Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2019shares | |
Document and Entity Information | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2019 |
Entity Registrant Name | Global Cord Blood Corp |
Entity Central Index Key | 0001467808 |
Current Fiscal Year End Date | --03-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Accelerated Filer |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 121,551,075 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Current assets | |||
Cash and cash equivalents | $ 744,706 | ¥ 4,997,861 | ¥ 4,250,610 |
Accounts receivable, less allowance for doubtful accounts (March 31, 2018: RMB58,227; March 31, 2019: RMB89,634 (US$13,356)) | 14,442 | 96,923 | 107,818 |
Inventories | 4,114 | 27,612 | 27,718 |
Prepaid expenses and other receivables | 3,805 | 25,532 | 22,276 |
Total current assets | 767,067 | 5,147,928 | 4,408,422 |
Property, plant and equipment, net | 81,258 | 545,340 | 552,960 |
Non-current deposits | 35,272 | 236,719 | 233,115 |
Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2018: RMB69,713; March 31, 2019: RMB74,800 (US$11,146)) | 15,624 | 104,857 | 101,809 |
Inventories | 11,502 | 77,194 | 71,758 |
Intangible assets, net | 14,520 | 97,444 | 102,065 |
Investments in equity securities at fair value | 15,997 | 107,362 | 153,882 |
Other equity investment | 28,181 | 189,129 | 189,129 |
Deferred tax assets | 6,702 | 44,981 | 31,295 |
Total assets | 976,123 | 6,550,954 | 5,844,435 |
Current liabilities | |||
Accounts payable | 5,001 | 33,566 | 11,372 |
Accrued expenses and other payables | 11,918 | 79,977 | 73,023 |
Deferred revenue | 68,838 | 461,986 | 366,373 |
Income tax payable | 2,997 | 20,113 | 17,407 |
Total current liabilities | 88,754 | 595,642 | 468,175 |
Non-current deferred revenue | 314,168 | 2,108,442 | 1,874,014 |
Other non-current liabilities | 60,270 | 404,482 | 362,876 |
Deferred tax liabilities | 2,924 | 19,626 | 20,628 |
Total liabilities | 466,116 | 3,128,192 | 2,725,693 |
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 | 12 | 83 | 83 |
Additional paid-in capital | 313,145 | 2,101,582 | 2,053,866 |
Treasury stock, at cost (March 31, 2018 and 2019: 136,899 shares, respectively) | (419) | (2,815) | (2,815) |
Accumulated other comprehensive losses | (13,223) | (88,738) | (54,654) |
Retained earnings | 209,683 | 1,407,223 | 1,116,873 |
Total equity attributable to Global Cord Blood Corporation | 509,198 | 3,417,335 | 3,113,353 |
Non-controlling interests | 809 | 5,427 | 5,389 |
Total equity | 510,007 | 3,422,762 | 3,118,742 |
Commitments and contingencies | |||
Total liabilities and equity | $ 976,123 | ¥ 6,550,954 | ¥ 5,844,435 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2019CNY (¥)shares | Mar. 31, 2018$ / shares | Mar. 31, 2018CNY (¥)shares |
Consolidated Balance Sheets | ||||
Accounts receivable, allowance for doubtful accounts | $ 13,356 | ¥ 89,634 | ¥ 58,227 | |
Non-current accounts receivable, allowance for doubtful accounts | $ 11,146 | ¥ 74,800 | ¥ 69,713 | |
Ordinary shares, par value per share | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 250,000,000 | 250,000,000 | 250,000,000 | |
Ordinary shares, shares issued | 121,687,974 | 121,687,974 | 120,961,641 | |
Ordinary shares, shares outstanding | 121,551,075 | 121,551,075 | 120,824,742 | |
Treasury stock, shares | 136,899 | 136,899 | 136,899 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($)$ / shares | Mar. 31, 2019CNY (¥)¥ / shares | Mar. 31, 2018CNY (¥)¥ / shares | Mar. 31, 2017CNY (¥)¥ / shares | |
Consolidated Statements of Comprehensive Income | ||||
Revenues | $ 147,031 | ¥ 986,754 | ¥ 936,768 | ¥ 759,978 |
Direct costs | (27,719) | (186,027) | (181,483) | (142,640) |
Gross profit | 119,312 | 800,727 | 755,285 | 617,338 |
Operating (expenses)/income, net | ||||
Research and development | (2,189) | (14,688) | (12,718) | (10,367) |
Sales and marketing | (35,025) | (235,062) | (219,202) | (178,482) |
General and administrative | (25,229) | (169,320) | (243,502) | (189,940) |
Other operating income from a related party | 26,316 | |||
Total operating expenses, net | (62,443) | (419,070) | (475,422) | (352,473) |
Operating income | 56,869 | 381,657 | 279,863 | 264,865 |
Other (expenses)/income, net | ||||
Interest income | 3,773 | 25,320 | 21,936 | 17,416 |
Interest expense | (3,257) | (119,418) | ||
Foreign currency exchange (losses)/gains | (9) | (62) | 133 | (38) |
Change in fair value of equity securities | (8,512) | (57,125) | ||
Dividend income | 145 | 976 | 634 | 45 |
Impairment loss on available-for-sale equity securities | 0 | 0 | (2,533) | |
Others | 849 | 5,695 | 4,226 | 5,974 |
Total other (expenses)/income, net | (3,754) | (25,196) | 23,672 | (98,554) |
Income before income tax | 53,115 | 356,461 | 303,535 | 166,311 |
Income tax expense | (9,128) | (61,260) | (62,656) | (37,622) |
Net income | 43,987 | 295,201 | 240,879 | 128,689 |
Net income attributable to non-controlling interests | (607) | (4,077) | (3,781) | (2,499) |
Net income attributable to Global Cord Blood Corporation's shareholders | $ 43,380 | ¥ 291,124 | ¥ 237,098 | ¥ 126,190 |
Earnings per share: | ||||
Basic | (per share) | $ 0.36 | ¥ 2.40 | ¥ 2.10 | ¥ 1.59 |
Diluted | (per share) | $ 0.36 | ¥ 2.40 | ¥ 1.99 | ¥ 1.59 |
Other comprehensive (losses)/income, net of nil income taxes | ||||
Foreign currency translation adjustments | $ 4,207 | ¥ 28,232 | ¥ (49,630) | ¥ (22,309) |
Unrealized holding losses arising during the year | (29,619) | (40,575) | ||
Reclassification adjustment for loss included in net income | 167 | 2,533 | ||
Total other comprehensive (losses)/income | 4,207 | 28,232 | (79,082) | (60,351) |
Comprehensive income | 48,194 | 323,433 | 161,797 | 68,338 |
Comprehensive income attributable to non-controlling interests | (607) | (4,077) | (3,781) | (2,499) |
Comprehensive income attributable to Global Cord Blood Corporation's shareholders | $ 47,587 | ¥ 319,356 | ¥ 158,016 | ¥ 65,839 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Other comprehensive losses | |||
Other comprehensive (losses)/income, income taxes | ¥ 0 | ¥ 0 | ¥ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity ¥ in Thousands, $ in Thousands | Share capitalUSD ($)shares | Share capitalCNY (¥)shares | Additional paid-in capitalUSD ($) | Additional paid-in capitalCNY (¥) | Treasury stockUSD ($)shares | Treasury stockCNY (¥)shares | Accumulated other comprehensive income/(losses)USD ($) | Accumulated other comprehensive income/(losses)CNY (¥) | Retained earningsUSD ($) | Retained earningsCNY (¥) | Non-controlling interestsUSD ($) | Non-controlling interestsCNY (¥) | USD ($)shares | CNY (¥)shares |
Balance at Mar. 31, 2016 | ¥ 50 | ¥ 873,654 | ¥ (2,815) | ¥ 84,779 | ¥ 753,585 | ¥ 4,172 | ¥ 1,713,425 | |||||||
Balance, shares at Mar. 31, 2016 | shares | 73,140,147 | 73,140,147 | (136,899) | (136,899) | ||||||||||
Net income | 126,190 | 2,499 | 128,689 | |||||||||||
Other comprehensive income | (60,351) | (60,351) | ||||||||||||
Share-based compensation | 62,763 | 62,763 | ||||||||||||
Dividend declared to holder of non-controlling interests | (1,977) | (1,977) | ||||||||||||
Balance at Mar. 31, 2017 | ¥ 50 | 936,417 | ¥ (2,815) | 24,428 | 879,775 | 4,694 | ¥ 1,842,549 | |||||||
Balance, shares at Mar. 31, 2017 | shares | 73,140,147 | 73,140,147 | (136,899) | (136,899) | 73,003,248 | 73,003,248 | ||||||||
Net income | 237,098 | 3,781 | ¥ 240,879 | |||||||||||
Other comprehensive income | (79,082) | (79,082) | ||||||||||||
Share-based compensation | 83,322 | 83,322 | ||||||||||||
Issuance of shares upon conversion of convertible notes | ¥ 28 | 1,034,132 | ¥ 1,034,160 | |||||||||||
Issuance of shares upon conversion of convertible notes (in shares) | shares | 40,521,494 | 40,521,494 | ||||||||||||
Vesting of restricted share units scheme | ¥ 5 | (5) | ||||||||||||
Vesting of restricted share units scheme (in shares) | shares | 7,300,000 | 7,300,000 | 7,300,000 | 7,300,000 | ||||||||||
Dividend declared to holder of non-controlling interests | (3,086) | ¥ (3,086) | ||||||||||||
Balance at Mar. 31, 2018 | ¥ 83 | 2,053,866 | ¥ (2,815) | (54,654) | 1,116,873 | 5,389 | ¥ 3,118,742 | |||||||
Balance, shares at Mar. 31, 2018 | shares | 120,961,641 | 120,961,641 | (136,899) | (136,899) | 120,824,742 | 120,824,742 | ||||||||
Cumulative effect of accounting change | ASU 2016-01 | $ (9,285) | (62,316) | $ 9,285 | 62,316 | ||||||||||
Cumulative effect of accounting change | $ | $ 62,316 | |||||||||||||
Net income | 291,124 | 4,077 | 43,987 | ¥ 295,201 | ||||||||||
Other comprehensive income | 28,232 | $ 4,207 | 28,232 | |||||||||||
Dividend declared and ordinary shares issued to the Company's shareholders | 47,716 | (63,090) | ¥ (15,374) | |||||||||||
Dividend declared and ordinary shares issued to the Company's shareholders (in shares) | shares | 726,333 | 726,333 | 726,333 | 726,333 | ||||||||||
Dividend declared to holder of non-controlling interests | (4,039) | ¥ (4,039) | ||||||||||||
Balance at Mar. 31, 2019 | $ 12 | ¥ 83 | $ 313,145 | ¥ 2,101,582 | $ (419) | ¥ (2,815) | $ (13,223) | ¥ (88,738) | $ 209,683 | ¥ 1,407,223 | $ 809 | ¥ 5,427 | $ 510,007 | ¥ 3,422,762 |
Balance, shares at Mar. 31, 2019 | shares | 121,687,974 | 121,687,974 | (136,899) | (136,899) | 121,551,075 | 121,551,075 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | $ 43,987 | ¥ 295,201 | ¥ 240,879 | ¥ 128,689 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
(Gain)/loss on disposal of property, plant and equipment | 67 | 451 | (828) | (223) |
Depreciation of property, plant and equipment | 7,114 | 47,744 | 45,969 | 45,860 |
Amortization of intangible assets | 689 | 4,621 | 4,621 | 4,621 |
Deferred income taxes | (2,189) | (14,688) | (9,935) | (21,145) |
Provision for doubtful accounts | 5,694 | 38,214 | 31,716 | 29,574 |
Interest on convertible notes | 1,023 | 59,528 | ||
Amortization of debt issuance costs | 690 | 3,947 | ||
Share-based compensation | 84,268 | 62,241 | ||
Change in fair value of equity securities | 8,512 | 57,125 | ||
Impairment loss on available-for-sale equity securities | 0 | 0 | 2,533 | |
Loss on disposal of available-for-sale equity securities | 167 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (4,524) | (30,367) | 6,338 | 12,401 |
Inventories | (793) | (5,330) | 286 | (7,114) |
Prepaid expenses and other receivables | (458) | (3,071) | (4,316) | 7,023 |
Non-current deposits | 9 | 12 | ||
Accounts payable | 3,307 | 22,194 | 312 | (991) |
Accrued expenses and other payables | 828 | 5,559 | 8,227 | (2,541) |
Deferred revenue | 49,178 | 330,041 | 347,118 | 314,338 |
Amounts due to related parties | (4,679) | (49,879) | ||
Income tax payable | 403 | 2,706 | 6,024 | 2,859 |
Other non-current liabilities | 6,216 | 41,718 | 60,873 | 45,899 |
Net cash provided by operating activities | 118,031 | 792,118 | 818,762 | 637,632 |
Investing activities: | ||||
Purchase of property, plant and equipment | (4,573) | (30,689) | (67,066) | (24,693) |
Proceeds from disposal of property, plant and equipment | 71 | 479 | 372 | 272 |
Acquisition of available-for-sale equity securities | (66,154) | |||
Proceeds from disposal of available-for-sale equity securities | 217 | |||
Net cash used in investing activities | (4,502) | (30,210) | (66,477) | (90,575) |
Financing activities: | ||||
Repayment of bank loan | (60,000) | |||
Payment for dividends to shareholders | (2,708) | (18,173) | ||
Payment for dividends to holder of non-controlling interests | (450) | (3,019) | (2,015) | |
Net cash used in financing activities | (3,158) | (21,192) | (2,015) | (60,000) |
Effect of foreign currency exchange rate change on cash and cash equivalents | 974 | 6,535 | (9,924) | 14,785 |
Net increase in cash and cash equivalents | 111,345 | 747,251 | 740,346 | 501,842 |
Cash and cash equivalents at beginning of year | 633,361 | 4,250,610 | 3,510,264 | 3,008,422 |
Cash and cash equivalents at end of year | 744,706 | 4,997,861 | 4,250,610 | 3,510,264 |
Non-cash investing activities: | ||||
Payable for property, plant and equipment | 572 | |||
Property, plant and equipment acquired by non-current deposits | 1,607 | 10,783 | ||
Non-cash financing activity: | ||||
Payable for dividends to holder of non-controlling interests | 152 | 1,020 | ||
Supplemental disclosures of cash flow information: | ||||
Cash paid during the year for income taxes | $ 10,913 | ¥ 73,242 | 66,567 | 57,506 |
Cash refund during the year for income taxes | 1,598 | |||
Cash paid for interest | ¥ 1,537 | ¥ 94,057 |
Principal activities, reorganiz
Principal activities, reorganization and reverse recapitalization, and basis of presentation | 12 Months Ended |
Mar. 31, 2019 | |
Principal activities, reorganization and reverse recapitalization, and basis of presentation | |
Principal activities, reorganization and reverse recapitalization, and basis of presentation | 1 Principal activities, reorganization and reverse recapitalization, and basis of presentation (a) Principal activities Global Cord Blood Corporation (the “Company”) and its subsidiaries (collectively the “Group”) are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China (the “PRC”). As of March 31, 2019, the Group has three operating cord blood banks, one in the Beijing municipality, one in the Guangdong province and one in the Zhejiang province, the PRC. The Company’s shares are listed on the New York Stock Exchange (the “NYSE”). The Group provides cord blood testing and processing services and storage services under the direction of subscribers for a cord blood processing fee and a storage fee. The Group also tests, processes and stores donated cord blood, and provides matching services to the public for a fee. The operation of cord blood banks in the PRC is regulated by certain laws and regulations. Due to the lack of a consistent and well-developed regulatory framework, operation in the cord blood banking industry in the PRC involves significant ambiguities, uncertainties and risks. The industry is highly regulated and any unilateral changes in regulations by the authorities may have a significant adverse impact on the Group’s results of operations. (b) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). This basis of accounting differs in certain material respects from that used for the preparation of the statutory books of the Company’s consolidated subsidiaries, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable in the place of domicile of the respective entities in the Group. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the statutory books of account of the Company’s consolidated subsidiaries to present them in conformity with U.S. GAAP. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Mar. 31, 2019 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2 Summary of significant accounting policies (a) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Company and its consolidated subsidiaries. For consolidated subsidiaries where the Company’s ownership is less than 100%, the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the Company, are presented as non-controlling interests. All significant intercompany balances and transactions have been eliminated on consolidation. (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the estimate of stand-alone selling price for each performance obligation in contracts with customers that contain more than one performance obligation, the estimated number of successful match units over the estimated weighted average remaining useful life of donated cord blood units, the useful lives of property, plant and equipment and intangible assets, the recoverability of property, plant and equipment and intangible assets, the collectibility of accounts receivables, the realizability of inventories and deferred tax assets and the fair values of share-based compensation. (c) Foreign currency transactions and translation The reporting currency of the Company is Renminbi (“RMB”). The functional currency of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou is the RMB and the functional currency of the Company is United States dollars (“US$”). The functional currencies of subsidiaries of the Company outside the PRC are either US$ or Hong Kong dollars. Transactions of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou denominated in currencies other than RMB are translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”) prevailing at the dates of the transactions. Monetary assets and liabilities of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou denominated in foreign currencies are translated into RMB using the applicable exchange rates quoted by the PBOC at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange (losses)/gains in the consolidated statements of comprehensive income. Transactions of the Company and subsidiaries outside the PRC denominated in currencies other than their functional currencies are translated into their functional currencies at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities of the Company and subsidiaries outside the PRC denominated in foreign currencies are translated into their functional currencies using the applicable exchange rates at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange (losses)/gains in the consolidated statements of comprehensive income. Assets and liabilities of the Company and subsidiaries outside the PRC are translated into RMB using the exchange rate at the balance sheet date. Revenues and expenses of the Company and subsidiaries outside the PRC are translated at the average exchange rates prevailing during the year. The adjustments resulting from translation of financial statements of the Company and subsidiaries outside the PRC are recorded as a separate component of accumulated other comprehensive income within shareholders’ equity. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the PBOC or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. For the convenience of the readers, certain amounts as of and for the year ended March 31, 2019 included in the accompanying consolidated financial statements have been translated into U.S. dollars at the rate of US$1.00 = RMB6.7112, being the spot exchange rate of U.S. dollars in effect on March 29, 2019 for cable transfers in RMB per U.S. dollar as certified for customs purposes by the Federal Reserve, the central bank of the United States of America. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at that rate or at any other rate on March 29, 2019 or at any other date. The U.S. dollars convenience translation is not required under U.S. GAAP. (d) Cash and cash equivalents Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Cash and cash equivalents of the Group are mainly maintained in the PRC and are denominated in several currencies. As of March 31, 2018 and 2019, cash and cash equivalents maintained in the PRC amounted to RMB4,175,205 and RMB4,951,352 (US$737,774), respectively. The Group’s cash and cash equivalents denominated in U.S. dollars, Australian dollars, Renminbi, Hong Kong dollars and Singapore dollars are as follows: March 31, 2018 2019 Original currency RMB Original currency RMB U.S. dollars 3,332 20,800 4,229 28,205 Australian dollars 1 5 4 17 Renminbi 4,175,223 4,175,223 4,951,377 4,951,377 Hong Kong dollars 67,439 53,964 19,431 16,614 Singapore dollars 129 618 333 1,648 Cash and cash equivalents held at financial institutions located in the PRC and Hong Kong are insured up to certain amount. Management believes that these major financial institutions have high credit ratings. (e) Investment securities Prior to the adoption of Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01") on April 1, 2018, management determines the appropriate classification of its investment securities at the time of purchase and re-evaluates such designations at each reporting date. Trading securities were recorded at fair value. Realized and unrealized holding gains and losses, net of the related tax effect, on trading securities are included in earnings. Available-for-sale equity securities were recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale equity securities were excluded from earnings and were reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale equity securities were determined on a specific-identification basis. Where the fair value of an investment in equity securities was not readily determinable, the investment was recorded at cost. A decline in the market value of available-for-sale securities that was deemed to be other-than-temporary resulted in an impairment to reduce the carrying amount to fair value. The impairment was charged to earnings and a new cost basis for the security was established. In determining whether an impairment was other-than-temporary, the Group considered whether it had the ability and intent to hold the investment until a market price recovery and considered whether evidence indicating the cost of the investment was recoverable outweighs evidence to the contrary. Evidence considered in this assessment included the reasons for the impairment, the severity and duration of the impairment, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Upon the adoption of ASU 2016-01 on April 1, 2018, equity securities with readily determinable fair value are measured at fair values, and any changes in fair value are recognized in earnings. Where the fair value of an investment in equity securities is not readily determinable, the Group recognizes such investment in other investment, and uses the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. For equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For equity investments without readily determinable fair value, at each reporting period, the Group makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. Impairment indicators that the Group considers include, but are not limited to, (i) the deterioration of earnings performance, credit rating, asset quality, or business prospects of the investee, (ii) a significant adverse change in the regulatory, economic, or technological environment of the investee, (iii) a significant adverse change in the general market condition of either the geographic area or the industry in which the investee operates. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment's fair value and if the fair value is less than the investment's carrying value, the Group recognizes an impairment loss in other expenses equal to the difference between the carrying value and fair value. Dividend income is recognized in other income when earned. (f) Accounts receivable Accounts receivable represent amounts due from subscribers for cord blood processing and storage services, which are recognized in accordance with the Group's revenue recognition policies (Note 2(k)). Installments receivable from subscribers which are due for repayment in over one year under the deferred payment option are classified as non-current accounts receivable. Accounts receivable are stated net of allowance for doubtful accounts. The allowance for doubtful accounts is the Group’s best estimate of losses in the Group’s accounts receivable, which is determined based on historical write-off experience, customer specific facts and economic conditions. The Group reviews its allowances for doubtful accounts quarterly. Outstanding account balances are reviewed on a pooled basis by ageing of such balances. