HONG KONG, Nov. 20, 2017 /PRNewswire/ -- China Cord
Blood Corporation (NYSE: CO) ("CCBC" 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 2018 ended September 30,
2017.
Second Quarter of Fiscal 2018 Highlights
- Revenues for the second quarter of fiscal 2018 increased by
27.4% to RMB234.6 million
($35.3 million) from RMB184.1 million in the prior year period.
- New subscribers and accumulated subscriber base were 23,647 and
620,6801,
respectively.
- Gross profit increased by 30.2% to RMB188.9 million ($28.4
million) from RMB145.1 million
in the prior year period.
- Gross margin increased to 80.5% from 78.8% in the prior year
period.
- Operating income increased by 39.4% to RMB76.3 million ($11.5
million) from RMB54.7 million
in the prior year period.
- Operating income before depreciation and amortization and
share-based compensation expenses was RMB108.7 million ($16.3
million), up 31.2% from RMB82.9
million in the prior year period.2
- Net income attributable to the Company's shareholders improved
to RMB67.6 million ($10.2 million) from RMB16.6 million in the prior year period as no
interest expense was recorded during this quarter.
- Net cash provided by operating activities for the second
quarter of fiscal 2018 increased to RMB215.3
million ($32.4 million) from
RMB136.3 million in the prior year
period.
First Half of Fiscal 2018 Highlights
- Revenues for the first half of fiscal 2018 increased by 28.5%
to RMB458.8 million ($69.0 million) from RMB357.1 million in the prior year period.
- New subscriber sign-ups reached 46,170, and accumulated
subscriber base expanded to 620,6801.
- Gross profit increased by 31.3% to RMB368.4 million ($55.4
million) from RMB280.6 million
in the prior year period.
- Operating income increased by 49.0% to RMB159.3 million ($23.9
million) from RMB106.9 million
in the prior year period.
- Operating income before depreciation and amortization and
share-based compensation expenses increased to RMB201.0 million ($30.2
million), or 23.6% year-over-year, from RMB162.6 million in the prior year
period.2
- Net income attributable to the Company's shareholders increased
materially to RMB136.7 million
($20.6 million) from RMB32.4 million in the prior year period.
- Net cash provided by operating activities for the first half of
fiscal 2018 increased significantly to RMB441.7 million ($66.4
million) from RMB267.3 million
in the prior year period.
"We are pleased with our growth in the second quarter,
highlighted by the number of new subscribers reaching 23,647, which
demonstrates the effectiveness of the tactics we adopted to
fine-tune front line sales and nurture our markets. As the
Guangdong division continues to
display strong growth momentum, the Zhejiang market continues to ramp up and the
Beijing market maintains a steady
pace of growth, we are prudently optimistic about this year's
prospect," said Ms. Ting Zheng, Chief Executive Officer of
China Cord Blood Corporation. "While keeping our focus on the
organic growth of our core business, we will also actively explore
potential investment opportunities to build multiple revenue
sources and boost profit growth as new challenges emerge to
maintain our position as the industry leader."
