Global Cord Blood Corporation Reports Financial Results for the Third Quarter and First Nine Months of Fiscal 2022

Added 18,985 New Subscribers in 3Q22

Revenues Up 9.1% YoY to RMB317.2 Million ($49.8 Million)

Gross Profit Up 9.8% YoY to RMB269.9 Million ($42.4 Million)

Operating Income Up 20.8% YoY to RMB149.7 Million ($23.5 Million)

Non-GAAP Operating Income Up 18.6% YoY to RMB161.6 Million ($25.4 Million)

Conference Call to be Held on March 1,2022,at 8:00 a.m. ET

HONG KONG,March 1,2022 --Global Cord Blood Corporation (NYSE: CO) ("GCBC" or the "Company"),China's leading provider of cord blood collection,laboratory testing,hematopoietic stem cell processing and stem cell storage services,today announced its unaudited financial results for the third quarter and first nine months of fiscal 2022,ended December 31,2021.

Third Quarter Fiscal 2022 Highlights

Revenues increased by 9.1% year-over-year ("YoY") to RMB317.2 million ($49.8 million).

New subscribers and accumulated subscriber base were 18,985 and 955,864[1],respectively.

Gross profit increased by 9.8% YoY to RMB269.9 million ($42.4 million). Gross margin increased to 85.1% from 84.6% in the prior year period.

Operating income increased by 20.8% YoY to RMB149.7 million ($23.5 million). Operating margin increased to 47.2% from 42.6% in the prior year period.

Operating income before depreciation and amortization ("non-GAAP operating income"[2]) increased by 18.6% YoY to RMB161.6 million ($25.4 million).

Net income attributable to the Company's shareholders increased by 15.1% to RMB134.2 million ($21.1 million).

Net cash provided by operating activities was RMB121.8 million ($19.1 million).

First Nine Months Fiscal 2022 Highlights

Revenues increased by 10.3% YoY to RMB946.0 million ($148.5 million).

New subscribers and accumulated subscriber base were 57,724 and 955,respectively.

Gross profit increased by 11.1% YoY to RMB804.7 million ($126.3 million).

Operating income increased by 17.7% YoY to RMB466.7 million ($73.2 million).

Non-GAAP operating income[2] increased by 16.0% YoY to RMB502.9 million ($78.9 million).

Net income attributable to the Company's shareholders increased by 4.2% to RMB396.3 million ($62.2 million),as growth in operating income was partially offset by a decrease in fair value of equity securities,or "mark-to-market loss."

Net cash provided by operating activities increased by 7.6% YoY to RMB451.6 million ($70.9 million).

"Despite ongoing challenges from a resurgence of COVID-19 and the general trend of fewer newborns in China,we managed to recruit 18,985 new subscribers in the third quarter," said Ms. Ting Zheng,Chief Executive Officer and Chairperson of GCBC. "As regulatory uncertainties affecting China's cord blood banking industry remain as we head to the Year of Tiger,management will continue to monitor any potential regulatory changes,while carrying on with our operating efforts and thoroughly examining business development opportunities related to cord blood stem cells,as we aim to generate growth in new areas."

Summary – Third Quarter and Nine Months Ended December 31,2020 and 2021

Three Months Ended December 31,

Nine Months Ended December 31,

2020

2021

2020

2021

(in thousands)

RMB

RMB

US$

RMB

RMB

US$

Revenues

290,798

317,202

49,776

857,318

946,046

148,455

Gross Profit

245,920

269,921

42,357

724,279

804,715

126,277

Operating Income[3]

123,957

149,719

23,494

396,627

466,727

73,239

Change in Fair Value of

Equity Securities

6,003

599

94

30,107

(6,416)

(1,007)

Net Income Attributable to

the Company's

Shareholders

116,570

134,192

21,058

380,513

396,349

62,195

Earnings per Ordinary

Share (RMB/US$)

– Basic

0.96

1.11

0.17

3.13

3.26

0.51

– Diluted

0.96

1.11

0.17

3.13

3.26

0.51

Revenues Breakdown (%)

Processing Fees and Other

Services

56.8%

57.1%

57.3%

57.7%

Storage Fees

43.2%

42.9%

42.7%

42.3%

New Subscribers (persons)

