HONG KONG, Nov. 24, 2020 /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 second quarter and first half of fiscal
2021 ended September 30, 2020.
Second Quarter of Fiscal 2021 Highlights
- Revenues decreased by 8.9% year-over-year ("YoY") to
RMB285.6 million ($42.1 million).
- New subscribers and accumulated subscriber base were 17,643 and
867,180[1],
respectively.
- Gross profit decreased by 9.1% YoY to RMB240.9 million ($35.5
million). Gross margin edged down slightly to 84.3% from
84.6% in the prior year period.
- Operating income decreased by 3.7% YoY to RMB139.2 million ($20.5
million). Operating margin increased to 48.7% from 46.1% in
the prior year period.
- Operating income before depreciation and amortization
("non-GAAP operating income[2]") decreased by 3.5% YoY
to RMB151.4 million ($22.3 million).
- Net income attributable to the Company's shareholders increased
by 9.2% to RMB131.4 million
($19.4 million), largely due to an
increase in fair value of equity securities ("mark-to-market
gain").
- Net cash provided by operating activities was RMB174.8 million ($25.7
million).
First Half of Fiscal 2021 Highlights
- Revenues decreased by 3.5% YoY to RMB566.5 million ($83.4
million).
- New subscribers and accumulated subscriber base were 34,876 and
867,180[1],
respectively.
- Gross profit decreased by 2.9% YoY to RMB478.4 million ($70.5
million).
- Operating income increased by 6.2% YoY to RMB272.7 million ($40.2
million).
- Non-GAAP operating income[2] increased by 5.5% YoY to
RMB297.3 million ($43.8 million).
- Net income attributable to the Company's shareholders increased
by 15.4% to RMB263.9 million
($38.9 million), mainly due to the
decrease in operating expenses and the mark-to-market gain in the
six reporting months.
- Net cash provided by operating activities was RMB274.6 million ($40.5
million).
"We successfully managed to recruit 17,643 new subscribers in
the second quarter, keeping us on track to meet our annual target
despite challenges associated with Covid-19, a downward trend in
newborns and an overall cautious consumer environment," said Ms.
Ting Zheng, Chairperson and Chief Executive Officer of GCBC.
"Although future regulation in the cord blood banking industry in
China remains unclear, we continue
to prepare for multiple potential outcomes and carry on with our
business expansion and risk diversification efforts."
Summary – Second Quarter and First Half Ended September 30, 2019 and 2020
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
(in
thousands)
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
313,464
|
|
285,607
|
|
42,066
|
|
586,839
|
|
566,520
|
|
83,440
|
Gross
Profit
|
|
|
265,149
|
|
240,909
|
|
35,483
|
|
492,775
|
|
478,359
|
|
70,455
|
Operating
Income[3]
|
|
|
144,435
|
|
139,161
|
|
20,497
|
|
256,821
|
|
272,670
|
|
40,163
|
Change in Fair Value
of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Securities
|
|
|
(7,043)
|
|
5,699
|
|
839
|
|
2,936
|
|
24,104
|
|
3,550
|
Dividend
Income
|
|
|
-
|
|
1,281
|
|
189
|
|
507
|
|
1,281
|
|
189
|
Net Income
Attributable to
the Company's
Shareholders
|
|
|
120,353
|
|
131,434
|
|
19,360
|
|
228,697
|
|
263,943
|
|
38,877
|
Earnings per
Ordinary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
(RMB/US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
–
Basic
|
|
|
0.99
|
|
1.08
|
|
0.16
|
|
1.88
|
|
2.17
|
|
0.32
|
–
Diluted
|
|
|
0.99
|
|
1.08
|
|
0.16
|
|
1.88
|
|
2.17
|
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing Fees and
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
|
63.9%
|
|
57.5%
|
|
|
|
62.7%
|
|
57.5%
|
|
|
Storage
Fees
|
|
|
36.1%
|
|
42.5%
|
|
|
|
37.3%
|
|
42.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
|
|
21,551
|
|
17,643
|
|
|
|
42,366
|
|
34,876
|
|
|
Total Accumulated
Subscribers (persons)
|
|
|
791,812
|
|
867,180[1]
|
|
|
|
791,812
|
|
867,180[1]
|
|
|
Summary – Selected Cash Flow Statement Items
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net cash provided
by
|
|
|
|
|
|
|
|
|
|
|
|
|
operating
activities
|
|
208,255
|
|
174,814
|
|
25,747
|
|
378,011
|
|
274,643
|
|
40,450
|
Net cash provided
by/
|
|
|
|
|
|
|
|
|
|
|
|
|
(used in)
investing
|
|
|
|
|
|
|
|
|
|
|
|
|
activities
|
|
1,396
|
|
(3,876)
|
|
(571)
|
|
(5,229)
|
|
(11,320)
|
|
(1,667)
|
Net cash used
in
|
|
|
|
|
|
|
|
|
|
|
|
|
financing
activities
|
|
(4,039)
|
|
(6,074)
|
|
(895)
|
|
(4,039)
|
|
(6,074)
|
|
(895)
|
Second Quarter of Fiscal 2021 Financial Results
REVENUES. Revenues decreased by 8.9% YoY to
RMB285.6 million ($42.1 million) in the second quarter of fiscal
2021, as the decrease in revenues from processing fees and other
services from fewer new subscribers outpaced growth in storage fee
revenues.
