China Cord Blood Corporation (NYSE:CO) Q4 2019 Earnings Conference Call Transcript

Jun 19, 2019 • 08:00 am ET

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China Cord Blood Corporation (NYSE:CO) Q4 2019 Earnings Conference Call Transcript

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Presentation
Executive
Albert Chen

potential medical benefits of umbilical cord blood banking for the general public and believe it is necessary to do so in order to maximize our long-term market position and drive future client conversion rates.

General and administrative expenses for the fourth quarter dropped to RMB44 million from RMB84 million of last year, mainly due to the absence of share based compensation expenses. Aside from the absence of share-based compensation expense, we managed to keep various general and administrative expense items in check by further tightening other administrative cost items.

On a quarter over quarter basis, general and administrative expense decreased by 3%, as we continue to closely monitor our administrative costs. In the reporting quarter, we recognized a nearly RMB12 million increase in the fair value of equity securities or we commonly refer to as the mark-to-market gains as other income under the accounting standard adopted since April 1st, 2018.

Such gains were mainly related to our investment in Cordlife Group Limited. In the fourth quarter of last year, a decrease in fair value of equity securities of RMB2.5 million was recorded as other comprehensive loss. Due to the increase in operating income as well as the mark to market gain, net income attributable to the Company's shareholders for the fourth quarter nearly tripled to RMB91 million.

Net margin for the reporting quarter improved to 36% from 13% in last year period. The total number of shares issued and outstanding as of March 31st, 2019 was 121.55 million. Basic and diluted earnings per ordinary share for the fourth quarter improved to RMB0.74.

This pretty much wrap up my presentation. And these are the highlights for the fourth quarter. We are now happy to take any questions concerning our latest financial results and the recent developments.