China Cord Blood Corporation Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2017

Added 20,566 New Subscribers in 4Q17

4Q17 Revenue Amounted to RMB202.0 Million ($29.3 Million)

4Q17 Operating Income Amounted to RMB56.3 Million ($8.2 Million)

Conference Call to be Held on June 22, 2017 at 8:00 a.m. ET

HONG KONG, June 21, 2017 /PRNewswire/ -- 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, today announced its preliminary unaudited financial results for the fourth quarter and full year of the fiscal year 2017 ended March 31, 2017.

Fourth Quarter of Fiscal 2017 Highlights

    --  Revenues for the fourth quarter of fiscal 2017 increased by 28.8% to
        RMB202.0 million ($29.3 million) from RMB156.8 million in the prior year
        period, partly attributed to the relatively low comparison base in the
        prior year period.
    --  New subscribers and accumulated subscriber base were 20,566 and
        575,040(1) respectively.
    --  Gross profit increased to RMB161.0 million ($23.4 million) from RMB122.2
        million in the prior year period. Gross margin increased to 79.7% from
        77.9% in the prior year period.
    --  Operating income increased by 42.0% to RMB56.3 million ($8.2 million).
    --  Operating income before depreciation and amortization and share-based
        compensation expenses increased by 26.1% to RMB84.7 million ($12.3
        million).(2 )
    --  Interest expense was RMB30.2 million ($4.4 million), compared to RMB28.0
        million in the prior year period.
    --  Income tax benefit of RMB3.9 million ($0.6 million) was recorded in the
        fourth quarter of fiscal 2017 as a result of the reversal of provision
        for income tax.
    --  Net income attributable to the Company's shareholders increased to
        RMB37.9 million ($5.5 million) from RMB8.2 million in the prior year
        period.
    --  Net cash provided by operating activities for the fourth quarter of
        fiscal 2017 amounted to RMB200.5 million ($29.1 million).

Full Year of Fiscal 2017 Highlights

    --  Revenues for the full year of fiscal 2017 increased by 14.6% to RMB760.0
        million ($110.4 million).
    --  New subscriber sign-ups reached 74,952 and accumulated subscriber base
        expanded to 575,040(1).
    --  Gross profit increased by 19.1% to RMB617.3 million ($89.7 million) from
        RMB518.4 million in the prior year.
    --  Operating income increased by 38.4% to RMB264.9 million ($38.5 million)
        from RMB191.3 million in the prior year.
    --  Operating income before depreciation and amortization and share-based
        compensation expenses increased to RMB377.6 million ($54.9 million) from
        RMB300.2 million in the prior year, a year-on-year increase of 25.8%.(2)
    --  Interest expense was RMB119.4 million ($17.3 million), compared to
        RMB108.0 million in the prior year.
    --  Net income attributable to the Company's shareholders increased by 38.7%
        to RMB126.2 million ($18.3 million) from RMB91.0 million in the prior
        year.
    --  Net cash provided by operating activities for the full year of fiscal
        2017 increased by 9.7% to RMB637.6 million ($92.6 million) from RMB581.0
        million in the prior year.

"In fiscal 2017, we successfully added 74,952 new subscribers to our accumulated subscriber base with the Guangdong market as the main driver of growth. We added 20,566 new subscribers in the fourth quarter, a year-over-year increase of 42.1%, partially aided by a lower comparison in the prior year period. Our accumulated subscriber base expanded to 575,040(1), which underscores our position as a leading provider in China's cord blood banking industry," Ms. Ting Zheng, Chief Executive Officer of CCBC, commented.

"Looking ahead, we expect an increase in the number of newborn babies in 2018, yet consumer discretionary spending will continue to be constrained. To further grow our subscription base and penetrate markets, we will utilize new media and marketing methods to continue improving new subscriber awareness of the value of cord blood storage. Meanwhile, the management team will proactively explore various cooperation and business opportunities to best serve our clients' maternal needs throughout the prenatal and postnatal periods. In doing so, we will leverage our existing resources and core competencies to develop more comprehensive preventive healthcare measures."