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group’s PRC subsidiaries are required to comply with local tax requirements on the write-offs of doubtful accounts, which allow for such write-offs only when the related account balances are aged over three years and sufficient evidence is available to prove the debtor’s inability to make payments. For financial reporting purposes, the Group's PRC subsidiaries generally record write-offs of doubtful accounts at the same time the local tax requirements for the write-offs are met. As a result, there are generally time lags between the time when a provision for doubtful accounts is recorded and the time the doubtful accounts are written off against the related allowance. The Group does not have any off-balance-sheet credit exposure related to its customers. (g) Inventories The Group collects, tests, freezes and stores donated umbilical cord blood for future transplantation or research purposes in return for a fee. Collection, testing and processing costs attributable to the processing of donated umbilical cord blood are capitalized as inventories, stated at the lower of cost or net realizable value on a weighted-average basis, and recognized as direct costs when revenue is recognized. Cost comprises direct materials, direct labor and an allocation of production overheads. Inventories that are not expected to be realized within 12 months from the balance sheet date are classified as non-current assets. Consumables and supplies are included in inventories and classified as current assets. (h) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation on property, plant and equipment is calculated based on the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the assets as follows: Buildings 37.5 – 50 years Leasehold improvements Shorter of the lease term or estimated useful lives of 10 years Machineries 5 – 10 years Motor vehicles 5 years Furniture, fixtures and office equipment 3 – 5 years No depreciation expense is provided in respect of construction-in-progress. Depreciation of property, plant and equipment attributable to the processing of donated umbilical cord blood for future transplantation is capitalized as part of inventories, and is expensed to direct costs when revenue is recognized. (i) Intangible assets Intangible assets represent the operating rights to operate cord blood banks and are stated at the fair value on the date of acquisition less accumulated amortization. Where payment for an operating right is non-deductible for tax purpose, the simultaneous equations method is used to record the assigned value of the asset and the related deferred tax liability, such that the carrying amount of the asset upon initial recognition less deferred tax liability recognized equals the amount paid for the asset. Amortization expense is recognized on a straight-line basis over the estimated useful life of the operating rights of 30 years. (j) Impairment of long-lived assets Long-lived assets, including property, plant and equipment and intangible assets with finite useful lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flows models, quoted market values and third-party independent appraisals, as considered necessary. No impairment of long-lived assets was recognized for the years ended March 31, 2017, 2018 and 2019. (k) Revenue recognition The Group receives fees for collecting, testing, freezing and storing of cord blood units. Once the cord blood units are collected, tested, screened and successfully meet all of the required attributes, the Group freezes the units and stores them in a cryogenic freezer. Under the cord blood processing and storage agreement (the "Agreement”) signed with the customer, the Group charges separate processing fee and storage fees to the customer and such Agreement provides a storage period of eighteen years. Pursuant to the Agreement, the processing fee is non-refundable unless the cord blood is non-viable for storage, and no penalty is charged to customers for early termination of the cord blood storage service. The Group offers discount to customers from time to time. Prior to April 1, 2018, the Group recognized revenue in accordance with Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition (“ASC 605”). The Agreement is a multiple-element arrangement, which includes (i) the processing of cord blood unit and (ii) the storage of cord blood unit. The Group accounts for the arrangement under the ASC 605-25, Revenue Recognition — Multiple-Element Arrangements . In accordance with ASC 605-25, revenue arrangements that include multiple elements are analyzed to determine whether the deliverables can be divided into separate units of accounting or treated as a single unit of accounting. The consideration received is allocated among the separate units of accounting based on their relative selling prices determined based on prices of these elements as sold on a stand-alone basis, and the applicable revenue recognition criteria are applied to each of the separate units. In an arrangement with multiple deliverables, the delivered product or service shall be considered a separate unit of accounting when the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis; and (2) if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item or items is considered probable and substantially in the control of the Group. Based on evaluation of the criteria, the Group has determined that the cord blood processing services and cord blood storage services are separate units. The Group considers all reasonably available information to allocate the overall arrangement fee to cord blood processing and cord blood storage services based on their relative selling prices. The Group recognizes processing fee revenue upon successful completion of processing services and when the cord blood unit meets all the required attributes for storage, and recognizes the storage fee revenues ratably over the annual storage period. Fees derived from the provision of donated cord blood for transplantation and research are recognized when the cord blood unit is delivered and the risk of loss is transferred to the recipient. The Group’s revenues are net of value-added tax collected on behalf of tax authorities at 6% on the invoiced amount in respect of the services rendered. Effective April 1, 2018, the Group adopted the new guidance of Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606"), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . According to ASC 606, the Group recognizes revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Agreement includes two promised services which are (i) the processing service of cord blood unit; and (ii) the storage service of cord blood unit. As the promise to provide the processing service to subscriber is distinct from the promise to provide the storage service in the contract, two performance obligations are identified in the Agreement. The consideration expected to be received is allocated at contract inception among the performance obligations based on their relative selling prices determined based on prices of these elements as sold on a stand-alone basis, and the applicable revenue recognition criteria are applied to each of the performance obligation. The Group considers all reasonably available information to allocate the overall arrangement fee to processing and storage services based on their relative selling prices. The Group recognizes processing fee revenue when the performance obligation is satisfied at a point in time, which is upon successful completion of processing services and when the cord blood unit meets all the required attributes for storage, and recognizes the storage fee revenues ratably over the annual storage period as the performance obligation is satisfied over time. The Group believes the methodology of recognizing storage revenues over time meaningfully depicts the timing of storage services delivered to customers as it exerts the necessary efforts to deliver such services equally over time. The revenue recognition policy adopting ASC 606 is consistent with previous accounting practice. During the years ended March 31, 2017, 2018 and 2019, the Group offered its customers three payment options: (i) Payment of the processing fee upon delivery of the cord blood unit to the Group’s premises for processing and the annual storage fee in advance at the beginning of each annual period; (ii) Payment of the processing fee upon delivery of the cord blood unit to the Group’s premises for processing and an upfront payment of storage fees for a period of eighteen years; and (iii) Payment of the processing fee by installment over multiple periods and the annual storage fee in advance at the beginning of each annual period or an upfront payment of storage fees for a period of eighteen years paid by several installments. Certain installment option includes an initial processing fee payment upon delivery of the cord blood unit to the Group’s premises for processing and an incremental annual payment for the consecutive periods, representing a surcharge to the total amount of processing fees payable under payment options (i) and (ii). Under payment option (iii), the period between fulfillment of the performance obligation of processing services and the receipt of payment is greater than a year, and a significant financing component is present. The promised amount of consideration is discounted to present value based on a discount rate reflective of a separate financing transaction between the customer and the Group, at contract inception. The significant financing component is recorded as a reduction to revenue and accounts receivable initially, with such accounts receivable discount amortized to interest income over the period to receipt of payment. Installments due for payment beyond one year are classified as non-current accounts receivable. When payment from customers occurs prior to revenue recognition, a contract liability is recorded as deferred revenue on the consolidated balance sheet. Fees derived from the provision of donated cord blood for transplantation and research are recognized upon the satisfaction of its performance obligation, which is to transfer the control of the promised cord blood unit to the recipient. The transfer of control of the cord blood unit is satisfied at a point in time, which is the delivery of the cord blood unit to the recipient and evidenced by signed acknowledgements. The Group’s revenues are net of value-added tax collected on behalf of tax authorities at 6% on the invoiced amount in respect of the services rendered. (l) Research and development costs Research and development costs are incurred for research activities conducted to enhance collection and storage technologies, and measures to improve the results in umbilical cord blood stem cells extraction and separation. They also include research expenses on the use of cord blood stem cells in different medical treatments. Research and development costs are expensed as incurred. (m) Advertising costs Advertising costs are expensed as incurred and included in sales and marketing expenses in the consolidated statements of comprehensive income in the amount of RMB32,331, RMB37,424 and RMB39,586 (US$5,898) for the years ended March 31, 2017, 2018 and 2019, respectively. (n) Employee benefits Contributions to employee benefits (which are defined contribution plans) are charged to the consolidated statements of comprehensive income when the related employee service is provided. The Group does not have any defined benefit plans. (o) Debt issuance costs Costs incurred by the Group that are directly attributable to the issuance of the convertible notes are deferred and charged to the consolidated statements of comprehensive income using an effective interest rate method from the date the convertible notes were issued to the earliest date the holders of the convertible notes can demand payment, which is five years. (p) Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases, tax loss carry forwards and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. The Group recognizes in the consolidated financial statements the impact of a tax position if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of comprehensive income. A deferred tax liability is not recognized for the excess of the Group's financial statements carrying amount over the tax base of its investment in a foreign subsidiary, if the subsidiary has invested or will invest the undistributed earnings indefinitely. (q) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, including legal proceedings and claims that relate to a wide range of matters, including, among others, product liability. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. (r) Earnings per share Basic earnings per ordinary share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income attributable to ordinary shareholders is allocated between ordinary shares and participating securities based on contractual participating rights of security to share in undistributed earnings as if all of the earnings had been distributed. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders, as adjusted to exclude any income or expenses related to dilutive ordinary equivalents shares by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period. Dilutive potential ordinary shares consist of (i) the ordinary shares issuable upon the conversion of the convertible notes applying the if-converted method; (ii) the ordinary shares issuable upon the vesting of the restricted share units (“RSU”) scheme applying the treasury stock method; and (iii) the ordinary shares issuable as scrip dividend. Dilutive potential ordinary shares in the diluted earnings per share computation are excluded to the extent that their effect is anti-dilutive. (s) Share-based compensation The Group recognizes share-based payments as compensation cost and measures such cost based on the grant date fair value of the equity instrument issued. Compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. (t) Segment reporting The Group has one operating segment, as defined by ASC Topic 280, Segment Reporting , which is processing and storage of cord blood units. All of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. (u) Fair value measurement The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. See Note 22 to the consolidated financial statements. (v) Recently issued accounting standards Recently adopted pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09"), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This guidance was originally effective for annual reporting and interim periods beginning after December 15, 2016 with early adoption not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which defers the effective date of ASU 2014-09 to fiscal years and interim reporting periods beginning after December 15, 2017 and permits early adoption as early as the original effective date of ASU 2014-09. The new revenue standard may be applied retrospectively to each prior period presented ("full retrospective method") or retrospectively with the cumulative effect recognized as of the date of adoption ("modified retrospective method"). The Company applied the modified retrospective method to those contracts that are not completed contracts on April 1, 2018 upon the adoption of ASU 2014-09. Results for reporting periods beginning after April 1, 2018 are presented under the new revenue recognition, while prior period amounts are not adjusted and continue to be reported in accordance with ASC 605. The adoption of this new revenue standard did not impact retained earnings as of April 1, 2018 and there are no changes between the reported results for the year ended March 31, 2019 under Topic 606 and those would have been reported under Topic 605. In January 2016, the FASB issued ASU 2016-01 which amends certain aspects of recognition, measurement, presentation and disclosure of financial statements. ASU 2016-01 requires all equity investments to be measured at fair value with changes in fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investees). ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. To further clarify ASU 2016-01, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2018-03”), in February 2018. ASU 2018-03 requires application of a prospective transition approach only for those equity investments for which the new measurement alternative is being applied. Additionally, if an entity voluntarily discontinues using the measurement alternative, the investment and all identical or similar investments of the same issuer must be measured at fair value. Public business entities with fiscal years beginning between December 15, 2017 and June 15, 2018, were not required to adopt these amendments until the interim period beginning after June 15, 2018. Early adoption was permitted. For equity securities that are accounted for under the fair value method, the adoption of these amendments is by means |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Mar. 31, 2019 | |
Accounts receivable, net | |
Accounts receivable, net | 3 Accounts receivable, net (a) Accounts receivable consist of the following: March 31, 2018 2019 2019 RMB RMB US$ Accounts receivable 337,567 366,214 54,568 Less: Allowance for doubtful accounts (127,940) (164,434) (24,502) Total accounts receivable, net 209,627 201,780 30,066 Representing: Current portion: - Processing fees 71,476 68,113 10,150 - Storage fees 35,001 27,465 4,092 - Others 1,341 1,345 200 107,818 96,923 14,442 Non-current portion 101,809 104,857 15,624 Total accounts receivable, net 209,627 201,780 30,066 Non-current accounts receivable as of March 31, 2019 are due for payment as follows: March 31, 2019 RMB US$ Fiscal years ending March 31, 2021 32,352 4,821 2022 33,032 4,922 2023 31,699 4,723 2024 26,343 3,925 2025 and thereafter 80,665 12,019 204,091 30,410 Less: Unearned interest (24,434) (3,640) Total non-current accounts receivable 179,657 26,770 (b) An aging analysis of accounts receivable based on due date is as follows: March 31, 2018 2019 2019 RMB RMB US$ Not past due 210,009 219,216 32,664 Within one year past due 34,366 27,138 4,044 Between one to two years past due 35,742 30,255 4,508 Over two years past due 57,450 89,605 13,352 Total accounts receivable 337,567 366,214 54,568 (c) An analysis of the allowance for doubtful accounts is as follows: Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Balance at beginning of year 100,894 117,602 127,940 19,064 Charged to allowance for doubtful accounts 29,574 31,716 38,214 5,694 Write-off charged against the allowance for the year (12,866) (21,378) (1,720) (256) Balance at end of year 117,602 127,940 164,434 24,502 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2019 | |
Inventories | |
Inventories | 4 Inventories Inventories consist of the following: March 31, 2018 2019 2019 RMB RMB US$ Current portion: - Consumables and supplies 27,718 27,612 4,114 Non-current portion: - Processing costs capitalized in donated umbilical cord blood 71,758 77,194 11,502 Total current and non-current inventories 99,476 104,806 15,616 Collection, testing and processing costs attributable to the processing of donated umbilical cord blood are capitalized as inventories. Management assesses the recoverability of such inventories with reference to future projections of matching fees, number of donated cord blood units of the Group, demand for cord blood units for transplantation and research purposes, and the probability of finding a match in light of the number of units held. Based on such assessments, the management considers that the cord blood processing costs capitalized are recoverable and no write-down for inventories was made during the years ended March 31, 2017, 2018 and 2019. The Group recognizes the revenue for one matched donated umbilical cord blood unit upon delivery of the unit and recognizes the cost of the cord blood unit equal to the carrying amount of the total inventory (donated umbilical cord blood units) divided by the estimated future number of successful matches which would become realized through sales during the estimated weighted average remaining useful life of the donated umbilical cord blood unit. As of March 31, 2019, the weighted average remaining useful life of the donated umbilical cord blood units was estimated to be approximately 18 years. Based on the historical increase in the number of donated umbilical cord blood matching inquiries and the number of successful matches of donated umbilical cord blood units, the Group estimated the number of successful matches of donated umbilical cord blood units will increase by 7% per annum. There were no material changes to the estimates and assumptions underlying the methodology for the years ended March 31, 2017, 2018 and 2019. |
Prepaid expenses and other rece
Prepaid expenses and other receivables | 12 Months Ended |
Mar. 31, 2019 | |
Prepaid expenses and other receivables | |
Prepaid expenses and other receivables | 5 Prepaid expenses and other receivables consist of the following: March 31, 2018 2019 2019 RMB RMB US$ Prepaid expenses 13,060 14,748 2,198 VAT tax receivables 2,062 4,411 657 Other receivables 7,154 6,373 950 Total prepaid expenses and other receivables 22,276 25,532 3,805 Other receivables mainly include advance payments to employees and current rental deposits and prepayments. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Mar. 31, 2019 | |
Property, plant and equipment, net | |
Property, plant and equipment, net | 6 Property, plant and equipment, net consist of the following: March 31, 2018 2019 2019 RMB RMB US$ Buildings 598,832 600,733 89,512 Leasehold improvements 14,864 14,864 2,215 Machineries 167,310 196,123 29,223 Motor vehicles 18,210 19,246 2,868 Furniture, fixtures and equipment 50,940 53,631 7,991 Construction-in-progress 10,931 3,887 579 861,087 888,484 132,388 Less: Accumulated depreciation (308,127) (343,144) (51,130) Total property, plant and equipment, net 552,960 545,340 81,258 Depreciation expense of property, plant and equipment is allocated to the following expense items: Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Direct costs 29,883 30,055 30,848 4,597 Research and development 1,372 1,138 1,358 202 Sales and marketing 3,051 3,217 3,371 502 General and administrative 11,554 11,559 12,167 1,813 Total depreciation expense 45,860 45,969 47,744 7,114 |
Non-current deposits
Non-current deposits | 12 Months Ended |
Mar. 31, 2019 | |
Non-current deposits | |
