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 August 2011
 
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 this Report on 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 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; changing legislation or regulatory environments in the PRC; 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; 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; 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 consolidated financial results for the three months ended June 30, 2011 of the Company.
 
 
 

 

CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31 and June 30, 2011

  
   
March 31,
   
June 30,
 
   
2011
   
2011
 
   
RMB
   
RMB
   
US$
 
   
(in thousands except share data)
 
                   
ASSETS
                 
Current assets
                 
Cash and cash equivalents
    611,387       643,088       99,495  
Accounts receivable, less allowance for doubtful accounts
                       
(March 31, 2011: RMB11,850; June 30, 2011: RMB11,485)
    77,402       79,285       12,266  
Inventories
    6,729       7,686       1,189  
Prepaid expenses and other receivables
    9,982       45,114       6,979  
Trading securities
    -       357       55  
Income tax recoverable
    -       8,174       1,265  
Deferred tax assets
    5,373       5,040       780  
Total current assets
    710,873       788,744       122,029  
Property, plant and equipment, net
    250,348       244,800       37,874  
Non-current prepayments
    5,752       7,133       1,104  
Non-current accounts receivable, less allowance for doubtful accounts
                       
(March 31, 2011: RMB28,106; June 30, 2011: RMB30,403)
    240,952       247,209       38,247  
Inventories
    31,600       32,389       5,011  
Intangible assets, net
    134,412       133,257       20,617  
Available-for-sale equity securities
    52,733       16,688       2,582  
Other investments
    134,363       164,401       25,435  
Deferred tax assets
    2,565       3,072       475  
Total assets
    1,563,598       1,637,693       253,374  
                         
LIABILITIES
                       
Current liabilities
                       
Bank loan
    45,000       45,000       6,962  
Accounts payable
    5,046       5,919       916  
Accrued expenses and other payables
    106,731       114,026       17,640  
Deferred revenue
    82,319       80,565       12,465  
Amounts due to related parties
    360       720       111  
Income tax payable
    11,156       6,778       1,049  
Total current liabilities
    250,612       253,008       39,143  
Deferred revenue
    162,668       195,018       30,172  
Other non-current liabilities
    30,036       36,795       5,693  
Deferred tax liabilities
    26,890       26,238       4,059  
Total liabilities
    470,206       511,059       79,067  
   
EQUITY
                 
Shareholders’ equity
                 
Ordinary shares
                 
- US$0.0001 par value, 250,000,000 shares authorized, 75,406,875 shares and 75,261,474 shares issued and outstanding as of March 31, 2011 and June 30, 2011, respectively
    52       51       8  
Additional paid-in capital
    910,316       907,161       140,351  
Accumulated other comprehensive loss
    (18,580 )     (25,129 )     (3,888 )
Retained earnings
    178,993       219,015       33,885  
Total shareholders’ equity
    1,070,781       1,101,098       170,356  
Noncontrolling interests
    22,611       25,536       3,951  
Total equity
    1,093,392       1,126,634       174,307  
Total liabilities and equity
    1,563,598       1,637,693       253,374  
 
 
 

 

 CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, 2010 and 2011


   
Three months ended June 30,
 
   
2010
   
2011
 
   
RMB
   
RMB
   
US$
 
   
(in thousands except per share)
 
Revenues
    71,696       87,458       13,531  
Direct costs
    (17,252 )     (19,868 )     (3,074 )
Gross profit
    54,444       67,590       10,457  
Operating expenses
                       
Research and development
    (1,543 )     (1,777 )     (275 )
Sales and marketing
    (10,090 )     (12,606 )     (1,950 )
General and administrative
    (19,456 )     (22,455 )     (3,475 )
Total operating expenses
    (31,089 )     (36,838 )     (5,700 )
Operating income
    23,355       30,752       4,757  
Other income, net
                       
Interest income
    2,451       3,139       486  
Interest expense
    (606 )     (460 )     (71 )
Exchange (loss)/gain
    (237 )     96       15  
Dividend income
    -       7,217       1,117  
Others
    114       214       33  
Total other income, net
    1,722       10,206       1,580  
Income before income tax
    25,077       40,958       6,337  
Income tax (expense)/credit
    (6,110 )     1,783       276  
Net income
    18,967       42,741       6,613  
Income attributable to noncontrolling interests
    (1,381 )     (2,719 )     (421 )
Net income attributable to shareholders
    17,586       40,022       6,192  
                         
Net income per share:
                       
-Basic
    0.26       0.53       0.08  
-Diluted
    0.26       0.53       0.08  
 
 
 

 

Other Events
 
On August 29, 2011, the Company issued a press release announcing preliminary unaudited consolidated financial results for the three months ended June 30, 2011. A copy of the press release is attached as Exhibit 99.1.
 
