6-K 1 a16-4922_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 February 2016

 

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 the proposed transactions between the foregoing companies; 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 nine months ended December 31, 2015 of the Company.

 

3



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and December 31, 2015

 

 

 

March 31,

 

December 31,

 

 

2015

 

2015

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

2,436,655

 

2,873,740

 

443,630

 

Trading securities

 

7,708

 

 

 

Accounts receivable, less allowance for doubtful accounts (March 31, 2015: RMB28,624; December 31, 2015: RMB35,256 (US$5,443))

 

120,762

 

128,079

 

19,772

 

Inventories

 

23,803

 

30,704

 

4,740

 

Prepaid expenses and other receivables

 

19,508

 

19,911

 

3,074

 

Debt issuance costs

 

3,592

 

3,812

 

588

 

Deferred tax assets

 

10,270

 

12,898

 

1,991

 

Total current assets

 

2,622,298

 

3,069,144

 

473,795

 

Property, plant and equipment, net

 

603,167

 

582,012

 

89,848

 

Non-current deposits

 

207,258

 

221,689

 

34,223

 

Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2015: RMB55,211; December 31, 2015: RMB60,474 (US$9,336))

 

194,238

 

172,734

 

26,665

 

Inventories

 

58,224

 

61,768

 

9,535

 

Intangible assets, net

 

115,928

 

112,463

 

17,361

 

Available-for-sale equity securities

 

122,416

 

172,486

 

26,627

 

Other investment

 

189,129

 

189,129

 

29,196

 

Debt issuance costs

 

4,210

 

1,596

 

246

 

Deferred tax assets

 

2,618

 

2,317

 

358

 

Total assets

 

4,119,486

 

4,585,338

 

707,854

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Bank loan

 

60,000

 

60,000

 

9,262

 

Accounts payable

 

12,673

 

11,357

 

1,753

 

Accrued expenses and other payables

 

87,381

 

63,957

 

9,873

 

Deferred revenue

 

220,140

 

239,664

 

36,998

 

Amounts due to related parties

 

20,802

 

35,800

 

5,526

 

Income tax payable

 

10,081

 

13,419

 

2,072

 

Deferred tax liabilities

 

9,100

 

13,000

 

2,007

 

Total current liabilities

 

420,177

 

437,197

 

67,491

 

Convertible notes

 

815,851

 

903,985

 

139,551

 

Non-current deferred revenue

 

1,099,399

 

1,275,826

 

196,954

 

Other non-current liabilities

 

215,585

 

246,804

 

38,100

 

Deferred tax liabilities

 

25,261

 

23,488

 

3,626

 

Total liabilities

 

2,576,273

 

2,887,300

 

445,722

 

 

 

 

 

 

 

 

 

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 December 31, 2015, respectively

 

50

 

50

 

8

 

Additional paid-in capital

 

814,678

 

858,775

 

132,572

 

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

(2,815

)

(2,815

)

(435

)

Accumulated other comprehensive income

 

63,230

 

90,656

 

13,995

 

Retained earnings

 

662,615

 

745,341

 

115,061

 

Total equity attributable to China Cord Blood Corporation

 

1,537,758

 

1,692,007

 

261,201

 

Non-controlling interests

 

5,455

 

6,031

 

931

 

Total equity

 

1,543,213

 

1,698,038

 

262,132

 

Total liabilities and equity

 

4,119,486

 

4,585,338

 

707,854

 

 

4



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Nine Months ended December 31, 2014 and 2015

 

 

 

Three months ended December 31,

 

Nine months ended December 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

166,675

 

169,374

 

26,147

 

472,128

 

506,221

 

78,147

 

Direct costs

 

(36,047

)

(36,191

)

(5,587

)

(96,171

)

(110,004

)

(16,982

)

Gross profit

 

130,628

 

133,183

 

20,560

 

375,957

 

396,217

 

61,165

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(2,418

)

(2,600

)

(401

)

(7,247

)

(6,687

)

(1,032

)

Sales and marketing

 

(30,271

)

(36,759

)

(5,675

)

(92,967

)

(110,934

)

(17,125

)

General and administrative

 

(30,096

)

(43,070

)

(6,649

)

(90,270

)

(126,937

)

(19,596

)

Total operating expenses

 

(62,785

)

(82,429

)

(12,725

)

(190,484

)

(244,558

)

(37,753

)

Operating income

 

67,843

 

50,754

 

7,835

 

185,473

 

151,659

 

23,412

 

Other expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

4,574

 

4,670

 

721

 

13,544

 

13,767

 

2,125

 

Interest expense

 

(25,760

)

(27,792

)

(4,290

)

(75,864

)

(79,976

)

(12,346

)

Exchange loss

 

(147

)

(766

)

(118

)

(149

)

(959

)

(148

)

Dividend income

 

1,148

 

37,998

 

5,866

 

2,344

 

49,198

 

7,595

 

Impairment loss on available-for-sale equity securities

 

 

 

 

 

(8,361

)

(1,291

)

Others

 

(537

)

(377

)

(58

)

760

 

(616

)

(95

)

Total other expense, net

 

(20,722

)

13,733

 

2,121

 

(59,365

)

(26,947

)

(4,160

)

Income before income tax

 

47,121

 

64,487

 

9,956

 

126,108

 

124,712

 

19,252

 

Income tax expense

 

(13,512

)

(13,636

)

(2,105

)

(35,663

)

(41,410

)

(6,393

)

Net income

 

33,609

 

50,851

 

7,851

 

90,445

 

83,302

 

12,859

 

Net income attributable to non-controlling interests

 

(225

)

(399

)

(62

)

(76

)

(576

)

(89

)

Net income attributable to China Cord Blood Corporation’s shareholders

 

33,384

 

50,452

 

7,789

 

90,369

 

82,726

 

12,770

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

0.41

 

0.63

 

0.10

 

1.13

 

1.07

 

0.17

 

- Diluted

 

0.41

 

0.63

 

0.10

 

1.13

 

1.07

 

0.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1,840

 

(6,362

)

(982

)

3,282

 

(21,600

)

(3,334

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

- Unrealized (loss)/gain arising during the period

 

(34,297

)

22,679

 

3,501

 

(38,609

)

40,684

 

6,281

 

- Reclassification adjustment for losses included in net income

 

 

 

 

 

8,361

 

1,291

 

Comprehensive income

 

1,152

 

67,168

 

10,370

 

55,118

 

110,747

 

17,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(225

)

(399

)

(62

)

(76

)

(576

)

(89

)

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

927

 

66,769

 

10,308

 

55,042

 

110,171

 

17,008

 

 

5



 

Other Events

 

On February 29, 2016, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and nine months ended December 31, 2015. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated February 29, 2016

 

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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: February 29, 2016

 

 

 

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