3Q19 Added 23,663 New
Subscribers
Revenues Up 3.7% YoY to RMB254.2 Million ($37.0
Million)
Operating Income
Increased to RMB92.6
Million ($13.5
Million)
Conference Call to be Held on
February 26, 2019 at 8:00 a.m. ET
HONG KONG, Feb. 25, 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 third quarter and first nine months of
fiscal year 2019 ended December 31,
2018.
Third Quarter of Fiscal 2019 Highlights
- Revenues increased by 3.7% year over year ("YoY") to
RMB254.2 million ($37.0 million).
- New subscribers and accumulated subscriber base were 23,663 and
728,279[1], respectively.
- Gross profit increased by 3.9% YoY to RMB205.9 million ($30.0
million).
- Gross margin increased marginally from 80.9% in the prior year
period to 81.0%.
- Operating income increased by 18.1% YoY to RMB92.6 million ($13.5
million).
- Operating income before depreciation and amortization and
share-based compensation expenses[2] ("non-GAAP
operating income") was down by 4.9% YoY to RMB105.3 million ($15.3
million), in light of higher sales and marketing
expenses.
- Net income attributable to the Company's shareholders was
RMB61.4 million ($8.9 million) compared to RMB69.9 million in the prior year period, after
taking into account the unrealized holding loss of RMB28.4 million ($4.1
million) for equity securities, or more commonly known as
mark-to-market loss, following the adoption of a new accounting
standard[3].
- Net cash provided by operating activities for the third quarter
of fiscal 2019 was RMB183.7 million
($26.7 million).
First Nine Months of Fiscal 2019 Highlights
- Revenues for the first nine months of fiscal 2019 increased by
4.4% YoY to RMB735.1 million
($106.9 million).
- New subscriber sign-ups were 67,172, and accumulated subscriber
base expanded to 728,279[1].
- Gross profit increased by 5.3% YoY to RMB596.5 million ($86.8
million).
- Operating income increased by 23.2% YoY to RMB292.8 million ($42.6
million).
- Non-GAAP operating income[2] increased by 6.5% YoY
to RMB332.1 million ($48.3 million).
- Net income attributable to the Company's shareholders was
RMB200.0 million ($29.1 million) compared to RMB206.6 million in the prior year period, after
taking into account the unrealized holding loss of RMB 68.7 million ($10.0
million).
- Net cash provided by operating activities for the first nine
months of fiscal 2019 was RMB570.6
million ($83.0 million).
"During the third quarter, we augmented our sales and marketing
efforts as market conditions have shifted to a more cautious
consumer spending environment. Consequently, our new subscribers
increased by 3.3% from the previous quarter and were in line with
our expectations." said Ms. Ting Zheng, Chairperson and Chief
Executive Officer of GCBC. "Although economic and industry
uncertainties remain, we are committed to achieving our annual
subscriber target for fiscal 2019. To expand revenue sources and
enhance our leading position, we will remain flexible and adjust to
market conditions as necessary to maximize our financial
performance and explore potential development opportunities."