Exhibits
  
Exhibit No.
 
Description
     
99.1
 
Press Release, dated August 29, 2011
    
 
 

 

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 29, 2011
 
 
 

 
Unassociated Document
 
 
China Cord Blood Corporation Reports
Financial Results for the First Quarter of Fiscal 2012
 
1Q12 Revenue Up 22.0% YOY to RMB87.5 Million
1Q12 Net Income Attributable to Shareholders Up 127.6% YOY to RMB40.0 Million
Conference Call to be Held August 30, 2011 at 8:00 am ET

HONG KONG, China, August 29, 2011 — China Cord Blood Corporation (NYSE: CO) (“CCBC” or the “Company”), China’s leading provider of cord blood collection, laboratory testing, hematopoietic stem cell processing, and stem cell storage services, today announced its preliminary unaudited financial results for the first quarter of fiscal year 2012, which ended June 30, 2011.

First Quarter of Fiscal 2012 Highlights

 
·
Revenue for the first quarter of fiscal 2012 increased by 22.0% to RMB87.5 million ($13.5 million) from RMB71.7 million in the prior year period.
 
·
New subscriber sign-ups and accumulated subscriber base reached 12,828 and 198,658, respectively.
 
·
Gross profit increased by 24.1% to RMB67.6 million ($10.5 million) from RMB54.4 million from the prior year period.
 
·
Gross margin was 77.3%, compared to 75.9% for the prior year period.
 
·
Operating income increased by 31.7% to RMB30.8 million ($4.8 million) from RMB23.4 million for the prior year period.
 
·
Net income attributable to shareholders, inclusive of dividend income of RMB7.2 million ($1.1 million) from Shandong Cord Blood Bank and effect of the preferential tax treatment obtained by the Guangdong subsidiary resulting in a discrete tax benefit of RMB10.2 million ($1.6 million), was RMB40.0 million ($6.2 million), compared to RMB17.6 million in the prior year period.
 
“Our first quarter delivered strong financial performance driven by sustained growth in subscriber demand year-over-year following the upward price adjustment implemented in April 2011,” stated Ms. Zheng, Chairperson and Chief Executive Officer of CCBC.  “Our strategy to develop a strong sales network while broadening our commercial reach has built a widely-recognized brand and an easily accessible network that will greatly facilitate our efforts to attract new subscribers.”

“In addition to solid financial performance, this quarter had several exciting developments,” Ms. Zheng further commented.  “The Ministry of Health has issued new guidelines extending the ‘Ten Licenses Policy’, which reiterated that no more than ten licenses will be issued for the provision of cord blood banking services through 2015.  We welcome the policy extension as it sets a clear guideline for the industry and the general public.  With access to three licenses and our 19.92% investment in Shandong Cord Blood Bank, we are fully committed to the development of the cord blood banking industry in China and will continue to grow by driving subscriber penetration rates.  We are also pleased that our Guangdong subsidiary has been approved as a ‘High and New Technology Enterprise’, with the result that it now enjoys a reduced tax rate of 15% until December 31, 2012.”
 
 
 

 
 
 
Summary – The Quarters Ended June 30, 2010 and 2011

   
Three Months Ended
 
   
June 30,
 
   
2010
   
2011
 
 (in thousands)
 
RMB
   
RMB
   
USD
 
Revenue
    71,696       87,458       13,531  
Gross Profit
    54,444       67,590       10,457  
Operating Income
    23,355       30,752       4,757  
Net Income Attributable to Shareholders
    17,586       40,022       6,192  
EPS                        
– Basic (RMB/USD Cents)
    0.26       0.53       0.08  
                         
Revenue Breakdown (%)
                       
Processing Fee
    79.1     74.2        
Storage Fee
    20.9     25.8        
                         
New Subscribers (persons)
    12,180       12,828          
Accumulated Total Number of Subscribers (persons)
    141,492       198,658          
 
First Quarter Fiscal 2012 Financial Results

REVENUE.  Revenue increased by 22.0% to RMB87.5 million ($13.5 million) in the first quarter of fiscal 2012 from RMB71.7 million in the prior year period.  The strong revenue growth was driven by continued growth in new subscribers and an increase in the Company’s processing fee implemented in April 2011.

