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China Cord Blood Corporation Reports Financial Results For The Third Quarter And First Nine Months Of Fiscal 2016

Published: Mar 01, 2016

HONG KONG, Feb. 29, 2016 /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 third quarter and first nine months of fiscal year 2016 ended December 31, 2015.

Third quarter of Fiscal 2016 Highlights

  • Revenues for the third quarter of fiscal 2016 increased by 1.6% to RMB169.4 million ($26.1 million) from RMB166.7 million in the prior year period.
  • New subscribers and accumulated subscriber base were 15,603 and 489,796, respectively. The new subscriber number decreased by 11.5% year-over-year.
  • Gross profit increased by 2.0% to RMB133.2 million ($20.6 million) from RMB130.6 million in the prior year period.
  • Gross margin stood at 78.6%, compared to 78.4% in the prior year period.
  • Operating income amounted to RMB50.8 million ($7.8 million), compared to RMB67.8 million in the prior year period. The difference was mainly attributable 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 RMB78.5 million ($12.1 million), down slightly from RMB83.2 million in the prior year period.1
  • Interest expense was RMB27.8 million ($4.3 million) compared to RMB25.8 million in the prior year period.
  • Dividend income was RMB38.0 million ($5.9 million) compared to RMB1.1 million in the prior year period, as the Company received dividend payments from equity investments in Shandong Cord Blood Bank and Cordlife Group Limited, respectively. As a result, net income attributable to the Company's shareholders was RMB50.5 million ($7.8 million), an increase of 51.1% compared to RMB33.4 million in the prior year period.
  • Net cash provided by operating activities for the third quarter of fiscal 2016 was RMB143.5 million ($22.2 million).

First Nine Months of Fiscal 2016 Highlights

  • Revenues for the first nine months of fiscal 2016 increased by 7.2% to RMB506.2 million ($78.1 million) from RMB472.1 million in the prior year period.
  • New subscriber sign-ups reached 48,437 and accumulated subscriber base expanded to 489,796.
  • Gross profit increased by 5.4% to RMB396.2 million ($61.2 million) compared to RMB376.0 million in the prior year period.
  • Operating income recorded RMB151.7 million ($23.4 million) compared to RMB185.5 million in the prior year period.
  • Operating income before depreciation and amortization and share-based compensation expenses amounted to RMB233.1 million ($36.0 million), up 3.3% from RMB225.6 million in the prior year period.1
  • Interest expense amounted to RMB80.0 million ($12.3 million), compared to RMB75.9 million in the prior year period.
  • Dividend income was RMB49.2 million ($7.6 million) compared to RMB2.3 million 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 loss in the prior year period.
  • Net income attributable to the Company's shareholders amounted to RMB82.7 million ($12.8 million), compared to RMB90.4 million in the prior year period.
  • Net cash provided by operating activities for the first nine months of fiscal 2016 amounted to RMB442.1 million ($68.3 million) compared to RMB448.4 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").

"In the third quarter of fiscal 2016, we continued to face the challenges from the Chinese Lunar "Year of Sheep" and overall weak economic sentiment. Under such conditions, the Group recorded 15,603 new subscribers in the reporting period, representing a year-over-year decrease of 11.5% and a quarter-over-quarter decrease of 6.8%," commented Ms. Ting Zheng, Chief Executive Officer of CCBC, "However, we continued to experience strong momentum in our regional markets.

To read full press release, please click here.

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