HONG KONG, Nov. 26, 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 second quarter and first half of fiscal
year 2020 ended September 30,
2019.
Second Quarter of Fiscal 2020 Highlights
- Revenues increased by 26.9% year over year ("YoY") to
RMB313.5 million ($43.9 million).
- New subscribers and accumulated subscriber base were 21,551 and
791,812[1], respectively.
- Gross profit increased by 32.7% YoY to RMB265.1 million ($37.1
million).
- Gross margin increased from 80.9% in the prior year period to
84.6%.
- Operating income increased by 37.9% YoY to RMB144.4 million ($20.2
million).
- Operating income before depreciation and amortization
("non-GAAP operating income[2]") increased by 32.8% YoY
to RMB156.9 million ($22.0 million).
- Net income attributable to the Company's shareholders increased
by 84.8% to RMB120.4 million
($16.8 million), as last year period
recorded a significant decrease in fair value for equity securities
("mark-to-market loss") of RMB30.9
million compared to that of RMB7.0
million ($1.0 million) in the
reporting quarter.
- Net cash provided by operating activities was RMB208.3 million ($29.1
million).
First Half of Fiscal 2020 Highlights
- Revenues increased by 22.0% YoY to RMB586.8 million ($82.1
million).
- New subscriber sign-up was 42,366, and accumulated subscriber
base expanded to 791,812[1].
- Gross profit increased by 26.2% YoY to RMB492.8 million ($68.9
million).
- Operating income increased by 28.3% YoY to RMB256.8 million ($35.9
million).
- Non-GAAP operating income[2] increased by 24.2% YoY
to RMB281.7 million ($39.4 million).
- Net income attributable to the Company's shareholders increased
by 64.9% to RMB228.7 million
($32.0 million), mainly attributable
to the increase in operating income and the significant decrease in
mark-to-market loss in the reporting six months.
- Net cash provided by operating activities for the first half of
fiscal 2020 was RMB378.0 million
($52.9 million).
"Despite the prolonged cautious consumer sentiment in our
markets fueled in part with slower economic growth in China, the US-China trade tensions, and our
recent price adjustment, we managed to recruit 21,551 new
subscribers in the second quarter, on track with our annual
target." said Ms. Ting Zheng,
Chairperson and Chief Executive Officer of GCBC. "With the
Regulation of the People's Republic of
China on the Administration of Human Genetic Resources
coming into effect, we are
evaluating its implications and other potential regulatory
developments affecting our business. At the same time, we will
continue to look for opportunities to broaden our revenue sources,
and are prepared to adjust our strategy and market positioning to
cope with any potential changes within the industry."
Summary –
Second Quarter and First Half Ended September 30, 2018 and
2019
|
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
247,104
|
|
313,464
|
|
43,855
|
|
480,925
|
|
586,839
|
|
82,102
|
Gross
Profit
|
|
199,841
|
|
265,149
|
|
37,095
|
|
390,504
|
|
492,775
|
|
68,942
|
Operating
Income[3]
|
|
104,766
|
|
144,435
|
|
20,207
|
|
200,208
|
|
256,821
|
|
35,930
|
Change in Fair Value
of
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Securities
|
|
(30,945)
|
|
(7,043)
|
|
(985)
|
|
(40,266)
|
|
2,936
|
|
411
|
Net Income
Attributable to
the Company's
Shareholders
|
|
65,114
|
|
120,353
|
|
16,838
|
|
138,656
|
|
228,697
|
|
31,996
|
Earnings per
Ordinary
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
(RMB/US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
–
Basic
|
|
0.54
|
|
0.99
|
|
0.14
|
|
1.15
|
|
1.88
|
|
0.26
|
–
Diluted
|
|
0.53
|
|
0.99
|
|
0.14
|
|
1.14
|
|
1.88
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing Fees and
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
61.4%
|
|
63.9%
|
|
|
|
61.4%
|
|
62.7%
|
|
|
Storage
Fees
|
|
38.6%
|
|
36.1%
|
|
|
|
38.6%
|
|
37.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
|
22,908
|
|
21,551
|
|
|
|
43,509
|
|
42,366
|
|
|
Total Accumulated
Subscribers (persons)
|
|
704,690
|
|
791,812[1]
|
|
|
|
704,690
|
