6-K 1 a14-19405_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 2014

 

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                 Form 40-F

 

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                           No

 

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.

 



 

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, 2014 of the Company.

 



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and June 30, 2014

 

 

 

March 31,

 

June 30,

 

 

2014

 

2014

 

 

RMB

 

RMB

 

US$

 

 

(in thousands except share data)

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

1,882,901

 

1,989,506

 

320,702

Accounts receivable, less allowance for doubtful accounts

 

 

 

 

 

 

(March 31, 2014: RMB20,322; June 30, 2014: RMB22,145)

 

95,273

 

101,900

 

16,426

Inventories

 

31,583

 

29,008

 

4,677

Prepaid expenses and other receivables

 

37,010

 

27,339

 

4,407

Debt issuance costs

 

3,616

 

3,615

 

583

Deferred tax assets

 

7,664

 

7,948

 

1,281

Total current assets

 

2,058,047

 

2,159,316

 

348,076

Property, plant and equipment, net

 

626,632

 

618,553

 

99,709

Non-current prepayments

 

208,894

 

214,825

 

34,629

Non-current accounts receivable, less allowance for doubtful accounts

 

 

 

 

 

 

(March 31, 2014: RMB42,703; June 30, 2014: RMB43,722)

 

225,496

 

220,924

 

35,612

Inventories

 

48,385

 

51,256

 

8,262

Intangible assets, net

 

120,549

 

119,394

 

19,246

Available-for-sale equity securities

 

144,247

 

148,711

 

23,972

Other investment

 

189,129

 

189,129

 

30,487

Debt issuance costs

 

7,854

 

6,951

 

1,120

Deferred tax assets

 

1,789

 

1,893

 

305

Total assets

 

3,631,022

 

3,730,952

 

601,418

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Bank loan

 

60,000

 

60,000

 

9,672

Accounts payable

 

10,422

 

14,957

 

2,411

Accrued expenses and other payables

 

102,559

 

68,567

 

11,053

Deferred revenue

 

196,432

 

198,717

 

32,033

Amounts due to related parties

 

21,453

 

16,820

 

2,711

Income tax payable

 

2,571

 

1,525

 

246

Deferred tax liabilities

 

3,900

 

5,200

 

838

Total current liabilities

 

397,337

 

365,786

 

58,964

Convertible notes

 

777,753

 

787,988

 

127,021

Non-current deferred revenue

 

823,921

 

897,363

 

144,652

Other non-current liabilities

 

164,077

 

177,551

 

28,621

Deferred tax liabilities

 

27,938

 

27,639

 

4,455

Total liabilities

 

2,191,026

 

2,256,327

 

363,713

 



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and June 30, 2014 - (continued)

 

 

 

March 31,

 

June 30,

 

 

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 June 30, 2014, respectively

 

50

 

50

 

8

Additional paid-in capital

 

798,221

 

798,221

 

128,671

Treasury stock, at cost

 

 

 

 

 

 

(March 31 and June 30, 2014: 136,899 shares, respectively)

 

(2,815)

 

(2,815)

 

(454)

Accumulated other comprehensive income

 

84,263

 

89,298

 

14,395

Retained earnings

 

555,323

 

585,059

 

94,309

Total equity attributable to China Cord Blood Corporation

 

1,435,042

 

1,469,813

 

236,929

Non-controlling interests

 

4,954

 

4,812

 

776

Total equity

 

1,439,996

 

1,474,625

 

237,705

Total liabilities and equity

 

3,631,022

 

3,730,952

 

601,418

 



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months ended June 30, 2013 and 2014

 

 

 

Three months ended June 30,

 

 

2013

 

2014

 

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

(in thousands except share data)

 

 

 

 

 

 

 

Revenues

 

128,721

 

153,331

 

24,716

Direct costs

 

(24,492)

 

(29,776)

 

(4,800)

Gross profit

 

104,229

 

123,555

 

19,916

Operating expenses

 

 

 

 

 

 

Research and development

 

(2,523)

 

(2,499)

 

(403)

Sales and marketing

 

(28,424)

 

(31,743)

 

(5,117)

General and administrative

 

(27,402)

 

(29,146)

 

(4,698)

Total operating expenses

 

(58,349)

 

(63,388)

 

(10,218)

Operating income

 

45,880

 

60,167

 

9,698

Other expense, net

 

 

 

 

 

 

Interest income

 

4,182

 

4,266

 

688

Interest expense

 

(14,758)

 

(24,895)

 

(4,013)

Exchange (loss)/gain

 

(124)

 

180

 

29

Dividend income

 

8,722

 

1,196

 

193

Others

 

530

 

617

 

99

Total other expense, net

 

(1,448)

 

(18,636)

 

(3,004)

Income before income tax

 

44,432

 

41,531

 

6,694

Income tax expense

 

(11,373)

 

(11,937)

 

(1,924)

Net income

 

33,059

 

29,594

 

4,770

Net income attributable to non-controlling interests

 

(153)

 

142

 

23

Net income attributable to China Cord Blood Corporation’s shareholders

 

32,906

 

29,736

 

4,793

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

- Basic

 

0.40

 

0.37

 

0.06

- Diluted

 

0.40

 

0.37

 

0.06

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

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

 

6,805

 

529

 

85

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

 

24,338

 

4,506

 

726

Comprehensive income

 

64,202

 

34,629

 

5,581

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(153)

 

142

 

23

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

64,049

 

34,771

 

5,604

 



 

Other Events

 

On August 28, 2014, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months ended June 30, 2014. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated August 28, 2014

 



 

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 28, 2014