Global Cord Blood Corporation Reports Financial Results for the 4th Quarter and Full Year 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 fourth quarter and full year of fiscal year 2020 ended March 31, 2020.

Fourth Quarter of Fiscal 2020 Highlights

Fourth quarter revenues increased by 19.2% year over year ("YoY") to RMB299.9 million ($42.4 million).

New subscribers were 18,488, and the accumulated subscriber base expanded to 833,094[1].

Gross profit increased by 25.5% YoY to RMB256.4 million ($36.2 million). Gross margin increased to 85.5% from 81.2% in the prior year period on the back of a higher processing fee since April 2019.

Operating income increased by 68.1% YoY to RMB149.3 million ($21.1 million). Operating margin improved to 49.8% from 35.3% in the prior year period, achieved mainly through higher gross profit and measures taken to curb operating expenses.

Operating income before depreciation and amortization expense ("non-GAAP operating income[2]") increased by 58.7% YoY to RMB161.7 million ($22.8 million).

Net income attributable to the Company's shareholders increased by 6.5% YoY to RMB97.0 million ($13.7 million), after taking into account fair value losses of equity securities and higher income tax expense.

Net cash provided by operating activities decreased by 59.4% YoY to RMB90.0 million ($12.7 million) due to the impact from the 2019 novel coronavirus ("COVID-19") pandemic, as it remained challenging to recruit new subscribers.

Full Year Fiscal 2020 Highlights

Revenues increased by 23.8% YoY to RMB1,221.5 million ($172.5 million).

New subscriber sign-ups were 84,241 and the accumulated subscriber base expanded to 833,094[1].

Gross profit increased by 28.9% YoY to RMB1,032.3 million ($145.8 million).

Operating income increased by 46.5% to RMB559.0 million ($79.0 million).

Non-GAAP operating income[2] improved by 40.2% to RMB608.5 million ($85.9 million).

Net income attributable to the Company's shareholders increased by 61.7% YoY to RMB470.7 million ($66.5 million).

Net cash provided by operating activities was down by 21.2% YoY to RMB624.0 million ($88.1 million).

"Despite the difficult market conditions resulting from the unprecedented COVID-19 pandemic and a continued decrease in newborn numbers in the markets in which we operate, we managed to recruit over 84,000 new subscribers during fiscal 2020 and achieved our full-year target," said Ms. Ting Zheng, Chairperson and Chief Executive Officer of GCBC. "As the impact of COVID-19 lingers, hospitals in China have implemented strict access rules, and consumers remain cautious on inter-personal contact and discretionary spending. In addition, the regulatory uncertainties of the cord blood banking industry in China continue to exist. Therefore, we believe that the business environment for the next fiscal year will remain challenging. However, we will continue to execute on our strategy to overcome the short-term challenges, focus on achieving operational targets, and explore business opportunities to pave a solid path for our long-term development."

Summary - Fourth Quarter and Full Year Ended March 31, 2019 and 2020

Three Months Ended March 31,

Year Ended March 31,

2019

2020

2019

2020

(In thousands)

RMB

RMB

US$

RMB

RMB

US$

Revenues

251,651

299,888

42,352

986,754

1,221,460

172,503

...

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