Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2017shares | |
Document and Entity Information | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2017 |
Entity Registrant Name | China Cord Blood Corp |
Entity Central Index Key | 1,467,808 |
Current Fiscal Year End Date | --03-31 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 80,083,248 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Current assets | |||
Cash and cash equivalents | $ 509,976 | ¥ 3,510,264 | ¥ 3,008,422 |
Accounts receivable, less allowance for doubtful accounts (March 31, 2016: RMB38,261; March 31, 2017: RMB46,858 (US$6,808)) | 16,349 | 112,533 | 124,645 |
Inventories | 4,502 | 30,987 | 28,326 |
Prepaid expenses and other receivables | 2,546 | 17,524 | 24,412 |
Total current assets | 533,373 | 3,671,308 | 3,185,805 |
Property, plant and equipment, net | 80,113 | 551,434 | 574,567 |
Non-current deposits | 34,502 | 237,487 | 218,379 |
Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2016: RMB62,633; March 31, 2017: RMB70,744 (US$10,278)) | 19,634 | 135,148 | 165,011 |
Inventories | 9,992 | 68,775 | 64,322 |
Intangible assets, net | 15,499 | 106,686 | 111,307 |
Available-for-sale equity securities | 29,171 | 200,790 | 162,734 |
Other investment | 27,477 | 189,129 | 189,129 |
Deferred tax assets | 3,219 | 22,155 | 16,673 |
Total assets | 752,980 | 5,182,912 | 4,687,927 |
Current liabilities | |||
Bank loan | 60,000 | ||
Convertible note, net | 149,807 | 1,031,154 | |
Accounts payable | 1,607 | 11,060 | 13,248 |
Accrued expenses and other payables | 9,467 | 65,162 | 61,304 |
Deferred revenue | 47,026 | 323,690 | 257,692 |
Amounts due to related parties | 680 | 4,679 | 53,255 |
Income tax payable | 1,654 | 11,383 | 8,524 |
Total current liabilities | 210,241 | 1,447,128 | 454,023 |
Convertible notes, net | 906,222 | ||
Non-current deferred revenue | 228,030 | 1,569,579 | 1,321,239 |
Other non-current liabilities | 43,909 | 302,233 | 255,932 |
Deferred tax liabilities | 3,112 | 21,423 | 37,086 |
Total liabilities | 485,292 | 3,340,363 | 2,974,502 |
Shareholders' equity of China Cord Blood Corporation | |||
Ordinary shares - US$0.0001 par value, 250,000,000 shares authorized, 73,140,147 shares issued and 73,003,248 shares outstanding as of March 31, 2016 and 2017, respectively | 7 | 50 | 50 |
Additional paid-in capital | 136,044 | 936,417 | 873,654 |
Treasury stock, at cost (March 31, 2016 and 2017: 136,899 shares, respectively) | (409) | (2,815) | (2,815) |
Accumulated other comprehensive income | 3,549 | 24,428 | 84,779 |
Retained earnings | 127,815 | 879,775 | 753,585 |
Total equity attributable to China Cord Blood Corporation | 267,006 | 1,837,855 | 1,709,253 |
Non-controlling interests | 682 | 4,694 | 4,172 |
Total equity | 267,688 | 1,842,549 | 1,713,425 |
Commitments and contingencies | |||
Total liabilities and equity | $ 752,980 | ¥ 5,182,912 | ¥ 4,687,927 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2017CNY (¥)shares | Mar. 31, 2016$ / shares | Mar. 31, 2016CNY (¥)shares |
Consolidated Balance Sheets | ||||
Accounts receivable, allowance for doubtful accounts | $ 6,808 | ¥ 46,858 | ¥ 38,261 | |
Non-current accounts receivable, allowance for doubtful accounts | $ 10,278 | ¥ 70,744 | ¥ 62,633 | |
Ordinary shares, par value per share | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, shares authorized | 250,000,000 | 250,000,000 | 250,000,000 | |
Ordinary shares, shares issued | 73,140,147 | 73,140,147 | 73,140,147 | |
Ordinary shares, shares outstanding | 73,003,248 | 73,003,248 | 73,003,248 | |
Treasury stock, shares | 136,899 | 136,899 | 136,899 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($)$ / shares | Mar. 31, 2017CNY (¥)¥ / shares | Mar. 31, 2016CNY (¥)¥ / shares | Mar. 31, 2015CNY (¥)¥ / shares | |
Consolidated Statements of Comprehensive Income | ||||
Revenues | $ 110,411 | ¥ 759,978 | ¥ 662,999 | ¥ 635,122 |
Direct costs | (20,723) | (142,640) | (144,598) | (130,611) |
Gross profit | 89,688 | 617,338 | 518,401 | 504,511 |
Operating (expenses)/income | ||||
Research and development | (1,506) | (10,367) | (8,964) | (9,907) |
Sales and marketing | (25,930) | (178,482) | (148,155) | (127,927) |
General and administrative | (27,595) | (189,940) | (169,952) | (131,681) |
Other operating income from a related party | 3,823 | 26,316 | ||
Total operating expenses, net | (51,208) | (352,473) | (327,071) | (269,515) |
Operating income | 38,480 | 264,865 | 191,330 | 234,996 |
Other expense, net | ||||
Interest income | 2,530 | 17,416 | 18,218 | 18,252 |
Interest expense | (17,349) | (119,418) | (107,967) | (101,102) |
Foreign currency exchange losses | (6) | (38) | (972) | (231) |
Dividend income | 7 | 45 | 49,198 | 2,344 |
Impairment loss on available-for-sale equity securities | (368) | (2,533) | (8,361) | |
Others | 868 | 5,974 | (113) | 861 |
Total other expense, net | (14,318) | (98,554) | (49,997) | (79,876) |
Income before income tax | 24,162 | 166,311 | 141,333 | 155,120 |
Income tax expense | (5,466) | (37,622) | (50,000) | (47,327) |
Net income | 18,696 | 128,689 | 91,333 | 107,793 |
Net income attributable to non-controlling interests | (363) | (2,499) | (363) | (501) |
Net income attributable to China Cord Blood Corporation's shareholders | $ 18,333 | ¥ 126,190 | ¥ 90,970 | ¥ 107,292 |
Earnings per share: | ||||
Basic | (per share) | $ 0.23 | ¥ 1.59 | ¥ 1.25 | ¥ 1.36 |
Diluted | (per share) | $ 0.23 | ¥ 1.59 | ¥ 1.25 | ¥ 1.36 |
Other comprehensive (losses)/income, net of nil income taxes | ||||
Foreign currency translation adjustments | $ (3,241) | ¥ (22,309) | ¥ (19,124) | ¥ 4,642 |
Unrealized holding (loss)/gain arising during the year | (5,895) | (40,575) | 32,312 | (25,675) |
Reclassification adjustment for loss included in net income | 368 | 2,533 | 8,361 | |
Total other comprehensive (losses)/income | (8,768) | (60,351) | 21,549 | (21,033) |
Comprehensive income | 9,928 | 68,338 | 112,882 | 86,760 |
Comprehensive income attributable to non-controlling interests | (363) | (2,499) | (363) | (501) |
Comprehensive income attributable to China Cord Blood Corporation's shareholders | $ 9,565 | ¥ 65,839 | ¥ 112,519 | ¥ 86,259 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Other comprehensive (losses)/income | |||
Other comprehensive (losses)/income, taxes | ¥ 0 | ¥ 0 | ¥ 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity ¥ in Thousands, $ in Thousands | Share capitalUSD ($)shares | Share capitalCNY (¥)shares | Additional paid-in capitalUSD ($) | Additional paid-in capitalCNY (¥) | Treasury stockUSD ($)shares | Treasury stockCNY (¥)shares | Accumulated other comprehensive incomeUSD ($) | Accumulated other comprehensive incomeCNY (¥) | Retained earningsUSD ($) | Retained earningsCNY (¥) | Non-controlling interestsUSD ($) | Non-controlling interestsCNY (¥) | USD ($)shares | CNY (¥)shares |
Balance at Mar. 31, 2014 | ¥ 50 | ¥ 798,221 | ¥ (2,815) | ¥ 84,263 | ¥ 555,323 | ¥ 4,954 | ¥ 1,439,996 | |||||||
Balance, shares at Mar. 31, 2014 | shares | 73,140,147 | 73,140,147 | (136,899) | (136,899) | ||||||||||
Net income | 107,292 | 501 | 107,793 | |||||||||||
Other comprehensive income/losses | (21,033) | (21,033) | ||||||||||||
Share-based compensation | 16,457 | 16,457 | ||||||||||||
Balance at Mar. 31, 2015 | ¥ 50 | 814,678 | ¥ (2,815) | 63,230 | 662,615 | 5,455 | ¥ 1,543,213 | |||||||
Balance, shares at Mar. 31, 2015 | shares | 73,140,147 | 73,140,147 | (136,899) | (136,899) | 73,003,248 | 73,003,248 | ||||||||
Net income | 90,970 | 363 | ¥ 91,333 | |||||||||||
Other comprehensive income/losses | 21,549 | 21,549 | ||||||||||||
Share-based compensation | 58,976 | 58,976 | ||||||||||||
Dividend declared to holder of non-controlling interests | (1,646) | (1,646) | ||||||||||||
Balance at Mar. 31, 2016 | ¥ 50 | 873,654 | ¥ (2,815) | 84,779 | 753,585 | 4,172 | ¥ 1,713,425 | |||||||
Balance, shares at Mar. 31, 2016 | shares | 73,140,147 | 73,140,147 | (136,899) | (136,899) | 73,003,248 | 73,003,248 | ||||||||
Net income | 126,190 | 2,499 | $ 18,696 | ¥ 128,689 | ||||||||||
Other comprehensive income/losses | (60,351) | (8,768) | (60,351) | |||||||||||
Share-based compensation | 62,763 | 62,763 | ||||||||||||
Dividend declared to holder of non-controlling interests | (1,977) | (1,977) | ||||||||||||
Balance at Mar. 31, 2017 | $ 7 | ¥ 50 | $ 136,044 | ¥ 936,417 | $ (409) | ¥ (2,815) | $ 3,549 | ¥ 24,428 | $ 127,815 | ¥ 879,775 | $ 682 | ¥ 4,694 | $ 267,688 | ¥ 1,842,549 |
Balance, shares at Mar. 31, 2017 | shares | 73,140,147 | 73,140,147 | (136,899) | (136,899) | 73,003,248 | 73,003,248 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Operating activities: | ||||
Net income | $ 18,696 | ¥ 128,689 | ¥ 91,333 | ¥ 107,793 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Loss/(gain) on disposal of property, plant and equipment | (32) | (223) | (87) | 23 |
Depreciation of property, plant and equipment | 6,662 | 45,860 | 45,545 | 45,988 |
Amortization of intangible assets | 672 | 4,621 | 4,621 | 4,621 |
Deferred income taxes | (3,071) | (21,145) | (1,060) | (912) |
Provision for doubtful accounts | 4,297 | 29,574 | 20,251 | 25,042 |
Interest on convertible notes | 8,648 | 59,528 | 49,995 | 43,412 |
Amortization of debt issuance costs | 573 | 3,947 | 3,712 | 3,610 |
Share-based compensation | 9,042 | 62,241 | 58,684 | 16,535 |
(Gain)/loss on trading securities | 515 | (201) | ||
Impairment loss on available-for-sale equity securities | 368 | 2,533 | 8,361 | |
Changes in operating assets and liabilities: | ||||
Trading securities | 7,450 | (7,531) | ||
Accounts receivable | 1,802 | 12,401 | 5,093 | (19,273) |
Inventories | (1,034) | (7,114) | (10,621) | (2,059) |
Prepaid expenses and other receivables | 1,020 | 7,023 | (4,789) | 17,410 |
Non-current deposits | 2 | 12 | 11 | 12 |
Accounts payable | (144) | (991) | 575 | 2,251 |
Accrued expenses and other payables | (369) | (2,541) | (28,866) | 276 |
Deferred revenue | 45,667 | 314,338 | 259,392 | 299,186 |
Amounts due to related parties | (7,246) | (49,879) | 31,882 | (545) |
Income tax payable | 415 | 2,859 | (1,557) | 7,510 |
Other non-current liabilities | 6,668 | 45,899 | 40,557 | 51,718 |
Net cash provided by operating activities | 92,636 | 637,632 | 580,997 | 594,866 |
Investing activities: | ||||
Purchase of property, plant and equipment | (3,587) | (24,693) | (16,630) | (37,797) |
Proceeds from disposal of property, plant and equipment | 40 | 272 | 150 | 13 |
Acquisition of available-for-sale equity securities | (9,611) | (66,154) | (4,647) | |
Net cash used in investing activities | (13,158) | (90,575) | (16,480) | (42,431) |
Financing activities: | ||||
Repayment of bank loan | (8,717) | (60,000) | (60,000) | (60,000) |
Proceeds from bank loan | 60,000 | 60,000 | ||
Payment for dividends to holder of non-controlling interests | (1,646) | |||
Net cash used in financing activities | (8,717) | (60,000) | (1,646) | |
Effect of foreign currency exchange rate change on cash and cash equivalents | 2,148 | 14,785 | 8,896 | 1,319 |
Net increase in cash and cash equivalents | 72,909 | 501,842 | 571,767 | 553,754 |
Cash and cash equivalents at beginning of year | 437,067 | 3,008,422 | 2,436,655 | 1,882,901 |
Cash and cash equivalents at end of year | 509,976 | 3,510,264 | 3,008,422 | 2,436,655 |
Non-cash investing activity: | ||||
Payable for property, plant and equipment | 83 | 572 | 235 | |
Supplemental disclosures of cash flow information: | ||||
Cash paid during the year for income taxes | 8,355 | 57,506 | 52,967 | 47,234 |
Cash refund during the year for income taxes | 232 | 1,598 | 350 | 18,404 |
Cash paid for interest, net of capitalized interest | $ 13,665 | ¥ 94,057 | ¥ 49,572 | ¥ 49,892 |
Principal activities, reorganiz
Principal activities, reorganization and reverse recapitalization, and basis of presentation | 12 Months Ended |
Mar. 31, 2017 | |
Principal activities, reorganization and reverse recapitalization, and basis of presentation | |
Principal activities, reorganization and reverse recapitalization, and basis of presentation | 1 Principal activities, reorganization and reverse recapitalization, and basis of presentation (a) Principal activities China Cord Blood Corporation (the “Company”) and its subsidiaries (collectively the “Group”) are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China (the “PRC”). As of March 31, 2017, the Group has three operating cord blood banks in the Beijing municipality, the Guangdong province and the Zhejiang province, the PRC. The Company’s shares are listed on the New York Stock Exchange. The Group provides cord blood testing, processing and storage services under the direction of subscribers for a cord blood processing fee and a storage fee. The Group also tests, processes and stores donated cord blood, and provides matching services to the public for a fee. The operation of cord blood banks in the PRC is regulated by certain laws and regulations. Due to the lack of a consistent and well-developed regulatory framework, operation in the cord blood banking industry in the PRC involves significant ambiguities, uncertainties and risks. The industry is highly regulated and any unilateral changes in regulations by the authorities may have a significant adverse impact on the Group’s results of operations. (b) Reorganization and reverse recapitalization The Company was formerly known as Pantheon China Acquisition Corp. (“Pantheon”), a blank check company whose objective was to acquire, through a stock exchange, asset acquisition or other similar business combination, an operating business that has its principal operations located in the PRC, or control such operating business through contractual arrangements. On November 3, 2008, China Cord Blood Services Corporation (“CCBS”) and its shareholders executed a Share Exchange Agreement with the Company. Pursuant to the Share Exchange Agreement, shareholders of CCBS were entitled to exchange their shares in CCBS for up to 57,851,240 shares of common stock of the Company. Shareholders holding 100% and 76% of CCBS’s ordinary shares and redeemable ordinary shares (collectively the “Participating Shareholders”), respectively, executed the Share Exchange Agreement and agreed to sell their 93.94% equity interests in CCBS to the Company for a consideration of US$328,790 in exchange for 54,345,104 shares of common stock of the Company (valued at US$6.05 per share of common stock) (the “Share Exchange”). The Share Exchange was approved at the Company’s special meeting of shareholders held on June 29, 2009 and was completed on June 30, 2009. Upon completion of the Share Exchange, the Company was renamed China Cord Blood Corporation and the Company was redomiciled to the Cayman Islands. The 54,345,104 shares of common stock of the Company held by the Participating Shareholders represent 91.7% of the then outstanding shares of the Company upon completion of the Share Exchange. Further, management of CCBS continued as the majority of the senior management of the Company upon completion of the Share Exchange. CCBS was therefore treated as the accounting acquirer in the Share Exchange. Prior to the Share Exchange, the Company did not operate a business. The Share Exchange was thus accounted for as the issuance of securities by CCBS in exchange for the assets and liabilities of Pantheon, accompanied by a recapitalization to utilize the share structure of Pantheon as the legal acquirer. In August 2009, the Company entered into agreements to exchange 3,506,136 of its newly issued ordinary shares for the remaining 24% of redeemable shares of CCBS held by shareholders who previously elected not to participate in the Share Exchange, on terms substantially similar to those of the Share Exchange. Upon the completion of such exchange, all the remaining redeemable ordinary shares of CCBS converted into ordinary shares of the Company, which carry no redemption rights, and CCBS became a wholly owned subsidiary of the Company. CCBS was incorporated in the Cayman Islands in January 2008 under the Cayman Islands Companies Law as an exempted company with limited liability. CCBS was incorporated as part of the reorganization of China Stem Cells Holdings Limited (“CSC Holdings”), which had two main operating subsidiaries in the PRC, Beijing Jiachenhong Biological Technologies Co., Ltd. (“Beijing Jiachenhong”) and Guangzhou Municipality Tianhe Nuoya Bio-engineering Co., Ltd. (“Guangzhou Nuoya”) at the time of the reorganization. Beijing Jiachenhong was established under the laws of the PRC in June 2001 as a domestic limited liability company. It became a Sino-Foreign Investment Enterprise in September 2003 and became a Wholly Foreign Owned Enterprise (“WFOE”) in March 2005. Beijing Jiachenhong is engaged in the provision of umbilical cord blood storage and ancillary services in the Beijing municipality, the PRC. In May 2007, China Stem Cells (South) Company Limited (“CSC South”), a then 90% subsidiary of the Company, acquired the entire equity interest of Guangzhou Nuoya for consideration of RMB30,949. Guangzhou Nuoya was established under the laws of the PRC in June 1997 as a domestic limited liability company. It became a WFOE in May 2007. Guangzhou Nuoya has been granted the right to operate cord blood banks in the Guangdong province, the PRC. In November 2012, CSC South repurchased 10% of its shares from Cordlife (Hong Kong) Limited, a subsidiary of Cordlife Group Limited (“CGL”), at a consideration of US$16,800. The shares repurchased were subsequently cancelled. The difference between the consideration paid and the carrying amount of non-controlling interest equal to RMB70,774 at the repurchase date was charged to additional paid-in capital. Concurrently, CGL acquired 7,314,015 shares, which were held by the Company as treasury stock (representing 10% of the Company’s ordinary shares at the time of the transaction) at a consideration of US$20,800. The difference between the consideration received from sale of the shares over the cost of the treasury shares equal to RMB3,341 was credited to additional paid-in capital. As a result, the Company received a net proceed of US$4,000 (RMB25,320) from the above two transactions and CSC South and its subsidiary became wholly owned subsidiaries of the Company. In December 2010, a non-wholly owned subsidiary, Zhejiang Lukou Biotechnology Co., Ltd. (“Zhejiang Lukou”), was established. The Group holds a 90% equity interest in Zhejiang Lukou through capital injection of RMB45,000, while the non-controlling shareholders contributed plant and equipment with fair value of RMB5,000 in return for the remaining 10% equity interests. In February 2011, the Group acquired the right to operate the cord blood bank in the Zhejiang province, the PRC, from a third party at a consideration of US$12,500 (equivalent to RMB82,124 (Note 8)). (c) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). This basis of accounting differs in certain material respects from that used for the preparation of the statutory books of the Company’s consolidated subsidiaries, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable in the place of domicile of the respective entities in the Group. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the statutory books of account of the Company’s consolidated subsidiaries to present them in conformity with U.S. GAAP. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Mar. 31, 2017 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2 Summary of significant accounting policies (a) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its majority-owned subsidiaries and a variable interest entity in which the Company is the primary beneficiary. For consolidated subsidiaries where the Company’s ownership is less than 100%, the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the Company, are presented as non-controlling interests. All significant intercompany balances and transactions have been eliminated on consolidation. (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the estimate of selling price for individual deliverables in multiple-element revenue arrangements, the estimated number of successful match units over the estimated weighted average remaining useful life of donated cord blood units, the useful lives of property, plant and equipment and intangible assets, the recoverability of property, plant and equipment and intangible assets, the collectibility of accounts receivables, the realizability of inventories and deferred tax assets and the fair values of share-based compensation. (c) Foreign currency transactions and translation The reporting currency of the Company is Renminbi (“RMB”). The functional currency of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou is RMB and the functional currency of the Company is United States dollars (“US$”). The functional currencies of subsidiaries of the Company outside the PRC are either US$ or Hong Kong dollars. Transactions of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou denominated in currencies other than RMB are translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”) prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates quoted by the PBOC at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains/(losses) in the consolidated statements of comprehensive income. Transactions of the Company and subsidiaries outside the PRC denominated in currencies other than their functional currencies are translated into their functional currencies at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into their functional currencies using the applicable exchange rates at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains/(losses) in the consolidated statements of comprehensive income. Assets and liabilities of the Company and subsidiaries outside the PRC are translated into RMB using the exchange rate at the balance sheet date. Revenues and expenses are translated at the average exchange rates prevailing during the year. The adjustments resulting from translation of financial statements of the Company and subsidiaries outside the PRC are recorded as a separate component of accumulated other comprehensive income within shareholders’ equity. