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SEC Filings

20-F
IKANG HEALTHCARE GROUP, INC. filed this Form 20-F on 08/10/2018
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Table of Contents

 

Operating Expenses. Total operating expenses increased 19.7% to US$160.3 million in fiscal 2016 from US$133.9 million in fiscal 2015. Operating expenses as a percentage of our net revenues increased to 36.8% in fiscal 2016 from 36.1% in fiscal 2015.

 

·                  Sales and Marketing Expenses. Sales and marketing expenses increased 14.7% to US$74.3 million in fiscal 2016 from US$64.8 million in fiscal 2015, primarily due to a US$8.5 million increase in salaries and employee benefits arising from increased headcount of our sales and marketing teams to enhance our sales efforts in new markets and increased performance-based salaries for our sales and marketing personnel. As a percentage of our net revenues, sales and marketing expenses slightly decreased to 17.1% in fiscal 2016 from 17.5% in fiscal 2015.

 

·                  General and Administrative Expenses. General and administrative expenses increased 26.5% to US$82.8 million in fiscal 2016 from US$65.4 million in fiscal 2015, primarily due to (1) a US$8.0 million increase in salaries and employee benefits for arising from increased headcount of management personnel for new medical centers, (2) a US$4.4 million increase in our rental and general office expenses as a result of increases in rent of some of our medical centers and our office space in connection with our new medical centers, and (3) a US$3.3 million increase in professional fees primarily attributable to the legal service fees in connection with the privatization transaction. As a percentage of our net revenues, general and administrative expenses increased to 19.0% in fiscal 2016 from 17.6% in fiscal 2015.

 

·                  Research and Development Expenses. Research and development expenses decreased 14.0% to US$3.2 million in fiscal 2016 from US$3.7 million in fiscal 2015.

 

Interest Expense. Our interest expense significantly increased to US$13.9 million in fiscal 2016 from US$4.6 million in fiscal 2015, primarily due to the increases in our bank borrowings and other loans from financial institutions to support our business growth. Our short-term borrowings increased to US$111.3 million as of March 31, 2017 from US$53.4 million as of March 31, 2016.

 

Interest Income. Our interest income increased to US$0.9 million in fiscal 2016 from US$0.8 million in fiscal 2015.

 

Income Tax Expenses. Income tax expense decreased 42.5% to US$3.4 million in fiscal 2016 from US$5.8 million in fiscal 2015, primarily due to the decrease in our profit. Our income before income tax expenses and loss from equity method investments decreased to US$0.4 million in fiscal 2016 from US$24.1 million in fiscal 2015.

 

Loss from Equity Method Investments. Our loss from equity method investments increased to US$9.5 million in fiscal 2016 from US$1.7 million in fiscal 2015, primarily because NCI Health in which we hold a 45% equity interest continued to incur losses.

 

Net Loss. As a result of the foregoing, we had a net loss of US$12.5 million in fiscal 2016 compared to net income of US$16.5 million in fiscal 2015.

 

B.            LIQUIDITY AND CAPITAL RESOURCES

 

Our principal sources of liquidity have been cash generated from our operations, short-term borrowings and long-term borrowings. As of March 31, 2018, we had US$62.9 million in cash and cash equivalents. Our cash and cash equivalents consist of cash on hand, bank deposits that are unrestricted as to withdrawal or use, and highly liquid investments with original stated maturities of 90 days or less.

 

As of March 31, 2016, 2017 and 2018, our total current liabilities amounted to US$199.0 million, US$287.2 million and US$440.5 million, respectively. We had short-term borrowings of US$53.4 million, US$111.3 million and US$196.5 million outstanding as of March 31, 2016, 2017 and 2018, respectively. As of March 31, 2016, 2017 and 2018, the outstanding balance of our long-term borrowings was US$229.5 million, US$101.7 million and US$38.9 million respectively.

 

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