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Global Cord Blood (CO)

Participants
Cathy Bai VP of Corporate Finance
Albert Chen CFO
Jeff Oliver Star Funds
Call transcript
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Operator

Welcome everyone to Global Cord Blood Corporation Earnings Conference Call for the Fiscal 2022 Second Quarter. All participant lines will 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 you madam, Cathy Bai, VP of Corporate Finance to begin the presentation. ahead. go please Madam,

Cathy Bai

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

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

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

available management to time. you We shareholders X a investors Today, and session. will I questions give question CEO, will of remarks. could Our on a Tina, Q&A questions To be her during appreciate read our the at if understand questions, ask. we'd prepared everyone various to have ask answer behalf to ask chance

our the morning, And begin second conference everyone. Let's earnings quarter welcome Good XXXX to fiscal presentation. call.

quarter, subscriber management’s line X% XXXX, base September the reporting previous in period the group year-over-year the year accumulated the quarter-over-quarter the XX,XXX low At up recruit with in base surpassed During down end as managed our of new subscribers, to relatively a result expectation. and XXX,XXX. of X%

standing environments improve, challenges quarter, second During although long business to the remained. continue

clients for less our COVID-XX were pandemic effective on childbirth, concerned alleviated. our operating pandemic about of market result implemented a admissions As in control gradually impact business and hospital the were potential measures

hospitals However, in activities outbreaks our still thereby occasional channels. hindering as certain hospital maintain sales forced activities resumed, access to strict policies, local economic

to In age childbearing and addition, continue of number overall newborns the decline. women of

to policies industry trend business second have near Compared this affected we observable not group's that future. quarter. quarter, nature, changes do intractable reverse its to related in the or expect the demographic many Given there been in the previous the not

child reducing measures training among the make off-campus efforts, to others. districts of various of out follow cost current third education in of of rolled family’s school China raising childbearing and subscribers. or difference at notable a expansion and and aimed prices ratification up Such and Regarding group's regulatory Despite care substantially select bodies policy, these curbing the rules Series have contribution child as of the three in to services, child new X children. house yet a

of extensive regarding for fiscal our work This as deep development relevant regulatory to long-term on with As guideline discussed continues last subside. have closely expand and new and management maintain team these to the range quarter, concerns management agencies, business second policies quarter XX,XXX into results. the ongoing potential to we and team and the Facing Thank industrywide carry opportunities. concludes my laws to this while market XXXX be over cord out will for regulations new the your XX,XXX. focus active in uncertainties, development The mind, related channels subscriber blood announced. to the dive implications team management is With marketing new any sales of banking support and monitor which yet to licensing company's the development, expected maintains Corporation. fiscal target, XXXX remarks continue Cord may communications that you fall Blood Global security within regulatory

go call Albert financial ahead. the will CFO, to discuss to I our Chen, Now Chen, turn Mr. performance. our quarter second over please Mr. fiscal

Albert Chen

fees. from increased second the million, revenue increase and both to joining for driven the approximately our by today. storage morning, revenues RMBXXX In by XX% Good call you everyone. processing in Thank fees quarter year-over-year

of these recruited During challenging to subscribers, during in an the our sales the times. same quarter, than comparable low and increase partially efforts quarter also business year-over-year, the year, base new due the the more of second group last X% representing improved XX,XXX environment

a but XX% year-over-year in approximately for mainly higher quarter second for and continued revenues. operating quarter XX% due to which XX% XXXX, improvement to year-over-year fee result, approximately fees RMBXXX by services generated from increased XXX,XXX by base XX% improved accounted to expenses. top-line and approximately In the subscriber million margin processing relatively to by increased income RMBXXX from the the drive RMBXXX SG&A reporting of offset a of approximately revenues to end growth, of coupled and with to costs. other million. million to As by increased By million Gross quarter moderate profit accumulated to XX% our by of over the labor increased RMBXXX increase Economy gross scale storage September XX% partially margin year. XX% total revenues second last expanded in the year-over-year

year. Non-GAAP to the increased from value of gains XX% mark-to-market approximately decreased XX% million a XX% from last securities to compared income of Depreciation improved quarter, time, recognized marketing the from XX% fair a million, to due XX% to margin quarter down last marketing operating percentage at RMBX year-over-year and to quarter Sales non-GAAP revenue administrative to margin the in or million of and General RMBXX XX% year to expenses similar But of increase million activities. the company and loss as we promotional marketing expenses In costs. attributable operating improved expenses revenue equity RMBXX of expenses same prior last RMBXX RMBXXX and from in to and second of percentage result, a in of prior in approximately million continue million as from year last by in the scale decrease the period. mark-to-market XX% to administrative a As the year. increase increased labor RMBXX X% and year. in operating costs. mainly the primarily to XX% by year year-over-year amortization General RMBXX of labor approximately reporting period. for increased and year. last Sales decreased million expenses XX% were second an to to