Summary --
Second Quarter and First Half Ended September 30, 2016 and
2017
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Six Months Ended
September30,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
184,140
|
|
234,572
|
|
35,257
|
|
357,092
|
|
458,794
|
|
68,958
|
Gross
Profit
|
|
145,052
|
|
188,928
|
|
28,397
|
|
280,571
|
|
368,368
|
|
55,366
|
Operating
Income3
|
|
54,744
|
|
76,328
|
|
11,472
|
|
106,879
|
|
159,289
|
|
23,942
|
Interest
Expense
|
|
(29,801)
|
|
-
|
|
-
|
|
(58,634)
|
|
(3,257)
|
|
(490)
|
Net Income
Attributable to
the Company's
Shareholders
|
|
16,641
|
|
67,595
|
|
10,160
|
|
32,363
|
|
136,730
|
|
20,551
|
Earnings per Share
-- Basic and Diluted4
(RMB/US$)
|
|
0.22
|
|
0.60
|
|
0.09
|
|
0.44
|
|
1.22
|
|
0.18
|
Revenues Breakdown
(%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing
Fees
|
|
62.5%
|
|
65.7%
|
|
|
|
62.2%
|
|
65.6%
|
|
|
Storage
Fees
|
|
37.5%
|
|
34.3%
|
|
|
|
37.8%
|
|
34.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Subscribers
(persons)
|
|
18,037
|
|
23,647
|
|
|
|
34,674
|
|
46,170
|
|
|
Total Accumulated
Subscribers (persons)
|
|
536,877
|
|
620,6801
|
|
|
|
536,877
|
|
620,6801
|
|
|
|
Summary --
Selected Cash Flow Statement Items
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Six Months Ended
September 30,
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
(in
thousands)
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by
operating
activities
|
|
136,277
|
|
215,293
|
|
32,359
|
|
267,291
|
|
441,710
|
|
66,390
|
Net cash used
in
investing
activities
|
|
(5,151)
|
|
(11,354)
|
|
(1,706)
|
|
(84,280)
|
|
(22,017)
|
|
(3,309)
|
Net cash used
in
financing
activities
|
|
(60,000)
|
|
-
|
|
-
|
|
(60,000)
|
|
-
|
|
-
|
Second Quarter of Fiscal 2018 Financial Results
REVENUES. Revenues increased by 27.4% to
RMB234.6 million ($35.3 million) in the second quarter of fiscal
2018 from RMB184.1 million in the
prior year period. The increase was mainly driven by the strong
growth in new subscribers and the Company's enlarged total
subscriber base.
Revenues generated from processing fees and other services in
the second quarter of fiscal 2018 increased by 33.9% to RMB154.1
million ($23.2 million) from
RMB115.1 million in the prior year period. 23,647
new subscriber sign-ups were recorded during the reporting quarter
compared to 18,037 new subscribers in the prior year period.
Revenues generated from processing fees accounted for 65.7% of
total revenues compared to 62.5% in the prior year period.
Revenues generated from storage fees increased by 16.7% to RMB80.5
million ($12.1 million) in the
second quarter of fiscal 2018 from RMB69.0
million in the prior year period. The accumulated subscriber
base as of September 30, 2017 was
620,6801. Storage fee revenues accounted for 34.3% of
total revenues compared to 37.5% in the prior year period.
GROSS PROFIT. Gross profit for the second quarter
of fiscal 2018 increased to RMB188.9
million ($28.4 million), a
30.2% increase from RMB145.1 million
in the prior year period. Benefiting from economies of scale, gross
margin was 80.5%, up from 78.8% in the prior year period.
OPERATING INCOME. Operating income increased by
39.4% to RMB76.3 million
($11.5 million). The increase in
sales and marketing expenses was reduced by slower growth in
general and administrative expenses
which resulted in operating margin expansion from 29.7% to 32.5%.
Depreciation and amortization expenses for the quarter amounted to
RMB12.4 million ($1.9 million), similar to the same period last
year. Share-based compensation expense for the second quarter
amounted to RMB20.1 million
($3.0 million) as compared to
RMB15.5 million in the prior year
period. Various sales and marketing expenses, excluding sales and
marketing related share-based compensation expense, experienced an
increase from the prior year period. As a result, operating income
before depreciation and amortization and share-based compensation
expense grew at a flatter pace of 31.2% to RMB108.7 million ($16.3
million).2
Research and Development Expenses. Research and
development expenses was RMB3.7
million ($0.6 million) in the
second quarter of fiscal 2018 compared to RMB2.4 million in the prior year period.
Sales and Marketing Expenses. Sales and marketing
expenses amounted to RMB56.2 million
($8.4 million), as compared to
RMB39.6 million in the prior year
period. During the quarter, the Company continued to motivate its
front line sales forces by stepping up performance incentives while
escalating marketing and promotion activities. As a result, staff
costs and promotion expenses continued to rise. However, sales and
marketing expenses as a percentage of revenues were kept in check
at 23.9%, which was similar to the fiscal year 2017 full-year
average.