Despite facing difficulties in the second quarter, the Company
recruited 17,643 new subscribers. Revenues generated from
processing fees and other services in the reporting quarter
decreased by 18.1% YoY to RMB164.3
million ($24.2 million),
representing 57.5% of total revenues compared to 63.9% in the prior
year period.
The accumulated subscriber base as of September 30, 2020 expanded to 867,180[1]. Revenues generated from
storage fees increased by 7.3% YoY to RMB121.3 million ($17.9
million) in the reporting quarter.
GROSS PROFIT. Gross profit for the second quarter
decreased by 9.1% YoY to RMB240.9
million ($35.5 million). Gross
margin decreased slightly to 84.3% from 84.6% in the prior year
period, as raw material cost continued to exert margin pressure
despite cost-saving efforts.
OPERATING INCOME. As cost-saving measures were
implemented to counter the topline decrease, operating income for
the reporting quarter decreased by 3.7% YoY to RMB139.2 million ($20.5
million). Operating margin improved to 48.7% from 46.1% in
the prior year period, primarily due to measures taken to improve
cost-efficiency. Depreciation and amortization expenses for the
second quarter were RMB12.3 million
($1.8 million), representing a slight
decrease from RMB12.5 million in the
prior year period. Non-GAAP operating income[2] decreased by 3.5% YoY to
RMB151.4 million ($22.3 million) in the reporting quarter.
Research and Development
Expenses. Research and development expenses decreased to
RMB5.0 million ($0.7 million) from RMB6.4
million in the prior year period.
Sales and Marketing
Expenses. Sales and marketing expenses decreased to
RMB54.1 million ($8.0 million) from RMB64.9
million in the prior year period, due to the Company's
ongoing efforts to effectively manage its sales, marketing and
promotional activities in light of weak demand. In particular, the
reduction in sales force head count and remuneration, as well as
fewer promotional activities, kept sales and marketing expenses in
check with the topline reduction. Sales and marketing expenses as a
percentage of revenues decreased to 19.0%, compared to 20.7% in the
prior year period and 19.6% in the prior quarter.
General and Administrative
Expenses. General and administrative expenses decreased by
13.7% YoY to RMB42.7 million
($6.3 million) as a result of lower
staff costs and provisions. General and administrative expenses as
a percentage of revenues decreased to 14.9% from 15.8% in the prior
year period and 15.9% in the prior quarter.
OTHER INCOME AND EXPENSES.
Change in fair value of
equity securities. In the reporting period, the Company
recognized a mark-to-market gain of RMB5.7
million ($0.8 million),
compared to a mark-to-market loss of RMB7.0
million in the prior year period. The changes were mainly
attributable to the Company's investments in equity securities.
Dividend Income. In
the second quarter, the Company received RMB1.3 million ($0.2
million) dividend income from the Company's equity
investments, whereas no such income was recorded in the prior year
period.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. The recognition of mark-to-market gain and
dividend income compensated for the decline in operating income.
Income before income tax for the second quarter increased by 8.4%
YoY to RMB156.2 million ($23.0 million). Income tax expense for the second
quarter was RMB22.9 million
($3.4 million). Net income
attributable to the Company's shareholders for the reporting
quarter increased by 9.2% YoY to RMB131.4
million ($19.4 million). Net
margin for the reporting quarter improved to 46.0% from 38.4% in
the prior year period.
EARNINGS PER SHARE. Basic and diluted earnings per
ordinary share for the second quarter of fiscal 2021 was
RMB1.08 ($0.16).
First Half of Fiscal 2021 Financial Results
For the first half of fiscal year 2021, total revenues decreased
by 3.5% YoY to RMB566.5 million
($83.4 million). The decrease was
mainly due to the decline in new subscribers. Revenues from
processing fees and other services decreased by 11.4% YoY to
RMB325.9 million ($48.0 million), whereas revenues from storage
fees increased by 10.0% YoY to RMB240.6
million ($35.4 million). Gross
profit decreased by 2.9% YoY to RMB478.4
million ($70.5 million).