17,802

18,985

52,678

57,724

Total Accumulated

Subscribers(persons)

882,982

955,864[1]

882,864[1]

Summary – Selected Cash Flow Statement Items

Three Months Ended December 31,

2020

2021

2020

2021

(in thousands)

RMB

RMB

US$

RMB

RMB

US$

Net cash provided by

operating activities

144,988

121,779

19,110

419,631

451,578

70,862

Net cash used in

investing activities

(5,996)

(7,145)

(1,122)

(17,316)

(13,378)

(2,098)

Net cash used in

financing activities

-

-

-

(6,074)

(7,729)

(1,212)

Third Quarter Fiscal 2022 Financial Results

REVENUES. Revenues increased by 9.1% YoY to RMB317.2 million ($49.8 million) in the third quarter of fiscal 2022 as a result of the increase in new subscribers and a larger subscriber base.

During the reporting quarter,the Group recorded a 6.6% YoY increase in new subscribers to 18,985 despite challenges from the COVID-19 pandemic and the general downward trend of newborns in the Company's operating markets. Revenues generated from processing fees and other services increased by 9.7% YoY to RMB181.2 million ($28.5 million) in the reporting quarter,representing 57.1% of total revenues compared to 56.8% in the prior year period.

As of December 31,2021,the accumulated subscriber base expanded to 955,864[1]. Revenues generated from storage fees increased by 8.3% YoY to RMB136.0 million ($21.3 million) in the reporting quarter.

GROSS PROFIT. Gross profit for the third quarter increased by 9.8% YoY to RMB269.9 million ($42.4 million). Due to the effect of economy of scale,which was partially offset by higher labor costs,gross margin improved to 85.1% from 84.6% in the prior year period.

OPERATING INCOME. As a result of topline growth and tighter cost control measures,operating income for the reporting quarter increased by 20.8% YoY to RMB149.7 million ($23.5 million). Operating margin improved to 47.2% from 42.6% in the prior year period. Depreciation and amortization expenses for the third quarter were RMB11.9 million ($1.9 million),compared to RMB12.3 million in the prior year period. Non-GAAP operating income[2] increased by 18.6% YoY to RMB161.6 million ($25.4 million) in the reporting quarter.

Research and Development Expenses. Research and development expenses in the third quarter decreased to RMB6.8 million ($1.1 million) from RMB9.0 million in the prior year period.

Sales and Marketing Expenses. During the reporting quarter,the Company continued to closely monitor its sales and promotional activities as obstacles for frontline client access resulting from COVID 19 protocols remained. In light of labor cost saving,sales and marketing expenses decreased by 4.5% YoY to RMB65.9 million ($10.3 million). Sales and marketing expenses as a percentage of revenues was 20.8%,compared to 23.7% in the prior year period.

General and Administrative Expenses. General and administrative expenses increased by 7.9% YoY to RMB47.4 million ($7.4 million) due to higher professional fees,partially offset by lower staff costs and provisions. General and administrative expenses as a percentage of revenues edged down to 15.0% from 15.1% in the prior year period.

OTHER INCOME.

Change in fair value of equity securities. In the reporting period,the Company recognized a mark-to-market gain of RMB0.6 million ($0.09 million),compared to a mark-to-market gain of RMB6.0 million in the prior year period. The changes were mainly attributable to the Company's investments in equity securities.

NET INCOME ATTRIBUTABLE TO THE COMPANY'S SHAREHOLDERS. Income before income tax for the third quarter increased by 14.2% YoY to RMB159.1 million ($25.0 million). Income tax expense for the third quarter was RMB23.6 million ($3.7 million). Net income attributable to the Company's shareholders for the reporting quarter increased by 15.1% YoY to RMB134.2 million ($21.1 million). Net margin for the reporting quarter increased to 42.3% from 40.1% of the prior year period.

EARNINGS PER SHARE. Basic and diluted earnings per ordinary share for the third quarter of fiscal 2022 was RMB1.11 ($0.17).

