Unassociated Document
 

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 March 2010

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 the Company’s 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 expectations are as of the date this Form 6-K is filed, and the Company does not intend to update any of the forward-looking statements after the date this Report on Form 6-K is filed to confirm these statements to actual results, unless required by law.

The forward-looking statements included in this Form 6-K are subject to risks, uncertainties and assumptions about our businesses and business environments. These statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual results of our 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; changing legislation or regulatory environments; requirements or changes affecting the businesses in which the Company is engaged; industry trends, including factors affecting supply and demand; labor and personnel relations; credit risks affecting the Company’s revenue and profitability; changes in the healthcare industry; 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; general economic conditions; 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 unaudited consolidated financial results for the three months and nine months ended December 31, 2009 of China Cord Blood Corporation (the “Company”).

2


CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31 and March 31, 2009

   
December 31, 2009
   
March 31, 2009
 
   
US$
   
RMB
   
RMB
 
   
(in thousands except redemption value and number of shares)
 
ASSETS
                 
Current assets
                 
Cash and cash equivalents
    56,560       386,069       161,406  
Accounts receivable, less allowance for doubtful accounts
(December 31, 2009: RMB9,251; March 31, 2009: RMB 6,170)
    8,361       57,071       49,763  
Inventories
    843       5,757       6,501  
Prepaid expenses and other receivables
    1,511       10,312       7,978  
Deferred tax assets
    476       3,249       1,846  
Total current assets
    67,751       462,458       227,494  
Property, plant and equipment, net
    37,553       256,331       236,740  
Non-current prepayments and deposits
    1,735       11,846       27,184  
Non-current accounts receivable, less allowance for doubtful
accounts (December 31, 2009: RMB5,390; March 31, 2009: RMB2,223)
    24,007       163,872       91,761  
Inventories
    4,153       28,348       26,069  
Intangible asset, net
    3,888       26,540       27,268  
Available-for-sale equity securities
    8,780       59,932       26,242  
Deferred reverse recapitalization costs
    -       -       33,633  
Deferred tax assets
    89       609       -  
Total assets
    147,956       1,009,936       696,391  
                         
LIABILITIES
                       
Current liabilities
                       
Bank loan
    6,592       45,000       -  
Accounts payable
    1,274       8,693       5,128  
Accrued expenses and other payables
    2,853       19,472       19,269  
Deferred revenue
    5,135       35,049       18,351  
Amounts due to related parties
    384       2,621       -  
Income tax payable
    584       3,989       4,321  
Total current liabilities
    16,822       114,824       47,069  
Deferred revenue
    12,530       85,530       74,231  
Other non-current liabilities
    2,113       14,427       13,551  
Deferred tax liabilities
    414       2,827       4,017  
Total liabilities
    31,879       217,608       138,868  
                         
Commitments and contingencies
                       
Redeemable ordinary shares of China Cord Blood Services Corporation US$0.0001 par value, 14,614,140 shares issued and outstanding as of March 31, 2009 (redemption value of US$51,088,745 as of March 31, 2009)
    -       -       386,577  

3


CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31 and March 31, 2009 - (continued)
 
   
December 31, 2009
   
March 31, 2009
   
   
US$
   
RMB
   
RMB
   
   
(in thousands except redemption value and number of shares)
EQUITY
               
China Cord Blood Corporation shareholders’ equity
               
Ordinary shares US$0.0001 par value, 250,000,000 shares authorized, 43,237,100 shares and 66,182,726 shares issued and outstanding as of March 31, 2009 and December 31, 2009, respectively
    7       45       34  
Additional paid-in capital
    102,233       697,834       140,745  
Accumulated other comprehensive loss
    2,055       14,023       (19,319 )
Retained earnings
    10,425       71,161       44,082  
Total China Cord Blood Corporation shareholders’ equity
    114,720       783,063       165,542  
Noncontrolling interests
    1,357       9,265       5,404  
Total equity
    116,077       792,328       170,946  
Total liabilities, redeemable ordinary shares and equity
    147,956       1,009,936       696,391  
 
4

 
CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended December 31, 2009 and 2008