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the PBOC or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. For the convenience of the readers, certain amounts as of and for the year ended March 31, 2017 included in the accompanying consolidated financial statements have been translated into U.S. dollars at the rate of US$1.00 = RMB6.8832, being the spot exchange rate of U.S. dollars in effect on March 31, 2017 for cable transfers in RMB per U.S. dollar as certified for customs purposes by the Federal Reserve, the central bank of the United States of America. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at that rate or at any other rate on March 31, 2017 or at any other date. The U.S. dollars convenience translation is not required under U.S. GAAP and all U.S. dollars convenience translation amounts in the accompanying consolidated financial statements are unaudited. (d) Cash and cash equivalents Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Cash and cash equivalents of the Group are mainly maintained in the PRC and are denominated in several currencies. As of March 31, 2016 and 2017, cash and cash equivalents maintained in the PRC amounted to RMB2,820,472 and RMB3,432,022 (US$498,608), respectively. The Group’s cash and cash equivalents denominated in U.S. dollars, Australian dollars, Renminbi, Hong Kong dollars and Singapore dollars are as follows: March 31, 2016 2017 Original currency RMB Original currency RMB U.S. dollars Australian dollars Renminbi Hong Kong dollars Singapore dollars Cash and cash equivalents held at financial institutions located in the PRC and Hong Kong are insured up to certain amount. Management believes that these major financial institutions have high credit ratings. (e) Investment securities Management determines the appropriate classification of its investment securities at the time of purchase and reevaluates such designations at each reporting date. Trading securities are recorded at fair value. Realized and unrealized holding gains and losses, net of the related tax effect, on trading securities are included in earnings. Available-for-sale equity securities are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale equity securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale equity securities are determined on a specific-identification basis. Where the fair value of an investment in equity securities is not readily determinable, the investment is stated at cost. A decline in the market value of available-for-sale securities that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. In determining whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Dividend income is recognized in other income when earned. (f) Accounts receivable Accounts receivable represent amounts due from subscribers for cord blood processing and storage services, which are recognized in accordance with the Company’s revenue recognition policies (Note 2(k)). Installments receivable from subscribers which are due for repayment in over one year under the deferred payment option are classified as non-current accounts receivable. Accounts receivable are stated net of allowance for doubtful accounts. The allowance for doubtful accounts is the Group’s best estimate of losses in the Group’s accounts receivable, which is determined based on historical write-off experience, customer specific facts and economic conditions. The Group reviews its allowances for doubtful accounts quarterly. Outstanding account balances are reviewed on a pooled basis by ageing of such balances. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group’s PRC subsidiaries are required to comply with local tax requirements on the write-offs of doubtful accounts, which allow for such write-offs only when the related account balances are aged over three years and sufficient evidence is available to prove the debtor’s inability to make payments. For financial reporting purposes, the Company’s PRC subsidiaries generally record write-offs of doubtful accounts at the same time the local tax requirements for the write-offs are met. As a result, there are generally time lags between the time when a provision for doubtful accounts is recorded and the time the doubtful accounts are written off against the related allowance. The Group does not have any off-balance-sheet credit exposure related to its customers. (g) Inventories The Group collects, tests, freezes and stores donated umbilical cord blood for future transplantation or research purposes in return for a fee. Collection, testing and processing costs attributable to the processing of donated umbilical cord blood are capitalized as inventories, stated at the lower of cost or market on a weighted-average basis, and recognized as direct costs when revenue is recognized when the cord blood unit is delivered and the risk of loss is transferred to the recipient. Cost comprises direct materials, direct labor and an allocation of production overheads. Inventories that are not expected to be realized within 12 months from the balance sheet date are classified as non-current assets. Consumables and supplies are classified as current assets. (h) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation on property, plant and equipment is calculated based on the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the assets as follows: Buildings 37.5 - 50 years Leasehold improvements Shorter of the lease term or estimated useful lives of 10 years Machineries 5 - 10 years Motor vehicles 5 years Furniture, fixtures and office equipment 3 - 5 years No depreciation expense is provided in respect of construction-in-progress. Interest expense incurred related to the construction of property, plant and equipment is capitalized. The capitalization of interest expense as part of the cost of a qualifying asset commences when expenditures for the asset have been made, activities that are necessary to get the asset ready for its intended use are in progress and interest cost is being incurred. The capitalization period ends when the asset is substantially complete and ready for its intended use. Depreciation of property, plant and equipment attributable to the processing of donated umbilical cord blood for future transplantation is capitalized as part of inventories, and is expensed to direct costs when the cord blood unit is delivered and the risk of loss is transferred to the recipient. (i) Intangible assets Intangible assets represent the operating rights to operate cord blood bank and are stated at the fair value on the date of acquisition less accumulated amortization. Where payment for an operating right is non-deductible for tax purpose, the simultaneous equations method is used to record the assigned value of the asset and the related deferred tax liability, such that the carrying amount of the asset upon initial recognition less deferred tax liability recognized equals the amount paid for the asset. Amortization expenses are recognized on a straight-line basis over the estimated useful life of the operating rights of 30 years. (j) Impairment of long-lived assets Long-lived assets, including property, plant and equipment and intangible assets with finite useful lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flows models, quoted market values and third-party independent appraisals, as considered necessary. No impairment of long-lived assets was recognized for the years ended March 31, 2015, 2016 and 2017. (k) Revenue recognition The Group receives fees for collecting, testing, freezing and storing of cord blood units. Once the cord blood units are collected, tested, screened and successfully meet all of the required attributes, the Group freezes the units and stores them in a cryogenic freezer. Under the cord blood processing and storage agreement (“Agreement”) signed with the customer, the Group charges separate processing fee and storage fees to the customer and such Agreement typically provides for a storage period of eighteen years with successive one-year renewal periods after eighteen years. The Agreement is a multiple-element arrangement, which includes (i) the processing of cord blood unit and (ii) the storage of cord blood unit. The Group accounts for the arrangement under the ASC 605-25, Revenue Recognition — Multiple-Element Arrangements. In accordance with ASC 605-25, revenue arrangements that include multiple elements are analyzed to determine whether the deliverables can be divided into separate units of accounting or treated as a single unit of accounting. The consideration received is allocated among the separate units of accounting based on their relative selling prices determined based on prices of these elements as sold on a stand-alone basis, and the applicable revenue recognition criteria are applied to each of the separate units. In an arrangement with multiple deliverables, the delivered product or service shall be considered a separate unit of accounting when the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis; and (2) if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item or items is considered probable and substantially in the control of the Group. Based on evaluation of the criteria, the Group has determined that the cord blood processing services and cord blood storage services are separate units. Pursuant to the Agreement, no penalty is charged to customers for early termination of the cord blood storage service. The Group considers all reasonably available information to allocate the overall arrangement fee to cord blood processing and cord blood storage services based on their relative selling prices. The Group recognizes processing fee revenue upon successful completion of processing services and when the cord blood unit meets all the required attributes for storage, and recognizes the storage fee revenues ratably over the annual storage period. During the years ended March 31, 2015, 2016 and 2017, the Group offered its customers three payment options: (i) Payment of the processing fee upon delivery of the cord blood unit to the Group’s premises for processing and the annual storage fee in advance at the beginning of each one-year renewal period; (ii) Payment of the processing fee upon delivery of the cord blood unit to the Group’s premises for processing and an upfront payment of storage fees for a period of eighteen years; and (iii) Payment of the processing fee by installment over multiple periods and the annual storage fee in advance at the beginning of each one-year renewal period or an upfront payment of storage fees for a period of eighteen years paid by four installments. Certain installment option includes an initial processing fee payment upon delivery of the cord blood unit to the Group’s premises for processing and an incremental annual payment for the consecutive periods, representing a surcharge to the total amount of processing fees payable under payment options (i) and (ii). Under payment option (iii), installments due for payment beyond one year are classified as non-current accounts receivable, and the revenue is recorded at the present value of the payments. The difference between the present value of the receivable and the nominal or principal value of the processing fee is recognized as interest income over the contractual repayment period using the effective interest rate method. The interest rate used to determine the present value of total amount receivable is the rate at which the subscribers can obtain financing of a similar nature from other sources at the date of the transaction. The recognition of storage revenue is ceased when the collectability of the storage fees from the customers is not reasonably assured due to delinquency of payment by the customers. During the years ended March 31, 2015, 2016 and 2017, the Group ceased recognizing storage revenue from subscribers who were delinquent for more than 24 months. Fees derived from the provision of donated cord blood for transplantation and research are recognized when the cord blood unit is delivered and the risk of loss is transferred to the recipient. The Group’s revenues are net of value-added tax collected on behalf of tax authorities at 6% on the invoiced amount in respect of the services rendered. (l) Research and development costs Research and development costs are incurred for research activities conducted to enhance collection and storage technologies, and measures to improve the results in umbilical cord blood stem cells extraction and separation. They also include research expenses on the use of cord blood stem cells in different medical treatments. Research and development costs are expensed as incurred. (m) Advertising costs Advertising costs are expensed as incurred and included in sales and marketing expenses in the consolidated statements of comprehensive income in the amount of RMB30,899, RMB35,477 and RMB32,331 (US$4,697) for the years ended March 31, 2015, 2016 and 2017, respectively. (n) Employee benefits Contributions to employee benefits (which are defined contribution plans) are charged to the consolidated statements of comprehensive income when the related employee service is provided. The Group does not have any defined benefit plans. (o) Debt issuance costs Costs incurred by the Company that are directly attributable to the issuance of the convertible notes are deferred and charged to the consolidated statements of comprehensive income using an effective interest rate method from the date the convertible notes were issued to the earliest date the holders of the convertible notes can demand payment, which is five years. (p) Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases, tax loss carry forwards and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. The Group recognizes in the consolidated financial statements the impact of a tax position if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of comprehensive income. A deferred tax liability is not recognized for the excess of the Company’s financial statements carrying amount over the tax base of its investment in a foreign subsidiary, if the subsidiary has invested or will invest the undistributed earnings indefinitely. (q) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, including legal proceedings and claims that relate to a wide range of matters, including, among others, product liability. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. (r) Earnings per share Basic earnings per ordinary share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income attributable to ordinary shareholders is allocated between ordinary shares and participating securities based on contractual participating rights of security to share in undistributed earnings as if all of the earnings had been distributed. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders, as adjusted to exclude any income or expenses related to dilutive ordinary equivalents shares by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period. Dilutive potential ordinary shares consist of the ordinary shares issuable upon the conversion of the convertible notes applying the if-converted method. Dilutive potential ordinary shares in the diluted earnings per share computation are excluded to the extent that their effect is anti-dilutive. (s) Share-based compensation The Group recognizes share-based payments as compensation cost and measures such cost based on the grant date fair value of the equity instrument issued. Compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. (t) Segment reporting The Group has one operating segment, as defined by ASC 280, Segment Reporting, which is processing and storage of cord blood units. All of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. (u) Fair value measurement The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. See Note 22 to the consolidated financial statements. (v) Recently issued accounting standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance was effective for annual reporting and interim periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective application, with early adoption not permitted. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which amends ASU 2014-09 and defers its effective date to fiscal years and interim reporting periods beginning after December 15, 2017. ASU 2015-14 permits earlier application only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently in the process of analyzing each of the Company’s revenue streams in accordance with the new revenue standard to determine the impact on the Company’s consolidated financial statements. The Company plans to continue the evaluation, analysis, and documentation of its adoption of ASU 2014-09 (including those subsequently issued updates that clarify its provisions) in 2017 as the Company works towards the implementation and finalizes its determination of the impact that the adoption will have on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), to simplify the presentation of deferred income taxes by eliminating the requirement to separate deferred tax assets and liabilities into current and non-current amounts. ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current and was adopted by the Company in the current fiscal year ended March 31, 2017. Upon the adoption of this ASU 2015-17, current deferred tax assets of RMB14,056 and current deferred tax liabilities of RMB14,300 as of March 31, 2016 were reclassified as non-current deferred tax assets and liabilities respectively. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires all equity investments to be measured at fair value, with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). ASU 2016-01 will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 specifies the accounting for leases. For operating leases, ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. ASU 2016-02 also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. ASU 2016-02 is effective for publicly-traded companies for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which relates to accounting for employee share-based payments. ASU 2016-09 addresses several aspects of the accounting for share-based payment award transactions, including (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification in the statement of cash flows; and (d) accounting for forfeitures of share-based payments. ASU 2016-09 will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted ASU 2016-09 in the current fiscal year ended March 31, 2017 and there is no material impact on the consolidated financial statements upon adopting this standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows — Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. Early adoption is permitted, including adoption in an interim period. The standard should be applied usin |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Mar. 31, 2017 | |
Accounts receivable, net | |
Accounts receivable, net | 3 Accounts receivable, net (a) Accounts receivable consist of the following: March 31, 2016 2017 2017 RMB RMB US$ Accounts receivable Less: Allowance for doubtful accounts ) ) ) Total accounts receivable, net Representing: Current portion: - Processing fees - Storage fees - Others Non-current portion: - Processing fees Total accounts receivable, net Non-current gross accounts receivable as of March 31, 2017 are due for payment as follows: March 31, 2017 RMB US$ Fiscal years ending March 31, 2019 2020 2021 2022 2023 and thereafter (b) An aging analysis of gross accounts receivable based on due date is as follows: March 31, 2016 2017 2017 RMB RMB US$ Not past due Within one year past due Between one to two years past due Over two years past due Total gross accounts receivable (c) An analysis of the allowance for doubtful accounts is as follows: Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Balance at beginning of year Charged to allowance for doubtful accounts Write-off charged against the allowance for the year ) ) ) ) Balance at end of year |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2017 | |
