Global Cord Blood Corporation Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2019
Added 22,194 New Subscribers in 4Q19
4Q19 Revenues Increased by 8.0% YoY to RMB251.7 Million ($37.5 Million)
4Q19 Operating Income Increased to RMB88.9 Million ($13.2 Million)
Conference Call to be Held on June 19, 2019 at 8:00 a.m. ET
HONG KONG, June 18, 2019 /PRNewswire/ -- 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([1]).
-- 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")([2]) 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([3]) ("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([1]).
-- 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([2]) 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 ($118.0
million).
"During fiscal 2019, the total newborn number in China and in the markets we operate decreased. Despite the market condition, we managed to recruit over 89,000 new subscribers, hitting the upper bound of our fiscal 2019 target. The management team is glad with our achievements," said Ms. Ting Zheng, Chairperson and Chief Executive Officer of GCBC.
"We expect volume contributions from our three markets to remain in their respective trends, and we maintain caution regarding near-term volumes. We believe that our new pricing will absorb some rising cost pressures and bridge the revenue gap while better reflecting the Company's market position. As we continue to re-examine our capital on hand, business position, core competencies, and strategy, we also remain alert to the possible changes ahead together with available opportunities. With the solid foundation set forth by our PRC cord blood banking business, we continue our commitment towards enhancing service quality, customer experience, and taking a pro-active approach to expand our business scope and service offerings in order to take the Company to the next phase," Ms. Zheng concluded.
Summary - Fourth
Q
uarter and Full
Y
ear Ended March 31, 2018 and 2019
Three Months Ended March 31,
Year Ended March 31,
2018 2019 2018 2019
(In thousands)
RMB
RMB
US$
RMB
RMB
US$
Revenues 232,981 251,651 37,497 936,768 986,754 147,031
Gross Profit 188,750 204,276 30,438 755,285 800,727 119,312
Operating Income [4] 42,194 88,854 13,239 279,863 381,657 56,869
Change in Fair Value of
Equity Securities[3] - 11,526 1,717 (57,125) (8,512)
Net Income Attributable to
the Company's
Shareholders 30,514 91,108 13,574 237,098 291,124 43,380
Earnings per Share
- Basic (RMB/US$) 0.27 0.74 0.11 2.10 2.40 0.36
- Diluted (RMB/US$) 0.25 0.74 0.11 1.99 2.40 0.36
Revenues Breakdown (%)
Processing Fees and 63.2% 59.1% 65.3% 60.9%
Other Services
Storage Fees 36.8% 40.9% 34.7% 39.1%
New Subscribers (persons) 21,390 22,194 91,789 89,366
Total Accumulated Subscribers 661,618
750,273[1] 661,618
750,273[1]
(persons)
Summary - Selected Cash Flow Statement Items
Three Months Ended March 31, Year
Ended March 31,
2018 2019 2018 2019
(In thousands) RMB RMB US$ RMB RMB US$
Net cash provided by 194,350 221,495 33,005 818,762 792,118 118,031
operating activities
Net cash used in (19,118) (508) (76) (66,477) (30,210) (4,502)
investing activities
Net cash used in (3,019) (450) (2,015) (21,192) (3,158)
financing activities
Fourth Quarter of Fiscal 2019 Financial Results
REVENUES. Revenues in the fourth quarter of fiscal 2019 increased by 8.0% YoY to RMB251.7 million ($37.5 million). The growth was mainly driven by the expansion of the subscriber base.
The Company's accumulated subscriber base reached 750,273([1]) by the end of March 2019, and revenues generated from storage fees increased by 20.0% YoY to RMB103.0 million ($15.3 million). Storage fees accounted for 40.9% of the total revenues, up from 36.8 % in the prior year period.
During the reporting quarter, we recorded 22,194 new subscribers. Revenues generated from processing fees and other services in the fourth quarter increased to RMB148.7 million ($22.2 million) from RMB147.2 million in the prior year period. As a percentage of revenues, revenues generated from processing fees accounted for 59.1% compared to 63.2 % in the prior year period.