Operating income increased by 6.2% YoY to RMB272.7 million ($40.2
million). Non-GAAP operating income[2] increased by 5.5% YoY to
RMB297.3 million ($43.8 million). Net income attributable to the
Company's shareholders improved by 15.4% to RMB263.9 million ($38.9
million). Basic and diluted earnings per ordinary share was
RMB2.17 ($0.32). Net cash provided by operating
activities in the first half of fiscal 2021 was RMB274.6 million ($40.5
million).
Corporate Developments
- On June 4, 2019, the Board of
Directors of the Company (the "Board") received a non-binding
proposal letter from Cordlife Group Limited ("Cordlife"), a company
listed on the Mainboard of the Singapore Exchange Securities
Trading Limited ("SGX"), pursuant to which Cordlife proposed 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 would be delisted from the New York Stock Exchange, and
Cordlife ordinary shares would continue to trade on the 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.
On November
11, 2019, the Company appointed Mr. Jack Chow as an independent non-executive
director ("INED") of the Board. Mr. Chow has extensive professional
experience and a broad network in the finance and investment
industry. He replaced Mr. Mark Chen
as a member of the Audit Committee and Ms. Jennifer Weng as a member of the Special
Committee. Mr. Chow also joined the Board's Compensation Committee
and Nominating and Corporate Governance Committee.
On February
6, 2020, the Company appointed Mr. Jacky Cheng as an INED of the Board. Mr. Cheng
has extensive professional experience and knowledge in legal and
compliance and Chinese laws. He joined the Board's Compensation
Committee as a member and the Company's Special Committee as a
member. Currently, the Special Committee is composed of four
members, including Mr. Mark Chen,
Dr. Ken Lu, Mr. Jack Chow, and Mr. Jacky
Cheng.
- 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 with
Cordlife. The proposed transaction is still subject to various
conditions, including but not limited to, completion of due
diligence, parties entering into a definitive agreement, and/or
each of Cordlife and the Company obtaining its relevant regulatory
and shareholder approvals. In addition, litigation has been filed
in the Cayman Islands challenging
the proposed transaction. 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.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on
Wednesday, November 25, 2020, 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 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: 84298954#.
[1] During the three months and six
months ended September 30, 2020, 17,643 and 34,876 new subscribers
were recruited, respectively. The Company reclassified 396 and 790
private cord blood units as donated cord blood units during the
three months and six months ended September 30, 2020, 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 867,180 as of September 30, 2020.
|
[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 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 ended September 30, 2019 and 2020 included
depreciation and amortization expenses related to property, plant
and equipment and intangible assets of RMB12.5 million and RMB12.3
million ($1.8 million), respectively. The reported operating income
for the six months ended September 30, 2019 and 2020 included
depreciation and amortization expenses related to property, plant
and equipment and intangible assets of RMB24.9 million and RMB24.6
million ($3.6 million), respectively.
|
Use of Non-GAAP Financial Measures
GAAP results for the three months and six months ended
September 30, 2020, 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 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 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. Global
Cord Blood Corporation provides cord blood collection, laboratory
testing, hematopoietic stem cell processing and stem cell storage
services. For more information, please visit the Company's 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: the effects of
the current COVID-19 outbreak, including the inability of the
Company's salesforce to return to work due to current lockdowns
implemented in various cities in the PRC and the imposition by some
hospitals in the PRC of restrictions on entrance to solely to
hospital staff and patients; levels of consumer confidence in the
healthcare services sector generally in the PRC as a result of the
outbreak; the length of the COVID-19 outbreak and severity of such
outbreak across the globe; the pace of recovery following the
COVID-19 outbreak; 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 legislative developments in the U.S. affecting listed
issuers whose independent registered public accounting firms are
based in China and not subject to
U.S. Public Company Accounting Oversight Board inspections,
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 the potential transaction contemplated by such letter,
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 period ended
September 30, 2020 were made at the
noon buying rate of RMB6.7896 to
$1.00 on September 30, 2020 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
Global Cord Blood Corporation makes no representation that the
Renminbi or U.S. dollar amounts referred to in this press release
could have been or could be converted into U.S. dollars or
Renminbi, at any particular rate or at all.
For more information, please contact:
Global Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@globalcordbloodcorp.com
ICR, Inc.