Summary - Fourth Quarter and Full Year Ended March 31, 2016 and 2017


                                      Three Months Ended March 31,                Year Ended March 31,
                                      ----------------------------                --------------------

                                                     2016                    2017                          2016             2017
                                                                                                                         ----

    (In thousands)                RMB                              RMB                US$                       RMB              RMB               US$

    Revenues                                      156,778                 201,998                        29,347          662,999           759,978           110,411

    Gross Profit                                  122,184                 160,979                        23,388          518,401           617,338            89,688

    Other Operating Income                              -                      -                            -               -           26,316             3,823

    Operating Income(3)                            39,671                  56,316                         8,182          191,330           264,865            38,480

    Interest Expense                             (27,991)               (30,190)                      (4,386)       (107,967)        (119,418)         (17,349)

    Net Income Attributable to

    the Company's

    Shareholders                                    8,244                  37,940                         5,511           90,970           126,190            18,333

    Earnings per Ordinary Share
     - Basic and Diluted4

          (RMB/US$)                                  0.18                    0.45                          0.07             1.25              1.59              0.23


    Revenue Breakdown (%)

    Processing Fees                                59.2 %                  64.4%                                       63.3 %           63.4 %

    Storage Fees                                   40.8 %                 35.6 %                                       36.7 %           36.6 %


    New Subscribers (persons)                      14,472                  20,566                                        62,909            74,952

    Total Accumulated Subscribers

      (persons)                                   504,268              575,040(1)                                       504,268        575,040(1)

Summary - Selected Cash Flow Statement Items


                           Three Months Ended March 31,              Year Ended March 31,
                           ----------------------------              --------------------

                                               2016             2017                        2016            2017
                                                                                                         ----

    (In thousands)                    RMB               RMB                       US$            RMB             RMB              US$

    Net cash provided by                    138,874          200,537                      29,135         580,997          637,632            92,636
      operating activities

    Net cash used in                        (1,147)         (5,979)                      (869)       (16,480)        (90,575)         (13,158)
      investing activities

    Net cash used in                        (1,646)               -                          -        (1,646)        (60,000)          (8,717)
      financing activities

Fourth Quarter of Fiscal 2017 Financial Results

REVENUES. Revenues in the fourth quarter of fiscal 2017 increased by 28.8% to RMB202.0 million ($29.3 million) from RMB156.8 million in the prior year period, mainly driven by an increase in new subscribers backed by strong growth in the Guangdong market. The strong year-over-year growth rate was also partly attributable to the relatively low comparison base in the prior year period.

20,566 new subscriber sign-ups were recorded during the reporting quarter, representing 42.1% year-over-year growth and factoring in the low comparison base of the prior year period. Revenues generated from processing fees in the fourth quarter increased by 40.3% to RMB130.2 million ($18.9 million) from RMB92.8 million in the prior year period. As a percentage of revenues, revenues generated from processing fees accounted for 64.4%, compared to 59.2% in the prior year period.

Revenues generated from storage fees increased to RMB71.8 million ($10.4 million), up 12.2% from RMB64.0 million in the prior year period. The Company's accumulated subscriber base reached 575,040(1) by the end of March 2017. Storage fees accounted for 35.6% of the total revenues, compared to 40.8% in the prior year period.

GROSS PROFIT. Gross profit for the fourth quarter of fiscal 2017 increased to RMB161.0 million ($23.4 million) from RMB122.2 million in the prior year period, a year-on-year growth of 31.8%. Gross margin was 79.7% in the reporting quarter, up from 77.9% in the prior year period. Higher revenue and economy of scale lifted the gross margin.

OPERATING INCOME. Operating income for the fourth quarter increased by 42.0% to RMB56.3 million ($8.2 million), compared to RMB39.7 million in the prior year period. Top line growth was partially offset by increased sales and marketing efforts but still fueled operating margin expansion from 25.3% in the prior year period to 27.9% in the reporting quarter. Depreciation and amortization expenses for the fourth quarter were RMB12.6 million ($1.8 million), compared to RMB12.4 million in the prior year period. Share-based compensation expense was RMB15.7 million ($2.3 million), compared to RMB15.1 million in the prior year period. The increase of share-based compensation expense was mainly attributable to the depreciation of Renminbi against U.S. dollar. Operating income before depreciation and amortization and share-based compensation expenses increased by 26.1% to RMB84.7 million ($12.3 million) from RMB67.1 million in the prior year period.(2)

Research and Development Expenses. Research and development expenses amounted to RMB3.2 million ($0.5 million) compared to RMB2.3 million in the prior year period.

