Global Cord Blood Corporation Reports Financial Results for the Second Quarter and First Half of Fiscal 2020.

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 second quarter and first half of fiscal year 2020 ended September 30, 2019.

Second Quarter of Fiscal 2020 Highlights

Revenues increased by 26.9% year over year ("YoY") to RMB313.5 million ($43.9 million).

New subscribers and accumulated subscriber base were 21,551 and 791,812[1], respectively.

Gross profit increased by 32.7% YoY to RMB265.1 million ($37.1 million).

Gross margin increased from 80.9% in the prior year period to 84.6%.

Operating income increased by 37.9% YoY to RMB144.4 million ($20.2 million).

Operating income before depreciation and amortization ("non-GAAP operating income[2]") increased by 32.8% YoY to RMB156.9 million ($22.0 million).

Net income attributable to the Company's shareholders increased by 84.8% to RMB120.4 million ($16.8 million), as last year period recorded a significant decrease in fair value for equity securities ("mark-to-market loss") of RMB30.9 million compared to that of RMB7.0 million ($1.0 million) in the reporting quarter.

Net cash provided by operating activities was RMB208.3 million ($29.1 million).

First Half of Fiscal 2020 Highlights

Revenues increased by 22.0% YoY to RMB586.8 million ($82.1 million).

New subscriber sign-up was 42,366, and accumulated subscriber base expanded to 791,812[1].

Gross profit increased by 26.2% YoY to RMB492.8 million ($68.9 million).

Operating income increased by 28.3% YoY to RMB256.8 million ($35.9 million).

Non-GAAP operating income[2] increased by 24.2% YoY to RMB281.7 million ($39.4 million).

Net income attributable to the Company's shareholders increased by 64.9% to RMB228.7 million ($32.0 million), mainly attributable to the increase in operating income and the significant decrease in mark-to-market loss in the reporting six months.

Net cash provided by operating activities for the first half of fiscal 2020 was RMB378.0 million ($52.9 million).

"Despite the prolonged cautious consumer sentiment in our markets fueled in part with slower economic growth in China, the US-China trade tensions, and our recent price adjustment, we managed to recruit 21,551 new subscribers in the second quarter, on track with our annual target." said Ms. Ting Zheng, Chairperson and Chief Executive Officer of GCBC. "With the Regulation of the People's Republic of China on the Administration of Human Genetic Resources coming into effect, we are evaluating its implications and other potential regulatory developments affecting our business. At the same time, we will continue to look for opportunities to broaden our revenue sources, and are prepared to adjust our strategy and market positioning to cope with any potential changes within the industry."

Summary - Second Quarter and First Half Ended September 30, 2018 and 2019

Three Months Ended September 30,

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