SP 15D2 1 v156581_sp15d2.htm Unassociated Document
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 (Mark one)
FORM 20-F
Special Report
 
¨
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

¨
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
   
 
For the fiscal year ended ________________.

OR

¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

o
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of event requiring this shell company report:
   
 
For the transition period from __________ to ___________
   

Commission file number   333-155579-99
 
China Cord Blood Corporation
________________________________
(Exact name of the Registrant as specified in its charter)

Cayman Islands
_____________________________
(Jurisdiction of incorporation or organization)

48th Floor, Bank of China Tower
1 Garden Road
Central, Hong Kong S.A.R.
___________________________
(Address of principal executive offices)
 
Albert Chen, +852 3605 8180, albert.chen@chinacordbloodcorp.com, 48th Floor, Bank of China Tower, 1 Garden Road, Central, Hong Kong S.A.R.
(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
 
Title of Each Class
Name of each exchange on which registered 
 
None

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None
  
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

UNITS, EACH CONSISTING OF ONE ORDINARY SHARE, $0.0001 PAR VALUE, AND TWO WARRANTS
ORDINARY SHARES, $0.0001 PAR VALUE
WARRANTS TO PURCHASE ONE ORDINARY SHARE, $0.0001 PAR VALUE
 
On August 25 , 2009, the registrant had 59,286,506 ordinary shares outstanding.
 


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
 
 
  o Yes
  x No
 
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 
 
  o Yes
o No
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
 
o Yes 
x No
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
 
 
o Yes 
o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.
 
o  Large Accelerated filer
o  Accelerated filer
x  Non-accelerated filer
                               
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

x  US GAAP
o  International Financial Reporting Standards as issued by the International Accounting Standards Board
o  Other
 
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.
 
 
  o Item 17 
o Item 18
 
 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
 
  o Yes 
    o No
 
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
 
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of the securities under a plan confirmed by a court.
 
 
  o Yes 
  o  No
 

 
EXPLANATORY NOTE

The Registrant is filing this report on Form 20-F as a special report pursuant to Rule 15d-2 under the Securities Exchange Act of 1934, as amended. The Registrant’s registration statement on Form S-4 (Registration No. 333-155579), declared effective by the Securities and Exchange Commission on June 17, 2009, did not contain certified financial statements for the fiscal year ended March 31, 2009 for the predecessor of the Registrant for financial reporting purposes. In accordance with Rule 15d-2, this special report is filed under cover of Form 20-F and contains only financial statements for the fiscal year ended March 31, 2009 for the predecessor of the Registrant for financial reporting purposes.
 
1

 
TABLE OF CONTENTS
 
 
 
  Page
 
PART III
     
Item 17
Financial Statements
3
     
Item 18.
Financial Statements
3
     
Signatures
 
4
 
2

 
PART III

ITEM 17. FINANCIAL STATEMENTS

See Item 18.

 
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
CHINA CORD BLOOD SERVICES CORPORATION

   
Page
Report of Independent Registered Public Accounting Firm
 
  F-1
Consolidated Balance Sheets as of March 31, 2008 and 2009
 
  F-2
Consolidated Statements of Operations and Comprehensive Income for the Years Ended March 31, 2007, 2008 and 2009
 
  F-3
Consolidated Statements of Shareholders’ Equity for the Years Ended March 31, 2007, 2008 and 2009
 
  F-4
Consolidated Statements of Cash Flows for the Years Ended March 31, 2007, 2008 and 2009
 
  F-5
Notes to the Consolidated Financial Statements for the Years Ended March 31, 2007, 2008 and 2009
 
  F-6
  
3

 
SIGNATURES
 
The Registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this  special report on its behalf.
 
   
CHINA CORD BLOOD CORPORATION
     
By: /s/ Ting Zheng
 
Name: Ting Zheng
Title: Chief Executive Officer
Date: August 26, 2009
 
 
4


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of
China Cord Blood Services Corporation

We have audited the accompanying consolidated balance sheets of China Cord Blood Services Corporation (the “Company”) and subsidiaries (collectively the “Group”) as of March 31, 2008 and 2009, and the related consolidated statements of operations and comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended March 31, 2009, all expressed in Renminbi. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of China Cord Blood Services Corporation and subsidiaries as of March 31, 2008 and 2009, and the results of their operations and their cash flows for each of the years in the three-year period ended March 31, 2009, in conformity with U.S. generally accepted accounting principles.
 
As discussed in Note 2(k) to the consolidated financial statements, the Company established vendor-specific objective evidence of fair value for the undelivered cord blood storage services during the year ended March 31, 2008, and began to account for cord blood processing services and storage services as two separate units of accounting under the provisions of Emerging Issues Task Force Issue No. 00-21, Revenue Arrangements with Multiple Deliverables during that year.

