HONG KONG, Feb. 24, 2021 /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 third quarter and first nine months of
fiscal 2021, ended December 31,
2020.
Third Quarter Fiscal 2021 Highlights
- Revenues decreased by 13.1% year-over-year ("YoY") to
RMB290.8 million ($44.6 million).
- New subscribers and accumulated subscriber base were 17,802 and
882,982[1], respectively.
- Gross profit decreased by 13.1% YoY to RMB245.9 million ($37.7
million). Gross margin remained at 84.6%, same as the prior
year period.
- Operating income decreased by 18.9% YoY to RMB124.0 million ($19.0
million). Operating margin decreased to 42.6% from 45.7% in
the prior year period.
- Operating income before depreciation and amortization
("non-GAAP operating income"[2]) decreased by 17.4% YoY
to RMB136.3 million ($20.9 million).
- Net income attributable to the Company's shareholders decreased
by 19.6% to RMB116.6 million
($17.9 million).
- Net cash provided by operating activities was RMB145.0 million ($22.2
million).
Nine Month Fiscal 2021 Highlights
- Revenues decreased by 7.0% YoY to RMB857.3 million ($131.4
million).
- New subscribers and accumulated subscriber base were 52,678 and
882,982[1], respectively.
- Gross profit decreased by 6.7% YoY to RMB724.3 million ($111.0
million).
- Operating income decreased by 3.2% YoY to RMB396.6 million ($60.8
million).
- Non-GAAP operating income[2] decreased by 3.0% YoY
to RMB433.5 million ($66.4 million).
- Net income attributable to the Company's shareholders increased
by 1.8% to RMB380.5 million
($58.3 million), mainly due to the
increase in fair value of equity securities ("mark-to-market
gains").
- Net cash provided by operating activities was RMB419.6 million ($64.3
million).
"Despite the ongoing challenges due to COVID-19, lower newborn
numbers, and cautious consumer sentiment, we managed to recruit
17,802 new subscribers in the third quarter, keeping us on track to
meet our annual target," said Ms. Ting Zheng, Chief Executive
Officer and Chairperson of GCBC. "Although the National Health
Commission announced a new policy that no cord blood banking
license applications would be accepted in 2021, new developments on
industry regulations remain largely uncertain. As such, we must
continue to communicate with regulatory bodies and remain vigilant
regarding other changes that may arise within the industry. We
intend to leverage our advantages as the industry leader to
increase penetration in existing markets and seize available
opportunities to expand our business and services."
Summary – Third Quarter and Nine Months Ended December 31, 2019 and 2020
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
334,733
|
|
290,798
|
|
44,567
|
|
921,572
|
|
857,318
|
|
131,389
|
Gross
Profit
|
|
283,127
|
|
245,920
|
|
37,689
|
|
775,902
|
|
724,279
|
|
111,000
|
Operating
Income[3]
|
|
152,873
|
|
123,957
|
|
18,997
|
|
409,694
|
|
396,627
|
|
60,785
|
Change in Fair Value
of
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Securities
|
|
8,047
|
|
6,003
|
|
920
|
|
10,983
|
|
30,107
|
|
4,614
|
Net Income
Attributable to
the Company's
Shareholders
|
|
145,013
|
|
116,570
|
|
17,865
|
|
373,710
|
|
380,513
|
|
58,315
|
Earnings per
Ordinary
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
(RMB/US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
– Basic
|
|
1.19
|
|
0.96
|
|
0.15
|
|
3.07
|
|
3.13
|
|
0.48
|
–
Diluted
|
|
1.19
|
|
0.96
|
|
0.15
|
|
3.07
|
|
3.13
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing Fees and
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
65.3%
|
|
56.8%
|
|
|
|
63.6%
|
|
57.3%
|
|
|
Storage
Fees
|
|
34.7%
|
|
43.2%
|
|
|
|
36.4%
|
|
42.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
|
23,387
|
|
17,802
|
|
|
|
65,753
|
|
52,678
|
|
|
Total
Accumulated
Subscribers (persons)
|
|
815,000
|
|
882,982[1]
|
|
|
|
815,000
|
|
882,982[1]
|
|
|
Summary – Selected Cash Flow Statement Items
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net cash provided
by
|
|
|
|
|
|
|
|
|
|
|
|
|
operating
activities
|
|
156,031
|
|
144,988
|
|
22,222
|
|
534,042
|
|
419,631
|
|
64,313
|
Net cash used
in
|
|
|
|
|
|
|
|
|
|
|
|
|
investing
activities
|
|
(139,806)
|
|
(5,996)
|
|
(919)
|
|
(145,035)
|
|
(17,316)
|
|
(2,654)
|
Net cash used
in financing activities
|
|
-
|
|
-
|
|
-
|
|
(4,039)
|
|
(6,074)
|
|
(931)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Fiscal 2021 Financial Results
REVENUES. Revenues decreased by 13.1% YoY to
RMB290.8 million ($44.6 million) in the third quarter of fiscal
2021, mainly due to a drop in new subscribers which resulted in
lower revenues from processing fees and other services.