   
Three months ended
December 31,
   
Nine months ended
December 31,
 
   
2009
   
2008
   
2009
   
2008
 
   
US$
   
RMB
   
RMB
   
US$
   
RMB
   
RMB
 
   
(in thousands except per share)
 
                                     
Revenues
    10,095       68,905       55,795       27,941       190,731       137,730  
Direct costs
    (2,451 )     (16,727 )     (13,561 )     (7,415 )     (50,615 )     (35,736 )
Gross profit
    7,644       52,178       42,234       20,526       140,116       101,994  
Operating expenses
                                               
Sales and marketing
    (1,526 )     (10,416 )     (6,636 )     (3,945 )     (26,928 )     (21,683 )
General and administrative
    (2,442 )     (16,669 )     (10,718 )     (5,991 )     (40,896 )     (21,696 )
Total operating expenses
    (3,968 )     (27,085 )     (17,354 )     (9,936 )     (67,824 )     (43,379 )
Operating income
    3,676       25,093       24,880       10,590       72,292       58,615  
Other income/(expense), net
                                               
Interest income
    336       2,292       882       739       5,047       2,793  
Interest expense
    (102 )     (695 )     -       (265 )     (1,812 )     -  
Exchange gain/(loss)
    6       39       (107 )     88       602       (188 )
Write-off of deferred offering and reverse recapitalization costs
    -       -       215       (3,159 )     (21,566 )     (9,473 )
Impairment loss on available-for-sale equity securities
    -       -       (9,828 )     -       -       (37,426 )
Others
    (8 )     (51 )     1,809       48       326       663  
Total other income/(expense), net
    232       1,585       (7,029 )     (2,549 )     (17,403 )     (43,631 )
Income before income tax
    3,908       26,678       17,851       8,041       54,889       14,984  
Income tax expense
    (795 )     (5,431 )     (4,012 )     (2,574 )     (17,572 )     (11,810 )
Net income
    3,113       21,247       13,839       5,467       37,317       3,174  
Income attributable to redeemable noncontrolling interests
    -       -       -       (51 )     (347 )     -  
Income attributable to noncontrolling interests
    (183 )     (1,246 )     (1,003 )     (575 )     (3,922 )     (2,598 )
Net income attributable to China Cord Blood Corporation shareholders
    2,930       20,001       12,836       4,841       33,048       576  
                                                 
Net income/(loss) per share:
                                               
Attributable to ordinary shares
                                               
-Basic
    0.05       0.31       0.11       0.06       0.44       (0.32 )
-Diluted
    0.04       0.29       0.11       0.06       0.42       (0.32 )
Attributable to redeemable ordinary shares
                                               
-Basic
    N/A       N/A       0.54       0.24       1.65       0.98  
-Diluted
    N/A       N/A       0.54       0.24       1.62       0.98  

5


Other Events

On March 5, 2010, Company issued a press release announcing the unaudited consolidated financial results for the three months and nine months ended December 31, 2009. A copy of the press release is attached as Exhibit 99.1.

Exhibits

Exhibit No.
Description
   
99.1
Press Release, dated March 5, 2010

6

 
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: March 5, 2010
 
7

 
Unassociated Document

  

China Cord Blood Corporation Reports
Financial Results for Third Quarter and First Nine Months of Fiscal 2010

Revenue up 23.5% to RMB68.9 Million
New Subscriber Additions 19.6% Higher
Conference Call to be Held at 8:00 am ET March 5, 2010

Hong Kong, China, March 5, 2010 – China Cord Blood Corporation (“CCBC” or “the Company”) (NYSE: CO), China’s leading provider of cord blood collection, laboratory testing, hematopoietic stem cell processing, and stem cell storage services, today announced unaudited financial results for the third quarter and first nine months ended December 31, 2009.

Highlights
 
 
·
Net revenue in the third quarter of fiscal 2010 increased 23.5% year-over-year to RMB68.9 million (USD10.1 million) from RMB55.8 million in the third quarter of fiscal 2009.
 
 
·
New subscriber sign-ups during the third quarter of fiscal 2010 increased 19.6% to 11,771 subscribers from 9,842 in the third quarter of fiscal 2009.
 