Inventories | |
Inventories | 4 Inventories Inventories consist of the following: March 31, 2016 2017 2017 RMB RMB US$ Current portion: - Consumables and supplies Non-current portion: - Processing costs capitalized in donated umbilical cord blood Total current and non-current inventories Collection, testing and processing costs attributable to the processing of donated umbilical cord blood are capitalized as inventories. Management assesses the recoverability of such inventories with reference to future projections of matching fees, number of donated cord blood units of the Group, demand for cord blood units for transplantation and research purposes, and the probability of finding a match in light of the number of units held. Based on such assessments, the management considers that the cord blood processing costs capitalized are recoverable and no provision for inventories was made during the years ended March 31, 2015, 2016 and 2017. The Group recognizes the revenue for one matched donated umbilical cord blood unit upon shipment or delivery of the unit and recognizes the cost of the cord blood unit equal to the carrying amount of the total inventory (donated umbilical cord blood units) divided by the estimated future number of successful matches which would become realized through sales during the estimated weighted average remaining useful life of the donated umbilical cord blood unit. As of March 31, 2017, the weighted average remaining useful life of the donated umbilical cord blood units was estimated to be approximately 19 years. Based on the historical increase in the number of donated umbilical cord blood matching inquiries and the number of successful matches of donated umbilical cord blood units, the Group estimated the number of successful matches of donated umbilical cord blood units will increase by 7% per annum. There were no material changes to the estimates and assumptions underlying the methodology for the years ended March 31, 2015, 2016 and 2017. |
Prepaid expenses and other rece
Prepaid expenses and other receivables | 12 Months Ended |
Mar. 31, 2017 | |
Prepaid expenses and other receivables | |
Prepaid expenses and other receivables | 5 Prepaid expenses and other receivables Prepaid expenses and other receivables consist of the following: March 31, 2016 2017 2017 RMB RMB US$ Prepaid expenses VAT tax receivables Other receivables Total prepaid expenses and other receivables Other receivables mainly include advance payments to employees and rental deposits. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Mar. 31, 2017 | |
Property, plant and equipment, net | |
Property, plant and equipment, net | 6 Property, plant and equipment, net Property, plant and equipment, net consist of the following: March 31, 2016 2017 2017 RMB RMB US$ Buildings Leasehold improvements Machineries Motor vehicles Furniture, fixtures and equipment Construction-in-progress Less: Accumulated depreciation ) ) ) Total property, plant and equipment, net Depreciation expense of property, plant and equipment is allocated to the following expense items: Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Direct costs Research and development Sales and marketing General and administrative Total depreciation expense As of March 31, 2016, buildings with carrying amount of RMB100,479 were collateralized for short-term bank loans of RMB60,000 (Note 11). |
Non-current deposits
Non-current deposits | 12 Months Ended |
Mar. 31, 2017 | |
Non-current deposits | |
Non-current deposits | 7 Non-current deposits Non-current deposits consist of the following: March 31, Note 2016 2017 2017 RMB RMB US$ Investment deposit (i) Deposit for purchase of machineries Total non-current deposits Note: (i) The Group previously entered into a Letter of Intent with a third party (the “Potential Seller”) for a potential acquisition of the equity interests in a company in the healthcare industry with a refundable earnest money deposit of US$33,660 (RMB232,824). Due to the change in circumstances, the parties entered into a subsequent agreement in May 2017 regarding the return of the earnest money deposit, with the Potential Seller providing a performance guarantee to the Company. |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Mar. 31, 2017 | |
Intangible assets, net | |
Intangible assets, net | 8 Intangible assets, net March 31, 2016 2017 2017 RMB RMB US$ Cord blood bank operating rights Less: Accumulated depreciation ) ) ) Total intangible assets, net Intangible assets represent the cord blood bank operating rights in the Guangdong province and the Zhejiang province, the PRC. The cord blood bank operating right in the Guangdong province was acquired through the acquisition of Guangzhou Nuoya in May 2007. The estimated useful life of the operating right is thirty years. Amortization expenses of the operating right in the Guangdong province were RMB971, RMB971 and RMB971 (US$141) for the years ended March 31, 2015, 2016 and 2017, respectively. The operating right is subject to renewal and the next renewal is due in May 2018. In February 2011, the Group acquired the right to operate the cord blood bank in the Zhejiang province from a third party for cash consideration of US$12,500 (equivalent to RMB82,124). Payment for the operating right is non-deductible for tax purpose. The simultaneous equations method is used to record the assigned value of the asset of RMB109,499 and a related deferred tax liability of RMB27,375 (Note 17(c)), in accordance with the guidance in ASC 740-10-25-51, such that the carrying amount of the asset upon initial recognition less the related deferred tax liability equals the cash consideration paid. The estimated useful life of the Zhejiang operating right is thirty years. Amortization expenses were RMB3,650, RMB3,650 and RMB3,650 (US$531) for the years ended March 31, 2015, 2016 and 2017, respectively. The operating right is subject to renewal and the next renewal is due in September 2019. The Group determined that a thirty-year period as useful life of the cord blood bank operating rights to be appropriate, following the pattern in which the expected benefits of the asset will be consumed or otherwise used up. The Group’s renewal period with the provincial governmental authorities generally is every three (for cord blood banks in Guangdong and Zhejiang) or nine (for cord blood bank in Beijing) years. The Group has historically renewed cord blood bank operating rights without incurring any significant costs. There are no other legal or regulatory provisions that limit the useful life of the cord blood bank operating rights or that cause the cash flows and useful life of such cord blood bank operating rights to be constrained. In addition, the Group expects the effect of obsolescence, demand, competition, and other economic factors to be minimal. The Group engaged independent third party valuation firms in determining the fair values of the cord blood bank operating rights during the acquisitions. The fair values of the cord blood bank operating rights were determined using an income approach and considered assumptions (including turnover rate) that a market participant would make consistent with the highest and best use of the asset by market participants. The periods of expected cash flows used to measure the fair values of the cord blood bank operating rights were thirty years. Without evidence to the contrary, the Group expects that the cord blood bank operating rights will be renewed at the same rate as a market participant would expect, and no other factors would indicate a different useful life is more appropriate. Accordingly, in the absence of other entity-specific factors, the useful life of the cord blood bank operating rights was determined to be thirty years. A straight-line method of amortization has been adopted as the pattern in which the economic benefits of the operating rights are used up cannot be reliably determined. Estimated amortization expenses for the years ending after March 31, 2017 are: March 31, 2017 RMB US$ Fiscal years ending March 31, 2018 2019 2020 2021 2022 2023 and thereafter Total amortization expenses |
Available-for-sale equity secur
Available-for-sale equity securities | 12 Months Ended |
Mar. 31, 2017 | |
Available-for-sale equity securities | |
Available-for-sale equity securities | 9 Available-for-sale equity securities March 31, 2016 2017 2017 RMB RMB US$ Listed equity securities Life Corporation Limited - listed on Australian Securities Exchange Cordlife Group Limited - listed on Singapore Exchange Listed fund investments — As of March 31, 2016 and 2017, the Group held 8,122,222 ordinary shares in Life Corporation Limited (“LFC”) and 25,516,666 ordinary shares in CGL. LFC is principally engaged in the provision of funeral and related services and is listed on the Australian Securities Exchange. CGL is a provider of cord blood banking services with operations in Singapore, Hong Kong, India, Indonesia and the Philippines, and is listed on the Singapore Exchange. CGL is also a controlling shareholder of a Malaysia-based cord blood banking operator. As of March 31, 2016 and 2017, the Group’s equity interest in LFC and CGL was 11.4% and 9.8%, respectively. During the year ended March 31, 2017, the Group made an investment in industry specific fund for US$10,000 (RMB66,154). Such fund investments are classified as available-for-sale equity securities since the Group has no immediate intention to sell them and they have readily determinable fair value. Dividends received from CGL during the years ended March 31, 2015, 2016 and 2017 of RMB2,344, RMB17,007 and nil, respectively, were recorded in dividend income in the consolidated statements of comprehensive income. During the year ended March 31, 2016 and 2017, the Group recorded impairment loss on available-for-sale equity securities of RMB8,361 and RMB2,533 (US$368), respectively, which were related to the Group’s investment in LFC. Having considered the extent of the decline in the fair value of the ordinary shares of LFC, the length of time to which the market value of the shares had been below cost, and the financial condition and near-term prospects of LFC, management concluded that the decline in value on the investment in LFC was other-than-temporary. As a result, impairment loss of RMB8,361 and RMB2,533 (US$368) was recognized in earnings, which was transferred from other comprehensive income, during the years ended March 31, 2016 and 2017 respectively. As of March 31, 2016, the cost basis of the available-for-sale equity securities was RMB36,976, total unrealized holding losses of LFC was RMB1,276 and total unrealized holding gains of CGL was RMB130,794. The aggregate fair value was RMB162,734 as of March 31, 2016. As of March 31, 2017, the cost basis of the available-for-sale equity securities was RMB100,597 (US$14,615), total unrealized holding losses of LFC was RMB185 (US$27), total unrealized holding gains of CGL was RMB92,025 (US$13,370) and total unrealized holding losses of other investment was RMB72 (US$10). The aggregate fair value was RMB200,790 (US$29,171) as of March 31, 2017. |
Other investment
Other investment | 12 Months Ended |
Mar. 31, 2017 | |
Other investment | |
Other investment | 10 Other investment March 31, 2016 2017 2017 RMB RMB US$ Unlisted equity securities, at cost As of March 31, 2016 and 2017, the Group owned 24% equity interest of Shandong Province Qilu Stem Cells Engineering Co., Ltd. (“Qilu Stem Cells”), which operates a cord blood bank in the Shandong province, the PRC. Since the Group does not have any representation in the board of directors and does not have significant influence over the financial and operating decisions of Qilu Stem Cells, the investment is stated at cost as the equity interests do not have a readily determinable fair value. The Group performed an impairment assessment based on Qilu Stem Cells’s operational performance, local demographic trend and the economic environment of the Shandong province and no impairment indicator was identified for the years ended March 31, 2016 and 2017, respectively. Dividends declared and paid by Qilu Stem Cells during the years ended March 31, 2015, 2016 and 2017 of nil, RMB31,800 and nil were recognized in dividend income in the consolidated statements of comprehensive income. |
Bank loan
Bank loan | 12 Months Ended |
Mar. 31, 2017 | |
Bank loan | |
Bank loan | 11 Bank loan On August 25, 2014, the Group borrowed RMB60,000 from Hangzhou Bank for one year. The loan bore a monthly fixed interest rate at 0.6%. The Group repaid the bank loan in full on August 11, 2015. On October 9, 2015, the Group borrowed RMB60,000 from Hangzhou Bank for one year. The loan bore a monthly fixed interest rate at 0.46%. The Group repaid the bank loan in full on September 13, 2016. The loan was secured by the Group’s certain buildings (Note 6). |
Accrued expenses and other paya
Accrued expenses and other payables | 12 Months Ended |
Mar. 31, 2017 | |
Accrued expenses and other payables | |
Accrued expenses and other payables | 12 Accrued expenses and other payables Accrued expenses and other payables consist of the following: March 31, Note 2016 2017 2017 RMB RMB US$ Insurance premium received on behalf of insurance company (i) Other tax payables Accrued salaries, bonus and welfare expenses Accrued consultancy and professional fees Payable for property, plant and equipment Other payables (ii) Total accrued expenses and other payables Notes: (i) The Group has an agreement with an insurance company under which the Group collects insurance premiums on behalf of the insurance company from customers who store umbilical cord blood in the Group’s cord blood bank and are enrolled in the insurance scheme of the insurance company. Thus, the amount of gross storage fees includes insurance premiums collected on behalf of the insurance company. The amount attributable to the insurance premiums is included in current and non-current (collected and payable over one year) other payables and is not recognized as revenue. The Group has no performance obligation to the customer with respect to the insurance policy. (ii) Other payables mainly include fee refundable to customers whose cord blood unit does not qualify for subsequent storage and other procurement payables. |
Deferred revenue
Deferred revenue | 12 Months Ended |
Mar. 31, 2017 | |
Deferred revenue | |
Deferred revenue | 13 Deferred revenue (a) Deferred revenue consists of the following: March 31, 2016 2017 2017 RMB RMB US$ Payments by customers prior to completion of cord blood processing services Unearned storage fees Total current and non-current deferred revenue Representing: Current portion Non-current portion Total current and non-current deferred revenue (b) An analysis of the unearned storage fees is as follows: Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Balance at beginning of year Deferred revenue arising from new customers Credited to income ) ) ) ) Balance at end of year |
Convertible notes, net
Convertible notes, net | 12 Months Ended |
Mar. 31, 2017 | |
Convertible notes, net | |
Convertible notes, net | 14 Convertible notes, net On April 27, 2012, the Company completed the sale of US$65,000 in aggregate principal amount of 7% coupon interest rate senior unsecured convertible notes to Brilliant China Healthcare Investment Limited (formerly known as KKR China Healthcare Investment Limited) (“BCHIL”) (the “KKR Notes”). The KKR Notes are convertible into the Company’s ordinary shares at a conversion price of US$2.838 per share. The Company received gross proceeds of US$65,000 and incurred debt issuance costs of RMB14,260 from the issuance of the KKR Notes. The KKR Notes are senior unsecured obligations, maturing on April 27, 2017 and are not redeemable prior to their maturity at the Company’s option. The KKR Notes are convertible at any time in whole or in part, into the Company’s ordinary shares at the conversion price, subject to customary anti-dilution adjustments for significant corporate events. On the maturity date, the Company is obligated to pay a redemption amount on the unconverted portion of the KKR Notes that is calculated to provide a 12% Internal Rate of Return (“IRR”). On October 3, 2012, the Company completed the sale of aggregate US$50,000 senior unsecured convertible notes to Golden Meditech Holdings Limited (“GMHL”), which is a major shareholder of the Company (the “GM Notes”). The GM Notes carry a 7% coupon interest rate and are convertible into the Company’s ordinary shares at a conversion price of US$2.838 per share. The Company received gross proceeds of US$50,000 and incurred debt issuance costs of RMB4,258 from the issuance of the GM Notes. The GM Notes are senior unsecured obligations, maturing on October 3, 2017 and are not redeemable prior to their maturity at the Company’s option. The GM Notes are convertible at any time in whole or part, into the Company’s ordinary shares at the conversion price, subject to customary anti-dilution adjustments for significant corporate events. On the maturity date, the Company is obligated to pay a redemption amount on the unconverted portion of the GM Notes that is calculated to provide a 12% IRR. In November 2014, GMHL completed the sale of the GM Notes of US$50,000 in aggregate principal amount to CGL and Magnum Opus International Holdings Limited (“Magnum”), a private vehicle that is controlled by the Company’s chairman, for a total consideration of US$88,090. As a result, CGL and Magnum became the holders of the GM Notes and each of them holds US$25,000 of the GM Notes. All terms and conditions of the GM Notes remain the same after the transfer from GMHL to CGL and Magnum, except for the change of holder name on the convertible notes and the denomination of the fair value of the convertible notes from US$50,000 to US$25,000. In May 2015, GMHL entered into a purchase agreement with CGL and Magnum to acquire the GM Notes at a consideration of US$61,677 and US$61,896 respectively. The acquisitions of the GM Notes from CGL and Magnum were completed in November and December 2015 respectively and the convertible notes were subsequently transferred to Golden Meditech Stem Cells (BVI) Company Limited (“GMSC”), a wholly owned subsidiary of GMHL. In August 2015, Magnum Opus 2 International Holdings Limited (“MO2”), an entity wholly owned by the Company’s chairman, acquired from BCHIL the convertible notes through the acquisition of all the issued and outstanding shares of Excellent China Healthcare Investment Limited (“ECHIL”), which is the holder of the convertible notes and a wholly owned subsidiary of BCHIL. In January 2016, GMHL acquired from ECHIL the convertible notes and subsequently transferred the convertible notes to its wholly owned subsidiary, GMSC. The carrying amounts of the KKR Notes and GM Notes (collectively the “Notes”), net as of March 31, 2016 and 2017 are summarized in the following table: March 31, 2016 2017 2017 RMB RMB US$ Principal amount of the KKR Notes Principal amount of the GM Notes Cumulative interest payables Less: Unamortized debt issuance costs ) ) ) Convertible notes, net Representing: Current portion — Non-current portion — — Convertible notes, net Holders of the Notes have the right to require the Company to redeem all or any portion of the Notes upon occurrence of events of default. Such events of default under the Notes include suspension from trading or failure of the Company’s ordinary shares to be listed over certain periods (subject to certain exceptions), failure to deliver ordinary shares upon conversion, or failure to pay principal or interest to the holder within certain periods when due and payable (including, without limitation, the Company’s failure to pay any redemption payments), bankruptcy, materially breaches of any covenants or terms in the Notes, the incurrence of any indebtedness of the Group and any final judgment or judgment against the Group exceeding certain amount, and any other event or events that could be expected to have material adverse effects on the Group. From and after the thirtieth day following the occurrence, and during the continuance, of an event of default under the Notes, the interest rate shall be increased to twenty-two and one-half percent (22.5%) per annum. The Notes are entitled to a special redemption payment in the event the Group breaches certain covenants. The Notes contain customary ongoing covenants, including affirmative covenants and negative covenants. Covenants are set out in the Notes, including but not limited to compliance with Securities and Exchange Commission filings and all applicable laws and rules; maintaining Form F-3 eligibility and maintaining and keeping all the current held cord blood banking licenses effective; the Company shall not, without the prior written consent of the holders of the Notes, change its principal business; dissolve, liquidate, reorganize or restructure; merge with any other entity; commence any case, proceeding or other action under bankruptcy, insolvency or similar law; acquire or dispose of assets other than in the ordinary course of business. Any amendment or waiver thereof requires the affirmative consent of a majority of the holder of all outstanding Notes. Additionally, additional payments on the Notes shall be made in the event the Group pays any excess cash dividend in any financial year (see Note 19). Such term provides the holders of the Notes with the ability to participate in any excess cash dividend. The Company has determined that the conversion feature embedded in the Notes should not be bifurcated and accounted for as a derivative pursuant to ASC 815, Derivatives and Hedging , since the embedded conversion feature is indexed to the Company’s own stock and would have been classified in shareholders’ equity if it were a free-standing derivative instrument. The Company has determined that the embedded put options that can accelerate the repayment of the Notes and contingent interest feature are clearly and closely related to the debt host contract and are not separately accounted for as a derivative pursuant to the ASC 815. Further, since the conversion price of the Notes exceeded the market price of the Company’s ordinary shares on the date of commitment, there was no beneficial conversion feature. The Company accrued interest on the Notes based on the guaranteed 12% IRR per annum. The difference between the accrued interest rate of 12% and the coupon rate of 7% of the Notes is recorded in convertible notes in the consolidated balance sheets. Debt issuance costs in connection with the issuance of convertible notes are amortized from the date the Notes were issued to the earliest date the holders of the Notes can demand payment, which is five years. Interest relating to the Notes was recognized as follows: Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ KKR Notes interest incurred GM Notes interest incurred Amortization of debt issuance costs Total interest expense |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Mar. 31, 2017 | |
