6-K 1 v347501_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 June 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 year ended March 31, 2013 of the Company.

 

 
 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2012 and 2013

 

   March 31,   March 31, 
   2012   2013 
   RMB   RMB   US$ 
   (in thousands except share data) 
             
ASSETS               
Current assets               
Cash and cash equivalents   794,311    1,494,099    240,565 
Accounts receivable, less allowance for doubtful accounts
(March 31, 2012: RMB13,916; March 31, 2013: RMB14,112)
   79,012    73,076    11,766 
Inventories   6,666    10,265    1,652 
Prepaid expenses and other receivables   11,561    11,602    1,868 
Trading securities   354    -    - 
Debt issuance costs   -    3,678    592 
Deferred tax assets   5,268    5,454    878 
Total current assets   897,172    1,598,174    257,321 
Property, plant and equipment, net   267,862    468,272    75,397 
Non-current prepayments   2,863    212,633    34,236 
Non-current accounts receivable, less allowance for doubtful accounts
(March 31, 2012: RMB38,628; March 31, 2013: RMB36,361)
   254,236    249,370    40,152 
Inventories   34,651    39,730    6,396 
Intangible assets, net   129,791    125,170    20,154 
Available-for-sale equity securities   98,199    88,404    14,234 
Other investment   134,363    189,129    30,452 
Debt issuance costs   -    11,667    1,879 
Deferred tax assets   5,013    3,727    600 
Total assets   1,824,150    2,986,276    480,821 
                
LIABILITIES               
Current liabilities               
Bank loan   45,000    50,000    8,050 
Accounts payable   6,343    9,890    1,592 
Accrued expenses and other payables   33,351    84,006    13,527 
Deferred revenue   106,110    172,328    27,747 
Amounts due to related parties   360    11,241    1,810 
Income tax payable   5,943    4,983    802 
Total current liabilities   197,107    332,448    53,528 
Convertible notes   -    751,781    121,044 
Non-current deferred revenue   306,534    530,258    85,377 
Other non-current liabilities   60,420    107,158    17,254 
Deferred tax liabilities   24,462    23,168    3,730 
Total liabilities   588,523    1,744,813    280,933 
                
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 March 31, 2013

   50    50    8 
Additional paid-in capital   865,654    798,221    128,522 
Treasury stock, at cost (March 31, 2012: nil; March 31, 2013: 136,899 shares)   -    (2,815)   (453)
Accumulated other comprehensive income   26,057    18,256    2,939 
Retained earnings   310,973    423,420    68,175 
Total shareholders’ equity   1,202,734    1,237,132    199,191 
Non-controlling interests   32,893    4,331    697 
Total equity   1,235,627    1,241,463    199,888 
Total liabilities and equity   1,824,150    2,986,276    480,821 

 

 
 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Year ended March 31, 2012 and 2013

 

   Three months ended March 31,   Year ended March 31, 
   2012   2013   2012   2013 
   RMB   RMB   US$   RMB   RMB   US$ 
   (in thousands except share data) 
                         
Revenues   99,778    133,011    21,417    380,490    526,123    84,711 
Direct costs   (23,330)   (26,907)   (4,332)   (86,658)   (106,621)   (17,167)
Gross profit   76,448    106,104    17,085    293,832    419,502    67,544 
Operating expenses                              
Research and development   (1,953)   (2,249)   (362)   (7,615)   (8,459)   (1,362)
Sales and marketing   (16,567)   (26,116)   (4,205)   (61,678)   (93,684)   (15,084)
General and administrative   (23,086)   (26,992)   (4,346)   (89,696)   (108,045)   (17,396)
Total operating expenses   (41,606)   (55,357)   (8,913)   (158,989)   (210,188)   (33,842)
Operating income   34,842    50,747    8,172    134,843    209,314    33,702 
Other income/(expense), net                              
Interest income   3,411    4,002    644    13,432    15,064    2,425 
Interest expense   (896)   (22,070)   (3,553)   (3,287)   (70,097)   (11,286)
Exchange gain/(loss)   33    (25)   (4)   (1,343)   (984)   (158)
Dividend income   -    -    -    7,217    4,685    754 
Others   823    924    149    737    203    33 
Total other income/(expense), net   3,371    (17,169)   (2,764)   16,756    (51,129)   (8,232)
Income before income tax   38,213    33,578    5,408    151,599    158,185    25,470 
Income tax expense   (6,597)   (10,483)   (1,688)   (9,634)   (38,543)   (6,206)
Net income   31,616    23,095    3,720    141,965    119,642    19,264 
   Net income attributable to non-controlling interests   (2,377)   (67)   (11)   (9,985)   (7,195)   (1,158)
   Net income attributable to the Company   29,239    23,028    3,709    131,980    112,447    18,106 
                               
Net income per share:                              
Attributable to ordinary shares                              
   - Basic   0.40    0.32    0.05    1.79    1.49    0.24 
   - Diluted   0.40    0.32    0.05    1.79    1.49    0.24 
                               
Other comprehensive income                              
- Net effect of foreign currency translation, net of nil tax   (604)   2,936    473    (1,653)   1,296    209 
- Net unrealized gain/(loss) in available-for-sale equity                              
 securities, net of nil tax   58,055    12,023    1,936    46,587    (9,120)   (1,468)
Comprehensive income   89,067    38,054    6,129    186,899    111,818    18,005 
                               
Comprehensive income attributable to non-controlling                              

interests

   (2,427)   (67)   (11)   (10,282)   (7,172)   (1,155)
   Comprehensive income attributable to the Company   86,640    37,987    6,118    176,617    104,646    16,850 

 

 
 

 

Other Events

 

On June 18, 2013, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and year ended March 31, 2013. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No. Description
   
99.1 Press Release, dated June 18, 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: June 18, 2013