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China Cord Blood Corporation Reports Financial Results For The Second Quarter And First Half Of Fiscal 2016

Published: Nov 24, 2015

HONG KONG, Nov. 23, 2015 /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 preliminary unaudited financial results for the second quarter and first half of fiscal year 2016 ended September 30, 2015.

Second Quarter of Fiscal 2016 Highlights

  • Revenues for the second quarter of fiscal 2016 increased by 12.7% to RMB171.5 million ($27.0 million) from RMB152.1 million in the prior year period.
  • New subscribers and accumulated subscriber base were 16,744 and 474,193, respectively.
  • Gross profit increased by 10.2% to RMB134.2 million ($21.1 million) from RMB121.8 million in the prior year period, despite higher raw material costs.
  • Gross margin was 78.3%, compared to 80.1% in the prior year period.
  • Operating income amounted to RMB52.5 million ($8.3 million), compared to RMB57.5 million in the prior year period, mainly due to the recognition of share-based compensation expense related to the restricted share units ("RSUs") granted in the quarter ended December 31, 2014.
  • Operating income before depreciation and amortization and share-based compensation expenses was RMB79.7 million ($12.5 million), up 12.6% compared to RMB70.8 million in the prior year period.1
  • Interest expense was RMB26.3 million ($4.1 million) compared to RMB25.2 million in the prior year period.
  • Dividend income was RMB10.0 million ($1.6 million) whereas no such income was received in the prior year period.
  • Impairment loss on available-for-sale equity securities was RMB8.4 million ($1.3 million) whereas there was no such impairment loss in the prior year period.
  • Net income attributable to the Company's shareholders was RMB18.7 million ($2.9 million), compared to RMB27.2 million in the prior year period.
  • Net cash provided by operating activities for the second quarter of fiscal 2016 was RMB168.5 million ($26.5 million).

First Half of Fiscal 2016 Highlights

  • Revenues for the first half of fiscal 2016 increased by 10.3% to RMB336.8 million ($53.0 million) from RMB305.5 million in the prior year period.
  • New subscriber sign-up reached 32,834 and accumulated subscriber base expanded to 474,193.
  • Gross profit increased by 7.2% to RMB263.0 million ($41.4 million) compared to RMB245.3 million in the prior year period.
  • Operating income recorded RMB100.9 million ($15.9 million) compared to RMB117.6 million in the prior year period.
  • Operating income before depreciation and amortization and share-based compensation expenses amounted to RMB154.5 million ($24.3 million), up 8.6% year-over-year from RMB142.3 million in the prior year period.1
  • Interest expense amounted to RMB52.2 million ($8.2 million), compared to RMB50.1 million in the prior year period.
  • Dividend income was RMB11.2 million ($1.8 million) compared to RMB1.2 million in the prior year period.
  • Impairment loss on available-for-sale equity securities of RMB8.4 million ($1.3 million) whereas there was no such loss in the prior year period.
  • Net income attributable to the Company's shareholders amounted to RMB32.3 million ($5.1 million), compared to RMB57.0 million in the prior year period.
  • Net cash provided by operating activities for the first half of fiscal 2016 increased to RMB298.6 million ($47.0 million) from RMB295.7 million in the prior year period.

1

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").

"During this quarter, despite the challenge we continue to face in the 'year of the sheep' which caused the number of new born within our operational region to contract, the Group managed to recruit 16,744 new subscribers, representing a year-over-year increase of 7.4% and a quarter-over-quarter increase of 4.1%. By end of September 2015, the Group has recruited over 470,000 accumulative subscribers, which further consolidates our client base and market leadership."

To read full press release, please click here.

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