Global Cord Blood Corporation (NYSE: CO) ("GCBC" 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 third quarter and first nine months of fiscal year 2020 ended December 31, 2019.
Third Quarter of Fiscal 2020 Highlights
- Revenues increased by 31.7% year over year ("YoY") to RMB334.7 million ($48.1 million).
- New subscribers and accumulated subscriber base were 23,387 and 815,000[1], respectively.
- Gross profit increased by 37.5% YoY to RMB283.1 million ($40.7 million), and gross margin improved from 81.0% in the prior year period to 84.6%.
- Operating income increased by 65.1% YoY to RMB152.9 million ($22.0 million), and operating margin improved from 36.4% in the prior year period to 45.7%.
- Operating income before depreciation and amortization ("non-GAAP operating income[2]") increased by 56.7% YoY to RMB165.0 million ($23.7 million).
- Net income attributable to the Company's shareholders jumped 136.3% to RMB145.0 million ($20.8 million) as a result of the new processing fee pricing and an increase in fair value of equity securities.
- Net cash provided by operating activities was RMB156.0 million ($22.4 million).
First Nine Months of Fiscal 2020 Highlights
- Revenues increased by 25.4% YoY to RMB921.6 million ($132.4 million).
- New subscriber sign-ups were 65,753, and accumulated subscriber base expanded to 815,000[1].
- Gross profit increased by 30.1% YoY to RMB776.0 million ($111.5 million).
- Operating income increased by 39.9% YoY to RMB409.7 million ($58.8 million).
- Non-GAAP operating income[2] increased by 34.5% YoY to RMB446.7 million ($64.2 million).
- Net income attributable to the Company's shareholders increased by 86.8% to RMB373.7 million ($53.7 million).
- Net cash provided by operating activities for the first nine months of fiscal 2020 was RMB534.0 million ($76.7 million).
"Our results this quarter were in line with management expectations despite difficulties we faced from cautious consumer sentiment," said Ms. Ting Zheng, Chairperson and Chief Executive Officer of GCBC. "In view of the impact of the coronavirus on the next fiscal quarter and likely the next fiscal year, the uncertainties surrounding updated regulations on the cord blood banking industry in China, and prolonged consumer caution on spending compounded by traditionally soft newborn numbers in the Year of the Mouse, we will remain agile in order to navigate through tough waters in the short term while accelerating our business development activities to expand our service offerings and alleviate business concentration risks."










(All Rights Reserved)