During the reporting quarter, the 2019 novel coronavirus
("COVID-19") pandemic continued to affect the Company's hospital
channels and business operations. In addition, newborn numbers in
the Company's operating markets remained on a downward trend. These
factors led to a 23.9% YoY decrease in new subscribers to 17,802.
Revenues generated from processing fees and other services in the
reporting quarter decreased by 24.4% YoY to RMB165.2 million ($25.3
million), representing 56.8% of total revenues compared to
65.3% in the prior year period.
As of December 31, 2020, the
accumulated subscriber base had expanded to 882,982[1].
Revenues generated from storage fees increased by 8.0% YoY to
RMB125.6 million ($19.3 million) in the reporting quarter.
GROSS PROFIT. Gross profit for the third quarter
decreased by 13.1% YoY to RMB245.9
million ($37.7 million). As
general cost reductions resulting from lower volumes were offset by
higher costs associated with raw material and labor, gross margin
remained at 84.6%, same as in the prior year period.
OPERATING INCOME. Operating income for the
reporting quarter decreased by 18.9% YoY to RMB124.0 million ($19.0
million). Operating margin was 42.6% compared to 45.7% in
the prior year period. Depreciation and amortization expenses for
the third quarter were RMB12.3
million ($1.9 million),
compared to RMB12.1 million in the
prior year period. Non-GAAP operating income[2]
decreased by 17.4% YoY to RMB136.3
million ($20.9 million) in the
reporting quarter.
Research and Development
Expenses. As the Company continued to support science and
technology advancement related to the utilization of cord blood
stem cells through old and new collaborations, research and
development expenses in the third quarter increased to RMB9.0 million ($1.4
million) from RMB6.4 million
in the prior year period.
Sales and Marketing
Expenses. During the reporting quarter, the Company
enhanced its marketing and promotional efforts, resulting in higher
advertising and promotional expenses. The impact was, however,
partially offset by lower staff renumeration on the back of a
smaller salesforce. As a result, sales and marketing expenses
decreased by 9.1% YoY to RMB69.0
million ($10.6 million).
General and Administrative
Expenses. General and administrative expenses decreased by
8.2% YoY to RMB44.0 million
($6.7 million) due to reduced staff
costs and professional fees while partially offset by higher
provisions. General and administrative expenses as a percentage of
revenues was 15.1% compared to 14.3% in the prior year period.
OTHER INCOME.
Change in fair value of
equity securities. In the reporting period, the Company
recognized a mark-to-market gain of RMB6.0
million ($0.9 million),
compared to a mark-to-market gain of RMB8.0
million in the prior year period. The changes were mainly
attributable to the Company's investments in equity securities.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. Income before income tax for the third
quarter decreased by 18.9% YoY to RMB139.4
million ($21.4 million).
Income tax expense for the third quarter was RMB21.2 million ($3.3
million). Net income attributable to the Company's
shareholders for the reporting quarter decreased by 19.6% YoY to
RMB116.6 million ($17.9 million). Net margin for the reporting
quarter was 40.1%.
EARNINGS PER SHARE. Basic and diluted earnings per
ordinary share for the third quarter of fiscal 2021 was
RMB0.96 ($0.15).
