6-K 1 v336102_6k.htm FORM 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 2013

 

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 ¨

 

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): ¨

 

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): ¨

 

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 ¨ 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 confirm 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 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; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission.

 

 
 

 

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, 2012 of the Company.

 

 
 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and December 31, 2012

 

 

   March 31,   December 31, 
   2012   2012 
   RMB   RMB   US$ 
   (in thousands except share data) 
             
ASSETS               
Current assets               
Cash and cash equivalents   794,311    1,480,842    237,692 
Accounts receivable, less allowance for doubtful accounts
(March 31, 2012: RMB13,916; December 31, 2012: RMB14,547)		   79,012    77,894    12,502 
Inventories   6,666    7,371    1,183 
Prepaid expenses and other receivables   11,561    13,272    2,130 
Trading securities   354    -    - 
Debt issuance costs   -    3,704    595 
Deferred tax assets   5,268    5,868    942 
Total current assets   897,172    1,588,951    255,044 
Property, plant and equipment, net   267,862    382,216    61,350 
Non-current prepayments   2,863    226,904    36,420 
Non-current accounts receivable, less allowance for doubtful accounts
(March 31, 2012: RMB38,628; December 31, 2012: RMB39,384)		   254,236    248,663    39,913 
Inventories   34,651    38,783    6,225 
Intangible assets, net   129,791    126,326    20,277 
Available-for-sale equity securities   98,199    77,060    12,369 
Other investment   134,363    134,363    21,567 
Debt issuance costs   -    12,663    2,033 
Deferred tax assets   5,013    5,082    816 
Total assets   1,824,150    2,841,011    456,014 
                
LIABILITIES               
Current liabilities               
Bank loan   45,000    50,000    8,026 
Accounts payable   6,343    16,914    2,715 
Accrued expenses and other payables   33,351    79,292    12,728 
Deferred revenue   106,110    147,608    23,693 
Amounts due to related party   360    720    116 
Income tax payable   5,943    8,361    1,342 
Total current liabilities   197,107    302,895    48,620 
Convertible notes   -    748,075    120,074 
Non-current deferred revenue   306,534    474,605    76,179 
Other non-current liabilities   60,420    88,836    14,259 
Deferred tax liabilities   24,462    23,191    3,722 
Total liabilities   588,523    1,637,602    262,854 

 

EQUITY               
Shareholders’ equity               
Ordinary shares               
- US$0.0001 par value, 250,000,000 shares authorized, 73,140,147 shares               
issued and outstanding as of March 31, 2012 and 73,140,147 shares               
issued and 73,003,248 shares outstanding as of December 31, 2012   50    50    8 
Additional paid-in capital   865,654    798,221    128,123 
Treasury stock, at cost (March 31, 2012: nil; December 31, 2012: 136,899 shares)   -    (2,815)   (452)
Accumulated other comprehensive income   26,057    3,297    529 
Retained earnings   310,973    400,392    64,268 
Total shareholders’ equity   1,202,734    1,199,145    192,476 
Non-controlling interests   32,893    4,264    684 
Total equity   1,235,627    1,203,409    193,160 
Total liabilities and equity   1,824,150    2,841,011    456,014 

 

 
 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Nine Months ended December 31, 2011 and 2012

  

   Three months ended December 31,   Nine months ended December 31, 
   2011   2012   2011   2012 
   RMB   RMB   US$   RMB   RMB   US$ 
   (in thousands except share data) 
                         
Revenues   94,821    149,320    23,967    280,712    393,112    63,099 
Direct costs   (21,703)   (28,268)   (4,537)   (63,328)   (79,714)   (12,795)
Gross profit   73,118    121,052    19,430    217,384    313,398    50,304 
Operating expenses                              
Research and development   (1,953)   (2,087)   (335)   (5,662)   (6,210)   (997)
Sales and marketing   (16,930)   (24,831)   (3,986)   (45,111)   (67,568)   (10,845)
General and administrative   (22,711)   (27,009)   (4,335)   (66,610)   (81,053)   (13,009)
Total operating expenses   (41,594)   (53,927)   (8,656)   (117,383)   (154,831)   (24,851)
Operating income   31,524    67,125    10,774    100,001    158,567    25,453 
Other income/(expense), net                              
Interest income   3,570    3,874    622    10,021    11,062    1,776 
Interest expense   (741)   (23,762)   (3,814)   (2,391)   (48,027)   (7,709)
Exchange gain/(loss)   3,484    (1,010)   (162)   (1,376)   (959)   (154)
Dividend income   -    2,265    364    7,217    4,685    752 
Others   (411)   45    7    (86)   (721)   (116)
Total other income/(expense), net   5,902    (18,588)   (2,983)   13,385    (33,960)   (5,451)
Income before income tax   37,426    48,537    7,791    113,386    124,607    20,002 
Income tax credit/(expense)   4,273    (13,259)   (2,128)   (3,037)   (28,060)   (4,504)
Net income   41,699    35,278    5,663    110,349    96,547    15,498 
Net income attributable to non-controlling interests   (2,229)   (1,647)   (264)   (7,608)   (7,128)   (1,144)
Net income attributable to the Company   39,470    33,631    5,399    102,741    89,419    14,354 
                               
Net income per share:                              
Attributable to ordinary shares                              
- Basic   0.54    0.42    0.07    1.39    1.17    0.19 
- Diluted   0.54    0.42    0.07    1.39    1.17    0.19 
                               
Other comprehensive income                              
- Net effect of foreign currency translation, net of nil tax   (360)   784    126    (1,049)   (1,640)   (263)
- Net unrealized gain/(loss) in available-for-sale equity securities, net of nil tax   40    (1,193)   (191)   (11,468)   (21,143)   (3,394)
Comprehensive income   41,379    34,869    5,598    97,832    73,764    11,841 
                               
Comprehensive income attributable to non-controlling interests   (2,250)   (1,646)   (264)   (7,855)   (7,105)   (1,140)
Comprehensive income attributable to the Company   39,129    33,223    5,334    89,977    66,659    10,701 
 
 

 

Other Events

 

On February 26, 2013, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and nine months ended December 31, 2012. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

  Exhibit No.   Description
       
  99.1   Press Release, dated February 26, 2013

 

 
 

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 26, 2013