HONG KONG: 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 fourth quarter and full year of fiscal year 2019 ended March 31, 2019.
Fourth Quarter of Fiscal 2019 Highlights
Fourth quarter revenues increased by 8.0% year over year ("YoY") to RMB251.7 million ($37.5 million).
New subscribers were 22,194, and the accumulated subscriber base expanded to 750,273.
Gross profit increased by 8.2% YoY to RMB204.3 million ($30.4 million). Gross margin increased slightly to 81.2% from 81.0% in the prior year period.
Operating income increased to RMB88.9 million ($13.2 million) due to the absence of share-based compensation expense; all outstanding restricted share units ("RSUs") were fully vested during the quarter ended March 31, 2018.
Operating income before depreciation and amortization and share-based compensation expense ("non-GAAP operating income") amounted to RMB101.9 million ($15.2 million).
Net income attributable to the Company's shareholders increased to RMB91.1 million ($13.6 million) due to improved operating income and an increase in fair value of equity securities ("mark-to-market gains") of RMB11.5 million ($1.7 million) in the fourth quarter.
Net cash provided by operating activities improved by 14.0% to RMB221.5 million ($33.0 million).
Full Year Fiscal 2019 Highlights
Revenues increased by 5.3% YoY to RMB986.8 million ($147.0 million).
New subscriber sign-ups reached 89,366 and the accumulated subscriber base expanded to 750,273.
Gross profit increased by 6.0% YoY to RMB800.7 million ($119.3 million).
Operating income increased by 36.4% to RMB381.7 million ($56.9 million).
Non-GAAP operating income improved by 4.7% to RMB434.0 million ($64.7 million).
Net income attributable to the Company's shareholders increased by 22.8% YoY to RMB291.1 million ($43.4 million).
Net cash provided by operating activities was RMB792.1 million ($118.0 million).
"During fiscal 2019, the total newborn number in China and in the markets we operate decreased. Despite the market condition, we managed to recruit over 89,000 new subscribers, hitting the upper bound of our fiscal 2019 target. The management team is glad with our achievements," said Ms. Ting Zheng, Chairperson and Chief Executive Officer of GCBC.
"We expect volume contributions from our three markets to remain in their respective trends, and we maintain caution regarding near-term volumes. We believe that our new pricing will absorb some rising cost pressures and bridge the revenue gap while better reflecting the Company's market position. As we continue to re-examine our capital on hand, business position...