China Cord Blood Corporation, a provider of cord blood collection, hematopoietic stem cell processing, and stem cell storage services, has announced that its revenue for Q1 2011 has increased 23.8 percent to $11 million.

This is also the first time that the company's quarterly new subscriber number exceeded the 12,000 mark reaching 12,180. Fueled by the growth in new subscriber numbers, revenue generated from processing fees increased 16.4 percent year-over-year to $8.4 million (RMB56.7 million). Revenue from storage fees increased 62.9 percent year-over-year to $2.2 million (RMB15.0 million), due to an increase in the total number of subscribers during the quarter. The company's total subscriber base as of June 30, 2010 is said to have reached 141,492 subscribers, up 49.8 percent year-over-year.

Gross profit in the first quarter of fiscal 2011 increased to $8 million (RMB54.4 million) from $6 million (RMB41.7 million) in the prior year period. Gross margin expanded by four percentage points to 75.9 percent primarily due to favorable change in revenue mix, economies of scale and further cost savings. Storage fees accounted for 20.9 percent of the total revenue mix in the first quarter of fiscal 2011, as compared to 15.9 percent for the first quarter of fiscal 2010.

Sales and marketing expense for the first quarter amounted to $1.5 million (RMB10.1 million). As part of our commitment to continuously expand our sales and marketing platform, we continued to invest in marketing activities, and develop new marketing channels. Such activities will aid the establishment of a more comprehensive sales network and enhance public awareness of cord blood stem cell storage services.