Non-current deposits | 7 Non-current deposits Non-current deposits consist of the following: March 31, Note 2018 2019 2019 RMB RMB US$ Investment deposit (i) 210,088 224,475 33,448 Deposit for purchase of machineries 23,027 12,244 1,824 Total non-current deposits 233,115 236,719 35,272 Note: (i) The Group previously entered into a Letter of Intent with a third party (the “Potential Seller”) for a potential acquisition of the equity interests in a company in the healthcare industry with a refundable earnest money deposit of US$33,660. Due to the change in circumstances, the parties entered into a subsequent agreement in May 2017 regarding the return of the earnest money deposit, with the Potential Seller providing a performance guarantee to the Company. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Mar. 31, 2019 | |
Intangible assets, net | |
Intangible assets, net | 8 March 31, 2018 2019 2019 RMB RMB US$ Cord blood bank operating rights 138,628 138,628 20,656 Less: Accumulated amortization (36,563) (41,184) (6,136) Total intangible assets, net 102,065 97,444 14,520 Intangible assets represent the cord blood bank operating rights in the Guangdong province and the Zhejiang province, the PRC. The cord blood bank operating right in the Guangdong province was acquired through the acquisition of Guangzhou Nuoya in May 2007. The estimated useful life of the operating right is thirty years. Amortization expenses of the operating right in the Guangdong province were RMB971, RMB971 and RMB971 (US$145) for the years ended March 31, 2017, 2018 and 2019, respectively. The operating right is subject to renewal and the next renewal is due in May 2021. In February 2011, the Group acquired the right to operate the cord blood bank in the Zhejiang province from a third party for cash consideration of US$12,500 (equivalent to RMB82,124). Payment for the operating right is non-deductible for tax purpose. The simultaneous equations method is used to record the assigned value of the asset of RMB109,499 and a related deferred tax liability of RMB27,375 (Note 17(c)), in accordance with the guidance in ASC Topic 740-10-25-51, such that the carrying amount of the asset upon initial recognition less the related deferred tax liability equals the cash consideration paid. The estimated useful life of the Zhejiang operating right is thirty years. Amortization expenses were RMB3,650, RMB3,650 and RMB3,650 (US$544) for the years ended March 31, 2017, 2018 and 2019, respectively. The operating right is subject to renewal and the next renewal is due in September 2019. The Group determined that a thirty-year period as useful life of the cord blood bank operating rights to be appropriate, following the pattern in which the expected benefits of the asset will be consumed or otherwise used up. The Group’s renewal period with the provincial governmental authorities generally is every three (for cord blood banks in Guangdong and Zhejiang) or nine (for cord blood bank in Beijing) years. The Group has historically renewed cord blood bank operating rights without incurring any significant costs. There are no other legal or regulatory provisions that limit the useful life of the cord blood bank operating rights or that cause the cash flows and useful life of such cord blood bank operating rights to be constrained. In addition, the Group expects the effect of obsolescence, demand, competition, and other economic factors to be minimal. The Group engaged independent third-party valuation firms in determining the fair values of the cord blood bank operating rights during the acquisitions. The fair values of the cord blood bank operating rights were determined using an income approach and considered assumptions (including turnover rate) that a market participant would make consistent with the highest and best use of the asset by market participants. The periods of expected cash flows used to measure the fair values of the cord blood bank operating rights were thirty years. Without evidence to the contrary, the Group expects that the cord blood bank operating rights will be renewed at the same rate as a market participant would expect, and no other factors would indicate a different useful life is more appropriate. Accordingly, in the absence of other entity-specific factors, the useful life of the cord blood bank operating rights was determined to be thirty years. A straight-line method of amortization has been adopted as the pattern in which the economic benefits of the operating rights are used up cannot be reliably determined. Estimated amortization expenses for the years ending after March 31, 2019 are: March 31, 2019 RMB US$ Fiscal years ending March 31, 2020 4,621 689 2021 4,621 689 2022 4,621 689 2023 4,621 689 2024 4,621 689 2025 and thereafter 74,339 11,075 Total amortization expenses 97,444 14,520 |
Investment in equity securities
Investment in equity securities at fair value | 12 Months Ended |
Mar. 31, 2019 | |
Investment in equity securities at fair value | |
Investment in equity securities at fair value | 9 Investment in equity securities at fair value March 31, 2018 2019 2019 RMB RMB US$ Listed equity securities Cordlife Group Limited - listed on Singapore Exchange 91,632 49,270 7,341 Listed fund investment 62,250 58,092 8,656 153,882 107,362 15,997 As of March 31, 2017, the Group held 8,122,222 ordinary shares in Life Corporation Limited (“LFC”). LFC is principally engaged in the provision of funeral and related services and is listed on the Australian Securities Exchange (delisted on January 24, 2018). In February 2018, the Group disposed of its entire equity interest in LFC at a consideration of RMB217 to an independent third party. During the year ended March 31, 2017, the Group recorded impairment loss on available-for-sale equity securities of RMB2,533, which was related to the Group’s investment in LFC. Having considered the extent of the decline in the fair value of the ordinary shares of LFC, the length of time to which the market value of the shares had been below cost, and the financial condition and near-term prospects of LFC, management concluded that the decline in value on the investment in LFC was other-than-temporary. As a result, impairment loss of RMB2,533 was recognized in earnings, which was transferred from other comprehensive income, during the year ended March 31, 2017. No impairment loss was recorded for the years ended March 31, 2018 and 2019. As of March 31, 2018 and 2019, the Group held 25,516,666 ordinary shares in CGL. CGL is a provider of cord blood banking services with operations in Singapore, Hong Kong, India, Indonesia, Malaysia and the Philippines (as well as brand presence in Myanmar and Vietnam), and is listed on the Singapore Exchange. As of March 31, 2018 and 2019, the Group’s equity interest in CGL was 10.1%. During the year ended March 31, 2017, the Group made an investment in industry specific fund for US$10,000 (RMB66,154). Such fund investments are classified as equity securities measured at fair value since they have readily determinable fair value. As of March 31, 2018, the cost basis of the investments in equity securities was RMB100,213, total unrealized holding gains of CGL was RMB62,613 and total unrealized holding losses of other investment was RMB297. The aggregate fair value was RMB153,882 as of March 31, 2018. Upon the adoption of ASU 2016-01 on April 1, 2018, accumulated unrealized holding gains of equity securities of RMB62,316 (US$9,285) was adjusted from accumulated other comprehensive losses to retained earnings. As of March 31, 2019, the cost basis of the investments in equity securities was RMB100,213 (US$14,932) and the aggregate fair value was RMB107,362 (US$15,997). Decrease in fair value of equity securities of RMB57,125 (US$8,512) for the year ended March 31, 2019 was recognized as other expenses through net income. Dividends received from CGL during the years ended March 31, 2017, 2018 and 2019 of nil, RMB634 and RMB976 (US$145), respectively, were recorded in dividend income in the consolidated statements of comprehensive income. |
Other equity investment
Other equity investment | 12 Months Ended |
Mar. 31, 2019 | |
Other equity investment | |
Other equity investment | 10 Other equity investment March 31, 2018 2019 2019 RMB RMB US$ Unlisted equity securities 189,129 189,129 28,181 As of March 31, 2018 and 2019, the Group owned 24% equity interest of Shandong Province Qilu Stem Cells Engineering Co., Ltd. (“Qilu Stem Cells”), which operates a cord blood bank in the Shandong province, the PRC. Since the Group does not have any representation in the board of directors and does not have significant influence over the financial and operating decisions of Qilu Stem Cells, and the equity interests do not have a readily determinable fair value, the investment is stated at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of Qilu Stem Cells. The Group performed an impairment assessment based on Qilu Stem Cells’s operational performance, local demographic trend and the economic environment of the Shandong province and no impairment indicator was identified for the years ended March 31, 2018 and 2019, respectively. No dividend income was received from Qilu Stem Cells during the years ended March 31, 2017, 2018 and 2019. |
Bank loan
Bank loan | 12 Months Ended |
Mar. 31, 2019 | |
Bank loan | |
Bank loan | 11 Bank loan On October 9, 2015, the Group borrowed RMB60,000 from Hangzhou Bank for one year. Such bank loan was fully repaid on September 13, 2016. |
Accrued expenses and other paya
Accrued expenses and other payables | 12 Months Ended |
Mar. 31, 2019 | |
Accrued expenses and other payables | |
Accrued expenses and other payables | 12 Accrued expenses and other payables Accrued expenses and other payables consist of the following: March 31, Note 2018 2019 2019 RMB RMB US$ Insurance premium received on behalf of insurance company (i) 33,232 36,987 5,511 Other tax payables 1,802 2,663 397 Accrued salaries, bonus and welfare expenses 17,524 17,926 2,671 Accrued consultancy and professional fees 4,785 3,945 588 Payable for property, plant and equipment 712 1,198 179 Other payables (ii) 14,968 17,258 2,572 Total accrued expenses and other payables 73,023 79,977 11,918 Notes: (i) The Group has an agreement with an insurance company under which the Group collects insurance premiums on behalf of the insurance company from customers who store umbilical cord blood in the Group’s cord blood bank and are enrolled in the insurance scheme of the insurance company. Thus, the amount of gross storage fees includes insurance premiums collected on behalf of the insurance company. The amount attributable to the insurance premiums is included in current and non-current (collected and payable over one year) other payables and is not recognized as revenue. (ii) Other payables mainly include fee refundable to customers whose cord blood unit does not qualify for subsequent storage and other procurement payables. |
Deferred revenue
Deferred revenue | 12 Months Ended |
Mar. 31, 2019 | |
Deferred revenue | |
Deferred revenue | 13 Deferred revenue (a) Deferred revenue consists of the following: March 31, Note 2018 2019 2019 RMB RMB US$ Payments made by customers prior to completion of cord blood processing services (i) 128,192 185,752 27,677 Unearned storage fees (b) 2,112,195 2,384,676 355,329 Total current and non-current deferred revenue (ii) 2,240,387 2,570,428 383,006 Representing: Current portion 366,373 461,986 68,838 Non-current portion 1,874,014 2,108,442 314,168 Total current and non-current deferred revenue 2,240,387 2,570,428 383,006 Note: (i) The balance of payments made by customers prior to completion of cord blood processing services represented payments received from customers during the year upon the signing of the Agreement but before the performance obligation for processing services is satisfied and before the commencement of storage. Of the balance of RMB128,192 as of March 31, 2018, RMB69,294 (US$10,325) was recognized as revenues for the year ended March 31, 2019 and RMB58,898 (US$8,776) from prior year’s balance was reclassified as unearned storage fees which was included in the increase in unearned storage fees during the year in the analysis disclosed in Note 13(b). (ii) Of the total balances of current and non-current deferred revenue, the Group expects to recognize RMB386,068 (US$57,526) in fiscal year 2020, RMB174,145 (US$25,948) in fiscal year 2021, RMB173,216 (US$25,810) in fiscal year 2022, and RMB1,836,999 (US$273,722) in the fiscal year 2023 and thereafter, upon the completion of the Group’s performance obligations on related processing and storage services. (b) An analysis of unearned storage fees is as follows: Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Balance at beginning of year 1,482,074 1,763,389 2,112,195 314,727 Increase in unearned storage fees during the year 559,588 674,015 658,262 98,085 Credited to income - From prior year's balance (160,835) (193,810) (238,181) (35,490) - From increase in unearned storage fees during the year (117,438) (131,399) (147,600) (21,993) Balance at end of year 1,763,389 2,112,195 2,384,676 355,329 |
Convertible notes, net
Convertible notes, net | 12 Months Ended |
Mar. 31, 2019 | |
Convertible notes, net | |
Convertible notes, net | 14 Convertible notes, net On April 27, 2012, the Company completed the sale of US$65,000 in aggregate principal amount of 7% coupon interest rate senior unsecured convertible notes to Brilliant China Healthcare Investment Limited (formerly known as KKR China Healthcare Investment Limited) (“BCHIL”) (the “KKR Notes”). The KKR Notes were convertible into the Company’s ordinary shares at a conversion price of US$2.838 per share. The Company received gross proceeds of US$65,000 and incurred debt issuance costs of RMB14,260 from the issuance of the KKR Notes. The KKR Notes were senior unsecured obligations, maturing on April 27, 2017 and are not redeemable prior to their maturity at the Company’s option. The KKR Notes were convertible at any time in whole or in part, into the Company’s ordinary shares at the conversion price, subject to customary anti-dilution adjustments for significant corporate events. On the maturity date, the Company was obligated to pay a redemption amount on the unconverted portion of the KKR Notes that would be calculated to provide a 12% Internal Rate of Return (“IRR”). On October 3, 2012, the Company completed the sale of aggregate US$50,000 senior unsecured convertible notes to Golden Meditech Holdings Limited (“GMHL”), which was a major shareholder of the Company at that time (the “GM Notes”). The GM Notes carried a 7% coupon interest rate and were convertible into the Company’s ordinary shares at a conversion price of US$2.838 per share. The Company received gross proceeds of US$50,000 and incurred debt issuance costs of RMB4,258 from the issuance of the GM Notes. The GM Notes were senior unsecured obligations, maturing on October 3, 2017 and were not redeemable prior to their maturity at the Company’s option. The GM Notes were convertible at any time in whole or part, into the Company’s ordinary shares at the conversion price, subject to customary anti-dilution adjustments for significant corporate events. On the maturity date, the Company was obligated to pay a redemption amount on the unconverted portion of the GM Notes that is calculated to provide a 12% IRR. In November 2014, GMHL completed the sale of the GM Notes of US$50,000 in aggregate principal amount to CGL and Magnum Opus International Holdings Limited (“Magnum”), a private vehicle that is controlled by the Company’s former chairman, for a total consideration of US$88,090. As a result, CGL and Magnum became the holders of the GM Notes and each of them held US$25,000 of the GM Notes. All terms and conditions of the GM Notes remain the same after the transfer from GMHL to CGL and Magnum, except for the change of holder name on the convertible notes and the denomination of the fair value of the convertible notes from US$50,000 to US$25,000. In May 2015, GMHL entered into a purchase agreement with CGL and Magnum to acquire the GM Notes at a consideration of US$61,677 and US$61,896, respectively. The acquisitions of the GM Notes from CGL and Magnum were completed in November and December 2015, respectively, and the GM Notes were subsequently transferred to Golden Meditech Stem Cells (BVI) Company Limited (“GMSC”), a wholly owned subsidiary of GMHL. In August 2015, BCHIL transferred the KKR Notes to Excellent China Healthcare Investment Limited (“ECHIL”). On the same day, Magnum Opus 2 International Holdings Limited (“MO2”), an entity wholly owned by the Company’s former chairman, acquired from BCHIL the KKR Notes through the acquisition of all the issued and outstanding shares of ECHIL, which is the holder of the KKR Notes and a wholly owned subsidiary of BCHIL. In January 2016, GMHL acquired from ECHIL the KKR Notes and subsequently transferred the KKR Notes to its wholly owned subsidiary, GMSC. In April 2017, GMSC exercised the conversion of the KKR Notes and GM Notes (collectively the “Notes”) of US$115,000 in aggregate principal amount at a conversion price of US$2.838 per share, which resulted in the issuance of 40,521,494 ordinary shares of the Company. Subsequent to such conversion, the Company has no outstanding convertible notes. The Company determined that the conversion feature embedded in the Notes should not be bifurcated and accounted for as a derivative pursuant to ASC 815, Derivatives and Hedging ("ASC 815"), since the embedded conversion feature is indexed to the Company’s own stock and would have been classified in shareholders’ equity if it were a free-standing derivative instrument. The Company determined that the embedded put options that can accelerate the repayment of the Notes and contingent interest feature are clearly and closely related to the debt host contract and are not separately accounted for as a derivative pursuant to the ASC 815. Further, since the conversion price of the Notes exceeded the market price of the Company’s ordinary shares on the date of commitment, there was no beneficial conversion feature. The Company accrued interest on the Notes based on the guaranteed 12% IRR per annum. The difference between the accrued interest rate of 12% and the coupon rate of 7% of the Notes is recorded in convertible notes in the consolidated balance sheets. Debt issuance costs in connection with the issuance of convertible notes are amortized from the date the Notes were issued to the earliest date the holders of the Notes can demand payment, which is five years. Interest relating to the Notes was recognized as follows: Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ KKR Notes interest incurred 65,130 1,454 — — GM Notes interest incurred 48,863 1,113 — — Amortization of debt issuance costs 3,947 690 — — Total interest expense 117,940 3,257 — — |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Mar. 31, 2019 | |
Shareholders' equity | |
Shareholders' equity | 15 Shareholders’ equity (a) Share capital As of March 31, 2017, the Company had 73,003,248 shares outstanding and 73,140,147 shares issued. During the year ended March 31, 2018, the Company issued 40,521,494 ordinary shares upon the conversion of the Notes in April 2017 (Note 14). In addition, 7,300,000 outstanding RSUs were fully vested and resulted in an increase of 7,300,000 shares outstanding (Note 18). As a result, as of March 31, 2018, the Company’s issued and outstanding shares increased to 120,961,641 and 120,824,742 respectively. During the year ended March 31, 2019, the Company issued 726,333 ordinary shares as scrip dividend (Note 15(d)). As a result, the Company's issued and outstanding shares increased to 121,687,974 and 121,551,075 as of March 31, 2019. (b) Statutory reserves According to PRC rules and regulations and their Articles of Association, Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou are required to transfer 10% of net income, as determined in accordance with the relevant financial regulations established by the Ministry of Finance of the PRC, to a statutory surplus reserve until the reserve balance reaches 50% of their respective registered capital. The transfer to this reserve must be made before distribution of dividends to equity holders can be made. The statutory surplus reserve is non-distributable but can be used to make good previous years’ losses, if any, and may be converted into issued capital in proportion to the respective equity holding of the equity holders, provided that the balance of the reserve after such conversion is not less than 25% of the registered capital. Aggregated transfers of RMB1,964, RMB16,326 and RMB15,841 (US$2,360) have been made to the statutory surplus reserve by Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou for the years ended March 31, 2017, 2018 and 2019, respectively. Accumulated statutory surplus reserve as of March 31, 2018 and 2019 amounted to RMB144,141 and RMB159,982 (US$23,838), respectively. (c) Share repurchase program During the year ended March 31, 2013, the Company repurchased 7,450,914 ordinary shares at a total cost of RMB131,302 of which 7,314,015 shares were subsequently sold to CGL. As of March 31, 2018 and 2019, the remaining 136,899 repurchased ordinary shares had not been cancelled and therefore were presented as treasury stock in the consolidated balance sheets. On July 23, 2018 and July 23, 2019, the Board of Directors approved a new share repurchase program in the aggregate amount of $20,000 for 12 months until July 23, 2019 and July 23, 2020. During the years ended March 31, 2018 and 2019, the Company did not repurchase any of its shares under the new share repurchase programs. (d) Dividend declared On June 26, 2018, the Company's Board of Directors declared a dividend of US$0.08 per ordinary share of the Company, to be paid in cash or in scrip at the election of the shareholders. As a result of the election of the shareholders, the Company issued a total of 726,333 ordinary shares and paid a cash dividend of RMB18,173 (US$2,708) during the year ended March 31, 2019. |
Revenues
Revenues | 12 Months Ended |
Mar. 31, 2019 | |
Revenues | |
Revenues | 16 Revenues The Group’s revenues are primarily derived from the provision of umbilical cord blood processing and storage services. Since the Group operates and manages its business solely in the PRC and services are predominately provided to customers located in the PRC, no geographical segment information is provided. The Group’s revenues by category are as follows: Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Cord blood processing fees 477,243 604,502 592,123 88,229 Cord blood storage fees 278,273 325,209 385,781 57,483 Fees derived from the provision of donated cord blood for transplantation and research and others 4,462 7,057 8,850 1,319 Total revenues 759,978 936,768 986,754 147,031 |
Income tax
Income tax | 12 Months Ended |
Mar. 31, 2019 | |
Income tax | |