 
·
Net income attributable to shareholders in the third quarter of fiscal 2010 increased 56.3% to RMB20.0 million (USD2.9 million) from RMB12.8 million year-on-year.
 
 
·
Net revenue in the first nine months of fiscal 2010 increased 38.5% to RMB190.7 million (USD27.9 million) from RMB137.7 million last year.
 
 
·
New subscriber sign-ups during the first nine months of fiscal 2010 increased 36.1% to 33,523 subscribers from 24,631 in the first nine months of fiscal 2009.
 
 
·
Net income attributable to shareholders for the first nine months of fiscal 2010 increased to RMB33.0 million (USD4.8 million) compared to RMB0.6 million in the first nine months of fiscal 2009.
 
 
·
On February 24, 2010, CCBC entered into agreement to acquire an effective interest of 19.92% in the Shandong Cord Blood Bank (“SCBB”), the exclusive cord blood bank operator for the Shandong province in China. Inclusive of the latest acquisition, the Company has gained exclusive strategic access into the Beijing municipality, Guangdong province and Shandong province, namely three of the six licenses issued by Ministry of Health of China.  China Government adopts one license per region policy which means license holder will be the exclusive operator providing cord blood services in these markets.
 

 
Summary - - The quarter and nine months ended December 31, 2009 and 2008

   
Three Months Ended December 31,
   
Nine Months Ended December 31,
 
   
2009
   
2008
   
2009
   
2008
 
   
USD(‘000)
   
RMB(‘000)
   
RMB(‘000)
   
USD(‘000)
   
RMB(‘000)
   
RMB(‘000)
 
                                     
Revenue
    10,095       68,905       55,795       27,941       190,731       137,730  
Gross Profit
    7,644       52,178       42,234       20,526       140,116       101,994  
Operating Income
    3,676       25,093       24,880       10,590       72,292       58,615  
Non-GAAP EBITDA
    4,320       29,485       27,362       12,627       86,196       64,450  
Net Income Attributable to China Cord Blood Corporation Shareholders
    2,930       20,001       12,836       4,841       33,048       576  
EPS Attributable to Ordinary Shares
                                               
– Basic (USD/RMB)
    0.05       0.31       0.11       0.06       0.44       (0.32 )
Non-GAAP EPS Attributable to Shareholders – Basic (USD/RMB)
    0.05       0.31       0.22       0.13       0.88       0.01  
                                                 
Revenue Breakdown (%)
                                               
Processing Fee
            81.4 %     85.2 %             82.2 %     84.0 %
Storage Fee
            18.4 %     14.1 %             17.3 %     15.1 %
                                                 
New Subscribers (persons)
            11,771       9,842               33,523       24,631  
Accumulated Total Number of Subscribers (persons)
            117,583       74,013               117,583       74,013  

“This is a very exciting time,” said Ms. Ting Zheng, China Cord Blood Corporation’s chairperson and chief executive officer. “We concluded the third quarter with remarkable results with record breaking new subscribers numbers.  The robust performance reflected the team capabilities to deepen market penetrations in our existing markets in an effective, efficient and lucrative manner. Leveraging the rising acceptance of umbilical cord blood banking, China’s single child policy and our dominant market presence, we expect our business will continue to flourish and we should capture a growing number of new subscribers.”

“Also, our Group has made tremendous progress to expand our geographical reach following the recently announced Shandong acquisition.  By acquiring a 19.92% equity interest and the right of first refusal, we open the doorway into Shandong province, which has approximately 1.1 million babies per annum. Together with our local partner, we will seize this opportunity and deploy our resources and market expertise to rapidly build out a significant presence in this affluent region of China.  Beijing, Guangdong and Shandong together have a market size of 2.1 million new born babies per annum.”
 
2

 
Third Quarter Fiscal 2010 Financial Results

Net revenue for the third quarter of fiscal 2010 increased 23.5% to RMB68.9 million (USD10.1 million) from RMB55.8 million in the third quarter of fiscal 2009. Net revenue generated from processing fees increased 18.1% year-over-year to RMB56.1 million (USD8.2 million), tracking a 19.6% increase in new subscribers to 11,771 from 9,842 from last year. Net revenue from storage fees increased 60.8% year-over-year to RMB12.7 million (USD1.9 million) from RMB 7.9 million on the back of a 58.9% increase in the total subscriber base to 117,583 subscribers, compared to 74,013 subscribers last year.  Processing fees and storage fees for the third quarter of fiscal 2010 accounted for 81.4% and 18.4% of net revenue, respectively, compared to 85.2% and 14.1% for the prior year period.