Shareholders' equity | |
Shareholders' equity | 15 Shareholders’ equity (a) Share capital As of March 31, 2015, 2016 and 2017, the Company had 73,003,248 shares outstanding and 73,140,147 shares issued. (b) Statutory reserves According to PRC rules and regulations and their Articles of Association, Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou are required to transfer 10% of net income, as determined in accordance with the relevant financial regulations established by the Ministry of Finance of the PRC, to a statutory surplus reserve until the reserve balance reaches 50% of their respective registered capital. The transfer to this reserve must be made before distribution of dividends to equity holders can be made. The statutory surplus reserve is non-distributable but can be used to make good previous years’ losses, if any, and may be converted into issued capital in proportion to the respective equity holding of the equity holders, provided that the balance of the reserve after such conversion is not less than 25% of the registered capital. Aggregate transfers of RMB8,471, RMB16,443 and RMB1,964 (US$285) have been made to the statutory surplus reserves by Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou for the years ended March 31, 2015, 2016 and 2017, respectively. Accumulated statutory surplus reserve as of March 31, 2016 and 2017 amounted to RMB125,851 and RMB127,815 (US$18,569), respectively. (c) Share repurchase program During the year ended March 31, 2013, the Company repurchased 7,450,914 ordinary shares at a total cost of RMB131,302 of which 7,314,015 shares were subsequently sold to CGL (Note 1(b)). As of March 31, 2016 and 2017, the remaining 136,899 repurchased ordinary shares had not been cancelled and therefore were presented as treasury stock in the consolidated balance sheets. On July 28, 2016 and July 25, 2017, the Board of Directors approved a new share repurchase program in the aggregate amount of $20,000 for 12 months until July 28, 2017 and July 25, 2018, respectively. During the years ended March 31, 2016 and 2017, the Company did not repurchase any of its shares under the new share repurchase programs. |
Revenues
Revenues | 12 Months Ended |
Mar. 31, 2017 | |
Revenues | |
Revenues | 16 Revenues The Group’s revenues are primarily derived from the provision of umbilical cord blood processing and storage services. Since the Group operates and manages its business solely in the PRC and services are predominately provided to customers located in the PRC, no geographical segment information is provided. The Group’s revenues by category are as follows: Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Cord blood processing fees Cord blood storage fees Fees derived from the provision of donated cord blood for transplantation and research and others Total revenues |
Income tax
Income tax | 12 Months Ended |
Mar. 31, 2017 | |
Income tax | |
Income tax | 17 Income tax Cayman Islands and British Virgin Islands Under the current laws of the Cayman Islands and the British Virgin Islands, the Company and its subsidiaries that are incorporated in the Cayman Islands and the British Virgin Islands are not subject to tax on income or capital gains. In addition, upon payments of dividends by these companies, no Cayman Islands or British Virgin Islands withholding tax is imposed. Hong Kong The Company’s subsidiaries that are incorporated or operate in Hong Kong are subject to Hong Kong Profits Tax on income arising in or derived from Hong Kong. No provision was made for Hong Kong Profits Tax as the subsidiaries did not earn income subject to Hong Kong Profits Tax for the years ended March 31, 2015, 2016 and 2017. The payments of dividends by Hong Kong tax residents are not subject to any Hong Kong withholding tax. The PRC The Company’s PRC subsidiaries are subject to PRC statutory income tax rate of 25% unless otherwise specified. In January 2015, Beijing Jiachenhong received approval from the tax authority on the renewal of its High and New Technology Enterprises (“HNTE”) status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2014 to December 31, 2016. Beijing Jiachenhong is in the process of reapplication for its HNTE status which will enable it to the preferential income tax rate of 15% from January 1, 2017 to December 31, 2019. In April 2014, Guangzhou Nuoya received approval from the tax authority on the renewal of its HNTE status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2013 to December 31, 2015. In March 2017, Guangzhou Nuoya received approval from the tax authority on the renewal of its HNTE status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2016 to December 31, 2018. In January 2016, Zhejiang Lukou received approval from the tax authority that it qualified as a HNTE which entitled it to the preferential income tax rate of 15% effective retrospectively from January 1, 2015 to December 31, 2017. The Enterprise Income Tax Law and its implementation rules also impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends receivable by non-PRC-resident enterprises from PRC-resident enterprises in respect of earnings accumulated beginning on January 1, 2008. As of March 31, 2016, the Company has provided aggregated amount of RMB14,300 for withholding income tax on a portion of the undistributed earnings of its PRC subsidiaries according to management’s reinvestment plan. No income taxes were provided for the remaining undistributed earnings which are intended to be reinvested indefinitely in the PRC. During the year ended March 31, 2017, a reversal of withholding income tax of RMB14,300 (US$2,078) was made due to the change in management’s future reinvestment plan as all undistributed earnings of the Company’s PRC subsidiaries are intended to be reinvested indefinitely in the PRC in the foreseeable future. As of March 31, 2017, such undistributed earnings that may be subject to the withholding tax amounted to RMB1,609,119 (US$233,774) and the related unrecognized deferred tax liability was RMB160,912 (US$23,377). Income before income tax expense arose from the following tax jurisdictions: Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ The PRC Non-PRC - Hong Kong ) ) ) - British Virgin Islands ) ) - Cayman Islands ) ) ) ) Income before income tax expense (a) Income taxes Income tax expense represents PRC income tax expense as follows: Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Current tax expense Deferred tax expense ) ) ) ) Total income tax expense (b) Reconciliation of expected income tax to actual income tax expense The actual income tax expense reported in the consolidated statements of comprehensive income differs from the amount computed by applying the statutory PRC income tax rate of 25% due to the following: Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Income before income tax expense Computed “expected” tax expense Non-PRC entities not subject to income tax - Hong Kong ) - British Virgin Islands ) ) - Cayman Islands PRC dividend withholding tax ) ) Non-taxable income — ) — — Preferential tax rates ) ) ) ) Others Actual income tax expense (c) Deferred taxes The tax effects of temporary differences that give rise to deferred tax assets/(liabilities) are presented below: March 31, 2016 2017 2017 RMB RMB US$ Deferred tax assets: Accounts receivable Non-current accounts receivable Inventories Others Net deferred tax assets Deferred tax liabilities: Deferred revenue ) ) ) Property, plant and equipment ) ) ) PRC dividend withholding tax ) — — Intangible assets ) ) ) Deferred tax liabilities ) ) ) Net deferred tax (liabilities)/assets ) Classification on consolidated balance sheets: Non-current deferred tax assets Non-current deferred tax liabilities ) ) ) Net deferred tax (liabilities)/assets ) For the years ended March 31, 2015, 2016 and 2017, the Group did not have any unrecognized tax benefits and thus no interest and penalties related to unrecognized tax benefits were recorded. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB100 (US$15). In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The income tax returns of the Group’s PRC subsidiaries for the calendar years from 2012 to 2016 are open to examination by the PRC state and local tax authorities. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Mar. 31, 2017 | |
Share-based compensation | |
Share-based compensation | 18 Share-based compensation At the annual general meeting of the Company on February 18, 2011 (the “Adoption Date”), the shareholders of the Company approved a restricted share unit (the “RSU Scheme”) for the purpose of attracting and retaining skilled and experienced personnel. Certain administrative provisions of the RSU scheme were subsequently amended by the Board of Directors of the Company in August 2014. The RSU Scheme will be valid and effective for a period of ten years commencing from the Adoption Date of the RSU Scheme. On December 15, 2014 (the “Grant Date”), the Company granted a total of 7,300,000 restricted share units (“RSUs”) to certain executives, directors and key employees (the “RSU Grantees”) under the RSU Scheme. The RSUs will be vested in whole at any time during its valid period, subject to the fulfilment of certain operational and/or financial performance targets as set by relevant committee of the Company’s Board of Directors. Upon vesting, each RSU shall be entitled to the transfer or issue of one ordinary share in the share capital of the Company. The RSUs are exercisable only if the RSU Grantees remained employed by the Company. The fair value of each RSU is US$4.15, which was based on the market price of the ordinary shares of the Company at Grant Date. During the years ended March 31, 2015, 2016 and 2017, the RSUs granted had not been vested and there were 7,300,000 RSUs outstanding and nil exercisable as of March 31, 2016 and 2017 with a weighted average remaining contract life of 2 years and 1 year, respectively. Management assessed that the satisfaction of the operational and/or financial performance targets of the RSUs granted are probable within its valid period. Share-based compensation expense recognized for non-vested RSUs is allocated to the following expense items: Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Direct costs Sales and marketing General and administrative Total share-based compensation expense |
Earnings per share
Earnings per share | 12 Months Ended |
Mar. 31, 2017 | |
Earnings per share | |
Earnings per share | 19 Earnings per share The following table sets forth the computation of basic and diluted earnings per share for the years ended March 31, 2015, 2016 and 2017: Year ended March 31, Note 2015 2016 2017 2017 RMB RMB RMB US$ Numerator: Net income attributable to the Company’s shareholders Earnings allocated to participating convertible notes (i) ) — ) ) Net income for basic and diluted net income per share Denominator: Weighted average ordinary shares outstanding for basic and diluted net income per share Earnings per share - Basic - Diluted (ii) Notes: (i) The outstanding convertible notes provide the holders with the ability to participate in any excess cash dividend. Excess cash dividend means any cash dividend to holders of shares that, together with all other cash dividends previously paid to holders of shares in the same financial year, exceeds, on a per share basis, an amount equal to the interest that has accrued and shall accrue at 7% coupon interest rate in such financial year divided by the number of shares into which the notes are convertible at the conversion price then in effect on the relevant record date. Therefore, net income attributable to the Company is reduced by such allocated earnings to participating convertible notes for the years ended March 31, 2015 and 2017 in both basic and diluted net income per share computation. For the year ended March 31, 2016, as there was no excess cash dividend, no earnings were allocated to participating convertible notes. (ii) During the years ended March 31, 2015, 2016 and 2017, the Company had potentially dilutive ordinary shares of 40,521,494 representing shares issuable upon conversion of the outstanding convertible notes (see Note 14). Such potentially dilutive ordinary shares were excluded from diluted earnings per share computation because their effects would have been anti-dilutive. |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 31, 2017 | |
Related party transactions | |
Related party transactions | 20 Related party transactions For the years presented, the principal related party transactions and amounts due to related parties are summarized as follows: Year ended March 31, Note 2015 2016 2017 2017 RMB RMB RMB US$ Rental of properties (i) — — Raw material purchase (ii) Consultancy expenses (iii) Interest expenses 14 License fee (iv) — — Consultancy income (v) — — Data access income (vi) — — March 31, Note 2016 2017 2017 RMB RMB US$ Current liability: Amounts due to related parties (i), (ii) & 14 Notes: (i) During the years ended March 31, 2015 and 2016, Beijing Jingjing Medical Equipment Co., Ltd. (“Beijing Jingjing”), a subsidiary of GMHL, leased a property to the Group under an operating lease. The monthly rental was RMB120 and does not include contingent rentals. The lease was terminated on April 1, 2016 and therefore, no rental expense was incurred during the year ended March 31, 2017. (ii) During the years ended March 31, 2015, 2016 and 2017, the Group purchased raw materials from China Bright Group Co. Limited, a subsidiary of GMHL, for an amount of RMB15,683, RMB37,556 and RMB36,405 (US$5,289), respectively. (iii) During the years ended March 31, 2015, 2016 and 2017, consultancy services were provided by Golden Meditech (S) Pte Ltd., a subsidiary of GMHL, to the Group for an amount of RMB1,984, RMB4,078 and RMB4,337 (US$630), respectively. (iv) During the year ended March 31, 2015 and the period from April 1, 2015 to October 30, 2015, CGL charged the Group a license fee for an amount of RMB321 and RMB317, respectively. Since October 30, 2015, CGL was no longer a related party of the Group. (v) During the year ended March 31, 2017, the Company performed a consultation service related to the usage of cord blood processing devices and consumables and recorded RMB16,786 (US$2,439) as a reduction of direct costs. GMHL is a distributor of such devices and consumables in the PRC and the Company is a customer of GMHL. Since the consideration of the consultation service cannot be sufficiently separated from the Company’s purchases of such devices and consumables and the fair value of the benefit provided for cannot be reasonably estimated either, the consideration received from GMHL was recorded as a reduction of direct costs as associated cord blood processing devices and consumables which the Company purchased from GMHL were consumed and included in direct costs. (vi) During the year ended March 31, 2017, the Company entered into a collaboration agreement with GMHL. Utilizing the Company’s existing donated cord blood samples resources, the Company provided GMHL with exclusive access to certain data derived from a small portion of donated cord blood samples and has no further obligation to GMHL, in return for a fee of RMB26,316 (US$3,823). |
Employee benefits
Employee benefits | 12 Months Ended |
Mar. 31, 2017 | |
Employee benefits | |
Employee benefits | 21 Employee benefits Pursuant to the relevant PRC regulations, Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou are required to make various defined contributions organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at a rate of approximately 40% on a standard salary base as determined by the local Social Security Bureau. The amounts of the defined contributions of RMB17,018, RMB20,581 and RMB24,495 (US$3,559) for the years ended March 31, 2015, 2016 and 2017 respectively, were charged to expense in the consolidated statements of comprehensive income. For the years ended March 31, 2015, 2016 and 2017, 51%, 55% and 55% of costs of employee benefits were recorded in sales and marketing expenses, respectively, with the remaining portion of the contributions recorded in general and administrative expenses, direct costs and research and development expenses of each year. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Mar. 31, 2017 | |
Fair value measurements | |
Fair value measurements | 22 Fair value measurements The following methods and assumptions were used to estimate the fair value of each class of financial instruments: Available-for-sale equity securities - based on quoted market prices on the last trading value as of March 31, 2017. Such investments are classified as Level 1 in the hierarchy. Short-term financial instruments (including cash and cash equivalents, accounts receivable, prepaid expenses and other receivables, accounts payable, accrued expenses and other payables, amounts due to related parties and short-term bank loan) - cost approximates their respective fair values due to their short-term nature. Convertible notes - the estimated fair value was US$256,166 and US$278,254 (RMB1,915,278) as of March 31, 2016 and 2017 based on the level 3 valuation technique as compared to a carrying amount (before deducting unamortized debt issuance costs) of RMB910,659 and RMB1,031,849 (US$149,908) as of March 31, 2016 and 2017. The estimated fair value of the convertible notes is based on a mark-to-model valuation model. Due to the fact that there is no active market for this instrument, the fair value of the convertible notes was estimated using a discounted cash flow analysis based on current borrowing rates for instruments with similar terms. In addition, the Company utilized other sources of information for the relevant market parameters in order to develop its fair value. |
Business and credit concentrati
Business and credit concentrations | 12 Months Ended |
Mar. 31, 2017 | |
Business and credit concentrations | |
Business and credit concentrations | 23 Business and credit concentrations All of the Group’s customers are located in the PRC. Revenues from and gross accounts receivable due from customers are individually immaterial. The Group derives a substantial portion of net revenues from the entities in the Beijing municipality, Guangdong and Zhejiang provinces. Revenues derived from the subsidiary in the Beijing municipality accounted for 36.1%, 31.6% and 28.8% of net revenues for the years end March 31 2015, 2016 and 2017, respectively. Revenues derived from the subsidiary in the Guangdong province accounted for 55.6%, 58.8% and 58.7% of net revenues for the years end March 31 2015, 2016 and 2017, respectively. Revenues derived from the subsidiary in the Zhejiang province accounted for 8.3%, 9.6% and 12.5% of net revenues for the years end March 31 2015, 2016 and 2017, respectively. As a result of this geographic concentration, the results of operations are significantly affected by economic conditions in the Beijing municipality, Guangdong and Zhejiang provinces. Furthermore, any change in number of newborns in the Beijing municipality, Guangdong and Zhejiang provinces could significantly impact our operations. Deterioration in economic conditions in these markets could decrease the demand for our business, which in turn could negatively impact our operations and business prospects. The Group purchases raw materials from a few major suppliers. Management believes that other suppliers could provide similar raw materials on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would adversely affect the Company’s business, financial position and results of operations. The following are purchases from suppliers that individually comprise 10% or more of gross purchases in the respective years: Year ended March 31, Suppliers 2015 2016 2017 RMB % RMB % RMB US$ % China Bright Group Co. Limited Hangzhou Baitong Biological Technology Co., Ltd. — — — — — Total As of March 31, 2016 and 2017, there was no individual accounts payable due to major suppliers that exceeded 10% of outstanding accounts payable balance. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and contingencies | |