GROSS PROFIT. Gross profit for the fourth quarter of fiscal 2019 increased by 8.2% YoY to RMB204.3 million ($30.4 million). A better revenue mix was partially offset by noticeable increases in raw material and labor costs, resulting in gross margin slightly increasing to 81.2% during the quarter from 81.0% in the prior year period.
OPERATING INCOME and NON-GAAP OPEARTING INCOME([2]). Fourth quarter operating income increased significantly to RMB88.9 million ($13.2 million) from RMB42.2 million in the prior year period. Despite higher sales and marketing expenses, operating income improved due to the absence of share-based compensation expenses related to the Company's RSUs scheme, of which the shares were fully vested in the prior year period. Depreciation and amortization expenses for the reporting quarter was RMB13.1 million ($2.0 million) compared to RMB12.8 million in prior year period. Fourth quarter non-GAAP operating income([2]) was RMB101.9 million ($15.2 million) compared to RMB102.9 million in the prior year period. Non-GAAP operating margin was 40.5% compared to 44.2% in the same period of last year.
Sales and Marketing Expenses. Although no share-based compensation expense was recorded in the fourth quarter, sales and marketing expenses for the fourth quarter was up 12.8% YoY to RMB67.3 million ($10.0 million). Both higher staff renumeration expenses and increased promotional activities contributed to the increase in sales and marketing expenses. While the decline in newborn numbers within the addressable markets was unfavorable, the Company believes it was necessary and remains devoted to raising public awareness and driving public interest towards the potential medical benefits of umbilical cord blood banking. As a percentage of revenues, sales and marketing expenses increased moderately from 25.6% in the prior year period to 26.7% in the reporting period.
General and Administrative Expenses. General and administrative expenses for the fourth quarter dropped to RMB43.5 million ($6.5 million) from RMB83.5 million in the prior year period. Such decrease was mainly due to the absence of share-based compensation expense related to the vesting of all outstanding RSUs. On a quarter over quarter basis, general administrative expense edged down 3% as the Company continued to closely monitor its administrative cost structure.
OTHER INCOME AND EXPENSES.
Change in Fair Value of Equity Securities. In the reporting quarter, the Company recognized an increase in fair value of equity securities, or "mark-to-market gains", of RMB11.5 million ($1.7 million) as other income under the new accounting standard([3]). Such increase was mainly attributable to the investments in Cordlife Group Limited ("Cordlife").
NET INCOME ATTRIBUTABLE TO THE COMPANY'S SHAREHOLDERS. As a result of the increase in operating income as well as the recognition of an increase in fair value of equity securities through net income, net income attributable to the Company's shareholders for the reporting period nearly tripled to RMB91.1 million ($13.6 million) from RMB30.5 million in the prior year period. Net margin for the fourth quarter of fiscal 2019 improved to 36.2% from 13.1% in the prior year period.
EARNINGS PER SHARE. Basic and diluted earnings per ordinary share for the fourth quarter of fiscal 2019 improved to RMB0.74 ($0.11).
Full Year Fiscal 2019 Financial Results
For the full year fiscal 2019, total revenues increased by 5.3% YoY to RMB986.8 million ($147.0 million). The increase was mainly attributable to the growth in storage fee revenues as the Company's enlarged subscriber base reached 750,273([1]) as of March 31, 2019. Gross profit increased by 6.0% YoY to RMB800.7 million ($119.3 million). Operating income increased by 36.4% YoY to RMB381.7 million ($56.9 million), mainly due to the absence of share-based compensation expense. Non-GAAP operating income([2]) improved by 4.7% YoY to RMB434.0 million ($64.7 million). Decrease in fair value of equity securities during fiscal 2019 was RMB57.1 million ($8.5 million) and was recorded as other expense following the adoption of a new accounting standard([3]), whereas RMB29.6 million of such decrease was recorded as other comprehensive losses in the previous fiscal year. Net income attributable to the Company's shareholders increased by 22.8% to RMB291.1 million ($43.4 million), resulting from increased operating income, which was partially offset by the decrease in fair value of equity securities. Basic and diluted earnings per ordinary share were RMB2.40 ($0.36). Net cash provided by operating activities in the full year of fiscal 2019 was RMB792.1 million ($118.0 million) compared to RMB818.8 million in the prior year period.
