cordlife proposes to combine the businesses of Cordlife
and the Company, by way of a statutory merger. According to the
letter, Cordlife would issue approximately 2,497.9 million ordinary
shares at an issue price of SGD0.5
per ordinary share in exchange for all of the outstanding ordinary
shares of the Company at $7.50 per
ordinary share. Upon completion of the proposed transaction, the
Company's ordinary shares will be delisted from the New York Stock
Exchange and the Cordlife ordinary shares will continue to trade on
SGX.
- On June 5, 2019, the Board formed
a special committee of independent directors (the "Special
Committee") who are not affiliated with Cordlife to evaluate such
proposal. The Special Committee intends to retain advisors,
including an independent financial advisor and U.S. and
Cayman Islands legal counsels, to
assist it in its work.
- The Company cautions its shareholders and others considering
trading its ordinary shares that no decisions have been made with
respect to the Company's response to the proposed transaction. The
proposed transaction is still subject to various conditions,
including but not limited to, completion of due diligence, parties
entering into definitive agreement, and/or each of Cordlife and the
Company obtaining its relevant regulatory and shareholders
approval. There can be no assurance that any definitive offer will
be made, that any agreement will be executed or that this or any
other transaction will be approved or consummated.
__________________
|
[1] During the three months and year
ended March 31, 2019, 22,194 and 89,366 new subscribers were
recruited, respectively. The Company reclassified 200 and 711
private cord blood units as donated cord blood units during the
three months and year ended March 31, 2019, respectively, after the
Company determined that the recoverability of these prior private
cord blood banking subscribers was remote. 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 750,273 as of March 31, 2019.
|
|
[2] See exhibit 3 to this press
release for a reconciliation of non-GAAP operating income to
exclude the non-cash items related to the depreciation and
amortization and share-based compensation expense to the comparable
financial measure prepared in accordance with U.S. generally
accepted accounting principles ("U.S. GAAP"). The share-based
compensation expense for the three months and year ended March 31,
2019 was nil.
|
|
[3] Change
in fair value of equity securities was recognized as other
income/expenses instead of other comprehensive income/losses as
practiced previously because of the adoption of Accounting
Standards Update No. 2016-01 from April 1, 2018. During the three
months ended March 31, 2018 and 2019, there were a decrease in fair
value of RMB2.5 million and an increase of fair value of RMB11.5
million ($1.7 million) of equity securities, respectively. During
the years ended March 31, 2018 and 2019, there were a decrease in
fair value of equity securities of RMB29.6 million and RMB57.1
million ($8.5 million), respectively.
|
|
[4] The reported operating income for
the three months and years ended March 31, 2018 and 2019
included the following:
|
(i)
Depreciation and amortization expenses for the three months ended
March 31, 2018 and 2019 were RMB12.8 million and
RMB13.1 million ($2.0 million). Depreciation and amortization
expenses for the years ended March 31, 2018 and 2019 were
RMB50.6 million and RMB52.4 million ($7.8 million);
and
|
(ii) For the
three months and year ended March 31, 2018, share-based
compensation expenses related to the Company's RSUs scheme were
RMB47.9 million and RMB84.3 million, respectively, whereas no such
expense was recorded in the current quarter and current year since
all outstanding RSUs were fully vested in the quarter ended March
31, 2018.
|
|
Conference Call
The Company will host a conference call at 8:00 a.m. ET on Wednesday, June 19, 2019, 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.globalcordbloodcorp.com. A
replay of the webcast will be accessible two hours after the
conference call and available for seven days at the same URL link
above. Listeners can also access the call by dialing 1-646-722-4977
or 1-855-824-5644 for US callers, or +852-3027-6500 for
Hong Kong callers, access code:
72488018#.
Use of Non-GAAP Financial Measures
GAAP results for the three months and year ended March 31, 2019 include non-cash items related to
depreciation and amortization expenses. To supplement the Company's
unaudited condensed consolidated financial statements presented on
a U.S. GAAP basis, the Company has provided adjusted financial
information excluding the impact of these items in this press
release. The non-GAAP financial measure represents non-GAAP
operating income. Such adjustment is a departure from U.S. GAAP;
however, the Company's management believes that these adjusted
measures provide investors with a better understanding of how the
results relate to the Company's historical performance. Also,
management uses non-GAAP operating income as a measurement tool for
evaluating 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.
About Global Cord Blood Corporation
Global 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. Global 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.globalcordbloodcorp.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 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 maintaining 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, international pressure
on trade and currency against the PRC and its potential impact on
the PRC consumer behavior, as well as general economic conditions;
the non-binding proposal letter from Cordlife 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 ended
March 31, 2019 were made at the noon
buying rate of RMB6.7112 to
$1.00 on March
29, 2019 in the City of New
York for cable transfers in Renminbi per U.S. dollar as
certified for customs purposes by the Federal Reserve Bank of
New York. Global Cord Blood
Corporation makes no representation that the Renminbi or U.S.
dollar amounts referred to in this press release could have been or
could be converted into U.S. dollars or Renminbi, at any particular
rate or at all.
