6-K 1 a16-13072_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 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 abolishment of China’s one-child policy and implementation of the new two-child policy from January 2016) 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.

 

2



 

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, 2016 of the Company.

 

3



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2015 and 2016

 

 

 

March 31,

 

March 31,

 

 

 

2015

 

2016

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

2,436,655

 

3,008,422

 

466,567

 

Trading securities

 

7,708

 

 

 

Accounts receivable, less allowance for doubtful accounts (March 31, 2015: RMB28,624; March 31, 2016: RMB38,261 (US$5,934))

 

120,762

 

124,645

 

19,331

 

Inventories

 

23,803

 

28,326

 

4,393

 

Prepaid expenses and other receivables

 

19,508

 

24,412

 

3,786

 

Deferred tax assets

 

10,270

 

14,056

 

2,180

 

Total current assets

 

2,618,706

 

3,199,861

 

496,257

 

Property, plant and equipment, net

 

603,167

 

574,567

 

89,108

 

Non-current deposits

 

207,258

 

218,379

 

33,868

 

Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2015: RMB55,211; March 31, 2016: RMB62,633 (US$9,714))

 

194,238

 

165,011

 

25,591

 

Inventories

 

58,224

 

64,322

 

9,975

 

Intangible assets, net

 

115,928

 

111,307

 

17,262

 

Available-for-sale equity securities

 

122,416

 

162,734

 

25,238

 

Other investment

 

189,129

 

189,129

 

29,331

 

Deferred tax assets

 

2,618

 

2,617

 

406

 

Total assets

 

4,111,684

 

4,687,927

 

727,036

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Bank loan

 

60,000

 

60,000

 

9,305

 

Accounts payable

 

12,673

 

13,248

 

2,055

 

Accrued expenses and other payables

 

87,381

 

61,304

 

9,507

 

Deferred revenue

 

220,140

 

257,692

 

39,965

 

Amounts due to related parties

 

20,802

 

53,255

 

8,259

 

Income tax payable

 

10,081

 

8,524

 

1,322

 

Deferred tax liabilities

 

9,100

 

14,300

 

2,218

 

Total current liabilities

 

420,177

 

468,323

 

72,631

 

Convertible notes, net1

 

808,049

 

906,222

 

140,543

 

Non-current deferred revenue

 

1,099,399

 

1,321,239

 

204,907

 

Other non-current liabilities

 

215,585

 

255,932

 

39,691

 

Deferred tax liabilities

 

25,261

 

22,786

 

3,534

 

Total liabilities

 

2,568,471

 

2,974,502

 

461,306

 

 

 

 

 

 

 

 

 

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, 2015 and 2016, respectively

 

50

 

50

 

8

 

Additional paid-in capital

 

814,678

 

873,654

 

135,493

 

Treasury stock, at cost (March 31, 2015 and 2016: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(437

)

Accumulated other comprehensive income

 

63,230

 

84,779

 

13,148

 

Retained earnings

 

662,615

 

753,585

 

116,871

 

Total equity attributable to China Cord Blood Corporation

 

1,537,758

 

1,709,253

 

265,083

 

Non-controlling interests

 

5,455

 

4,172

 

647

 

Total equity

 

1,543,213

 

1,713,425

 

265,730

 

Total liabilities and equity

 

4,111,684

 

4,687,927

 

727,036

 

 


1 With the adoption of Accounting Standards Update No. 2015-03 in the current fiscal year, debt issuance costs of RMB7,802 and RMB4,437 (US$688) as of March 31, 2015 and 2016 are presented as a deduction to the carrying amount of convertible notes, instead of reported on the balance sheet as an asset. The costs will continue to be amortized to interest expense using the effective interest method.

 

4



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Year ended March 31, 2015 and 2016

 

 

 

Three months ended March 31,

 

Year ended March 31,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

162,994

 

156,778

 

24,314

 

635,122

 

662,999

 

102,822

 

Direct costs

 

(34,440

)

(34,594

)

(5,365

)

(130,611

)

(144,598

)

(22,425

)

Gross profit

 

128,554

 

122,184

 

18,949

 

504,511

 

518,401

 

80,397

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(2,660

)

(2,277

)

(353

)

(9,907

)

(8,964

)

(1,390

)

Sales and marketing

 

(34,960

)

(37,221

)

(5,772

)

(127,927

)

(148,155

)

(22,977

)

General and administrative

 

(41,411

)

(43,015

)

(6,671

)

(131,681

)

(169,952

)

(26,357

)

Total operating expenses

 

(79,031

)

(82,513

)

(12,796

)

(269,515

)

(327,071

)

(50,724

)

Operating income

 

49,523

 

39,671

 

6,153

 

234,996

 

191,330

 

29,673

 

Other expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

4,708

 

4,451

 

690

 

18,252

 

18,218

 

2,825

 

Interest expense

 

(25,238

)

(27,991

)

(4,341

)

(101,102

)

(107,967

)

(16,744

)

Exchange loss

 

(82

)

(13

)

(2

)

(231

)

(972

)

(151

)

Dividend income

 

 

 

 

2,344

 

49,198

 

7,630

 

Impairment loss on available-for-sale equity securities

 

 

 

 

 

(8,361

)

(1,297

)

Others

 

101

 

503

 

78

 

861

 

(113

)

(18

)

Total other expense, net

 

(20,511

)

(23,050

)

(3,575

)

(79,876

)

(49,997

)

(7,755

)

Income before income tax

 

29,012

 

16,621

 

2,578

 

155,120

 

141,333

 

21,918

 

Income tax expense

 

(11,664

)

(8,590

)

(1,332

)

(47,327

)

(50,000

)

(7,754

)

Net income

 

17,348

 

8,031

 

1,246

 

107,793

 

91,333

 

14,164

 

Net (loss)/income attributable to non-controlling interests

 

(425

)

213

 

33

 

(501

)

(363

)

(56

)

Net income attributable to China Cord Blood Corporation’s shareholders

 

16,923

 

8,244

 

1,279

 

107,292

 

90,970

 

14,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

0.23

 

0.18

 

0.03

 

1.36

 

1.25

 

0.19

 

- Diluted

 

0.23

 

0.18

 

0.03

 

1.36

 

1.25

 

0.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

- Foreign currency translation adjustment, net of nil income taxes

 

1,360

 

2,476

 

384

 

4,642

 

(19,124

)

(2,966

)

- Unrealized gain/(loss) in available-for-sale equity securities and other comprehensive income, net of nil income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

- Unrealized gain/(loss) arising during the period/year

 

12,934

 

(8,372

)

(1,298

)

(25,675

)

32,312

 

5,011

 

- Reclassification adjustment for losses included in net income

 

 

 

 

 

8,361

 

1,297

 

Comprehensive income

 

31,642

 

2,135

 

332

 

86,760

 

112,882

 

17,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive (loss)/income attributable to non-controlling interests

 

(425

)

213

 

33

 

(501

)

(363

)

(56

)

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

31,217

 

2,348

 

365

 

86,259

 

112,519

 

17,450

 

 

5



 

Other Events

 

On June 14, 2016, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and year ended March 31, 2016. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated June 14, 2016

 

6



 

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 14, 2016

 

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