Sales and Marketing Expenses. Sales and marketing expenses for the fourth quarter amounted to RMB53.7 million ($7.8 million), compared to RMB37.2 million in the prior year period. The increase was mainly attributable to an additional performance incentive of RMB5.2 million ($0.8 million) for the contribution of the Guangdong sales team and to a lesser extent, additional promotion expense relating to a new marketing campaigns on social media. As a percentage of revenues, sales and marketing expenses were 26.6%, compared to 23.7% in the prior year period.

General and Administrative Expenses. General and administrative expenses for the fourth quarter increased modestly to RMB47.8 million ($6.9 million) from RMB43.0 million in the prior year period while decreased by 5.5% quarter-over-quarter from RMB50.6 million in the prior quarter. During the three months ended March 31, 2017, the Company recorded a RMB1.0 million ($0.1 million) write-off of accounts receivable because the recoverability of 268 private cord blood banking subscribers was considered low. As a percentage of revenues, general and administrative expenses were 23.7%, down from 27.4% in the prior year period.

OTHER INCOME AND EXPENSES.

Interest Expense. Interest expense was mainly related to the Company's outstanding convertible notes. In the reporting quarter, the Company incurred interest expense of RMB30.2 million ($4.4 million), compared to RMB28.0 million in the prior year period. The increase was due to the compounding interest effect of the convertible notes and the translation difference arising from the depreciation of Renminbi against U.S. dollar. Subsequent to the end of the fourth quarter of fiscal 2017, all outstanding convertible notes were converted into an aggregate of 40,521,494 ordinary shares.

INCOME TAX (EXPENSE)/BENEFIT. Income tax benefit of RMB3.9 million ($0.6 million) was recorded in the fourth quarter of fiscal 2017 as a result of the reversal of provision for income tax of RMB18.2 million ($2.6 million) made in the reporting quarter. Excluding the effect of the reversal, income tax expense was RMB14.3 million ($2.1 million), compared to RMB8.6 million in the prior year period.

NET INCOME ATTRIBUTABLE TO THE COMPANY'S SHAREHOLDERS. Net income attributable to the Company's shareholders for the fourth quarter of fiscal 2017 increased to RMB37.9 million ($5.5 million) from RMB8.2 million in the prior year period. Net margin for the fourth quarter of fiscal 2017 increased to 18.8% from 5.3% in the prior year period.

EARNINGS PER SHARE. Basic and diluted earnings per ordinary share for the fourth quarter of fiscal 2017 were RMB0.45 ($0.07)(5), up from RMB0.18 in the prior year period.

LIQUIDITY. As of March 31, 2017, the Company had cash and cash equivalents of RMB3,510.3 million ($510.0 million), up from RMB3,008.4 million as of March 31, 2016. The Company had total debt(6) of RMB1,031.2 million ($149.8 million) as of March 31, 2017. Net cash provided by operating activities for the fourth quarter of fiscal 2017 amounted to RMB200.5 million ($29.1 million).

Full Year of Fiscal 2017 Financial Results

For the full year of fiscal 2017, total revenues increased by 14.6% to RMB760.0 million ($110.4 million) from RMB663.0 million in the prior year. The increase was mainly attributable to the growth in processing and storage revenues contributed by the increased new subscriber number of 74,952 for the reporting fiscal year and the enlarged subscriber base of 575,040(1) as of March 31, 2017. Revenues from processing fees and storage fees grew by 14.8% and 14.3%, respectively.

Gross profit increased by 19.1% to RMB617.3 million ($89.7 million) from RMB518.4 million in the prior year as a result of revenue growth and a recognition of RMB16.8 million ($2.4 million) consideration from consultation services related to the usage of cord blood processing devices and consumables, which was recorded as a reduction of direct costs.

