Revenues generated from processing fees were RMB73.8 million ($11.7 million), down 1.1% from RMB74.6 million in the prior year period, as a result of the decline in new subscriber numbers pursuant to the Company strategy, which was partially offset by the increase in the higher processing fee per subscriber.
GROSS PROFIT. Gross profit for the fourth quarter of fiscal 2012 increased by 2.4% to RMB76.4 million ($12.1 million) from RMB74.7 million in the prior year period. This reflects a solid gross margin of 76.6% despite the reduction in new subscriber numbers.
OPERATING INCOME. Operating income for the fourth quarter decreased to RMB34.8 million ($5.5 million) compared to RMB36.4 million in the prior year period, mostly due to an increase in marketing activities and related expenses, operating margin thus decreased to 34.9% as compared to 38.5% in the prior year period. Depreciation and amortization expenses for the fourth quarter were RMB7.7 million ($1.2 million), compared to RMB6.5 million in the prior year period.
Research and Development Expenses. Research and development expenses increased to RMB2.0 million ($0.3 million) compared to RMB1.7 million in the prior year period as a reflection of the Company's continued focus on technology advancement in relation to cord blood stem cell preservation.
Sales and Marketing Expenses. Sales and marketing expenses increased by 24.8% to RMB16.6 million ($2.6 million) from RMB13.3 million in the prior year period as the Company continued to invest in promotional initiatives and increased its sales force by 32.2% to better
|SOURCE China Cord Blood Corporation|
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