Nine Month Fiscal 2021 Financial Results
Total revenues for the first nine months of fiscal 2021
decreased by 7.0% YoY to RMB857.3
million ($131.4 million). The
decrease was mainly due to the decline in new subscribers. Revenues
from processing fees and other services decreased by 16.3% YoY to
RMB491.1 million ($75.3 million), whereas revenues from storage
fees increased by 9.2% YoY to RMB366.2
million ($56.1 million). Gross
profit decreased by 6.7% YoY to RMB724.3
million ($111.0 million).
Operating income decreased by 3.2% YoY to RMB396.6 million ($60.8
million). Non-GAAP operating income[2] decreased
by 3.0% YoY to RMB433.5 million
($66.4 million). Net income
attributable to the Company's shareholders improved by 1.8% to
RMB380.5 million ($58.3 million). Basic and diluted earnings per
ordinary share increased to RMB3.13
($0.48). Net cash provided by
operating activities in the first nine months of fiscal 2021 was
RMB419.6 million ($64.3 million).
Corporate Developments
- On June 4, 2019, the Board of
Directors of the Company (the "Board") received a non-binding
proposal letter (the "Cordlife Proposal") 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 its business with that of the
Company, by way of a statutory merger. According to the Cordlife
Proposal, 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 Company's outstanding ordinary shares 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"),
unaffiliated 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 of legal and compliance as well as Chinese laws. He
joined as a member of both the Board's Compensation Committee and
the Company's Special Committee. Currently, the Special Committee
is composed of four members, including Mr. Mark Chen, Dr. Ken
Lu, Mr. Jack Chow, and Mr.
Jacky Cheng.
On February 11, 2021, the Company
announced that the Board and the board of Cordlife have mutually
agreed to discontinue any further discussions regarding the
Cordlife Proposal.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on
Thursday, February 25, 2021, 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: 28530146#.
[1] During
the three months and nine months ended December 31, 2020, 17,802
and 52,678 new subscribers were recruited, respectively. During the
three months and nine months ended December 31, 2020, the Company
determined that the recoverability of 2,000 and 2,790 private cord
blood units was remote; therefore, the Company terminated their
subscription services according to the subscription contracts. Out
of these prior private cord blood units, 1,600 and 2,390 prior
private cord blood units were 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 882,982
as of December 31, 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 December 31, 2019 and 2020 included
depreciation and amortization expenses related to property, plant
and equipment and intangible assets of RMB12.1 million and RMB12.3
million ($1.9 million), respectively. The reported operating income
for the nine months ended December 31, 2019 and 2020 included
depreciation and amortization expenses related to property, plant
and equipment and intangible assets of RMB37.0 million and RMB36.9
million ($5.7 million), respectively.
|
Use of Non-GAAP Financial Measures
GAAP results for the three months and nine months ended
December 31, 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, 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
December 31, 2020 were made at the
noon buying rate of RMB6.5250 to
$1.00 on December 31, 2020 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
Global Cord Blood Corporation makes no representation that the
Renminbi or U.S. dollar amounts referred to in this press release
could have been or could be converted into U.S. dollars or
Renminbi, at any particular rate or at all.
For more information, please contact:
Global Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@globalcordbloodcorp.com
ICR, Inc.
