HONG KONG, March 1, 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
First Nine Months of Fiscal 2016 Highlights
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. Our Guangdong market reported another quarter of solid results, and our Zhejiang market continued to improve steadily, which helped offset some of the market pressure in the fiscal third quarter. We were further encouraged by the established operation and the accreditation from American Association of Blood Banks. Based on the Group's performance in the first nine months of fiscal 2016 and our market visibility in the coming quarters, the management team remains cautious but we will continue to act proactively and strive to meet our new subscribers target this fiscal year."
Summary - Third quarter and First Nine Months Ended December 31, 2014 and 2015
Three Months Ended December 31, |
Nine Months Ended December 31, |
||||||||||||||||||||||||
2014 |
2015 |
2014 |
2015 |
||||||||||||||||||||||
(in thousands) |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||||||||
Revenues |
166,675 |
169,374 |
26,147 |
472,128 |
506,221 |
78,147 |
|||||||||||||||||||
Gross Profit |
130,628 |
133,183 |
20,560 |
375,957 |
396,217 |
61,165 |
|||||||||||||||||||
Operating Income2 |
67,843 |
50,754 |
7,835 |
185,473 |
151,659 |
23,412 |
|||||||||||||||||||
Interest Expense |
25,760 |
27,792 |
4,290 |
75,864 |
79,976 |
12,346 |
|||||||||||||||||||
Net Income Attributable to |
33,384 |
50,452 |
7,789 |
90,369 |
82,726 |
12,770 |
|||||||||||||||||||
Earnings per Ordinary Share |
0.41 |
0.63 |
0.10 |
1.13 |
1.07 |
0.17 |
|||||||||||||||||||
Revenue Breakdown (%) |
|||||||||||||||||||||||||
Processing Fees |
68.8% |
63.9% |
68.5% |
64.5% |
|||||||||||||||||||||
Storage Fees |
31.2% |
36.1% |
31.5% |
35.5% |
|||||||||||||||||||||
New Subscribers (persons) |
17,622 |
15,603 |
48,754 |
48,437 |
|||||||||||||||||||||
Total Accumulated |
425,377 |
489,796 |
425,377 |
489,796 |
|||||||||||||||||||||
2 The reported operating income for the three months and nine months ended December 31, 2015 included the followings: |
|||||||||||||||||||||||||
(i) Depreciation and amortization expenses of RMB12.9 million ($2.0 million) and RMB37.8 million ($5.8 million) for the three months and nine months |
|||||||||||||||||||||||||
(ii) Share-based compensation expense of RMB14.9 million ($2.3 million) and RMB43.6 million ($6.7 million) for the three months and nine months ended |
|||||||||||||||||||||||||
3 The terms of the outstanding convertible notes provide each holder with the ability to participate in any excess cash dividend. Therefore, the calculation of basic EPS has taken into consideration the effect of such participating rights of RMB0.06 ($0.01) per share for the three months and nine months ended December 31, 2015, respectively. |
Summary - Selected Cash Flow Statement Items
Three Months Ended December 31, |
Nine Months Ended December 31, |
|||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||
(in thousands) |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||
Net cash provided by operating activities |
152,732 |
143,491 |
22,150 |
448,423 |
442,123 |
68,253 |
||||||
Net cash used in investing activities |
(15,242) |
(5,803) |
(896) |
(37,637) |
(15,333) |
(2,367) |
||||||
Net cash provided by financing activities |
- |
60,000 |
9,262 |
- |
- |
- |
Third quarter of Fiscal 2016 Financial Results
REVENUES. Revenues increased by 1.6% to RMB169.4 million ($26.1 million) in the third quarter of fiscal 2016 from RMB166.7 million in the prior year period, due to the increase in storage revenues from the Company's expanded subscriber base.
As the Company's accumulated subscriber base reached 489,796 by the end of December 2015, revenues generated from storage fees increased to RMB61.2 million ($9.4 million), up 17.5% from RMB52.1 million in the prior year period. Storage fees accounted for 36.1% of the total revenues, compared to 31.2% in the prior year period.
Revenues generated from processing fees in the third quarter were RMB108.2 million ($16.7 million), compared with RMB114.6 million in the prior year period as a result of the decrease in new subscriber sign-ups. 15,603 new subscribers were signed up during the third quarter of fiscal 2016, compared to 17,622 in the prior year period. Revenues generated from processing fees accounted for 63.9% of total revenues, compared to 68.8% in the prior year period.