Income tax | 17 Income tax Cayman Islands and British Virgin Islands Under the current laws of the Cayman Islands and the British Virgin Islands, the Company and its subsidiaries that are incorporated in the Cayman Islands and the British Virgin Islands are not subject to tax on income or capital gains. In addition, upon payments of dividends by these companies, no Cayman Islands or British Virgin Islands withholding tax is imposed. Hong Kong The Company’s subsidiaries that are incorporated or operate in Hong Kong are subject to Hong Kong Profits Tax on income arising in or derived from Hong Kong. No provision was made for Hong Kong Profits Tax as the subsidiaries did not earn income subject to Hong Kong Profits Tax for the years ended March 31, 2017, 2018 and 2019. The payments of dividends by Hong Kong tax residents are not subject to any Hong Kong withholding tax. The PRC The Company’s PRC subsidiaries are subject to PRC statutory income tax rate of 25% unless otherwise specified. In January 2015, Beijing Jiachenhong received approval from the tax authority on the renewal of its High and New Technology Enterprises (“HNTE”) status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2014 to December 31, 2016. In February 2018, Beijing Jiachenhong received approval from the tax authority on the renewal of its HNTE status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2017 to December 31, 2019. In March 2017, Guangzhou Nuoya received approval from the tax authority on the renewal of its HNTE status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2016 to December 31, 2018. Guangzhou Nuoya is in the process of reapplication for its HNTE certificate which, upon approval, will entitle it to the preferential income tax rate of 15% from January 1, 2019 to December 31, 2021. In January 2016, Zhejiang Lukou received approval from the tax authority that it qualified as a HNTE which entitled it to the preferential income tax rate of 15% effective retrospectively from January 1, 2015 to December 31, 2017. In March 2019, Zhejiang Lukou received approval from the tax authority that it qualified as a HNTE which entitled it to the preferential income tax rate of 15% effective retrospectively from January 1, 2018 to December 31, 2020. The Enterprise Income Tax Law and its implementation rules also impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends receivable by non-PRC-resident enterprises from PRC-resident enterprises in respect of earnings accumulated beginning on January 1, 2008. During the year ended March 31, 2017, a reversal of withholding income tax of RMB14,300 was made due to the change in management’s future reinvestment plan as all undistributed earnings of the Company’s PRC subsidiaries are intended to be reinvested indefinitely in the PRC in the foreseeable future. There was no change on the Company’s reinvestment plan in the years ended March 31, 2018 and 2019. As of March 31, 2019, such undistributed earnings that may be subject to the withholding tax amounted to RMB2,351,790 (US$350,428) and the related unrecognized deferred tax liability was RMB235,179 (US$35,043). Income before income tax expense arose from the following tax jurisdictions: Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ The PRC 365,448 435,576 447,195 66,634 Non-PRC - Hong Kong (36) (45) (65) (9) - British Virgin Islands (2,985) (56) (56,616) (8,436) - Cayman Islands (196,116) (131,940) (34,053) (5,074) Income before income tax expense 166,311 303,535 356,461 53,115 (a) Income taxes Income tax expense represents PRC income tax expense as follows: Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Current tax expense 58,767 72,591 75,948 11,317 Deferred tax expense (21,145) (9,935) (14,688) (2,189) Total income tax expense 37,622 62,656 61,260 9,128 (b) Reconciliation of expected income tax to actual income tax expense The actual income tax expense reported in the consolidated statements of comprehensive income differs from the amount computed by applying the statutory PRC income tax rate of 25% due to the following: Year ended March 31, Note 2017 2018 2019 2019 RMB RMB RMB US$ Income before income tax expense 166,311 303,535 356,461 53,115 Computed “expected” tax expense 41,578 75,884 89,115 13,279 Non-PRC entities not subject to income tax - Hong Kong 9 11 16 2 - British Virgin Islands 746 14 14,154 2,109 - Cayman Islands 49,029 32,985 8,513 1,268 PRC dividend withholding tax (14,300) — — — Preferential tax rates (i) (39,931) (49,093) (51,428) (7,663) Others 491 2,855 890 133 Actual income tax expense 37,622 62,656 61,260 9,128 Note: (i) Per share impact of preferential tax rates is RMB0.55, RMB0.43 and RMB0.42 (US$0.06) for the years ended March 31, 2017, 2018 and 2019, respectively. (c) Deferred taxes The tax effects of temporary differences that give rise to deferred tax assets/(liabilities) are presented below: March 31, 2018 2019 2019 RMB RMB US$ Deferred tax assets: Accounts receivable 21,086 32,929 4,906 Non-current accounts receivable 11,725 12,879 1,919 Inventories 7,410 7,834 1,167 Others 1,713 1,858 277 Deferred tax assets 41,934 55,500 8,269 Deferred tax liabilities: Deferred revenue (57) (48) (7) Property, plant and equipment (5,694) (5,736) (855) Intangible assets (25,516) (24,361) (3,629) Deferred tax liabilities (31,267) (30,145) (4,491) Net deferred tax assets 10,667 25,355 3,778 Classification on consolidated balance sheets: Deferred tax assets 31,295 44,981 6,702 Deferred tax liabilities (20,628) (19,626) (2,924) Net deferred tax assets 10,667 25,355 3,778 For the years ended March 31, 2017, 2018 and 2019, the Group did not have any unrecognized tax benefits and thus no interest and penalties related to unrecognized tax benefits were recorded. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB100 (US$15). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The income tax returns of the Group’s PRC subsidiaries for the calendar years from 2014 to 2018 are open to examination by the PRC state and local tax authorities. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Mar. 31, 2019 | |
Share-based compensation | |
Share-based compensation | 18 Share-based compensation At the annual general meeting of the Company on February 18, 2011 (the “Adoption Date”), the shareholders of the Company approved a RSU scheme for the purpose of attracting and retaining skilled and experienced personnel. Certain administrative provisions of the RSU scheme were subsequently amended by the Board of Directors of the Company in August 2014. The RSU scheme will be valid and effective for a period of ten years commencing from the Adoption Date of the RSU Scheme. On December 15, 2014 (the “Grant Date”), the Company granted a total of 7,300,000 RSUs to certain executives, directors and key employees (the “RSU Grantees”) under the RSU scheme. The RSUs will be vested in whole at any time during its valid period, subject to the fulfilment of certain operational and/or financial performance targets as set by relevant committee of the Company’s Board of Directors. Upon vesting, each RSU shall be entitled to the transfer or issue of one ordinary share in the share capital of the Company. The RSUs were exercisable only if the RSU Grantees remained employed by the Company. The fair value of each RSU was US$4.15, which was based on the market price of the ordinary shares of the Company at the Grant Date. During the year ended March 31, 2017, the RSUs granted had not been vested. There were 7,300,000 RSUs outstanding and nil exercisable as of March 31, 2017 with a weighted average remaining contract life of 1 year. During the year ended March 31, 2018, 1,000,000 RSUs were cancelled upon the resignation of one of the grantees. Previously recognized share-based compensation expense was therefore written back in the year ended March 31, 2018. In May 2017 (the “Second Grant Date”), 1,000,000 additional RSUs were issued to the RSU Grantees under the RSU scheme. The additional RSUs vested in whole at any time during its valid period, subject to the fulfilment of certain operational and/or financial performance targets as set by relevant committee of the Company’s Board of Directors. Upon vesting, each additional RSU was entitled to the transfer or issue of one ordinary share in the share capital of the Company. The additional RSUs were exercisable only if the additional RSU Grantees remained employed by the Company. The fair value of each additional RSU was US$7.68, which was based on the market price of the ordinary shares of the Company at the Second Grant Date. During the year ended March 31, 2018, all 7,300,000 RSUs outstanding were fully vested. As of March 31, 2018 and 2019, no RSUs were issued and outstanding. Share-based compensation expense recognized for RSUs is allocated to the following expense items: Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Direct costs 1,565 1,920 — — Sales and marketing 17,408 (1,534) — — General and administrative 43,268 83,882 — — Total share-based compensation expense 62,241 84,268 — — |
Earnings per share
Earnings per share | 12 Months Ended |
Mar. 31, 2019 | |
Earnings per share | |
Earnings per share | 19 Earnings per share The following table sets forth the computation of basic and diluted earnings per share for the years ended March 31, 2017, 2018 and 2019: Year ended March 31, Note 2017 2018 2019 2019 RMB RMB RMB US$ Numerator: Net income attributable to the Company’s shareholders 126,190 237,098 291,124 43,380 Earnings allocated to participating convertible notes (i) (10,019) — — — Net income for basic and diluted net income per share 116,171 237,098 291,124 43,380 Denominator: Weighted average ordinary shares outstanding for basic net income per share 73,003,248 112,938,635 121,270,491 121,270,491 Dilutive effect of RSUs (ii) — 6,390,797 — — Dilutive effect of scrip dividend (iii) — — 151,091 151,091 Weighted average ordinary shares outstanding for diluted net income per share 73,003,248 119,329,432 121,421,582 121,421,582 Earnings per share - Basic 1.59 2.10 2.40 0.36 - Diluted (ii) & (iii) 1.59 1.99 2.40 0.36 Notes: (i) For the years ended March 31, 2017 and 2018, the outstanding convertible notes provide the holders with the ability to participate in any excess cash dividend. Excess cash dividend means any cash dividend to holders of shares that, together with all other cash dividends previously paid to holders of shares in the same financial year, exceeds, on a per share basis, an amount equal to the interest that has accrued and shall accrue at 7% coupon interest rate in such financial year divided by the number of shares into which the notes are convertible at the conversion price then in effect on the relevant record date. Therefore, net income attributable to the Company is reduced by such allocated earnings to participating convertible notes for the year ended March 31, 2017 in both basic and diluted net income per share computation. For the year ended March 31, 2018, as there were no excess cash dividend, no earnings were allocated to participating convertible notes. All outstanding convertible notes were fully converted into the Company’s ordinary shares in the year ended March 31, 2018. The Company has no outstanding convertible notes subsequent to such conversion. (ii) During the years ended March 31, 2017 and 2018, the Company had potentially dilutive ordinary shares of 40,521,494 representing shares issuable upon conversion of the outstanding convertible notes (see Note 14). Such potentially dilutive ordinary shares were excluded from diluted earnings per share computation because their effects would have been anti-dilutive. During the year ended March 31, 2017, the Company had potential dilutive ordinary shares of 7,300,000 represented shares issuable upon vesting of the RSUs, which were excluded from diluted earnings per share computation as the performance condition was not met as of the year end. For the year ended March 31, 2018, potential dilutive ordinary shares included 6,390,797 weighted average incremental shares of the RSUs applying the treasury stock method. (iii) During the year ended March 31, 2019, included in the diluted earnings per share computation was the potential dilutive ordinary shares of 151,091 represented shares issuable as scrip dividend. |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 31, 2019 | |
Related party transactions | |
Related party transactions | 20 Related party transactions For the years presented, the principal related party transactions are summarized as follows: Year ended March 31, Note 2017 2018 2019 2019 RMB RMB RMB US$ Purchase of raw materials (i) 36,405 18,759 — — Purchase of raw materials and machineries (ii) — 19,419 — — Consultancy expenses (iii) 4,337 4,481 — — Interest expenses 14 113,993 2,567 — — Consultancy income (iv) 16,786 — — — Data access income (v) 26,316 — — — Notes: (i) During the year ended March 31, 2017 and the period from April 1, 2017 to January 31, 2018, the Group purchased raw materials from China Bright Group Co. Limited (“China Bright”), a subsidiary of GMHL, of RMB36,405 and RMB18,759, respectively. Since February 1, 2018, China Bright was no longer a related party of the Group. (ii) During the period from April 1, 2017 to January 31, 2018, the Group purchased raw materials and machineries from Beijing Jingjing Medical Equipment Co., Ltd. ("Beijing Jingjing") of RMB19,419. Since February 1, 2018, Beijing Jingjing was no longer a related party of the Group. (iii) During the year ended March 31, 2017 and the period from April 1, 2017 to January 31, 2018, consultancy services were provided by Golden Meditech (S) Pte Ltd. (“GM(S)”), a subsidiary of GMHL, to the Group for an amount of RMB4,337 and RMB4,481, respectively. Since February 1, 2018, GM(S) was no longer a related party of the Group. (iv) During the year ended March 31, 2017, the Company performed a consultation service related to the usage of cord blood processing devices and consumables and recorded RMB16,786 as a reduction of direct costs. GMHL is an exclusive distributor of such devices and consumables in the PRC and the Company is a major customer of GMHL. Since the consideration of the consultation service cannot be sufficiently separated from the Company’s purchases of such devices and consumables and the fair value of the benefit provided for cannot be reasonably estimated either, the consideration received from GMHL was recorded as a reduction of direct costs as associated cord blood processing devices and consumables which the Company purchased from GMHL were consumed and included in direct costs in prior years. (v) During the year ended March 31, 2017, the Company entered into a collaboration agreement with GMHL. Utilizing the Company’s existing donated cord blood samples resources, the Company provided GMHL with exclusive access to certain data derived from a small portion of donated cord blood samples and has no further obligation to GMHL, in return for a fee of RMB26,316. |
Employee benefits
Employee benefits | 12 Months Ended |
Mar. 31, 2019 | |
Employee benefits | |
Employee benefits | 21 Employee benefits Pursuant to the relevant PRC regulations, Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou are required to make various defined contributions organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at a rate of approximately 40% on a standard salary base as determined by the local Social Security Bureau. The amounts of the defined contributions of RMB24,495, RMB30,518 and RMB38,231 (US$5,697) for the years ended March 31, 2017, 2018 and 2019 respectively, were charged to expense in the consolidated statements of comprehensive income. For the years ended March 31, 2017, 2018 and 2019, 55%, 57% and 63% of costs of employee benefits were recorded in sales and marketing expenses respectively, with the remaining portion of the contributions recorded in general and administrative expenses, direct costs and research and development expenses of each year. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Mar. 31, 2019 | |
Fair value measurements | |
Fair value measurements | 22 Fair value measurements The following methods and assumptions were used to estimate the fair value of each class of financial instruments: Investment in equity securities - based on quoted market prices on the last trading value as of March 31, 2018 and 2019. Such investments are classified as Level 1 in the hierarchy. Short-term financial instruments (including cash and cash equivalents, accounts receivable, prepaid expenses and other receivables, accounts payable, accrued expenses and other payables, amounts due to related parties and short-term bank loan) - cost approximates their respective fair values due to their short-term nature. |
Business and credit concentrati
Business and credit concentrations | 12 Months Ended |
Mar. 31, 2019 | |
Business and credit concentrations | |
Business and credit concentrations | 23 Business and credit concentrations All of the Group’s customers are located in the PRC. Revenues from and accounts receivable due from customers are individually immaterial. The Group derives a substantial portion of net revenues from the entities in the Beijing municipality, Guangdong and Zhejiang provinces. Revenues derived from the subsidiary in the Beijing municipality accounted for 28.8%, 23.7% and 23.8% of net revenues for the years end March 31, 2017, 2018 and 2019, respectively. Revenues derived from the subsidiary in the Guangdong province accounted for 58.7%, 62.0% and 61.0% of net revenues for the years end March 31, 2017, 2018 and 2019, respectively. Revenues derived from the subsidiary in the Zhejiang province accounted for 12.5%, 14.3% and 15.2% of net revenues for the years end March 31, 2017, 2018 and 2019, respectively. As a result of this geographic concentration, the results of operations are significantly affected by economic conditions in the Beijing municipality, Guangdong and Zhejiang provinces. Furthermore, any change in number of newborns in the Beijing municipality, Guangdong and Zhejiang provinces could significantly impact our operations. Deterioration in economic conditions in these markets could decrease the demand for our business, which in turn could negatively impact our operations and business prospects. The Group purchases raw materials from a few major suppliers. Management believes that other suppliers could provide similar raw materials on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would adversely affect the Company’s business, financial position and results of operations. The following are purchases from suppliers that individually comprise 10% or more of gross purchases in the respective years: Year ended March 31, Suppliers Note 2017 2018 2019 RMB % RMB % RMB US$ % Beijing Jingjing Medical Equipment Co., Ltd. (i) — — — — 23,741 3,538 30 China Bright Group Co. Limited (ii) 36,405 52 18,759 24 — — — Hangzhou Baitong Biological Technology Co., Ltd. (iii) — — 7,670 10 — — — Beijing Chengmao Xingye Technology Development Co., Ltd. (iv) — — 7,711 10 — — — Total 36,405 52 34,140 44 23,741 3,538 30 Notes: (i) The purchases from Beijing Jingjing were less than 10% of gross purchases for the years ended March 31, 2017 and 2018. (ii) The purchases from China Bright Group Co. Limited were less than 10% of gross purchases for the year ended March 31, 2019. (iii) The purchases from Hangzhou Baitong Biological Technology Co., Ltd were less than 10% of gross purchases for the years ended March 31, 2017 and 2019. (iv) The purchases from Beijing Chengmao Xingye Technology Development Co., Ltd. were less than 10% of gross purchases for the years ended March 31, 2017 and 2019. The following are individual accounts payable due to major suppliers that exceeded 10% of outstanding accounts payable balance in the respective years: March 31, 2018 2019 RMB % RMB US$ % Beijing Jingjing Medical Equipment Co., Ltd. — — 10,715 1,597 32 Beijing Probe Biological Technology Co., Ltd. 1,141 10 — — — 1,141 10 10,715 1,597 32 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and contingencies | |
Commitments and contingencies | 24 Commitments and contingencies (a) Operating lease commitments For the years ended March 31, 2017, 2018 and 2019, total rental expenses for operating leases were, RMB2,859, RMB3,483 and RMB3,265 (US$487), respectively. The total future minimum payments under non-cancellable operating leases of rental arrangements as of March 31, 2019 are as follows: March 31, 2019 RMB US$ Fiscal years ending March 31, 2020 2,196 327 2021 1,832 273 2022 1,500 224 2023 1,125 168 Total payments 6,653 992 (b) Contractual commitments – Cooperation agreements In June 2006, the Group entered into a cooperation agreement with Peking University People’s Hospital (“PUPH”). Pursuant to the agreement, PUPH provides technical consultancy services to the Group in relation to the operation of a cord blood bank. The annual service fee was RMB2,600 and was renewed to RMB3,000 (US$447) effective from September 2017. The renewed agreement has a term of four years commencing in September 2017. In November 2009, Guangzhou Nuoya entered into a cooperation agreement with Guangdong Women and Children’s Hospital and Health Institute (“GWCH”) for a term of 20 years. Pursuant to the agreement, GWCH provides technical consultancy services to the Group. The annual service fee was RMB2,000 and was renewed to RMB3,200 (US$477) effective from October 2013. As of March 31, 2019, the total future minimum payments under the cooperation agreements are as follows: March 31, 2019 RMB US$ Fiscal years ending March 31, 2020 6,200 924 2021 6,200 924 2022 4,450 663 2023 3,200 477 2024 3,200 477 2025 and thereafter 17,867 2,662 Total payments 41,117 6,127 |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 31, 2019 | |
Subsequent events | |
Subsequent events | 25 Subsequent events On June 4, 2019, the Company's Board of Directors (the "Board") received a non-binding proposal letter from CGL, pursuant to which CGL proposes to combine the businesses of CGL and the Company, by way of a statutory merger (the "CGL Proposal"). CGL will 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 US$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 CGL ordinary shares will continue to trade on Singapore Exchange. On June 5, 2019, in response to the non-binding proposal letter received from CGL, the Board formed a special committee of independent directors who are not affiliated with CGL (the "Special Committee") to evaluate the CGL Proposal. As of the date of this report, the Special Committee is still considering and evaluating the proposal by CGL, but it has not made any decision regarding the CGL Proposal. On or about June 26, 2019, an originating summons was filed in the Grand Court of the Cayman Islands, Financial Services Division naming the Company and certain directors thereof in connection with the CGL Proposal. The proceeding is captioned Jayhawk Capital Management, L.L.C., JHMS Fund, LLC and Kent C. McCarthy v. Global Cord Blood Corporation, Mark D. Chen, Jennifer Weng and Ken Lu, FSD Cause No. 122 of 2019 (RMJ) , and challenges the CGL Proposal and alleges, among other things, that the consideration to be paid in such proposal is inadequate, as is the process by which the proposal is being evaluated due to the alleged lack of independence of certain members of the Special Committee. The proceeding seeks, among other relief, to enjoin defendants from consummating the CGL Proposal and to direct defendants to revoke the appointment of such members of the Special Committee. The summonses have been served on the Company and an initial hearing in the case was held on July 17, 2019. During the said hearing, the Court dismissed the plaintiffs’ application for interlocutory reliefs in view of certain undertakings to be provided by the defendants and ordered that the parties shall endeavor to agree to directions for the originating summons. The Company has reviewed the allegations contained in the summons and believes they are without merit. The Company intends to defend the litigation vigorously. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Summary of significant accounting policies | |