General and Administrative Expenses. During the
reporting quarter, the Company continued to closely monitor its
general and administrative
expenses. As a result, general and administrative expenses as a
percentage of revenues declined from 26.2% during the same quarter last year to 22.5%
in the reporting quarter. In nominal value, general and
administrative expenses increased from RMB48.3 million in the same period last year to
RMB52.8 million ($7.9 million), and the increase was mainly driven
by an increase in share-based compensation expense.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S
SHAREHOLDERS. As a result of an increase in operating
income and the absence of interest expense, income before income
tax for the second quarter of fiscal 2018 increased significantly
to RMB83.2 million ($12.5 million) from RMB29.9 million in the prior year period. Income
tax expense for the second quarter was RMB14.5 million ($2.2
million) compared to RMB12.6
million in the prior year period. Net income attributable to
the Company's shareholders for the second quarter increased to
RMB67.6 million ($10.2 million) from RMB16.6 million in the prior year period. Net
margin for the second quarter of fiscal 2018 improved materially to
28.8% from 9.0% in the prior year period.
EARNINGS PER SHARE. Basic and diluted earnings per
ordinary share for the second quarter of fiscal 2018 improved to
RMB0.60 ($0.09)4 from RMB0.22 in the prior year period.
LIQUIDITY. As of September
30, 2017, the Company had cash and cash equivalents of
RMB3,927.3 million ($590.3 million) with aggregate current and
non-current deferred revenues amounting to RMB2,103.4 million ($316.1
million). Net cash provided by operating activities for the
second quarter of fiscal 2018 increased to RMB215.3 million ($32.4
million) from RMB136.3 million
in the prior year period, when an interest payment was made to the
Company's convertible note holder.
First Half of Fiscal 2018 Financial Results
For the first half of fiscal year 2018, total revenues increased
by 28.5% to RMB458.8 million
($69.0 million) from RMB357.1 million in the prior year period. The
increase was largely attributable to an increase in the Company's
processing fees revenues from new subscribers. Revenues from
processing fees and storage fees grew by 35.6% and 16.8%,
respectively. Gross profit increased by 31.3% to RMB368.4 million ($55.4
million) from RMB280.6 million
in the prior year period. Operating income increased significantly
by 49.0% to RMB159.3 million
($23.9 million) from RMB106.9 million in the prior year period.
Operating income before depreciation and amortization and
share-based compensation expenses totaled RMB201.0 million ($30.2
million), up 23.6% from RMB162.6
million in the prior year period.2 Net income attributable to the
Company's shareholders improved to RMB136.7
million ($20.6 million) from
RMB32.4 million in the prior year
period. Basic and diluted earnings per share attributable to
ordinary shares increased materially to RMB1.22 ($0.18)
from RMB0.44 in the prior year
period. Net cash provided by operating activities in the first half
of fiscal 2018 increased to RMB441.7
million ($66.4 million) from
RMB267.3 million in the prior year
period.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on Tuesday,
November 21, 2017 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.chinacordbloodcorp.com. A replay of the webcast will be
accessible two hours after the conference call and available for
three weeks at the same URL above. Listeners can also access the
call by dialing 1-720-452-9217 or 1-800-289-0438 for US callers, or
+852-3008-1527 for Hong Kong
callers, access code: 1974053.
1 During
the three months and six months ended September 30, 2017, 23,647
and 46,170 new subscribers were recruited, respectively. The
Company reclassified 142 and 530 private cord blood units as
donated cord blood units during the three months and six months
ended September 30, 2017 after the Company determined that the
recoverability of these prior private cord blood banking
subscribers was low. 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 620,680 as of
September 30, 2017.
|
|
2 See
exhibit 3 of this press release for a reconciliation of 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 The
reported operating income for the three months and six months ended
September 30, 2016 and 2017included the following:
|
(i)
|
Depreciation and
amortization expenses for the three months ended September 30, 2016
and 2017 were RMB12.6 million and RMB12.4 million ($1.9 million).
Depreciation and amortization expenses for the six months ended
September 30, 2016 and 2017 were RMB25.1 million and RMB25.1
million ($3.8 million); and
|
(ii)
|
As of September 30, 2017, a
total of 7,300,000 restricted share units ("RSUs") were issued and
outstanding under the Company's RSU scheme, subject to certain
performance conditions. Share-based compensation expenses related
to this RSU scheme were RMB15.5 million and RMB20.1 million ($3.0
million) for the three months ended September 30, 2016 and 2017.