Summary -
Third Quarter and First Nine Months Ended December 31, 2017 and
2018
|
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues
|
|
244,993
|
|
254,178
|
|
36,969
|
|
703,787
|
|
735,103
|
|
106,916
|
Gross
Profit
|
|
198,167
|
|
205,947
|
|
29,954
|
|
566,535
|
|
596,451
|
|
86,750
|
Operating
Income[4]
|
|
78,380
|
|
92,595
|
|
13,468
|
|
237,669
|
|
292,803
|
|
42,586
|
Unrealized Holding
Loss For
Equity Securities[3]
|
|
-
|
|
(28,385)
|
|
(4,128)
|
|
-
|
|
(68,651)
|
|
(9,985)
|
Net Income
Attributable to
the Company's
Shareholders
|
|
69,854
|
|
61,360
|
|
8,927
|
|
206,584
|
|
200,016
|
|
29,091
|
Earnings per
Share[5]
|
|
|
|
|
|
|
|
|
|
|
|
|
(RMB/US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.61
|
|
0.51
|
|
0.07
|
|
1.83
|
|
1.66
|
|
0.24
|
-
Diluted
|
|
0.61
|
|
0.51
|
|
0.07
|
|
1.83
|
|
1.65
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing Fees and
Other
Services
|
|
66.7%
|
|
61.9%
|
|
|
|
66.0%
|
|
61.5%
|
|
|
Storage
Fees
|
|
33.3%
|
|
38.1%
|
|
|
|
34.0%
|
|
38.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
|
24,229
|
|
23,663
|
|
|
|
70,399
|
|
67,172
|
|
|
Total Accumulated
Subscribers (persons)
|
|
640,311
|
|
728,279[1]
|
|
|
|
640,311
|
|
728,279[1]
|
|
|
|
Summary -
Selected Cash Flow Statement Items
|
|
|
|
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net cash provided
by
operating activities
|
|
182,702
|
|
183,689
|
|
26,716
|
|
624,412
|
|
570,623
|
|
82,994
|
Net cash used in
investing activities
|
|
(25,342)
|
|
(13,754)
|
|
(2,000)
|
|
(47,359)
|
|
(29,702)
|
|
(4,320)
|
Net cash used in
financing activities
|
|
(2,015)
|
|
-
|
|
-
|
|
(2,015)
|
|
(18,173)
|
|
(2,643)
|
Third Quarter of Fiscal 2019 Financial Results
REVENUES. Revenues increased by 3.7% YoY to
RMB254.2 million ($37.0 million) in the third quarter of fiscal
2019. The increase was mainly driven by the Company's expanding
total subscriber base, which was partially offset by the YoY
decrease in new subscribers.
Revenues generated from storage fees increased by 18.6% YoY to
RMB96.9 million ($14.1 million) in the reporting quarter. The
accumulated subscriber base as of December
31, 2018, was 728,279[1]. Storage fee revenues
accounted for 38.1% of total revenues compared to 33.3% in the
prior year period.
Revenues generated from processing fees and other services in
the third quarter was RMB157.3
million ($22.9 million).
23,663 new subscriber sign-ups were recorded during the reporting
quarter, down by 2.3% YoY but up by 3.3% quarter over quarter
("QoQ"), in spite of conservative consumer behavior during the
reporting quarter. Revenues generated from processing fees
accounted for 61.9% of total revenues compared to 66.7% in the
prior year period.
GROSS PROFIT. Gross profit for the third quarter
increased by 3.9% YoY to RMB205.9
million ($30.0 million). Gross
margin improved slightly to 81.0% from 80.9% in the prior year
period.
OPERATING INCOME. Despite higher sales and
marketing expenses due to increased efforts to recruit new
subscribers, operating income in the third quarter increased by
18.1% YoY to RMB92.6 million
($13.5 million), because of the
absence of share-based compensation expense related to the
Company's restricted share units ("RSUs") scheme. In the prior year
period, there was RMB19.8 million in
share-based compensation expense whereas no such expense has been
recognized since April 1, 2018.
Operating margin improved to 36.4%. Depreciation and amortization
expenses for the reporting quarter remained at RMB12.7 million ($1.9
million), similar to the prior year period. Accumulatively,
non-GAAP operating income[2] was RMB105.3 million ($15.3
million), compared to RMB110.8
million in the prior year period.
Sales and Marketing Expenses. Sales and marketing
expenses for the third quarter increased by 8.2% YoY to
RMB64.9 million ($9.4 million) as the Company continued to invest
in its sales and marketing capabilities. The Company increased its
sales force to more than 750 people, representing an increase in
head count of over 20%. Marketing and promotional activities were
heavier during the third quarter of fiscal 2019 as the Company
hosted and sponsored multiple conferences and exhibitions,
promoting industry advancements to potential clients as well as to
the broader medical community. Sales and marketing expenses as a
percentage of revenues increased moderately to 25.5% from 24.5% of
the same quarter last year, remained in check.
