6-K 1 a15-4634_16k.htm 6-K

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 


 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of February 2015

 

Commission File Number: 001-34541

 

CHINA CORD BLOOD CORPORATION

(Translation of registrant’s name into English)

 

48th Floor, Bank of China Tower
1 Garden Road
Central
Hong Kong S.A.R.

(Address of Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x    Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes o    No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                             .

 

 

 



 

EXPLANATORY NOTE

 

This Report of Foreign Private Issuer on Form 6-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or China Cord Blood Corporation’s (the “Company”) future financial performance. The Company has attempted to identify forward-looking statements by terminology including “anticipates”, “believes”, “expects”, “can”, “continue”, “could”, “estimates”, “intends”, “may”, “plans”, “potential”, “predict”, “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions, uncertainties and other factors may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this Report on Form 6-K is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company’s expectations are as of the date of this Report on Form 6-K, and the Company does not intend to update any of the forward-looking statements after the date of this Report on Form 6-K to conform these statements to actual results, unless required by law.

 

The forward-looking statements included in this Report on Form 6-K are subject to risks, uncertainties and assumptions about the Company’s businesses and business environments. These statements reflect the Company’s current views with respect to future events and are not a guarantee of future performance. Actual results of the Company’s operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include, among other things: continued compliance with government regulations regarding cord blood banking in the People’s Republic of China, or PRC and any other jurisdiction in which the Company conducts its operations; changing legislation or regulatory environments (including revisions to China’s One Child Policy) in the PRC and any other jurisdiction in which the Company conducts its operations; the acceptance by subscribers of the Company’s different pricing and payment options and reaction to the introduction of the Company’s premium-quality pricing strategy; demographic trends in the regions of the PRC in which the Company is the exclusive licensed cord blood banking operator; labor and personnel relations; the existence of a significant shareholder able to influence and direct the corporate policies of the Company; credit risks affecting the Company’s revenue and profitability; changes in the healthcare industry, including those which may result in the use of stem cell therapies becoming redundant or obsolete; the Company’s ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; the availability of capital resources, including in the form of capital markets financing opportunities, in light of industry developments affecting issuers that have pursued a “reverse merger” with an operating company based in the PRC, as well as general economic conditions; compliance with restrictive debt covenants under the Company’s senior convertible notes; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission in the United States.

 

2



 

Results of Operations and Financial Condition

 

Following this cover page are the preliminary unaudited condensed consolidated financial results for the three months and nine months ended December 31, 2014 of the Company.

 

3



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and December 31, 2014

 

 

 

March 31,

 

December 31,

 

 

 

2014

 

2014

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands)

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

1,882,901

 

2,295,598

 

369,984

 

Trading securities

 

 

7,571

 

1,220

 

Accounts receivable, less allowance for doubtful accounts (March 31, 2014: RMB20,322; December 31, 2014: RMB25,309 (US$4,079))

 

95,273

 

117,276

 

18,902

 

Inventories

 

31,583

 

23,255

 

3,748

 

Prepaid expenses and other receivables

 

37,010

 

17,879

 

2,882

 

Debt issuance costs

 

3,616

 

3,606

 

581

 

Deferred tax assets

 

7,664

 

9,165

 

1,477

 

Total current assets

 

2,058,047

 

2,474,350

 

398,794

 

Property, plant and equipment, net

 

626,632

 

610,453

 

98,387

 

Non-current prepayments

 

208,894

 

208,049

 

33,531

 

Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2014: RMB42,703; December 31, 2014: RMB50,480 (US$8,136))

 

225,496

 

205,010

 

33,042

 

Inventories

 

48,385

 

56,832

 

9,160

 

Intangible assets, net

 

120,549

 

117,084

 

18,871

 

Available-for-sale equity securities

 

144,247

 

109,965

 

17,723

 

Other investment

 

189,129

 

189,129

 

30,482

 

Debt issuance costs

 

7,854

 

5,115

 

824

 

Deferred tax assets

 

1,789

 

2,551

 

411

 

Total assets

 

3,631,022

 

3,978,538

 

641,225

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Bank loan

 

60,000

 

60,000

 

9,670

 

Accounts payable

 

10,422

 

16,022

 

2,582

 

Accrued expenses and other payables

 

102,559

 

82,932

 

13,366

 

Deferred revenue

 

196,432

 

223,876

 

36,082

 

Amounts due to related parties

 

21,453

 

6,054

 

976

 

Income tax payable

 

2,571

 

10,939

 

1,763

 

Deferred tax liabilities

 

3,900

 

7,800

 

1,257

 

Total current liabilities

 

397,337

 

407,623

 

65,696

 

Convertible notes

 

777,753

 

807,952

 

130,218

 

Non-current deferred revenue

 

823,921

 

1,035,379

 

166,873

 

Other non-current liabilities

 

164,077

 

203,394

 

