6-K 1 a15-23604_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 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 the October 2015 revision 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 letters from Golden Meditech Holdings Limited and Nanjing Xinjiekou Department Store Co., Ltd.; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission in the United States.

 

2



 

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, 2015 of the Company.

 

3



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and September 30, 2015

 

 

 

March 31,

 

September 30,

 

 

 

2015

 

2015

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

2,436,655

 

2,671,772

 

420,382

 

Trading securities

 

7,708

 

7,861

 

1,237

 

Accounts receivable, less allowance for doubtful accounts
(March 31, 2015: RMB28,624; September 30, 2015: RMB33,073 (US$5,204))

 

120,762

 

124,978

 

19,664

 

Inventories

 

23,803

 

29,126

 

4,583

 

Prepaid expenses and other receivables

 

19,508

 

17,773

 

2,797

 

Debt issuance costs

 

3,592

 

3,737

 

588

 

Deferred tax assets

 

10,270

 

11,874

 

1,868

 

Total current assets

 

2,622,298

 

2,867,121

 

451,119

 

Property, plant and equipment, net

 

603,167

 

590,061

 

92,841

 

Non-current deposits

 

207,258

 

215,601

 

33,923

 

Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2015: RMB55,211; September 30, 2015: RMB56,422 (US$8,878))

 

194,238

 

182,265

 

28,677

 

Inventories

 

58,224

 

61,375

 

9,657

 

Intangible assets, net

 

115,928

 

113,618

 

17,877

 

Available-for-sale equity securities

 

122,416

 

146,016

 

22,974

 

Other investment

 

189,129

 

189,129

 

29,758

 

Debt issuance costs

 

4,210

 

2,507

 

394

 

Deferred tax assets

 

2,618

 

2,212

 

348

 

Total assets

 

4,119,486

 

4,369,905

 

687,568

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Bank loan

 

60,000

 

 

 

Accounts payable

 

12,673

 

15,987

 

2,515

 

Accrued expenses and other payables

 

87,381

 

62,447

 

9,826

 

Deferred revenue

 

220,140

 

247,837

 

38,995

 

Amounts due to related parties

 

20,802

 

45,428

 

7,148

 

Income tax payable

 

10,081

 

11,765

 

1,851

 

Deferred tax liabilities

 

9,100

 

11,700

 

1,841

 

Total current liabilities

 

420,177

 

395,164

 

62,176

 

Convertible notes

 

815,851

 

873,181

 

137,388

 

Non-current deferred revenue

 

1,099,399

 

1,223,559

 

192,517

 

Other non-current liabilities

 

215,585

 

237,905

 

37,432

 

Deferred tax liabilities

 

25,261

 

24,356

 

3,832

 

Total liabilities

 

2,576,273

 

2,754,165

 

433,345

 

 

 

 

 

 

 

 

 

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, 2015, respectively

 

50

 

50

 

8

 

Additional paid-in capital

 

814,678

 

843,626

 

132,737

 

Treasury stock, at cost
(March 31 and September 30, 2015: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(443

)

Accumulated other comprehensive income

 

63,230

 

74,358

 

11,700

 

Retained earnings

 

662,615

 

694,889

 

109,335

 

Total equity attributable to China Cord Blood Corporation

 

1,537,758

 

1,610,108

 

253,337

 

Non-controlling interests

 

5,455

 

5,632

 

886

 

Total equity

 

1,543,213

 

1,615,740

 

254,223

 

Total liabilities and equity

 

4,119,486

 

4,369,905

 

687,568

 

 

4



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Six Months ended September 30, 2014 and 2015

 

 

 

Three months ended September 30,

 

Six months ended September 30,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

152,122

 

171,484

 

26,982

 

305,453

 

336,847

 

53,000

 

Direct costs

 

(30,348

)

(37,240

)

(5,859

)

(60,124

)

(73,813

)

(11,614

)

Gross profit

 

121,774

 

134,244

 

21,123

 

245,329

 

263,034

 

41,386

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(2,330

)

(2,153

)

(339

)

(4,829

)

(4,087

)

(643

)

Sales and marketing

 

(30,953

)

(36,966

)

(5,816

)

(62,696

)

(74,175

)

(11,671

)

General and administrative

 

(31,028

)

(42,647

)

(6,710

)

(60,174

)

(83,867

)

(13,196

)

Total operating expenses

 

(64,311

)

(81,766

)

(12,865

)

(127,699

)

(162,129

)

(25,510

)

Operating income

 

57,463

 

52,478

 

8,258

 

117,630

 

100,905

 

15,876

 

Other expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

4,704

 

4,387

 

690

 

8,970

 

9,097

 

1,431

 

Interest expense

 

(25,209

)

(26,301

)

(4,138

)

(50,104

)

(52,184

)

(8,211

)

Exchange loss

 

(182

)

(152

)

(24

)

(2

)

(193

)

(30

)

Dividend income

 

 

10,020

 

1,577

 

1,196

 

11,200

 

1,762

 

Impairment loss on available-for-sale equity securities

 

 

(8,361

)

(1,316

)

 

(8,361

)

(1,316

)

Others

 

680

 

(328

)

(52

)

1,297

 

(239

)

(38

)

Total other expense, net

 

(20,007

)

(20,735

)

(3,263

)

(38,643

)

(40,680

)

(6,402

)

Income before income tax

 

37,456

 

31,743

 

4,995

 

78,987

 

60,225

 

9,474

 

Income tax expense

 

(10,214

)

(12,785

)

(2,012

)

(22,151

)

(27,774

)

(4,369

)

Net income

 

27,242

 

18,958

 

2,983

 

56,836

 

32,451

 

5,105

 

Net income attributable to non-controlling interests

 

7

 

(235

)

(37

)

149

 

(177

)

(28

)

Net income attributable to China Cord Blood Corporation’s shareholders

 

27,249

 

18,723

 

2,946

 

56,985

 

32,274

 

5,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

0.35

 

0.25

 

0.04

 

0.72

 

0.44

 

0.07

 

- Diluted

 

0.35

 

0.25

 

0.04

 

0.72

 

0.44

 

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

913

 

(15,797

)

(2,486

)

1,442

 

(15,238

)

(2,398

)

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

 

(8,818

)

15,506

 

2,440

 

(4,312

)

26,366

 

4,148

 

Comprehensive income

 

19,337

 

18,667

 

2,937

 

53,966

 

43,579

 

6,855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

7

 

(235

)

(37

)

149

 

(177

)

(28

)

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

19,344

 

18,432

 

2,900

 

54,115

 

43,402

 

6,827

 

 

5



 

Other Events

 

On November 23, 2015, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and six months ended September 30, 2015. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated November 23, 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: November 23, 2015

 

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