Operating income increased to RMB264.9 million ($38.5 million) from RMB191.3 million in the prior year, a year-on-year increase of 38.4%, attributed to a higher gross profit and other operating income of RMB26.3 million ($3.8 million) from a public bank collaboration project, which was partially offset by the increased operating expenses. Operating income before depreciation and amortization and share-based compensation expenses increased by 25.8% to RMB377.6 million ($54.9 million) from RMB300.2 million in the prior year.(2)

Combining the effects of increased operating income and lower income tax expenses, which was driven by the reversal of provision for income tax and partially offset by lower dividend income, net income attributable to the Company's shareholders increased by 38.7% to RMB126.2 million ($18.3 million) from RMB91.0 million in the prior year.

Basic and diluted earnings per share attributable to ordinary shares were RMB1.59 ($0.23), compared to RMB1.25 in the prior year.

Net cash provided by operating activities in the full year of fiscal 2017 increased to RMB637.6 million ($92.6 million) from RMB581.0 million in the prior year.

Recent Developments

    --  On April 6, 2017, the holder of all outstanding convertible notes
        converted such securities in ordinary shares of the Company at a
        conversion price of $2.838 per share. The conversion resulted in an
        issuance of 40,521,494 ordinary shares of the Company. Subsequent to
        such conversion, the Company has no outstanding convertible notes.
    --  On April 13, 2017, the Board of Directors (the "Board") adopted the
        recommendation of the special committee of independent directors (the
        "Special Committee"), formed to evaluate the previously announced
        proposal received from Golden Meditech Holdings Limited ("Golden
        Meditech"), pursuant to which Golden Meditech proposed to acquire all of
        the outstanding ordinary shares of the Company not already directly or
        indirectly owned by Golden Meditech, to terminate any further evaluation
        and negotiation regarding such proposal.  In making its recommendation,
        the Special Committee had taken into account various factors including
        but not limited to the pending acquisition transaction between an
        affiliate of Golden Meditech and Nanjing Ying Peng Hui Kang Medical
        Industry Investment Partnership (limited partnership) ("NJYP"), pursuant
        to which an affiliate of Golden Meditech has conditionally agreed to
        sell to NJYP an approximate 65.4% equity interest in the Company on a
        fully diluted basis for RMB5.764 billion in cash, NJYP's future plans
        regarding the Company after the acquisition is completed and the overall
        viability of the proposal. The Special Committee's recommendation was
        unanimous and the adoption of its recommendation by the full Board of
        the Company was unanimous, with the chairman Mr. Yuen Kam abstaining.

Conference Call

The Company will host a conference call at 8:00 a.m. ET on Thursday, June 22, 2017 to discuss its financial performance and give a brief overview of the Company's recent developments, followed by a question and answer session. Interested parties can access the audio webcast through the Company's IR website at http://ir.chinacordbloodcorp.com. A replay of the webcast will be accessible two hours after the conference call and available for three weeks at the same URL link above. Listeners can also access the call by dialing 1-719-325-2226 or 1-888-394-8218 for US callers, or +852-3008-1527 for Hong Kong callers, access code: 5571545.

Use of Non-GAAP Financial Measures

GAAP results for the three months and year ended March 31, 2017 include non-cash items related to the depreciation and amortization and share-based compensation expenses. To supplement the Company's unaudited condensed consolidated financial statements presented on a U.S. GAAP basis, the Company has provided adjusted financial information excluding the impact of these items in this press release. The non-GAAP financial measure represents non-GAAP operating income. Such adjustment is a departure of U.S. GAAP; however, the Company's management believes that these adjusted measures provide investors with a better understanding of how the results relate to the Company's historical performance. Also, management uses non-GAAP operating income as a measurement tool for evaluating actual operating performance compared to budget and prior periods. These adjusted measures should not be considered an alternative to operating income, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. These measures are not necessarily comparable to a similarly titled measure of another company. A reconciliation of the adjustments to U.S. GAAP results appears in exhibit 3 accompanying this press release. This additional adjusted information is not meant to be considered in isolation or as a substitute for U.S. GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies.


