HONG KONG, April 27, 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 provided an update on the
impact of the 2019 novel coronavirus ("COVID-19") on the Company's
expected fiscal 2021 operations.
Based on information available to date, management estimates
that the Company's new subscriber number in fiscal 2021 will
decrease to 60,000-65,000, a 19%-29% decrease from the Company's
fiscal 2020 new subscriber target, which is 80,000-85,000.
Under the anti-pandemic policies and measures taken by the
Chinese government, the risk levels associated with major cities
has decreased, and social and economic activities are gradually
resuming. However, hospitals, which are the Company's key promotion
and marketing channel, remain at the forefront in fighting this
pandemic and remain under strict supervision and control. In the
Company's key markets of Beijing
municipality, Guangdong province,
and Zhejiang province, the
Company's usual marketing and promotion activities are
significantly impacted by the control measures implemented by
authorities and hospitals, prompting it to constantly readjust its
marketing and promotion activities.
During this difficult time, the Company has prioritized employee
safety and protection by providing personal protective equipment
("PPE") to everyone, especially the frontline sales team, and by
implementing additional disinfection measures and work streams in
its day-to-day operating procedures. The management team has also
recalibrated its marketing and promotion efforts in order to better
serve and engage with target and existing clients. As a result,
operating costs have increased.
The negative economic impact brought forth by the COVID-19
pandemic has affected numerous industries and further erodes
already weak consumer sentiment. GCBC management expects that these
conditions, compounded by other factors, will adversely affect and
potentially delay potential clients' pregnancy plans. Therefore,
management believes it is possible that the number of newborns in
the Company's respective regions will remain low in the near term.
While the world is facing various challenges in response to
COVID-19, China may continue to
tighten its anti-pandemic policies and measures, which would add
further headwinds to the recovery pace of China's economy and consumer confidence. GCBC
management does not expect these conditions to be significantly
improved in the near term.
Under the impact of the COVID-19 pandemic, the Company
management is not optimistic regarding the general operating
environment. Current operating data points to the low end of the
expected fiscal 2021 new subscriber range. The management would
like to remind investors that the above estimation is a forecast
that reflects the Company's current and preliminary views, which is
subject to change and substantial uncertainties, particularly in
view of the potential impact of the COVID-19 outbreak, the effects
of which are difficult to analyze and predict. The management will
continue to monitor the evolvement of the pandemic and does not
exclude the possibility of further adjusting the Group strategy and
target as future situation and events unfold. Meanwhile, the
management will continue to proactively explore and identify
opportunities within the healthcare industry value chain to ensure
the Group future growth over the long run.
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.
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
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SOURCE Global Cord Blood Corporation