Share-based compensation expenses related to this RSU scheme were
RMB30.6 million and RMB16.6 million ($2.5 million) for the six
months ended September 30, 2016 and 2017.
|
|
4 Out of 7,300,000 RSUs issued
and outstanding as of September 30, 2017, 7,080,000 ordinary shares
("Shares") were issued and deposited into a trust sponsored and
funded by the Company ("Trust"), and will be transferred to
respective executives, directors and key employees (or their
designated nominees) under the Company's RSU scheme when the
performance conditions are met. The Trust facilitates the granting
(and subsequent vesting) of incentive RSUs and holds such Shares
for the benefit of such executives, directors and key employees as
a class. Taking into account of such Shares, in addition to
113,524,742 outstanding shares (73,003,248 outstanding shares for
the three and six months ended September 30, 2016), basic and
diluted earnings per ordinary share would be RMB0.20 and
RMB0.56 ($0.08) for the three months ended
September 30, 2016 and 2017, basic and diluted earnings
per ordinary share would be RMB0.40 and RMB1.15 ($0.17)
for the six months ended September 30, 2016 and 2017,
respectively.
|
Use of Non-GAAP Financial Measures
GAAP results for the three months and six months ended
September 30, 2017 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 China Cord Blood Corporation
China 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. China 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.chinacordbloodcorp.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 (including the relaxation of China's one child policy) 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,
as well as general economic conditions; the proposed transactions
between an affiliate of Golden Meditech Holdings Limited and
Nanjing Ying Peng Hui Kang Medical Industry Investment Partnership
(limited partnership); 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 ending September 30, 2017
were made at the noon buying rate of RMB6.6533 to $1.00
on September 29, 2017 in the
City of New York for cable
transfers in Renminbi per U.S. dollar as certified for customs
purposes by the Federal Reserve Bank of New York. China Cord Blood Corporation makes
no representation that the Renminbi or U.S. dollar amounts referred
to in this press release could have been or could be converted into
U.S. dollars or Renminbi, at any particular rate or at
all.
For more information, please contact:
China Cord Blood Corporation
Investor
Relations Department
Tel: (+852)
3605-8180
Email:
ir@chinacordbloodcorp.com
ICR, Inc.
William
Zima
Tel: (+86)
10-6583-7511
U.S. Tel: (646)
405-5185
Email: William.zima@icrinc.com
EXHIBIT 1
CHINA CORD BLOOD
CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS As of March 31 and September 30, 2017
|
|
|
|
March
31,
|
|
September
30,
|
|
|
2017
|
|
2017
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
(in thousands except share
data)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
3,510,264
|
|
3,927,280
|
|
590,276
|
|
Accounts receivable,
less allowance for doubtful accounts
|
|
|
|
|
|
|
(March 31,
2017: RMB46,858; September 30, 2017:
|
|
|
|
|
|
|
RMB56,829
(US$8,541))
|
112,533
|
|
111,697
|
|
16,789
|
|
Inventories
|
30,987
|
|
38,756
|
|
5,825
|
|
Prepayments and other
receivables - Third parties
|
17,524
|
|
22,576
|
|
3,394
|
|
Prepayments and other
receivables - Related parties
|
-
|
|
2,284
|
|
343
|
|
Total current
assets
|
3,671,308
|
|
4,102,593
|
|
616,627
|
|
Property, plant and
equipment, net
|
551,434
|
|
541,612
|
|
81,405
|
|
Non-current deposits
- Third parties
|
237,487
|
|
236,903