For the third quarter of fiscal 2010, gross profit increased 23.7% to RMB52.2 million (USD7.6 million) from RMB42.2 million in the prior year period, due primarily to rising new subscriber numbers. The 75.7% gross margin was similar to the same period last year.

Sales and marketing expense was RMB10.4 million (USD1.5 million) in the third quarter of fiscal 2010 compared to RMB6.6 million for the prior year period. Third quarter sales and marketing expense as a percentage of revenue was 15.1%, up from 11.9% last year but similar on a quarter-on-quarter basis.

Administrative expense increased to RMB16.7 million (USD2.4 million) compared to RMB10.7 million in the prior year period in light of the Group’s business expansion and the commencement of the new Beijing and Guangdong facilities and the increase in corporate overhead.

Operating income for the third quarter of fiscal 2010 was RMB25.1 million (USD3.7 million) compared to RMB24.9 million for the same period last year.  Operating margin for the quarter was 36.4% compared to 44.6% in the prior year period. The decline in operating margin was largely attributable to the commencement of new Beijing storage facilities in April 2009 and the increase in administrative expense, related to legal and professional fees associated with being a newly public company.

Non-GAAP EBITDA in the third quarter increased 7.8% to RMB29.5 million (USD4.3 million).

Net income attributable to shareholders for the third quarter of fiscal 2010 increased 56.3% to RMB20.0 million (USD2.9 million) from RMB12.8 million for the prior year period. Net margin for the third quarter of fiscal 2010 increased to 29.0% from 23.0% in the prior year period.

Basic earnings per share and fully diluted earnings per share for third quarter of fiscal 2010 were RMB0.31 (USD0.05) and RMB0.29 (USD0.04), respectively.

Non-GAAP EPS for the third quarter amounted to RMB0.31 (USD0.05), up from RMB0.22 in the prior year period.

As of December 31, 2009, the Company had cash and cash equivalents of RMB386.1 million (USD56.6 million), compared to RMB161.4 million as of March 31, 2009.

Ms. Ting Zheng continued, “Adding the Shandong cord blood bank license, we now have direct access into the top three regions licensed for cord blood banking services. The acquisition of Shandong cord blood bank illustrated our execution capabilities beyond Beijing and Guangdong regions, and more importantly, it is a recognition of the Company as the market leader in the industry.  This will pave the way for future corporate developments in China and the Asia Pacific region.”
 
3

 
Nine Months Fiscal 2010 Financial Results

First nine months of fiscal 2010, net revenue increased 38.5% to RMB190.7 million (USD27.9 million), from RMB137.7 million last year. During the first nine months of fiscal 2010, new subscribers sign-up increased by 36.1% to 33,523 new subscribers from 24,631 subscribers in the prior year period.  Gross profit for first nine months of fiscal 2010 increased 37.4% to RMB140.1 million (USD20.5 million) from RMB102.0 million in the prior year period.  For the first nine months of fiscal 2010, operating income increased 23.3% to RMB72.3 million (USD10.6 million). Net income attributable to shareholders in the same period was RMB33.0 million (USD4.8 million) compared to RMB0.6 million in the prior year period. Basic earnings per share and fully diluted earnings per share attributable to ordinary shares were RMB0.44 (USD0.06) and RMB0.42 (USD0.06), respectively. Non-GAAP EBITDA increased 33.7% to RMB86.2 million (USD12.6 million).

Financial Outlook

The Company expects total number of new subscribers for the 2010 fiscal year to increase by approximately 30% year-over-year or no less than 45,000 new subscribers which is expected to translate into not less than a 30% increase in total net revenue.  Management also expects accumulated total number of subscribers will be at least 129,000 by March 31, 2010. In addition to organic growth on the existing markets, the Company plans to continue to pursue any opportunities with existing licensees and license applicants for potential acquisitions. The Company’s practice is to provide guidance on a full year basis only. Such expectations reflect the Company’s current and preliminary views, which are subject to change and the Company does not undertake any responsibility to update or correct any such forward-looking information.

