6-K 1 a14-24993_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 November 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 and six months ended September 30, 2014 of the Company.

 



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and September 30, 2014

 

 

 

March 31,

 

September 30,

 

 

 

2014

 

2014

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands)

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

1,882,901

 

2,156,527

 

351,340

 

Accounts receivable, less allowance for doubtful accounts

 

 

 

 

 

 

 

(March 31, 2014: RMB20,322; September 30, 2014: RMB23,691)

 

95,273

 

110,412

 

17,988

 

Inventories

 

31,583

 

25,611

 

4,172

 

Prepaid expenses and other receivables

 

37,010

 

16,712

 

2,723

 

Debt issuance costs

 

3,616

 

3,608

 

588

 

Deferred tax assets

 

7,664

 

8,578

 

1,398

 

Total current assets

 

2,058,047

 

2,321,448

 

378,209

 

Property, plant and equipment, net

 

626,632

 

616,545

 

100,446

 

Non-current prepayments

 

208,894

 

208,429

 

33,957

 

Non-current accounts receivable, less allowance for doubtful accounts

 

 

 

 

 

 

 

(March 31, 2014: RMB42,703; September 30, 2014: RMB48,300)

 

225,496

 

211,805

 

34,507

 

Inventories

 

48,385

 

54,062

 

8,808

 

Intangible assets, net

 

120,549

 

118,239

 

19,263

 

Available-for-sale equity securities

 

144,247

 

139,637

 

22,750

 

Other investment

 

189,129

 

189,129

 

30,813

 

Debt issuance costs

 

7,854

 

6,028

 

982

 

Deferred tax assets

 

1,789

 

2,648

 

431

 

Total assets

 

3,631,022

 

3,867,970

 

630,166

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Bank loan

 

60,000

 

60,000

 

9,775

 

Accounts payable

 

10,422

 

15,624

 

2,545

 

Accrued expenses and other payables

 

102,559

 

77,625

 

12,647

 

Deferred revenue

 

196,432

 

208,151

 

33,912

 

Amounts due to related parties

 

21,453

 

22,245

 

3,624

 

Income tax payable

 

2,571

 

7,202

 

1,173

 

Deferred tax liabilities

 

3,900

 

6,500

 

1,059

 

Total current liabilities

 

397,337

 

397,347

 

64,735

 

Convertible notes

 

777,753

 

797,227

 

129,884

 

Non-current deferred revenue

 

823,921

 

962,574

 

156,822

 

Other non-current liabilities

 

164,077

 

189,529

 

30,878

 

Deferred tax liabilities

 

27,938

 

27,331

 

4,453

 

Total liabilities

 

2,191,026

 

2,374,008

 

386,772

 

 



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

 

 

March 31,

 

September 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 September 30, 2014, respectively

 

50

 

50

 

8

 

Additional paid-in capital

 

798,221

 

798,221

 

130,046

 

Treasury stock, at cost

 

 

 

 

 

 

 

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

 

(2,815)

 

(2,815)

 

(459)

 

Accumulated other comprehensive income

 

84,263

 

81,393

 

13,260

 

Retained earnings

 

555,323

 

612,308

 

99,756

 

Total equity attributable to China Cord Blood Corporation

 

1,435,042

 

1,489,157

 

242,611

 

Non-controlling interests

 

4,954

 

4,805

 

783

 

Total equity

 

1,439,996

 

1,493,962

 

243,394

 

Total liabilities and equity

 

3,631,022

 

3,867,970

 

630,166

 

 



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Six Months ended September 30, 2013 and 2014

 

 

 

Three months ended September 30,

 

Six months ended September 30,

 

 

2013

 

2014

 

2013

 

2014

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

141,635

 

152,122

 

24,784

 

270,356

 

305,453

 

49,764

Direct costs

 

(27,360)

 

(30,348)

 

(4,944)

 

(51,852)

 

(60,124)

 

(9,795)

Gross profit

 

114,275

 

121,774

 

19,840

 

218,504

 

245,329

 

39,969

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(2,310)

 

(2,330)

 

(380)

 

(4,833)

 

(4,829)

 

(787)

Sales and marketing

 

(27,633)

 

(30,953)

 

(5,043)

 

(56,057)

 

(62,696)

 

(10,214)

General and administrative

 

(28,042)

 

(31,028)

 

(5,055)

 

(55,444)

 

(60,174)

 

(9,804)

Total operating expenses

 

(57,985)

 

(64,311)

 

(10,478)

 

(116,334)

 

(127,699)

 

(20,805)

Operating income

 

56,290

 

57,463

 

9,362

 

102,170

 

117,630

 

19,164

Other expense, net

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

4,312

 

4,704

 

766

 

8,494

 

8,970

 

1,461

Interest expense

 

(16,461)

 

(25,209)

 

(4,107)

 

(31,219)

 

(50,104)

 

(8,163)

Exchange gain/(loss)

 

69

 

(182)

 

(30)

 

(55)

 

(2)

 

Dividend income

 

 

 

 

8,722

 

1,196

 

195

Others

 

514

 

680

 

111

 

1,044

 

1,297

 

211

Total other expense, net

 

(11,566)

 

(20,007)

 

(3,260)

 

(13,014)

 

(38,643)

 

(6,296)

Income before income tax

 

44,724

 

37,456

 

6,102

 

89,156

 

78,987

 

12,868

Income tax expense

 

(19,706)

 

(10,214)

 

(1,664)

 

(31,079)

 

(22,151)

 

(3,609)

Net income

 

25,018

 

27,242

 

4,438

 

58,077

 

56,836

 

9,259

Net income attributable to non-controlling interests

 

(114)

 

7

 

1

 

(267)

 

149

 

24

Net income attributable to China Cord Blood Corporation’s shareholders

 

24,904

 

27,249

 

4,439

 

57,810

 

56,985

 

9,283

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

0.33

 

0.35

 

0.06

 

0.73

 

0.72

 

0.12

- Diluted

 

0.33

 

0.35

 

0.06

 

0.73

 

0.72

 

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

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

 

2,789

 

913

 

149

 

9,594

 

1,442

 

235

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

 

59,220

 

(8,818)

 

(1,437)

 

83,558

 

(4,312)

 

(703)

Comprehensive income

 

87,027

 

19,337

 

3,150

 

151,229

 

53,966

 

8,791

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(114)

 

7

 

1

 

(267)

 

149

 

24

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

86,913

 

19,344

 

3,151

 

150,962

 

54,115

 

8,815

 



 

Other Events

 

On November 25, 2014, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and six months ended September 30, 2014. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.                                                                                                                  Description

 

99.1                                                                                                                                                                 Press Release, dated November 25, 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: November 25, 2014