Nine Month Fiscal 2022 Financial Results

Total revenues for the first nine months of fiscal 2022 increased by 10.3% YoY to RMB946.0 million ($148.5 million) due to the increase in new subscribers and an enlarged subscriber base. Revenues from processing fees and other services increased by 11.2% YoY to RMB546.1 million ($85.7 million),and revenues from storage fees increased by 9.2% YoY to RMB399.9 million ($62.8 million). Gross profit increased by 11.1% YoY to RMB804.7 million ($126.3 million). Operating income increased by 17.7% YoY to RMB466.7 million ($73.2 million). Non-GAAP operating income[2] increased by 16.0% YoY to RMB502.9 million ($78.9 million). As growth in operating income was partially offset by a mark-to-market loss,net income attributable to the Company's shareholders improved by 4.2% to RMB396.3 million ($62.2 million). Basic and diluted earnings per ordinary share increased to RMB3.26 ($0.51).Net cash provided by operating activities in the first nine months of fiscal 2022 improved by 7.6% YoY to RMB451.6 million ($70.9 million).

Conference Call

The Company will host a conference call at 8:00 a.m. ET on Tuesday,to discuss its financial performance and give a brief overview of the Company's recent developments,followed by a question-and-answer session. Interested parties can access the audio webcast through the Company's IR website at http://ir.globalcordbloodcorp.com.A replay of the webcast will be accessible two hours after the conference call and available for seven days at the same URL above. Listeners can also access the call by dialing 1-646-722-4977 or 1-855-824-5644 for US callers,or +852-3027-6500 for Hong Kong callers,access code: 61137296#.

[1]During the three months and nine months ended December 31,18,985 and 57,724 new subscribers were recruited. During the three months and nine months ended December 31,the Company determined that the recoverability of 1,213 and 3,297 private cord blood units was remote and therefore,the Company terminated their subscription services according to the subscription contracts. Out of these prior private cord blood units,999 and 2,683 prior private cord blood units were being treated as if they were donated cord blood units and will be part of the Company's non-current inventories. Hence,the net accumulated subscriber base was 955,864 as of December 31,2021.

[2]See exhibit 3 to this press release for a reconciliation of non-GAAP operating income to exclude the non-cash items related to the depreciation and amortization expenses to the comparable financial measure prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP").

[3]The reported operating income for the three months ended December 31,2020 and 2021 included depreciation and amortization expenses related to property,plant and equipment and intangible assets of RMB12.3 million and RMB11.9 million ($1.9 million),respectively. The reported operating income for the nine months ended December 31,plant and equipment and intangible assets of RMB36.9 million and RMB36.2 million ($5.7 million),respectively.

Use of Non-GAAP Financial Measures

GAAP results for the three months and nine months ended December 31,include non-cash items related to depreciation and amortization expenses. To supplement the Company's unaudited condensed consolidated financial statements presented on a U.S. GAAP basis,the Company has provided adjusted financial information excluding the impact of these items in this press release. The non-GAAP financial measure represents non-GAAP operating income. Such adjustment is a departure of U.S. GAAP; however,the Company's management believes that these adjusted measures provide investors with a better understanding of how the results relate to the Company's historical performance. Also,management uses non-GAAP operating income as a measurement tool for evaluating actual operating performance compared to budget and prior periods. These adjusted measures should not be considered an alternative to operating income,or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. These measures are not necessarily comparable to a similarly titled measure of another company. A reconciliation of the adjustments to U.S. GAAP results appears in exhibit 3 accompanying this press release. This additional adjusted information is not meant to be considered in isolation or as a substitute for U.S. GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies.

About Global Cord Blood Corporation

Global Cord Blood Corporation is an umbilical cord blood banking operator serving multiple regions in China. Global Cord Blood Corporation provides cord blood collection,hematopoietic stem cell processing and stem cell storage services. For more information,please visit the Company's website at:

http://www.globalcordbloodcorp.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company's future financial performance. The Company has attempted to identify forward-looking statements by terminology including "anticipates","believes","expects","can","continue","could","estimates","intends","may","plans","potential","predict","should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions,uncertainties and other factors may cause the Company's actual results,levels of activity,performance or achievements to be materially different from any future results,performance or achievements expressed or implied by these forward-looking statements. The information in this press release is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable,the Company does not guarantee future results,performance or achievements. The Company expectations are as of the date this press release is issued,and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to conform these statements to actual results,unless required by law.

