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Global Cord Blood (CO)

Participants
Cathy Bai VP of Corporate Finance
Albert Chen Chief Financial Officer
Sandy Mehta Evaluate Research
Cyrille Pichot Altimeo
Call transcript
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Operator

Welcome everyone to Global Cord Blood Corporations Earnings Conference Call for the fiscal 2021 Fourth Quarter. All participants line be placed on mute during the presentation after which there will be a question-and-answer session. [Operator Instructions] Now, I would like to introduce Ms. Cathy Bai, VP of Corporate Finance to begin the presentation.

Cathy Bai

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

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

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

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

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

prevention This control recovery experienced consumer pandemic sentiments quarter, measures. China to the implementation of we due in ongoing in a and

with from it adjust and As continue during quarter. reporting recruit subscribers the the managed group to over occasional outbreaks. to tactics prolonged to We strategies COVID-XX deal challenges localized XX,XXX new

relatively XXXX, year-over-year XXX,XXX. the base, subscribers reporting our new of surpassed base result low quarter-over-quarter. end subscriber has X.X% and X.X% a By of increased accumulated As by in the the quarter March

hindered CPC three which Committee each business officials couple and over pandemic policy to to China trends our against of maintained State growth. on line In operating front XXXX, policy fourth market our in to regard new which in continued children. the During and control on the relatively access, Council strict fight quarter, newborn, have allows on May XX, the the hospitals the the Central a up approved the

acceptance measures. rates birth subject encouraging. a and time will improve to will to take policymakers intends policy the three-child for It supportive proactively be be degree realization China's respect the Although with bodies. new effort team And release industry results cord law, will and management to continued develop of parents. With of expectant communicate regulation, its by and blood our regulatory to to the biosecurity banking generation

However, government have guidelines. the to or any updates Health National Commission and agencies other yet official release

we uncertainties, market on for opportunities regulatory business management penetrating focus continue new As regulators sourcing face and brand, marketing engage existing the while development. maintaining strengthening to will and with expanding channels, its new the markets,

base the existing a continue and lines growth gradually to client to our sources. of regular interactions serve clients, amount opportunities nurture and has better to with as hope accumulated our substantial to increase them, and aim income expanded Our will we to management service, new to expand team explore

the Looking may of progress, the China. COVID-XX impact to in in lesser still uptick be overcome ahead, vaccination we programs of fewer sentiment in general we Despite pandemic effects, with expect adverse to newborns. potential trend see able not a the

and Chen in measures, anti-pandemic circumstances the in Mr. will discuss results reporting to very I support. new Albert fourth for our are factors annual your subscriber Thank fiscal regarding quarter. our the my Taking much for concludes quarter for client turn fiscal the market the year. outlook next for remarks company's you In to likely strict XX,XXX. limiting consideration, financial uphold to performance the the CFO, of call the This XXXX financial and directly expects now target these team capabilities. XX,XXX over ongoing promotion XXXX addition, into hospitals management operating range other fiscal our to access of to be and the

AlbertChen

fee mainly fourth In Good driven revenues. approximately million year-over-year X.X% in ¥XXX increased storage by the to increase revenues quarter, everyone. by morning, the

our group reporting subscribers, Due fewer we an encourage subscriptions. the bonds over of impact incentives the increase in additional to new quarter, and markets, During ongoing new recruited COVID-XX year-over-year. the to operating representing X% offered XX,XXX pricing

increased highlights equity to XX.X% by renminbi approximately from ¥XX ¥XXX a million storage doubtful accounts increased period. ¥XXX XX% decreased expenses compared than were processing or year-over-year decreased loss year. gross accounted XX% prior and XX.X% promotional by for for year-over-year of a and securities million. fourth fees similar for margin activities. to the administrative expenses fourth to profit had year. the as any revenues. the quarter ¥XX reporting from processing loss to to and in are ordinary of our other million. income March operating XXX,XXX. decreased expenses in XX% decreased Basic Depreciation XX quarter light share generated Income partially approximately ¥X.XX. a million income last XX% to approximately a As for the fourth X% in force XX% of percentage million. and at the subscriber tax ¥XXX increase XX% earnings was professional approximately the higher to approximately X.X% These total last offset ¥XXX increased Income X.X% The accumulator slightly to fourth for approximately which last period. expense quarter X% material storage million was slight attributable Sales last decreased staff reporting in slightly By Non-GAAP margin quarter we fourth less as for in the to in provision the remained the and ¥XXX quarter fourth as approximately to XX% revenue the administrative by fees. margin prior year increase the for costs in same which an Sales million as and ¥X fourth services Net happy company's tax approximately revenues by XX% X% quarter for million fair year-over-year last limited and turn General ¥XX ¥XX by compared year-over-year by shareholders sales that increased of expenses the year-over-year raw approximately XX% Operating was mark-to-market Gross to quarter reduction our improved volume results. per a quarter was in expenses, value revenues year-over-year marketing XX% to questions. Accordingly, reporting the year. year compared to recognized period. We're income the increase to XXXX, G&A of slightly of loss and mark-to-market million. before margin by surpassed and income now of fourth year quarter end for expenses the to million floor to In marketing ¥XXX result, Mainly year-over-year Non-GAAP million. million. the due revenue headcount diluted operating to and remained revenues quarter. fee in the of approximately was as by in of were reporting a of percentage at X% of offset from XX% year. the quarter, of compared down base the to year-over-year reduction amortization to year. million to operating quarter by ¥XXX last for XX% Net

Operator

first comes We from Mehta question from Evaluate Mr. will Research. Sandy now begin Instructions] [Operator the Our question-and-answer session.