Recent Developments
-- On June 4, 2019, the board of directors of the Company (the "Board")
received a non-binding proposal letter from Cordlife, a company listed
on the Mainboard of the Singapore Exchange Securities Trading Limited
("SGX"), pursuant to which Cordlife proposes to combine the businesses
of Cordlife and the Company, by way of a statutory merger. According to
the letter, Cordlife would issue approximately 2,497.9 million ordinary
shares at an issue price of SGD0.5 per ordinary share in exchange for
all of the outstanding ordinary shares of the Company at $7.50 per
ordinary share. Upon completion of the proposed transaction, the
Company's ordinary shares will be delisted from the New York Stock
Exchange and the Cordlife ordinary shares will continue to trade on SGX.
-- On June 5, 2019, the Board formed a special committee of independent
directors (the "Special Committee") who are not affiliated with Cordlife
to evaluate such proposal. The Special Committee intends to retain
advisors, including an independent financial advisor and U.S. and Cayman
Islands legal counsels, to assist it in its work.
-- The Company cautions its shareholders and others considering trading its
ordinary shares that no decisions have been made with respect to the
Company's response to the proposed transaction. The proposed transaction
is still subject to various conditions, including but not limited to,
completion of due diligence, parties entering into definitive agreement,
and/or each of Cordlife and the Company obtaining its relevant
regulatory and shareholders approval. There can be no assurance that any
definitive offer will be made, that any agreement will be executed or
that this or any other transaction will be approved or consummated.
__________________
[1] During the three months and year ended March 31,
2019, 22,194 and 89,366 new subscribers were
recruited, respectively. The Company reclassified
200 and 711 private cord blood units as donated
cord blood units during the three months and year
ended March 31, 2019, respectively, after the
Company determined that the recoverability of these
prior private cord blood banking subscribers was
remote. Therefore, the Company terminated their
subscription services according to the subscription
contracts and 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 750,273 as
of March 31, 2019.
[2] See exhibit 3 to this press release for a
reconciliation of non-GAAP operating income to
exclude the non-cash items related to the
depreciation and amortization and share-based
compensation expense to the comparable financial
measure prepared in accordance with U.S. generally
accepted accounting principles ("U.S. GAAP"). The
share-based compensation expense for the three
months and year ended March 31, 2019 was nil.
[3] Change in fair value of equity securities was
recognized as other income/expenses instead of
other comprehensive income/losses as practiced
previously because of the adoption of Accounting
Standards Update No. 2016-01 from April 1, 2018.
During the three months ended March 31, 2018 and
2019, there were a decrease in fair value of RMB2.5
million and an increase of fair value of RMB11.5
million ($1.7 million) of equity securities,
respectively. During the years ended March 31, 2018
and 2019, there were a decrease in fair value of
equity securities of RMB29.6 million and RMB57.1
million ($8.5 million), respectively.
[4] The reported operating income for the three
months and years ended March 31, 2018 and 2019
included the following:
(i) Depreciation and amortization expenses for the
three months ended March 31, 2018 and 2019 were
RMB12.8 million and RMB13.1 million ($2.0 million).
Depreciation and amortization expenses for the
years ended March 31, 2018 and 2019 were RMB50.6
million and RMB52.4 million ($7.8 million); and
(ii) For the three months and year ended March 31,
2018, share-based compensation expenses related to
the Company's RSUs scheme were RMB47.9 million and
RMB84.3 million, respectively, whereas no such
expense was recorded in the current quarter and
current year since all outstanding RSUs were fully
vested in the quarter ended March 31, 2018.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on Wednesday, June 19, 2019, 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.globalcordbloodcorp.com. A replay of the webcast will be accessible two hours after the conference call and available for seven days at the same URL link above. Listeners can also access the call by dialing 1-646-722-4977 or 1-855-824-5644 for US callers, or +852-3027-6500 for Hong Kong callers, access code: 72488018#.