William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com
EXHIBIT
1
|
|
GLOBAL CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
As of March 31 and
September 30, 2020
|
|
|
March
31,
|
|
September
30,
|
|
2020
|
|
2020
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands
except share data)
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
5,473,373
|
|
5,729,503
|
|
843,864
|
Accounts receivable,
less allowance for doubtful accounts
|
|
|
|
|
|
(March 31,
2020: RMB111,869; September 30, 2020:
|
|
|
|
|
|
RMB120,582
(US$17,760))
|
104,251
|
|
121,722
|
|
17,928
|
Inventories
|
43,758
|
|
56,106
|
|
8,264
|
Prepaid expenses and
other receivables
|
44,785
|
|
67,604
|
|
9,957
|
Total current
assets
|
5,666,167
|
|
5,974,935
|
|
880,013
|
Property, plant and
equipment, net
|
522,679
|
|
514,153
|
|
75,726
|
Operating lease
right-of-use assets
|
4,548
|
|
6,089
|
|
897
|
Non-current
deposits
|
347,360
|
|
343,250
|
|
50,555
|
Non-current accounts
receivable, less allowance for doubtful
|
|
|
|
|
|
accounts
(March 31, 2020: RMB71,421; September 30,
|
|
|
|
|
|
2020:
RMB70,451 (US$10,376))
|
160,031
|
|
193,023
|
|
28,430
|
Inventories
|
85,109
|
|
88,335
|
|
13,010
|
Intangible assets,
net
|
92,823
|
|
90,513
|
|
13,332
|
Investment in equity
securities at fair value
|
101,306
|
|
120,670
|
|
17,773
|
Other equity
investment
|
189,129
|
|
189,129
|
|
27,856
|
Deferred tax
assets
|
50,701
|
|
52,823
|
|
7,780
|
Total
assets
|
7,219,853
|
|
7,572,920
|
|
1,115,372
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
19,992
|
|
12,317
|
|
1,814
|
Accrued expenses and
other payables
|
113,989
|
|
129,231
|
|
19,034
|
Operating lease
liabilities
|
1,717
|
|
1,597
|
|
235
|
Deferred
revenue
|
402,751
|
|
420,516
|
|
61,935
|
Income tax
payable
|
32,329
|
|
31,542
|
|
4,646
|
Total current
liabilities
|
570,778
|
|
595,203
|
|
87,664
|
Non-current deferred
revenue
|
2,289,762
|
|
2,339,828
|
|
344,619
|
Non-current operating
lease liabilities
|
1,782
|
|
1,724
|
|
254
|
Other non-current
liabilities
|
450,900
|
|
467,236
|
|
68,816
|
Deferred tax
liabilities
|
18,140
|
|
17,332
|
|
2,554
|
Total
liabilities
|
3,331,362
|
|
3,421,323
|
|
503,907
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Shareholders'
equity of Global Cord Blood
|
|
|
|
|
|
Corporation
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
- US$0.0001 par
value, 250,000,000 shares authorized,
|
|
|
|
|
|
121,687,974 and
121,551,075 shares issued and
|
|
|
|
|
|
outstanding as of
March 31 and September 30, 2020,
|
|
|
|
|
|
respectively
|
83
|
|
83
|
|
12
|
Additional paid-in
capital
|
2,101,582
|
|
2,101,582
|
|
309,529
|
Treasury stock, at
cost (March 31 and September 30,
|
|
|
|
|
|
2020: 136,899 shares,
respectively)
|
(2,815)
|
|
(2,815)
|
|
(415)
|
Accumulated other
comprehensive losses
|
(94,663)
|
|
(99,304)
|
|
(14,626)
|
Retained
earnings
|
1,877,940
|
|
2,141,883
|
|
315,467
|
Total equity
attributable to Global Cord Blood
|
|
|
|
|
|
Corporation
|
3,882,127
|
|
4,141,429
|
|
609,967
|
Non-controlling
interests
|
6,364
|
|
10,168
|
|
1,498
|
Total
equity
|
3,888,491
|
|
4,151,597
|
|
611,465
|
Total liabilities
and equity
|
7,219,853
|
|
7,572,920
|
|
1,115,372
|
EXHIBIT
2
|
|
GLOBAL CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
For the Three Months
and Six Months Ended September 30, 2019 and 2020
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
313,464
|
|
285,607
|
|
42,066
|
|
586,839
|
|
566,520
|
|
83,440
|
Cost of
revenues
|
|
(48,315)
|
|
(44,698)
|
|
(6,583)
|
|
(94,064)
|
|
(88,161)
|
|
(12,985)
|
Gross
profit
|
|
265,149
|
|
240,909
|
|
35,483
|
|
492,775
|
|
