omniture

China Cord Blood Corporation Reports Financial Results for the First Quarter of Fiscal 2017

1Q17 Added 16,637 New Subscribers
1Q17 Revenue Up 4.6% YOY to RMB173.0 Million ($26.0 Million)
1Q17 Operating Income Up 7.7% YOY to RMB52.1 Million ($7.8 Million)
Conference Call to be Held on August 23, 2016 at 8:00 a.m. ET
2016-08-23 04:16 2900





HONG KONG, Aug. 23, 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. Looking ahead to the second quarter, we are committed to meeting such challenges by raising awareness and emphasizing the clinical benefits of our services. We will strive to achieve our full year subscription target goal through careful planning and prudent execution."

Summary – First Quarter Ended June 30, 2015 and 2016



Three Months Ended June 30,



2015



2016

(in thousands)


RMB



RMB



US$

Revenues



165,363




172,952




26,024

Gross Profit



128,790




135,519




20,392

Operating Income2



48,427




52,135




7,845

Interest Expense



25,883




28,833




4,338

Net Income Attributable to the
  Company's Shareholders



13,551




15,722




2,367

Earnings per Ordinary Share
 – Basic3 and Diluted          

      (RMB/US$)



0.19




0.22




0.03













Revenue Breakdown (%)












Processing Fees



64.8%




61.8%





Storage Fees



35.2%




38.2%

















New Subscribers (persons)



16,090




16,637





Total Accumulated
  Subscribers (persons)



457,449




520,905






2 The reported operating income for the three months ended June 30, 2015 and 2016 included the followings:

(i)   Depreciation and amortization expenses of RMB12.3 million and RMB12.6 million ($1.9 million) for the three months ended June 30, 2015 and 2016, respectively; and

(ii)  Share-based compensation expense of RMB14.1 million and RMB15.1 million ($2.3 million) for the three months ended June 30, 2015 and 2016, respectively, relating 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.


3 The terms of the convertible notes provide the holder 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 and 2016, such participating right effect is nil. 

Summary – Selected Cash Flow Statement Items



Three Months Ended June 30,



2015



2016

(in thousands)


RMB



RMB



US$

Net cash provided by operating activities



130,126




131,014




19,714

Net cash used in investing activities



(5,579)




(79,129)




(11,907)

Net cash provided by financing activities



-




-




-

First Quarter of Fiscal 2017 Financial Results

REVENUES. Revenues increased by 4.6% to RMB173.0 million ($26.0 million) in the first quarter of fiscal 2017 from RMB165.4 million in the prior year period. The key driver of this increase was the solid increase in storage fee revenues.

Revenues generated from storage fees increased by 13.6% to RMB66.1 million ($9.9 million) in the first quarter of fiscal 2017 from RMB58.3 million in the prior year period. The increase was due to the expansion of the accumulated subscriber base. The subscriber base grew to 520,905 by the end of June 2016. Storage fee revenues accounted for 38.2% of total revenues, compared to 35.2% in the prior year period.

Revenues generated from processing fees and other services in the first quarter of fiscal 2017 were RMB106.9 million ($16.1 million), compared to RMB107.1 million in the prior year period. Revenues generated from processing fees accounted for 61.8% of total revenues, compared to 64.8% in the prior year period.

GROSS PROFIT. Gross profit for the first quarter of fiscal 2017 amounted to RMB135.5 million ($20.4 million), a 5.2% increase from RMB128.8 million in the prior year period. Gross margin was 78.4%, up from 77.9% in the prior year period.

OPERATING INCOME. Operating income for the first quarter of fiscal 2017 increased by 7.7% to RMB52.1 million ($7.8 million) from RMB48.4 million in the prior year period. Accordingly, operating margin increased to 30.1%, compared to 29.3% in the prior year period. Depreciation and amortization expenses for the reporting quarter were RMB12.6 million ($1.9 million), compared to RMB12.3 million in the prior year period. Share-based compensation expense totaled RMB15.1 million ($2.3 million) for the first quarter of fiscal 2017, compared to RMB14.1 million in the prior year period. Operating income before depreciation and amortization and share-based compensation expenses totaled RMB79.8 million ($12.0 million), a 6.6% increase compared to RMB74.8 million in the prior year period.4

Research and Development Expenses. Research and development expenses remained stable at RMB1.9 million ($0.3 million) in the first quarter of fiscal 2017.

Sales and Marketing Expenses. Sales and marketing expenses for the first quarter amounted to RMB38.2 million ($5.7 million), compared to RMB37.2 million in the prior year period. The increase was mainly due to further marketing efforts and sales force refinement. As a percentage of revenues, sales and marketing expenses were 22.1% compared to 22.5% in the prior year period.