Commitments and contingencies | 24 Commitments and contingencies (a) Operating lease commitments For the years ended March 31, 2015, 2016 and 2017, total rental expenses for operating leases were RMB4,536, RMB4,898 and RMB2,859 (US$415), respectively. The total future minimum payments under non-cancellable operating leases of rental arrangements as of March 31, 2017 are as follows: March 31, 2017 RMB US$ Fiscal years ending March 31, 2018 2019 2020 — — 2021 — — 2022 and thereafter — — Total payments (b) Contractual commitments The Group entered into an agreement with an institution for the research and development of medicines for treatments which make use of cord blood stem cells. Commitments as of March 31, 2016 and 2017 under this agreement amounted to RMB2,000 (US$291), respectively. In June 2006, the Group entered into a cooperation agreement with Peking University People’s Hospital (“PUPH”). Pursuant to the agreement, PUPH provides technical consultancy services to the Group in relation to the operation of a cord blood bank. The annual service fee was RMB2,000 and was renewed to RMB2,600 (US$377) effective from October 2013. The renewed agreement has a term of twenty years commencing in October 2013. In November 2009, Guangzhou Nuoya entered into a cooperation agreement with Guangdong Women and Children’s Hospital and Health Institute (“GWCH”). Pursuant to the agreement, GWCH provides technical consultancy services to the Group. The annual service fee was RMB2,000 and was renewed to RMB3,200 (US$465) effective from October 2013. As of March 31, 2017, the total future minimum payments under the cooperation agreements are as follows: March 31, 2017 RMB US$ Fiscal years ending March 31, 2018 2019 2020 2021 2022 2023 and thereafter Total payments |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 31, 2017 | |
Subsequent events | |
Subsequent events | 25 Subsequent events In April 2017, GMSC exercised the conversion of the Notes of US$115,000 at a conversion price of US$2.838 per share, which resulted in the issuance of 40,521,494 ordinary shares of the Company. Subsequent to such conversion, the Company has no outstanding convertible notes. |
Summary of significant accoun33
Summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Summary of significant accounting policies | |
Principles of consolidation | (a) Principles of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its majority-owned subsidiaries and a variable interest entity in which the Company is the primary beneficiary. For consolidated subsidiaries where the Company’s ownership is less than 100%, the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the Company, are presented as non-controlling interests. All significant intercompany balances and transactions have been eliminated on consolidation. |
Use of estimates | (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the estimate of selling price for individual deliverables in multiple-element revenue arrangements, the estimated number of successful match units over the estimated weighted average remaining useful life of donated cord blood units, the useful lives of property, plant and equipment and intangible assets, the recoverability of property, plant and equipment and intangible assets, the collectibility of accounts receivables, the realizability of inventories and deferred tax assets and the fair values of share-based compensation. |
Foreign currency transactions and translation | (c) Foreign currency transactions and translation The reporting currency of the Company is Renminbi (“RMB”). The functional currency of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou is RMB and the functional currency of the Company is United States dollars (“US$”). The functional currencies of subsidiaries of the Company outside the PRC are either US$ or Hong Kong dollars. Transactions of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou denominated in currencies other than RMB are translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”) prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates quoted by the PBOC at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains/(losses) in the consolidated statements of comprehensive income. Transactions of the Company and subsidiaries outside the PRC denominated in currencies other than their functional currencies are translated into their functional currencies at the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into their functional currencies using the applicable exchange rates at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains/(losses) in the consolidated statements of comprehensive income. Assets and liabilities of the Company and subsidiaries outside the PRC are translated into RMB using the exchange rate at the balance sheet date. Revenues and expenses are translated at the average exchange rates prevailing during the year. The adjustments resulting from translation of financial statements of the Company and subsidiaries outside the PRC are recorded as a separate component of accumulated other comprehensive income within shareholders’ equity. RMB is not a fully convertible currency. All foreign exchange transactions involving RMB must take place either through the PBOC or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. For the convenience of the readers, certain amounts as of and for the year ended March 31, 2017 included in the accompanying consolidated financial statements have been translated into U.S. dollars at the rate of US$1.00 = RMB6.8832, being the spot exchange rate of U.S. dollars in effect on March 31, 2017 for cable transfers in RMB per U.S. dollar as certified for customs purposes by the Federal Reserve, the central bank of the United States of America. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at that rate or at any other rate on March 31, 2017 or at any other date. The U.S. dollars convenience translation is not required under U.S. GAAP and all U.S. dollars convenience translation amounts in the accompanying consolidated financial statements are unaudited. |
Cash and cash equivalents | (d) Cash and cash equivalents Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Cash and cash equivalents of the Group are mainly maintained in the PRC and are denominated in several currencies. As of March 31, 2016 and 2017, cash and cash equivalents maintained in the PRC amounted to RMB2,820,472 and RMB3,432,022 (US$498,608), respectively. The Group’s cash and cash equivalents denominated in U.S. dollars, Australian dollars, Renminbi, Hong Kong dollars and Singapore dollars are as follows: March 31, 2016 2017 Original currency RMB Original currency RMB U.S. dollars Australian dollars Renminbi Hong Kong dollars Singapore dollars Cash and cash equivalents held at financial institutions located in the PRC and Hong Kong are insured up to certain amount. Management believes that these major financial institutions have high credit ratings. |
Investment securities | (e) Investment securities Management determines the appropriate classification of its investment securities at the time of purchase and reevaluates such designations at each reporting date. Trading securities are recorded at fair value. Realized and unrealized holding gains and losses, net of the related tax effect, on trading securities are included in earnings. Available-for-sale equity securities are recorded at fair value. Unrealized holding gains and losses, net of the related tax effect, on available-for-sale equity securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale equity securities are determined on a specific-identification basis. Where the fair value of an investment in equity securities is not readily determinable, the investment is stated at cost. A decline in the market value of available-for-sale securities that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. In determining whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. Dividend income is recognized in other income when earned. |
Accounts receivable | (f) Accounts receivable Accounts receivable represent amounts due from subscribers for cord blood processing and storage services, which are recognized in accordance with the Company’s revenue recognition policies (Note 2(k)). Installments receivable from subscribers which are due for repayment in over one year under the deferred payment option are classified as non-current accounts receivable. Accounts receivable are stated net of allowance for doubtful accounts. The allowance for doubtful accounts is the Group’s best estimate of losses in the Group’s accounts receivable, which is determined based on historical write-off experience, customer specific facts and economic conditions. The Group reviews its allowances for doubtful accounts quarterly. Outstanding account balances are reviewed on a pooled basis by ageing of such balances. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group’s PRC subsidiaries are required to comply with local tax requirements on the write-offs of doubtful accounts, which allow for such write-offs only when the related account balances are aged over three years and sufficient evidence is available to prove the debtor’s inability to make payments. For financial reporting purposes, the Company’s PRC subsidiaries generally record write-offs of doubtful accounts at the same time the local tax requirements for the write-offs are met. As a result, there are generally time lags between the time when a provision for doubtful accounts is recorded and the time the doubtful accounts are written off against the related allowance. The Group does not have any off-balance-sheet credit exposure related to its customers. |
Inventories | (g) Inventories The Group collects, tests, freezes and stores donated umbilical cord blood for future transplantation or research purposes in return for a fee. Collection, testing and processing costs attributable to the processing of donated umbilical cord blood are capitalized as inventories, stated at the lower of cost or market on a weighted-average basis, and recognized as direct costs when revenue is recognized when the cord blood unit is delivered and the risk of loss is transferred to the recipient. Cost comprises direct materials, direct labor and an allocation of production overheads. Inventories that are not expected to be realized within 12 months from the balance sheet date are classified as non-current assets. Consumables and supplies are classified as current assets. |
Property, plant and equipment | (h) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation on property, plant and equipment is calculated based on the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the assets as follows: Buildings 37.5 - 50 years Leasehold improvements Shorter of the lease term or estimated useful lives of 10 years Machineries 5 - 10 years Motor vehicles 5 years Furniture, fixtures and office equipment 3 - 5 years No depreciation expense is provided in respect of construction-in-progress. Interest expense incurred related to the construction of property, plant and equipment is capitalized. The capitalization of interest expense as part of the cost of a qualifying asset commences when expenditures for the asset have been made, activities that are necessary to get the asset ready for its intended use are in progress and interest cost is being incurred. The capitalization period ends when the asset is substantially complete and ready for its intended use. Depreciation of property, plant and equipment attributable to the processing of donated umbilical cord blood for future transplantation is capitalized as part of inventories, and is expensed to direct costs when the cord blood unit is delivered and the risk of loss is transferred to the recipient. |
Intangible assets | (i) Intangible assets Intangible assets represent the operating rights to operate cord blood bank and are stated at the fair value on the date of acquisition less accumulated amortization. Where payment for an operating right is non-deductible for tax purpose, the simultaneous equations method is used to record the assigned value of the asset and the related deferred tax liability, such that the carrying amount of the asset upon initial recognition less deferred tax liability recognized equals the amount paid for the asset. Amortization expenses are recognized on a straight-line basis over the estimated useful life of the operating rights of 30 years. |
Impairment of long-lived assets | (j) Impairment of long-lived assets Long-lived assets, including property, plant and equipment and intangible assets with finite useful lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flows models, quoted market values and third-party independent appraisals, as considered necessary. No impairment of long-lived assets was recognized for the years ended March 31, 2015, 2016 and 2017. |
Revenue recognition | (k) Revenue recognition The Group receives fees for collecting, testing, freezing and storing of cord blood units. Once the cord blood units are collected, tested, screened and successfully meet all of the required attributes, the Group freezes the units and stores them in a cryogenic freezer. Under the cord blood processing and storage agreement (“Agreement”) signed with the customer, the Group charges separate processing fee and storage fees to the customer and such Agreement typically provides for a storage period of eighteen years with successive one-year renewal periods after eighteen years. The Agreement is a multiple-element arrangement, which includes (i) the processing of cord blood unit and (ii) the storage of cord blood unit. The Group accounts for the arrangement under the ASC 605-25, Revenue Recognition — Multiple-Element Arrangements. In accordance with ASC 605-25, revenue arrangements that include multiple elements are analyzed to determine whether the deliverables can be divided into separate units of accounting or treated as a single unit of accounting. The consideration received is allocated among the separate units of accounting based on their relative selling prices determined based on prices of these elements as sold on a stand-alone basis, and the applicable revenue recognition criteria are applied to each of the separate units. In an arrangement with multiple deliverables, the delivered product or service shall be considered a separate unit of accounting when the following criteria are met: (1) the delivered item or items have value to the customer on a standalone basis; and (2) if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item or items is considered probable and substantially in the control of the Group. Based on evaluation of the criteria, the Group has determined that the cord blood processing services and cord blood storage services are separate units. Pursuant to the Agreement, no penalty is charged to customers for early termination of the cord blood storage service. The Group considers all reasonably available information to allocate the overall arrangement fee to cord blood processing and cord blood storage services based on their relative selling prices. The Group recognizes processing fee revenue upon successful completion of processing services and when the cord blood unit meets all the required attributes for storage, and recognizes the storage fee revenues ratably over the annual storage period. During the years ended March 31, 2015, 2016 and 2017, the Group offered its customers three payment options: (i) Payment of the processing fee upon delivery of the cord blood unit to the Group’s premises for processing and the annual storage fee in advance at the beginning of each one-year renewal period; (ii) Payment of the processing fee upon delivery of the cord blood unit to the Group’s premises for processing and an upfront payment of storage fees for a period of eighteen years; and (iii) Payment of the processing fee by installment over multiple periods and the annual storage fee in advance at the beginning of each one-year renewal period or an upfront payment of storage fees for a period of eighteen years paid by four installments. Certain installment option includes an initial processing fee payment upon delivery of the cord blood unit to the Group’s premises for processing and an incremental annual payment for the consecutive periods, representing a surcharge to the total amount of processing fees payable under payment options (i) and (ii). Under payment option (iii), installments due for payment beyond one year are classified as non-current accounts receivable, and the revenue is recorded at the present value of the payments. The difference between the present value of the receivable and the nominal or principal value of the processing fee is recognized as interest income over the contractual repayment period using the effective interest rate method. The interest rate used to determine the present value of total amount receivable is the rate at which the subscribers can obtain financing of a similar nature from other sources at the date of the transaction. The recognition of storage revenue is ceased when the collectability of the storage fees from the customers is not reasonably assured due to delinquency of payment by the customers. During the years ended March 31, 2015, 2016 and 2017, the Group ceased recognizing storage revenue from subscribers who were delinquent for more than 24 months. Fees derived from the provision of donated cord blood for transplantation and research are recognized when the cord blood unit is delivered and the risk of loss is transferred to the recipient. The Group’s revenues are net of value-added tax collected on behalf of tax authorities at 6% on the invoiced amount in respect of the services rendered. |
Research and development costs | (l) Research and development costs Research and development costs are incurred for research activities conducted to enhance collection and storage technologies, and measures to improve the results in umbilical cord blood stem cells extraction and separation. They also include research expenses on the use of cord blood stem cells in different medical treatments. Research and development costs are expensed as incurred. |
Advertising costs | (m) Advertising costs Advertising costs are expensed as incurred and included in sales and marketing expenses in the consolidated statements of comprehensive income in the amount of RMB30,899, RMB35,477 and RMB32,331 (US$4,697) for the years ended March 31, 2015, 2016 and 2017, respectively. |
Employee benefits | (n) Employee benefits Contributions to employee benefits (which are defined contribution plans) are charged to the consolidated statements of comprehensive income when the related employee service is provided. The Group does not have any defined benefit plans. |
Debt issuance costs | (o) Debt issuance costs Costs incurred by the Company that are directly attributable to the issuance of the convertible notes are deferred and charged to the consolidated statements of comprehensive income using an effective interest rate method from the date the convertible notes were issued to the earliest date the holders of the convertible notes can demand payment, which is five years. |
Income taxes | (p) Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases, tax loss carry forwards and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period that includes the enactment date. The Group recognizes in the consolidated financial statements the impact of a tax position if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of comprehensive income. A deferred tax liability is not recognized for the excess of the Company’s financial statements carrying amount over the tax base of its investment in a foreign subsidiary, if the subsidiary has invested or will invest the undistributed earnings indefinitely. |