    (1) During the three months and
     year ended March 31, 2017, 20,566
     and 74,952 new subscribers were
     recruited, respectively. During
     the three months and year ended
     March 31, 2017, the Company
     reclassified 268 and 4,180
     private cord blood units as
     donated cord blood units after
     the Company determined that the
     recoverability of these prior
     private cord blood banking
     subscribers was low and therefore
     the Company terminated their
     subscription services according
     to the subscription contracts.
     These units are being treated as
     if they were donated cord blood
     units and will be part of the
     Company's non-current
     inventories. Hence the net
     accumulated subscriber base was
     575,040 as of March 31, 2017.


    (2) See exhibit 3 of this press
     release for a reconciliation of
     operating income to exclude the
     non-cash items related to the
     depreciation and amortization and
     share-based compensation
     expenses to the comparable
     financial measure prepared in
     accordance with U.S. generally
     accepted accounting principles
     ("U.S. GAAP").


    (3) The reported operating income
     for the three months and year
     ended March 31, 2016 and 2017
     included the following:


    (i)   Depreciation and
     amortization expenses for the
     three months ended March 31, 2016
     and 2017 were RMB12.4 million and
     RMB12.6 million ($1.8 million).
     Depreciation and amortization
     expenses for the year ended March
     31, 2016 and 2017 were RMB50.2
     million and RMB50.5 million ($7.3
     million); and


    (ii)  During the quarter ended
     December 31, 2014, the Company
     granted a total of 7,300,000
     restricted share units ("RSU") to
     certain executives, directors and
     key employees under the Company's
     RSU scheme, subject to certain
     performance conditions. Share-
     based compensation expenses
     related to this RSU scheme were
     RMB15.1 million and RMB15.7
     million ($2.3 million) for the
     three months ended March 31, 2016
     and 2017. Share-based
     compensation expenses for the
     year ended March 31, 2016 and
     2017 were RMB58.7 million and
     RMB62.2 million ($9.0 million).


    4 The terms of the convertible
     notes provide the holder with the
     ability to participate in any
     excess cash dividend. Therefore,
     the calculation of basic EPS has
     taken into consideration the
     effect of such participating
     rights of RMB0.07 ($0.01) and
     RMB0.14 ($0.02) per share for the
     three months and year ended March
     31, 2017, respectively.


    5 Out of 7,300,000 RSUs granted to
     certain executives, directors and
     key employees under the Company's
     RSU scheme during the quarter
     ended December 31, 2014,
     7,080,000 ordinary shares
     ("Shares") were then issued and
     deposited into a trust sponsored
     and funded by the Company
     ("Trust"), and will be
     transferred to respective
     executives, directors and key
     employees (or their designated
     nominees) under the Company's RSU
     scheme when the performance
     conditions are met. The Trust
     facilitates the granting (and
     subsequent vesting) of incentive
     RSUs and holds such Shares for
     the benefit of such executives,
     directors and key employees as a
     class. Taking into account of
     such Shares, in addition to
     73,003,248 outstanding shares,
     basic and diluted earnings per
     ordinary share would be RMB0.43
     ($0.06) and RMB1.50 ($0.2) for
     the three months and year ended
     March 31, 2017, respectively.


    6 Total debt represented the
     carrying amount of convertible
     notes, net as of March 31, 2017
     and carrying amounts of bank loan
     and convertible notes, net as of
     March 31, 2016.

About China Cord Blood Corporation

China Cord Blood Corporation is the first and largest umbilical cord blood banking operator in China in terms of geographical coverage and the only cord blood banking operator with multiple licenses. Under current PRC government regulations, only one licensed cord blood banking operator is permitted to operate in each licensed region and no new licenses will be granted before 2020 in addition to the seven licenses authorized as of today. China Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing, and stem cell storage services. For more information, please visit our website at http://www.chinacordbloodcorp.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company's future financial performance. The Company has attempted to identify forward-looking statements by terminology including "anticipates", "believes", "expects", "can", "continue", "could", "estimates", "intends", "may", "plans", "potential", "predict", "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions, uncertainties and other factors may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this press release is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this press release is issued, and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to conform these statements to actual results, unless required by law.