For more information, please contact:
Global Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@globalcordbloodcorp.com
ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: william.zima@icrinc.com
EXHIBIT
1
|
GLOBAL CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
As of March 31, 2018
and 2019
|
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands except share
data)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
4,250,610
|
|
4,997,861
|
|
744,706
|
Accounts receivable,
less allowance for
|
|
|
|
|
|
|
doubtful
accounts (March 31, 2018:
|
|
|
|
|
|
|
RMB58,227;
March 31, 2019: RMB89,634
|
|
|
|
|
|
|
(US$13,356))
|
|
107,818
|
|
96,923
|
|
14,442
|
Inventories
|
|
27,718
|
|
27,612
|
|
4,114
|
Prepaid expenses and
other receivables
|
|
22,276
|
|
25,532
|
|
3,805
|
Total current
assets
|
|
4,408,422
|
|
5,147,928
|
|
767,067
|
Property, plant and
equipment, net
|
|
552,960
|
|
545,340
|
|
81,258
|
Non-current
deposits
|
|
233,115
|
|
236,719
|
|
35,272
|
Non-current accounts
receivable, less
allowance for doubtful accounts
|
|
|
|
|
|
|
(March 31,
2018: RMB69,713;
|
|
|
|
|
|
|
March 31,
2019: RMB74,800 (US$11,146))
|
|
101,809
|
|
104,857
|
|
15,624
|
Inventories
|
|
71,758
|
|
77,194
|
|
11,502
|
Intangible assets,
net
|
|
102,065
|
|
97,444
|
|
14,520
|
Investment in equity
securities
|
|
153,882
|
|
107,362
|
|
15,997
|
Other
investment
|
|
189,129
|
|
189,129
|
|
28,181
|
Deferred tax
assets
|
|
31,295
|
|
44,981
|
|
6,702
|
Total
assets
|
|
5,844,435
|
|
6,550,954
|
|
976,123
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
11,372
|
|
33,566
|
|
5,001
|
Accrued expenses and
other payables
|
|
73,023
|
|
79,977
|
|
11,918
|
Deferred
revenue
|
|
366,373
|
|
461,986
|
|
68,838
|
Income tax
payable
|
|
17,407
|
|
20,113
|
|
2,997
|
Total current
liabilities
|
|
468,175
|
|
595,642
|
|
88,754
|
Non-current deferred
revenue
|
|
1,874,014
|
|
2,108,442
|
|
314,168
|
Other non-current
liabilities
|
|
362,876
|
|
404,482
|
|
60,270
|
Deferred tax
liabilities
|
|
20,628
|
|
19,626
|
|
2,924
|
Total
liabilities
|
|
2,725,693
|
|
3,128,192
|
|
466,116
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders'
equity of Global Cord Blood Corporation
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
|
- US$0.0001 par
value, 250,000,000 shares authorized,
|
|
|
|
|
|
|
120,961,641
and 120,824,742 shares issued and outstanding
|
|
|
|
|
|
|
as of March
31, 2018 and 121,687,974 and 121,551,075 shares
|
|
|
|
|
|
|
issued and
outstanding as of March 31, 2019
|
|
83
|
|
83
|
|
12
|
Additional paid-in
capital
|
|
2,053,866
|
|
2,101,582
|
|
313,145
|
Treasury stock, at
cost (March 31, 2018 and 2019: 136,899
|
|
|
|
|
|
|
shares,
respectively)
|
|
(2,815)
|
|
(2,815)
|
|
(419)
|
Accumulated other
comprehensive losses
|
|
(54,654)
|
|
(88,738)
|
|
(13,223)
|
Retained
earnings
|
|
1,116,873
|
|
1,407,223
|
|
209,683
|
Total equity
attributable to Global Cord Blood Corporation
|
|
3,113,353
|
|
3,417,335
|
|
509,198
|
Non-controlling
interests
|
|
5,389
|
|
5,427
|
|
809
|
Total
equity
|
|
3,118,742
|
|
3,422,762
|
|
510,007
|
Total liabilities
and equity
|
|
5,844,435
|
|
6,550,954
|
|
976,123
|
EXHIBIT
2
|
GLOBAL CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
For the Three Months
and Year ended March 31, 2018 and 2019
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
232,981
|
|
251,651
|
|
37,497
|
|
936,768
|
|
986,754
|
|
147,031
|
Direct
costs
|
|
(44,231)
|
|
(47,375)
|
|
(7,059)
|
|
(181,483)
|
|
(186,027)
|
|
(27,719)
|
Gross
profit
|
|
188,750
|
|
204,276
|
|
30,438
|
|
755,285
|
|
800,727
|
|
119,312
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(3,445)
|
|
(4,635)
|
|
(691)
|
|
(12,718)
|
|
(14,688)
|
|
(2,189)
|
Sales and
marketing
|
|
(59,653)
|
|
(67,301)
|
|
(10,028)
|
|
(219,202)
|
|
(235,062)
|
|
(35,025)
|
General and
administrative
|
|
(83,458)
|
|
(43,486)
|
|
(6,480)
|
|
(243,502)
|
|
(169,320)
|
|
(25,229)
|
Total operating
expenses
|
|
(146,556)
|
|
(115,422)
|
|
(17,199)
|
|
(475,422)
|
|
(419,070)
|
|
(62,443)
|
Operating
income
|
|
42,194
|
|
88,854
|
|
13,239
|
|
279,863
|
|
381,657
|
|
56,869
|
Other
income/(expenses), net
