Global Cord Blood Corp (NYSE:CO) stock rose 5.99% (As on Nov 25, 7:59:04 AM UTC-4, Source: Google Finance) after the company in the second quarter of FY 21 has reported 9.8% year-over-year increase in the total revenues to RMB313.7 million ($48.7 million) as a result of the increase in processing fees from new subscribers and growth in storage fee revenues. The Company recruited 19,066 new subscribers during the reporting quarter, an increase of 8.1% YoY, partially due to the lower subscriber base in the prior year period. Revenues generated from processing fees and other services increased by 9.7% YoY to RMB180.3 million ($28.0 million), representing 57.5% of total revenues, same as in the prior year period. The accumulated subscriber base as of September 30, 2021 expanded to 938,092. Revenues generated from storage fees in the reporting quarter increased by 10.0% YoY to RMB133.4 million ($20.7 million).
The company delivered 11.0% YoY increase in gross profit for the second quarter to RMB267.5 million ($41.5 million) and gross margin increased to 85.3% from 84.3% in the prior year period as efficiency gain outpaced rising labor cost. The topline improvement and postponing various sales and marketing activities lifted operating income. Operating income for the second quarter increased by 15.3% YoY to RMB160.5 million ($24.9 million). Operating margin improved to 51.2% from 48.7% in the prior year period. Depreciation and amortization expenses were RMB12.4 million ($1.9 million), compared to RMB12.3 million in the prior year period. Non-GAAP operating income increased by 14.1% YoY to RMB172.8 million ($26.8 million). As the increase in operating income offset by the mark-to-market loss of equity securities, income before income tax for the reporting quarter slightly increased by 0.1% YoY to RMB156.4 million ($24.3 million). Income tax expense was RMB28.3 million ($4.4 million). Net income attributable to the Company’s shareholders decreased by 4.3% YoY to RMB125.7 million ($19.5 million). Net margin for the second quarter was 40.1%.
Meanwhile, the Company had received a non-binding proposal letter (the “Alternate Ocean Offer”) from Alternate Ocean Investment Company Limited, pursuant to which Alternate Ocean, acting on behalf of certain funds and/or entities (the Acquirer) that it manages and/or advises, proposed to acquire all of the outstanding ordinary shares of the Company for $5.00 per ordinary share in cash, subject to certain conditions.