General and Administrative Expenses. During the
reporting quarter, general and administrative expenses decreased by
21.2% YoY to RMB44.8 million
($6.5 million), which was mainly
driven by the absence of share-based compensation expense related
to the Company's RSUs scheme. General and administrative expenses
as a percentage of revenues declined to 17.6% from 23.2% in the
same quarter of the previous year.
OTHER INCOME AND EXPENSES.
Unrealized holding loss for equity securities. In
the reporting period, the Company recognized RMB28.4 million ($4.1
million) unrealized holding loss for equity securities, or
more commonly known as mark-to-market loss, as other expenses under
the new accounting standard. Such loss was mainly attributable to
the investments in Cordlife Group Limited ("CGL"). In the prior
year period, unrealized holding gains for equity securities of
RMB3.4 million was recorded as other
comprehensive loss[3].
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. As the increase in operating income was
impaired by the mark-to-market loss, income before income tax for
the third quarter decreased by 12.4% YoY to RMB75.2 million ($10.9
million). Income tax expense for the third quarter was down
to RMB13.4 million ($2.0 million) from RMB15.6
million in the prior year period. Net income attributable to
the Company's shareholders for the third quarter decreased by 12.2%
YoY to RMB61.4 million ($8.9 million). Net margin for the third quarter
was 24.1%.
EARNINGS PER SHARE[5].
Basic and diluted earnings per ordinary share for the third quarter
of fiscal 2019 were RMB0.51
($0.07) compared to RMB0.61 in the prior year period. The difference
was largely a result of a greater number of shares outstanding
compared to the prior year.
First Nine Months of Fiscal 2019 Financial Results
For the first nine months of fiscal year 2019, total revenues
increased by 4.4% YoY to RMB735.1
million ($106.9 million). The
increase was mainly attributable to an increase in the Company's
storage fee revenues from its growing accumulated subscriber base.
Revenues from storage fees increased by 18.1% YoY to RMB282.7 million ($41.1
million) and revenues from processing fees and other
services were down by 2.6% YoY to RMB452.4
million ($65.8 million). Gross
profit increased by 5.3% YoY to RMB596.5
million ($86.8 million).
Operating income increased by 23.2% YoY to RMB292.8 million ($42.6
million). Non-GAAP operating income[2] increased
by 6.5% YoY to RMB332.1 million
($48.3 million). Net income
attributable to the Company's shareholders was RMB200.0 million ($29.1
million) compared to RMB206.6
million in the prior year period, after taking into account
the unrealized holding loss of RMB68.7
million ($10.0 million) for
equity securities following the adoption of a new accounting
standard[3]. Basic and diluted earnings per
share[5] attributable to ordinary shares were
RMB1.66 ($0.24) and RMB1.65
($0.24), respectively, compared to
RMB1.83 in the same period last
year. Net cash provided by operating activities in the first
nine months of fiscal 2019 was RMB570.6
million ($83.0 million)
compared to RMB624.4 million in the
prior year period.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on
Tuesday, February 26, 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 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: 70721948#.
[1] During the three and nine months
ended December 31, 2018, 23,663 and 67,172 new subscribers were
recruited, respectively. The Company reclassified 74 and 511
private cord blood units as donated cord blood units during the
three months and nine months ended December 31, 2018 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 728,279 as of December 31, 2018.
|
|
[2] See exhibit 3 of 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 expenses to the
comparable financial measure prepared in accordance with U.S.
generally accepted accounting principles ("U.S. GAAP").
|
|
[3]
Unrealized holding loss for equity securities was recognized as
other expenses instead of other comprehensive losses as practiced
previously because of the adoption of Accounting Standards Update
No. 2016-01 from April 1, 2018. During the three months ended
December 31, 2017 and 2018, unrealized holding loss for equity
securities was RMB3.4 million and RMB28.4 million ($4.1 million),
respectively.