478,359
|
|
70,455
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(6,399)
|
|
(4,953)
|
|
(729)
|
|
(11,100)
|
|
(9,298)
|
|
(1,369)
|
Sales and
marketing
|
|
(64,880)
|
|
(54,124)
|
|
(7,972)
|
|
(125,517)
|
|
(109,184)
|
|
(16,080)
|
General and
administrative
|
|
(49,435)
|
|
(42,671)
|
|
(6,285)
|
|
(99,337)
|
|
(87,207)
|
|
(12,843)
|
Total operating
expenses
|
|
(120,714)
|
|
(101,748)
|
|
(14,986)
|
|
(235,954)
|
|
(205,689)
|
|
(30,292)
|
Operating
income
|
|
144,435
|
|
139,161
|
|
20,497
|
|
256,821
|
|
272,670
|
|
40,163
|
Other
(expenses)/income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
6,502
|
|
8,810
|
|
1,298
|
|
12,722
|
|
15,577
|
|
2,294
|
Foreign currency
exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
(losses)/gains
|
|
(162)
|
|
66
|
|
10
|
|
(190)
|
|
108
|
|
16
|
Change in fair value
of equity
|
|
|
|
|
|
|
|
|
|
|
|
|
securities
|
|
(7,043)
|
|
5,699
|
|
839
|
|
2,936
|
|
24,104
|
|
3,550
|
Dividend
income
|
|
-
|
|
1,281
|
|
189
|
|
507
|
|
1,281
|
|
189
|
Others
|
|
422
|
|
1,195
|
|
176
|
|
762
|
|
2,918
|
|
430
|
Total other
(expenses)/income,
|
|
|
|
|
|
|
|
|
|
|
|
|
net
|
|
(281)
|
|
17,051
|
|
2,512
|
|
16,737
|
|
43,988
|
|
6,479
|
Income before
income tax
|
|
144,154
|
|
156,212
|
|
23,009
|
|
273,558
|
|
316,658
|
|
46,642
|
Income tax
expense
|
|
(22,087)
|
|
(22,890)
|
|
(3,371)
|
|
(41,563)
|
|
(48,911)
|
|
(7,205)
|
Net
income
|
|
122,067
|
|
133,322
|
|
19,638
|
|
231,995
|
|
267,747
|
|
39,437
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(1,714)
|
|
(1,888)
|
|
(278)
|
|
(3,298)
|
|
(3,804)
|
|
(560)
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Cord Blood
Corporation's
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
120,353
|
|
131,434
|
|
19,360
|
|
228,697
|
|
263,943
|
|
38,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.99
|
|
1.08
|
|
0.16
|
|
1.88
|
|
2.17
|
|
0.32
|
-
Diluted
|
|
0.99
|
|
1.08
|
|
0.16
|
|
1.88
|
|
2.17
|
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income/
|
|
|
|
|
|
|
|
|
|
|
|
|
(losses),
net of nil income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign
currency translation
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
|
12,800
|
|
(4,202)
|
|
(619)
|
|
23,153
|
|
(4,641)
|
|
(684)
|
Comprehensive
income
|
|
134,867
|
|
129,120
|
|
19,019
|
|
255,148
|
|
263,106
|
|
38,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(1,714)
|
|
(1,888)
|
|
(278)
|
|
(3,298)
|
|
(3,804)
|
|
(560)
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
Global Cord Blood
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporation's
shareholders
|
|
133,153
|
|
127,232
|
|
18,741
|
|
251,850
|
|
259,302
|
|
38,193
|
EXHIBIT
3
|
|
GLOBAL CORD BLOOD
CORPORATION
|
RECONCILIATION OF
NON-GAAP OPERATING INCOME
|
For the Three Months
and Six Months Ended September 30, 2019 and 2020
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP amount of
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
144,435
|
|
139,161
|
|
20,497
|
|
256,821
|
|
272,670
|
|
40,163
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses[4]
|
|
12,455
|
|
12,266
|
|
1,807
|
|
24,900
|
|
24,622
|
|
3,626
|
Non-GAAP
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
156,890
|
|
151,427
|
|
22,304
|
|
281,721
|
|
297,292
|
|
43,789
|
|
[4] Depreciation and amortization
expenses relate to property, plant and equipment and intangible
assets respectively.
|
View original
content:http://www.prnewswire.com/news-releases/global-cord-blood-corporation-reports-financial-results-for-the-second-quarter-and-first-half-of-fiscal-2021-301179591.html
SOURCE Global Cord Blood Corporation