General and Administrative Expenses. General and administrative expenses for the first quarter increased slightly to RMB43.2 million ($6.5 million) from RMB41.2 million in the prior year period. General and administrative expenses as the percentage of revenues remained stable at 25.0%, compared to 24.9% in the prior year period.

4 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. GAAP.

OTHER INCOME AND EXPENSES.

Interest Expense. Interest expense was RMB28.8 million ($4.3 million), compared to RMB25.9 million in the prior year period. Interest expense was mainly related to the Company's outstanding convertible notes denominated in USD. The increase was due to the compounding interest effect of the convertible notes and the effect of the depreciation of RMB against the USD.

NET INCOME ATTRIBUTABLE TO THE COMPANY'S SHAREHOLDERS. Income before income tax for the first quarter of fiscal 2017 was RMB27.9 million ($4.2 million), compared to RMB28.5 million in the prior year period. As Zhejiang Cord Blood Bank was qualified as a High and New Technology Enterprise in January 2016 which entitled it to the preferential income tax rate of 15%, income tax expense for the first quarter of fiscal 2017 decreased to RMB11.7 million ($1.8 million) from RMB15.0 million in the prior year period. Net income attributable to the Company's shareholders for the first quarter of fiscal 2017 increased to RMB15.7 million ($2.4 million), up 16.0% from RMB13.6 million in the prior year period. Accordingly, net margin for the first quarter of fiscal 2017 increased to 9.1% from 8.2% in the prior year period.

EARNINGS PER SHARE. Basic and diluted earnings per ordinary share for the first quarter of fiscal 2017 were RMB0.22 ($0.03).5

5 During the quarter ended December 31, 2014, the Company granted a total of 7,300,000 RSUs to certain executives, directors and key employees under the Company's RSU Scheme, subject to certain performance conditions. 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"), 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 73,003,248 outstanding shares, basic and diluted earnings per ordinary share would be RMB0.17 and RMB0.20 ($0.03) for the three months ended June 30, 2015 and 2016, respectively.

LIQUIDITY. As of June 30, 2016, the Company had cash and cash equivalents of RMB3,070.4 million ($462.0 million), up from RMB3,008.4 million as of March 31, 2016. The Company had total debt6 of RMB1,008.2 million ($151.7 million) as of June 30, 2016, up slightly from RMB966.2 million as of March 31, 2016. Net cash provided by operating activities for the first quarter of fiscal 2017 amounted to RMB131.0 million ($19.7 million).

6 Total debt represented the carrying amounts of bank loan and convertible notes, net.

Recent Developments

  • On April 27, 2015, the Company announced that its board of directors (the "Board") had received a non-binding proposal letter from Golden Meditech Holdings Limited ("Golden Meditech"), pursuant to which Golden Meditech proposed to acquire all of the outstanding ordinary shares of the Company not already directly or indirectly owned by Golden Meditech for $6.40 per ordinary share in cash in a "going-private" transaction (the "GM Proposal"). On the same day, the Board had formed a special committee of independent directors, consisting of Mr. Mark Chen, Ms. Jennifer Weng and Dr. Ken Lu, who are not affiliated with Golden Meditech to evaluate such proposal and certain other potential transactions involving the Company. The special committee subsequently appointed Houlihan Lokey (China) Limited as its independent financial advisor, Cleary Gottlieb Steen & Hamilton LLP as its United States legal counsel and Maples & Calder as its Cayman Islands legal counsel to assist in evaluating GM Proposal and the Company's other alternatives but has not set a definitive timetable to complete its evaluation of the GM Proposal or any other alternative.
  • In May 2015, Golden Meditech initiated a series of agreements and transactions to acquire, directly or indirectly, $115 million in aggregate principal amount of the Company's outstanding 7% senior convertible notes due 2017 ("Convertible Notes") and 7,314,015 ordinary shares of the Company (the "CGL Sale Shares").
  • On August 6, 2015, the Company announced that the Board had received a non-binding acquisition proposal letter from Nanjing Xinjiekou Department Store Co., Ltd. ("Nanjing Xinjiekou"), pursuant to which Nanjing Xinjiekou offered to acquire all of the Company's China business, including all of the Company's equity interests in its China subsidiaries and its assets and resources relating to its business in China (the "Nanjing Xinjiekou Proposal"). The purchase price offered is not lower than RMB6.0 billion.
  • On November 5, 2015, the Company was informed that Golden Meditech and Nanjing Xinjiekou entered into a non-binding framework purchase agreement (the "MOU"), pursuant to which Nanjing Xinjiekou proposed to acquire from Golden Meditech approximately 65.1% of the Company's issued share capital on a fully diluted basis and to provide assistance, including possible financing, to Golden Meditech in its proposed "going private" transaction involving the Company. Concurrently, Nanjing Xinjiekou also indicated its intention to acquire the remaining 34.9% of the Company's ordinary shares owned by other shareholders of the Company.
  • On November 30, 2015, Golden Meditech entered into agreement with Mr. Yuen Kam, the Company's chairman, to acquire 357,331 ordinary shares of the Company (the "Kam Sale Shares").
  • On January 4, 2016, Golden Meditech, through its wholly owned subsidiary, Golden Meditech Stem Cells (BVI) Company Limited ("GM Stem Cells"), completed the acquisitions of the Convertible Notes, the CGL Sale Shares and the Kam Sale Shares, using the net proceeds from open offer and issuance of promissory notes. GM Stem Cells became the owner of the Convertible Notes, the CGL Sale Shares and the Kam Sale Shares.
  • On January 7, 2016, the Company was informed that GM Stem Cells entered into a conditional sale and purchase agreement with Nanjing Xinjiekou on January 6, 2016 regarding the disposal of its shares and Convertible Notes, representing an aggregate 65.4% equity interest of the Company on a fully diluted basis, for a total consideration of approximately RMB5.764 billion.