|
|
[4] The reported operating income for
the three months and nine months ended December 31, 2017 and
2018 included the following:
(i) Depreciation and amortization expenses for the three
months ended December 31, 2017 and 2018 were RMB12.7 million and
RMB12.7 million ($1.9 million). Depreciation and amortization
expenses for the nine months ended December 31, 2017 and 2018 were
RMB37.8 million and RMB39.3 million ($5.7 million); and
(ii) For the three and nine months ended December 31, 2017,
share-based compensation expenses related to the Company's RSUs
scheme were RMB19.8 million and RMB36.4 million, respectively,
whereas no such expense or reversal was recorded in the current
quarter since the RSUs were fully vested in the quarter ended
March 31, 2018.
|
|
[5] Taking into account the 7,080,000
shares (related to the RSU scheme) issued and deposited to a trust
sponsored and funded by the Company, in addition to 113,524,742
outstanding shares for the three months and nine months ended
December 31, 2017, basic and diluted earnings per ordinary share
would be RMB0.58 and RMB1.73 for the three and nine months ended
December 31, 2017. During the quarter ended September 30, 2018,
726,333 scrip dividend shares were issued. Therefore, 121,687,974
and 121,551,075 shares were issued and outstanding as of December
31, 2018.
|
Use of Non-GAAP Financial Measures
GAAP results for the three and nine months ended December 31, 2018, include non-cash items related
to the depreciation and amortization and share-based compensation
expenses. To supplement the Company's unaudited condensed
consolidated financial statements presented on a U.S. GAAP basis,
the Company has provided adjusted financial information excluding
the impact of these items in this press release. The non-GAAP
financial measure represents non-GAAP operating income. Such
adjustment is a departure of U.S. GAAP; however, the Company's
management believes that these adjusted measures provide investors
with a better understanding of how the results relate to the
Company's historical performance. Also, management uses non-GAAP
operating income as a measurement tool for evaluating actual
operating performance compared to budget and prior periods. These
adjusted measures should not be considered an alternative to
operating income, or any other measure of financial performance or
liquidity presented in accordance with U.S. GAAP. These measures
are not necessarily comparable to a similarly titled measure of
another company. A reconciliation of the adjustments to U.S. GAAP
results appears in exhibit 3 accompanying this press release. This
additional adjusted information is not meant to be considered in
isolation or as a substitute for U.S. GAAP financials. The adjusted
financial information that the Company provides also may differ
from the adjusted information provided by other companies.
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;
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
December 31, 2018 were made at the
noon buying rate of RMB6.8755 to
$1.00 on December 31, 2018 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
Global Cord Blood Corporation makes no representation that the
Renminbi or U.S. dollar amounts referred to in this press release
could have been or could be converted into U.S. dollars or
Renminbi, at any particular rate or at all.
For more information, please contact:
Global Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@globalcordbloodcorp.com
ICR, Inc.
William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com
EXHIBIT
1
|
|