Principles of consolidation | (a) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Company and its consolidated subsidiaries. For consolidated subsidiaries where the Company’s ownership is less than 100%, the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the Company, are presented as non-controlling interests. All significant intercompany balances and transactions have been eliminated on consolidation. |
Use of estimates | (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the estimate of stand-alone selling price for each performance obligation in contracts with customers that contain more than one performance obligation, the estimated number of successful match units over the estimated weighted average remaining useful life of donated cord blood units, the useful lives of property, plant and equipment and intangible assets, the recoverability of property, plant and equipment and intangible assets, the collectibility of accounts receivables, the realizability of inventories and deferred tax assets and the fair values of share-based compensation. |
Foreign currency transactions and translation | (c) Foreign currency transactions and translation The reporting currency of the Company is Renminbi (“RMB”). The functional currency of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou is the RMB and the functional currency of the Company is United States dollars (“US$”). The functional currencies of subsidiaries of the Company outside the PRC are either US$ or Hong Kong dollars. Transactions of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou denominated in currencies other than RMB are translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”) prevailing at the dates of the transactions. Monetary assets and liabilities of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou denominated in foreign currencies are translated into RMB using the applicable exchange rates quoted by the PBOC at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange (losses)/gains in the consolidated statements of comprehensive income. Transactions of the Company and subsidiaries outside the PRC denominated in currencies other than their functional currencies are translated into their functional currencies at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities of the Company and subsidiaries outside the PRC denominated in foreign currencies are translated into their functional currencies using the applicable exchange rates at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange (losses)/gains in the consolidated statements of comprehensive income. Assets and liabilities of the Company and subsidiaries outside the PRC are translated into RMB using the exchange rate at the balance sheet date. Revenues and expenses of the Company and subsidiaries outside the PRC are translated at the average exchange rates prevailing during the year. The adjustments resulting from translation of financial statements of the Company and subsidiaries outside the PRC are recorded as a separate component of accumulated other comprehensive income within shareholders’ equity. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the PBOC or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. For the convenience of the readers, certain amounts as of and for the year ended March 31, 2019 included in the accompanying consolidated financial statements have been translated into U.S. dollars at the rate of US$1.00 = RMB6.7112, being the spot exchange rate of U.S. dollars in effect on March 29, 2019 for cable transfers in RMB per U.S. dollar as certified for customs purposes by the Federal Reserve, the central bank of the United States of America. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at that rate or at any other rate on March 29, 2019 or at any other date. The U.S. dollars convenience translation is not required under U.S. GAAP. |
Cash and cash equivalents | (d) Cash and cash equivalents Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Cash and cash equivalents of the Group are mainly maintained in the PRC and are denominated in several currencies. As of March 31, 2018 and 2019, cash and cash equivalents maintained in the PRC amounted to RMB4,175,205 and RMB4,951,352 (US$737,774), respectively. The Group’s cash and cash equivalents denominated in U.S. dollars, Australian dollars, Renminbi, Hong Kong dollars and Singapore dollars are as follows: March 31, 2018 2019 Original currency RMB Original currency RMB U.S. dollars 3,332 20,800 4,229 28,205 Australian dollars 1 5 4 17 Renminbi 4,175,223 4,175,223 4,951,377 4,951,377 Hong Kong dollars 67,439 53,964 19,431 16,614 Singapore dollars 129 618 333 1,648 Cash and cash equivalents held at financial institutions located in the PRC and Hong Kong are insured up to certain amount. Management believes that these major financial institutions have high credit ratings. |
Investment securities | (e) Investment securities Prior to the adoption of Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01") on April 1, 2018, management determines the appropriate classification of its investment securities at the time of purchase and re-evaluates such designations at each reporting date. Trading securities were recorded at fair value. Realized and unrealized holding gains and losses, net of the related tax effect, on trading securities are included in earnings. Available-for-sale equity securities were recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale equity securities were excluded from earnings and were reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale equity securities were determined on a specific-identification basis. Where the fair value of an investment in equity securities was not readily determinable, the investment was recorded at cost. A decline in the market value of available-for-sale securities that was deemed to be other-than-temporary resulted in an impairment to reduce the carrying amount to fair value. The impairment was charged to earnings and a new cost basis for the security was established. In determining whether an impairment was other-than-temporary, the Group considered whether it had the ability and intent to hold the investment until a market price recovery and considered whether evidence indicating the cost of the investment was recoverable outweighs evidence to the contrary. Evidence considered in this assessment included the reasons for the impairment, the severity and duration of the impairment, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Upon the adoption of ASU 2016-01 on April 1, 2018, equity securities with readily determinable fair value are measured at fair values, and any changes in fair value are recognized in earnings. Where the fair value of an investment in equity securities is not readily determinable, the Group recognizes such investment in other investment, and uses the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. For equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For equity investments without readily determinable fair value, at each reporting period, the Group makes a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired. Impairment indicators that the Group considers include, but are not limited to, (i) the deterioration of earnings performance, credit rating, asset quality, or business prospects of the investee, (ii) a significant adverse change in the regulatory, economic, or technological environment of the investee, (iii) a significant adverse change in the general market condition of either the geographic area or the industry in which the investee operates. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment's fair value and if the fair value is less than the investment's carrying value, the Group recognizes an impairment loss in other expenses equal to the difference between the carrying value and fair value. Dividend income is recognized in other income when earned. |
Accounts receivable | (f) Accounts receivable Accounts receivable represent amounts due from subscribers for cord blood processing and storage services, which are recognized in accordance with the Group's revenue recognition policies (Note 2(k)). Installments receivable from subscribers which are due for repayment in over one year under the deferred payment option are classified as non-current accounts receivable. Accounts receivable are stated net of allowance for doubtful accounts. The allowance for doubtful accounts is the Group’s best estimate of losses in the Group’s accounts receivable, which is determined based on historical write-off experience, customer specific facts and economic conditions. The Group reviews its allowances for doubtful accounts quarterly. Outstanding account balances are reviewed on a pooled basis by ageing of such balances. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group’s PRC subsidiaries are required to comply with local tax requirements on the write-offs of doubtful accounts, which allow for such write-offs only when the related account balances are aged over three years and sufficient evidence is available to prove the debtor’s inability to make payments. For financial reporting purposes, the Group's PRC subsidiaries generally record write-offs of doubtful accounts at the same time the local tax requirements for the write-offs are met. As a result, there are generally time lags between the time when a provision for doubtful accounts is recorded and the time the doubtful accounts are written off against the related allowance. The Group does not have any off-balance-sheet credit exposure related to its customers. |
Inventories | (g) Inventories The Group collects, tests, freezes and stores donated umbilical cord blood for future transplantation or research purposes in return for a fee. Collection, testing and processing costs attributable to the processing of donated umbilical cord blood are capitalized as inventories, stated at the lower of cost or net realizable value on a weighted-average basis, and recognized as direct costs when revenue is recognized. Cost comprises direct materials, direct labor and an allocation of production overheads. Inventories that are not expected to be realized within 12 months from the balance sheet date are classified as non-current assets. Consumables and supplies are included in inventories and classified as current assets. |
Property, plant and equipment | (h) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation on property, plant and equipment is calculated based on the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the assets as follows: Buildings 37.5 – 50 years Leasehold improvements Shorter of the lease term or estimated useful lives of 10 years Machineries 5 – 10 years Motor vehicles 5 years Furniture, fixtures and office equipment 3 – 5 years No depreciation expense is provided in respect of construction-in-progress. Depreciation of property, plant and equipment attributable to the processing of donated umbilical cord blood for future transplantation is capitalized as part of inventories, and is expensed to direct costs when revenue is recognized. |
Intangible assets | (i) Intangible assets Intangible assets represent the operating rights to operate cord blood banks and are stated at the fair value on the date of acquisition less accumulated amortization. Where payment for an operating right is non-deductible for tax purpose, the simultaneous equations method is used to record the assigned value of the asset and the related deferred tax liability, such that the carrying amount of the asset upon initial recognition less deferred tax liability recognized equals the amount paid for the asset. Amortization expense is recognized on a straight-line basis over the estimated useful life of the operating rights of 30 years. |
Impairment of long-lived assets | (j) Impairment of long-lived assets Long-lived assets, including property, plant and equipment and intangible assets with finite useful lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flows models, quoted market values and third-party independent appraisals, as considered necessary. No impairment of long-lived assets was recognized for the years ended March 31, 2017, 2018 and 2019. |
Revenue recognition | (k) Revenue recognition The Group receives fees for collecting, testing, freezing and storing of cord blood units. Once the cord blood units are collected, tested, screened and successfully meet all of the required attributes, the Group freezes the units and stores them in a cryogenic freezer. Under the cord blood processing and storage agreement (the "Agreement”) signed with the customer, the Group charges separate processing fee and storage fees to the customer and such Agreement provides a storage period of eighteen years. Pursuant to the Agreement, the processing fee is non-refundable unless the cord blood is non-viable for storage, and no penalty is charged to customers for early termination of the cord blood storage service. The Group offers discount to customers from time to time. Prior to April 1, 2018, the Group recognized revenue in accordance with Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition (“ASC 605”). The Agreement is a multiple-element arrangement, which includes (i) the processing of cord blood unit and (ii) the storage of cord blood unit. The Group accounts for the arrangement under the ASC 605-25, Revenue Recognition — Multiple-Element Arrangements . In accordance with ASC 605-25, revenue arrangements that include multiple elements are analyzed to determine whether the deliverables can be divided into separate units of accounting or treated as a single unit of accounting. The consideration received is allocated among the separate units of accounting based on their relative selling prices determined based on prices of these elements as sold on a stand-alone basis, and the applicable revenue recognition criteria are applied to each of the separate units. In an arrangement with multiple deliverables, the delivered product or service shall be considered a separate unit of accounting when the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis; and (2) if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item or items is considered probable and substantially in the control of the Group. Based on evaluation of the criteria, the Group has determined that the cord blood processing services and cord blood storage services are separate units. The Group considers all reasonably available information to allocate the overall arrangement fee to cord blood processing and cord blood storage services based on their relative selling prices. The Group recognizes processing fee revenue upon successful completion of processing services and when the cord blood unit meets all the required attributes for storage, and recognizes the storage fee revenues ratably over the annual storage period. Fees derived from the provision of donated cord blood for transplantation and research are recognized when the cord blood unit is delivered and the risk of loss is transferred to the recipient. The Group’s revenues are net of value-added tax collected on behalf of tax authorities at 6% on the invoiced amount in respect of the services rendered. Effective April 1, 2018, the Group adopted the new guidance of Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606"), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . According to ASC 606, the Group recognizes revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The Agreement includes two promised services which are (i) the processing service of cord blood unit; and (ii) the storage service of cord blood unit. As the promise to provide the processing service to subscriber is distinct from the promise to provide the storage service in the contract, two performance obligations are identified in the Agreement. The consideration expected to be received is allocated at contract inception among the performance obligations based on their relative selling prices determined based on prices of these elements as sold on a stand-alone basis, and the applicable revenue recognition criteria are applied to each of the performance obligation. The Group considers all reasonably available information to allocate the overall arrangement fee to processing and storage services based on their relative selling prices. The Group recognizes processing fee revenue when the performance obligation is satisfied at a point in time, which is upon successful completion of processing services and when the cord blood unit meets all the required attributes for storage, and recognizes the storage fee revenues ratably over the annual storage period as the performance obligation is satisfied over time. The Group believes the methodology of recognizing storage revenues over time meaningfully depicts the timing of storage services delivered to customers as it exerts the necessary efforts to deliver such services equally over time. The revenue recognition policy adopting ASC 606 is consistent with previous accounting practice. During the years ended March 31, 2017, 2018 and 2019, the Group offered its customers three payment options: (i) Payment of the processing fee upon delivery of the cord blood unit to the Group’s premises for processing and the annual storage fee in advance at the beginning of each annual period; (ii) Payment of the processing fee upon delivery of the cord blood unit to the Group’s premises for processing and an upfront payment of storage fees for a period of eighteen years; and (iii) Payment of the processing fee by installment over multiple periods and the annual storage fee in advance at the beginning of each annual period or an upfront payment of storage fees for a period of eighteen years paid by several installments. Certain installment option includes an initial processing fee payment upon delivery of the cord blood unit to the Group’s premises for processing and an incremental annual payment for the consecutive periods, representing a surcharge to the total amount of processing fees payable under payment options (i) and (ii). Under payment option (iii), the period between fulfillment of the performance obligation of processing services and the receipt of payment is greater than a year, and a significant financing component is present. The promised amount of consideration is discounted to present value based on a discount rate reflective of a separate financing transaction between the customer and the Group, at contract inception. The significant financing component is recorded as a reduction to revenue and accounts receivable initially, with such accounts receivable discount amortized to interest income over the period to receipt of payment. Installments due for payment beyond one year are classified as non-current accounts receivable. When payment from customers occurs prior to revenue recognition, a contract liability is recorded as deferred revenue on the consolidated balance sheet. Fees derived from the provision of donated cord blood for transplantation and research are recognized upon the satisfaction of its performance obligation, which is to transfer the control of the promised cord blood unit to the recipient. The transfer of control of the cord blood unit is satisfied at a point in time, which is the delivery of the cord blood unit to the recipient and evidenced by signed acknowledgements. The Group’s revenues are net of value-added tax collected on behalf of tax authorities at 6% on the invoiced amount in respect of the services rendered. |
Research and development costs | (l) Research and development costs Research and development costs are incurred for research activities conducted to enhance collection and storage technologies, and measures to improve the results in umbilical cord blood stem cells extraction and separation. They also include research expenses on the use of cord blood stem cells in different medical treatments. Research and development costs are expensed as incurred. |
Advertising costs | (m) Advertising costs Advertising costs are expensed as incurred and included in sales and marketing expenses in the consolidated statements of comprehensive income in the amount of RMB32,331, RMB37,424 and RMB39,586 (US$5,898) for the years ended March 31, 2017, 2018 and 2019, respectively. |
Employee benefits | (n) Employee benefits Contributions to employee benefits (which are defined contribution plans) are charged to the consolidated statements of comprehensive income when the related employee service is provided. The Group does not have any defined benefit plans. |
Debt issuance costs | (o) Debt issuance costs Costs incurred by the Group that are directly attributable to the issuance of the convertible notes are deferred and charged to the consolidated statements of comprehensive income using an effective interest rate method from the date the convertible notes were issued to the earliest date the holders of the convertible notes can demand payment, which is five years. |
Income taxes | (p) Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases, tax loss carry forwards and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. The Group recognizes in the consolidated financial statements the impact of a tax position if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of comprehensive income. A deferred tax liability is not recognized for the excess of the Group's financial statements carrying amount over the tax base of its investment in a foreign subsidiary, if the subsidiary has invested or will invest the undistributed earnings indefinitely. |