The total consideration consists of a cash payment of approximately $504.8 million (approximately RMB3.264 billion) and the issuance of RMB2.5 billion new shares by Nanjing Xinjiekou at the initial issue price of RMB18.61 per share (the "NXD New Shares"). Pursuant to the conditional sale and purchase agreement, Nanjing Xinjiekou requires the existing Company management team to stay on until December 31, 2018 and GM Stem Cells has agreed to a three-year performance guarantee and to have the NXD New Shares subject to a three-year lock-up period.

GM Stem Cells also entered into another conditional sale and purchase agreement with Nanjing Xinjiekou, pursuant to which GM Stem Cells agrees to sell the remaining 34.6% equity interest (on a fully diluted basis) of the Company to Nanjing Xinjiekou for a total cash consideration of approximately $267 million (approximately RMB1.73 billion), if the privatization of the Company is completed. The completion of both sale and purchase agreements are conditional upon the satisfaction of effectiveness conditions and the satisfaction (or waiving, if applicable) of all the conditions precedent to completion, including but not limited to obtaining all relevant regulatory approvals and shareholders' approvals, and the completion of the two sales and purchase agreements are not interconditional.

  • The Company cautions its shareholders and others considering trading its securities that no decisions have been made with respect to the Company's response to GM Proposal and Nanjing Xinjiekou Proposal, and there cannot be any assurance that any transactions will be completed with respect to the proposals made by Golden Meditech and Nanjing Xinjiekou and the proposed transactions between GM Stem Cells and Nanjing Xinjiekou, or that this or any other transaction will be approved or consummated.

Conference Call

The Company will host a conference call at 8:00 a.m. ET on Tuesday, August 23, 2016 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 1-631-514-2526 or 1-855-298-3404 for US callers, or +852-5808-3202 for Hong Kong callers, access code: 9195976.

Use of Non-GAAP Financial Measures

GAAP results for the three months ended June 30, 2016 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 recent 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 implementing 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; compliance with restrictive debt covenants under our senior convertible notes; the non-binding proposal letters from Golden Meditech and Nanjing Xinjiekou; 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 June 30, 2016 were made at the noon buying rate of RMB6.6459 to $1.00 on June 30, 2016 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


CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and June 30, 2016








March 31,


June 30,


2016


2016


RMB


RMB


US$


(in thousands except share data)

ASSETS






Current assets






Cash and cash equivalents

3,008,422


3,070,419


462,002

Accounts receivable, less allowance for doubtful






  accounts (March 31, 2016: RMB38,261;            

  June 30, 2016: RMB39,898 (US$6,003))

124,645


120,720


18,165

Inventories

28,326


26,185


3,940

Prepaid expenses and other receivables

24,412


15,662


2,356

Deferred tax assets

14,056


14,793


2,226

Total current assets

3,199,861


3,247,779


488,689

Property, plant and equipment, net

574,567


569,128


85,636

Non-current prepayments

218,379


232,755


35,022

Non-current accounts receivable, less allowance






  for doubtful accounts (March 31, 2016: RMB62,633;