|
|
35,607
|
|
Non-current deposits
- Related party
|
-
|
|
8,500
|
|
1,278
|
|
Non-current accounts
receivable, less allowance for doubtful
|
|
|
|
|
|
|
accounts
(March 31, 2017: RMB70,744; September 30,
|
|
|
|
|
|
|
2017:
RMB68,696 (US$10,325))
|
135,148
|
|
123,421
|
|
18,550
|
|
Inventories
|
68,775
|
|
69,843
|
|
10,497
|
|
Intangible assets,
net
|
106,686
|
|
104,376
|
|
15,688
|
|
Available-for-sale
equity securities
|
200,790
|
|
163,038
|
|
24,505
|
|
Other
investment
|
189,129
|
|
189,129
|
|
28,426
|
|
Deferred tax
assets
|
22,155
|
|
25,772
|
|
3,874
|
|
Total
assets
|
5,182,912
|
|
5,565,187
|
|
836,457
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Convertible note,
net
|
1,031,154
|
|
-
|
|
-
|
|
Accounts
payable
|
11,060
|
|
13,125
|
|
1,973
|
|
Accrued expenses and
other payables
|
65,162
|
|
92,238
|
|
13,864
|
|
Deferred
revenue
|
323,690
|
|
374,912
|
|
56,350
|
|
Amount due to a
related party
|
4,679
|
|
10,428
|
|
1,567
|
|
Income tax
payable
|
11,383
|
|
13,294
|
|
1,998
|
|
Total current
liabilities
|
1,447,128
|
|
503,997
|
|
75,752
|
|
Non-current deferred
revenue
|
1,569,579
|
|
1,728,471
|
|
259,792
|
|
Other non-current
liabilities
|
302,233
|
|
330,455
|
|
49,668
|
|
Deferred tax
liabilities
|
21,423
|
|
20,985
|
|
3,154
|
|
Total
liabilities
|
3,340,363
|
|
2,583,908
|
|
388,366
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Shareholders' equity of China
Cord Blood
|
|
|
|
|
|
|
Corporation
|
|
|
|
|
|
|
Ordinary
shares
|
|
|
|
|
|
|
-
US$0.0001 par value, 250,000,000 shares authorized,
|
|
|
|
|
|
|
73,140,147 shares
issued and 73,003,248 shares
|
|
|
|
|
|
|
outstanding as of March
31, 2017 and 113,661,641
|
|
|
|
|
|
|
shares issued and
113,524,742 shares outstanding
|
|
|
|
|
|
|
as of September 30,
2017
|
50
|
|
78
|
|
12
|
|
Additional paid-in
capital
|
936,417
|
|
1,987,057
|
|
298,657
|
|
Treasury stock, at
cost (March 31 and September 30,
|
|
|
|
|
|
|
2017: 136,899 shares,
respectively)
|
(2,815)
|
|
(2,815)
|
|
(423)
|
|
Accumulated other
comprehensive income/(loss)
|
24,428
|
|
(26,166)
|
|
(3,933)
|
|
Retained
earnings
|
879,775
|
|
1,016,505
|
|
152,783
|
|
Total equity
attributable to China Cord Blood
|
|
|
|
|
|
|
Corporation
|
1,837,855
|
|
2,974,659
|
|
447,096
|
|
Non-controlling
interests
|
4,694
|
|
6,620
|
|
995
|
|
Total
equity
|
1,842,549
|
|
2,981,279
|
|
448,091
|
|
Total liabilities
and equity
|
5,182,912
|
|
5,565,187
|
|
836,457
|
|
EXHIBIT 2
CHINA CORD BLOOD
CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME For the Three Months
and Six Months Ended September 30, 2016 and 2017
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Six months ended
September 30,
|
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
184,140
|
|
234,572
|
|
35,257
|
|
357,092
|
|
458,794
|
|
68,958
|
|
Direct costs
|
|
(39,088)
|
|
(45,644)
|
|
(6,860)
|
|
(76,521)
|
|
(90,426)
|
|
(13,592)
|
|
Gross
profit
|
|
145,052
|
|
188,928
|
|
28,397
|
|
280,571
|
|
368,368
|
|
55,366
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
(2,377)
|
|
(3,664)
|
|
(551)
|
|
(4,326)
|
|
(6,343)
|
|
(953)
|
|
Sales and
marketing
|
|
(39,642)
|
|
(56,152)
|
|
(8,440)
|
|
(77,834)
|
|
(99,602)
|
|
(14,970)
|
|
General and
administrative
|
|
(48,289)
|
|
(52,784)
|
|
(7,934)
|
|
(91,532)
|
|
(103,134)
|
|
(15,501)
|
|
Total operating
expenses
|
|
(90,308)
|
|
(112,600)
|
|
(16,925)
|
|
(173,692)
|
|
(209,079)
|
|
(31,424)
|
|
Operating
income
|
|
54,744
|
|
76,328
|
|
11,472
|
|
106,879
|
|
159,289
|
|
23,942
|
|
Other (expenses)/income,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
4,438
|
|
5,790
|
|
870
|
|
8,715
|
|
10,617