GLOBAL CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
As of March 31, and
December 31, 2018
|
|
|
March
31,
|
|
December
31,
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands
except share data)
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
4,250,610
|
|
4,781,591
|
|
695,454
|
Accounts receivable,
less allowance for doubtful accounts
(March 31, 2018: RMB58,227; December 31, 2018:
RMB82,197 (US$11,955))
|
107,818
|
|
96,846
|
|
14,086
|
Inventories
|
27,718
|
|
23,039
|
|
3,351
|
Prepaid expenses and
other receivables
|
22,276
|
|
27,064
|
|
3,936
|
Total current
assets
|
4,408,422
|
|
4,928,540
|
|
716,827
|
Property, plant and
equipment, net
|
552,960
|
|
546,839
|
|
79,534
|
Non-current
deposits
|
233,115
|
|
245,194
|
|
35,662
|
Non-current accounts
receivable, less allowance for doubtful
accounts (March 31, 2018: RMB69,713; December 31,
2018: RMB74,677 (US$10,861))
|
101,809
|
|
101,034
|
|
14,695
|
Inventories
|
71,758
|
|
75,695
|
|
11,009
|
Intangible assets,
net
|
102,065
|
|
98,600
|
|
14,341
|
Investment in equity
securities
|
153,882
|
|
98,334
|
|
14,302
|
Other
investment
|
189,129
|
|
189,129
|
|
27,508
|
Deferred tax
assets
|
31,295
|
|
41,405
|
|
6,022
|
Total
assets
|
5,844,435
|
|
6,324,770
|
|
919,900
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
11,372
|
|
13,379
|
|
1,946
|
Accrued expenses and
other payables
|
73,023
|
|
84,214
|
|
12,248
|
Deferred
revenue
|
366,373
|
|
395,069
|
|
57,460
|
Income tax
payable
|
17,407
|
|
17,909
|
|
2,605
|
Total current
liabilities
|
468,175
|
|
510,571
|
|
74,259
|
Non-current deferred
revenue
|
1,874,014
|
|
2,056,445
|
|
299,098
|
Other non-current
liabilities
|
362,876
|
|
393,726
|
|
57,265
|
Deferred tax
liabilities
|
20,628
|
|
19,904
|
|
2,895
|
Total
liabilities
|
2,725,693
|
|
2,980,646
|
|
433,517
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Shareholders'
equity of Global Cord Blood
Corporation
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
- US$0.0001 par
value, 250,000,000 shares authorized,
120,961,641 and 120,824,742 shares issued and
outstanding as of March 31, 2018 and 121,687,974
and 121,551,075 shares issued and outstanding
as of December 31, 2018
|
83
|
|
83
|
|
12
|
Additional paid-in
capital
|
2,053,866
|
|
2,101,582
|
|
305,662
|
Treasury stock, at
cost (March 31 and December 31,
2018: 136,899 shares, respectively)
|
(2,815)
|
|
(2,815)
|
|
(409)
|
Accumulated other
comprehensive losses
|
(54,654)
|
|
(78,665)
|
|
(11,441)
|
Retained
earnings
|
1,116,873
|
|
1,316,115
|
|
191,421
|
Total equity
attributable to Global Cord Blood
Corporation
|
3,113,353
|
|
3,336,300
|
|
485,245
|
Non-controlling
interests
|
5,389
|
|
7,824
|
|
1,138
|
Total
equity
|
3,118,742
|
|
3,344,124
|
|
486,383
|
Total liabilities
and equity
|
5,844,435
|
|
6,324,770
|
|
919,900
|
EXHIBIT
2
|
|
GLOBAL CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
For the Three Months
and Nine Months Ended December 31, 2017 and 2018
|
|
|
|
Three months ended
December 31,
|
|
Nine months ended
December 31,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
244,993
|
|
254,178
|
|
36,969
|
|
703,787
|
|
735,103
|
|
106,916
|
Direct costs
|
|
(46,826)
|
|
(48,231)
|
|
(7,015)
|
|
(137,252)
|
|
(138,652)
|
|
(20,166)
|
Gross
profit
|
|
198,167
|
|
205,947
|
|
29,954
|
|
566,535
|
|
596,451
|
|
86,750
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(2,930)
|
|
(3,672)
|
|
(534)
|
|
(9,273)
|
|
(10,053)
|
|
(1,462)
|
Sales and
marketing
|
|
(59,947)
|
|
(64,858)
|
|
(9,433)
|
|
(159,549)
|
|
(167,761)
|
|
(24,400)
|
General and
administrative
|
|
