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Global Cord Blood (CO)

Participants
Cathy Bai VP of Corporate Finance
Albert Chen CFO
Sandy Mehta Value Investment Principals
Cyrille Pichot Altimeo Asset Management
Call transcript
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Operator

Welcome everyone to Global Cord Blood Corporation Earnings Conference Call for the Fiscal Year 2021 Third Quarter. [Operator Instructions] Now I would like to introduce Ms. Cathy Bai, VP of Corporate Finance, to begin the presentation, please.

Cathy Bai

Thank you, Aaron. Good morning, everyone. XXXX earnings fiscal call. our to third conference quarter Welcome has our published on A discussing results our already website. available press release is financial been copy and company's a

and management session question-and-answer follow. summarize call, quarter. will team the for the our corporate During developments financial highlights A will

that risks. potential and these begin, begin we Mr. of SEC actual to financials interest be different of from statements results statements. that to Kindly remarks, discussions certain by our will detailed for our of Albert quarter In will contain time, we XXXX today's with could followed CFO, filings given Before subject by third discussion risks forward-looking CEO's refer our note forward-looking please Chen. our are and uncertainties, materially a report fiscal

answer at the if available on time. session. ask Our QA give chance remarks. question be appreciate behalf questions, our read everyone Tina, we'd management one a will questions ask during I a will to CEO, her Today, prepared of could to you To

Good our earnings XXXX to Welcome third our begin and gentlemen. morning, fiscal Let's call. quarter conference ladies presentation.

access. to During sales operating off factors on continue the adjusting to pressure newborn while in continue Despite and partial continue hospitals pandemic management quarter, our the the trend to continue measures, Meanwhile, resource on these conversion. deployment downwards. team challenges, restrict client strategies. adapt and to These put marketing pandemic and caused lockdown, to communities continue numbers various to group's and refine as the persisted reporting the markets COVID-XX combined

accumulated base expectations. with December this managed had quarter As of surpassed new line subscriber XX,XXX XXX,XXX. our end the we subscribers a result, XXXX, By management's to recruit in

awareness. XXXX quarter, of announced blood uncertainties no education medical policy regulation and regards opportunities stem public National Thereby the penetrate surrounding service, to existing with the our the and no brand in foundation and dialogues more blood solidify further the maintain expand regulatory coverage existing have will to same will as development, accomplishments laid applications the of third solid operating we hospital teams a our cord market markets market service. banking to cord industry continue to potential in new be Under the channels we details we circumstances, name, to in new regulatory time, Despite our of Commission accepted the benefits with China, and in and markets. be for enabling provided. During quality banking blood At on cells. license our our that Health invigorate we the past knowledgeable our maintain bodies strengthen source expand and our determined and business of are continue cord lines screen our current as to frontline the

on does not overall newborn Ox generally Year downtrend the ahead, a material Looking numbers. in of the effect have

for fiscal However, our as team considered, remain continues must year, frontline pandemic client and XXXX for Mr. remarks and fiscal turn things based now on of divisions I annual to recommends range the financial cautious our you we concludes new performance to XXXX the over financial the Thank reporting subscriber XX,XXX. short-term the call quarter the the support. in numbers will quarter. your XX,XXX impact address my our results. past to target All keeping management access ongoing Chen, for newborn conversion. This regarding CFO, the in to our third Albert COVID-XX

Albert Chen

quarter. offset approximately approximately Depreciation fewer expenses ongoing cost of XX,XXX decreased newborns group XX% quarter, XX% XXX XXX as at you quarter XX% reduction impact by stable Thank period. XXX remained costs. Gross in amortization today. approximately approximately everyone. the to by operating in year-over-year new compared in similar CNY in because by decrease a CNY prior which gross for and last the decreased representing the profit decreased the million, XX% led development reporting other third and and That services CNY for by a Due XX% reporting were to the COVID-XX operating Non-GAAP were revenues was services. the recruited XXX Consequently, from year-over-year of our year. subscribers million. subscriber markets, to margin to quarter XXX the to due to labor the approximately general X million, quarter, Accordingly, operating XX% reporting quarter to was in to third the in revenues while in million, million XX% million, the CNY volumes material prior XX% decrease X% Research fees XXX,XXX. higher our CNY morning, third XX% the from And million. XX largely to from exceeded to the period. year-over-year. in in approximately Operating to In margin third XXXX, year-over-year processing of XX% and increased year operating year-over-year quarter by income other XX%. call to for generated decline accounted the to revenues decreased our X the by year-over-year accumulated Good prior the new joining for margin CNY period. CNY third fees XX% storage is increased decreased year-over-year income and raw December and revenues end year fees lower quarter million Non-GAAP CNY expenses CNY base total million. year processing of the by subscribers for revenues By XXX compared approximately

support As ongoing we initiatives. to research research new of launch efforts and continue

were reporting During trimmed we remuneration advertising our force offset sales expenses headcount. quarter, by as down partially and promotional lower higher the staff