Commitments and contingencies | (q) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, including legal proceedings and claims that relate to a wide range of matters, including, among others, product liability. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Earnings per share | (r) Earnings per share Basic earnings per ordinary share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income attributable to ordinary shareholders is allocated between ordinary shares and participating securities based on contractual participating rights of security to share in undistributed earnings as if all of the earnings had been distributed. Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders, as adjusted to exclude any income or expenses related to dilutive ordinary equivalents shares by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period. Dilutive potential ordinary shares consist of the ordinary shares issuable upon the conversion of the convertible notes applying the if-converted method. Dilutive potential ordinary shares in the diluted earnings per share computation are excluded to the extent that their effect is anti-dilutive. |
Share-based compensation | (s) Share-based compensation The Group recognizes share-based payments as compensation cost and measures such cost based on the grant date fair value of the equity instrument issued. Compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. |
Segment reporting | (t) Segment reporting The Group has one operating segment, as defined by ASC 280, Segment Reporting, which is processing and storage of cord blood units. All of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. |
Fair value measurement | (u) Fair value measurement The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. See Note 22 to the consolidated financial statements. |
Recently issued accounting standards | (v) Recently issued accounting standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance was effective for annual reporting and interim periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective application, with early adoption not permitted. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which amends ASU 2014-09 and defers its effective date to fiscal years and interim reporting periods beginning after December 15, 2017. ASU 2015-14 permits earlier application only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently in the process of analyzing each of the Company’s revenue streams in accordance with the new revenue standard to determine the impact on the Company’s consolidated financial statements. The Company plans to continue the evaluation, analysis, and documentation of its adoption of ASU 2014-09 (including those subsequently issued updates that clarify its provisions) in 2017 as the Company works towards the implementation and finalizes its determination of the impact that the adoption will have on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), to simplify the presentation of deferred income taxes by eliminating the requirement to separate deferred tax assets and liabilities into current and non-current amounts. ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current and was adopted by the Company in the current fiscal year ended March 31, 2017. Upon the adoption of this ASU 2015-17, current deferred tax assets of RMB14,056 and current deferred tax liabilities of RMB14,300 as of March 31, 2016 were reclassified as non-current deferred tax assets and liabilities respectively. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires all equity investments to be measured at fair value, with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). ASU 2016-01 will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 specifies the accounting for leases. For operating leases, ASU 2016-02 requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. ASU 2016-02 also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. ASU 2016-02 is effective for publicly-traded companies for annual reporting periods, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which relates to accounting for employee share-based payments. ASU 2016-09 addresses several aspects of the accounting for share-based payment award transactions, including (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification in the statement of cash flows; and (d) accounting for forfeitures of share-based payments. ASU 2016-09 will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted ASU 2016-09 in the current fiscal year ended March 31, 2017 and there is no material impact on the consolidated financial statements upon adopting this standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows — Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. Early adoption is permitted, including adoption in an interim period. The standard should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. ASU 2017-01 should be applied prospectively on or after the effective date. The Company will evaluate the impact of adopting this standard prospectively upon any transactions of acquisitions or disposals of assets or businesses. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under existing standards, the market amount requires consideration of replacement cost, net realizable value (“NRV”), and NRV less an approximately normal profit margin. The new ASU replaces market with NRV, defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or NRV less an approximately normal profit margin when measuring inventory. The amendments are effective for the fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early application is permitted. The Company has assessed this ASU’s impacts on the Company’s consolidated results of operations and financial condition and there is no material impact upon adopting this standard. |
Summary of significant accoun34
Summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Summary of significant accounting policies | |
Schedule of cash and cash equivalents denominated in several currencies | March 31, 2016 2017 Original currency RMB Original currency RMB U.S. dollars Australian dollars Renminbi Hong Kong dollars Singapore dollars |
Schedule of estimated useful lives of property, plant and equipment | Buildings 37.5 - 50 years Leasehold improvements Shorter of the lease term or estimated useful lives of 10 years Machineries 5 - 10 years Motor vehicles 5 years Furniture, fixtures and office equipment 3 - 5 years |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounts receivable, net | |
Schedule of accounts receivable | March 31, 2016 2017 2017 RMB RMB US$ Accounts receivable Less: Allowance for doubtful accounts ) ) ) Total accounts receivable, net Representing: Current portion: - Processing fees - Storage fees - Others Non-current portion: - Processing fees Total accounts receivable, net |
Schedule of non-current gross accounts receivable due for payment | March 31, 2017 RMB US$ Fiscal years ending March 31, 2019 2020 2021 2022 2023 and thereafter |
Schedule of aging analysis of gross accounts receivable | March 31, 2016 2017 2017 RMB RMB US$ Not past due Within one year past due Between one to two years past due Over two years past due Total gross accounts receivable |
Schedule of allowance for doubtful accounts | Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Balance at beginning of year Charged to allowance for doubtful accounts Write-off charged against the allowance for the year ) ) ) ) Balance at end of year |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Inventories | |
Schedule of inventories | March 31, 2016 2017 2017 RMB RMB US$ Current portion: - Consumables and supplies Non-current portion: - Processing costs capitalized in donated umbilical cord blood Total current and non-current inventories |
Prepaid expenses and other re37
Prepaid expenses and other receivables (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Prepaid expenses and other receivables | |
Schedule of prepaid expenses and other receivables | March 31, 2016 2017 2017 RMB RMB US$ Prepaid expenses VAT tax receivables Other receivables Total prepaid expenses and other receivables |
Property, plant and equipment38
Property, plant and equipment, net (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, plant and equipment, net | |
Schedule of property, plant and equipment, net | March 31, 2016 2017 2017 RMB RMB US$ Buildings Leasehold improvements Machineries Motor vehicles Furniture, fixtures and equipment Construction-in-progress Less: Accumulated depreciation ) ) ) Total property, plant and equipment, net |
Schedule of depreciation expense of property, plant and equipment | Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Direct costs Research and development Sales and marketing General and administrative Total depreciation expense |
Non-current deposits (Tables)
Non-current deposits (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Non-current deposits | |
Schedule of non-current deposits | March 31, Note 2016 2017 2017 RMB RMB US$ Investment deposit (i) Deposit for purchase of machineries Total non-current deposits Note: (i) The Group previously entered into a Letter of Intent with a third party (the “Potential Seller”) for a potential acquisition of the equity interests in a company in the healthcare industry with a refundable earnest money deposit of US$33,660 (RMB232,824). Due to the change in circumstances, the parties entered into a subsequent agreement in May 2017 regarding the return of the earnest money deposit, with the Potential Seller providing a performance guarantee to the Company. |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Intangible assets, net | |
Schedule of components of intangible assets, net | March 31, 2016 2017 2017 RMB RMB US$ Cord blood bank operating rights Less: Accumulated depreciation ) ) ) Total intangible assets, net |
Schedule of estimated amortization expenses | March 31, 2017 RMB US$ Fiscal years ending March 31, 2018 2019 2020 2021 2022 2023 and thereafter Total amortization expenses |
Available-for-sale equity sec41
Available-for-sale equity securities (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Available-for-sale equity securities | |
Schedule of available-for-sale equity securities | March 31, 2016 2017 2017 RMB RMB US$ Listed equity securities Life Corporation Limited - listed on Australian Securities Exchange Cordlife Group Limited - listed on Singapore Exchange Listed fund investments — |
Other investment (Tables)
Other investment (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Other investment | |
Schedule of other investment | March 31, 2016 2017 2017 RMB RMB US$ Unlisted equity securities, at cost |
Accrued expenses and other pa43
Accrued expenses and other payables (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accrued expenses and other payables | |
Schedule of accrued expenses and other payables | March 31, Note 2016 2017 2017 RMB RMB US$ Insurance premium received on behalf of insurance company (i) Other tax payables Accrued salaries, bonus and welfare expenses Accrued consultancy and professional fees Payable for property, plant and equipment Other payables (ii) Total accrued expenses and other payables Notes: (i) The Group has an agreement with an insurance company under which the Group collects insurance premiums on behalf of the insurance company from customers who store umbilical cord blood in the Group’s cord blood bank and are enrolled in the insurance scheme of the insurance company. Thus, the amount of gross storage fees includes insurance premiums collected on behalf of the insurance company. The amount attributable to the insurance premiums is included in current and non-current (collected and payable over one year) other payables and is not recognized as revenue. The Group has no performance obligation to the customer with respect to the insurance policy. (ii) Other payables mainly include fee refundable to customers whose cord blood unit does not qualify for subsequent storage and other procurement payables. |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Deferred revenue | |
Schedule of deferred revenue | March 31, 2016 2017 2017 RMB RMB US$ Payments by customers prior to completion of cord blood processing services Unearned storage fees Total current and non-current deferred revenue Representing: Current portion Non-current portion Total current and non-current deferred revenue |
Unearned storage fees | |
Deferred revenue | |
Schedule of deferred revenue | Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Balance at beginning of year Deferred revenue arising from new customers Credited to income ) ) ) ) Balance at end of year |
Convertible notes, net (Tables)
Convertible notes, net (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Convertible notes, net | |
Schedule of the KKR and GM Notes, net | March 31, 2016 2017 2017 RMB RMB US$ Principal amount of the KKR Notes Principal amount of the GM Notes Cumulative interest payables Less: Unamortized debt issuance costs ) ) ) Convertible notes, net Representing: Current portion — Non-current portion — — Convertible notes, net |
Schedule of interest relating to the Notes | Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ KKR Notes interest incurred GM Notes interest incurred Amortization of debt issuance costs Total interest expense |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Revenues | |
Schedule of revenue by category | Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Cord blood processing fees Cord blood storage fees Fees derived from the provision of donated cord blood for transplantation and research and others Total revenues |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income tax | |
Schedule of income before income tax expense | Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ The PRC Non-PRC - Hong Kong ) ) ) - British Virgin Islands ) ) - Cayman Islands ) ) ) ) Income before income tax expense |
Schedule of income tax expense | Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Current tax expense Deferred tax expense ) ) ) ) Total income tax expense |
Schedule of the reconciliation of expected income tax to actual income tax expense | Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Income before income tax expense Computed “expected” tax expense Non-PRC entities not subject to income tax - Hong Kong ) - British Virgin Islands ) ) - Cayman Islands PRC dividend withholding tax ) ) Non-taxable income — ) — — Preferential tax rates ) ) ) ) Others Actual income tax expense |
Schedule of deferred tax assets/(liabilities) | March 31, 2016 2017 2017 RMB RMB US$ Deferred tax assets: Accounts receivable Non-current accounts receivable Inventories Others Net deferred tax assets Deferred tax liabilities: Deferred revenue ) ) ) Property, plant and equipment ) ) ) PRC dividend withholding tax ) — — Intangible assets ) ) ) Deferred tax liabilities ) ) ) Net deferred tax (liabilities)/assets ) Classification on consolidated balance sheets: Non-current deferred tax assets Non-current deferred tax liabilities ) ) ) Net deferred tax (liabilities)/assets ) |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Share-based compensation | |
Schedule of share-based compensation expense | Year ended March 31, 2015 2016 2017 2017 RMB RMB RMB US$ Direct costs Sales and marketing General and administrative Total share-based compensation expense |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Earnings per share | |
Schedule of basic and diluted earnings per share | Year ended March 31, Note 2015 2016 2017 2017 RMB RMB RMB US$ Numerator: Net income attributable to the Company’s shareholders Earnings allocated to participating convertible notes (i) ) — ) ) Net income for basic and diluted net income per share Denominator: Weighted average ordinary shares outstanding for basic and diluted net income per share Earnings per share - Basic - Diluted (ii) Notes: (i) The outstanding convertible notes provide the holders with the ability to participate in any excess cash dividend. Excess cash dividend means any cash dividend to holders of shares that, together with all other cash dividends previously paid to holders of shares in the same financial year, exceeds, on a per share basis, an amount equal to the interest that has accrued and shall accrue at 7% coupon interest rate in such financial year divided by the number of shares into which the notes are convertible at the conversion price then in effect on the relevant record date. Therefore, net income attributable to the Company is reduced by such allocated earnings to participating convertible notes for the years ended March 31, 2015 and 2017 in both basic and diluted net income per share computation. For the year ended March 31, 2016, as there was no excess cash dividend, no earnings were allocated to participating convertible notes. (ii) During the years ended March 31, 2015, 2016 and 2017, the Company had potentially dilutive ordinary shares of 40,521,494 representing shares issuable upon conversion of the outstanding convertible notes (see Note 14). Such potentially dilutive ordinary shares were excluded from diluted earnings per share computation because their effects would have been anti-dilutive. |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Related party transactions | |
Schedule of related party transactions | Year ended March 31, Note 2015 2016 2017 2017 RMB RMB RMB US$ Rental of properties (i) — — Raw material purchase (ii) Consultancy expenses (iii) Interest expenses 14 License fee (iv) — — Consultancy income (v) — — Data access income (vi) — — March 31, Note 2016 2017 2017 RMB RMB US$ Current liability: Amounts due to related parties (i), (ii) & 14 Notes: (i) During the years ended March 31, 2015 and 2016, Beijing Jingjing Medical Equipment Co., Ltd. (“Beijing Jingjing”), a subsidiary of GMHL, leased a property to the Group under an operating lease. The monthly rental was RMB120 and does not include contingent rentals. The lease was terminated on April 1, 2016 and therefore, no rental expense was incurred during the year ended March 31, 2017. (ii) During the years ended March 31, 2015, 2016 and 2017, the Group purchased raw materials from China Bright Group Co. Limited, a subsidiary of GMHL, for an amount of RMB15,683, RMB37,556 and RMB36,405 (US$5,289), respectively. (iii) During the years ended March 31, 2015, 2016 and 2017, consultancy services were provided by Golden Meditech (S) Pte Ltd., a subsidiary of GMHL, to the Group for an amount of RMB1,984, RMB4,078 and RMB4,337 (US$630), respectively. (iv) During the year ended March 31, 2015 and the period from April 1, 2015 to October 30, 2015, CGL charged the Group a license fee for an amount of RMB321 and RMB317, respectively. Since October 30, 2015, CGL was no longer a related party of the Group. (v) During the year ended March 31, 2017, the Company performed a consultation service related to the usage of cord blood processing devices and consumables and recorded RMB16,786 (US$2,439) as a reduction of direct costs. GMHL is a distributor of such devices and consumables in the PRC and the Company is a customer of GMHL. Since the consideration of the consultation service cannot be sufficiently separated from the Company’s purchases of such devices and consumables and the fair value of the benefit provided for cannot be reasonably estimated either, the consideration received from GMHL was recorded as a reduction of direct costs as associated cord blood processing devices and consumables which the Company purchased from GMHL were consumed and included in direct costs. (vi) During the year ended March 31, 2017, the Company entered into a collaboration agreement with GMHL. Utilizing the Company’s existing donated cord blood samples resources, the Company provided GMHL with exclusive access to certain data derived from a small portion of donated cord blood samples and has no further obligation to GMHL, in return for a fee of RMB26,316 (US$3,823). |
Business and credit concentra51
Business and credit concentrations (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Business and credit concentrations | |
Schedule of major suppliers | Year ended March 31, Suppliers 2015 2016 2017 RMB % RMB % RMB US$ % China Bright Group Co. Limited Hangzhou Baitong Biological Technology Co., Ltd. — — — — — Total |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and contingencies | |
Schedule of future minimum payments under non-cancellable operating leases | March 31, 2017 RMB US$ Fiscal years ending March 31, 2018 2019 2020 — — 2021 — — 2022 and thereafter — — Total payments |
Schedule of future minimum payments under the cooperation agreements | March 31, 2017 RMB US$ Fiscal years ending March 31, 2018 2019 2020 2021 2022 2023 and thereafter Total payments |
Principal activities, reorgan53
Principal activities, reorganization and reverse recapitalization, and basis of presentation (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Nov. 03, 2008USD ($)$ / sharesshares | Nov. 30, 2012USD ($)shares | Nov. 30, 2012CNY (¥)shares | Feb. 28, 2011USD ($) | Feb. 28, 2011CNY (¥) | Dec. 31, 2010CNY (¥) | Aug. 31, 2009shares | May 31, 2007CNY (¥) | Mar. 31, 2013shares | Mar. 31, 2017item | Jun. 30, 2009 | Jan. 31, 2008item |
Principal activities | ||||||||||||
Number of cord blood banking licenses issued that are held by the Company | item | 3 | |||||||||||
