HONG KONG, Aug. 22, 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 unaudited financial results for the first quarter of fiscal 2017 ended June 30, 2016.
First Quarter of Fiscal 2017 Highlights
- Revenues for the first quarter of fiscal 2017 increased by 4.6% to RMB173.0 million ($26.0 million) from RMB165.4 million in the prior year period.
- New subscribers and accumulated subscriber base were 16,637 and 520,905, respectively.
Gross profit increased by 5.2% to RMB135.5 million ($20.4 million) from RMB128.8 million in the prior year period. - Gross margin increased to 78.4% from 77.9% in the prior year period.
- Operating income increased by 7.7% to RMB52.1 million ($7.8 million) from RMB48.4 million in the prior year period.
- Operating income before depreciation and amortization and share-based compensation expenses was RMB79.8 million ($12.0 million), up 6.6% compared to RMB74.8 million in the prior year period.1
- Interest expense was RMB28.8 million ($4.3 million) compared to RMB25.9 million in the prior year period.
- Net income attributable to the Company's shareholders increased by 16.0% to RMB15.7 million ($2.4 million) from RMB13.6 million in the prior year period.
- Net cash provided by operating activities for the first quarter of fiscal 2017 increased to RMB131.0 million ($19.7 million) from RMB130.1 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"). |
"Demand for our cord blood banking services showed healthy improvement as the number of newborns in China grew in the first quarter of fiscal 2017. We continued to optimize our marketing efforts and enhance our sales force, resulting in over sixteen thousand new subscribers during the reporting period, a reasonable increase over the prior year. Our accumulated subscriber base rose 13.9% to over 520,000 as of the end of June 2016, compared with that as of the end of June 2015," said Ms. Ting Zheng, Chief Executive Officer of China Cord Blood Corporation. "As we look at our opportunity in the near-term, we maintain a prudent outlook as China's overall economy continues to slow, which could impact consumer spending levels. Additionally, the National Health and Family Planning Commission recently rolled out a detailed policy to further regulate the clinical applications of various stem cells. These events may result in some near-term slowing of new client subscriptions, however we believe such regulation will benefit CCBC and the broader cord blood banking industry over the longer term.
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