In any quarter dividend addition, investments. did equity record reporting from income during the not we

per decreased just reporting quarter year-over-year to attributable These the for of mark-to-market million. the before Basic expense tax As results. RMBXX equity securities by in the a the RMBXXX company's our the offset Income RMBXXX operating loss this to X% income earnings tax quarter share second diluted was shareholders income was quarter are and quarter increase at RMBX.XX. income for income of million. million. ordinary highlights Net were second by stood for

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

Operator

Thank Jeff you. Star ahead. first Funds. Oliver So Sir, question we [Operator X Instructions] go have from please Mr. from

Jeff Oliver

Can you. the geographical questions. also subscribers? your well? you could Hello. Thank for you as And breakdown you provide a new breakdown taking Thank discuss of payment my method

Albert Chen

for you questions. Thank the

regions in new approximately second by breakdown as the regions subscribers second geographical derived subscribers Guangdong approximately total new the second And Zhejiang from quarter remaining quarter. Beijing quarter. For subscribers' represent XX% the recorded our of province. the our XX% the represented subscribers of new is XX% follows. new recorded total in

Option the XX% of as our of payment And option elected elected normal of to XX payment remaining X subscribers are payment of up upfront recorded the the quarter more X. subscribers or X known more second in during Option years. referred commonly quarter the payment signed plan the XX% the installment new approximately years of or our during method. methods terms of or payment -- new In elect XX% of subscribers second either in Approximately form commonly as our who breakdown, scheme payment form

Operator

sir. you, Thank

Instructions] [Operator from questions. from ahead. we Panamax Sir, other John Lin So no question next please have We have Capital. go [ph]

Unidentified Analyst

Number the it for to buyback? maybe talk take the estimates months the might buyback for you do Can on my as the line question special for to or you What evaluate you. Thank John potential returns the your taking [ph]. think that time It's Thank you cash about then offer Hi. the a a have ago? made deploying to That's next opposed And a two, how Sam is committee you for be CapEx? number CapEx stock any might question. question do achieve was for budget X stock you one. able are year? third about

Albert Chen

the for questions. you Thank

whole their mind. course of of company as try the the latest as action the appropriate best sure to the is evaluate come in the taking the committee shareholders special with proposal is And up offered recommended for well special committee Alternate that to very will in the company. a the formed or the I'm lead to position independent regarding aware, non-binding Ocean evaluate the all the special the not the the discuss by offer. in you're I company best I'm interest the As details evaluating their discussions. believe with that committee and Unfortunately, But to as

plan. the allocation of terms In company capital

exploring constantly allocation capital different have We decisions.

done have in obviously repurchase We share past. the

of risk. well. our or new the in those that the extent to our in the board potential We and into publication. past being repurchase geographical to that to announcements the some a are for can have other also income dividend out diversify streams as looking certain and And potentially being, company opportunities time also we income the mitigate as of part even decided through program With concentration said a make dividend relaunch if decisions the a definitely we acquisition will position future announce our or market a share known

our being, expenditure releases. capital routine as capital press can time In from terms of expenditure for see the you

further For the purchase of our will keeping on X with But equipment on eye expansion our procurement capital for a of utilization. if roughly storage new months do RMBX capital so. of need of and And expenditure the of million in capacity past expenditure and a the the being equipment in we in building the definitely is out approximately is will replacement we close were expenditure our said there routine facilities, capital laboratory consist equipment. are facilities, spent that mainly those absence storage terms

the time. plans we don't have And we as currently, plan point expand numbers up be picked this immediate an in case. significantly. certainly subscriber of capacity But if will our to hope the the obviously change capital will expenditure new that However

Operator

sir. Thank you,

[Operator no question have Capital. Sam We Instructions] go have Panamax Mr. ahead. questions. please from another John from Sir, other We

Unidentified Analyst

you. Thank

do capacity As what a current you follow-up, estimate utilization your is?

Albert Chen

is Beijing capacity current rate XX%. utilization our For approximately the facility,

around utilization Guangdong similar XX%. broadly XX% the facility terms probably in has lowest of rate. Zhejiang between our to facilities it's For And

less than probably XX%. at looking You're

Operator

sir. you, Thank

for have you Back other to We no the conclusion. questions.

Cathy Bai

Thank you, to appears this questions. be Claudia. At there no point,

second Thank you this great your ongoing for and earnings fiscal call conference day. our the much very a participation support. Have So quarter. concludes for all XXXXX

Operator

participation. Ladies and conference your the you Thank gentlemen, for all call. this concludes

may disconnect. now You