Commitments and contingencies | (q) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, including legal proceedings and claims that relate to a wide range of matters, including, among others, product liability. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Earnings per share | (r) Earnings per share Basic earnings per ordinary share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income attributable to ordinary shareholders is allocated between ordinary shares and participating securities based on contractual participating rights of security to share in undistributed earnings as if all of the earnings had been distributed. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders, as adjusted to exclude any income or expenses related to dilutive ordinary equivalents shares by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period. Dilutive potential ordinary shares consist of (i) the ordinary shares issuable upon the conversion of the convertible notes applying the if-converted method; (ii) the ordinary shares issuable upon the vesting of the restricted share units (“RSU”) scheme applying the treasury stock method; and (iii) the ordinary shares issuable as scrip dividend. Dilutive potential ordinary shares in the diluted earnings per share computation are excluded to the extent that their effect is anti-dilutive. |
Share-based compensation | (s) Share-based compensation The Group recognizes share-based payments as compensation cost and measures such cost based on the grant date fair value of the equity instrument issued. Compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. |
Segment reporting | (t) Segment reporting The Group has one operating segment, as defined by ASC Topic 280, Segment Reporting , which is processing and storage of cord blood units. All of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. |
Fair value measurement | (u) Fair value measurement The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. See Note 22 to the consolidated financial statements. |
Recently issued accounting standards | (v) Recently issued accounting standards Recently adopted pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09"), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This guidance was originally effective for annual reporting and interim periods beginning after December 15, 2016 with early adoption not permitted. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which defers the effective date of ASU 2014-09 to fiscal years and interim reporting periods beginning after December 15, 2017 and permits early adoption as early as the original effective date of ASU 2014-09. The new revenue standard may be applied retrospectively to each prior period presented ("full retrospective method") or retrospectively with the cumulative effect recognized as of the date of adoption ("modified retrospective method"). The Company applied the modified retrospective method to those contracts that are not completed contracts on April 1, 2018 upon the adoption of ASU 2014-09. Results for reporting periods beginning after April 1, 2018 are presented under the new revenue recognition, while prior period amounts are not adjusted and continue to be reported in accordance with ASC 605. The adoption of this new revenue standard did not impact retained earnings as of April 1, 2018 and there are no changes between the reported results for the year ended March 31, 2019 under Topic 606 and those would have been reported under Topic 605. In January 2016, the FASB issued ASU 2016-01 which amends certain aspects of recognition, measurement, presentation and disclosure of financial statements. ASU 2016-01 requires all equity investments to be measured at fair value with changes in fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investees). ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. To further clarify ASU 2016-01, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2018-03”), in February 2018. ASU 2018-03 requires application of a prospective transition approach only for those equity investments for which the new measurement alternative is being applied. Additionally, if an entity voluntarily discontinues using the measurement alternative, the investment and all identical or similar investments of the same issuer must be measured at fair value. Public business entities with fiscal years beginning between December 15, 2017 and June 15, 2018, were not required to adopt these amendments until the interim period beginning after June 15, 2018. Early adoption was permitted. For equity securities that are accounted for under the fair value method, the adoption of these amendments is by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The adoption of this new standard adjusted the cumulative effect of change in fair value of equity securities of RMB62,316 (US$9,285) as of April 1, 2018 from accumulated other comprehensive losses to retained earnings. Decrease in fair value of equity securities of RMB57,125 (US$8,512) for the year ended March 31, 2019 was recognized as other expenses through net income. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows — Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 was effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption was permitted. The Company adopted ASU 2016-15 on April 1, 2018 and concluded that no impact on its consolidated financial statements as a result of the adoption of this guidance. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. ASU 2016-18 was effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. Early adoption was permitted, including adoption in an interim period. The standard is applied using a retrospective transition method to each period presented. The Company adopted ASU 2016-18 on April 1, 2018 and concluded that no impact on its consolidated financial statements as a result of the adoption of this guidance. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. ASU 2017-01 was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption was permitted. ASU 2017-01 is applied prospectively on or after the effective date. The Company adopted ASU 2017-01 on April 1, 2018 and concluded that no impact on its consolidated financial statements as a result of the adoption of this guidance. Unadopted pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) and subsequent amendments to the initial guidance including ASU No. 2017-13, ASU No. 2018-10, ASU No. 2018-11, ASU No. 2018-20, and ASU No. 2019-01 (collectively, “Topic 842”). Topic 842 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The standard is effective for publicly-traded companies for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. At adoption, this update will be applied using a modified retrospective transition approach, with an option to use certain transition relief. The Company expects that the adoption of Topic 842 would result in the recognition of the right-of-use assets and the lease liabilities for operating lease as of April 1, 2019 of approximately RMB6,890 and RMB5,765, respectively. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”) and subsequent amendments to the initial guidance including ASU No. 2018-19, ASU No. 2019-04, and ASU No. 2019-05 (collectively, “Topic 326”). Topic 326 requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This standard is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for annual and interim periods beginning after December 15, 2018. The Company is currently evaluating the impact of adopting ASU 2016-13 on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements of fair value measurements. The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt any removed or modified disclosures upon the issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. The Company does not expect the adoption of this standard will have material impact on its consolidated financial statements. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Summary of significant accounting policies | |
Schedule of cash and cash equivalents denominated in several currencies | March 31, 2018 2019 Original currency RMB Original currency RMB U.S. dollars 3,332 20,800 4,229 28,205 Australian dollars 1 5 4 17 Renminbi 4,175,223 4,175,223 4,951,377 4,951,377 Hong Kong dollars 67,439 53,964 19,431 16,614 Singapore dollars 129 618 333 1,648 |
Schedule of estimated useful lives of property, plant and equipment | Buildings 37.5 – 50 years Leasehold improvements Shorter of the lease term or estimated useful lives of 10 years Machineries 5 – 10 years Motor vehicles 5 years Furniture, fixtures and office equipment 3 – 5 years |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounts receivable, net | |
Schedule of accounts receivable | March 31, 2018 2019 2019 RMB RMB US$ Accounts receivable 337,567 366,214 54,568 Less: Allowance for doubtful accounts (127,940) (164,434) (24,502) Total accounts receivable, net 209,627 201,780 30,066 Representing: Current portion: - Processing fees 71,476 68,113 10,150 - Storage fees 35,001 27,465 4,092 - Others 1,341 1,345 200 107,818 96,923 14,442 Non-current portion 101,809 104,857 15,624 Total accounts receivable, net 209,627 201,780 30,066 |
Schedule of non-current accounts receivable due for payment | March 31, 2019 RMB US$ Fiscal years ending March 31, 2021 32,352 4,821 2022 33,032 4,922 2023 31,699 4,723 2024 26,343 3,925 2025 and thereafter 80,665 12,019 204,091 30,410 Less: Unearned interest (24,434) (3,640) Total non-current accounts receivable 179,657 26,770 |
Schedule of aging analysis of accounts receivable | March 31, 2018 2019 2019 RMB RMB US$ Not past due 210,009 219,216 32,664 Within one year past due 34,366 27,138 4,044 Between one to two years past due 35,742 30,255 4,508 Over two years past due 57,450 89,605 13,352 Total accounts receivable 337,567 366,214 54,568 |
Schedule of allowance for doubtful accounts | Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Balance at beginning of year 100,894 117,602 127,940 19,064 Charged to allowance for doubtful accounts 29,574 31,716 38,214 5,694 Write-off charged against the allowance for the year (12,866) (21,378) (1,720) (256) Balance at end of year 117,602 127,940 164,434 24,502 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Inventories | |
Schedule of inventories | March 31, 2018 2019 2019 RMB RMB US$ Current portion: - Consumables and supplies 27,718 27,612 4,114 Non-current portion: - Processing costs capitalized in donated umbilical cord blood 71,758 77,194 11,502 Total current and non-current inventories 99,476 104,806 15,616 |
Prepaid expenses and other re_2
Prepaid expenses and other receivables (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Prepaid expenses and other receivables | |
Schedule of prepaid expenses and other receivables | March 31, 2018 2019 2019 RMB RMB US$ Prepaid expenses 13,060 14,748 2,198 VAT tax receivables 2,062 4,411 657 Other receivables 7,154 6,373 950 Total prepaid expenses and other receivables 22,276 25,532 3,805 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, plant and equipment, net | |
Schedule of property, plant and equipment, net | March 31, 2018 2019 2019 RMB RMB US$ Buildings 598,832 600,733 89,512 Leasehold improvements 14,864 14,864 2,215 Machineries 167,310 196,123 29,223 Motor vehicles 18,210 19,246 2,868 Furniture, fixtures and equipment 50,940 53,631 7,991 Construction-in-progress 10,931 3,887 579 861,087 888,484 132,388 Less: Accumulated depreciation (308,127) (343,144) (51,130) Total property, plant and equipment, net 552,960 545,340 81,258 |
Schedule of depreciation expense of property, plant and equipment | Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Direct costs 29,883 30,055 30,848 4,597 Research and development 1,372 1,138 1,358 202 Sales and marketing 3,051 3,217 3,371 502 General and administrative 11,554 11,559 12,167 1,813 Total depreciation expense 45,860 45,969 47,744 7,114 |
Non-current deposits (Tables)
Non-current deposits (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Non-current deposits | |
Schedule of non-current deposits | March 31, Note 2018 2019 2019 RMB RMB US$ Investment deposit (i) 210,088 224,475 33,448 Deposit for purchase of machineries 23,027 12,244 1,824 Total non-current deposits 233,115 236,719 35,272 Note: (i) The Group previously entered into a Letter of Intent with a third party (the “Potential Seller”) for a potential acquisition of the equity interests in a company in the healthcare industry with a refundable earnest money deposit of US$33,660. Due to the change in circumstances, the parties entered into a subsequent agreement in May 2017 regarding the return of the earnest money deposit, with the Potential Seller providing a performance guarantee to the Company. |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Intangible assets, net | |
Schedule of components of intangible assets, net | March 31, 2018 2019 2019 RMB RMB US$ Cord blood bank operating rights 138,628 138,628 20,656 Less: Accumulated amortization (36,563) (41,184) (6,136) Total intangible assets, net 102,065 97,444 14,520 |
Schedule of estimated amortization expenses | March 31, 2019 RMB US$ Fiscal years ending March 31, 2020 4,621 689 2021 4,621 689 2022 4,621 689 2023 4,621 689 2024 4,621 689 2025 and thereafter 74,339 11,075 Total amortization expenses 97,444 14,520 |
Investment in equity securiti_2
Investment in equity securities at fair value (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Investment in equity securities at fair value | |
Schedule of listed equity securities | March 31, 2018 2019 2019 RMB RMB US$ Listed equity securities Cordlife Group Limited - listed on Singapore Exchange 91,632 49,270 7,341 Listed fund investment 62,250 58,092 8,656 153,882 107,362 15,997 |
Other equity investment (Tables
Other equity investment (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Other equity investment | |
Schedule of other equity investment | March 31, 2018 2019 2019 RMB RMB US$ Unlisted equity securities 189,129 189,129 28,181 |
Accrued expenses and other pa_2
Accrued expenses and other payables (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accrued expenses and other payables | |
Schedule of accrued expenses and other payables | March 31, Note 2018 2019 2019 RMB RMB US$ Insurance premium received on behalf of insurance company (i) 33,232 36,987 5,511 Other tax payables 1,802 2,663 397 Accrued salaries, bonus and welfare expenses 17,524 17,926 2,671 Accrued consultancy and professional fees 4,785 3,945 588 Payable for property, plant and equipment 712 1,198 179 Other payables (ii) 14,968 17,258 2,572 Total accrued expenses and other payables 73,023 79,977 11,918 Notes: (i) The Group has an agreement with an insurance company under which the Group collects insurance premiums on behalf of the insurance company from customers who store umbilical cord blood in the Group’s cord blood bank and are enrolled in the insurance scheme of the insurance company. Thus, the amount of gross storage fees includes insurance premiums collected on behalf of the insurance company. The amount attributable to the insurance premiums is included in current and non-current (collected and payable over one year) other payables and is not recognized as revenue. (ii) Other payables mainly include fee refundable to customers whose cord blood unit does not qualify for subsequent storage and other procurement payables. |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Deferred revenue | |
Schedule of deferred revenue | March 31, Note 2018 2019 2019 RMB RMB US$ Payments made by customers prior to completion of cord blood processing services (i) 128,192 185,752 27,677 Unearned storage fees (b) 2,112,195 2,384,676 355,329 Total current and non-current deferred revenue (ii) 2,240,387 2,570,428 383,006 Representing: Current portion 366,373 461,986 68,838 Non-current portion 1,874,014 2,108,442 314,168 Total current and non-current deferred revenue 2,240,387 2,570,428 383,006 Note: (i) The balance of payments made by customers prior to completion of cord blood processing services represented payments received from customers during the year upon the signing of the Agreement but before the performance obligation for processing services is satisfied and before the commencement of storage. Of the balance of RMB128,192 as of March 31, 2018, RMB69,294 (US$10,325) was recognized as revenues for the year ended March 31, 2019 and RMB58,898 (US$8,776) from prior year’s balance was reclassified as unearned storage fees which was included in the increase in unearned storage fees during the year in the analysis disclosed in Note 13(b). (ii) Of the total balances of current and non-current deferred revenue, the Group expects to recognize RMB386,068 (US$57,526) in fiscal year 2020, RMB174,145 (US$25,948) in fiscal year 2021, RMB173,216 (US$25,810) in fiscal year 2022, and RMB1,836,999 (US$273,722) in the fiscal year 2023 and thereafter, upon the completion of the Group’s performance obligations on related processing and storage services. (b) An analysis of unearned storage fees is as follows: Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Balance at beginning of year 1,482,074 1,763,389 2,112,195 314,727 Increase in unearned storage fees during the year 559,588 674,015 658,262 98,085 Credited to income - From prior year's balance (160,835) (193,810) (238,181) (35,490) - From increase in unearned storage fees during the year (117,438) (131,399) (147,600) (21,993) Balance at end of year 1,763,389 2,112,195 2,384,676 355,329 |
Unearned storage fees | |
Deferred revenue | |
Schedule of deferred revenue | Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Balance at beginning of year 1,482,074 1,763,389 2,112,195 314,727 Increase in unearned storage fees during the year 559,588 674,015 658,262 98,085 Credited to income - From prior year's balance (160,835) (193,810) (238,181) (35,490) - From increase in unearned storage fees during the year (117,438) (131,399) (147,600) (21,993) Balance at end of year 1,763,389 2,112,195 2,384,676 355,329 |
Convertible notes, net (Tables)
Convertible notes, net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Convertible notes, net | |
Schedule of interest relating to the Notes | Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ KKR Notes interest incurred 65,130 1,454 — — GM Notes interest incurred 48,863 1,113 — — Amortization of debt issuance costs 3,947 690 — — Total interest expense 117,940 3,257 — — |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenues | |
Schedule of revenue by category | Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Cord blood processing fees 477,243 604,502 592,123 88,229 Cord blood storage fees 278,273 325,209 385,781 57,483 Fees derived from the provision of donated cord blood for transplantation and research and others 4,462 7,057 8,850 1,319 Total revenues 759,978 936,768 986,754 147,031 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income tax | |
Schedule of income before income tax expense | Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ The PRC 365,448 435,576 447,195 66,634 Non-PRC - Hong Kong (36) (45) (65) (9) - British Virgin Islands (2,985) (56) (56,616) (8,436) - Cayman Islands (196,116) (131,940) (34,053) (5,074) Income before income tax expense 166,311 303,535 356,461 53,115 |
Schedule of income tax expense | Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Current tax expense 58,767 72,591 75,948 11,317 Deferred tax expense (21,145) (9,935) (14,688) (2,189) Total income tax expense 37,622 62,656 61,260 9,128 |
Schedule of the reconciliation of expected income tax to actual income tax expense | Year ended March 31, Note 2017 2018 2019 2019 RMB RMB RMB US$ Income before income tax expense 166,311 303,535 356,461 53,115 Computed “expected” tax expense 41,578 75,884 89,115 13,279 Non-PRC entities not subject to income tax - Hong Kong 9 11 16 2 - British Virgin Islands 746 14 14,154 2,109 - Cayman Islands 49,029 32,985 8,513 1,268 PRC dividend withholding tax (14,300) — — — Preferential tax rates (i) (39,931) (49,093) (51,428) (7,663) Others 491 2,855 890 133 Actual income tax expense 37,622 62,656 61,260 9,128 Note: (i) Per share impact of preferential tax rates is RMB0.55, RMB0.43 and RMB0.42 (US$0.06) for the years ended March 31, 2017, 2018 and 2019, respectively. |
Schedule of deferred tax assets/(liabilities) | March 31, 2018 2019 2019 RMB RMB US$ Deferred tax assets: Accounts receivable 21,086 32,929 4,906 Non-current accounts receivable 11,725 12,879 1,919 Inventories 7,410 7,834 1,167 Others 1,713 1,858 277 Deferred tax assets 41,934 55,500 8,269 Deferred tax liabilities: Deferred revenue (57) (48) (7) Property, plant and equipment (5,694) (5,736) (855) Intangible assets (25,516) (24,361) (3,629) Deferred tax liabilities (31,267) (30,145) (4,491) Net deferred tax assets 10,667 25,355 3,778 Classification on consolidated balance sheets: Deferred tax assets 31,295 44,981 6,702 Deferred tax liabilities (20,628) (19,626) (2,924) Net deferred tax assets 10,667 25,355 3,778 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Share-based compensation | |
Schedule of share-based compensation expense | Year ended March 31, 2017 2018 2019 2019 RMB RMB RMB US$ Direct costs 1,565 1,920 — — Sales and marketing 17,408 (1,534) — — General and administrative 43,268 83,882 — — Total share-based compensation expense 62,241 84,268 — — |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings per share | |
Schedule of basic and diluted earnings per share | Year ended March 31, Note 2017 2018 2019 2019 RMB RMB RMB US$ Numerator: Net income attributable to the Company’s shareholders 126,190 237,098 291,124 43,380 Earnings allocated to participating convertible notes (i) (10,019) — — — Net income for basic and diluted net income per share 116,171 237,098 291,124 43,380 Denominator: Weighted average ordinary shares outstanding for basic net income per share 73,003,248 112,938,635 121,270,491 121,270,491 Dilutive effect of RSUs (ii) — 6,390,797 — — Dilutive effect of scrip dividend (iii) — — 151,091 151,091 Weighted average ordinary shares outstanding for diluted net income per share 73,003,248 119,329,432 121,421,582 121,421,582 Earnings per share - Basic 1.59 2.10 2.40 0.36 - Diluted (ii) & (iii) 1.59 1.99 2.40 0.36 Notes: (i) For the years ended March 31, 2017 and 2018, the outstanding convertible notes provide the holders with the ability to participate in any excess cash dividend. Excess cash dividend means any cash dividend to holders of shares that, together with all other cash dividends previously paid to holders of shares in the same financial year, exceeds, on a per share basis, an amount equal to the interest that has accrued and shall accrue at 7% coupon interest rate in such financial year divided by the number of shares into which the notes are convertible at the conversion price then in effect on the relevant record date. Therefore, net income attributable to the Company is reduced by such allocated earnings to participating convertible notes for the year ended March 31, 2017 in both basic and diluted net income per share computation. For the year ended March 31, 2018, as there were no excess cash dividend, no earnings were allocated to participating convertible notes. All outstanding convertible notes were fully converted into the Company’s ordinary shares in the year ended March 31, 2018. The Company has no outstanding convertible notes subsequent to such conversion. (ii) During the years ended March 31, 2017 and 2018, the Company had potentially dilutive ordinary shares of 40,521,494 representing shares issuable upon conversion of the outstanding convertible notes (see Note 14). Such potentially dilutive ordinary shares were excluded from diluted earnings per share computation because their effects would have been anti-dilutive. During the year ended March 31, 2017, the Company had potential dilutive ordinary shares of 7,300,000 represented shares issuable upon vesting of the RSUs, which were excluded from diluted earnings per share computation as the performance condition was not met as of the year end. For the year ended March 31, 2018, potential dilutive ordinary shares included 6,390,797 weighted average incremental shares of the RSUs applying the treasury stock method. (iii) During the year ended March 31, 2019, included in the diluted earnings per share computation was the potential dilutive ordinary shares of 151,091 represented shares issuable as scrip dividend. |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Related party transactions | |