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
5,903
|
|
6,049
|
|
901
|
|
21,936
|
|
25,320
|
|
3,773
|
Interest
expense
|
|
-
|
|
-
|
|
-
|
|
(3,257)
|
|
-
|
|
-
|
Foreign
currency
|
|
|
|
|
|
|
|
|
|
|
|
|
exchange
gains/(losses)
|
|
15
|
|
15
|
|
2
|
|
133
|
|
(62)
|
|
(9)
|
Change in fair value
of
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
securities
|
|
-
|
|
11,526
|
|
1,717
|
|
-
|
|
(57,125)
|
|
(8,512)
|
Dividend
income
|
|
-
|
|
-
|
|
-
|
|
634
|
|
976
|
|
145
|
Others
|
|
679
|
|
2,711
|
|
404
|
|
4,226
|
|
5,695
|
|
849
|
Total other
income/(expenses),
|
|
|
|
|
|
|
|
|
|
|
|
|
net
|
|
6,597
|
|
20,301
|
|
3,024
|
|
23,672
|
|
(25,196)
|
|
(3,754)
|
Income before
income tax
|
|
48,791
|
|
109,155
|
|
16,263
|
|
303,535
|
|
356,461
|
|
53,115
|
Income tax
expense
|
|
(16,771)
|
|
(16,405)
|
|
(2,444)
|
|
(62,656)
|
|
(61,260)
|
|
(9,128)
|
Net
income
|
|
32,020
|
|
92,750
|
|
13,819
|
|
240,879
|
|
295,201
|
|
43,987
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(1,506)
|
|
(1,642)
|
|
(245)
|
|
(3,781)
|
|
(4,077)
|
|
(607)
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Cord
Blood
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporation's
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
|
30,514
|
|
91,108
|
|
13,574
|
|
237,098
|
|
291,124
|
|
43,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.27
|
|
0.74
|
|
0.11
|
|
2.10
|
|
2.40
|
|
0.36
|
-
Diluted
|
|
0.25
|
|
0.74
|
|
0.11
|
|
1.99
|
|
2.40
|
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
(losses)/income, net of nil
|
|
|
|
|
|
|
|
|
|
|
|
|
income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign
currency translation
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustment
|
|
(16,562)
|
|
(10,073)
|
|
(1,501)
|
|
(49,630)
|
|
28,232
|
|
4,207
|
- Unrealized
holding losses
|
|
|
|
|
|
|
|
|
|
|
|
|
in
available-for-sale equity
|
|
|
|
|
|
|
|
|
|
|
|
|
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Unrealized holding losses
|
|
|
|
|
|
|
|
|
|
|
|
|
in available-for-sale
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
securities
|
|
(2,515)
|
|
-
|
|
-
|
|
(29,619)
|
|
-
|
|
-
|
-
Reclassification adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
for losses included in
net
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
167
|
|
-
|
|
-
|
|
167
|
|
-
|
|
-
|
Total other
comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
(losses)/income
|
|
(18,910)
|
|
(10,073)
|
|
(1,501)
|
|
(79,082)
|
|
28,232
|
|
4,207
|
Comprehensive
income
|
|
13,110
|
|
82,677
|
|
12,318
|
|
161,797
|
|
323,433
|
|
48,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable
to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
interests
|
|
(1,506)
|
|
(1,642)
|
|
(245)
|
|
(3,781)
|
|
(4,077)
|
|
(607)
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Global
Cord
|
|
|
|
|
|
|
|
|
|
|
|
|
Blood
Corporation's
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
|
11,604
|
|
81,035
|
|
12,073
|
|
158,016
|
|
319,356
|
|
47,587
|
EXHIBIT
3
|
GLOBAL CORD BLOOD
CORPORATION
|
RECONCILIATION OF
NON-GAAP OPERATING INCOME
|
For the Three Months
and Year ended March 31, 2018 and 2019
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP amount of
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
42,194
|
|
88,854
|
|
13,239
|
|
279,863
|
|
381,657
|
|
56,869
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses[5]
|
|
12,824
|
|
13,091
|
|
1,951
|
|
50,590
|
|
52,365
|
|
7,803
|
Share-based
compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
expense[6]
|
|
47,889
|
|
-
|
|
-
|
|
84,268
|
|
-
|
|
-
|
Non-GAAP operating
income
|
|
102,907
|
|
101,945
|
|
15,190
|
|
414,721
|
|
434,022
|
|
64,672
|
|
______________________
|
[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 of which the shares were fully
vested in the quarter ended March 31, 2018. Accordingly, there will
be no share-based compensation expense relating to those RSUs
amortized in subsequent periods.
|
View original
content:http://www.prnewswire.com/news-releases/global-cord-blood-corporation-reports-financial-results-for-the-fourth-quarter-and-full-year-of-fiscal-2019-300870185.html
SOURCE Global Cord Blood Corporation