|
791,812[1]
|
|
|
|
|
Summary – Selected
Cash Flow Statement Items
|
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Net cash provided
by
|
|
|
|
|
|
|
|
|
|
|
|
|
operating
activities
|
|
211,617
|
|
208,255
|
|
29,136
|
|
386,934
|
|
378,011
|
|
52,886
|
Net cash (used in)/
|
|
|
|
|
|
|
|
|
|
|
|
|
provided
by
|
|
|
|
|
|
|
|
|
|
|
|
|
investing
activities
|
|
(8,822)
|
|
1,396
|
|
195
|
|
(15,948)
|
|
(5,229)
|
|
(732)
|
Net cash used
in
|
|
|
|
|
|
|
|
|
|
|
|
|
financing
activities
|
|
(18,173)
|
|
(4,039)
|
|
(565)
|
|
(18,173)
|
|
(4,039)
|
|
(565)
|
Second Quarter of Fiscal 2020 Financial Results
REVENUES. Revenues increased by 26.9% YoY to
RMB313.5 million ($43.9 million) in the second quarter of fiscal
2020. The increase was mainly driven by the implementation of a new
processing fee since April 2019 as
well as the Company's continued enlargement of its total subscriber
base.
The Company recruited 21,551 new subscriber sign-ups during the
reporting quarter. Revenues generated from processing fees and
other services in the second quarter increased by 32.2% YoY to
RMB200.5 million ($28.1 million), representing 63.9% of total
revenues compared to 61.4% in the prior year period.
Revenues generated from storage fees increased by 18.4% YoY to
RMB113.0 million ($15.8 million) in the reporting quarter. The
accumulated subscriber base as of September
30, 2019 reached 791,812[1].
GROSS PROFIT. Gross profit for the second quarter
increased by 32.7% YoY to RMB265.1
million ($37.1 million). Gross
margin improved to 84.6% from 80.9% in the prior year period,
mainly driven by the increase in processing fees which exceeded the
increase in labor related costs.
OPERATING INCOME. With the processing fee
adjustment, operating income for the reporting quarter increased by
37.9% YoY to RMB144.4 million
($20.2 million). Operating margin
increased to 46.1% from 42.4% of the prior year period.
Depreciation and amortization expenses for the second quarter were
RMB12.5 million ($1.7 million), compared to RMB13.4 million in the same period last year.
Fueled by the topline growth, non-GAAP operating
income[2] increased by 32.8% YoY to RMB156.9 million ($22.0
million) in the reporting quarter.
Research and Development
Expenses. Research and development expenses amounted to
RMB6.4 million ($0.9 million) compared to RMB3.6 million in the prior year period, a
reflection of the Company's continuous efforts to enhance
operations through technology advancement.
Sales and Marketing
Expenses. Sales and marketing expenses amounted to
RMB64.9 million ($9.1 million) compared to RMB51.5 million in the prior year period. In
order to mitigate the impact from the increased processing fee and
encourage consumer spending on its services, the Company continued
to strengthen its sales teams through new recruits and higher
marketing and promotion spending. Sales and marketing expenses as a
percentage of revenues was 20.7%, similar to 20.8% of the prior
year period and down from 22.2% last quarter.
General and Administrative
Expenses. As a result of the increase in staff costs,
bad debt provision and legal and professional fees, general and
administrative expenses amounted to RMB49.4
million ($6.9 million),
compared to RMB40.0 million in the
same period last year. General and administrative expenses as a
percentage of revenues declined to 15.8% from 16.2% in the prior
year period.
OTHER INCOME AND EXPENSES.
Change in fair value of
equity securities. In the reporting period, the Company
recognized a decrease in fair value of equity securities, or
"mark-to-market loss", of RMB7.0
million ($1.0 million),
compared to the mark-to-market loss of RMB30.9 million in the prior year period. The
changes were mainly attributable to the investments in equity
securities.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. As a result of an increase in operating
income and a significant decrease in mark-to-market loss from
equity securities, income before income tax for the second quarter
increased by 77.8% YoY to RMB144.2
million ($20.2 million).
