HONG KONG, Aug. 19, 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 first quarter of fiscal 2016 ended June 30, 2015.
First Quarter of Fiscal 2016 Highlights
- Revenues for the first quarter of fiscal 2016 increased by 7.8% to RMB165.4 million ($26.7 million) from RMB153.3 million in the prior year period.
- New subscribers and accumulated subscriber base were 16,090 and 457,449, respectively.
- Gross profit increased by 4.2% to RMB128.8 million ($20.8 million) from RMB123.6 million in the prior year period, despite higher raw material costs.
- Gross margin was 77.9%, compared to 80.6% in the prior year period.
- Operating income amounted to RMB48.4 million ($7.8 million), compared to RMB60.2 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 RMB74.8 million ($12.1 million), up 4.6% compared to RMB71.6 million in the prior year period.1
- Interest expense was RMB25.9 million ($4.2 million) compared to RMB24.9 million in the prior year period.
- Net income attributable to the Company’s shareholders was RMB13.6 million ($2.2 million), compared to RMB29.7 million in the prior year period.
- Net cash provided by operating activities for the first quarter of fiscal 2016 was RMB130.1 million ($21.0 million).
1 See exhibit 3 of this press release for a reconciliation of operating income to exclude the non-cash items related to the depreciation and amortization and share-based compensation expenses to the comparable financial measure prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). |
“During the reporting quarter, the market continued to contract and remained challenging. The decline in births, however, did not prevent us from recruiting more than sixteen thousand new subscribers, representing a year-over-year increase of 3.5%, which is in line with management’s expectations.” said Ms. Ting Zheng, Chief Executive Officer of China Cord Blood Corporation, “We will continue to deepen our existing channels and launch value-added products, utilize O2O channels to increase our conversion ratio, and foster greater customer loyalty by creating parents-children communities. Meanwhile, we continue to build up our team and marketing network for the Zhejiang market. In face of the market contraction in the Chinese lunar “Year of the Sheep”, we are determined to achieve our subscriber target for fiscal 2016 by capitalizing on deepening of our existing sales channels and exploring new promotion platforms.”
Summary First Quarter Ended June 30, 2014 and 2015
Three Months Ended June 30 | |||||
2014 | 2015 | ||||
(in thousands) | RMB | RMB | US$ | ||
Revenues | 153,331 | 165,363 | 26,672 | ||
Gross Profit | 123,555 | 128,790 | 20,773 | ||
Operating Income | 60,167 | 48,427 | 7,812 | ||
Depreciation and | 11,407 | 12,328 | 1,988 | ||
Share-based Compensation Expense2 | - | 14,093 | 2,273 | ||
Interest Expense | 24,895 | 25,883 | 4,175 | ||
Net Income Attributable to the | 29,736 | 13,551 | 2,185 | ||
Earnings per Ordinary Share Basic3 and Diluted (RMB/US$) | 0.37 | 0.19 | 0.03 | ||
Revenue Breakdown (%) | |||||
Processing Fees | 69.2% | 64.8% | |||
Storage Fees | 30.8% | 35.2% | |||
New Subscribers (persons) | 15,548 | 16,090 | |||
Total Accumulated | 392,171 | 457,449 | |||
2 Share-based compensation expense relates to the Company’s restricted share unit scheme (“RSU Scheme”) in which 7,300,000 RSUs were granted to certain executives, directors and key employees during the three months ended December 31, 2014. Out of 7,300,000 RSUs granted, 7,080,000 ordinary shares (“Shares”) were then issued and deposited into a trust sponsored and funded by the Company (“Trust”). |
3 The terms of the convertible notes held by KKR China Healthcare Investment Limited (“KKR”), Cordlife Group Limited (“CGL”) and Magnum Opus International Holdings Limited (“Magnum”) provide each party with the ability to participate in any excess cash dividend. As there is no excess cash dividend for the three months ended June 30, 2015, such participating right effect is nil. |
Summary Selected Cash Flow Statement Items
Three Months Ended June 30 | ||||||
2014 | 2015 | |||||
(in thousands) | RMB | RMB | US$ | |||
Net cash provided by | 124,643 | 130,126 | 20,988 | |||
Net cash used in | (18,397) | (5,579) | (900) | |||
Net cash provided by | - | - | - | |||
First Quarter of Fiscal 2016 Financial Results
REVENUES. Revenues increased by 7.8% to RMB165.4 million ($26.7 million) in the first quarter of fiscal 2016 from RMB153.3 million in the prior year period.
To read full press release, please click here.
Help employers find you! Check out all the jobs and post your resume.