Conference Call

The Company will hold a teleconference at 8:00 a.m. EST on Friday, March 5, 2010 to discuss its financial performance and give a brief overview of the Company’s recent developments, followed by a question and answer session.

Interested parties may access the audio webcast through the following link: http://phx.corporate-ir.net/playerlink.zhtml?c=206671&s=wm&e=2770193.  A replay of the webcast will be accessible two hours after the presentation and available for three weeks at the same URL link above.  Listeners may also access the call by dialing 1-718-354-1231 or 1-866-519-4004 for US callers or +852-2475-0994 for Hong Kong callers, access code: 59252599.

About China Cord Blood Corporation

China Cord Blood Corporation is the first and the largest cord blood banking operator in China in terms of geographical coverage and is the only cord blood bank operator with more than one license (i.e., Beijing, Guangdong and Shandong).  Under the current PRC government regulations, only one licensed cord blood bank operator is permitted to operate in each licensed region and only six licenses have been issued as of today.  China Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing, and stem cell storage services.  For more information, please visit our website at http://www.chinacordbloodcorp.com.
 
4

 
Non-GAAP Disclosure

Non-GAAP basic earnings attributable to shareholders represents a pro forma adjustment to the number of ordinary shares outstanding for all periods to reflect the conversion of certain redeemable shares into ordinary shares in June 2009.  This is effected by adding income attributable to redeemable noncontrolling interest back to GAAP net income attributable to shareholders and divides by proforma weighted average ordinary shares issued and outstanding. Proforma weighted average ordinary shares issued and outstanding is the sum of weighted average ordinary shares issued and outstanding and assumes all redeemable shares are exchanged into ordinary shares at the beginning of the period.

Non-GAAP EBITDA represents operating income excluding acquired intangible assets amortization expense and depreciation expense. We have presented EBITDA because we consider it an important supplemental measure of our performance and believe it is frequently used by analysts, investors and other interested parties in the evaluation of companies in our industry. Management uses EBITDA as a measurement tool for evaluating our actual operating performance compared to budget and prior periods. Other companies in our industry may calculate EBITDA differently than we do, basing the determination on net income before net interest expense, income tax expense (benefit), depreciation and amortization. EBITDA is not a measure of performance under generally accepted accounting principles (GAAP) and should not be considered as a substitute for net income prepared in accordance with GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. The non-GAAP measures described by the Company are reconciled to the corresponding GAAP measure in the exhibits below titled “Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures” and “Reconciliations of non-GAAP EPS to the nearest comparable GAAP measures”.

The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to its historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to the supplemental information used by management in its financial and operational decision making.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, performance and results of operations, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
 
5

 
This announcement contains translations of certain Renminbi amounts into US dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US dollars as of and for the third quarter and first nine months of fiscal 2010 were made at the noon buying rate of RMB6.8259 to USD1.00 on December 31, 2009 in the City of New York for cable transfers in Renminbi per US dollar as certified for customs purposes by the Federal Reserve Bank of New York. China Cord Blood Corporation makes no representation that the Renminbi or US dollar amounts referred to in this press release could have been or could be converted into US dollars or Renminbi, at any particular rate or at all.

For more information, please contact:

China Cord Blood Corporation
Ms. Joeling Law
Tel: 852-3605-8180
Email: [email protected]

Integrated Corporate Relations, Inc.
In New York: Ashley M. Ammon or Christine Duan: 1-646-277-1227
In Beijing: Wei-Jung Yang: 86-10-6599-7968
 
6

 
Exhibit 1

CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31 and March 31, 2009

   
December 31, 2009
   
March 31, 2009
 
   
US$
   
RMB
   
RMB
 
   
(in thousands except redemption
value and number of shares)
 