32,782

 

Deferred tax liabilities

 

27,938

 

26,584

 

4,285

 

Total liabilities

 

2,191,026

 

2,480,932

 

399,854

 

 

4



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and December 31, 2014 - (continued)

 

 

 

March 31,

 

December 31,

 

 

 

2014

 

2014

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

EQUITY

 

 

 

 

 

 

 

Shareholders’ equity of China Cord Blood Corporation

 

 

 

 

 

 

 

Ordinary shares

 

 

 

 

 

 

 

- US$0.0001 par value, 250,000,000 shares authorized, 73,140,147 shares issued and 73,003,248 shares outstanding as of March 31 and December 31, 2014, respectively

 

50

 

50

 

8

 

Additional paid-in capital

 

798,221

 

800,713

 

129,052

 

Treasury stock, at cost
(March 31 and December 31, 2014: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(453

)

Accumulated other comprehensive income

 

84,263

 

48,936

 

7,887

 

Retained earnings

 

555,323

 

645,692

 

104,066

 

Total equity attributable to China Cord Blood Corporation

 

1,435,042

 

1,492,576

 

240,560

 

Non-controlling interests

 

4,954

 

5,030

 

811

 

Total equity

 

1,439,996

 

1,497,606

 

241,371

 

Total liabilities and equity

 

3,631,022

 

3,978,538

 

641,225

 

 

5



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Nine Months ended December, 2013 and 2014

 

 

 

Three months ended December 31,

 

Nine months ended December 31,

 

 

 

2013

 

2014

 

2013

 

2014

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

150,586

 

166,675

 

26,863

 

420,942

 

472,128

 

76,093

 

Direct costs

 

(27,032

)

(36,047

)

(5,810

)

(78,884

)

(96,171

)

(15,500

)

Gross profit

 

123,554

 

130,628

 

21,053

 

342,058

 

375,957

 

60,593

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(2,401

)

(2,418

)

(390

)

(7,234

)

(7,247

)

(1,168

)

Sales and marketing

 

(28,217

)

(30,271

)

(4,879

)

(84,274

)

(92,967

)

(14,984

)

General and administrative

 

(27,193

)

(30,096

)

(4,850

)

(82,637

)

(90,270

)

(14,549

)

Total operating expenses

 

(57,811

)

(62,785

)

(10,119

)

(174,145

)

(190,484

)

(30,701

)

Operating income

 

65,743

 

67,843

 

10,934

 

167,913

 

185,473

 

29,892

 

Other expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

3,761

 

4,574

 

737

 

12,255

 

13,544

 

2,183

 

Interest expense

 

(21,866

)

(25,760

)

(4,152

)

(53,085

)

(75,864

)

(12,227

)

Exchange loss

 

(194

)

(147

)

(24

)

(249

)

(149

)

(24

)

Dividend income

 

1,189

 

1,148

 

186

 

9,911

 

2,344

 

378

 

Others

 

603

 

(537

)

(87

)

1,647

 

760

 

122

 

Total other expense, net

 

(16,507

)

(20,722

)

(3,340

)

(29,521

)

(59,365

)

(9,568

)

Income before income tax

 

49,236

 

47,121

 

7,594

 

138,392

 

126,108

 

20,324

 

Income tax expense

 

(14,489

)

(13,512

)

(2,178

)

(45,568

)

(35,663

)

(5,748

)

Net income

 

34,747

 

33,609

 

5,416

 

92,824

 

90,445

 

14,576

 

Net income attributable to non-controlling interests

 

(193

)

(225

)

(36

)

(460

)

(76

)

(12

)

Net income attributable to China Cord Blood Corporation’s shareholders

 

34,554

 

33,384

 

5,380

 

92,364

 

90,369

 

14,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

0.41

 

0.41

 

0.07

 

1.14

 

1.13

 

0.18

 

- Diluted

 

0.41

 

0.41

 

0.07

 

1.14

 

1.13

 

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

- Net effect of foreign currency translation, net of nil tax

 

2,391

 

1,840

 

297

 

11,985

 

3,282

 

529

 

- Net unrealized (loss)/gain in available-for-sale equity securities, net of nil tax

 

(19,504

)

(34,297

)

(5,528

)

64,054

 

(38,609

)

(6,223

)

Comprehensive income

 

17,634

 

1,152

 

185

 

168,863

 

55,118

 

8,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(193

)

(225

)

(36

)

(460

)

(76

)

(12

)

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

17,441

 

927

 

149

 

168,403

 

55,042

 

8,870

 

 

6



 

Other Events

 

On February 25, 2015, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and nine months ended December 31, 2014. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated February 25, 2015

 

7



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

CHINA CORD BLOOD CORPORATION

 

 

 

By:

/s/ Albert Chen

 

Name:

Albert Chen

 

Title:

Chief Financial Officer

 

Dated: February 25, 2015

 

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