GROSS PROFIT. Gross profit for the third quarter of fiscal 2016 increased by 2.0% to RMB133.2 million ($20.6 million) from RMB130.6 million in the prior year period. The increase was mainly attributed to the increased revenues and the relatively modest increase in direct costs. The Company continued to report a solid gross margin of 78.6%, compared to 78.4% in the prior year period.
OPERATING INCOME. Operating income for the third quarter was RMB50.8 million ($7.8 million) compared to RMB67.8 million in the prior year period. The difference was mainly due to the recognition of share-based compensation expense in the third quarter of fiscal 2015. Operating margin in the current quarter was 30.0%, compared to 40.7% in the prior year period. Depreciation and amortization expenses for the third quarter were RMB12.9 million ($2.0 million), similar to the prior year period. Share-based compensation expense was RMB14.9 million ($2.3 million), compared to RMB2.5 million in the prior year period. Operating income before depreciation and amortization and share-based compensation expenses totaled RMB78.5 million ($12.1 million), compared to RMB83.2 million in the prior year period.4
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. |
Research and Development Expenses. Research and development expenses amounted to RMB2.6 million ($0.4 million) compared to RMB2.4 million in the prior year period.
Sales and Marketing Expenses. Sales and marketing expenses for the third quarter amounted to RMB36.8 million ($5.7 million), compared to RMB30.3 million in the prior year period. The increase was mainly a result of increased marketing adopted to combat against market contraction and the recognition of share-based compensation expenses in the third quarter of fiscal 2016. As a percentage of revenues, sales and marketing expenses were 21.7%, compared to 18.2% in the prior year period.
General and Administrative Expenses. General and administrative expenses for the third quarter were RMB43.1 million ($6.6 million), compared to RMB30.1 million in the prior year period. The increase was mainly driven by the recognition of share-based compensation expense in the third quarter of fiscal 2016. As a percentage of revenue, general and administrative expenses were 25.4%, up from 18.1% in the prior year period.
OTHER INCOME AND EXPENSES.
Interest Expense. Interest expense is mainly related to the Company's outstanding convertible notes. In the current quarter, the Company incurred interest expense of RMB27.8 million ($4.3 million) compared to RMB25.8 million in the prior year period.
Dividend Income. During the third quarter, the Company received RMB38.0 million ($5.9 million) dividend income from the Company's equity investments in Shandong Cord Blood Bank and Cordlife Group Limited, compared to a RMB1.1 million dividend income in the prior year period.
NET INCOME ATTRIBUTABLE TO THE COMPANY'S SHAREHOLDERS. Income before income tax for the third quarter increased by 36.9% year-over-year to RMB64.5 million ($10.0 million) from RMB47.1 million in the prior year period. The increase was mainly due to the increase in dividend income, partially offset by the decrease in operating income. Net income attributable to the Company's shareholders for the third quarter of fiscal 2016 amounted to RMB50.5 million ($7.8 million), up 51.1% from RMB33.4 million in the prior year period. Net margin for the third quarter of fiscal 2016 was 29.8%, improved by nearly 10% from 20.0% in the prior year period.
EARNINGS PER SHARE. The terms of the outstanding convertible notes provide each holder with the ability to participate in any Excess Cash Dividend5. Therefore, the calculation of basic and diluted EPS has taken into consideration the effect of such participating rights, which was RMB0.06 ($0.01) per share. Basic and diluted earnings per ordinary share for the third quarter of fiscal 2016 were RMB0.63 ($0.10).6
5 "Excess Cash Dividend" means any cash dividend to holders of shares that, together with all other cash dividends previously paid to holders of shares in the same financial year, exceeds, on a per share basis, an amount equal to the interest that has accrued and shall accrue at 7% in such financial year divided by the number of shares into which the note is convertible at the conversion price then in effect on the relevant record date. |
6 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 Shares were then issued and deposited into a 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. Under the non-GAAP measure to take into account of such Shares, in addition to 73,003,248 outstanding shares, basic and diluted earnings per ordinary share were RMB0.60 ($0.09) and RMB1.00 ($0.15) for the three months and nine months ended December 31, 2015. |
LIQUIDITY. As of December 31, 2015, the Company had cash and cash equivalents of RMB2,873.7 million ($443.6 million), compared to RMB2,436.7 million as of March 31, 2015. The Company had total debt of RMB964.0 million ($148.8 million) as of December 31, 2015. Net cash provided by operating activities for the third quarter of fiscal 2016 amounted to RMB143.5 million ($22.2 million).