Revenue generated from processing fees increased to RMB64.9 million ($10.0 million) from RMB56.7 million in the prior year period, reflecting 12,828 new subscriber sign-ups this quarter, a 5.3% increase in new subscribers from the prior year period, as well as the effect of the processing fee increase.

Revenue generated from storage fees increased to RMB22.6 million ($3.5 million) from RMB15.0 million, which accounted for 25.8% of the total first quarter revenue as compared to 20.9% in the prior year period.  The Company’s accumulated subscriber base grew 40.4% year-over-year to 198,658, backed by continued strong demand from the Beijing and Guangdong markets.

GROSS PROFIT.  Gross profit in the first quarter increased by 24.1% to RMB67.6 million ($10.5 million) from RMB54.4 million in the prior year period.  Gross margin reached 77.3%, primarily reflecting greater revenue contribution from higher margin storage fees.

OPERATING INCOME.  Operating income for the first quarter increased 31.7% to RMB30.8 million ($4.8 million) from RMB23.4 million in the prior year period, driven by economies of scale, successful cost control measures, and the sustained subscriber base growth.  Operating margin rose 260 basis points to 35.2% from 32.6% in the prior year period.  Depreciation and amortization expenses for the first quarter were RMB7.1  million ($1.1  million).

Research and Development Expenses.  Research and development expenses were RMB1.8 million ($0.3 million), compared to RMB1.5 million in the prior year period.

Sales and Marketing Expenses.  Sales and marketing expenses increased by 24.9% to RMB12.6 million ($2.0 million) from RMB10.1 million from the prior year period as the Company continued to roll-out marketing and promotional activities in the Beijing Municipality and Guangdong Province to further drive greater market penetration.  Sales and marketing expenses accounted for 14.4% of revenue.
 
 
 

 
 
 
General and Administrative Expenses.  General and administrative expenses were RMB22.5 million ($3.5 million), compared to RMB19.5 million in the prior year period.  General and administrative expenses as a percentage of revenue dropped to 25.7% as compared to 27.1% during the prior year period, as a result of effective cost control measures and strong revenue performance which led revenue growth to outpace general and administrative expenses growth.

OTHER INCOME. The Company received dividend income of RMB7.2 million ($1.1 million) in the first quarter of fiscal 2012 from the investment in Shandong Cord Blood Bank, in which the Company has accounted for the investment under cost method.

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS.  Aside from the solid growth in operating income and the first-time dividend income from Shandong Cord Blood Bank, the Company also recorded a discrete tax benefit of RMB10.2 million ($1.6 million) pursuant to the award of preferential tax treatment for the Company’s Guangdong subsidiary in June 2011, which is effective retroactively from January 1, 2010.  As a result, net income attributable to shareholders for the first quarter of fiscal 2012 rose 127.6% to RMB40.0 million ($6.2 million) from RMB17.6 million for the prior year period.  Net margin for the first quarter of fiscal 2012 was 45.8%.  Basic earnings per share for the first quarter of fiscal 2012 were RMB0.53 ($0.08).

LIQUIDITY. As of June 30, 2011, the Company had cash and cash equivalents of RMB643.1 million ($99.5 million) as compared to RMB611.4 million as of March 31, 2011.  The Company had bank loan borrowing of RMB45.0 million ($7.0 million) as of June 30, 2011.

“We are pleased with our financial performance as we rebranded ourselves as a “Premium Healthcare Service Provider” with a more favorable payment method and higher price points,” Ms. Zheng stated.  “We believe this new payment structure will improve our operating cash flow and further strengthen our liquidity position.  While we continue to monitor market reactions, the initial market response has been encouraging.  We believe strong demand for our services, coupled with our recurring revenue structure, will enable us to continue to expand margins and deliver higher profits for our shareholders.”

