6-K 1 a16-21509_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 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 recent relaxation of 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; the non-binding proposal letters from Golden Meditech Holdings Limited (“Golden Meditech”) and Nanjing Xinjiekou Department Store Co., Ltd. (“Nanjing Xinjiekou”) and the proposed transactions between Golden Meditech Stem Cells (BVI) Company Limited and Nanjing Xinjiekou and the alternative proposal and the supplementary agreement between Golden Meditech and Sanpower Group 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 unaudited condensed consolidated financial results for the three months and six months ended September 30, 2016 of the Company.

 

3



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and September 30, 2016

 

 

 

March 31,

 

September 30,

 

 

 

2016

 

2016

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

3,008,422

 

3,142,647

 

471,267

 

Accounts receivable, less allowance for doubtful accounts (March 31, 2016: RMB38,261; September 30, 2016: RMB42,551 (US$6,381))

 

124,645

 

118,523

 

17,773

 

Inventories

 

28,326

 

27,113

 

4,066

 

Prepaid expenses and other receivables

 

24,412

 

14,573

 

2,184

 

Deferred tax assets

 

14,056

 

15,816

 

2,372

 

Total current assets

 

3,199,861

 

3,318,672

 

497,662

 

Property, plant and equipment, net

 

574,567

 

561,832

 

84,252

 

Non-current prepayments

 

218,379

 

233,724

 

35,049

 

Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2016: RMB62,633; September 30, 2016: RMB65,996 (US$9,897))

 

165,011

 

150,796

 

22,613

 

Inventories

 

64,322

 

66,857

 

10,026

 

Intangible assets, net

 

111,307

 

108,997

 

16,345

 

Available-for-sale equity securities

 

162,734

 

218,145

 

32,713

 

Other investment

 

189,129

 

189,129

 

28,362

 

Deferred tax assets

 

2,617

 

2,559

 

384

 

Total assets

 

4,687,927

 

4,850,711

 

727,406

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Bank loan

 

60,000

 

 

 

Convertible note, net

 

 

553,395

 

82,986

 

Accounts payable

 

13,248

 

11,529

 

1,729

 

Accrued expenses and other payables

 

61,304

 

48,730

 

7,307

 

Deferred revenue

 

257,692

 

292,689

 

43,891

 

Amounts due to related parties

 

53,255

 

17,180

 

2,577

 

Income tax payable

 

8,524

 

10,152

 

1,522

 

Deferred tax liabilities

 

14,300

 

16,900

 

2,534

 

Total current liabilities

 

468,323

 

950,575

 

142,546

 

Convertible note, net

 

906,222

 

414,492

 

62,157

 

Non-current deferred revenue

 

1,321,239

 

1,433,150

 

214,913

 

Other non-current liabilities

 

255,932

 

278,034

 

41,693

 

Deferred tax liabilities

 

22,786

 

22,031

 

3,304

 

Total liabilities

 

2,974,502

 

3,098,282

 

464,613

 

 

 

 

 

 

 

 

 

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, 2016, respectively

 

50

 

50

 

7

 

Additional paid-in capital

 

873,654

 

904,531

 

135,643

 

Treasury stock, at cost

 

 

 

 

 

 

 

(March 31 and September 30, 2016: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(422

)

Accumulated other comprehensive income

 

84,779

 

59,442

 

8,914

 

Retained earnings

 

753,585

 

785,948

 

117,860

 

Total equity attributable to China Cord Blood Corporation

 

1,709,253

 

1,747,156

 

262,002

 

Non-controlling interests

 

4,172

 

5,273

 

791

 

Total equity

 

1,713,425

 

1,752,429

 

262,793

 

Total liabilities and equity

 

4,687,927

 

4,850,711

 

727,406

 

 

4



 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Six Months ended September 30, 2015 and 2016

 

 

 

Three months ended September 30,

 

Six months ended September 30,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

171,484

 

184,140

 

27,613

 

336,847

 

357,092

 

53,549

 

Direct costs

 

(37,240

)

(39,088

)

(5,862

)

(73,813

)

(76,521

)

(11,475

)

Gross profit

 

134,244

 

145,052

 

21,751

 

263,034

 

280,571

 

42,074

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(2,153

)

(2,377

)

(356

)

(4,087

)

(4,326

)

(649

)

Sales and marketing

 

(36,966

)

(39,642

)

(5,945

)

(74,175

)

(77,834

)

(11,672

)

General and administrative

 

(42,647

)

(48,289

)

(7,241

)

(83,867

)

(91,532

)

(13,726

)

Total operating expenses

 

(81,766

)

(90,308

)

(13,542

)

(162,129

)

(173,692

)

(26,047

)

Operating income

 

52,478

 

54,744

 

8,209

 

100,905

 

106,879

 

16,027

 

Other expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

4,387

 

4,438

 

666

 

9,097

 

8,715

 

1,307

 

Interest expense

 

(26,301

)

(29,801

)

(4,469

)

(52,184

)

(58,634

)

(8,793

)

Foreign currency exchange (losses)/gains

 

(152

)

(15

)

(2

)

(193

)

120

 

18

 

Dividend income

 

10,020

 

 

 

11,200

 

 

 

Impairment loss on available-for-sale equity securities

 

(8,361

)

 

 

(8,361

)

 

 

Others

 

(328

)

576

 

86

 

(239

)

728

 

109

 

Total other expense, net

 

(20,735

)

(24,802

)

(3,719

)

(40,680

)

(49,071

)

(7,359

)

Income before income tax

 

31,743

 

29,942

 

4,490

 

60,225

 

57,808

 

8,668

 

Income tax expense

 

(12,785

)

(12,639

)

(1,895

)

(27,774

)

(24,315

)

(3,646

)

Net income

 

18,958

 

17,303

 

2,595

 

32,451

 

33,493

 

5,022

 

Net income attributable to non-controlling interests

 

(235

)

(662

)

(99

)

(177

)

(1,130

)

(169

)

Net income attributable to China Cord Blood Corporation’s shareholders

 

18,723

 

16,641

 

2,496

 

32,274

 

32,363

 

4,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

0.25

 

0.22

 

0.03

 

0.44

 

0.44

 

0.07

 

- Diluted

 

0.25

 

0.22

 

0.03

 

0.44

 

0.44

 

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss)/income, net of nil income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

- Foreign currency translation adjustment

 

(15,797

)

(1,400

)

(210

)

(15,238

)

(8,360

)

(1,254

)

- Unrealized holding gains/(losses) in available-for-sale equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

-   Unrealized holding gains/(losses) arising during the period

 

7,145

 

(10,507

)

(1,576

)

18,005

 

(16,977

)

(2,546

)

-   Reclassification adjustment for losses included in net income

 

8,361

 

 

 

8,361

 

 

 

Total other comprehensive (loss)/income

 

(291

)

(11,907

)

(1,786

)

11,128

 

(25,337

)

(3,800

)

Comprehensive income

 

18,667

 

5,396

 

809

 

43,579

 

8,156

 

1,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(235

)

(662

)

(99

)

(177

)

(1,130

)

(169

)

Comprehensive income attributable to China Cord Blood Corporation’s shareholders

 

18,432

 

4,734

 

710

 

43,402

 

7,026

 

1,053

 

 

5



 

Other Events

 

On November 17, 2016, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months and six months ended September 30, 2016. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release dated November 17, 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: November 17, 2016

 

 

 

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