Reorganization and reverse recapitalization | ||||||||||||
Treasury shares sold to CGL | shares | 7,314,015 | 7,314,015 | 7,314,015 | |||||||||
Treasury shares sold to CGL, as a percent of the Company's ordinary shares | 10.00% | 10.00% | ||||||||||
Consideration received in stock transaction | $ | $ 20,800 | |||||||||||
Credit to additional paid-in capital on reissuance of treasury stock | ¥ 3,341 | |||||||||||
Net proceeds from sale of equity | $ 4,000 | ¥ 25,320 | ||||||||||
Zhejiang province | ||||||||||||
Reorganization and reverse recapitalization | ||||||||||||
Consideration for operating rights | $ 12,500 | ¥ 82,124 | ||||||||||
China Cord Blood Services (CCBS) | Share Exchange Agreement | ||||||||||||
Reorganization and reverse recapitalization | ||||||||||||
Maximum number of shares of Company common stock issuable under agreement | shares | 57,851,240 | |||||||||||
Percentage of acquiree's ordinary shares sold to Company | 100.00% | |||||||||||
Percentage of acquiree's redeemable ordinary shares sold to Company | 76.00% | |||||||||||
Percentage of equity interests in acquiree sold to Company | 93.94% | |||||||||||
Consideration | $ | $ 328,790 | |||||||||||
Shares of Company common stock issued as consideration | shares | 54,345,104 | |||||||||||
Value per share of consideration | $ / shares | $ 6.05 | |||||||||||
Percentage of ownership after transaction | 91.70% | |||||||||||
China Cord Blood Services (CCBS) | Agreements for remaining shares | ||||||||||||
Reorganization and reverse recapitalization | ||||||||||||
Percentage of acquiree's redeemable ordinary shares sold to Company | 24.00% | |||||||||||
Shares of Company common stock issued as consideration | shares | 3,506,136 | |||||||||||
China Stem Cells Holdings Limited (CSC Holdings) | PRC | ||||||||||||
Reorganization and reverse recapitalization | ||||||||||||
Number of main subsidiaries | item | 2 | |||||||||||
China Stem Cells (South) Company Limited | ||||||||||||
Reorganization and reverse recapitalization | ||||||||||||
Percentage of equity interest in subsidiary | 90.00% | |||||||||||
Percentage of shares repurchased | 10.00% | 10.00% | ||||||||||
Payment for repurchase of common stock | $ | $ 16,800 | |||||||||||
Charge to paid-in capital for shares repurchased | ¥ 70,774 | |||||||||||
China Stem Cells (South) Company Limited | Guangzhou Nuoya | ||||||||||||
Reorganization and reverse recapitalization | ||||||||||||
Payments to acquire interest in subsidiary | ¥ 30,949 | |||||||||||
Zhejiang Lukou | ||||||||||||
Reorganization and reverse recapitalization | ||||||||||||
Percentage of equity interest in subsidiary | 90.00% | |||||||||||
Capital injection from Group | ¥ 45,000 | |||||||||||
Contribution of property from non-controlling interests | ¥ 5,000 | |||||||||||
Ownership interest by noncontrolling owner | 10.00% |
Summary of significant accoun54
Summary of significant accounting policies - Foreign currency translation (Details) | Mar. 31, 2017¥ / $ |
Summary of significant accounting policies | |
Foreign currency convenience translation rate | 6.8832 |
Summary of significant accoun55
Summary of significant accounting policies - Cash and cash equivalents, and Accounts receivable (Details) ¥ in Thousands, SGD in Thousands, HKD in Thousands, AUD in Thousands, $ in Thousands | 12 Months Ended | |||||||||||
Mar. 31, 2017SGD | Mar. 31, 2017HKD | Mar. 31, 2017AUD | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016SGD | Mar. 31, 2016HKD | Mar. 31, 2016AUD | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | |
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents | $ 509,976 | ¥ 3,510,264 | $ 437,067 | ¥ 3,008,422 | ¥ 2,436,655 | ¥ 1,882,901 | ||||||
Accounts receivable | ||||||||||||
Age of accounts receivable, local tax requirements on the write-offs of doubtful accounts (in year) | 3 years | |||||||||||
PRC | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents | 498,608 | 3,432,022 | 2,820,472 | |||||||||
U.S. dollar | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents | $ 5,707 | 39,476 | $ 3,702 | 24,017 | ||||||||
Australian dollars | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents | AUD 1 | 6 | AUD 1 | 5 | ||||||||
Renminbi | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents | 3,432,042 | 2,820,503 | ||||||||||
Hong Kong dollars | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents | HKD 43,679 | 38,735 | HKD 197,049 | 163,885 | ||||||||
Singapore dollars | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents | SGD 1 | ¥ 5 | SGD 2 | ¥ 12 |
Summary of significant accoun56
Summary of significant accounting policies - Property, plant and equipment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Property, plant and equipment, net | ||||
Depreciation expense | $ 6,662 | ¥ 45,860 | ¥ 45,545 | ¥ 45,988 |
Buildings | Minimum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 37 years 6 months | 37 years 6 months | ||
Buildings | Maximum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 50 years | 50 years | ||
Leasehold improvements | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 10 years | 10 years | ||
Machineries | Minimum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 5 years | 5 years | ||
Machineries | Maximum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 10 years | 10 years | ||
Motor vehicles | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 5 years | 5 years | ||
Furniture, fixtures and office equipment | Minimum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 3 years | 3 years | ||
Furniture, fixtures and office equipment | Maximum | ||||
Property, plant and equipment, net | ||||
Estimated useful lives | 5 years | 5 years | ||
Construction-in-progress | ||||
Property, plant and equipment, net | ||||
Depreciation expense | ¥ 0 |
Summary of significant accoun57
Summary of significant accounting policies - Others (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($)iteminstallmentpayment | Mar. 31, 2017CNY (¥)iteminstallmentpayment | Mar. 31, 2016CNY (¥)installmentpayment | Mar. 31, 2015CNY (¥)installmentpayment | |
Estimated useful life of the operating rights | 30 years | 30 years | ||
Impairment of long-lived assets | ¥ 0 | ¥ 0 | ¥ 0 | |
Agreement with customers, blood storage period | 18 years | 18 years | ||
Agreement with customers, blood storage renewal period | 1 year | 1 year | 1 year | 1 year |
Penalty charged to customers for early termination of the storage service | ¥ 0 | |||
Number of customer payment options | payment | 3 | 3 | 3 | 3 |
Number of installments for upfront payment of storage fees for a period of eighteen years, blood storage | installment | 4 | 4 | 4 | 4 |
Customer delinquent period before ceasing of recognizing storage revenue | 24 months | 24 months | 24 months | 24 months |
Value-added tax rate (as a percent) | 6.00% | 6.00% | ||
Advertising and promotion costs | $ 4,697 | ¥ 32,331 | ¥ 35,477 | ¥ 30,899 |
Number of operating segments | item | 1 | 1 | ||
Convertible notes | ||||
Debt issuance costs, amortization period | 5 years | 5 years |
Summary of significant accoun58
Summary of significant accounting policies - Recently issued accounting standards (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Recently issued accounting standards | |||
Non-current deferred tax liabilities | $ 3,112 | ¥ 21,423 | ¥ 37,086 |
Balance Sheet Classification of Deferred Taxes | |||
Recently issued accounting standards | |||
Current deferred tax assets | (14,056) | ||
Current deferred tax liabilities | (14,300) | ||
Non-current deferred tax assets | 14,056 | ||
Non-current deferred tax liabilities | ¥ 14,300 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) |
Accounts receivable, net | ||||||
Accounts receivable | $ 53,069 | ¥ 365,283 | ¥ 390,550 | |||
Less: Allowance for doubtful accounts | (17,086) | (117,602) | $ (14,658) | (100,894) | ¥ (83,835) | ¥ (63,025) |
Total accounts receivable, net | 35,983 | 247,681 | 289,656 | |||
Accounts receivable, current portion | 16,349 | 112,533 | 124,645 | |||
Accounts receivable, noncurrent portion | 19,634 | 135,148 | 165,011 | |||
Cord blood processing fees | ||||||
Accounts receivable, net | ||||||
Accounts receivable, current portion | 10,365 | 71,343 | 78,649 | |||
Accounts receivable, noncurrent portion | 19,634 | 135,148 | 165,011 | |||
Cord blood storage fees | ||||||
Accounts receivable, net | ||||||
Accounts receivable, current portion | 5,797 | 39,904 | 43,618 | |||
Fees derived from the provision of donated cord blood for transplantation and research and others | ||||||
Accounts receivable, net | ||||||
Accounts receivable, current portion | $ 187 | ¥ 1,286 | ¥ 2,378 |
Accounts receivable, net - Non
Accounts receivable, net - Non current gross amounts (Details) - Mar. 31, 2017 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Non-current gross accounts receivable | ||
2,019 | $ 4,796 | ¥ 33,012 |
2,020 | 4,302 | 29,612 |
2,021 | 3,843 | 26,450 |
2,022 | 3,583 | 24,663 |
2023 and thereafter | 18,842 | 129,691 |
Non-current gross accounts receivable due for payment | $ 35,366 | ¥ 243,428 |
Accounts receivable, net - Agin
Accounts receivable, net - Aging (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Aging of gross accounts receivable based on due date | |||
Total gross accounts receivable | $ 53,069 | ¥ 365,283 | ¥ 390,550 |
Not past due | |||
Aging of gross accounts receivable based on due date | |||
Total gross accounts receivable | 36,156 | 248,865 | 276,405 |
Within one year past due | |||
Aging of gross accounts receivable based on due date | |||
Total gross accounts receivable | 5,583 | 38,431 | 48,266 |
Between one to two years past due | |||
Aging of gross accounts receivable based on due date | |||
Total gross accounts receivable | 5,166 | 35,556 | 33,170 |
Over two years past due | |||
Aging of gross accounts receivable based on due date | |||
Total gross accounts receivable | $ 6,164 | ¥ 42,431 | ¥ 32,709 |
Accounts receivable, net - Allo
Accounts receivable, net - Allowance for doubtful accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Analysis of the allowance for doubtful accounts | ||||
Balance at beginning of year | $ 14,658 | ¥ 100,894 | ¥ 83,835 | ¥ 63,025 |
Charged to allowance for doubtful accounts | 4,297 | 29,574 | 20,251 | 25,042 |
Write-off charged against the allowance for the year | (1,869) | (12,866) | (3,192) | (4,232) |
Balance at end of year | $ 17,086 | ¥ 117,602 | ¥ 100,894 | ¥ 83,835 |
Inventories - Schedule (Details
Inventories - Schedule (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Inventories | |||
Current portion: - Consumables and supplies | $ 4,502 | ¥ 30,987 | ¥ 28,326 |
Non-current portion: - Processing costs capitalized in donated umbilical cord blood | 9,992 | 68,775 | 64,322 |
Total current and non-current inventories | 14,494 | 99,762 | 92,648 |
Consumables and supplies | |||
Inventories | |||
Current portion: - Consumables and supplies | 4,502 | 30,987 | 28,326 |
Processing costs capitalized in donated umbilical cord blood | |||
Inventories | |||
Non-current portion: - Processing costs capitalized in donated umbilical cord blood | $ 9,992 | ¥ 68,775 | ¥ 64,322 |
Inventories - Provision (Detail
Inventories - Provision (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Inventories | |||
Provision for inventories | ¥ 0 | ¥ 0 | ¥ 0 |
Weighted average remaining useful life of donated cord blood units | 19 years | ||
The estimated increase per annum in number of successful matches of donated units (as a percent) | 7.00% |
Prepaid expenses and other re65
Prepaid expenses and other receivables (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Prepaid expenses and other receivables | |||
Prepaid expenses | $ 1,781 | ¥ 12,257 | ¥ 17,294 |
VAT tax receivables | 151 | 1,036 | 798 |
Other receivables | 614 | 4,231 | 6,320 |
Total prepaid expenses and other receivables | $ 2,546 | ¥ 17,524 | ¥ 24,412 |
Property, plant and equipment66
Property, plant and equipment, net - Composition (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Property, plant and equipment, net | |||
Property, plant and equipment | $ 120,120 | ¥ 826,816 | ¥ 806,747 |
Less: Accumulated depreciation | (40,007) | (275,382) | (232,180) |
Total property, plant and equipment, net | 80,113 | 551,434 | 574,567 |
Buildings | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 86,205 | 593,369 | 584,661 |
Leasehold improvements | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 2,159 | 14,864 | 14,864 |
Machineries | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 22,425 | 154,359 | 149,213 |
Motor vehicles | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 2,492 | 17,152 | 15,808 |
Furniture, fixtures and equipment | |||
Property, plant and equipment, net | |||
Property, plant and equipment | 6,431 | 44,266 | 41,099 |
Construction-in-progress | |||
Property, plant and equipment, net | |||
Property, plant and equipment | $ 408 | ¥ 2,806 | ¥ 1,102 |
Property, plant and equipment67
Property, plant and equipment, net - Depreciation expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Property, plant and equipment, net | ||||
Depreciation expense | $ 6,662 | ¥ 45,860 | ¥ 45,545 | ¥ 45,988 |
Direct costs | ||||
Property, plant and equipment, net | ||||
Depreciation expense | 4,341 | 29,883 | 29,812 | 28,819 |
Research and development | ||||
Property, plant and equipment, net | ||||
Depreciation expense | 199 | 1,372 | 1,118 | 2,231 |
Sales and marketing | ||||
Property, plant and equipment, net | ||||
Depreciation expense | 443 | 3,051 | 3,070 | 2,530 |
General and administrative | ||||
Property, plant and equipment, net | ||||
Depreciation expense | $ 1,679 | ¥ 11,554 | ¥ 11,545 | ¥ 12,408 |
Property, plant and equipment68
Property, plant and equipment, net - Buildings collaterized (Details) ¥ in Thousands | Mar. 31, 2016CNY (¥) |
Property, plant and equipment, net | |
Bank loan | ¥ 60,000 |
Buildings | Short-term bank loan | |
Property, plant and equipment, net | |
Carrying value of buildings collateralized for loans | 100,479 |
Bank loan | ¥ 60,000 |
Non-current deposits (Details)
Non-current deposits (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Investment deposit | $ 33,825 | ¥ 232,824 | ¥ 218,358 |
Deposit for purchase of machineries | 677 | 4,663 | 21 |
Total non-current deposits | 34,502 | 237,487 | ¥ 218,379 |
Potential Seller | |||
Investment deposit | $ 33,660 | ¥ 232,824 |
Intangible assets, net - Schedu
Intangible assets, net - Schedule (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Intangible assets, net | |||
Cord blood bank operating rights | $ 20,140 | ¥ 138,628 | ¥ 138,628 |
Less: Accumulated depreciation | (4,641) | (31,942) | (27,321) |
Total intangible assets, net | $ 15,499 | ¥ 106,686 | ¥ 111,307 |
Intangible assets, net - Narrat
Intangible assets, net - Narrative (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2011USD ($) | Feb. 28, 2011CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2017CNY (¥) | |
Finite-Lived Intangible Assets | |||||||
Estimated useful life of operating rights | 30 years | 30 years | |||||
Amortization expense of operating rights | $ 672 | ¥ 4,621 | ¥ 4,621 | ¥ 4,621 | |||
Deferred tax liability | $ 3,874 | 27,827 | ¥ 26,672 | ||||
Period of expected cash flow | 30 years | 30 years | |||||
Guangdong province | |||||||
Finite-Lived Intangible Assets | |||||||
Estimated useful life of operating rights | 30 years | 30 years | |||||
Amortization expense of operating rights | $ 141 | ¥ 971 | 971 | 971 | |||
Zhejiang province | |||||||
Finite-Lived Intangible Assets | |||||||
Estimated useful life of operating rights | 30 years | 30 years | |||||
Amortization expense of operating rights | $ 531 | ¥ 3,650 | ¥ 3,650 | ¥ 3,650 | |||
Consideration for operating rights | $ 12,500 | ¥ 82,124 | |||||
Value of acquired operating rights | ¥ 109,499 | ||||||
Deferred tax liability | ¥ 27,375 | ||||||
Guangdong and Zhejiang | |||||||
Finite-Lived Intangible Assets | |||||||
General renewal period with provincial authorities | 3 years | 3 years | |||||
Beijing | |||||||
Finite-Lived Intangible Assets | |||||||
General renewal period with provincial authorities | 9 years | 9 years |
Intangible assets, net - Estima
Intangible assets, net - Estimated amortization (Details) - Mar. 31, 2017 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Intangible assets, net | ||
2,018 | $ 671 | ¥ 4,621 |
2,019 | 671 | 4,621 |
2,020 | 671 | 4,621 |
2,021 | 671 | 4,621 |
2,022 | 671 | 4,621 |
2023 and thereafter | 12,144 | 83,581 |
Total amortization expenses | $ 15,499 | ¥ 106,686 |
Available-for-sale equity sec73
Available-for-sale equity securities - Schedule (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Schedule of Available-for-sale Securities | |||
Available-for-sale equity securities | $ 29,171 | ¥ 200,790 | ¥ 162,734 |
Listed equity securities | |||
Schedule of Available-for-sale Securities | |||
Available-for-sale equity securities | 19,132 | 131,693 | 162,734 |
Listed equity securities | Life Corporation Limited - listed on Australian Securities Exchange | |||
Schedule of Available-for-sale Securities | |||
Available-for-sale equity securities | 31 | 214 | 1,607 |
Listed equity securities | Cordlife Group Limited - listed on Singapore Exchange | |||
Schedule of Available-for-sale Securities | |||
Available-for-sale equity securities | 19,101 | 131,479 | ¥ 161,127 |
Listed fund investments | |||
Schedule of Available-for-sale Securities | |||
Available-for-sale equity securities | $ 10,039 | ¥ 69,097 |
Available-for-sale equity sec74
Available-for-sale equity securities - Narrative (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2017USD ($)shares | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥)shares | Mar. 31, 2015CNY (¥) | Mar. 31, 2017CNY (¥)shares | |
Schedule of Available-for-sale Securities | |||||
Consideration made to acquire available-for-sale equity securities | $ 9,611 | ¥ 66,154 | ¥ 4,647 | ||
Dividend income | 7 | 45 | ¥ 49,198 | 2,344 | |
Impairment loss on available-for-sale equity securities | 368 | 2,533 | 8,361 | ||
Cost basis of the available-for-sale equity securities | 14,615 | 36,976 | ¥ 100,597 | ||
The aggregate fair values of the available-for-sale equity securities | $ 29,171 | ¥ 162,734 | ¥ 200,790 | ||
Life Corporation Limited - listed on Australian Securities Exchange | |||||
Schedule of Available-for-sale Securities | |||||
Ordinary shares held | 8,122,222 | 8,122,222 | 8,122,222 | ||
Percentage equity interest owned | 11.40% | 11.40% | 11.40% | ||
Impairment loss on available-for-sale equity securities | $ 368 | 2,533 | ¥ 8,361 | ||
Total unrealized holding gain (loss) | $ (27) | ¥ (1,276) | ¥ (185) | ||
Cordlife Group Limited - listed on Singapore Exchange | |||||
Schedule of Available-for-sale Securities | |||||
Ordinary shares held | 25,516,666 | 25,516,666 | 25,516,666 | ||
Percentage equity interest owned | 9.80% | 9.80% | 9.80% | ||
Dividend income | ¥ | 0 | ¥ 17,007 | ¥ 2,344 | ||
Total unrealized holding gain (loss) | $ 13,370 | ¥ 130,794 | ¥ 92,025 | ||
Industry specific fund | |||||
Schedule of Available-for-sale Securities | |||||
Consideration made to acquire available-for-sale equity securities | 10,000 | ¥ 66,154 | |||
Other investment | |||||
Schedule of Available-for-sale Securities | |||||
Total unrealized holding gain (loss) | $ (10) | ¥ (72) |
Other investment (Details)
Other investment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2017CNY (¥) | |
Schedule of Cost Method Investments | |||||
Unlisted equity securities, at cost | $ 27,477 | ¥ 189,129 | ¥ 189,129 | ||
Dividend income | $ 7 | ¥ 45 | ¥ 49,198 | ¥ 2,344 | |
Qilu Stem Cells | |||||
Schedule of Cost Method Investments | |||||
Percentage equity interest acquired | 24.00% | 24.00% | 24.00% | ||
Dividend income | ¥ 0 | ¥ 31,800 | ¥ 0 |
Bank loan (Details)
Bank loan (Details) - Short-term bank loan - CNY (¥) ¥ in Thousands | Oct. 09, 2015 | Aug. 25, 2014 |
Bank loan | ||
Amount borrowed | ¥ 60,000 | ¥ 60,000 |
Term of the loan | 1 year | 1 year |
Monthly fixed interest rate (as a percent) | 0.46% | 0.60% |
Accrued expenses and other pa77
Accrued expenses and other payables (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Accrued expenses and other payables | |||
Insurance premium received on behalf of insurance company | $ 4,119 | ¥ 28,348 | ¥ 23,591 |
Other tax payables | 634 | 4,365 | 2,489 |
Accrued salaries, bonus and welfare expenses | 1,274 | 8,770 | 17,343 |
Accrued consultancy and professional fees | 721 | 4,961 | 3,601 |
Payable for property, plant and equipment | 160 | 1,098 | 1,119 |
Other payables | 2,559 | 17,620 | 13,161 |
Total accrued expenses and other payables | $ 9,467 | ¥ 65,162 | ¥ 61,304 |
Deferred revenue - Composition
Deferred revenue - Composition (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) |
Deferred revenue | ||||||
Current portion | $ 47,026 | ¥ 323,690 | ¥ 257,692 | |||
Non-current portion | 228,030 | 1,569,579 | 1,321,239 | |||
Total current and non-current deferred revenue | 275,056 | 1,893,269 | 1,578,931 | |||
