Sam John's questions to Global Cord Blood (CORBF) leadership • Q2 2022
Question
Sam John from Paramus Capital inquired about the timeline for the special committee's evaluation of a past offer, the company's capital allocation strategy regarding stock buybacks versus CapEx, and the CapEx budget for the next year. He also asked a follow-up question about the current capacity utilization rates across the company's facilities.
Answer
CFO Bing Chen responded that he could not provide details on the special committee's evaluation of the Alternate Ocean proposal but assured that it is being handled with shareholders' best interests in mind. On capital allocation, Chen explained that the company continuously reviews options like share repurchases, dividends, and acquisitions to diversify income, with any decisions to be formally announced. He stated that recent routine capital expenditure was approximately CNY 6 million over the past six months and there are no immediate plans for capacity expansion unless subscriber growth accelerates. Chen then provided specific capacity utilization rates: Beijing at ~70%, Guangdong at 65-70%, and Zhejiang at under 25%.