Use of Non-GAAP Financial Measures
GAAP results for the three months and year ended March 31, 2019 include non-cash items related to depreciation and amortization 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 from 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.
About Global Cord Blood Corporation
Global 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. Global 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.globalcordbloodcorp.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 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 maintaining 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, the presence of a new majority shareholder, international pressure on trade and currency against the PRC and its potential impact on the PRC consumer behavior, as well as general economic conditions; the non-binding proposal letter from Cordlife 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 ended March 31, 2019 were made at the noon buying rate of RMB6.7112 to $1.00 on March 29, 2019 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. Global Cord Blood Corporation makes no representation that the Renminbi or U.S. dollar amounts referred to in this press release could have been or could be converted into U.S. dollars or Renminbi, at any particular rate or at all.
For more information, please contact:
Global Cord Blood Corporation
Investor Relations Department
Tel: (+852) 3605-8180
Email: ir@globalcordbloodcorp.com
ICR, Inc.
Mr. William Zima
Tel: (+86) 10-6583-7511
U.S. Tel: (646) 405-5185
Email: william.zima@icrinc.com
EXHIBIT 1
GLOBAL CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2018 and 2019
March 31, March 31,
2018 2019
RMB
RMB US$
(in thousands except share data)
ASSETS
Current assets
Cash and cash equivalents 4,250,610 4,997,861 744,706
Accounts receivable, less allowance for
doubtful accounts (March 31, 2018:
RMB58,227; March 31, 2019: RMB89,634
(US$13,356)) 107,818 96,923 14,442
Inventories 27,718 27,612 4,114
Prepaid expenses and other receivables 22,276 25,532 3,805
Total current assets 4,408,422 5,147,928 767,067
Property, plant and equipment, net 552,960 545,340 81,258
Non-current deposits 233,115 236,719 35,272
Non-current accounts receivable, less
allowance for doubtful accounts
(March 31, 2018: RMB69,713;
March 31, 2019: RMB74,800 (US$11,146)) 101,809 104,857 15,624
Inventories 71,758 77,194 11,502
Intangible assets, net 102,065 97,444 14,520
Investment in equity securities 153,882 107,362 15,997
Other investment 189,129 189,129 28,181
Deferred tax assets 31,295 44,981 6,702
Total assets 5,844,435 6,550,954 976,123
LIABILITIES
Current liabilities
Accounts payable 11,372 33,566 5,001
Accrued expenses and other payables 73,023 79,977 11,918
Deferred revenue 366,373 461,986 68,838
Income tax payable 17,407 20,113 2,997
Total current liabilities 468,175 595,642 88,754
Non-current deferred revenue 1,874,014 2,108,442 314,168
Other non-current liabilities 362,876 404,482 60,270
Deferred tax liabilities 20,628 19,626 2,924
Total liabilities 2,725,693 3,128,192 466,116
EQUITY
Shareholders' equity of Global Cord Blood Corporation
Ordinary shares
- US$0.0001 par value, 250,000,000 shares authorized,
120,961,641 and 120,824,742 shares issued and outstanding
as of March 31, 2018 and 121,687,974 and 121,551,075 shares
issued and outstanding as of March 31, 2019 83 83 12
Additional paid-in capital 2,053,866 2,101,582 313,145
Treasury stock, at cost (March 31, 2018 and 2019: 136,899
shares, respectively) (2,815) (2,815) (419)
Accumulated other comprehensive losses (54,654) (88,738) (13,223)
Retained earnings 1,116,873 1,407,223 209,683
Total equity attributable to Global Cord Blood Corporation 3,113,353 3,417,335 509,198