Schedule of related party transactions | Year ended March 31, Note 2017 2018 2019 2019 RMB RMB RMB US$ Purchase of raw materials (i) 36,405 18,759 — — Purchase of raw materials and machineries (ii) — 19,419 — — Consultancy expenses (iii) 4,337 4,481 — — Interest expenses 14 113,993 2,567 — — Consultancy income (iv) 16,786 — — — Data access income (v) 26,316 — — — Notes: (i) During the year ended March 31, 2017 and the period from April 1, 2017 to January 31, 2018, the Group purchased raw materials from China Bright Group Co. Limited (“China Bright”), a subsidiary of GMHL, of RMB36,405 and RMB18,759, respectively. Since February 1, 2018, China Bright was no longer a related party of the Group. (ii) During the period from April 1, 2017 to January 31, 2018, the Group purchased raw materials and machineries from Beijing Jingjing Medical Equipment Co., Ltd. ("Beijing Jingjing") of RMB19,419. Since February 1, 2018, Beijing Jingjing was no longer a related party of the Group. (iii) During the year ended March 31, 2017 and the period from April 1, 2017 to January 31, 2018, consultancy services were provided by Golden Meditech (S) Pte Ltd. (“GM(S)”), a subsidiary of GMHL, to the Group for an amount of RMB4,337 and RMB4,481, respectively. Since February 1, 2018, GM(S) was no longer a related party of the Group. (iv) During the year ended March 31, 2017, the Company performed a consultation service related to the usage of cord blood processing devices and consumables and recorded RMB16,786 as a reduction of direct costs. GMHL is an exclusive distributor of such devices and consumables in the PRC and the Company is a major customer of GMHL. Since the consideration of the consultation service cannot be sufficiently separated from the Company’s purchases of such devices and consumables and the fair value of the benefit provided for cannot be reasonably estimated either, the consideration received from GMHL was recorded as a reduction of direct costs as associated cord blood processing devices and consumables which the Company purchased from GMHL were consumed and included in direct costs in prior years. (v) During the year ended March 31, 2017, the Company entered into a collaboration agreement with GMHL. Utilizing the Company’s existing donated cord blood samples resources, the Company provided GMHL with exclusive access to certain data derived from a small portion of donated cord blood samples and has no further obligation to GMHL, in return for a fee of RMB26,316. |
Business and credit concentra_2
Business and credit concentrations (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Business and credit concentrations | |
Schedule of major suppliers | Year ended March 31, Suppliers Note 2017 2018 2019 RMB % RMB % RMB US$ % Beijing Jingjing Medical Equipment Co., Ltd. (i) — — — — 23,741 3,538 30 China Bright Group Co. Limited (ii) 36,405 52 18,759 24 — — — Hangzhou Baitong Biological Technology Co., Ltd. (iii) — — 7,670 10 — — — Beijing Chengmao Xingye Technology Development Co., Ltd. (iv) — — 7,711 10 — — — Total 36,405 52 34,140 44 23,741 3,538 30 Notes: (i) The purchases from Beijing Jingjing were less than 10% of gross purchases for the years ended March 31, 2017 and 2018. (ii) The purchases from China Bright Group Co. Limited were less than 10% of gross purchases for the year ended March 31, 2019. (iii) The purchases from Hangzhou Baitong Biological Technology Co., Ltd were less than 10% of gross purchases for the years ended March 31, 2017 and 2019. (iv) The purchases from Beijing Chengmao Xingye Technology Development Co., Ltd. were less than 10% of gross purchases for the years ended March 31, 2017 and 2019. The following are individual accounts payable due to major suppliers that exceeded 10% of outstanding accounts payable balance in the respective years: March 31, 2018 2019 RMB % RMB US$ % Beijing Jingjing Medical Equipment Co., Ltd. — — 10,715 1,597 32 Beijing Probe Biological Technology Co., Ltd. 1,141 10 — — — 1,141 10 10,715 1,597 32 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and contingencies | |
Schedule of future minimum payments under non-cancellable operating leases | March 31, 2019 RMB US$ Fiscal years ending March 31, 2020 2,196 327 2021 1,832 273 2022 1,500 224 2023 1,125 168 Total payments 6,653 992 |
Schedule of future minimum payments under the cooperation agreements | March 31, 2019 RMB US$ Fiscal years ending March 31, 2020 6,200 924 2021 6,200 924 2022 4,450 663 2023 3,200 477 2024 3,200 477 2025 and thereafter 17,867 2,662 Total payments 41,117 6,127 |
Principal activities, reorgan_2
Principal activities, reorganization and reverse recapitalization, and basis of presentation (Details) | Mar. 31, 2019item |
Principal activities | |
Number of cord blood banking licenses issued that are held by the Company | 3 |
Beijing municipality | |
Principal activities | |
Number of cord blood banking licenses issued that are held by the Company | 1 |
Guangdong province | |
Principal activities | |
Number of cord blood banking licenses issued that are held by the Company | 1 |
Zhejiang province | |
Principal activities | |
Number of cord blood banking licenses issued that are held by the Company | 1 |
Summary of significant accoun_4
Summary of significant accounting policies - Foreign currency translation (Details) | Mar. 29, 2019¥ / $ |
Summary of significant accounting policies | |
Foreign currency convenience translation rate | 6.7112 |
Summary of significant accoun_5
Summary of significant accounting policies - Cash and cash equivalents, and Accounts receivable (Details) ¥ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Mar. 31, 2019SGD ($) | Mar. 31, 2019HKD ($) | Mar. 31, 2019AUD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018SGD ($) | Mar. 31, 2018HKD ($) | Mar. 31, 2018AUD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | |
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents | $ 744,706 | ¥ 4,997,861 | ¥ 4,250,610 | |||||||
Accounts receivable | ||||||||||
Age of accounts receivable, local tax requirements on the write-offs of doubtful accounts (in year) | 3 years | |||||||||
PRC | ||||||||||
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents | 737,774 | 4,951,352 | 4,175,205 | |||||||
U.S. dollar | ||||||||||
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents | $ 4,229 | 28,205 | $ 3,332 | 20,800 | ||||||
Australian dollars | ||||||||||
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents | $ 4 | 17 | $ 1 | 5 | ||||||
Renminbi | ||||||||||
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents | 4,951,377 | 4,175,223 | ||||||||
Hong Kong dollars | ||||||||||
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents | $ 19,431 | 16,614 | $ 67,439 | 53,964 | ||||||
Singapore dollars | ||||||||||
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents | $ 333 | ¥ 1,648 | $ 129 | ¥ 618 |
Summary of significant accoun_6
Summary of significant accounting policies - Property, plant and equipment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Property, plant and equipment, net | ||||
Depreciation expense | $ 7,114 | ¥ 47,744 | ¥ 45,969 | ¥ 45,860 |
Buildings | Minimum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 37 years 6 months | 37 years 6 months | ||
Buildings | Maximum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 50 years | 50 years | ||
Leasehold improvements | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 10 years | 10 years | ||
Machineries | Minimum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 5 years | 5 years | ||
Machineries | Maximum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 10 years | 10 years | ||
Motor vehicles | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 5 years | 5 years | ||
Furniture, fixtures and office equipment | Minimum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 3 years | 3 years | ||
Furniture, fixtures and office equipment | Maximum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 5 years | 5 years | ||
Construction-in-progress | ||||
Property, plant and equipment, net | ||||
Depreciation expense | ¥ 0 |
Summary of significant accoun_7
Summary of significant accounting policies - Others (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Mar. 31, 2019USD ($)itempayment | Mar. 31, 2019CNY (¥)itempayment | Mar. 31, 2018CNY (¥)payment | Mar. 31, 2017CNY (¥)payment | Apr. 01, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | |
Estimated useful life of the operating rights | 30 years | 30 years | |||||
Impairment of long-lived assets | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | ||||
Agreement with customers, blood storage period | 18 years | 18 years | |||||
Number of promised services | item | 2 | 2 | |||||
Number of performance obligations under the Agreement | item | 2 | 2 | |||||
Number of customer payment options | payment | 3 | 3 | 3 | 3 | |||
Value-added tax rate (as a percent) | 6.00% | 6.00% | |||||
Advertising and promotion costs | $ 5,898 | ¥ 39,586 | ¥ 37,424 | ¥ 32,331 | |||
Number of operating segments | item | 1 | 1 | |||||
Cumulative effect of change in fair value of equity securities | $ | $ 62,316 | ||||||
Decrease in fair value of equity securities | $ 8,512 | ¥ 57,125 | |||||
Right-of-use-assets | ¥ | ¥ 6,890 | ||||||
Lease liabilities for operating lease | ¥ | ¥ 5,765 | ||||||
Convertible notes | |||||||
Debt issuance costs, amortization period | 5 years | ||||||
ASU 2016-01 | Accumulated other comprehensive income/(losses) | |||||||
Cumulative effect of change in fair value of equity securities | (9,285) | ¥ (62,316) | |||||
ASU 2016-01 | Retained earnings | |||||||
Cumulative effect of change in fair value of equity securities | $ 9,285 | ¥ 62,316 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Accounts receivable, net | ||||||
Accounts receivable | $ 54,568 | ¥ 366,214 | ¥ 337,567 | |||
Less: Allowance for doubtful accounts | (24,502) | (164,434) | $ (19,064) | (127,940) | ¥ (117,602) | ¥ (100,894) |
Total accounts receivable, net | 30,066 | 201,780 | 209,627 | |||
Accounts receivable, current portion | 14,442 | 96,923 | 107,818 | |||
Accounts receivable, non-current portion | 15,624 | 104,857 | 101,809 | |||
Cord blood processing fees | ||||||
Accounts receivable, net | ||||||
Accounts receivable, current portion | 10,150 | 68,113 | 71,476 | |||
Cord blood storage fees | ||||||
Accounts receivable, net | ||||||
Accounts receivable, current portion | 4,092 | 27,465 | 35,001 | |||
Fees derived from the provision of donated cord blood for transplantation and research and others | ||||||
Accounts receivable, net | ||||||
Accounts receivable, current portion | $ 200 | ¥ 1,345 | ¥ 1,341 |
Accounts receivable, net - Non
Accounts receivable, net - Non current amounts (Details) - Mar. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Non-current accounts receivable | ||
2021 | $ 4,821 | ¥ 32,352 |
2022 | 4,922 | 33,032 |
2023 | 4,723 | 31,699 |
2024 | 3,925 | 26,343 |
2025 and thereafter | 12,019 | 80,665 |
Non-current gross accounts receivable due for payment | 30,410 | 204,091 |
Less: Unearned interest | (3,640) | (24,434) |
Total non-current accounts receivable | $ 26,770 | ¥ 179,657 |
Accounts receivable, net - Agin
Accounts receivable, net - Aging (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Aging of accounts receivable based on due date | |||
Total accounts receivable | $ 54,568 | ¥ 366,214 | ¥ 337,567 |
Not past due | |||
Aging of accounts receivable based on due date | |||
Total accounts receivable | 32,664 | 219,216 | 210,009 |
Within one year past due | |||
Aging of accounts receivable based on due date | |||
Total accounts receivable | 4,044 | 27,138 | 34,366 |
Between one to two years past due | |||
Aging of accounts receivable based on due date | |||
Total accounts receivable | 4,508 | 30,255 | 35,742 |
Over two years past due | |||
Aging of accounts receivable based on due date | |||
Total accounts receivable | $ 13,352 | ¥ 89,605 | ¥ 57,450 |
Accounts receivable, net - Allo
Accounts receivable, net - Allowance for doubtful accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Analysis of the allowance for doubtful accounts | ||||
Balance at beginning of year | $ 19,064 | ¥ 127,940 | ¥ 117,602 | ¥ 100,894 |
Charged to allowance for doubtful accounts | 5,694 | 38,214 | 31,716 | 29,574 |
Write-off charged against the allowance for the year | (256) | (1,720) | (21,378) | (12,866) |
Balance at end of year | $ 24,502 | ¥ 164,434 | ¥ 127,940 | ¥ 117,602 |
Inventories - Schedule (Details
Inventories - Schedule (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Inventories | |||
Current portion: - Consumables and supplies | $ 4,114 | ¥ 27,612 | ¥ 27,718 |
Non-current portion: - Processing costs capitalized in donated umbilical cord blood | 11,502 | 77,194 | 71,758 |
Total current and non-current inventories | 15,616 | 104,806 | 99,476 |
Consumables and supplies | |||
Inventories | |||
Current portion: - Consumables and supplies | 4,114 | 27,612 | 27,718 |
Processing costs capitalized in donated umbilical cord blood | |||
Inventories | |||
Non-current portion: - Processing costs capitalized in donated umbilical cord blood | $ 11,502 | ¥ 77,194 | ¥ 71,758 |
Inventories - Provision (Detail
Inventories - Provision (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Inventories | |||
Write-down for inventories | ¥ 0 | ¥ 0 | ¥ 0 |
Weighted average remaining useful life of donated cord blood units | 18 years | ||
The estimated increase per annum in number of successful matches of donated units (as a percent) | 7.00% |
Prepaid expenses and other re_3
Prepaid expenses and other receivables (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Prepaid expenses and other receivables | |||
Prepaid expenses | $ 2,198 | ¥ 14,748 | ¥ 13,060 |
VAT tax receivables | 657 | 4,411 | 2,062 |
Other receivables | 950 | 6,373 | 7,154 |
Total prepaid expenses and other receivables | $ 3,805 | ¥ 25,532 | ¥ 22,276 |
Property, plant and equipment_3
Property, plant and equipment, net - Schedule (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Property, plant and equipment, net | |||
Property, plant and equipment | $ 132,388 | ¥ 888,484 | ¥ 861,087 |
Less: Accumulated depreciation | (51,130) | (343,144) | (308,127) |
Total property, plant and equipment, net | 81,258 | 545,340 | 552,960 |
Buildings | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 89,512 | 600,733 | 598,832 |
Leasehold improvements | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 2,215 | 14,864 | 14,864 |
Machineries | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 29,223 | 196,123 | 167,310 |
Motor vehicles | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 2,868 | 19,246 | 18,210 |
Furniture, fixtures and equipment | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 7,991 | 53,631 | 50,940 |
Construction-in-progress | |||
Property, plant and equipment, net | |||
Property, plant and equipment | $ 579 | ¥ 3,887 | ¥ 10,931 |
Property, plant and equipment_4
Property, plant and equipment, net - Depreciation expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Property, plant and equipment, net | ||||
Depreciation expense | $ 7,114 | ¥ 47,744 | ¥ 45,969 | ¥ 45,860 |
Direct costs | ||||
Property, plant and equipment, net | ||||
Depreciation expense | 4,597 | 30,848 | 30,055 | 29,883 |
Research and development | ||||
Property, plant and equipment, net | ||||
Depreciation expense | 202 | 1,358 | 1,138 | 1,372 |
Sales and marketing | ||||
Property, plant and equipment, net | ||||
Depreciation expense | 502 | 3,371 | 3,217 | 3,051 |
General and administrative | ||||
Property, plant and equipment, net | ||||
Depreciation expense | $ 1,813 | ¥ 12,167 | ¥ 11,559 | ¥ 11,554 |
Non-current deposits (Details)
Non-current deposits (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Investment deposit | $ 33,448 | ¥ 224,475 | ¥ 210,088 |
Deposit for purchase of machineries | 1,824 | 12,244 | 23,027 |
Total non-current deposits | 35,272 | ¥ 236,719 | ¥ 233,115 |
Potential Seller | |||
Investment deposit | $ 33,660 |
Intangible assets, net - Schedu
Intangible assets, net - Schedule (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Intangible assets, net | |||
Cord blood bank operating rights | $ 20,656 | ¥ 138,628 | ¥ 138,628 |
Less: Accumulated amortization | (6,136) | (41,184) | (36,563) |
Total intangible assets, net | $ 14,520 | ¥ 97,444 | ¥ 102,065 |
Intangible assets, net - Narrat
Intangible assets, net - Narrative (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2011USD ($) | Feb. 28, 2011CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥) | |
Finite-Lived Intangible Assets | |||||||
Estimated useful life of operating rights | 30 years | 30 years | |||||
Amortization expense of operating rights | $ 689 | ¥ 4,621 | ¥ 4,621 | ¥ 4,621 | |||
Deferred tax liability | $ 3,629 | 25,516 | ¥ 24,361 | ||||
Period of expected cash flow | 30 years | 30 years | |||||
Guangdong province | |||||||
Finite-Lived Intangible Assets | |||||||
Estimated useful life of operating rights | 30 years | 30 years | |||||
Amortization expense of operating rights | $ 145 | ¥ 971 | 971 | 971 | |||
Zhejiang province | |||||||
Finite-Lived Intangible Assets | |||||||
Estimated useful life of operating rights | 30 years | 30 years | |||||
Amortization expense of operating rights | $ 544 | ¥ 3,650 | ¥ 3,650 | ¥ 3,650 | |||
Consideration for operating rights | $ 12,500 | ¥ 82,124 | |||||
Value of acquired operating rights | 109,499 | ||||||
Deferred tax liability | ¥ 27,375 | ||||||
Guangdong and Zhejiang | |||||||
Finite-Lived Intangible Assets | |||||||
General renewal period with provincial authorities | 3 years | 3 years | |||||
Beijing municipality | |||||||
Finite-Lived Intangible Assets | |||||||
General renewal period with provincial authorities | 9 years | 9 years |
Intangible assets, net - Estima
Intangible assets, net - Estimated amortization expense (Details) - Mar. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Intangible assets, net | ||
2020 | $ 689 | ¥ 4,621 |
2021 | 689 | 4,621 |
2022 | 689 | 4,621 |
2023 | 689 | 4,621 |
2024 | 689 | 4,621 |
2025 and thereafter | 11,075 | 74,339 |
Total amortization expenses | $ 14,520 | ¥ 97,444 |
Investment in equity securiti_3
Investment in equity securities at fair value - Schedule (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Schedule of listed equity securities | |||
Listed equity securities | $ 15,997 | ¥ 107,362 | ¥ 153,882 |
Listed equity securities | CGL | |||
Schedule of listed equity securities | |||
Listed equity securities | 7,341 | 49,270 | 91,632 |
Listed fund investment | |||
Schedule of listed equity securities | |||
Listed equity securities | $ 8,656 | ¥ 58,092 | ¥ 62,250 |
Investment in equity securiti_4
Investment in equity securities at fair value - Narrative (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2018CNY (¥) | Mar. 31, 2019USD ($)shares | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017USD ($)shares | Mar. 31, 2017CNY (¥)shares | Mar. 31, 2019CNY (¥)shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2018CNY (¥)shares | |
Schedule of listed equity securities | |||||||||
Proceeds from disposal of available-for-sale equity securities | ¥ 217 | ||||||||
Impairment loss on available-for-sale equity securities | ¥ 0 | 0 | ¥ 2,533 | ||||||
Consideration made to acquire available-for-sale equity securities | 66,154 | ||||||||
Investments in equity securities, cost basis | $ 14,932 | ¥ 100,213 | ¥ 100,213 | ||||||
Cumulative effect of accounting change | $ | $ 62,316 | ||||||||
Decrease in fair value of equity securities | 8,512 | 57,125 | |||||||
Dividend income | 145 | 976 | 634 | ¥ 45 | |||||
The aggregate fair values of the investments in securities | $ 15,997 | ¥ 107,362 | ¥ 153,882 | ||||||
Life Corporation Limited - listed on Australian Securities Exchange | |||||||||
Schedule of listed equity securities | |||||||||
Ordinary shares held | shares | 8,122,222 | 8,122,222 | |||||||
Proceeds from disposal of available-for-sale equity securities | ¥ 217 | ||||||||
CGL | |||||||||
Schedule of listed equity securities | |||||||||
Ordinary shares held | shares | 25,516,666 | 25,516,666 | 25,516,666 | 25,516,666 | |||||
Percentage equity interest owned | 10.10% | 10.10% | 10.10% | 10.10% | |||||
Unrealized holding gains | 62,613 | ||||||||
Dividend income | $ 145 | ¥ 976 | 634 | ¥ 0 | |||||
Listed fund investment | |||||||||
Schedule of listed equity securities | |||||||||
Consideration made to acquire available-for-sale equity securities | $ 10,000 | ¥ 66,154 | |||||||
Other investment | |||||||||
Schedule of listed equity securities | |||||||||
Unrealized holding losses | ¥ 297 | ||||||||
ASU 2016-01 | Accumulated other comprehensive income/(losses) | |||||||||
Schedule of listed equity securities | |||||||||
Cumulative effect of accounting change | $ (9,285) | ¥ (62,316) | |||||||
ASU 2016-01 | Retained earnings | |||||||||
Schedule of listed equity securities | |||||||||
Cumulative effect of accounting change | $ 9,285 | ¥ 62,316 |
Other equity investment (Detail
Other equity investment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥) | |
Investments | |||||
Unlisted equity securities | $ 28,181 | ¥ 189,129 | ¥ 189,129 | ||
Dividend income | $ 145 | ¥ 976 | ¥ 634 | ¥ 45 | |
Qilu Stem Cells | |||||
Investments | |||||
Percentage equity interest acquired | 24.00% | 24.00% | 24.00% | ||
Dividend income | ¥ 0 | ¥ 0 | ¥ 0 |
Bank loan (Details)
Bank loan (Details) - Short-term bank loan ¥ in Thousands | Oct. 09, 2015CNY (¥) |
Bank loan | |
Amount borrowed | ¥ 60,000 |
Term of the loan | 1 year |
Accrued expenses and other pa_3
Accrued expenses and other payables (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) |
Accrued expenses and other payables | |||
Insurance premium received on behalf of insurance company | $ 5,511 | ¥ 36,987 | ¥ 33,232 |
Other tax payables | 397 | 2,663 | 1,802 |
Accrued salaries, bonus and welfare expenses | 2,671 | 17,926 | 17,524 |
Accrued consultancy and professional fees | 588 | 3,945 | 4,785 |
Payable for property, plant and equipment | 179 | 1,198 | 712 |
Other payables | 2,572 | 17,258 | 14,968 |
Total accrued expenses and other payables | $ 11,918 | ¥ 79,977 | ¥ 73,023 |
Deferred revenue - Composition