approximately XX And ordinary CNY million, approximately to and and a XX% by revenue, percentage General but recognized result, X% decreased reduced by sales equity last the was a in provisions. down costs XXX decreased CNY as CNY professional of income a mark-to-market of gain third XX% to million. year. million reporting X.XX. increase As quarter General due an of tax represents shareholders compared income quarter value quarter expenses third of for million mark-to-market results. for XX the quarter These XX% tax percentage compared approximately XX%. the earnings to highlights as all, CNY mainly year. was for XX% was marketing million. and the revenue revenue attributable company's or margin of X million. by X was expense administrative than year. last X% income year-over-year. CNY of fees, third to and and expenses diluted Net securities XX% to staff it of of before quarter now year-over-year was quarter, higher in as gain compared administrative as to share more partially decreased are expenses offset fair the year-over-year of by CNY we the to a XX% last the In third Income XXX CNY for per year-over-year third Net to approximately our Basic All by

now the are any floor happy to to We for turn questions.

Operator

[Operator Our Instructions] first Value Mehta, Sandy Investment question is Principals.

Sandy Mehta

up? forward subscriber is Do going -- you has expect growth that Now quite a pick receded to bit. COVID

Albert Chen

Thank you questions. for the

and platform But now are off, able think to client has I I to Obviously, recruitment. will on tell to interactions. which other will And certain and of from normal. which on maintain speculate a kind will right be in access, marketing there, address. via lot when terms address facing those, that to our to outbreak order reflect to the think that hospital's online as for related current are issue, to additional COVID subsided there rely fact hospital in need pushing to I to overall depressing we of have substantially, and channel. when client which couple situations think we extent. to be here a In lot of with the active going impact hard of will early challenges save right be now, it really to still market regain to as migrated us we the life respect access But words, the normal we it normal is is to be away of the mini a too initiatives back

and best very an that are is facing, trying So are obviously uncertainty address issues. our those we to we that

which pain globalized of urbanizations, extremely globalization, not downtrend. example, a And a born little. environment which is to is mean remarks, Guangdong the do respect the our to babies out impact we Beijing, has of are the still more not the macro babies the CEO born ease as in number But the in to optimistic pointed -- -- factors are overall with we in number issue, helped somehow Year of in Ox. with which I by, Zhejiang, obviously, as other mitigated for the as offset The is well as or such

full a That's And probably So outlook, are we full I think it. in announce guidance still June. to in terms are year guess, are I update our we approach. we currently best cautiously right mean, now, taking our optimistic. optimistic. when results we cautious year of the we right now, put But obviously, way relatively I will

Operator

question next Cyrille Asset Management. is Altimeo Our Pichot from

Cyrille Pichot

small two have I So questions.

business -- your started looking The be because some maybe potentially you terms business a in first diversify future is of announced today, announce geographic will would second and you a expect acquisition, mean, few regarding in that ago. regarding I is And potential acquisition. -- are also? Do question years there acquisition. capital my one something is as at nothing you of you But did near for the regarding you potential good to markets.

the U.S. in U.S.-listed implemented it's I of Hong lot the listing get would a A mitigate listing. listing secondary be a and potentially Chinese cautious As you to exchange of care in to shareholders. risk, because is company. Kong. the companies future good And of perfectly take know, you Chinese think, to U.S. a threat risk that a this for for expect secondary U.S.-listed there from Do have

Albert Chen

say -- something at the we administrations expanding obviously, it may are the With we the right There that -- portfolio, respect looking are Thank plan, basically -- fair fair or I to With anticipate right -- initiatives. issuers should involved definitive to regulation a from I to too intend to early those M&A you to we tell the I is be but enter market whether listed agreements, U.S., to looking -- this service in now. now. there should issuer respect certainly U.S.-listed for stage foreign are will be haven't some questions. several materialized. opportunities into to and first at respect by we are don't Obviously, interesting -- the opportunities at say, interesting say. that still our rules we -- reached capital prior any that And we targeting with currently say. quite least

in question is for now, we plan your So we a seek to option that will we being. answer short, also the listing are an monitoring sure, time immediate somewhere situations. To separate keep don't open have right but else, the that

Operator

Our is question [Ken Oliver] from [indiscernible]. next

Unidentified Analyst

your share please during new as well? you the subscriber region breakdown Can options and by quarter payment

Albert Chen

Thank you for the questions.

in geographical up of from were In from terms our new XX% approximately the Beijing. and subscriber Guangdong signed of XX% third subscribers market, from came quarter new came Zhejiang the XX% breakdown, remaining our derived

In terms payment plus of XX%. XX% up other fiscal total the basically approximately new for normal installment the of balance. options for option XXXX, payment of accounted in options breakdown, subscribers signed payment third account quarter the our about And upfront

Operator

currently Instructions] questions. more are [Operator There no

Cathy. back Now turn pass you. Thank I'll to to

Cathy Bai

much quarter. you our Thank disconnect. conference the Thank support. third may your XXXX This participation now great for Aaron. and day. a concludes you, very Aaron, call earnings you ongoing all for Have fiscal