6-K 1 a15-13440_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 June 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): 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 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 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 preliminary unaudited condensed consolidated financial results for the three months and year ended March 31, 2015 of the Company.

 

3



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2014 and 2015

 

 

 

March 31,

 

March 31,

 

 

 

2014

 

2015

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

1,882,901

 

2,436,655

 

393,072

 

Trading securities

 

 

7,708

 

1,243

 

Accounts receivable, less allowance for doubtful accounts

(March 31, 2014: RMB20,322; March 31, 2015: RMB28,624 (US$4,618))

 

95,273

 

120,762

 

19,480

 

Inventories

 

31,583

 

23,803

 

3,840

 

Prepaid expenses and other receivables

 

37,010

 

19,508

 

3,147

 

Debt issuance costs

 

3,616

 

3,592

 

579

 

Deferred tax assets

 

7,664

 

10,270

 

1,657

 

Total current assets

 

2,058,047

 

2,622,298

 

423,018

 

Property, plant and equipment, net

 

626,632

 

603,167

 

97,301

 

Non-current prepayments

 

208,894

 

207,258

 

33,434

 

Non-current accounts receivable, less allowance for doubtful accounts

(March 31, 2014: RMB42,703; March 31, 2015: RMB55,211 (US$8,906))

 

225,496

 

194,238

 

31,334

 

Inventories

 

48,385

 

58,224

 

9,392

 

Intangible assets, net

 

120,549

 

115,928

 

18,701

 

Available-for-sale equity securities

 

144,247

 

122,416

 

19,748

 

Other investment

 

189,129

 

189,129

 

30,510

 

Debt issuance costs

 

7,854

 

4,210

 

679

 

Deferred tax assets

 

1,789

 

2,618

 

422

 

Total assets

 

3,631,022

 

4,119,486

 

664,539

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Bank loan

 

60,000

 

60,000

 

9,679

 

Accounts payable

 

10,422

 

12,673

 

2,044

 

Accrued expenses and other payables

 

102,559

 

87,381

 

14,097

 

Deferred revenue

 

196,432

 

220,140

 

35,512

 

Amounts due to related parties

 

21,453

 

20,802

 

3,355

 

Income tax payable

 

2,571

 

10,081

 

1,626

 

Deferred tax liabilities

 

3,900

 

9,100

 

1,468

 

Total current liabilities

 

397,337

 

420,177

 

67,781

 

Convertible notes

 

777,753

 

815,851

 

131,610

 

Non-current deferred revenue

 

823,921

 

1,099,399

 

177,351

 

Other non-current liabilities

 

164,077

 

215,585

 

34,777

 

Deferred tax liabilities

 

27,938

 

25,261

 

4,075

 

Total liabilities

 

2,191,026

 

2,576,273

 

415,594

 

 

 

 

 

 

 

 

 

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, 2014 and 2015, respectively

 

50

 

50

 

8

 

Additional paid-in capital

 

798,221

 

814,678

 

131,420

 

Treasury stock, at cost (March 31, 2014 and 2015: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(454

)

Accumulated other comprehensive income

 

84,263

 

63,230

 

10,200

 

Retained earnings

 

555,323

 

662,615

 

106,891

 

Total equity attributable to China Cord Blood Corporation

 

1,435,042

 

1,537,758

 

248,065

 

Non-controlling interests

 

4,954

 

5,455

 

880

 

Total equity

 

1,439,996

 

1,543,213

 

248,945

 

Total liabilities and equity

 

3,631,022

 

4,119,486

 

664,539

 

 

4



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Year ended March 31, 2014 and 2015

 

 

 

Three months ended March 31,

 

Year ended March 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

151,915

 

162,994

 

26,294

 

572,857

 

635,122

 

102,456

 

Direct costs

 

(27,341

)

(34,440

)

(5,556

)

(106,225

)

(130,611

)

(21,070

)

Gross profit

 

124,574

 

128,554

 

20,738

 

466,632

 

504,511

 

81,386

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(2,539

)

(2,660

)

(429

)

(9,773

)

(9,907

)

(1,598

)

Sales and marketing

 

(28,415

)

(34,960

)

(5,640

)

(112,689

)

(127,927

)

(20,637

)

General and administrative

 

(29,607

)

(41,411

)

(6,680

)

(112,244

)

(131,681

)

(21,242

)

Total operating expenses

 

(60,561

)

(79,031

)

(12,749

)

(234,706

)

(269,515

)

(43,477

)

Operating income

 

64,013

 

49,523

 

7,989

 

231,926

 

234,996

 

37,909

 

Other expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

4,615

 

4,708

 

759

 

16,870

 

18,252

 

2,944

 

Interest expense

 

(16,990

)

(25,238

)

(4,071

)

(70,075

)

(101,102

)

(16,309

)

Exchange gain/(loss)

 

329

 

(82

)

(13

)

80

 

(231

)

(37

)

Dividend income

 

 

 

 

9,911

 

2,344

 

378

 

Others

 

565

 

101

 

16

 

2,212

 

861

 

139

 

Total other expense, net

 

(11,481

)

(20,511

)

(3,309

)

(41,002

)

(79,876

)

(12,885

)

Income before income tax

 

52,532

 

29,012

 

4,680

 

190,924

 

155,120

 

25,024

 

Income tax expense

 

(12,830

)

(11,664

)

(1,882

)

(58,398

)

(47,327

)

(7,635

)

Net income

 

39,702

 

17,348

 

2,798

 

132,526

 

107,793

 

17,389

 

Net income attributable to non-controlling interests

 

(163

)

(425

)

(69

)

(623

)

(501

)

(81

)

Net income attributable to China Cord Blood Corporation’s shareholders

 

39,539

 

16,923

 

2,729

 

131,903

 

107,292

 

17,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

0.46

 

0.23

 

0.04

 

1.60

 

1.36

 

0.22

 

- Diluted

 

0.46

 

0.23

 

0.04

 

1.60

 

1.36

 

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(3,686

)

1,360

 

219

 

8,299

 

4,642

 

749

 

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

 

(6,346

)

12,934

 

2,086

 

57,708

 

(25,675

)

(4,142

)

Comprehensive income

 

29,670

 

31,642

 

5,103

 

198,533

 

86,760

 

13,996

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(163

)

(425

)

(69

)

(623

)

(501

)

(81

)

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

29,507

 

31,217

 

5,034

 

197,910

 

86,259

 

13,915

 

 

5



 

Other Events

 

On June 18, 2015, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and year ended March 31, 2015. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated June 18, 2015

 

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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: June 18, 2015

 

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