First Nine Months of Fiscal 2016 Financial Results
For the first nine months of fiscal year 2016, total revenues increased by 7.2% to RMB506.2 million ($78.1 million) from RMB472.1 million in the prior year period. The increase was largely attributable to the increase of the Company's storage revenues from the expanded subscriber base of 489,796 units by the end of December 2015. Revenues from processing fees and storage fees grew by 1.1% and 20.6%, respectively. Gross profit increased by 5.4% to RMB396.2 million ($61.2 million) from RMB376.0 million in the prior year period. Operating income was 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 totaled RMB233.1 million ($36.0 million), up 3.3% from RMB225.6 million in the prior year period.7 Net income attributable to the Company's shareholders amounted to RMB82.7 million ($12.8 million). Basic and diluted earnings per share attributable to ordinary shares were RMB1.07 ($0.17). Net cash provided by operating activities in the first nine months of fiscal 2016 was RMB442.1 million ($68.3 million).
7 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. |
Recent Developments
Conference Call
The Company will host a conference call at 8:00 a.m. ET on Tuesday, March 1, 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 link 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: 6321993.
Use of Non-GAAP Financial Measures
GAAP results for the three months and nine months ended December 31, 2015 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 only seven licenses have been 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 October 2015 revision to 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 the proposed transactions between the foregoing companies; 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 December 31, 2015 were made at the noon buying rate of RMB6.4778 to $1.00 on December 31, 2015 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. China Cord Blood Corporation makes no representation that the Renminbi or U.S. dollar amounts referred to in this press release could have been or could be converted into U.S. dollars or Renminbi, at any particular rate or at all.
For more information, please contact:
China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com
ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com
EXHIBIT 1
CHINA CORD BLOOD CORPORATION |
|||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||
As of March 31 and December 31, 2015 |
|||||||||||||||||
March 31, |
December 31, |
||||||||||||||||
2015 |
2015 |
||||||||||||||||
RMB |
RMB |
US$ |
|||||||||||||||
(in thousands except share data) |
|||||||||||||||||
ASSETS |
|||||||||||||||||
Current assets |
|||||||||||||||||
Cash and cash equivalents |
2,436,655 |
2,873,740 |
443,630 |
||||||||||||||
Trading securities |
7,708 |
- |
- |
||||||||||||||
Accounts receivable, less allowance for doubtful accounts (March 31, 2015: RMB28,624; December 31, 2015: |
|||||||||||||||||
RMB35,256 (US$5,443)) |
120,762 |
128,079 |
19,772 |
||||||||||||||
Inventories |
23,803 |
30,704 |
4,740 |
||||||||||||||
Prepaid expenses and other receivables |
19,508 |
19,911 |
3,074 |
||||||||||||||
Debt issuance costs |
3,592 |
3,812 |
588 |
||||||||||||||
Deferred tax assets |
10,270 |
12,898 |
1,991 |
||||||||||||||
Total current assets |
2,622,298 |
3,069,144 |
473,795 |
||||||||||||||
Property, plant and equipment, net |
603,167 |
582,012 |
89,848 |
||||||||||||||
Non-current deposits |
207,258 |
221,689 |
34,223 |
||||||||||||||
Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2015: RMB55,211; December 31, |
|||||||||||||||||
