China Cord Blood Corporation reports financial results

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 on Feb. 25, 2015 announced its preliminary unaudited financial results for the third quarter and first nine months of fiscal 2015 ended December 31, 2014.
Third Quarter of Fiscal 2015 Highlights
Revenues for the third quarter of fiscal 2015 increased by 10.7% to RMB166.7 million ($26.9 million) from RMB150.6 million in the prior year period.
New subscribers and accumulated subscriber base were 17,622 and 425,377, respectively.
Gross profit increased by 5.7% to RMB130.6 million ($21.1 million) from RMB123.6 million in the prior year period, despite higher raw material costs and depreciation expense.
Gross margin was 78.4%, compared to 82.0% in the prior year period.
Operating income increased to RMB67.8 million ($10.9 million) from RMB65.7 million in the prior year period, despite higher depreciation expense as a result of the completion of the new facilities and the first time recognition of share-based compensation expense related to the restricted share units (“RSUs”) granted.
Operating income before depreciation and amortization and share-based compensation expenses was RMB83.2 million ($13.4 million), up 9.9% year-over-year.
Interest expense was RMB25.8 million ($4.2 million), compared to RMB21.9 million in the prior year period due to the absence of interest expense capitalization.
Net income attributable to the Company’s shareholders was RMB33.4 million ($5.4 million), compared to RMB34.6 million in the prior year period.
Operating cash flow for the quarter was RMB152.7 million ($24.6 million) after taking into account the interest payment made to the Company’s convertible note holder.
First Nine Months of Fiscal 2015 Highlights
Revenues for the first nine months of fiscal 2015 increased by 12.2% to RMB472.1 million ($76.1 million) from RMB420.9 million in the prior year period.
New subscribers reached 48,754 and the accumulated subscriber base expanded to 425,377.
Gross profit increased by 9.9% to RMB376.0 million ($60.6 million) from RMB342.1 million in the prior year period.
Operating income increased by 10.5% to RMB185.5 million ($29.9 million) from RMB167.9 million in the prior year period.
Operating income before depreciation and amortization and share-based compensation expenses was RMB225.6 million ($36.4 million), up 15.6% year-over-year.
Interest expense was RMB75.9 million ($12.2 million), compared to RMB53.1 million in the prior year period due to the absence of interest expense capitalization.
Net income attributable to the Company’s shareholders was RMB90.4 million ($14.6 million), compared to RMB92.4 million in the prior year period.
Operating cash flow for the first nine months of fiscal 2015 increased by 12.5% to RMB448.4 million ($72.3 million) from RMB398.6 million in the prior year period.
“We recorded solid performance in the third quarter of fiscal 2015 with more than 17,600 new subscribers, representing strong year-on-year growth and a quarter-on-quarter improvement,” stated Ms. Ting Zheng, Chief Executive Officer of China Cord Blood Corporation. “Our new subscriber growth in the December quarter reflects our recent increase in strategic marketing efforts in the second quarter of fiscal 2015. With the Company’s cumulative subscriber base exceeding 425,000, we have further solidified our position as one of the largest cord blood banks on a global scale.”
Ms. Zheng further commented, “In the near term, we continue to explore new promotion platforms while strengthening our existing marketing channels in order to deepen our market penetration in both Beijing and Guangdong, as well as gradually enrolling new hospitals in Zhejiang. We recently announced our new MOU with Cord Blood Registry in the US. This partnership will further our mission to deliver premium quality precautionary healthcare services to families as we continue to support patients and clients both domestically and abroad.”
Source: http://www.prnewswire.com/news-releases/china-cord-blood-corporation-reports-financial-results-for-the-third-quarter-and-first-nine-months-of-fiscal-2015-300041088.html

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