The forward-looking statements included in this press release are subject to risks,uncertainties and assumptions about the Company's businesses and business environments. These statements reflect the Company's current views with respect to future events and are not a guarantee of future performance. Actual results of the Company's operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include,among other things: the ongoing impact of COVID-19,including the partial lockdowns implemented in various cities in the PRC and the imposition by some hospitals in the PRC of restrictions on entrance to solely to hospital staff and patients; levels of consumer confidence in the healthcare services sector generally in the PRC as a result of the outbreak; the length of the COVID-19 outbreak and severity of such outbreak across the globe; the pace of recovery following the COVID-19 outbreak; continued compliance with government regulations regarding cord blood banking in the People's Republic of China,or PRC and any other jurisdiction in which the Company conducts its operations; changing legislation or regulatory environments in the PRC (including but not limited to cord blood license related regulations,Biosecurity laws,antitrust laws) and any other jurisdiction in which the Company conducts its operations; the acceptance by subscribers of the Company's different pricing and payment options and reaction to the introduction of the Company's premium-quality pricing strategy; demographic trends in the regions of the PRC in which the Company is the exclusive licensed cord blood banking operator; labor and personnel relations; the existence of a significant shareholder able to influence and direct the corporate policies of the Company; credit risks affecting the Company's revenue and profitability; changes in the healthcare industry,including those which may result in the use of stem cell therapies becoming redundant or obsolete; the Company's ability to effectively manage its growth,including maintaining effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; the availability of capital resources,including in the form of capital markets financing opportunities,in light of legislative developments in the U.S. affecting listed issuers whose independent registered public accounting firms are based in China and not subject to U.S. Public Company Accounting Oversight Board inspections,international pressure on trade and currency against the PRC and its potential impact on the PRC consumer behavior,as well as general economic conditions,and other relevant risks detailed in the Company's filings with the Securities and Exchange Commission in the United States.

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted,all translations from Renminbi to U.S. dollars as of and for the period ended December 31,2021 were made at the noon buying rate of RMB6.3726 to $1.00 on December 30,2021 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. Global Cord Blood Corporation makes no representation that the Renminbi or U.S. dollar amounts referred to in this press release could have been or could be converted into U.S. dollars or Renminbi,at any particular rate or at all.

EXHIBIT 1

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and December 31,2021

March 31,

December 31,

2021

2021

RMB

RMB

US$

(in thousands except share data)

ASSETS

Current assets

Cash and cash equivalents

6,075,798

6,505,014

1,020,780

Accounts receivable,less allowance for credit losses

(March 31,2021: RMB137,961; December 31,2021:

RMB152,100 (US$23,868))

130,298

154,074

24,177

Inventories

44,257

47,390

7,437

Prepaid expenses and other receivables

47,788

75,721

11,882

Total current assets

6,298,141

6,782,199

1,064,276

Property,plant and equipment,net

498,656

480,229

75,359

Operating lease right-of-use assets

5,039

3,434

539

Non-current deposits

344,752

343,541

53,909

Non-current accounts receivable,less allowance for credit

losses (March 31,2021: RMB67,095; December 31,

2021: RMB59,173 (US$9,286))

217,208

253,539

39,785

Inventories

91,446

94,555

14,838

Intangible assets,net

88,202

84,737

13,297

Investment in equity securities at fair value

117,911

107,726

16,905

Other equity investment

189,129

189,129

29,678

Deferred tax assets

55,845

58,637

9,201

Total assets

7,906,329

8,397,726

1,317,787

LIABILITIES

Current liabilities

Accounts payable

9,479

11,674

1,832

Accrued expenses and other payables

136,448

144,668

22,702

Operating lease liabilities

1,636

1,695

266

Deferred revenue

449,359

451,974

70,925

Income tax payable

29,547

26,483

4,156

Total current liabilities

626,469

636,494

99,881

Non-current deferred revenue

2,392,906

2,457,490

385,634

Non-current operating lease liabilities

147

-

-

Other non-current liabilities

482,224

499,900

78,445

Deferred tax liabilities

16,132

16,245

2,549

Total liabilities

3,517,878

3,610,129

566,509

EQUITY

Shareholders' equity of Global Cord Blood

Corporation

Ordinary shares

- US$0.0001 par value,250,000,000 shares authorized,

121,687,974 and 121,551,075 shares issued and

outstanding as of March 31 and December 31,

respectively

83

83

13

Additional paid-in capital

2,101,582

2,582

329,784

Treasury stock,at cost (March 31 and December 31,

2021: 136,899 shares,respectively)