Deferred revenue - Composition (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2016CNY (¥) | |
Deferred revenue | ||||||||
Current portion | $ 68,838 | ¥ 461,986 | ¥ 366,373 | |||||
Non-current portion | 314,168 | 2,108,442 | 1,874,014 | |||||
Total current and non-current deferred revenue | 383,006 | 2,570,428 | 2,240,387 | |||||
Revenue expected to be recognized in 2020 | 57,526 | ¥ 386,068 | ||||||
Revenue expected to be recognized in 2021 | 25,948 | 174,145 | ||||||
Revenue expected to be recognized in 2022 | 25,810 | 173,216 | ||||||
Revenue expected to be recognized in 2023 and thereafter | 273,722 | 1,836,999 | ||||||
Payments made by customers prior to completion of cord blood processing services | ||||||||
Deferred revenue | ||||||||
Total current and non-current deferred revenue | 27,677 | 185,752 | 128,192 | |||||
Credited to income from prior year's balance | 10,325 | 69,294 | ||||||
Unearned storage fees | ||||||||
Deferred revenue | ||||||||
Total current and non-current deferred revenue | 355,329 | $ 314,727 | ¥ 1,763,389 | ¥ 2,384,676 | ¥ 2,112,195 | ¥ 1,482,074 | ||
Credited to income from prior year's balance | $ 35,490 | ¥ 238,181 | ¥ 193,810 | ¥ 160,835 | ||||
Prior year's deferred revenue balance reclassified as unearned storage fees | $ 8,776 | ¥ 58,898 |
Deferred revenue - Rollforward
Deferred revenue - Rollforward (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Analysis of deferred revenue | ||||
Balance at beginning of year | ¥ 2,240,387 | |||
Balance at end of year | $ 383,006 | 2,570,428 | ¥ 2,240,387 | |
Unearned storage fees | ||||
Analysis of deferred revenue | ||||
Balance at beginning of year | 314,727 | 2,112,195 | 1,763,389 | ¥ 1,482,074 |
Increase in unearned storage fees during the year | 98,085 | 658,262 | 674,015 | 559,588 |
Credited to income from prior year's balance | (35,490) | (238,181) | (193,810) | (160,835) |
Credited to income from increase in unearned storage fees during the year | (21,993) | (147,600) | (131,399) | (117,438) |
Balance at end of year | $ 355,329 | ¥ 2,384,676 | ¥ 2,112,195 | ¥ 1,763,389 |
Convertible notes, net (Details
Convertible notes, net (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | May 31, 2015USD ($) | Apr. 30, 2017USD ($)$ / sharesshares | Nov. 30, 2014USD ($) | Mar. 31, 2018shares | Mar. 31, 2013USD ($) | Mar. 31, 2013CNY (¥) | Mar. 31, 2019USD ($) | Dec. 01, 2014USD ($) | Oct. 03, 2012USD ($)$ / shares | Apr. 27, 2012USD ($)$ / shares |
Convertible notes, net | ||||||||||
Number of shares issued in conversion of Notes (in shares) | shares | 40,521,494 | |||||||||
Convertible notes, net | $ 0 | |||||||||
GM Notes | ||||||||||
Convertible notes, net | ||||||||||
Denomination of the GM Notes | $ 50,000 | $ 25,000 | ||||||||
GM Notes | CGL | ||||||||||
Convertible notes, net | ||||||||||
Aggregate principal amount | 25,000 | |||||||||
GM Notes | Magnum | ||||||||||
Convertible notes, net | ||||||||||
Aggregate principal amount | 25,000 | |||||||||
Convertible notes | ||||||||||
Convertible notes, net | ||||||||||
Guaranteed internal rate of return | 12.00% | |||||||||
Interest rate | 7.00% | |||||||||
Debt issuance costs, amortization period | 5 years | |||||||||
Convertible notes | KKR Notes | ||||||||||
Convertible notes, net | ||||||||||
Aggregate principal amount | $ 65,000 | |||||||||
Guaranteed internal rate of return | 12.00% | |||||||||
Interest rate | 7.00% | |||||||||
Proceeds from issuance of convertible notes | $ 65,000 | |||||||||
Issuance costs incurred | ¥ | ¥ 14,260 | |||||||||
Conversion price per share | $ / shares | $ 2.838 | |||||||||
Convertible notes | GM Notes | ||||||||||
Convertible notes, net | ||||||||||
Aggregate principal amount | $ 50,000 | |||||||||
Guaranteed internal rate of return | 12.00% | |||||||||
Interest rate | 7.00% | |||||||||
Proceeds from issuance of convertible notes | $ 50,000 | |||||||||
Issuance costs incurred | ¥ | ¥ 4,258 | |||||||||
Conversion price per share | $ / shares | $ 2.838 | |||||||||
GMHL | GM Notes | ||||||||||
Convertible notes, net | ||||||||||
Proceeds from sale of the GM Notes | $ 88,090 | |||||||||
GMHL | GM Notes | CGL | ||||||||||
Convertible notes, net | ||||||||||
Proceeds from sale of the GM Notes | $ 61,677 | |||||||||
GMHL | GM Notes | Magnum | ||||||||||
Convertible notes, net | ||||||||||
Proceeds from sale of the GM Notes | $ 61,896 | |||||||||
GMSC | Convertible notes | ||||||||||
Convertible notes, net | ||||||||||
Convertible notes, net | $ 0 | |||||||||
GMSC | Convertible notes | KKR Notes and GM Notes | ||||||||||
Convertible notes, net | ||||||||||
Conversion amount of Notes | $ 115,000 | |||||||||
Conversion price per share | $ / shares | $ 2.838 | |||||||||
Number of shares issued in conversion of Notes (in shares) | shares | 40,521,494 |
Convertible notes, net - Intere
Convertible notes, net - Interest (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Convertible notes, net | ||
Amortization of debt issuance costs | ¥ 690 | ¥ 3,947 |
Convertible notes | ||
Convertible notes, net | ||
Amortization of debt issuance costs | 690 | 3,947 |
Total interest expense | 3,257 | 117,940 |
Convertible notes | KKR Notes | ||
Convertible notes, net | ||
Notes interest incurred | 1,454 | 65,130 |
Convertible notes | GM Notes | ||
Convertible notes, net | ||
Notes interest incurred | ¥ 1,113 | ¥ 48,863 |
Shareholders' equity (Details)
Shareholders' equity (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jul. 23, 2019USD ($) | Jul. 23, 2018USD ($) | Mar. 31, 2019USD ($)shares | Mar. 31, 2019CNY (¥)shares | Mar. 31, 2018CNY (¥)shares | Mar. 31, 2017CNY (¥)shares | Mar. 31, 2013CNY (¥)shares | Mar. 31, 2019CNY (¥)shares | Jun. 26, 2018$ / shares |
Shareholders' equity | |||||||||
Ordinary shares, shares outstanding | 121,551,075 | 120,824,742 | 73,003,248 | 121,551,075 | |||||
Ordinary shares, shares issued | 121,687,974 | 120,961,641 | 73,140,147 | 121,687,974 | |||||
Number of shares issued in conversion of Notes (in shares) | 40,521,494 | ||||||||
Number of RSUs fully vested (in shares) | 7,300,000 | ||||||||
Increase of shares due to fully vested RSUs (in shares) | 7,300,000 | ||||||||
The percentage of net income that Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou required to transfer to surplus reserve | 10.00% | 10.00% | |||||||
The percentage of their respective registered capital that the statutory surplus reserve must reach before Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou are not required to transfer their net income | 50.00% | 50.00% | |||||||
The percentage of registered capital that must be retained in the statutory surplus reserve balance after conversion into issued capital | 25.00% | 25.00% | |||||||
Aggregated transfers made to the statutory surplus reserves by Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou | $ 2,360 | ¥ 15,841 | ¥ 16,326 | ¥ 1,964 | |||||
Accumulated statutory surplus reserve | $ 23,838 | ¥ 144,141 | ¥ 159,982 | ||||||
Purchase of Treasury Stock, shares | 7,450,914 | ||||||||
Purchase of Treasury Stock | ¥ | ¥ 131,302 | ||||||||
Sale of treasury shares, shares | 7,314,015 | ||||||||
Treasury stock, shares | 136,899 | 136,899 | 136,899 | ||||||
Ordinary shares issued as scrip dividend (in shares) | 726,333 | 726,333 | |||||||
Dividend declared (in dollars per share) | $ / shares | $ 0.08 | ||||||||
Cash dividend paid | $ 2,708 | ¥ 18,173 | |||||||
Share repurchase program, amount | $ | $ 20,000 | $ 20,000 | |||||||
Share repurchase program, period | 12 months | 12 months |
Revenues (Details)
Revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Revenues from External Customers | ||||
Total revenues | $ 147,031 | ¥ 986,754 | ¥ 936,768 | ¥ 759,978 |
Cord blood processing fees | ||||
Revenues from External Customers | ||||
Total revenues | 88,229 | 592,123 | 604,502 | 477,243 |
Cord blood storage fees | ||||
Revenues from External Customers | ||||
Total revenues | 57,483 | 385,781 | 325,209 | 278,273 |
Fees derived from the provision of donated cord blood for transplantation and research and others | ||||
Revenues from External Customers | ||||
Total revenues | $ 1,319 | ¥ 8,850 | ¥ 7,057 | ¥ 4,462 |
Income tax - Tax rates (Details
Income tax - Tax rates (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | 36 Months Ended | |||||||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2019CNY (¥) | |
Income tax | |||||||||||
Tax expense | $ 9,128 | ¥ 61,260 | ¥ 62,656 | ¥ 37,622 | |||||||
Reversal of withholding income tax | 14,300 | ||||||||||
Undistributed earnings that may be subject to the withholding tax | 350,428 | ¥ 2,351,790 | |||||||||
Unrecognized deferred tax liability from unremitted earnings of PRC subsidiaries | $ 35,043 | ¥ 235,179 | |||||||||
Cayman Islands | |||||||||||
Income tax | |||||||||||
Withholding tax amount on dividends | 0 | ||||||||||
British Virgin Islands | |||||||||||
Income tax | |||||||||||
Withholding tax amount on dividends | 0 | ||||||||||
Hong Kong | |||||||||||
Income tax | |||||||||||
Tax expense | ¥ 0 | ¥ 0 | ¥ 0 | ||||||||
The PRC | |||||||||||
Income tax | |||||||||||
Withholding tax rate | 10.00% | 10.00% | |||||||||
Beijing Jiachenhong | |||||||||||
Income tax | |||||||||||
HNTE preferential tax rate | 15.00% | ||||||||||
Beijing Jiachenhong | Forecast | |||||||||||
Income tax | |||||||||||
HNTE preferential tax rate | 15.00% | ||||||||||
Guangzhou Nuoya | |||||||||||
Income tax | |||||||||||
HNTE preferential tax rate | 15.00% | ||||||||||
Guangzhou Nuoya | Forecast | |||||||||||
Income tax | |||||||||||
HNTE preferential tax rate | 15.00% | ||||||||||
Zhejiang Lukou | |||||||||||
Income tax | |||||||||||
HNTE preferential tax rate | 15.00% | ||||||||||
Zhejiang Lukou | Forecast | |||||||||||
Income tax | |||||||||||
HNTE preferential tax rate | 15.00% | ||||||||||
Subsidiaries | The PRC | |||||||||||
Income tax | |||||||||||
Statutory income tax rate | 25.00% | 25.00% |
Income tax - Income before inco
Income tax - Income before income tax (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Income tax | ||||
Income before income tax expense | $ 53,115 | ¥ 356,461 | ¥ 303,535 | ¥ 166,311 |
The PRC | ||||
Income tax | ||||
Income before income tax expense, The PRC | 66,634 | 447,195 | 435,576 | 365,448 |
Hong Kong | ||||
Income tax | ||||
Income before income tax expense, Non-PRC | (9) | (65) | (45) | (36) |
British Virgin Islands | ||||
Income tax | ||||
Income before income tax expense, Non-PRC | (8,436) | (56,616) | (56) | (2,985) |
Cayman Islands | ||||
Income tax | ||||
Income before income tax expense, Non-PRC | $ (5,074) | ¥ (34,053) | ¥ (131,940) | ¥ (196,116) |
Income tax - Current and deferr
Income tax - Current and deferred (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Income tax | ||||
Current tax expense | $ 11,317 | ¥ 75,948 | ¥ 72,591 | ¥ 58,767 |
Deferred tax expense | (2,189) | (14,688) | (9,935) | (21,145) |
Total income tax expense | $ 9,128 | ¥ 61,260 | ¥ 62,656 | ¥ 37,622 |
Income tax - Reconciliation of
Income tax - Reconciliation of expected income tax to actual income tax expense (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($)$ / shares | Mar. 31, 2019CNY (¥)¥ / shares | Mar. 31, 2018CNY (¥)¥ / shares | Mar. 31, 2017CNY (¥)¥ / shares | |
Income tax | ||||
Income before income tax expense | $ 53,115 | ¥ 356,461 | ¥ 303,535 | ¥ 166,311 |
Computed "expected" tax expense | 13,279 | 89,115 | 75,884 | 41,578 |
PRC dividend withholding tax | (14,300) | |||
Preferential tax rates | (7,663) | (51,428) | (49,093) | (39,931) |
Others | 133 | 890 | 2,855 | 491 |
Total income tax expense | $ 9,128 | ¥ 61,260 | ¥ 62,656 | ¥ 37,622 |
Per share impact of preferential tax rates | (per share) | $ 0.06 | ¥ 0.42 | ¥ 0.43 | ¥ 0.55 |
Hong Kong | ||||
Income tax | ||||
Non-PRC entities not subject to income tax | $ 2 | ¥ 16 | ¥ 11 | ¥ 9 |
Total income tax expense | 0 | 0 | 0 | |
British Virgin Islands | ||||
Income tax | ||||
Non-PRC entities not subject to income tax | 2,109 | 14,154 | 14 | 746 |
Cayman Islands | ||||
Income tax | ||||
Non-PRC entities not subject to income tax | $ 1,268 | ¥ 8,513 | ¥ 32,985 | ¥ 49,029 |
Income tax - Deferred tax asset
Income tax - Deferred tax assets and liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥) | |
Deferred tax assets: | |||||
Accounts receivable | $ 4,906 | ¥ 21,086 | ¥ 32,929 | ||
Non-current accounts receivable | 1,919 | 11,725 | 12,879 | ||
Inventories | 1,167 | 7,410 | 7,834 | ||
Others | 277 | 1,713 | 1,858 | ||
Deferred tax assets | 8,269 | 41,934 | 55,500 | ||
Deferred tax liabilities: | |||||
Deferred revenue | (7) | (57) | (48) | ||
Property, plant and equipment | (855) | (5,694) | (5,736) | ||
Intangible assets | (3,629) | (25,516) | (24,361) | ||
Deferred tax liabilities | (4,491) | (31,267) | (30,145) | ||
Net deferred tax assets | 3,778 | 10,667 | 25,355 | ||
Classification on consolidated balance sheets: | |||||
Deferred tax assets | 6,702 | 31,295 | 44,981 | ||
Deferred tax liabilities | (2,924) | (20,628) | (19,626) | ||
Net deferred tax assets | $ 3,778 | 10,667 | ¥ 25,355 | ||
Interest and penalties related to unrecognized tax benefits | ¥ 0 | ¥ 0 | ¥ 0 | ||
The PRC | |||||
Classification on consolidated balance sheets: | |||||
Statute of limitation, underpayment due to computational errors | 3 years | 3 years | |||
Statute of limitation, special circumstances where underpayment is more than RMB100 | 5 years | 5 years | |||
Underpayment of taxes threshold that extends the statute of limitation | $ 15 | ¥ 100 | |||
Statute of limitation, transfer pricing issues | 10 years | 10 years |
Share-based compensation (Detai
Share-based compensation (Details) ¥ in Thousands | Dec. 15, 2014USD ($)shares | May 31, 2017USD ($)shares | Mar. 31, 2019shares | Mar. 31, 2018CNY (¥)shares | Mar. 31, 2017CNY (¥)shares | Mar. 31, 2019shares |
Share-based compensation | ||||||
Outstanding RSUs fully vested | 7,300,000 | |||||
Restricted Share Unit | ||||||
Share-based compensation | ||||||
Term of RSU Scheme | 10 years | |||||
Shares granted in period | 7,300,000 | 1,000,000 | 0 | 0 | ||
Number of ordinary shares entitled to transfer or issue upon vesting | 1 | 1 | ||||
Fair value of each RSU | $ | $ 4.15 | $ 7.68 | ||||
Outstanding RSUs (in shares) | 0 | 0 | 7,300,000 | 0 | ||
Exercisable RSUs (in shares) | 0 | |||||
Weighted average remaining contract life | 1 year | |||||
RSUs cancelled upon the resignation of one of the grantees | 1,000,000 | |||||
Outstanding RSUs fully vested | 7,300,000 | |||||
Total share-based compensation expense | ¥ | ¥ 84,268 | ¥ 62,241 | ||||
Restricted Share Unit | Direct costs | ||||||
Share-based compensation | ||||||
Total share-based compensation expense | ¥ | 1,920 | 1,565 | ||||
Restricted Share Unit | Sales and marketing | ||||||
Share-based compensation | ||||||
Total share-based compensation expense | ¥ | (1,534) | 17,408 | ||||
Restricted Share Unit | General and administrative | ||||||
Share-based compensation | ||||||
Total share-based compensation expense | ¥ | ¥ 83,882 | ¥ 43,268 |
Earnings per share (Details)
Earnings per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2019CNY (¥)¥ / sharesshares | Mar. 31, 2018CNY (¥)¥ / sharesshares | Mar. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net income attributable to the Company's shareholders | $ 43,380 | ¥ 291,124 | ¥ 237,098 | ¥ 126,190 |
Earnings allocated to participating convertible notes | ¥ | 0 | (10,019) | ||
Net income for basic and diluted net income per share | $ 43,380 | ¥ 291,124 | ¥ 237,098 | ¥ 116,171 |
Denominator: | ||||
Weighted average ordinary shares outstanding for basic net income per share | 121,270,491 | 121,270,491 | 112,938,635 | 73,003,248 |
Weighted average ordinary shares outstanding for diluted net income per share | 121,421,582 | 121,421,582 | 119,329,432 | 73,003,248 |
Earnings per share | ||||
Basic | (per share) | $ 0.36 | ¥ 2.40 | ¥ 2.10 | ¥ 1.59 |
Diluted | (per share) | $ 0.36 | ¥ 2.40 | ¥ 1.99 | ¥ 1.59 |
Excess cash dividend | ¥ | ¥ 0 | |||
Outstanding convertible notes | $ | $ 0 | |||
Convertible notes | ||||
Earnings per share | ||||
Interest rate | 7.00% | 7.00% | ||
Anti-dilutive ordinary shares | 40,521,494 | 40,521,494 | ||
Restricted Share Unit | ||||
Denominator: | ||||
Dilutive ordinary shares | 6,390,797 | |||
Earnings per share | ||||
Anti-dilutive ordinary shares | 7,300,000 | |||
Scrip dividend | ||||
Denominator: | ||||
Dilutive ordinary shares | 151,091 | 151,091 |
Related party transactions (Det
Related party transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction | ||
Incomes earned | ¥ 26,316 | |
Interest expenses | ¥ 2,567 | 113,993 |
Beijing Jingjing Medical Equipment Co., Ltd. | Purchase of raw materials and machineries | ||
Related Party Transaction | ||
Purchases | 19,419 | |
China Bright Group Co. Limited | Purchase of raw materials | ||
Related Party Transaction | ||
Purchases | 18,759 | 36,405 |
Golden Meditech (S) Pte Ltd. | Consultancy expenses | ||
Related Party Transaction | ||
Expenses incurred | ¥ 4,481 | 4,337 |
GMHL | Consultancy income | ||
Related Party Transaction | ||
Incomes earned | 16,786 | |
GMHL | Data access income | ||
Related Party Transaction | ||
Incomes earned | ¥ 26,316 |
Employee benefits (Details)
Employee benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Employee benefits | ||||
Defined contribution plan expense | $ 5,697 | ¥ 38,231 | ¥ 30,518 | ¥ 24,495 |
Sales and marketing | ||||
Employee benefits | ||||
Defined contribution rate | 63.00% | 63.00% | 57.00% | 55.00% |
Beijing Jiachenhong | ||||
Employee benefits | ||||
Defined contribution rate | 40.00% | 40.00% | ||
Guangzhou Nuoya | ||||
Employee benefits | ||||
Defined contribution rate | 40.00% | 40.00% | ||
Zhejiang Lukou | ||||
Employee benefits | ||||
Defined contribution rate | 40.00% | 40.00% |
Business and credit concentra_3
Business and credit concentrations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2019CNY (¥) | |
Supplier | |||||
Concentration Risk | |||||
Individual accounts payable to major suppliers | $ 1,597 | ¥ 1,141 | ¥ 10,715 | ||
Percentage of concentration | 32.00% | 32.00% | 10.00% | ||
Supplier | Beijing Jingjing Medical Equipment Co., Ltd. | |||||
Concentration Risk | |||||
Individual accounts payable to major suppliers | $ 1,597 | ¥ 10,715 | |||
Percentage of concentration | 32.00% | 32.00% | |||
Supplier | Beijing Probe Biological Technology Co., Ltd. | |||||
Concentration Risk | |||||
Individual accounts payable to major suppliers | ¥ 1,141 | ||||
Percentage of concentration | 10.00% | ||||
Supplier | Purchases of raw materials | |||||
Concentration Risk | |||||
Purchases from suppliers | $ 3,538 | ¥ 23,741 | ¥ 34,140 | ¥ 36,405 | |
Percentage of concentration | 30.00% | 30.00% | 44.00% | 52.00% | |
Supplier | Purchases of raw materials | Beijing Jingjing Medical Equipment Co., Ltd. | |||||
Concentration Risk | |||||
Purchases from suppliers | $ 3,538 | ¥ 23,741 | |||
Percentage of concentration | 30.00% | 30.00% | |||
Supplier | Purchases of raw materials | Beijing Jingjing Medical Equipment Co., Ltd. | Maximum | |||||
Concentration Risk | |||||
Percentage of concentration | 10.00% | 10.00% | |||
Supplier | Purchases of raw materials | China Bright Group Co. Limited | |||||
Concentration Risk | |||||
Purchases from suppliers | ¥ 18,759 | ¥ 36,405 | |||
Percentage of concentration | 24.00% | 52.00% | |||
Supplier | Purchases of raw materials | China Bright Group Co. Limited | Maximum | |||||
Concentration Risk | |||||
Percentage of concentration | 10.00% | 10.00% | |||
Supplier | Purchases of raw materials | Hangzhou Baitong Biological Technology Co., Ltd. | |||||
Concentration Risk | |||||
Purchases from suppliers | ¥ 7,670 | ||||
Percentage of concentration | 10.00% | ||||
Supplier | Purchases of raw materials | Hangzhou Baitong Biological Technology Co., Ltd. | Maximum | |||||
Concentration Risk | |||||
Percentage of concentration | 10.00% | 10.00% | 10.00% | ||
Supplier | Purchases of raw materials | Beijing Chengmao Xingye Technology Development Co., Ltd. | |||||
Concentration Risk | |||||
Purchases from suppliers | ¥ 7,711 | ||||
Percentage of concentration | 10.00% | ||||
Supplier | Purchases of raw materials | Beijing Chengmao Xingye Technology Development Co., Ltd. | Maximum | |||||
Concentration Risk | |||||
Percentage of concentration | 10.00% | 10.00% | 10.00% | ||
Beijing municipality | Customers | Net revenue | |||||
Concentration Risk | |||||
Percentage of concentration | 23.80% | 23.80% | 23.70% | 28.80% | |
Guangdong province | Customers | Net revenue | |||||
Concentration Risk | |||||
Percentage of concentration | 61.00% | 61.00% | 62.00% | 58.70% | |
Zhejiang province | Customers | Net revenue | |||||
Concentration Risk | |||||
Percentage of concentration | 15.20% | 15.20% | 14.30% | 12.50% |
Commitments and contingencies -
Commitments and contingencies - Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Mar. 31, 2017CNY (¥) | |
Commitments and contingencies | ||||
Total rental expenses, operating leases | $ 487 | ¥ 3,265 | ¥ 3,483 | ¥ 2,859 |
Commitments and contingencies_2
Commitments and contingencies - Future minimum payments, Leases (Details) - Mar. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Commitments and contingencies | ||
2020 | $ 327 | ¥ 2,196 |
2021 | 273 | 1,832 |
2022 | 224 | 1,500 |
2023 | 168 | 1,125 |
Total payments | $ 992 | ¥ 6,653 |
Commitments and contingencies_3
Commitments and contingencies - Contractual commitments (Details) - Co-operation agreement ¥ in Thousands, $ in Thousands | 1 Months Ended | 47 Months Ended | 135 Months Ended | ||||||
Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Oct. 31, 2013USD ($) | Oct. 31, 2013CNY (¥) | Nov. 30, 2009 | Sep. 30, 2013CNY (¥) | Aug. 31, 2017CNY (¥) | Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | |
Contractual commitments | |||||||||
Total future minimum payment | $ 6,127 | ¥ 41,117 | |||||||
Peking University People's Hospital | |||||||||
Contractual commitments | |||||||||
Annual advisory fee | $ 447 | ¥ 3,000 | ¥ 2,600 | ||||||
Annual advisory fee, time period | 4 years | 4 years | |||||||
Guangdong Women and Children's Hospital and Health Institute | |||||||||
Contractual commitments | |||||||||
Annual advisory fee | $ 477 | ¥ 3,200 | ¥ 2,000 | ||||||
Annual advisory fee, time period | 20 years |
Commitments and contingencies_4
Commitments and contingencies - Future minimum payments, cooperation agreements (Details) - Mar. 31, 2019 - Co-operation agreement ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Future minimum payments under cooperation agreements | ||
2020 | $ 924 | ¥ 6,200 |
2021 | 924 | 6,200 |
2022 | 663 | 4,450 |
2023 | 477 | 3,200 |
2024 | 477 | 3,200 |
2025 and thereafter | 2,662 | 17,867 |
Total payments | $ 6,127 | ¥ 41,117 |
Subsequent events (Details)
Subsequent events (Details) - Jun. 04, 2019 - Subsequent events - CGL shares in Millions | $ / sharesshares | $ / shares |
Subsequent events | ||
Number of ordinary shares to be issued by CGL | shares | 2,497.9 | |
Price per ordinary share to be issued by CGL | $ 0.5 | |
Price per ordinary share of the Company to be exchanged | $ 7.50 |