  June 30, 2016: RMB63,856  (US$9,608))

165,011


162,378


24,433

Inventories

64,322


66,541


10,012

Intangible assets, net

111,307


110,152


16,574

Available-for-sale equity securities

162,734


227,783


34,274

Other investment

189,129


189,129


28,458

Deferred tax assets

2,617


2,398


361

Total assets

4,687,927


4,808,043


723,459







LIABILITIES






Current liabilities






Bank loan

60,000


60,000


9,028

Accounts payable

13,248


13,345


2,008

Accrued expenses and other payables

61,304


65,335


9,831

Deferred revenue

257,692


273,148


41,100

Amounts due to related parties

53,255


28,080


4,225

Income tax payable

8,524


9,842


1,481

Deferred tax liabilities

14,300


15,600


2,347

Total current liabilities

468,323


465,350


70,020

Convertible notes, net

906,222


948,208


142,676

Non-current deferred revenue

1,321,239


1,373,876


206,725

Other non-current liabilities

255,932


266,443


40,091

Deferred tax liabilities

22,786


22,689


3,414

Total liabilities

2,974,502


3,076,566


462,926







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

and June 30, 2016, respectively

50


50


8

Additional paid-in capital

873,654


888,975


133,763

Treasury stock, at cost (March 31 and

June 30, 2016: 136,899 shares, respectively)

(2,815)


(2,815)


(424)

Accumulated other comprehensive income

84,779


71,349


10,735

Retained earnings

753,585


769,307


115,757

Total equity attributable to China Cord Blood
Corporation

1,709,253


1,726,866


259,839

Non-controlling interests

4,172


4,611


694

Total equity

1,713,425


1,731,477


260,533

Total liabilities and equity

4,687,927


4,808,043


723,459







 


EXHIBIT 2




























CHINA CORD BLOOD CORPORATION


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


For the Three Months ended June 30, 2015 and 2016










Three months ended June 30,




2015


2016




RMB


RMB


US$




                    (in thousands except per share data)










Revenues


165,363


172,952


26,024


Direct costs


(36,573)


(37,433)


(5,632)


Gross profit


128,790


135,519


20,392


Operating expenses








Research and development


(1,934)


(1,949)


(293)


Sales and marketing


(37,209)


(38,192)


(5,747)


General and administrative


(41,220)


(43,243)


(6,507)


Total operating expenses


(80,363)


(83,384)


(12,547)


Operating income


48,427


52,135


7,845


Other expense, net








Interest income


4,710


4,277


644


Interest expense


(25,883)


(28,833)


(4,338)


Foreign currency exchange (losses)/gains


(41)


135


20


Dividend income


1,180


-


-


Others


89


152


23


Total other expense, net


(19,945)


(24,269)


(3,651)


Income before income tax 


28,482


27,866


4,194


Income tax expense


(14,989)


(11,676)


(1,757)


Net income


13,493


16,190


2,437


Net loss/(income) attributable to 








  non-controlling interests


58


(468)


(70)


Net income attributable to 








  China Cord Blood Corporation's








  shareholders


13,551


15,722


2,367










Earnings per share:








Attributable to ordinary shares








-   Basic


0.19


0.22


0.03


-   Diluted


0.19


0.22


0.03


















Other comprehensive








   income/(loss),






   net of nil income taxes






-  Foreign currency translation adjustments


559


(6,960)


(1,047)


-  Unrealized holding gain/(loss) in 
        available-for-sale equity securities


10,860


 

(6,470)


 

(974)


   Total other comprehensive 
      income/(loss)


11,419


(13,430)


(2,021)


Comprehensive income


24,912


2,760


416










  Comprehensive loss/(income)

   attributable to non-controlling interests


58


(468)


(70)


Comprehensive income
  attributable to China Cord Blood 
  Corporation's shareholders


24,970


2,292


346
















 

 

EXHIBIT 3

CHINA CORD BLOOD CORPORATION

RECONCILIATION OF NON-GAAP OPERATING INCOME

For the Three Months ended June 30, 2015 and 2016






Three months ended June 30,



2015


2016



RMB


RMB


US$



                                        (in thousands)


















GAAP amount of operating income



48,427



52,135



7,845











Depreciation and amortization expenses7



12,328



12,584



1,894











Share-based compensation expense8



14,093



15,059



2,266











Non-GAAP operating income



74,848



79,778



12,005











7 Depreciation and amortization expenses relate to property, plant and equipment and intangible assets respectively.


8 Share-based compensation expense relates to the Company's 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.

 

 




Source: China Cord Blood Corporation
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