Global Cord Blood Corporation (NYSE:CO) Q1 2021 Earnings Conference Call - Final Transcript
Aug 25, 2020 • 08:00 am ET
Welcome everyone to Global Cord Blood Corporation's Earnings Conference Call for the Fiscal 2021 First Quarter. All participants' 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 Ms. Cathy Bai, VP of Corporate Finance to begin the presentation. Ms. Cathy, please.
Thank you, Sheen. Good morning, everyone. Welcome to our fiscal 2021 first quarter earnings conference call. A press release discussing our financial results has already been published and a copy is available on our Company's website. During the call, our management team will summarize corporate developments and financial highlights for the quarter. A question-and-answer session will follow.
Before we begin, please note that today's discussion will contain forward-looking statements that are subject to certain risks and uncertainties and actual results could be materially different from these forward-looking statements. Kindly refer to our SEC filings for detailed discussions of potential risks.
In the interest of time, we will begin with our CEO's remarks followed by a detailed report of our fiscal 2021 first quarter financials given by our CFO, Mr. Albert Chen. Our management will be available to answer questions during the Q&A session. We understand investors and shareholders have various questions to ask. To give everyone a chance to ask questions, we'd appreciate if you could ask one question at a time. Today, on behalf of our CEO, Tina, I will read her prepared remarks. Let's begin the presentation.
ZHENG Ting, Tina
Good morning, ladies and gentlemen. Welcome to our fiscal 2021 first quarter earnings conference call. During the first quarter of fiscal 2021, we continued to face challenges brought on by the COVID-19 pandemic and downward pressure on the economy. As the management team adjusted our sales and marketing taxes, the Group managed to obtain 17,233 new subscribers this quarter, down by 17.2% year-over-year and 6.8% quarter-over-quarter. By the end of June 2020, our accumulated subscriber base reached 849,933.
During the quarter, the ongoing pandemic continued to affect our operations and business environment. At hospitals, which are one of our most important channels, our front line sales workers who were able to return to work continued to face resistance when trying to access potential clients. Meanwhile, consumer sentiments remained sluggish as measures taken to drive economic recovery were undermined by the recurrence of confirmed COVID-19 cases. In addition, some households altered their consumption behavior as income was diminished. These situations may potentially hinder our client accessing rate and conversion rate in the near future. Despite this, compared to the previous quarter when the COVID-19 pandemic first became part of people's daily lives, measures to fight against this virus have evolved. As consumers adapted to the new normal and seemed more willing to participate on online marketing activities like our pre-natal classes, we have gradually developed a response mechanism that enables us to cope with the long-term competencies.
Taking all these into consideration and given that the epidemic is largely under control in Beijing, Guangdong province, and