|Over a quarter ago|
Global Cord Blood sees FY21 new subscriber number down 19%-29% » 07:0304/2704/27/20
Global Cord Blood…
Global Cord Blood provided an update on the impact of the 2019 novel coronavirus on the company's expected fiscal 2021 operations. Based on information available to date, management estimates that the company's new subscriber number in fiscal 2021 will decrease to 60,000-65,000, a 19%-29% decrease from the company's fiscal 2020 new subscriber target, which is 80,000-85,000. Under the anti-pandemic policies and measures taken by the Chinese government, the risk levels associated with major cities has decreased, and social and economic activities are gradually resuming. However, hospitals, which are the company's key promotion and marketing channel, remain at the forefront in fighting this pandemic and remain under strict supervision and control. In the company's key markets of Beijing municipality, Guangdong province, and Zhejiang province, the company's usual marketing and promotion activities are significantly impacted by the control measures implemented by authorities and hospitals, prompting it to constantly readjust its marketing and promotion activities. During this difficult time, the company has prioritized employee safety and protection by providing personal protective equipment to everyone, especially the frontline sales team, and by implementing additional disinfection measures and work streams in its day-to-day operating procedures. The management team has also recalibrated its marketing and promotion efforts in order to better serve and engage with target and existing clients. As a result, operating costs have increased. The negative economic impact brought forth by the COVID-19 pandemic has affected numerous industries and further erodes already weak consumer sentiment. GCBC management expects that these conditions, compounded by other factors, will adversely affect and potentially delay potential clients' pregnancy plans. Therefore, management believes it is possible that the number of newborns in the company's respective regions will remain low in the near term. While the world is facing various challenges in response to COVID-19, China may continue to tighten its anti-pandemic policies and measures, which would add further headwinds to the recovery pace of China's economy and consumer confidence. GCBC management does not expect these conditions to be significantly improved in the near term. Under the impact of the COVID-19 pandemic, the company management is not optimistic regarding the general operating environment. Current operating data points to the low end of the expected fiscal 2021 new subscriber range. The management would like to remind investors that the above estimation is a forecast that reflects the company's current and preliminary views, which is subject to change and substantial uncertainties, particularly in view of the potential impact of the COVID-19 outbreak, the effects of which are difficult to analyze and predict. The management will continue to monitor the evolvement of the pandemic and does not exclude the possibility of further adjusting the Group strategy and target as future situation and events unfold. Meanwhile, the management will continue to proactively explore and identify opportunities within the healthcare industry value chain to ensure the Group future growth over the long run.
Global Cord Blood expects negative impact from coronavirus in Q4 » 06:3702/1402/14/20
Global Cord Blood…
Global Cord Blood provided an update on the impact of the novel coronavirus, or n-CoV, on its operations. On December 31, 2019, the Wuhan Municipal Health Commission first reported the appearance of 2019-nCoV in the city. Since then, nCoV has spread to other regions of China, including in GCBC's primary markets of Beijing, Guangdong and Zhejiang. As the epidemic continued, different cities in China took different measures, including implementing complete or partial lockdowns. Meanwhile, the Chinese Lunar New Year holidays were extended in order to curb the spread of the virus, resulting in insufficient work force and delayed production for many industries. These preventative measures have also impacted the company's daily operations. The efforts enacted to control nCoV have placed heavy pressure on GCBC's marketing, promotional and sales activities. Part of the company's salesforce is unable to return to work due to lockdowns implemented in various cities, and some hospitals are restricting entrance to hospital staffs and patients. These measures have had a meaningful impact on the company's marketing efforts and access to potential clients, rendering client conversion extremely challenging at this time. The company is focused on protecting the safety and well-being of its work force while also ensuring that no disruption occurs to the day-to-day services that it provides to existing clients. Therefore, the company has increased its efforts to purchase necessary medical supplies and equipment, which is expected to lead to an increase in operating costs.The GCBC management team is paying close attention to the development of the virus and continues to assess the related risks and impacts on the business and its performance. Although the company has begun to explore new marketing models and initiatives, the management team believes that the benefits will be more meaningful in the long term. It remains difficult to estimate the duration and magnitude of nCoV, but the company anticipates a negative impact to its Q4 performance ending March 31. Because of the fluidity of the situation, management will not rule out the possibility of adjusting its sales target for the current fiscal year or its strategy for the coming fiscal year. In light of the rapidly changing situation across different regions, the company will continue to derive new countermeasures to mitigate nCoV impact in any way possible.
Committee for China Cord Fairness receives support for changes at Global Cord » 09:0411/2611/26/19
The Committee for China…
The Committee for China Cord Fairness announced that it has received and delivered consents representing more than 73% of the shares of Global Cord Blood Corporation held by the Company's minority shareholders in support of the Committee's proposal that any business transaction will be conditioned on the approval of the majority of the minority shareholders. The Committee expects Global Cord's Board of Directors to promptly confirm that it will comply with the clear wishes of the majority of the minority shareholders by approving such proposal. Additionally, the Committee delivered consents representing more than 58% of the shares of the Company held by the Company's minority shareholders in support of the Committee's five other corporate governance proposals. According to the Committee's proxy solicitor, D.F. King & Co., 73.04% of the minority shareholders of the Company participated in the consent solicitation; the minority shareholders include all of the Company's shareholders, excluding the Company's majority shareholder, Sanpower Group Corporation (the "Majority Shareholder"), and members of the management team.
Global Cord Blood comments on new Chinese regulation » 07:0711/2011/20/19
Global Cord Blood…
Global Cord Blood commented on a new regulation related to companies in possession of human DNA information relating to the People's Republic of China. The company is still in the process of evaluating the implications of the new regulation on the cord blood banking industry and its business. The Regulation of the People's Republic of China on the Administration of Human Genetic Resources has come into effect and the company recently received an inquiry concerning its impact on the company. The Regulation states that foreign organizations and domestic institutions founded or controlled by foreign entities will have to work with Chinese partners if they need human genetic resources in China for scientific research. The Regulation itself and its preliminary explanations do not specify whether the services that the company provides fall into its targeted regulation category. In light of the Regulation's ambiguity, the company will further evaluate the potential effects of the Regulation on the company and the cord blood banking industry in China. Further interpretation of the Regulation has not yet been obtained and the application of the Regulation on the company and the cord blood banking industry in China is not yet conclusive.
Global Cord Blood files $100M mixed securities shelf 09:5209/2309/23/19
Global Cord Blood rises 12.8% » 09:4709/1109/11/19
Global Cord Blood is up…
Global Cord Blood is up 12.8%, or 59c to $5.21.
Global Cord Blood falls -13.0% » 12:0008/2608/26/19
Global Cord Blood is down…
Global Cord Blood is down -13.0%, or -72c to $4.80.