(2,815)

(2,815)

(442)

Accumulated other comprehensive losses

(103,179)

(106,718)

(16,746)

Retained earnings

2,386,187

2,536

436,640

Total equity attributable to Global Cord Blood

Corporation

4,381,858

4,774,668

749,249

Non-controlling interests

6,593

12,929

2,029

Total equity

4,388,451

4,787,597

751,278

Total liabilities and equity

7,787

EXHIBIT 2

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Nine Months Ended December 31,2020 and 2021

Three months ended December 31,

Nine months ended December 31,

2020

2021

2020

2021

RMB

RMB

US$

RMB

RMB

US$

(in thousands except per share data)

Revenues

290,202

49,046

148,455

Cost of revenues

(44,878)

(47,281)

(7,419)

(133,039)

(141,331)

(22,178)

Gross profit

245,920

269,921

42,357

724,279

804,715

126,277

Operating expenses

Research and development

(8,985)

(6,845)

(1,074)

(18,283)

(17,516)

(2,749)

Sales and marketing

(68,994)

(65,916)

(10,344)

(178,178)

(182,243)

(28,598)

General and administrative

(43,984)

(47,441)

(7,445)

(131,191)

(138,229)

(21,691)

Total operating expenses

(121,963)

(120,202)

(18,863)

(327,652)

(337,988)

(53,038)

Operating income

123,957

149,719

23,494

396,627

466,727

73,239

Other income,net

Interest income

7,190

8,004

1,256

22,767

24,183

3,795

Foreign currency exchange

gains/(losses)

75

(526)

(83)

183

(395)

(62)

Change in fair value of equity

securities

6,003

599

94

30,416)

(1,007)

Dividend income

-

-

-

1,281

1,120

176

Others

2,152

1,329

209

5,070

2,551

400

Total other income,net

15,420

9,406

1,476

59,408

21,043

3,302

Income before income tax

139,377

159,125

24,970

456,035

487,770

76,541

Income tax expense

(21,220)

(23,568)

(3,698)

(70,131)

(85,085)

(13,352)

Net income

118,157

135,557

21,272

385,904

402,685

63,189

Net incomeattributable to

non-controlling interests

(1,587)

(1,365)

(214)

(5,391)

(6,336)

(994)

Net income attributable to

Global Cord Blood Corporation's

Shareholders

116,570

134,192

21,058

380,513

396,349

62,195

Earnings per share:

Attributable to ordinary shares

- Basic

0.96

1.11

0.17

3.13

3.26

0.51

- Diluted

0.96

1.11

0.17

3.13

3.26

0.51

Other comprehensive losses,

net of nil income taxes

- Foreign currency translation

adjustments

(4,289)

(1,364)

(214)

(8,930)

(3,539)

(555)

Comprehensive income

113,868

134,193

21,058

376,974

399,146

62,634

Comprehensive income attributable to

non-controlling interests

(1,336)

(994)

Comprehensive income

attributable to Global Cord Blood

Corporation's shareholders

112,281

132,828

20,844

371,583

392,810

61,640

EXHIBIT 3

GLOBAL CORD BLOOD CORPORATION

RECONCILIATION OF NON-GAAP OPERATING INCOME

For the Three Months and Nine Months Ended December 31,2020 and 2021

Three months ended

Nine months ended

December 31,

2020

2021

2020

2021

RMB

RMB

US$

RMB

RMB

US$

(in thousands)

GAAP amount of operating

income

123,719

23,727

73,239

Depreciation and amortization

expenses[4]

12,297

11,887

1,865

36,919

36,152

5,673

Non-GAAP operating

income

136,254

161,606

25,359

433,546

502,879

78,912

[4]Depreciation and amortization expenses relate to property,plant and equipment and intangible assets respectively.