The accompanying consolidated financial statements as of and for the year ended March 31, 2009 have been translated into United States dollars solely for the convenience of the reader. We have audited the translation and, in our opinion, such consolidated financial statements expressed in Renminbi have been translated into United States dollars on the basis set forth in Note 2(b) to the consolidated financial statements.

/s/ KPMG
 
Hong Kong, China
August 25, 2009

 
F-1

 

CHINA CORD BLOOD SERVICES CORPORATION
 
CONSOLIDATED BALANCE SHEETS
As of March 31, 2008 and 2009

         
March 31,
 
   
Note
   
2008
   
2009
   
2009
 
   
 
   
RMB
   
RMB
   
US$
 
ASSETS
   
  
     
  
     
  
     
  
 
                                 
Current assets
   
  
     
  
     
  
     
  
 
Cash and cash equivalents
   
  
     
228,786,970
     
161,405,557
     
23,621,823
 
Accounts receivable, less allowance for doubtful accounts; (March 31, 2008: RMB1,239,239; March 31, 2009: RMB6,169,621 (US$902,929))
   
3
     
23,334,221
     
49,763,264
     
7,282,891
 
Inventories
   
4
     
7,422,423
     
6,500,630
     
951,372
 
Prepaid expenses and other receivables
   
5
     
7,823,939
     
7,978,176
     
1,167,612
 
Deferred tax assets
   
18
     
1,006,111
     
1,846,406
     
270,223
 
Total current assets
   
  
     
268,373,664
     
227,494,033
     
33,293,921
 
Property, plant and equipment, net
   
6
     
201,246,144
     
236,740,317
     
34,647,123
 
Non-current prepayments
   
7
     
15,727,824
     
27,183,663
     
3,978,349
 
Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2008: RMB318,000; March 31, 2009: RMB2,222,550 (US$325,272))
   
3
     
25,383,000
     
91,760,839
     
13,429,267
 
Inventories
   
4
     
25,963,087
     
26,068,435
     
3,815,135
 
Intangible asset, net
   
8
     
28,238,991
     
27,268,023
     
3,990,695
 
Available-for-sale equity securities
   
9
     
37,810,603
     
26,242,403
     
3,840,595
 
Structured deposit
   
10
     
33,571,998
     
     
 
Deferred offering and reverse recapitalization costs
   
11
     
7,776,388
     
33,633,324
     
4,922,262
 
Total assets
           
644,091,699
     
696,391,037
     
101,917,347
 
                                 
LIABILITIES
   
  
     
  
     
  
     
  
 
                                 
Current liabilities
   
  
     
  
     
  
     
  
 
Accounts payable
   
  
     
3,695,845
     
5,128,190
     
750,514
 
Accrued expenses and other payables
   
12
     
11,925,846
     
19,269,379
     
2,820,088
 
Deferred revenue
   
13
     
14,758,030
     
18,350,563
     
2,685,619
 
Income tax payable
           
1,992,360
     
4,320,945
     
632,374
 
Total current liabilities
   
  
     
32,372,081
     
47,069,077
     
6,888,595
 
Deferred revenue
   
13
     
72,178,558
     
74,231,572
     
10,863,846
 
Other non-current liabilities
   
  
     
13,722,533
     
13,550,883
     
1,983,182
 
Deferred tax liabilities
   
18
     
4,847,660
     
4,016,644
     
587,839
 
Total liabilities
           
123,120,832
     
138,868,176
     
20,323,462
 
Commitments and contingencies
   
25
     
  
     
  
     
  
 
Minority interests
           
1,530,749
     
5,404,172
     
790,905
 
Redeemable ordinary shares – US$0.01 par value, 40,898,000 shares issued and outstanding as of March 31, 2008 and 2009 (redemption value of US$49,267,977 as of March 31, 2008 and redemption value of US$51,088,745 as of March 31, 2009)
   
14
     
361,681,667
     
386,576,646
     
56,575,780
 
                                 
Shareholders’ equity
   
  
     
  
     
  
     
  
 
Ordinary shares – US$0.01 par value, 1,000,000,000 authorized, 121,000,000 shares issued and outstanding as of March 31, 2008 and 2009
   
15
(a) 
   
9,578,663
     
9,578,663
     
1,401,844
 
Additional paid-in capital
   
  
     
131,200,508
     
131,200,508
     
19,201,291
 
Accumulated other comprehensive loss
   
  
     
(31,303,031
)      
(19,319,035
   
(2,827,355
)  
Retained earnings
           
48,282,311
     
44,081,907
     
6,451,420
 
Total shareholders’ equity
           
157,758,451
     
165,542,043
     
24,227,200
 
Total liabilities, minority interests, redeemable ordinary shares and shareholders’ equity
           
644,091,699
     
696,391,037
     
101,917,347
 

See accompanying notes to the consolidated financial statements.