Income tax expense for the second quarter was RMB22.1 million ($3.1
million). Net income attributable to the Company's
shareholders for the reporting quarter increased by 84.8% YoY to
RMB120.4 million ($16.8 million). Net margin for the reporting
quarter improved to 38.4% from 26.4% in the prior year period.
EARNINGS PER SHARE. Basic and diluted earnings per
ordinary share for the second quarter of fiscal 2020 was
RMB0.99 ($0.14).
First Half of Fiscal 2020 Financial Results
For the first half of fiscal year 2020, total revenues increased
by 22.0% YoY to RMB586.8 million
($82.1 million). The increase was
mainly attributable to the new processing fee as well as an
increase in the Company's storage fee revenues from its accumulated
subscriber base. Revenues from processing fees and other services
increased by 24.7% YoY to RMB368.0
million ($51.5 million), and
revenues from storage fees increased by 17.7% YoY to RMB218.8 million ($30.6
million). Gross profit increased by 26.2% YoY to
RMB492.8 million ($68.9 million). Operating income increased by
28.3% YoY to RMB256.8 million
($35.9 million). Non-GAAP operating
income[2] increased by 24.2% YoY to RMB281.7 million ($39.4
million). Net income attributable to the Company's
shareholders improved by 64.9% to RMB228.7
million ($32.0 million). Basic
and diluted earnings per ordinary share was RMB1.88 ($0.26). Net cash provided by operating
activities in the first half of fiscal 2020 was RMB378.0 million ($52.9
million).
Recent 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 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.
On November 11, 2019, the Company
appointed Mr. Jack Chow as an
independent non-executive director of the Board. Mr. Chow has
extensive professional experience and a broad network in the
finance and investment industry and 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.
- 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 definitive agreement, and/or each
of Cordlife and the Company obtaining its relevant regulatory and
shareholders approval. 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 27, 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: 13679679#.
[1] During the three months and six
months ended September 30, 2019, 21,551 and 42,366 new subscribers
were recruited, respectively. The Company reclassified 438 and 827
private cord blood units as donated cord blood units during the
three months and six months ended September 30, 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 791,812 as of September 30, 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 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, 2018 and 2019 included
depreciation and amortization expenses related to property, plant
and equipment and intangible assets of RMB13.4 million and RMB12.5
million ($1.7 million), respectively. The reported operating income
for the six months ended September 30, 2018 and 2019 included
depreciation and amortization expenses related to property, plant
and equipment and intangible assets of RMB26.5 million and RMB24.9
million ($3.5 million), respectively.
|
Use of Non-GAAP Financial Measures
GAAP results for the three months and six months ended
September 30, 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 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;
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, 2019 were made at the
noon buying rate of RMB7.1477 to
$1.00 on September 30, 2019 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the
Federal Reserve Bank of New York.
Global Cord Blood Corporation makes no representation that the
Renminbi or U.S. dollar amounts referred to in this press release
could have been or could be converted into U.S. dollars or
Renminbi, at any particular rate or at all.