ASSETS
                 
Current assets
                 
Cash and cash equivalents
    56,560       386,069       161,406  
Accounts receivable, less allowance for doubtful accounts
(December 31, 2009: RMB9,251; March 31, 2009: RMB 6,170)
    8,361       57,071       49,763  
Inventories
    843       5,757       6,501  
Prepaid expenses and other receivables
    1,511       10,312       7,978  
Deferred tax assets
    476       3,249       1,846  
Total current assets
    67,751       462,458       227,494  
Property, plant and equipment, net
    37,553       256,331       236,740  
Non-current prepayments and deposits
    1,735       11,846       27,184  
Non-current accounts receivable, less allowance for doubtful accounts (December 31, 2009: RMB5,390; March 31, 2009: RMB2,223)
    24,007       163,872       91,761  
Inventories
    4,153       28,348       26,069  
Intangible asset, net
    3,888       26,540       27,268  
Available-for-sale equity securities
    8,780       59,932       26,242  
Deferred reverse recapitalization costs
    -       -       33,633  
Deferred tax assets
    89       609       -  
Total assets
    147,956       1,009,936       696,391  
                         
LIABILITIES
                       
Current liabilities
                       
Bank loan
    6,592       45,000       -  
Accounts payable
    1,274       8,693       5,128  
Accrued expenses and other payables
    2,853       19,472       19,269  
Deferred revenue
    5,135       35,049       18,351  
Amounts due to related parties
    384       2,621       -  
Income tax payable
    584       3,989       4,321  
Total current liabilities
    16,822       114,824       47,069  
Deferred revenue
    12,530       85,530       74,231  
Other non-current liabilities
    2,113       14,427       13,551  
Deferred tax liabilities
    414       2,827       4,017  
Total liabilities
    31,879       217,608       138,868  
                         
Commitments and contingencies
                       
Redeemable ordinary shares of China Cord Blood Services Corporation US$0.0001 par value, 14,614,140 shares issued and outstanding as of March 31, 2009 (redemption value of US$51,088,745 as of March 31, 2009)
    -       -       386,577  

7


Exhibit 1 – continued

CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31 and March 31, 2009 - (continued)
 
   
December 31, 2009
   
March 31, 2009
   
   
US$
   
RMB
   
RMB
   
   
(in thousands except redemption
value and number of shares)
EQUITY
               
China Cord Blood Corporation shareholders’ equity
               
Ordinary shares US$0.0001 par value, 250,000,000 shares authorized, 43,237,100 shares and 66,182,726 shares issued and outstanding as of March 31, 2009 and December 31, 2009, respectively
    7       45       34  
Additional paid-in capital
    102,233       697,834       140,745  
Accumulated other comprehensive loss
    2,055       14,023       (19,319 )
Retained earnings
    10,425       71,161       44,082  
Total China Cord Blood Corporation shareholders’ equity
    114,720       783,063       165,542  
Noncontrolling interests
    1,357       9,265       5,404  
Total equity
    116,077       792,328       170,946  
Total liabilities, redeemable ordinary shares and equity
    147,956       1,009,936       696,391  

 
8

 
Exhibit 2

CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended December 31, 2009 and 2008

   
Three months ended
December 31,
   
Nine months ended
December 31,
 
   
2009
   
2008
   
2009
   
2008
 
   
US$
   
RMB
   
RMB
   
US$
   
RMB
   
RMB
 
   
(in thousands except per share)
 
                                     
Revenues
    10,095       68,905       55,795       27,941       190,731       137,730  
Direct costs
    (2,451 )     (16,727 )     (13,561 )     (7,415 )     (50,615 )     (35,736 )
Gross profit
    7,644       52,178       42,234       20,526       140,116       101,994  
Operating expenses
                                               
Sales and marketing
    (1,526 )     (10,416 )     (6,636 )     (3,945 )     (26,928 )     (21,683 )
General and administrative
    (2,442 )     (16,669 )     (10,718 )     (5,991 )     (40,896 )     (21,696 )
Total operating expenses
    (3,968 )     (27,085 )     (17,354 )     (9,936 )     (67,824 )     (43,379 )
Operating income
    3,676       25,093       24,880       10,590       72,292       58,615  
Other income/(expense), net
                                               