Non-controlling interests 5,389 5,427 809
Total equity 3,118,742 3,422,762 510,007
Total liabilities and equity 5,844,435 6,550,954 976,123
EXHIBIT 2
GLOBAL CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months and Year ended March 31, 2018 and 2019
Three months ended March 31, Year ended March 31,
2018 2019 2018 2019
RMB RMB US$ RMB RMB US$
(in thousands except per share data)
Revenues 232,981 251,651 37,497 936,768 986,754 147,031
Direct costs (44,231) (47,375) (7,059) (181,483) (186,027) (27,719)
Gross profit 188,750 204,276 30,438 755,285 800,727 119,312
Operating expenses
Research and development (3,445) (4,635) (691) (12,718) (14,688) (2,189)
Sales and marketing (59,653) (67,301) (10,028) (219,202) (235,062) (35,025)
General and administrative (83,458) (43,486) (6,480) (243,502) (169,320) (25,229)
Total operating expenses (146,556) (115,422) (17,199) (475,422) (419,070) (62,443)
Operating income 42,194 88,854 13,239 279,863 381,657 56,869
Other income/(expenses), net
Interest income 5,903 6,049 901 21,936 25,320 3,773
Interest expense (3,257)
Foreign currency
exchange gains/(losses) 15 15 2 133 (62) (9)
Change in fair value of
equity securities 11,526 1,717 (57,125) (8,512)
Dividend income 634 976 145
Others 679 2,711 404 4,226 5,695 849
Total other income/(expenses),
net 6,597 20,301 3,024 23,672 (25,196) (3,754)
Income before income tax 48,791 109,155 16,263 303,535 356,461 53,115
Income tax expense (16,771) (16,405) (2,444) (62,656) (61,260) (9,128)
Net income 32,020 92,750 13,819 240,879 295,201 43,987
Net income attributable to
non-controlling interests (1,506) (1,642) (245) (3,781) (4,077) (607)
Net income attributable to
Global Cord Blood
Corporation's
shareholders 30,514 91,108 13,574 237,098 291,124 43,380
Earnings per share:
Attributable to ordinary shares
- Basic 0.27 0.74 0.11 2.10 2.40 0.36
- Diluted 0.25 0.74 0.11 1.99 2.40 0.36
Other comprehensive
(losses)/income, net of nil
income taxes
- Foreign currency translation
adjustment (16,562) (10,073) (1,501) (49,630) 28,232 4,207
- Unrealized holding losses
in available-for-sale equity
securities
- Unrealized holding losses
in available-for-sale equity
securities (2,515) (29,619)
- Reclassification adjustment
for losses included in net
income 167 167
Total other comprehensive
(losses)/income (18,910) (10,073) (1,501) (79,082) 28,232 4,207
Comprehensive income 13,110 82,677 12,318 161,797 323,433 48,194
Comprehensive income
attributable to non-controlling
interests (1,506) (1,642) (245) (3,781) (4,077) (607)
Comprehensive income
attributable to Global Cord
Blood Corporation's
shareholders 11,604 81,035 12,073 158,016 319,356 47,587
EXHIBIT 3
GLOBAL CORD BLOOD CORPORATION
RECONCILIATION OF NON-GAAP OPERATING INCOME
For the Three Months and Year ended March 31, 2018 and 2019
Three months ended March 31, Year ended March 31,
2018 2019 2018 2019
RMB RMB US$ RMB RMB US$
(in thousands)
GAAP amount of operating
income 42,194 88,854 13,239 279,863 381,657 56,869
Depreciation and
amortization
expenses[5] 12,824 13,091 1,951 50,590 52,365 7,803
Share-based compensation
expense[6] 47,889 84,268
Non-GAAP operating income 102,907 101,945 15,190 414,721 434,022 64,672
______________________
[5] Depreciation and amortization expenses relate to property, plant and equipment and intangible assets, respectively.
[6] Share-based compensation expense relates to the Company's RSU scheme of which the shares were fully vested in the quarter ended March 31, 2018. Accordingly, there will be no share-based
compensation expense relating to those RSUs amortized in subsequent periods.
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SOURCE Global Cord Blood Corporation
