6-K 1 a15-17682_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 August 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): ¨

 

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): ¨

 

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; the non-binding proposal letter from Golden Meditech Holdings Limited and Nanjing Xinjiekou Department Store Co., Ltd.; 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 ended June 30, 2015 of the Company.

 

3



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and June 30, 2015

 

 

 

March 31,

 

June 30,

 

 

 

2015

 

2015

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

2,436,655

 

2,560,907

 

413,049

 

Trading securities

 

7,708

 

7,841

 

1,265

 

Accounts receivable, less allowance for doubtful accounts

(March 31, 2015: RMB28,624; June 30, 2015: RMB30,915 (US$4,986))

 

120,762

 

119,653

 

19,299

 

Inventories

 

23,803

 

25,564

 

4,123

 

Prepaid expenses and other receivables

 

19,508

 

15,162

 

2,446

 

Debt issuance costs

 

3,592

 

3,586

 

578

 

Deferred tax assets

 

10,270

 

11,088

 

1,788

 

Total current assets

 

2,622,298

 

2,743,801

 

442,548

 

Property, plant and equipment, net

 

603,167

 

596,161

 

96,155

 

Non-current deposits

 

207,258

 

208,360

 

33,606

 

Non-current accounts receivable, less allowance for doubtful accounts

(March 31, 2015: RMB55,211; June 30, 2015: RMB53,750 (US$8,669))

 

194,238

 

195,135

 

31,474

 

Inventories

 

58,224

 

59,947

 

9,669

 

Intangible assets, net

 

115,928

 

114,773

 

18,512

 

Available-for-sale equity securities

 

122,416

 

133,077

 

21,464

 

Other investment

 

189,129

 

189,129

 

30,505

 

Debt issuance costs

 

4,210

 

3,309

 

534

 

Deferred tax assets

 

2,618

 

2,172

 

350

 

Total assets

 

4,119,486

 

4,245,864

 

684,817

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Bank loan

 

60,000

 

60,000

 

9,677

 

Accounts payable

 

12,673

 

14,989

 

2,418

 

Accrued expenses and other payables

 

87,381

 

66,555

 

10,735

 

Deferred revenue

 

220,140

 

239,172

 

38,576

 

Amounts due to related parties

 

20,802

 

21,763

 

3,510

 

Income tax payable

 

10,081

 

10,844

 

1,749

 

Deferred tax liabilities

 

9,100

 

10,400

 

1,677

 

Total current liabilities

 

420,177

 

423,723

 

68,342

 

Convertible notes

 

815,851

 

826,069

 

133,237

 

Non-current deferred revenue

 

1,099,399

 

1,161,768

 

187,382

 

Other non-current liabilities

 

215,585

 

226,926

 

36,601

 

Deferred tax liabilities

 

25,261

 

25,156

 

4,057

 

Total liabilities

 

2,576,273

 

2,663,642

 

429,619

 

 

 

 

 

 

 

 

 

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 June 30, 2015, respectively

 

50

 

50

 

8

 

Additional paid-in capital

 

814,678

 

828,775

 

133,674

 

Treasury stock, at cost
(March 31 and June 30, 2015: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(454

)

Accumulated other comprehensive income

 

63,230

 

74,649

 

12,041

 

Retained earnings

 

662,615

 

676,166

 

109,059

 

Total equity attributable to China Cord Blood Corporation

 

1,537,758

 

1,576,825

 

254,328

 

Non-controlling interests

 

5,455

 

5,397

 

870

 

Total equity

 

1,543,213

 

1,582,222

 

255,198

 

Total liabilities and equity

 

4,119,486

 

4,245,864

 

684,817

 

 

4



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months ended June 30, 2014 and 2015

 

 

 

Three months ended June 30,

 

 

 

2014

 

2015

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

Revenues

 

153,331

 

165,363

 

26,672

 

Direct costs

 

(29,776

)

(36,573

)

(5,899

)

Gross profit

 

123,555

 

128,790

 

20,773

 

Operating expenses

 

 

 

 

 

 

 

Research and development

 

(2,499

)

(1,934

)

(312

)

Sales and marketing

 

(31,743

)

(37,209

)

(6,001

)

General and administrative

 

(29,146

)

(41,220

)

(6,648

)

Total operating expenses

 

(63,388

)

(80,363

)

(12,961

)

Operating income

 

60,167

 

48,427

 

7,812

 

Other expense, net

 

 

 

 

 

 

 

Interest income

 

4,266

 

4,710

 

760

 

Interest expense

 

(24,895

)

(25,883

)

(4,175

)

Exchange gain/(loss)

 

180

 

(41

)

(7

)

Dividend income

 

1,196

 

1,180

 

190

 

Others

 

617

 

89

 

14

 

Total other expense, net

 

(18,636

)

(19,945

)

(3,218

)

Income before income tax

 

41,531

 

28,482

 

4,594

 

Income tax expense

 

(11,937

)

(14,989

)

(2,418

)

Net income

 

29,594

 

13,493

 

2,176

 

Net income attributable to non-controlling interests

 

142

 

58

 

9

 

Net income attributable to China Cord Blood Corporation’s shareholders

 

29,736

 

13,551

 

2,185

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

- Basic

 

0.37

 

0.19

 

0.03

 

- Diluted

 

0.37

 

0.19

 

0.03

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

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

 

529

 

559

 

90

 

- Net unrealized gain in available-for-sale equity securities, net of nil tax

 

4,506

 

10,860

 

1,752

 

Comprehensive income

 

34,629

 

24,912

 

4,018

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

142

 

58

 

9

 

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

34,771

 

24,970

 

4,027

 

 

5



 

Other Events

 

On August 19, 2015, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months ended June 30, 2015. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated August 19, 2015

 

6



 

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: August 19, 2015

 

7