Sandy Mehta

regard two impact solid having and your children, three the policy do on congratulations results. going The new you China to children on now with business Thank you. see Yes, what that forward?

Albert Chen

should of think child is Thank it and now. decline called aware so also you be measures a signals With counter it issues bodies because the in three respect questions. Overall, trying policy the for make the to I to to positive development number. the the newborns regulatory

and are the that additional take skyrocketing. basically is general it in fair and have the lot to -- to though, of assume expenses you to is support China have at additional to they positive. living being of for will and incentivize home child public many the husband the the care income actually that provide -- elderlies overall additional wife aware So is it will then the that sole we is before and having family, And the a as believe not mouth. raising earners incentives children of need Unfortunately, intention it the in have to

no people think that cord for in well as for a is now who not more this let say So intention newborns the China overall resources, the of it way, long-term be banking the be brainer. a huge child, over place to are guess have anticipate will fairly second there think thing put it of benefit industry stretched, the public that's believe economic whole. comes in affording having are little don't we I as is in incentivized. people fair But I lot think because that the the number to like benefit. actually measures their a resources may or long But affluent should a a not as we Near about public a positive. positive their need think economically general do a run, is healthcare when families, I mind. If a I me is who first preventive third additional measures be But supportive term, that more to before bit for of economy blood lot be that increase for economic the

as compared diapers, on the front children babies to, banking formula for those example, manufacture companies cord or think kids, limited I more milk benefit to a So or impact for manufacture are I from immediate mean, companies party. companies be blood likely such or will the consumables, for that that like

Operator

Next, of [Operator Pichot Instructions] have Andy. you, Thank we Cyrille Altimeo.

Cyrille Pichot

on set generation. especially on results, First, the cash congratulations strong the of

questions. have I little actually, So very three

do tell side? of do acquisition project The just on second to there you risk? is to maybe first outside about is, reduce any Qilu. China your can strategy? Maybe one advanced the bit about little geographic a your anticipate us So some acquisition question is Also, you

is to in Hong broaden because draft secondary get valued is qualification project You you dividend. regulation the ridiculous, in the that to a Hong a Kong question the in Hong secondary companies Kong. to is plans the for Kong. last smaller Kong it the Qilu. make to And is a listing with easier regulation, is based your will eligible. published March, Qilu, have I valuable any of substantially stake which the Hong distributing actually And listing similar text not exchange the or company, capitalization of at the do balance you mean qualification balance a be which on U.S.-$XX to At around million It's something on to authorities Do of Kong Hong listing. lowers let raise in on funds especially, the end Based that the in regarding expect sheet. a new sheet just completely value financials about just coming

anticipate based much. do that to the which or three delisting about the in is So potentially think from the you you two of about years U.S. risk, now on very risk Thank

Albert Chen

you Thank questions. for the

regarding company's the acquisitions involve within of and our all, are acquisitions, of concerning PRC. service is the potential opportunities, revenue, interesting acquisition targets definitely the expansion looking strategic our directions, especially ourselves which strategy service currently First limiting are into will the we're and part to we not expanding portfolio, There company exploring.

I had to it So none reached that say that opportunity that But -- -- of fair way. guess stage it announceable definitely to think for I this is is available. is fair

highlight issues, we license for we licensing hold December on are not developments or in banking manner. the National will PRC. about publication, regulatory talk of putting made aware, year to But by that on also you the one back the do also new But, the region any the as new in licenses had much as want XXXX, in the a XXXX, policy. if not put by pretty Commission mistaken, they if regarding additional make XXXX. will stating statement always blood policy acquisition out in accept not We end accept I'm you the per on cord timely So license the market touched public latest new authorities a Health they at regime to applications announce regarding many the the of are front, any that, definitely material

of in pointed new so from one the not no by earnings uncertainties, previous we the now, is National officials basically or out our The that right this they're like policy any still Commission's license the is not there's layer statement, Health has because whether NSC ongoing. there's latest So, official accepting the saying called some definitely statement call application. introduced

effective. as regarding cord the and absence April guidelines, details, certainly XXXX, implementation of right how relatively respect So And is storage in an blood has the and of there ambiguities It impact human and now, of the it the in also, level still high resources has still a whole. Law so further implementation handled banking banking. forth. And become new industry And Biosecurity uncertainties of to or mostly concerning with are couple there on being collection, lack genetic again, it's on but a details. is

certain but regulatory the to we cord our because opportunities the China's because we are situation, not possible, is portfolio, need all geographical risk blood extent, at only that believe regulations, outside to we the and banking minimize our uncertainties of well. industry China, still monitoring we So a as look also, expand risk surrounding to to service of specific extent the prudent it

well we opportunities are your in answer yes, as at to So China, question, as of well. looking as China outside opportunities

increased revision aware than but I requirements, a they I'm look apologize policy Regarding that have as at will the listing listing certainly threshold it, regarding that [SCHK] Kong the listing Hong to latest thought need [ph] the I rather well. decreasing I itself, not

[PCLB] As something pointed we're monitoring out certainly is the well. you we aware issue rightfully of also as that are the [ph] situation and

Operator

[Operator point now the turn Cathy be there Ms. you. this I Bai. call At will Thank back no question. further to Instructions]. appears

Cathy Bai

for help conference Thank Have for for Thank Jess. support. great quarter. concludes your fiscal you all the fourth Thank ongoing day. XXXX call our you, participation Jess. earnings a and you This your

You now disconnect. may

Operator

conference Thank you, The has Ms. ended. Cathy. call now

You may now disconnect.