EXHIBIT
1
|
GLOBAL CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
As of March 31 and
September 30, 2019
|
|
|
March
31,
|
|
September
30,
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
US$
|
|
(in thousands
except share data)
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
4,997,861
|
|
5,368,285
|
|
751,050
|
Accounts receivable,
less allowance for doubtful accounts
|
|
|
|
|
|
(March 31,
2019: RMB89,634; September 30, 2019:
|
|
|
|
|
|
RMB106,504
(US$14,900))
|
96,923
|
|
97,060
|
|
13,580
|
Inventories
|
27,612
|
|
27,400
|
|
3,833
|
Prepaid expenses and
other receivables
|
25,532
|
|
19,340
|
|
2,706
|
Total current
assets
|
5,147,928
|
|
5,512,085
|
|
771,169
|
Property, plant and
equipment, net
|
545,340
|
|
534,873
|
|
74,832
|
Operating lease
right-of-use assets[4]
|
-
|
|
5,846
|
|
818
|
Non-current
deposits
|
236,719
|
|
243,713
|
|
34,097
|
Non-current accounts
receivable, less allowance for doubtful
|
|
|
|
|
|
accounts
(March 31, 2019: RMB74,800; September 30,
|
|
|
|
|
|
2019:
RMB72,693 (US$10,170))
|
104,857
|
|
123,291
|
|
17,249
|
Inventories
|
77,194
|
|
80,253
|
|
11,228
|
Intangible assets,
net
|
97,444
|
|
95,134
|
|
13,310
|
Investment in equity
securities at fair value
|
107,362
|
|
117,359
|
|
16,419
|
Other equity
investment
|
189,129
|
|
189,129
|
|
26,460
|
Deferred tax
assets
|
44,981
|
|
49,469
|
|
6,921
|
Total
assets
|
6,550,954
|
|
6,951,152
|
|
972,503
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
33,566
|
|
29,891
|
|
4,182
|
Accrued expenses and
other payables
|
79,977
|
|
102,363
|
|
14,322
|
Operating lease
liabilities[4]
|
-
|
|
2,149
|
|
301
|
Deferred
revenue
|
461,986
|
|
443,615
|
|
62,064
|
Income tax
payable
|
20,113
|
|
28,443
|
|
3,979
|
Total current
liabilities
|
595,642
|
|
606,461
|
|
84,848
|
Non-current deferred
revenue
|
2,108,442
|
|
2,211,652
|
|
309,421
|
Non-current operating
lease liabilities[4]
|
-
|
|
3,322
|
|
465
|
Other non-current
liabilities
|
404,482
|
|
432,953
|
|
60,573
|
Deferred tax
liabilities
|
19,626
|
|
18,854
|
|
2,638
|
Total
liabilities
|
3,128,192
|
|
3,273,242
|
|
457,945
|
|
EQUITY
|
|
|
|
|
|
Shareholders'
equity of Global Cord Blood
|
|
|
|
|
|
Corporation
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
- US$0.0001 par
value, 250,000,000 shares authorized,
|
|
|
|
|
|
121,687,974 and
121,551,075 shares issued and
|
|
|
|
|
|
outstanding as of March
31 and September 30, 2019,
|
|
|
|
|
|
respectively
|
83
|
|
83
|
|
12
|
Additional paid-in
capital
|
2,101,582
|
|
2,101,582
|
|
294,022
|
Treasury stock, at
cost (March 31 and September 30,
|
|
|
|
|
|
2019: 136,899 shares,
respectively)
|
(2,815)
|
|
(2,815)
|
|
(394)
|
Accumulated other
comprehensive losses
|
(88,738)
|
|
(65,585)
|
|
(9,176)
|
Retained
earnings
|
1,407,223
|
|
1,635,920
|
|
228,873
|
Total equity
attributable to Global Cord Blood
|
|
|
|
|
|
Corporation
|
3,417,335
|
|
3,669,185
|
|
513,337
|
Non-controlling
interests
|
5,427
|
|
8,725
|
|
1,221
|
Total
equity
|
3,422,762
|
|
3,677,910
|
|
514,558
|
Total liabilities
and equity
|
6,550,954
|
|
6,951,152
|
|
972,503
|
|
[4] Since April 1, 2019, the Company
adopted Accounting Standards Update Topic 842 using a modified
retrospective transition
approach which resulted in the recognition of right-of-use assets
and lease liabilities for operating leases as of April 1, 2019
of
approximately RMB6.9 million and RMB5.8 million,
respectively.
