6-K 1 v353289_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 August 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 ended June 30, 2013 of the Company.

 

 
 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31 and June 30, 2013

 

   March 31,   June 30, 
   2013   2013 
   RMB   RMB   US$ 
   (in thousands except share data) 
ASSETS            
Current assets               
Cash and cash equivalents   1,494,099    1,560,024    254,184 
Accounts receivable, less allowance for doubtful accounts               
  (March 31, 2013: RMB14,112; June 30, 2013: RMB14,592)   73,076    75,425    12,289 
Inventories   10,265    10,770    1,755 
Prepaid expenses and other receivables   11,602    12,317    2,006 
Debt issuance costs   3,678    3,626    591 
Deferred tax assets   5,454    5,609    914 
Total current assets   1,598,174    1,667,771    271,739 
Property, plant and equipment, net   468,272    503,775    82,083 
Non-current prepayments   212,633    214,114    34,887 
Non-current accounts receivable, less allowance for doubtful accounts               
  (March 31, 2013: RMB36,361; June 30, 2013: RMB36,497)   249,370    242,539    39,518 
Inventories   39,730    41,159    6,706 
Intangible assets, net   125,170    124,015    20,206 
Available-for-sale equity securities   88,404    111,407    18,152 
Other investment   189,129    189,129    30,816 
Debt issuance costs   11,667    10,598    1,727 
Deferred tax assets   3,727    1,772    289 
Total assets   2,986,276    3,106,279    506,123 
                
LIABILITIES               
Current liabilities               
Bank loan   50,000    50,000    8,147 
Accounts payable   9,890    10,556    1,720 
Accrued expenses and other payables   84,006    58,780    9,578 
Deferred revenue   172,328    176,191    28,708 
Amounts due to related parties   11,241    16,871    2,749 
Income tax payable   4,983    1,975    322 
Total current liabilities   332,448    314,373    51,224 
Convertible notes   751,781    750,086    122,216 
Non-current deferred revenue   530,258    591,918    96,444 
Other non-current liabilities   107,158    120,318    19,604 
Deferred tax liabilities   23,168    23,919    3,897 
Total liabilities   1,744,813    1,800,614    293,385 

 

 
 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31 and June 30, 2013 - (continued)

 

   March 31,   June 30, 
   2013   2013 
   RMB   RMB   US$ 
   (in thousands except share data) 
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, 2013 and               
June 30, 2013, respectively   50    50    8 
Additional paid-in capital   798,221    798,221    130,058 
Treasury stock, at cost (March 31, 2013 and June 30, 2013: 136,899 shares, respectively)   (2,815)   (2,815)   (459)
Accumulated other comprehensive income   18,256    49,399    8,049 
Retained earnings   423,420    456,326    74,352 
Total equity attributable to China Cord Blood Corporation   1,237,132    1,301,181    212,008 
Non-controlling interests   4,331    4,484    730 
Total equity   1,241,463    1,305,665    212,738 
Total liabilities and equity   2,986,276    3,106,279    506,123 

 

 
 

 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months ended June 30, 2012 and 2013

 

   Three months ended June 30, 
   2012   2013 
   RMB   RMB   US$ 
   (in thousands except share data) 
             
Revenues   115,330    128,721    20,974 
Direct costs   (24,389)   (24,492)   (3,991)
Gross profit   90,941    104,229    16,983 
Operating expenses               
Research and development   (2,263)   (2,523)   (411)
Sales and marketing   (19,220)   (28,424)   (4,631)
General and administrative   (25,060)   (27,402)   (4,465)
Total operating expenses   (46,543)   (58,349)   (9,507)
Operating income   44,398    45,880    7,476 
Other expense, net               
Interest income   3,329    4,182    681 
Interest expense   (10,176)   (14,758)   (2,405)
Exchange gain/(loss)   10    (124)   (20)
Dividend income   2,420    8,722    1,421 
Others   236    530    86 
Total other expense, net   (4,181)   (1,448)   (237)
Income before income tax   40,217    44,432    7,239 
Income tax expense   (6,335)   (11,373)   (1,853)
Net income   33,882    33,059    5,386 
Net income attributable to non-controlling interests   (2,789)   (153)   (25)
Net income attributable to China Cord Blood Corporation’s shareholders   31,093    32,906    5,361 
                
Net income per share:               
Attributable to ordinary shares               
-   Basic   0.41    0.40    0.07 
-   Diluted   0.41    0.40    0.07 
                
Other comprehensive income               
-   Net effect of foreign currency translation, net of nil tax   (1,417)   6,805    1,109 
-   Net unrealized (loss)/gain in available-for-sale equity securities, net of nil tax   (22,574)   24,338    3,966 
Comprehensive income   9,891    64,202    10,461 
                
Comprehensive income attributable to non-controlling interests   (2,787)   (153)   (25)
Comprehensive income attributable to China Cord Blood Corporation’s shareholders   7,104    64,049    10,436 

 

 
 

 

Other Events

 

On August 26, 2013, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months ended June 30, 2013. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No. Description
   
99.1 Press Release, dated August 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: August 26, 2013