The forward-looking statements included in this press release are subject to risks, uncertainties and assumptions about the Company's businesses and business environments. These statements reflect the Company's current views with respect to future events and are not a guarantee of future performance. Actual results of the Company's operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include, among other things: continued compliance with government regulations regarding cord blood banking in the People's Republic of China, or PRC and any other jurisdiction in which the Company conducts its operations; changing legislation or regulatory environments (including the relaxation of China's one-child policy) in the PRC and any other jurisdiction in which the Company conducts its operations; the acceptance by subscribers of the Company's different pricing and payment options and reaction to the introduction of the Company's premium-quality pricing strategy; demographic trends in the regions of the PRC in which the Company is the exclusive licensed cord blood banking operator; labor and personnel relations; the existence of a significant shareholder able to influence and direct the corporate policies of the Company; credit risks affecting the Company's revenue and profitability; changes in the healthcare industry, including those which may result in the use of stem cell therapies becoming redundant or obsolete; the Company's ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; the availability of capital resources, including in the form of capital markets financing opportunities, in light of industry developments affecting issuers that have pursued a "reverse merger" with an operating company based in China, as well as general economic conditions; the proposed transactions between an affiliate of Golden Meditech and NJYP; and other relevant risks detailed in the Company's filings with the Securities and Exchange Commission in the United States.

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars as of and for the periods ending March 31, 2017 were made at the noon buying rate of RMB6.8832 to $1.00 on March 31, 2017 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. China Cord Blood Corporation makes no representation that the Renminbi or U.S. dollar amounts referred to in this press release could have been or could be converted into U.S. dollars or Renminbi, at any particular rate or at all.

For more information, please contact:

China Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@chinacordbloodcorp.com

ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: William.zima@icrinc.com


    EXHIBIT 1

                                                                        CHINA CORD BLOOD CORPORATION

                                                               UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                        As of March 31, 2016 and 2017


                                                                                                                      March 31,                 March 31,

                                                                                                                                    2016                       2017
                                                                                                                                    ----                       ----

                                                                                                                         RMB                       RMB              US$

                                                                                                               (in thousands except share data)


    ASSETS

    Current assets

    Cash and cash equivalents                                                                                                  3,008,422                  3,510,264      509,976

    Accounts receivable, less allowance for                                                                                      124,645                    112,533       16,349
    doubtful accounts (March 31, 2016:
    RMB38,261; March 31, 2017: RMB46,858
    (US$6,808))

    Inventories                                                                                                                   28,326                     30,987        4,502

    Prepaid expenses and other receivables                                                                                        24,412                     17,524        2,546
                                                                                                                                  ------                     ------        -----

    Total current assets                                                                                                       3,185,805                  3,671,308      533,373

    Property, plant and equipment, net                                                                                           574,567                    551,434       80,113

    Non-current deposits                                                                                                         218,379                    237,487       34,502

    Non-current accounts receivable, less                                                                                        165,011                    135,148       19,634
      allowance for doubtful accounts
     (March 31, 2016: RMB62,633;
      March 31, 2017: RMB70,744 (US$10,278))

    Inventories                                                                                                                   64,322                     68,775        9,992

    Intangible assets, net                                                                                                       111,307                    106,686       15,499

    Available-for-sale equity securities                                                                                         162,734                    200,790       29,171

    Other investment                                                                                                             189,129                    189,129       27,477

    Deferred tax assets                                                                                                           16,673                     22,155        3,219
                                                                                                                                  ------                     ------        -----

    Total assets                                                                                                               4,687,927                  5,182,912      752,980
                                                                                                                               =========                  =========      =======


    LIABILITIES

    Current liabilities

    Bank loan                                                                                                                     60,000                          -           -

    Convertible notes, net                                                                                                             -                 1,031,154      149,807

    Accounts payable                                                                                                              13,248                     11,060        1,607

    Accrued expenses and other payables                                                                                           61,304                     65,162        9,467

    Deferred revenue                                                                                                             257,692                    323,690       47,026

    Amounts due to related parties                                                                                                53,255                      4,679          680

    Income tax payable                                                                                                             8,524                     11,383        1,654
                                                                                                                                   -----                     ------        -----

    Total current liabilities                                                                                                    454,023                  1,447,128      210,241

    Convertible notes, net                                                                                                       906,222                          -           -

    Non-current deferred revenue                                                                                               1,321,239                  1,569,579      228,030