|
EXHIBIT
2
|
GLOBAL CORD BLOOD
CORPORATION
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
For the Three Months
and Six Months Ended September 30, 2018 and 2019
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
247,104
|
|
313,464
|
|
43,855
|
|
480,925
|
|
586,839
|
|
82,102
|
Direct costs
|
|
(47,263)
|
|
(48,315)
|
|
(6,760)
|
|
(90,421)
|
|
(94,064)
|
|
(13,160)
|
Gross
profit
|
|
199,841
|
|
265,149
|
|
37,095
|
|
390,504
|
|
492,775
|
|
68,942
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(3,590)
|
|
(6,399)
|
|
(895)
|
|
(6,381)
|
|
(11,100)
|
|
(1,553)
|
Sales and
marketing
|
|
(51,488)
|
|
(64,880)
|
|
(9,077)
|
|
(102,903)
|
|
(125,517)
|
|
(17,560)
|
General and
administrative
|
|
(39,997)
|
|
(49,435)
|
|
(6,916)
|
|
(81,012)
|
|
(99,337)
|
|
(13,899)
|
Total operating
expenses
|
|
(95,075)
|
|
(120,714)
|
|
(16,888)
|
|
(190,296)
|
|
(235,954)
|
|
(33,012)
|
Operating
income
|
|
104,766
|
|
144,435
|
|
20,207
|
|
200,208
|
|
256,821
|
|
35,930
|
Other
(expenses)/income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
6,405
|
|
6,502
|
|
910
|
|
12,103
|
|
12,722
|
|
1,780
|
Foreign currency
exchange losses
|
|
(49)
|
|
(162)
|
|
(23)
|
|
(75)
|
|
(190)
|
|
(27)
|
Change in fair value of
equity
securities
|
|
(30,945)
|
|
(7,043)
|
|
(985)
|
|
(40,266)
|
|
2,936
|
|
411
|
Dividend
income
|
|
976
|
|
-
|
|
-
|
|
976
|
|
507
|
|
71
|
Others
|
|
(56)
|
|
422
|
|
59
|
|
(815)
|
|
762
|
|
107
|
Total other
(expenses)/income, net
|
|
(23,669)
|
|
(281)
|
|
(39)
|
|
(28,077)
|
|
16,737
|
|
2,342
|
Income before income
tax
|
|
81,097
|
|
144,154
|
|
20,168
|
|
172,131
|
|
273,558
|
|
38,272
|
Income tax
expense
|
|
(14,921)
|
|
(22,087)
|
|
(3,090)
|
|
(31,445)
|
|
(41,563)
|
|
(5,815)
|
Net
income
|
|
66,176
|
|
122,067
|
|
17,078
|
|
140,686
|
|
231,995
|
|
32,457
|
Net
income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(1,062)
|
|
(1,714)
|
|
(240)
|
|
(2,030)
|
|
(3,298)
|
|
(461)
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Cord Blood
Corporation's
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
65,114
|
|
120,353
|
|
16,838
|
|
138,656
|
|
228,697
|
|
31,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.54
|
|
0.99
|
|
0.14
|
|
1.15
|
|
1.88
|
|
0.26
|
-
Diluted
|
|
0.53
|
|
0.99
|
|
0.14
|
|
1.14
|
|
1.88
|
|
0.26
|
|
Other
comprehensive income,
net of nil income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign
currency translation
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
|
14,597
|
|
12,800
|
|
1,791
|
|
37,477
|
|
23,153
|
|
3,239
|
Comprehensive
income
|
|
80,773
|
|
134,867
|
|
18,869
|
|
178,163
|
|
255,148
|
|
35,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(1,062)
|
|
(1,714)
|
|
(240)
|
|
(2,030)
|
|
(3,298)
|
|
(461)
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
Global Cord Blood
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporation's
shareholders
|
|
79,711
|
|
133,153
|
|
18,629
|
|
176,133
|
|
251,850
|
|
35,235
|
EXHIBIT
3
|
GLOBAL CORD BLOOD
CORPORATION
|
RECONCILIATION OF
NON-GAAP OPERATING INCOME
|
For the Three Months
and Six Months Ended September 30, 2018 and 2019
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP amount of
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
104,766
|
|
144,435
|
|
20,207
|
|
200,208
|
|
256,821
|
|
35,930
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses[5]
|
|
13,391
|
|
12,455
|
|
1,743
|
|
26,536
|
|
24,900
|
|
3,483
|
Non-GAAP
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
118,157
|
|
156,890
|
|
21,950
|
|
226,744
|
|
281,721
|
|
39,413
|
|
[5] 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-2020-300965236.html
SOURCE Global Cord Blood Corporation