Payments by customers prior to completion of cord blood processing services | ||||||
Deferred revenue | ||||||
Total current and non-current deferred revenue | 18,869 | 129,880 | 96,857 | |||
Unearned storage fees | ||||||
Deferred revenue | ||||||
Total current and non-current deferred revenue | $ 256,187 | ¥ 1,763,389 | $ 215,318 | ¥ 1,482,074 | ¥ 1,232,243 | ¥ 926,756 |
Deferred revenue - Rollforward
Deferred revenue - Rollforward (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Analysis of deferred revenue | ||||
Balance at beginning of year | ¥ 1,578,931 | |||
Balance at end of year | $ 275,056 | 1,893,269 | ¥ 1,578,931 | |
Unearned storage fees | ||||
Analysis of deferred revenue | ||||
Balance at beginning of year | 215,318 | 1,482,074 | 1,232,243 | ¥ 926,756 |
Deferred revenue arising from new customers | 81,297 | 559,588 | 493,354 | 509,334 |
Credited to income | (40,428) | (278,273) | (243,523) | (203,847) |
Balance at end of year | $ 256,187 | ¥ 1,763,389 | ¥ 1,482,074 | ¥ 1,232,243 |
Convertible notes, net (Details
Convertible notes, net (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | May 31, 2015USD ($) | Nov. 30, 2014USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2013USD ($) | Mar. 31, 2013CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Dec. 01, 2014USD ($) | Oct. 03, 2012USD ($)$ / shares | Apr. 27, 2012USD ($)$ / shares |
Carrying amounts of Notes | ||||||||||
Convertible notes, net | $ 149,807 | ¥ 1,031,154 | ¥ 906,222 | |||||||
Representing: | ||||||||||
Current portion | 149,807 | 1,031,154 | ||||||||
Non-current portion | ¥ | 906,222 | |||||||||
Convertible notes, net | $ 149,807 | ¥ 1,031,154 | 906,222 | |||||||
GM Notes | ||||||||||
Convertible notes, net | ||||||||||
Denomination of the GM Notes | $ 50,000 | $ 25,000 | ||||||||
GM Notes | Cordlife Group Limited - listed on Singapore Exchange | ||||||||||
Convertible notes, net | ||||||||||
Aggregate principal amount | 25,000 | |||||||||
GM Notes | Magnum | ||||||||||
Convertible notes, net | ||||||||||
Aggregate principal amount | 25,000 | |||||||||
GMHL | Cordlife Group Limited - listed on Singapore Exchange | ||||||||||
Convertible notes, net | ||||||||||
Proceeds from sale of the GM Notes | $ 61,677 | |||||||||
GMHL | Magnum | ||||||||||
Convertible notes, net | ||||||||||
Proceeds from sale of the GM Notes | $ 61,896 | |||||||||
GMHL | GM Notes | ||||||||||
Convertible notes, net | ||||||||||
Proceeds from sale of the GM Notes | $ 88,090 | |||||||||
Convertible notes | ||||||||||
Convertible notes, net | ||||||||||
Default interest rate | 22.50% | 22.50% | ||||||||
Guaranteed internal rate of return | 12.00% | |||||||||
Interest rate | 7.00% | 7.00% | ||||||||
Debt issuance costs, amortization period | 5 years | |||||||||
Carrying amounts of Notes | ||||||||||
Cumulative interest payables | $ 34,343 | ¥ 236,389 | 164,624 | |||||||
Less: Unamortized debt issuance costs | $ (101) | (695) | (4,437) | |||||||
Convertible notes | KKR Notes | ||||||||||
Convertible notes, net | ||||||||||
Aggregate principal amount | $ 65,000 | |||||||||
Guaranteed internal rate of return | 12.00% | |||||||||
Interest rate | 7.00% | |||||||||
Conversion price per share | $ / shares | $ 2.838 | |||||||||
Proceeds from issuance of convertible notes | $ 65,000 | |||||||||
Issuance costs incurred | ¥ | ¥ 14,260 | |||||||||
Carrying amounts of Notes | ||||||||||
Principal amount of Notes | $ 65,319 | 449,608 | 421,672 | |||||||
Convertible notes | GM Notes | ||||||||||
Convertible notes, net | ||||||||||
Aggregate principal amount | $ 50,000 | |||||||||
Guaranteed internal rate of return | 12.00% | |||||||||
Interest rate | 7.00% | |||||||||
Conversion price per share | $ / shares | $ 2.838 | |||||||||
Proceeds from issuance of convertible notes | $ 50,000 | |||||||||
Issuance costs incurred | ¥ | ¥ 4,258 | |||||||||
Carrying amounts of Notes | ||||||||||
Principal amount of Notes | $ 50,246 | ¥ 345,852 | ¥ 324,363 |
Convertible notes, net - Intere
Convertible notes, net - Interest (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Convertible notes, net | ||||
Amortization of debt issuance costs | $ 573 | ¥ 3,947 | ¥ 3,712 | ¥ 3,610 |
Convertible notes | ||||
Convertible notes, net | ||||
Amortization of debt issuance costs | 573 | 3,947 | 3,712 | 3,610 |
Total interest expense | 17,134 | 117,940 | 104,918 | 96,840 |
Convertible notes | KKR Notes | ||||
Convertible notes, net | ||||
Notes interest incurred | 9,462 | 65,130 | 57,807 | 53,222 |
Convertible notes | GM Notes | ||||
Convertible notes, net | ||||
Notes interest incurred | $ 7,099 | ¥ 48,863 | ¥ 43,399 | ¥ 40,008 |
Shareholders' equity (Details)
Shareholders' equity (Details) ¥ in Thousands, $ in Thousands | Jul. 25, 2017USD ($) | Jul. 28, 2016USD ($) | Nov. 30, 2012shares | Mar. 31, 2017USD ($)shares | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥)shares | Mar. 31, 2015CNY (¥)shares | Mar. 31, 2013CNY (¥)shares | Mar. 31, 2017CNY (¥)shares |
Shareholders' equity | |||||||||
Ordinary shares, shares outstanding | 73,003,248 | 73,003,248 | 73,003,248 | 73,003,248 | |||||
Ordinary shares, shares issued | 73,140,147 | 73,140,147 | 73,140,147 | 73,140,147 | |||||
The percentage of net income that Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou required to transfer to surplus reserve | 10.00% | 10.00% | |||||||
The percentage of their respective registered capital that the statutory surplus reserve must reach before Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou are not required to transfer their net income | 50.00% | 50.00% | |||||||
The percentage of registered capital that must be retained in the statutory surplus reserve balance after conversion into issued capital | 25.00% | 25.00% | |||||||
Aggregate transfers made to the statutory surplus reserves by Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou | $ 285 | ¥ 1,964 | ¥ 16,443 | ¥ 8,471 | |||||
Accumulated statutory surplus reserve | $ 18,569 | ¥ 125,851 | ¥ 127,815 | ||||||
Purchase of Treasury Stock, shares | 7,450,914 | ||||||||
Purchase of Treasury Stock | ¥ | ¥ 131,302 | ||||||||
Sale of treasury shares, shares | 7,314,015 | 7,314,015 | |||||||
Treasury stock, shares | 136,899 | 136,899 | 136,899 | ||||||
Share repurchase program, amount | $ | $ 20,000 | $ 20,000 | |||||||
Share repurchase program, period | 12 months | 12 months |
Revenues (Details)
Revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Revenues from External Customers | ||||
Total revenues | $ 110,411 | ¥ 759,978 | ¥ 662,999 | ¥ 635,122 |
Cord blood processing fees | ||||
Revenues from External Customers | ||||
Total revenues | 69,335 | 477,243 | 415,000 | 428,261 |
Cord blood storage fees | ||||
Revenues from External Customers | ||||
Total revenues | 40,428 | 278,273 | 243,523 | 203,847 |
Fees derived from the provision of donated cord blood for transplantation and research and others | ||||
Revenues from External Customers | ||||
Total revenues | $ 648 | ¥ 4,462 | ¥ 4,476 | ¥ 3,014 |
Income tax - Tax rates (Details
Income tax - Tax rates (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | 36 Months Ended | ||||||||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2017CNY (¥) | |
Income tax | ||||||||||
Tax expense | $ 5,466 | ¥ 37,622 | ¥ 50,000 | ¥ 47,327 | ||||||
Provision for withholding tax | 14,300 | |||||||||
Reversal of withholding income tax | 2,078 | ¥ 14,300 | ||||||||
Provision for income taxes on undistributed earnings | 0 | |||||||||
Undistributed earnings that may be subject to the withholding tax | 233,774 | 1,609,119 | ||||||||
Unrecognized deferred tax liability from unremitted earnings of PRC subsidiaries | $ 23,377 | ¥ 160,912 | ||||||||
Cayman Islands | ||||||||||
Income tax | ||||||||||
Withholding tax amount on dividends | 0 | |||||||||
Hong Kong | ||||||||||
Income tax | ||||||||||
Tax expense | ¥ 0 | ¥ 0 | ¥ 0 | |||||||
PRC subsidiary | ||||||||||
Income tax | ||||||||||
Statutory income tax rate | 25.00% | 25.00% | ||||||||
Beijing Jiachenhong | ||||||||||
Income tax | ||||||||||
HNTE preferential tax rate | 15.00% | |||||||||
Beijing Jiachenhong | Forecast | ||||||||||
Income tax | ||||||||||
HNTE preferential tax rate | 15.00% | |||||||||
Guangzhou Nuoya | ||||||||||
Income tax | ||||||||||
HNTE preferential tax rate | 15.00% | |||||||||
Guangzhou Nuoya | Forecast | ||||||||||
Income tax | ||||||||||
HNTE preferential tax rate | 15.00% | |||||||||
Zhejiang Lukou | Forecast | ||||||||||
Income tax | ||||||||||
HNTE preferential tax rate | 15.00% |
Income tax - Income before inco
Income tax - Income before income tax (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Income tax | ||||
Income before income tax expense | $ 24,162 | ¥ 166,311 | ¥ 141,333 | ¥ 155,120 |
The PRC | ||||
Income tax | ||||
Income before income tax expense, The PRC | 53,093 | 365,448 | 323,510 | 284,288 |
Hong Kong | ||||
Income tax | ||||
Income before income tax expense, Non-PRC | (5) | (36) | 405 | (43) |
British Virgin Islands | ||||
Income tax | ||||
Income before income tax expense, Non-PRC | (434) | (2,985) | 8,288 | 1,916 |
Cayman Islands | ||||
Income tax | ||||
Income before income tax expense, Non-PRC | $ (28,492) | ¥ (196,116) | ¥ (190,870) | ¥ (131,041) |
Income tax - Curent and deferre
Income tax - Curent and deferred (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Income tax | ||||
Current tax expense | $ 8,537 | ¥ 58,767 | ¥ 51,060 | ¥ 48,239 |
Deferred tax expense | (3,071) | (21,145) | (1,060) | (912) |
Total income tax expense | $ 5,466 | ¥ 37,622 | ¥ 50,000 | ¥ 47,327 |
Income tax - Reconciliation of
Income tax - Reconciliation of expected income tax to actual income tax expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Income Tax [Line Items] | ||||
Income before income tax expense | $ 24,162 | ¥ 166,311 | ¥ 141,333 | ¥ 155,120 |
Computed "expected" tax expense | 6,041 | 41,578 | 35,333 | 38,780 |
PRC dividend withholding tax | (2,078) | (14,300) | 5,200 | 5,200 |
Non-taxable income | (7,950) | |||
Preferential tax rates | (5,801) | (39,931) | (33,049) | (29,663) |
Others | 72 | 491 | 4,922 | 718 |
Total income tax expense | 5,466 | 37,622 | 50,000 | 47,327 |
Hong Kong | ||||
Income Tax [Line Items] | ||||
Non-PRC entities not subject to income tax | 1 | 9 | (101) | 11 |
Total income tax expense | 0 | 0 | 0 | |
British Virgin Islands | ||||
Income Tax [Line Items] | ||||
Non-PRC entities not subject to income tax | 108 | 746 | (2,072) | (479) |
Cayman Islands | ||||
Income Tax [Line Items] | ||||
Non-PRC entities not subject to income tax | $ 7,123 | ¥ 49,029 | ¥ 47,717 | ¥ 32,760 |
Income tax - Deferred tax asset
Income tax - Deferred tax assets and liabilities (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2017CNY (¥) | |
Deferred tax assets: | |||||
Accounts receivable | $ 2,593 | ¥ 13,757 | ¥ 17,850 | ||
Non-current accounts receivable | 1,744 | 10,624 | 12,003 | ||
Inventories | 330 | 2,273 | 2,273 | ||
Others | 128 | 494 | 881 | ||
Net deferred tax assets | 4,795 | 27,148 | 33,007 | ||
Deferred tax liabilities: | |||||
Deferred revenue | (10) | (76) | (67) | ||
Property, plant and equipment | (804) | (5,358) | (5,536) | ||
PRC dividend withholding tax | (14,300) | ||||
Intangible assets | (3,874) | (27,827) | (26,672) | ||
Deferred tax liabilities | (4,688) | (47,561) | (32,275) | ||
Net deferred tax liabilities | (20,413) | ||||
Net deferred tax assets | 107 | 732 | |||
Classification on consolidated balance sheets: | |||||
Non-current deferred tax assets | 3,219 | 16,673 | 22,155 | ||
Non-current deferred tax liabilities | (3,112) | (37,086) | (21,423) | ||
Net deferred tax liabilities | (20,413) | ||||
Net deferred tax assets | $ 107 | ¥ 732 | |||
Interest and penalties related to unrecognized tax benefits | ¥ 0 | ¥ 0 | ¥ 0 | ||
The PRC | |||||
Classification on consolidated balance sheets: | |||||
Statute of limitation, underpayment due to computational errors | 3 years | 3 years | |||
Statute of limitation, special circumstances where underpayment is more than RMB100 | 5 years | 5 years | |||
Underpayment of taxes threshold that extends the statute of limitation | $ 15 | ¥ 100 | |||
Statute of limitation, transfer pricing issues | 10 years | 10 years |
Share-based compensation (Detai
Share-based compensation (Details) - Restricted Share Unit $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 15, 2014$ / sharesshares | Mar. 31, 2017USD ($)shares | Mar. 31, 2017CNY (¥)shares | Mar. 31, 2016CNY (¥)shares | Mar. 31, 2015CNY (¥) | Mar. 31, 2017shares |
Share-based compensation | ||||||
Term of RSU Scheme | 10 years | |||||
Shares granted in period | 7,300,000 | |||||
Number of equivalent shares | 1 | |||||
Fair value of each RSU | $ / shares | $ 4.15 | |||||
Outstanding RSUs (in shares) | 7,300,000 | 7,300,000 | 7,300,000 | 7,300,000 | ||
Exercisable RSUs (in shares) | 0 | 0 | 0 | 0 | ||
Weighted average remaining contract life | 1 year | 1 year | 2 years | |||
Total share-based compensation expense | $ 9,042 | ¥ 62,241 | ¥ 58,684 | ¥ 16,535 | ||
Direct costs | ||||||
Share-based compensation | ||||||
Total share-based compensation expense | 227 | 1,565 | 1,475 | 416 | ||
Sales and marketing | ||||||
Share-based compensation | ||||||
Total share-based compensation expense | 2,529 | 17,408 | 16,413 | 4,624 | ||
General and administrative | ||||||
Share-based compensation | ||||||
Total share-based compensation expense | $ 6,286 | ¥ 43,268 | ¥ 40,796 | ¥ 11,495 |
Earnings per share (Details)
Earnings per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2017CNY (¥)¥ / sharesshares | Mar. 31, 2016USD ($)shares | Mar. 31, 2016CNY (¥)¥ / sharesshares | Mar. 31, 2015CNY (¥)¥ / sharesshares | |
Numerator: | |||||
Net income attributable to the Company's shareholders | $ 18,333 | ¥ 126,190 | ¥ 90,970 | ¥ 107,292 | |
Earnings allocated to participating convertible notes | (1,456) | (10,019) | 0 | (8,108) | |
Net income for basic and diluted net income per share | $ 16,877 | ¥ 116,171 | ¥ 90,970 | ¥ 99,184 | |
Denominator: | |||||
Weighted average ordinary shares outstanding for basic and diluted net income per share | 73,003,248 | 73,003,248 | 73,003,248 | 73,003,248 | 73,003,248 |
Earnings per share | |||||
Basic | (per share) | $ 0.23 | ¥ 1.59 | ¥ 1.25 | ¥ 1.36 | |
Diluted | (per share) | $ 0.23 | ¥ 1.59 | ¥ 1.25 | ¥ 1.36 | |
Excess cash dividend | $ | $ 0 | ||||
Anti-dilutive ordinary shares | 40,521,494 | 40,521,494 | 40,521,494 | 40,521,494 | 40,521,494 |
Convertible notes | |||||
Earnings per share | |||||
Interest rate | 7.00% | 7.00% |
Related party transactions (Det
Related party transactions (Details) ¥ in Thousands, $ in Thousands | 7 Months Ended | 12 Months Ended | ||||
Oct. 31, 2015CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2017CNY (¥) | |
Related Party Transaction | ||||||
Incomes earned | $ 3,823 | ¥ 26,316 | ||||
Interest expenses | 16,561 | 113,993 | ¥ 78,014 | ¥ 40,008 | ||
Amounts due to related parties | 680 | 53,255 | ¥ 4,679 | |||
Beijing Jingjing | Rental of properties | ||||||
Related Party Transaction | ||||||
Expenses incurred | 0 | 1,440 | 1,440 | |||
Monthly rental payment | 120 | 120 | ||||
China Bright Group Co. Limited | Raw material purchase | ||||||
Related Party Transaction | ||||||
Raw material purchase | 5,289 | 36,405 | 37,556 | 15,683 | ||
GMHL, Beijing Jingjing and China Bright | ||||||
Related Party Transaction | ||||||
Amounts due to related parties | 680 | 53,255 | ¥ 4,679 | |||
Golden Meditech (S) Pte Ltd. | Consultancy expenses | ||||||
Related Party Transaction | ||||||
Expenses incurred | 630 | 4,337 | 4,078 | 1,984 | ||
Cordlife Group Limited - listed on Singapore Exchange | License fee | ||||||
Related Party Transaction | ||||||
Expenses incurred | ¥ 317 | ¥ 317 | ¥ 321 | |||
GMHL | Consultancy income | ||||||
Related Party Transaction | ||||||
Incomes earned | 2,439 | 16,786 | ||||
GMHL | Data access income | ||||||
Related Party Transaction | ||||||
Incomes earned | $ 3,823 | ¥ 26,316 |
Employee benefits (Details)
Employee benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Employee benefits | ||||
Defined contribution plan expense | $ 3,559 | ¥ 24,495 | ¥ 20,581 | ¥ 17,018 |
Sales and marketing | ||||
Employee benefits | ||||
Defined contribution rate | 55.00% | 55.00% | 55.00% | 51.00% |
Beijing Jiachenhong | ||||
Employee benefits | ||||
Defined contribution rate | 40.00% | 40.00% | ||
Guangzhou Nuoya | ||||
Employee benefits | ||||
Defined contribution rate | 40.00% | 40.00% | ||
Zhejiang Lukou | ||||
Employee benefits | ||||
Defined contribution rate | 40.00% | 40.00% |
Fair value measurements (Detail
Fair value measurements (Details) ¥ in Thousands, $ in Thousands | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) |
Fair value measurements | ||||
Carrying value of convertible notes | $ 149,807 | ¥ 1,031,154 | ¥ 906,222 | |
Level 3 | ||||
Fair value measurements | ||||
Fair value of convertible notes | 278,254 | 1,915,278 | $ 256,166 | |
Carrying value (before deducting unamortized debt issuance costs) | ||||
Fair value measurements | ||||
Carrying value of convertible notes | $ 149,908 | ¥ 1,031,849 | ¥ 910,659 |
Business and credit concentra94
Business and credit concentrations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Supplier | Purchases of raw materials | ||||
Concentration Risk | ||||
Purchases from suppliers | $ 5,289 | ¥ 36,405 | ¥ 37,556 | ¥ 22,283 |
Percentage of purchases | 52.00% | 52.00% | 49.00% | 35.00% |
Supplier | Purchases of raw materials | China Bright Group Co. Limited | ||||
Concentration Risk | ||||
Purchases from suppliers | $ 5,289 | ¥ 36,405 | ¥ 37,556 | ¥ 15,683 |
Percentage of purchases | 52.00% | 52.00% | 49.00% | 25.00% |
Supplier | Purchases of raw materials | Hangzhou Baitong Biological Technology Co., Ltd. | ||||
Concentration Risk | ||||
Purchases from suppliers | ¥ 6,600 | |||
Percentage of purchases | 10.00% | |||
Beijing | Customers | Net revenue | ||||
Concentration Risk | ||||
Percentage of purchases | 28.80% | 28.80% | 31.60% | 36.10% |
Guangdong province | Customers | Net revenue | ||||
Concentration Risk | ||||
Percentage of purchases | 58.70% | 58.70% | 58.80% | 55.60% |
Zhejiang province | Customers | Net revenue | ||||
Concentration Risk | ||||
Percentage of purchases | 12.50% | 12.50% | 9.60% | 8.30% |
Commitments and contingencies -
Commitments and contingencies - Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Commitments and contingencies | ||||
Total rental expenses, operating leases | $ 415 | ¥ 2,859 | ¥ 4,898 | ¥ 4,536 |
Commitments and contingencies96
Commitments and contingencies - Future minimum payments, Leases (Details) - Mar. 31, 2017 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Commitments and contingencies | ||
2,017 | $ 34 | ¥ 236 |
2,018 | 26 | 182 |
Total payments | $ 60 | ¥ 418 |
Commitments and contingencies97
Commitments and contingencies - Contractual commitments (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 47 Months Ended | 88 Months Ended | |||||
Oct. 31, 2013USD ($) | Oct. 31, 2013CNY (¥) | Sep. 30, 2013CNY (¥) | Sep. 30, 2013CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | |
Research and development of medicines | ||||||||
Contractual commitments | ||||||||
Commitment as of year end | $ 291 | ¥ 2,000 | $ 291 | ¥ 2,000 | ||||
Co-operation agreement | ||||||||
Contractual commitments | ||||||||
Commitment as of year end | $ 12,083 | ¥ 83,167 | ||||||
Co-operation agreement | Peking University People's Hospital | ||||||||
Contractual commitments | ||||||||
Annual advisory fee | $ 377 | ¥ 2,600 | ¥ 2,000 | |||||
Annual advisory fee, time period | 20 years | 20 years | ||||||
Co-operation agreement | Guangdong Women and Children's Hospital and Health Institute | ||||||||
Contractual commitments | ||||||||
Annual advisory fee | $ 465 | ¥ 3,200 | ¥ 2,000 |
Commitments and contingencies98
Commitments and contingencies - Future minimum payments, cooperation agreements (Details) - Mar. 31, 2017 - Co-operation agreement ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Future minimum payments under cooperation agreements | ||
2,018 | $ 843 | ¥ 5,800 |
2,019 | 843 | 5,800 |
2,020 | 843 | 5,800 |
2,021 | 843 | 5,800 |
2,022 | 843 | 5,800 |
2023 and thereafter | 7,868 | 54,167 |
Total payments | $ 12,083 | ¥ 83,167 |
Subsequent events (Details)
Subsequent events (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||
Apr. 30, 2017USD ($)$ / sharesshares | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Oct. 03, 2012$ / shares | Apr. 27, 2012$ / shares | |
Subsequent events | ||||||
Outstanding convertible notes | $ 149,807 | ¥ 1,031,154 | ¥ 906,222 | |||
Convertible notes | Subsequent events | Golden Meditech (S) Pte Ltd. | ||||||
Subsequent events | ||||||
Conversion amount of notes | $ | $ 115,000 | |||||
Conversion price per share | $ 2.838 | |||||
Number of shares issued in conversion of notes (in shares) | shares | 40,521,494 | |||||
Outstanding convertible notes | $ | $ 0 | |||||
KKR Notes | Convertible notes | ||||||
Subsequent events | ||||||
Conversion price per share | $ 2.838 | |||||
GM Notes | Convertible notes | ||||||
Subsequent events | ||||||
Conversion price per share | $ 2.838 |