 
F-2

 

CHINA CORD BLOOD SERVICES CORPORATION
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
For the years ended March 31, 2007, 2008 and 2009

         
Year ended March 31,
 
   
Note
   
2007
   
2008
   
2009
   
2009
 
   
 
   
RMB
   
RMB
   
RMB
   
US$
 
                                         
Revenues
   
16
     
12,721,628
     
233,081,230
     
194,536,631
     
28,470,582
 
Direct costs(a)
   
17
     
(7,634,545
   
(60,735,358
   
(49,170,216
   
(7,196,098
Gross profit
           
5,087,083
     
172,345,872
     
145,366,415
     
21,274,484
 
Operating expenses
   
  
     
  
     
  
     
  
     
  
 
Research and development
   
  
     
(1,500,000
   
     
     
 
Sales and marketing
   
17
     
(11,697,797
   
(26,580,131
   
(28,868,297
   
(4,224,897
General and administrative(a)
   
17
     
(8,926,872
   
(20,362,843
 )    
(31,301,202
   
(4,580,954
Total operating expenses
           
(22,124,669
   
(46,942,974
   
(60,169,499
   
(8,805,851
Operating (loss)/income
           
(17,037,586
   
125,402,898
     
85,196,916
     
12,468,633
 
Other income/(expense), net
   
  
     
  
     
  
     
  
     
  
 
Interest income
   
  
     
2,793,262
     
7,414,371
     
3,638,036
     
532,429
 
Exchange gain/(loss)
   
  
     
1,121,562
     
(2,864,939
   
(350,933
   
(51,359
Write-off of deferred offering costs
   
11
     
     
     
(9,473,161
   
(1,386,404
Impairment loss on available-for-sale equity securities
   
9
     
     
     
(37,426,048
   
(5,477,330
Others
           
184,637
     
5,749,596
     
713,545
     
104,428
 
Total other income/(expense), net
           
4,099,461
     
10,299,028
     
(42,898,561
   
(6,278,236
                                         
(Loss)/income before income tax and minority interests
   
  
     
(12,938,125
   
135,701,926
     
42,298,355
     
6,190,397
 
Income tax benefit/(expense)
   
18
     
3,360,603
     
(17,807,566
   
(17,854,161
   
(2,612,970
(Loss)/income before minority interests
   
  
     
(9,577,522
   
117,894,360
     
24,444,194
     
3,577,427
 
Minority interests
           
     
(884,128
   
(3,749,619
   
(548,760
Net (loss)/income
           
(9,577,522
   
117,010,232
     
20,694,575
     
3,028,667
 
Other comprehensive (loss)/income
   
  
     
  
     
  
     
  
     
  
 
Net unrealized loss in available-for-sale equity securities, net of nil tax:
   
  
     
  
     
  
     
  
     
  
 
– Net unrealized loss arising during the year
   
  
     
     
(10,561,906
   
(21,782,651
   
(3,187,907
– Re-classification adjustment for loss recognized in net income
           
     
     
37,426,048
     
5,477,330
 
                    (10,561,906     15,643,397       2,289,423  
Foreign currency translation adjustments, net of nil tax
           
(2,886,061
   
(17,856,811
   
(3,659,401
   
(535,556
               (2,886,061     (28,418,717     11,983,996       1,753,867  
Total comprehensive (loss)/income
           
(12,463,583
   
88,591,515
     
32,678,571
     
4,782,534
 
Net (loss)/income per share:
   
20
     
  
     
  
     
  
     
  
 
Attributable to ordinary shares
   
  
     
  
     
  
     
  
     
  
 
– Basic
   
  
     
(0.11
   
0.57
     
(0.03
   
(0.00
– Diluted
           
(0.11
   
0.55
     
(0.03
   
(0.00
Attributable to redeemable ordinary shares
   
  
     
  
     
  
     
  
     
  
 
– Basic
   
  
     
0.38
     
1.24
     
0.58
     
0.09
 
– Diluted
           
0.38
     
1.22
     
0.58
     
0.09
 
 
(a)  Includes the following expenses resulting from transactions with related parties (see note 21):

   
Year ended March 31,
 
   
2007
   
2008
   
2009
   
2009
 
   
RMB
   
RMB
   
RMB
   
US$
 
Direct costs
   
  
     
  
     
  
     
  
 
– rental expenses
   
(1,670,400
   
(1,670,400
   
(1,670,400
   
(244,464
General and administrative expenses
   
  
     
  
     
  
     
  
 
– rental expenses
   
(417,600
   
(417,600
   
(417,600
   
(61,116
)  

See accompanying notes to the consolidated financial statements.

 
F-3

 
 
CHINA CORD BLOOD SERVICES CORPORATION
  
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
For the years ended March 31, 2007, 2008 and 2009

                         
Accumulated
   
(Accumulated
       
       
Ordinary share capital
   
Additional
   
other
   
losses)/
   
Total
 
       
No. of
         
paid-in
   
comprehensive
   
retained
   
shareholders’