China Cord Blood Corporation Reports Financial Results for the Second Quarter and First Half of Fiscal 2018

HONG KONG, Nov. 20, 2017

Second Quarter of Fiscal 2018 Highlights

• Revenues for the second quarter of fiscal 2018 increased by 27.4% to RMB234.6 million ($35.3 million) from RMB184.1 million in the prior year period.
• New subscribers and accumulated subscriber base were 23,647 and 620,680¹, respectively.
• Gross profit increased by 30.2% to RMB188.9 million ($28.4 million) from RMB145.1 million in the prior year period.
• Gross margin increased to 80.5% from 78.8% in the prior year period.
• Operating income increased by 39.4% to RMB76.3 million ($11.5 million) from RMB54.7 million in the prior year period.
• Operating income before depreciation and amortization and share-based compensation expenses was RMB108.7 million ($16.3 million), up 31.2% from RMB82.9 million in the prior year period.²
• Net income attributable to the Company's shareholders improved to RMB67.6 million ($10.2 million) from RMB16.6 million in the prior year period as no interest expense was recorded during this quarter.
• Net cash provided by operating activities for the second quarter of fiscal 2018 increased to RMB215.3 million ($32.4 million) from RMB136.3 million in the prior year period.

First Half of Fiscal 2018 Highlights

• Revenues for the first half of fiscal 2018 increased by 28.5% to RMB458.8 million ($69.0 million) from RMB357.1 million in the prior year period.
• New subscriber sign-ups reached 46,170, and accumulated subscriber base expanded to 620,680^1.
• Gross profit increased by 31.3% to RMB368.4 million ($55.4 million) from RMB280.6 million in the prior year period.
• Operating income increased by 49.0% to RMB159.3 million ($23.9 million) from RMB106.9 million in the prior year period.
• Operating income before depreciation and amortization and share-based compensation expenses increased to RMB201.0 million ($30.2 million), or 23.6% year-over-year, from RMB162.6 million in the prior year period.²
• Net income attributable to the Company's shareholders increased materially to RMB136.7 million ($20.6 million) from RMB32.4 million in the prior year period.
• Net cash provided by operating activities for the first half of fiscal 2018 increased significantly to RMB441.7 million ($66.4 million) from RMB267.3 million in the prior year period.

"We are pleased with our growth in the second quarter, highlighted by the number of new subscribers reaching 23,647, which demonstrates the effectiveness of the tactics we adopted to fine-tune front line sales and nurture our markets. As the Guangdong division continues to display strong growth momentum, the Zhejiang market continues to ramp up and the Beijing market maintains a steady pace of growth, we are prudently optimistic about this year's prospect," said Ms. Ting Zheng, Chief Executive Officer of China Cord Blood Corporation. "While keeping our focus on the organic growth of our core business, we will also actively explore potential investment opportunities to build multiple revenue sources and boost profit growth as new challenges emerge to maintain our position as the industry leader."