William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com
EXHIBIT
1
|
|
|
|
GLOBAL CORD BLOOD
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31 and
December 31, 2020
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2020
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands
except share data)
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
5,473,373
|
|
5,867,754
|
|
899,274
|
|
Accounts receivable,
less allowance for doubtful accounts
|
|
|
|
|
|
|
(March 31,
2020: RMB111,869; December 31, 2020:
|
|
|
|
|
|
|
RMB124,205
(US$19,035))
|
104,251
|
|
128,962
|
|
19,765
|
|
Inventories
|
43,758
|
|
57,095
|
|
8,750
|
|
Prepaid expenses and
other receivables
|
44,785
|
|
57,231
|
|
8,771
|
|
Total current
assets
|
5,666,167
|
|
6,111,042
|
|
936,560
|
|
Property, plant and
equipment, net
|
522,679
|
|
508,924
|
|
77,996
|
|
Operating lease
right-of-use assets
|
4,548
|
|
5,573
|
|
854
|
|
Non-current
deposits
|
347,360
|
|
343,006
|
|
52,568
|
|
Non-current accounts
receivable, less allowance for doubtful
|
|
|
|
|
|
|
accounts
(March 31, 2020: RMB71,421; December 31,
|
|
|
|
|
|
|
2020:
RMB70,125 (US$10,747))
|
160,031
|
|
202,658
|
|
31,059
|
|
Inventories
|
85,109
|
|
90,132
|
|
13,813
|
|
Intangible assets,
net
|
92,823
|
|
89,357
|
|
13,695
|
|
Investment in equity
securities at fair value
|
101,306
|
|
121,951
|
|
18,690
|
|
Other equity
investment
|
189,129
|
|
189,129
|
|
28,985
|
|
Deferred tax
assets
|
50,701
|
|
53,794
|
|
8,244
|
|
Total
assets
|
7,219,853
|
|
7,715,566
|
|
1,182,464
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
19,992
|
|
9,743
|
|
1,493
|
|
Accrued expenses and
other payables
|
113,989
|
|
128,233
|
|
19,653
|
|
Operating lease
liabilities
|
1,717
|
|
3,116
|
|
478
|
|
Deferred
revenue
|
402,751
|
|
423,350
|
|
64,881
|
|
Income tax
payable
|
32,329
|
|
27,038
|
|
4,144
|
|
Total current
liabilities
|
570,778
|
|
591,480
|
|
90,649
|
|
Non-current deferred
revenue
|
2,289,762
|
|
2,367,446
|
|
362,827
|
|
Non-current operating
lease liabilities
|
1,782
|
|
195
|
|
30
|
|
Other non-current
liabilities
|
450,900
|
|
473,990
|
|
72,642
|
|
Deferred tax
liabilities
|
18,140
|
|
16,990
|
|
2,604
|
|
Total
liabilities
|
3,331,362
|
|
3,450,101
|
|
528,752
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders'
equity of Global Cord Blood
|
|
|
|
|
|
|
Corporation
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
|
- US$0.0001 par
value, 250,000,000 shares authorized,
|
|
|
|
|
|
|
121,687,974 and
121,551,075 shares issued and
|
|
|
|
|
|
|
outstanding as of March
31 and December 31, 2020,
|
|
|
|
|
|
|
respectively
|
83
|
|
83
|
|
13
|
|
Additional paid-in
capital
|
2,101,582
|
|
2,101,582
|
|
322,082
|
|
Treasury stock, at
cost (March 31 and December 31,
|
|
|
|
|
|
|
2020: 136,899 shares,
respectively)
|
(2,815)
|
|
(2,815)
|
|
(431)
|
|
Accumulated other
comprehensive losses
|
(94,663)
|
|
(103,593)
|
|
(15,876)
|
|
Retained
earnings
|
1,877,940
|
|
2,258,453
|
|
346,122
|
|
Total equity
attributable to Global Cord Blood
|
|
|
|
|
|
|
Corporation
|
3,882,127
|
|
4,253,710
|
|
651,910
|
|
Non-controlling
interests
|
6,364
|
|
11,755
|
|
1,802
|
|
Total
equity
|
3,888,491
|
|
4,265,465
|
|
653,712
|
|
Total liabilities
and equity
|
7,219,853
|
|
7,715,566
|
|
1,182,464
|
|
EXHIBIT
2
|
|
|
|
GLOBAL CORD BLOOD
CORPORATION
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
For the Three Months
and Nine Months Ended December 31, 2019 and 2020
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Nine months ended
December 31,
|
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
334,733
|
|
290,798
|
|
44,567
|
|