2015: RMB60,474 (US$9,336)) |
194,238 |
172,734 |
26,665 |
||||||||||||||
Inventories |
58,224 |
61,768 |
9,535 |
||||||||||||||
Intangible assets, net |
115,928 |
112,463 |
17,361 |
||||||||||||||
Available-for-sale equity securities |
122,416 |
172,486 |
26,627 |
||||||||||||||
Other investment |
189,129 |
189,129 |
29,196 |
||||||||||||||
Debt issuance costs |
4,210 |
1,596 |
246 |
||||||||||||||
Deferred tax assets |
2,618 |
2,317 |
358 |
||||||||||||||
Total assets |
4,119,486 |
4,585,338 |
707,854 |
||||||||||||||
LIABILITIES |
|||||||||||||||||
Current liabilities |
|||||||||||||||||
Bank loan |
60,000 |
60,000 |
9,262 |
||||||||||||||
Accounts payable |
12,673 |
11,357 |
1,753 |
||||||||||||||
Accrued expenses and other payables |
87,381 |
63,957 |
9,873 |
||||||||||||||
Deferred revenue |
220,140 |
239,664 |
36,998 |
||||||||||||||
Amounts due to related parties |
20,802 |
35,800 |
5,526 |
||||||||||||||
Income tax payable |
10,081 |
13,419 |
2,072 |
||||||||||||||
Deferred tax liabilities |
9,100 |
13,000 |
2,007 |
||||||||||||||
Total current liabilities |
420,177 |
437,197 |
67,491 |
||||||||||||||
Convertible notes |
815,851 |
903,985 |
139,551 |
||||||||||||||
Non-current deferred revenue |
1,099,399 |
1,275,826 |
196,954 |
||||||||||||||
Other non-current liabilities |
215,585 |
246,804 |
38,100 |
||||||||||||||
Deferred tax liabilities |
25,261 |
23,488 |
3,626 |
||||||||||||||
Total liabilities |
2,576,273 |
2,887,300 |
445,722 |
||||||||||||||
EQUITY |
|||||||||||||||||
Shareholders' equity of China Cord Blood Corporation |
|||||||||||||||||
Ordinary shares |
|||||||||||||||||
- US$0.0001 par value, 250,000,000 shares authorized, |
|||||||||||||||||
73,140,147 shares issued and 73,003,248 shares outstanding |
|||||||||||||||||
as of March 31 and December 31, 2015, respectively |
50 |
50 |
8 |
||||||||||||||
Additional paid-in capital |
814,678 |
858,775 |
132,572 |
||||||||||||||
Treasury stock, at cost |
|||||||||||||||||
(March 31 and December 31, 2015: 136,899 shares, respectively) |
(2,815) |
(2,815) |
(435) |
||||||||||||||
Accumulated other comprehensive income |
63,230 |
90,656 |
13,995 |
||||||||||||||
Retained earnings |
662,615 |
745,341 |
115,061 |
||||||||||||||
Total equity attributable to China Cord Blood Corporation |
1,537,758 |
1,692,007 |
261,201 |
||||||||||||||
Non-controlling interests |
5,455 |
6,031 |
931 |
||||||||||||||
Total equity |
1,543,213 |
1,698,038 |
262,132 |
||||||||||||||
Total liabilities and equity |
4,119,486 |
4,585,338 |
707,854 |
EXHIBIT 2
CHINA CORD BLOOD CORPORATION |
|||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||||||||||
For the Three Months and Nine Months ended December 31, 2014 and 2015 |
|||||||||||||
Three months ended |
Nine months ended |
||||||||||||
2014 |
2015 |
2014 |
2015 |
||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||
(in thousands except per share data) |
|||||||||||||
Revenues |
166,675 |
169,374 |
26,147 |
472,128 |
506,221 |
78,147 |
|||||||
Direct costs |
(36,047) |
(36,191) |
(5,587) |
(96,171) |
(110,004) |
(16,982) |
|||||||
Gross profit |
130,628 |
133,183 |
20,560 |
375,957 |
396,217 |
61,165 |
|||||||
Operating expenses |
|||||||||||||
Research and development |
(2,418) |
(2,600) |
(401) |
(7,247) |
(6,687) |
(1,032) |
|||||||
Sales and marketing |
(30,271) |
(36,759) |
(5,675) |
(92,967) |
(110,934) |
(17,125) |
|||||||
General and administrative |
(30,096) |
(43,070) |
(6,649) |
(90,270) |
(126,937) |
(19,596) |
|||||||
Total operating expenses |
(62,785) |
(82,429) |
(12,725) |
(190,484) |
(244,558) |
(37,753) |
|||||||
Operating income |
67,843 |
50,754 |
7,835 |
185,473 |
