6-K 1 a16-16848_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 2016

 

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 the recent relaxation of 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 letters from Golden Meditech Holdings Limited and Nanjing Xinjiekou Department Store Co., Ltd. and the proposed transactions between the foregoing companies; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission in the United States.

 

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Results of Operations and Financial Condition

 

Following this cover page are the unaudited condensed consolidated financial results for the three months ended June 30, 2016 of the Company.

 

3



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and June 30, 2016

 

 

 

March 31,

 

June 30,

 

 

 

2016

 

2016

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

3,008,422

 

3,070,419

 

462,002

 

Accounts receivable, less allowance for doubtful accounts (March 31, 2016: RMB38,261; June 30, 2016: RMB39,898 (US$6,003))

 

124,645

 

120,720

 

18,165

 

Inventories

 

28,326

 

26,185

 

3,940

 

Prepaid expenses and other receivables

 

24,412

 

15,662

 

2,356

 

Deferred tax assets

 

14,056

 

14,793

 

2,226

 

Total current assets

 

3,199,861

 

3,247,779

 

488,689

 

Property, plant and equipment, net

 

574,567

 

569,128

 

85,636

 

Non-current prepayments

 

218,379

 

232,755

 

35,022

 

Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2016: RMB62,633; June 30, 2016: RMB63,856 (US$9,608))

 

165,011

 

162,378

 

24,433

 

Inventories

 

64,322

 

66,541

 

10,012

 

Intangible assets, net

 

111,307

 

110,152

 

16,574

 

Available-for-sale equity securities

 

162,734

 

227,783

 

34,274

 

Other investment

 

189,129

 

189,129

 

28,458

 

Deferred tax assets

 

2,617

 

2,398

 

361

 

Total assets

 

4,687,927

 

4,808,043

 

723,459

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Bank loan

 

60,000

 

60,000

 

9,028

 

Accounts payable

 

13,248

 

13,345

 

2,008

 

Accrued expenses and other payables

 

61,304

 

65,335

 

9,831

 

Deferred revenue

 

257,692

 

273,148

 

41,100

 

Amounts due to related parties

 

53,255

 

28,080

 

4,225

 

Income tax payable

 

8,524

 

9,842

 

1,481

 

Deferred tax liabilities

 

14,300

 

15,600

 

2,347

 

Total current liabilities

 

468,323

 

465,350

 

70,020

 

Convertible notes, net

 

906,222

 

948,208

 

142,676

 

Non-current deferred revenue

 

1,321,239

 

1,373,876

 

206,725

 

Other non-current liabilities

 

255,932

 

266,443

 

40,091

 

Deferred tax liabilities

 

22,786

 

22,689

 

3,414

 

Total liabilities

 

2,974,502

 

3,076,566

 

462,926

 

 

 

 

 

 

 

 

 

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 31and June 30, 2016, respectively

 

50

 

50

 

8

 

Additional paid-in capital

 

873,654

 

888,975

 

133,763

 

Treasury stock, at cost (March 31 and June 30, 2016: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(424

)

Accumulated other comprehensive income

 

84,779

 

71,349

 

10,735

 

Retained earnings

 

753,585

 

769,307

 

115,757

 

Total equity attributable to China Cord Blood Corporation

 

1,709,253

 

1,726,866

 

259,839

 

Non-controlling interests

 

4,172

 

4,611

 

694

 

Total equity

 

1,713,425

 

1,731,477

 

260,533

 

Total liabilities and equity

 

4,687,927

 

4,808,043

 

723,459

 

 

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CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months ended June 30, 2015 and 2016

 

 

 

Three months ended June 30,

 

 

 

2015

 

2016

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

Revenues

 

165,363

 

172,952

 

26,024

 

Direct costs

 

(36,573

)

(37,433

)

(5,632

)

Gross profit

 

128,790

 

135,519

 

20,392

 

Operating expenses

 

 

 

 

 

 

 

Research and development

 

(1,934

)

(1,949

)

(293

)

Sales and marketing

 

(37,209

)

(38,192

)

(5,747

)

General and administrative

 

(41,220

)

(43,243

)

(6,507

)

Total operating expenses

 

(80,363

)

(83,384

)

(12,547

)

Operating income

 

48,427

 

52,135

 

7,845

 

Other expense, net

 

 

 

 

 

 

 

Interest income

 

4,710

 

4,277

 

644

 

Interest expense

 

(25,883

)

(28,833

)

(4,338

)

Foreign currency exchange (losses)/gains

 

(41

)

135

 

20

 

Dividend income

 

1,180

 

 

 

Others

 

89

 

152

 

23

 

Total other expense, net

 

(19,945

)

(24,269

)

(3,651

)

Income before income tax

 

28,482

 

27,866

 

4,194

 

Income tax expense

 

(14,989

)

(11,676

)

(1,757

)

Net income

 

13,493

 

16,190

 

2,437

 

Net loss/(income) attributable to non-controlling interests

 

58

 

(468

)

(70

)

Net income attributable to China Cord Blood Corporation’s shareholders

 

13,551

 

15,722

 

2,367

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

- Basic

 

0.19

 

0.22

 

0.03

 

- Diluted

 

0.19

 

0.22

 

0.03

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss), net of nil income taxes

 

 

 

 

 

 

 

- Foreign currency translation adjustments

 

559

 

(6,960

)

(1,047

)

- Unrealized holding gain/(loss) in available-for-sale equity securities

 

10,860

 

(6,470

)

(974

)

Total other comprehensive income/(loss)

 

11,419

 

(13,430

)

(2,021

)

Comprehensive income

 

24,912

 

2,760

 

416

 

 

 

 

 

 

 

 

 

Comprehensive loss/(income) attributable to non-controlling interests

 

58

 

(468

)

(70

)

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

24,970

 

2,292

 

346

 

 

5



 

Other Events

 

On August 22, 2016, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months ended June 30, 2016. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated August 22, 2016

 

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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 22, 2016

 

 

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