6-K 1 v359970_6k.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 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-_______________.

 

1
 

 

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.

 

2
 

 

Results of Operations and Financial Condition

 

Following this cover page are the preliminary unaudited condensed consolidated financial results for the three months and six months ended September 30, 2013 of the Company.

 

3
 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and September 30, 2013

 

   March 31,   September 30, 
   2013   2013 
   RMB   RMB   US$ 
   (in thousands except share data) 
ASSETS               
Current assets               
Cash and cash equivalents   1,494,099    1,669,380    272,775 
Accounts receivable, less allowance for doubtful accounts               
  (March 31, 2013: RMB14,112; September 30, 2013: RMB16,082)   73,076    80,559    13,163 
Inventories   10,265    16,832    2,751 
Prepaid expenses and other receivables   11,602    14,844    2,425 
Debt issuance costs   3,678    3,606    589 
Deferred tax assets   5,454    5,985    978 
Total current assets   1,598,174    1,791,206    292,681 
Property, plant and equipment, net   468,272    520,169    84,995 
Non-current prepayments   212,633    208,188    34,018 
Non-current accounts receivable, less allowance for doubtful accounts               
  (March 31, 2013: RMB36,361; September 30, 2013: RMB38,346)   249,370    236,064    38,572 
Inventories   39,730    42,933    7,015 
Intangible assets, net   125,170    122,860    20,075 
Available-for-sale equity securities   88,404    169,699    27,729 
Other investment   189,129    189,129    30,903 
Debt issuance costs   11,667    9,630    1,574 
Deferred tax assets   3,727    1,114    182 
Total assets   2,986,276    3,290,992    537,744 
                
LIABILITIES               
Current liabilities               
Bank loan   50,000    60,000    9,804 
Accounts payable   9,890    8,779    1,434 
Accrued expenses and other payables   84,006    64,942    10,611 
Deferred revenue   172,328    181,428    29,645 
Amounts due to related parties   11,241    720    118 
Income tax payable   4,983    2,206    360 
Deferred tax liabilities   -    1,300    212 
Total current liabilities   332,448    319,375    52,184 
Convertible notes   751,781    754,807    123,334 
Non-current deferred revenue   530,258    665,226    108,697 
Other non-current liabilities   107,158    133,954    21,888 
Deferred tax liabilities   23,168    24,938    4,075 
Total liabilities   1,744,813    1,898,300    310,178 
                

 

4
 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and September 30, 2013 - (continued)

         
   March 31,   September 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               
September 30, 2013, respectively   50    50    8 
Additional paid-in capital   798,221    798,221    130,429 
Treasury stock, at cost               
(March 31, 2013 and September 30, 2013: 136,899 shares, respectively)   (2,815)   (2,815)   (460)
Accumulated other comprehensive income   18,256    111,408    18,204 
Retained earnings   423,420    481,230    78,633 
Total equity attributable to China Cord Blood Corporation   1,237,132    1,388,094    226,814 
Non-controlling interests   4,331    4,598    752 
Total equity   1,241,463    1,392,692    227,566 
Total liabilities and equity   2,986,276    3,290,992    537,744 
                
                

 

5
 

 

CHINA CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Six Months ended September 30, 2012 and 2013

 

 

   Three months ended September 30,   Six months ended September 30, 
   2012   2013   2012   2013 
   RMB   RMB   US$   RMB   RMB   US$ 
   (in thousands except share data) 
                         
Revenues   128,462    141,635    23,143    243,792    270,356    44,176 
Direct costs   (27,057)   (27,360)   (4,471)   (51,446)   (51,852)   (8,473)
Gross profit   101,405    114,275    18,672    192,346    218,504    35,703 
Operating expenses                              
Research and development   (1,860)   (2,310)   (377)   (4,123)   (4,833)   (790)
Sales and marketing   (23,517)   (27,633)   (4,515)   (42,737)   (56,057)   (9,160)
General and administrative   (28,984)   (28,042)   (4,582)   (54,044)   (55,444)   (9,059)
Total operating expenses   (54,361)   (57,985)   (9,474)   (100,904)   (116,334)   (19,009)
Operating income   47,044    56,290    9,198    91,442    102,170    16,694 
Other expense, net                              
Interest income   3,859    4,312    705    7,188    8,494    1,388 
Interest expense   (14,089)   (16,461)   (2,690)   (24,265)   (31,219)   (5,101)
Exchange gain/(loss)   41    69    11    51    (55)   (9)
Dividend income   -    -    -    2,420    8,722    1,425 
Others   (1,002)   514    84    (766)   1,044    171 
Total other expense, net   (11,191)   (11,566)   (1,890)   (15,372)   (13,014)   (2,126)
Income before income tax   35,853    44,724    7,308    76,070    89,156    14,568 
Income tax expense   (8,466)   (19,706)   (3,220)   (14,801)   (31,079)   (5,078)
Net income   27,387    25,018    4,088    61,269    58,077    9,490 
Net income attributable to non-controlling interests   (2,692)   (114)   (19)   (5,481)   (267)   (44)
Net income attributable to China Cord Blood Corporation’s shareholders   24,695    24,904    4,069    55,788    57,810    9,446 
                               
Net income per share:                              
Attributable to ordinary shares                              
- Basic   0.34    0.33    0.05    0.75    0.73    0.12 
- Diluted   0.34    0.33    0.05    0.75    0.73    0.12 
                               
Other comprehensive income                              
- Net effect of foreign currency translation, net of nil tax   (1,007)   2,789    456    (2,424)   9,594    1,568 
- Net unrealized gain/(loss) in available-for-sale equity securities, net of nil tax   2,624    59,220    9,676    (19,950)   83,558    13,653 
Comprehensive income   29,004    87,027    14,220    38,895    151,229    24,711 
                               
Comprehensive income attributable to non-controlling interests   (2,672)   (114)   (19)   (5,459)   (267)   (44)
Comprehensive income attributable to China Cord Blood Corporation’s shareholders   26,332    86,913    14,201    33,436    150,962    24,667 
                               

 

6
 

 

Other Events

 

On November 14, 2013, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and six months ended September 30, 2013. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No. Description
99.1 Press Release, dated November 14, 2013
   

 

 

7
 

 

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 14, 2013

 

8