(56,910)
|
|
(44,822)
|
|
(6,519)
|
|
(160,044)
|
|
(125,834)
|
|
(18,302)
|
Total operating
expenses
|
|
(119,787)
|
|
(113,352)
|
|
(16,486)
|
|
(328,866)
|
|
(303,648)
|
|
(44,164)
|
Operating
income
|
|
78,380
|
|
92,595
|
|
13,468
|
|
237,669
|
|
292,803
|
|
42,586
|
Other
income/(expenses), net
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
5,416
|
|
7,168
|
|
1,043
|
|
16,033
|
|
19,271
|
|
2,803
|
Interest
expense
|
|
-
|
|
-
|
|
-
|
|
(3,257)
|
|
-
|
|
-
|
Foreign currency
exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
gains/(losses)
|
|
7
|
|
(2)
|
|
-
|
|
118
|
|
(77)
|
|
(11)
|
Unrealized holding loss
for equity
securities
|
|
-
|
|
(28,385)
|
|
(4,128)
|
|
-
|
|
(68,651)
|
|
(9,985)
|
Dividend
income
|
|
634
|
|
-
|
|
-
|
|
634
|
|
976
|
|
142
|
Others
|
|
1,405
|
|
3,799
|
|
553
|
|
3,547
|
|
2,984
|
|
434
|
Total other
income/(expenses),
net
|
|
7,462
|
|
(17,420)
|
|
(2,532)
|
|
17,075
|
|
(45,497)
|
|
(6,617)
|
Income before income
tax
|
|
85,842
|
|
75,175
|
|
10,936
|
|
254,744
|
|
247,306
|
|
35,969
|
Income tax
expense
|
|
(15,639)
|
|
(13,410)
|
|
(1,950)
|
|
(45,885)
|
|
(44,855)
|
|
(6,524)
|
Net
income
|
|
70,203
|
|
61,765
|
|
8,986
|
|
208,859
|
|
202,451
|
|
29,445
|
Net
income attributable to non-controlling interests
|
|
(349)
|
|
(405)
|
|
(59)
|
|
(2,275)
|
|
(2,435)
|
|
(354)
|
Net income
attributable to
Global Cord Blood
Corporation's
shareholders
|
|
69,854
|
|
61,360
|
|
8,927
|
|
206,584
|
|
200,016
|
|
29,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.61
|
|
0.51
|
|
0.07
|
|
1.83
|
|
1.66
|
|
0.24
|
-
Diluted
|
|
0.61
|
|
0.51
|
|
0.07
|
|
1.83
|
|
1.65
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive
(losses)/income, net of
nil income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign
currency translation
adjustments
|
|
(12,961)
|
|
828
|
|
120
|
|
(33,068)
|
|
38,305
|
|
5,571
|
- Unrealized holding
losses
in available-for-sale
equity securities
|
|
3,383
|
|
-
|
|
-
|
|
(27,104)
|
|
-
|
|
-
|
Total other
comprehensive
(losses)/income
|
|
(9,578)
|
|
828
|
|
120
|
|
(60,172)
|
|
38,305
|
|
5,571
|
Comprehensive
income
|
|
60,625
|
|
62,593
|
|
9,106
|
|
148,687
|
|
240,756
|
|
35,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to
non-controlling interests
|
|
(349)
|
|
(405)
|
|
(59)
|
|
(2,275)
|
|
(2,435)
|
|
(354)
|
Comprehensive
income
attributable to Global Cord Blood
Corporation's shareholders
|
|
60,276
|
|
62,188
|
|
9,047
|
|
146,412
|
|
238,321
|
|
34,662
|
EXHIBIT
3
|
GLOBAL CORD BLOOD
CORPORATION
|
RECONCILIATION OF
NON-GAAP OPERATING INCOME
|
For the Three Months
and Nine Months Ended December 31, 2017 and 2018
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP amount of
operating
income
|
|
78,380
|
|
92,595
|
|
13,468
|
|
237,669
|
|
292,803
|
|
42,586
|
Depreciation and
amortization expenses[6]
|
|
12,660
|
|
12,737
|
|
1,853
|
|
37,766
|
|
39,274
|
|
5,712
|
Share-based
compensation
expense[7]
|
|
19,757
|
|
-
|
|
-
|
|
36,379
|
|
-
|
|
-
|
Non-GAAP
operating
income
|
|
110,797
|
|
105,332
|
|
15,321
|
|
311,814
|
|
332,077
|
|
48,298
|
[6] Depreciation and amortization
expenses relate to property, plant and equipment and intangible
assets, respectively.
|
|
[7] Share-based compensation expense
relates to the Company's RSU scheme of which the shares have been
fully vested in the quarter ended March 31, 2018, accordingly there
will be no share-based compensation expense relating to those RSUs
amortized in future periods.
|
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-2019-300801049.html
SOURCE Global Cord Blood Corporation