|
|
1,596
|
|
Interest
expense
|
|
(29,801)
|
|
-
|
|
-
|
|
(58,634)
|
|
(3,257)
|
|
(490)
|
|
Foreign currency
exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(losses)/gains
|
|
(15)
|
|
110
|
|
17
|
|
120
|
|
111
|
|
17
|
|
Others
|
|
576
|
|
993
|
|
149
|
|
728
|
|
2,142
|
|
322
|
|
Total other
(expenses)/income,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
|
|
(24,802)
|
|
6,893
|
|
1,036
|
|
(49,071)
|
|
9,613
|
|
1,445
|
|
Income before income
tax
|
|
29,942
|
|
83,221
|
|
12,508
|
|
57,808
|
|
168,902
|
|
25,387
|
|
Income tax
expense
|
|
(12,639)
|
|
(14,525)
|
|
(2,183)
|
|
(24,315)
|
|
(30,246)
|
|
(4,547)
|
|
Net
income
|
|
17,303
|
|
68,696
|
|
10,325
|
|
33,493
|
|
138,656
|
|
20,840
|
|
Net income attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(662)
|
|
(1,101)
|
|
(165)
|
|
(1,130)
|
|
(1,926)
|
|
(289)
|
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Cord Blood
Corporation's
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders
|
|
16,641
|
|
67,595
|
|
10,160
|
|
32,363
|
|
136,730
|
|
20,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
0.22
|
|
0.60
|
|
0.09
|
|
0.44
|
|
1.22
|
|
0.18
|
|
-
Diluted
|
|
0.22
|
|
0.60
|
|
0.09
|
|
0.44
|
|
1.22
|
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
losses,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of nil income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign
currency translation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments
|
|
(1,400)
|
|
(8,376)
|
|
(1,259)
|
|
(8,360)
|
|
(20,107)
|
|
(3,022)
|
|
- Unrealized holding
losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity securities
|
|
(10,507)
|
|
(18,562)
|
|
(2,790)
|
|
(16,977)
|
|
(30,487)
|
|
(4,582)
|
|
Total other
comprehensive losses
|
|
(11,907)
|
|
(26,938)
|
|
(4,049)
|
|
(25,337)
|
|
(50,594)
|
|
(7,604)
|
|
Comprehensive
income
|
|
5,396
|
|
41,758
|
|
6,276
|
|
8,156
|
|
88,062
|
|
13,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
(662)
|
|
(1,101)
|
|
(165)
|
|
(1,130)
|
|
(1,926)
|
|
(289)
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
China Cord Blood
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporation's
shareholders
|
|
4,734
|
|
40,657
|
|
6,111
|
|
7,026
|
|
86,136
|
|
12,947
|
|
EXHIBIT 3
CHINA CORD BLOOD
CORPORATION RECONCILIATION OF NON-GAAP OPERATING
INCOME For the Three Months and Six Months Ended September
30, 2016 and 2017
|
|
|
|
|
|
Three months
ended September
30,
|
|
|
Six months
ended September
30,
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in
thousands)
|
|
GAAP amount of
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
54,744
|
|
|
76,328
|
|
|
11,472
|
|
|
106,879
|
|
|
159,289
|
|
|
23,942
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization
expenses5
|
|
12,563
|
|
|
12,354
|
|
|
1,857
|
|
|
25,147
|
|
|
25,106
|
|
|
3,773
|
|
Share-based
compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense6
|
|
15,546
|
|
|
20,060
|
|
|
3,015
|
|
|
30,605
|
|
|
16,622
|
|
|
2,498
|
|
Non-GAAP
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
|
82,853
|
|
|
108,742
|
|
|
16,344
|
|
|
162,631
|
|
|
201,017
|
|
|
30,213
|
|
5
Depreciation and amortization expenses relate to property, plant
and equipment and intangible assets respectively.
|
6
Share-based compensation expense relates to the Company's RSU
scheme in which 7,300,000 RSUs were issued and outstanding as of
September 30, 2017.
|
View original
content:http://www.prnewswire.com/news-releases/china-cord-blood-corporation-reports-financial-results-for-the-second-quarter-and-first-half-of-fiscal-2018-300559242.html
SOURCE China Cord Blood Corporation