Interest income
    336       2,292       882       739       5,047       2,793  
Interest expense
    (102 )     (695 )     -       (265 )     (1,812 )     -  
Exchange gain/(loss)
    6       39       (107 )     88       602       (188 )
Write-off of deferred offering and reverse recapitalization costs
    -       -       215       (3,159 )     (21,566 )     (9,473 )
Impairment loss on available-for-sale equity securities
    -       -       (9,828 )     -       -       (37,426 )
Others
    (8 )     (51 )     1,809       48       326       663  
Total other income/(expense), net
    232       1,585       (7,029 )     (2,549 )     (17,403 )     (43,631 )
Income before income tax
    3,908       26,678       17,851       8,041       54,889       14,984  
Income tax expense
    (795 )     (5,431 )     (4,012 )     (2,574 )     (17,572 )     (11,810 )
Net income
    3,113       21,247       13,839       5,467       37,317       3,174  
Income attributable to redeemable noncontrolling interests
    -       -       -       (51 )     (347 )     -  
Income attributable to noncontrolling interests
    (183 )     (1,246 )     (1,003 )     (575 )     (3,922 )     (2,598 )
Net income attributable to China Cord Blood Corporation shareholders
    2,930       20,001       12,836       4,841       33,048       576  
                                                 
Net income/(loss) per share:
                                               
Attributable to ordinary shares
                                               
-Basic
    0.05       0.31       0.11       0.06       0.44       (0.32 )
-Diluted
    0.04       0.29       0.11       0.06       0.42       (0.32 )
Attributable to redeemable ordinary shares
                                               
-Basic
    N/A       N/A       0.54       0.24       1.65       0.98  
-Diluted
    N/A       N/A       0.54       0.24       1.62       0.98  

9

 
Exhibit 3

CHINA CORD BLOOD CORPORATION

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures

   
Three months Ended
   
Three months Ended
   
Three months Ended
   
Nine months Ended
   
Nine months Ended
   
Nine months Ended
 
   
Dec 31,
2009
   
Dec 31,
2009
   
Dec 31,
2008
   
Dec 31,
2009
   
Dec 31,
2009
   
Dec 31,
2008
 
                                     
   
US$ (‘000)
   
RMB (‘000)
   
RMB (‘000)
   
US$ (‘000)
   
RMB (‘000)
   
RMB (‘000)
 
                                     
GAAP Operating Income
    3,676       25,093       24,880       10,590       72,292       58,615  
Depreciation
    608       4,149       2,239       1,930       13,176       5,107  
Amortization
    36       243       243       107       728       728  
Earnings before interest, tax, depreciation and amortization (“Non -GAAP EBITDA”)
    4,320       29,485       27,362       12,627       86,196       64,450  

10


Exhibit 4

CHINA CORD BLOOD CORPORATION

Reconciliations of non-GAAP EPS to the nearest comparable GAAP measures

   
3 Months Ended Dec 2009
   
3 Months Ended Dec 2008
   
9 Months Ended Dec 2009
   
9 Months Ended Dec 2008
 
                         
NUMERATOR (‘RMB’000)
                       
GAAP net income attributable to China Cord Blood Corporation shareholders
    20,001       12,836       33,048       576  
Pro forma adjustments
                               
Income attributable to redeemable noncontrolling interest
    -       -       347       -  
Write-off of deferred reverse recapitalization costs
    -       -       21,566       -  
                                 
Non-GAAP net income attributable to shareholders
    20,001       12,836       54,961       576  
                                 
DENOMINATOR (‘000 shares)
                               
Weighted average ordinary shares issued and outstanding
    64,377       43,237       56,252       43,237  
Add:
                               
Issue of ordinary shares upon share exchange with ordinary shareholders of China Cord Blood Services Corporation In June 2009
    -       12,476       4,159       12,476  
Add:
                               
Issue of ordinary shares for redeemable share exchange in Aug 2009
    -       3,506       1,719       3,506  
Pro forma weighted average ordinary shares issued and outstanding
    64,377       59,219       62,130       59,219  
Non-GAAP basic earnings attributable to shareholders (RMB)
    0.31       0.22       0.88       0.01  
Non-GAAP basic earnings attributable to shareholders (US$)
    0.05       0.03       0.13       0.00  

11