    Other non-current liabilities                                                                                                255,932                    302,233       43,909

    Deferred tax liabilities                                                                                                      37,086                     21,423        3,112
                                                                                                                                  ------                     ------        -----

    Total liabilities                                                                                                          2,974,502                  3,340,363      485,292
                                                                                                                               ---------                  ---------      -------


    EQUITY

    Shareholders' equity of China Cord Blood Corporation

    Ordinary shares

    - US$0.0001 par value, 250,000,000 shares authorized,                                                                             50                         50            7
    73,140,147 shares issued and 73,003,248 shares outstanding
    as of March 31, 2016 and 2017, respectively

    Additional paid-in capital                                                                                                   873,654                    936,417      136,044

    Treasury stock, at cost

    (March 31, 2016 and 2017: 136,899 shares,                                                                                    (2,815)                   (2,815)       (409)

    respectively)

    Accumulated other comprehensive income                                                                                        84,779                     24,428        3,549

    Retained earnings                                                                                                            753,585                    879,775      127,815
                                                                                                                                 -------                    -------      -------

    Total equity attributable to China Cord Blood Corporation                                                                  1,709,253                  1,837,855      267,006

    Non-controlling interests                                                                                                      4,172                      4,694          682
                                                                                                                                   -----                      -----          ---

    Total equity                                                                                                               1,713,425                  1,842,549      267,688
                                                                                                                               ---------                  ---------      -------

    Total liabilities and equity                                                                                               4,687,927                  5,182,912      752,980
                                                                                                                               =========                  =========      =======


    EXHIBIT 2


                                                                                                                 CHINA CORD BLOOD CORPORATION

                                                                                              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

                                                                                                  For the Three Months and Year ended March 31, 2016 and 2017



                                Three months ended March 31,           Year ended March 31,
                                ----------------------------           --------------------

                                                                                    2016                                      2017                                   2016             2017
                                                                                                                             ----                                                   ----

                                                                           RMB                                     RMB                                    US$             RMB              RMB               US$

                                                                                  (in thousands except per share data)


    Revenues                                                                     156,778                                   201,998                                 29,347          662,999           759,978           110,411

    Direct costs                                                                (34,594)                                 (41,019)                               (5,959)       (144,598)        (142,640)         (20,723)
                                                                                 -------                                   -------                                 ------         --------          --------           -------

    Gross profit                                                                 122,184                                   160,979                                 23,388          518,401           617,338            89,688

    Operating (expenses)/income

    Research and development                                                     (2,277)                                  (3,151)                                 (458)         (8,964)         (10,367)          (1,506)

    Sales and marketing                                                         (37,221)                                 (53,683)                               (7,799)       (148,155)        (178,482)         (25,930)

    General and administrative                                                  (43,015)                                 (47,829)                               (6,949)       (169,952)        (189,940)         (27,595)

    Other operating income                                                             -                                        -                                     -               -           26,316             3,823
                                                                                     ---                                      ---                                   ---             ---           ------             -----

    Total operating expenses, net                                               (82,513)                                (104,663)                              (15,206)       (327,071)        (352,473)         (51,208)
                                                                                 -------                                  --------                                -------         --------          --------           -------

    Operating income                                                              39,671                                    56,316                                  8,182          191,330           264,865            38,480
                                                                                  ------                                    ------                                  -----          -------           -------            ------

    Other expenses, net

    Interest income                                                                4,451                                     4,394                                    638           18,218            17,416             2,530

    Interest expense                                                            (27,991)                                 (30,190)                               (4,386)       (107,967)        (119,418)         (17,349)

    Foreign currency                                                                (13)                                    (158)                                  (23)           (972)             (38)              (6)
    exchange losses

    Dividend income                                                                    -                                        -                                     -          49,198                45                 7

                                                                                       -                                        -                                     -         (8,361)          (2,533)            (368)



    Impairment loss on

    available-for-sale equity

    securities

    Others                                                                           503                                     4,875                                    708            (113)            5,974               868
                                                                                     ---                                     -----                                    ---             ----             -----               ---

    Total other expenses, net                                                   (23,050)                                 (21,079)                               (3,063)        (49,997)         (98,554)         (14,318)
                                                                                 -------                                   -------                                 ------          -------           -------           -------