151,659 |
23,412 |
|||||||
Other expense, net |
|||||||||||||
Interest income |
4,574 |
4,670 |
721 |
13,544 |
13,767 |
2,125 |
|||||||
Interest expense |
(25,760) |
(27,792) |
(4,290) |
(75,864) |
(79,976) |
(12,346) |
|||||||
Exchange loss |
(147) |
(766) |
(118) |
(149) |
(959) |
(148) |
|||||||
Dividend income |
1,148 |
37,998 |
5,866 |
2,344 |
49,198 |
7,595 |
|||||||
Impairment loss on |
|||||||||||||
available-for-sale equity |
|||||||||||||
securities |
- |
- |
- |
- |
(8,361) |
(1,291) |
|||||||
Others |
(537) |
(377) |
(58) |
760 |
(616) |
(95) |
|||||||
Total other expense, net |
(20,722) |
13,733 |
2,121 |
(59,365) |
(26,947) |
(4,160) |
|||||||
Income before income tax |
47,121 |
64,487 |
9,956 |
126,108 |
124,712 |
19,252 |
|||||||
Income tax expense |
(13,512) |
(13,636) |
(2,105) |
(35,663) |
(41,410) |
(6,393) |
|||||||
Net income |
33,609 |
50,851 |
7,851 |
90,445 |
83,302 |
12,859 |
|||||||
Net income attributable to |
|||||||||||||
non-controlling interests |
(225) |
(399) |
(62) |
(76) |
(576) |
(89) |
|||||||
Net income attributable to |
|||||||||||||
China Cord Blood |
|||||||||||||
Corporation's |
|||||||||||||
shareholders |
33,384 |
50,452 |
7,789 |
90,369 |
82,726 |
12,770 |
|||||||
Net income per share: |
|||||||||||||
Attributable to ordinary shares |
|||||||||||||
- Basic |
0.41 |
0.63 |
0.10 |
1.13 |
1.07 |
0.17 |
|||||||
- Diluted |
0.41 |
0.63 |
0.10 |
1.13 |
1.07 |
0.17 |
|||||||
Other comprehensive income |
|||||||||||||
- Net effect of foreign currency |
|||||||||||||
translation, net of nil tax |
1,840 |
(6,362) |
(982) |
3,282 |
(21,600) |
(3,334) |
|||||||
- Net unrealized (loss)/gain in |
|||||||||||||
available-for-sale equity |
|||||||||||||
securities, net of nil tax: |
|||||||||||||
- Unrealized (loss)/gain |
|||||||||||||
arising during the period |
(34,297) |
22,679 |
3,501 |
(38,609) |
40,684 |
6,281 |
|||||||
- Reclassification adjustment |
|||||||||||||
for losses included in |
|||||||||||||
net income |
- |
- |
- |
- |
8,361 |
1,291 |
|||||||
Comprehensive income |
1,152 |
67,168 |
10,370 |
55,118 |
110,747 |
17,097 |
|||||||
Comprehensive income |
|||||||||||||
attributable to non-controlling |
|||||||||||||
interests |
(225) |
(399) |
(62) |
(76) |
(576) |
(89) |
|||||||
Comprehensive income |
|||||||||||||
attributable to China Cord |
|||||||||||||
Blood Corporation's |
|||||||||||||
shareholders |
927 |
66,769 |
10,308 |
55,042 |
110,171 |
17,008 |
EXHIBIT 3
CHINA CORD BLOOD CORPORATION |
||||||||||||||||||
RECONCILIATION OF NON-GAAP OPERATING INCOME |
||||||||||||||||||
For the Three Months and Nine Months ended December 31, 2014 and 2015 |
||||||||||||||||||
Three months ended December 31, |
Nine months ended December 31, |
|||||||||||||||||
2014 |
2015 |
2014 |
2015 |
|||||||||||||||
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||||
GAAP amount of operating |
||||||||||||||||||
income |
67,843 |
50,754 |
7,835 |
185,473 |
151,659 |
23,412 |
||||||||||||
Depreciation and amortization |
||||||||||||||||||
expenses8 |
12,877 |
12,865 |
1,986 |
37,585 |
37,768 |
5,830 |
||||||||||||
Share-based compensation |
||||||||||||||||||
expense9 |
2,497 |
14,914 |
2,302 |
2,497 |
43,634 |
6,736 |
||||||||||||
Non-GAAP operating income |
83,217 |
78,533 |
12,123 |
225,555 |
233,061 |
35,978 |
||||||||||||
8 Depreciation and amortization expenses relate to property, plant and equipment and intangible assets respectively. |
||||||||||||||||||
9 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 quarter ended December 31, 2014. Out of 7,300,000 RSUs granted, 7,080,000 Shares were then issued and deposited into a Trust. |