921,572
|
|
857,318
|
|
131,389
|
|
Cost of
revenues
|
|
(51,606)
|
|
(44,878)
|
|
(6,878)
|
|
(145,670)
|
|
(133,039)
|
|
(20,389)
|
|
Gross
profit
|
|
283,127
|
|
245,920
|
|
37,689
|
|
775,902
|
|
724,279
|
|
111,000
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(6,404)
|
|
(8,985)
|
|
(1,377)
|
|
(17,504)
|
|
(18,283)
|
|
(2,802)
|
|
Sales and
marketing
|
|
(75,936)
|
|
(68,994)
|
|
(10,574)
|
|
(201,453)
|
|
(178,178)
|
|
(27,307)
|
|
General and
administrative
|
|
(47,914)
|
|
(43,984)
|
|
(6,741)
|
|
(147,251)
|
|
(131,191)
|
|
(20,106)
|
|
Total operating
expenses
|
|
(130,254)
|
|
(121,963)
|
|
(18,692)
|
|
(366,208)
|
|
(327,652)
|
|
(50,215)
|
|
Operating
income
|
|
152,873
|
|
123,957
|
|
18,997
|
|
409,694
|
|
396,627
|
|
60,785
|
|
Other income,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
6,350
|
|
7,190
|
|
1,102
|
|
19,072
|
|
22,767
|
|
3,489
|
|
Foreign currency
exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gains/(losses)
|
|
26
|
|
75
|
|
11
|
|
(164)
|
|
183
|
|
28
|
|
Change in fair value of
equity securities
|
|
8,047
|
|
6,003
|
|
920
|
|
10,983
|
|
30,107
|
|
4,614
|
|
Dividend
income
|
|
-
|
|
-
|
|
-
|
|
507
|
|
1,281
|
|
196
|
|
Others
|
|
4,515
|
|
2,152
|
|
330
|
|
5,277
|
|
5,070
|
|
777
|
|
Total other income,
net
|
|
18,938
|
|
15,420
|
|
2,363
|
|
35,675
|
|
59,408
|
|
9,104
|
|
Income before income
tax
|
|
171,811
|
|
139,377
|
|
21,360
|
|
445,369
|
|
456,035
|
|
69,889
|
|
Income tax
expense
|
|
(25,644)
|
|
(21,220)
|
|
(3,252)
|
|
(67,207)
|
|
(70,131)
|
|
(10,748)
|
|
Net
income
|
|
146,167
|
|
118,157
|
|
18,108
|
|
378,162
|
|
385,904
|
|
59,141
|
|
Net
income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(1,154)
|
|
(1,587)
|
|
(243)
|
|
(4,452)
|
|
(5,391)
|
|
(826)
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Cord Blood
Corporation's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
145,013
|
|
116,570
|
|
17,865
|
|
373,710
|
|
380,513
|
|
58,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
1.19
|
|
0.96
|
|
0.15
|
|
3.07
|
|
3.13
|
|
0.48
|
|
-
Diluted
|
|
1.19
|
|
0.96
|
|
0.15
|
|
3.07
|
|
3.13
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive losses,
net of nil income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign
currency translation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
|
(30,953)
|
|
(4,289)
|
|
(657)
|
|
(7,800)
|
|
(8,930)
|
|
(1,369)
|
|
Comprehensive
income
|
|
115,214
|
|
113,868
|
|
17,451
|
|
370,362
|
|
376,974
|
|
57,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(1,154)
|
|
(1,587)
|
|
(243)
|
|
(4,452)
|
|
(5,391)
|
|
(826)
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to Global
Cord
Blood Corporation's shareholders
|
|
114,060
|
|
112,281
|
|
17,208
|
|
365,910
|
|
371,583
|
|
56,946
|
|
EXHIBIT
3
|
|
GLOBAL CORD
BLOOD CORPORATION
RECONCILIATION OF
NON-GAAP OPERATING INCOME
For the Three Months
and Nine Months Ended December 31, 2019 and 2020
|
|
|
|
Three months
ended
December
31,
|
|
Nine months
ended
December
31,
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in
thousands)
|
GAAP amount of
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
152,873
|
|
123,957
|
|
18,997
|
|
409,694
|
|
396,627
|
|
60,785
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses[4]
|
|
12,140
|
|
12,297
|
|
1,885
|
|
37,040
|
|
36,919
|
|
5,658
|
Non-GAAP
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
165,013
|
|
136,254
|
|
20,882
|
|
446,734
|
|
433,546
|
|
66,443
|
[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-third-quarter-and-first-nine-months-of-fiscal-2021-301234336.html
SOURCE Global Cord Blood Corporation