    Income before income tax                                                      16,621                                    35,237                                  5,119          141,333           166,311            24,162

    Income tax (expense)/benefit                                                 (8,590)                                    3,885                                    564         (50,000)         (37,622)          (5,466)
                                                                                  ------                                     -----                                    ---          -------           -------            ------

    Net income                                                                     8,031                                    39,122                                  5,683           91,333           128,689            18,696

    Net loss/(income) attributable to

    non-controlling interests                                                        213                                   (1,182)                                 (172)           (363)          (2,499)            (363)
                                                                                     ---                                    ------                                   ----             ----            ------              ----

    Net income attributable to  

      China Cord Blood 

      Corporation's
     shareholders

                                                                                   8,244                                    37,940                                  5,511           90,970           126,190            18,333
                                                                                   =====                                    ======                                  =====           ======           =======            ======


    Earnings per share:

    Attributable to ordinary shares

    -   Basic                                                                       0.18                                      0.45                                   0.07             1.25              1.59              0.23
                                                                                    ====                                      ====                                   ====             ====              ====              ====

    -   Diluted                                                                     0.18                                      0.45                                   0.07             1.25              1.59              0.23
                                                                                    ====                                      ====                                   ====             ====              ====              ====



    Other comprehensive
    (losses)/income, net of nil
    income taxes


    - Foreign currency translation                                                 2,476                                     5,565                                    808         (19,124)         (22,309)          (3,241)
    adjustment

    -   Unrealized holding (loss)/gain

    in available-for-sale equity

    securities

      - Unrealized holding
     (loss)/gain arising
    during the period/year                                                       (8,372)                                   14,519                                  2,109           32,312          (40,575)          (5,895)



      - Reclassification adjustment
    for loss included in
    net income                                                                         -                                        -                                     -           8,361             2,533               368
                                                                                     ---                                      ---                                   ---           -----             -----               ---

     Total other comprehensive                                                   (5,896)                                   20,084                                  2,917           21,549          (60,351)          (8,768)
    (losses)/income


    Comprehensive income                                                           2,135                                    59,206                                  8,600          112,882            68,338             9,928
                                                                                   =====                                    ======                                  =====          =======            ======             =====


    Comprehensive loss/(income)
      attributable to non-controlling
                                                                                     213                                   (1,182)                                 (172)           (363)          (2,499)            (363)
      interests


    Comprehensive income  

      attributable to China Cord 

      Blood
     Corporation's
      shareholders                                                  2,348

                                                                                                                           58,024                                  8,428          112,519            65,839             9,565
                                                                                                                           ======                                  =====          =======            ======             =====


    EXHIBIT 3


                                                                                                                                    CHINA CORD BLOOD CORPORATION

                                                                                                                             RECONCILIATION OF NON-GAAP OPERATING INCOME

                                                                                                                     For the Three Months and Year ended March 31, 2016 and 2017



                               Three months ended March 31,                                    Year ended March 31,
                               ----------------------------                                    --------------------

                                                                                                             2016                                 2017                             2016        2017
                                                                                                             ----                                 ----                             ----        ----

                                                                                                    RMB                                 RMB                                  US$        RMB         RMB         US$

                                                                                                                   (in thousands)




    GAAP amount of operating                                                                               39,671                               56,316                            8,182     191,330     264,865     38,480
      income


    Depreciation and amortization                                                                          12,398                               12,644                            1,837      50,166      50,481      7,334
      expenses7


    Share-based compensation                                                                               15,050                               15,705                            2,282      58,684      62,241      9,042
      expense8


    Non-GAAP operating income                                                                              67,119                               84,665                           12,301     300,180     377,587     54,856
                                                                                                           ======                               ======                           ======     =======     =======     ======


    7Depreciation and amortization expenses relate to property, plant and equipment and intangible assets respectively.


    8Share-based compensation expense relates to the Company's RSU scheme in which 7,300,000 RSUs were granted to certain
    executives, directors and key employees during the quarter ended December 31, 2014. Out of 7,300,000 RSUs granted, 7,080,000
    Shares were then issued and deposited into a Trust.

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SOURCE China Cord Blood Corporation