Ms. Zheng concluded, “We have consistently demonstrated our abilities to develop and penetrate the Beijing and Guangdong regions since entering into these key markets in China.  We have a highly-scalable business model with recurring revenues that will continue to grow in proportion to our expanding subscriber base.  In addition to enabling consistent growth, our unique model has also created escalating margins and attractive returns.  Beijing and Guangdong will provide a stable and profitable foundation that is enhanced by additional future growth potential as we expand into other regions in China.  Our exclusive access to multiple regions in China not only differentiates us from our peers but also grants us access to an addressable market of 1.8 million newborns per annum.  Going forward, we will continue to strive to enhance our operational efficiency, expand our profit margins, deepen market penetration, enhance brand recognition, optimize cost structure, and expand our subscriber base in our existing markets.  As a premium healthcare services provider, our management team is confident that we will continue to deliver long-term growth and consistent returns for our shareholders.”

 
 

 
 
 
Conference Call

The Company will hold a conference call at 8:00 a.m. ET on Tuesday, August 30, 2011 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 Company’s IR website at http://ir.chinacordbloodcorp.com.  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: 88154912.

About China Cord Blood Corporation

China Cord Blood Corporation is the first and largest cord blood banking operator in China in terms of geographical coverage and is the only cord blood banking operator with multiple licenses. Under current PRC government regulations, only one licensed cord blood banking operator is permitted to operate in each licensed region and only seven licenses have been authorized 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.

Safe Harbor Statement

This press release 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 press release 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 press release is issued, and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to confirm these statements to actual results, unless required by law.

The forward-looking statements included in this press release 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; changing legislation or regulatory environments in the PRC; 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; 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 China,  as well as general economic conditions; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission.
 
 
 

 
 

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars as of and for the first quarter fiscal 2012 were made at the noon buying rate of RMB6.4635 to $1.00 on June 30, 2011 in the City of New York for cable transfers in Renminbi per U.S. 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 U.S. dollar amounts referred to in this press release could have been or could be converted into U.S. 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]

ICR, Inc.
In New York: Ashley Ammon De Simone: 1-646-277-1227
In Beijing: Wen Lei Zheng: +86-10-6583-7510
 
 
 

 

EXHIBIT 1

CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31 and June 30, 2011


   
March 31,
   
June 30,
 
   
2011
   
2011
 
   
RMB
   
RMB
   
US$
 
   
(in thousands except share data)
 
                   
ASSETS
                 
Current assets
                 
Cash and cash equivalents
    611,387       643,088       99,495  
Accounts receivable, less allowance for doubtful accounts
                       
(March 31, 2011: RMB11,850; June 30, 2011: RMB11,485)
    77,402       79,285       12,266  
Inventories
    6,729       7,686       1,189  
Prepaid expenses and other receivables
    9,982       45,114       6,979  
Trading securities
    -       357       55  
Income tax recoverable
    -       8,174       1,265  
Deferred tax assets
    5,373       5,040       780  
Total current assets
    710,873       788,744       122,029  
Property, plant and equipment, net
    250,348       244,800       37,874  
Non-current prepayments
    5,752       7,133       1,104  
Non-current accounts receivable, less allowance for doubtful accounts
                       
(March 31, 2011: RMB28,106; June 30, 2011: RMB30,403)
    240,952       247,209       38,247  
Inventories
    31,600       32,389       5,011  
Intangible assets, net
    134,412       133,257       20,617  
Available-for-sale equity securities
    52,733       16,688       2,582  
Other investments
    134,363       164,401       25,435  
Deferred tax assets
    2,565       3,072       475  
Total assets
    1,563,598       1,637,693       253,374  
                         
LIABILITIES
                       
Current liabilities
                       
Bank loan
    45,000       45,000       6,962  
Accounts payable
    5,046       5,919       916  
Accrued expenses and other payables
    106,731       114,026       17,640  
Deferred revenue
    82,319       80,565       12,465  
Amounts due to related parties
    360       720       111  
Income tax payable
    11,156       6,778       1,049  
Total current liabilities
    250,612       253,008       39,143  
Deferred revenue
    162,668       195,018       30,172  
Other non-current liabilities
    30,036       36,795       5,693  
Deferred tax liabilities
    26,890       26,238       4,059  
Total liabilities
    470,206       511,059       79,067  
 
EQUITY
                 
Shareholders’ equity
                 
Ordinary shares
                 
- US$0.0001 par value, 250,000,000 shares authorized, 75,406,875 shares and 75,261,474 shares issued and outstanding as of March 31, 2011 and June 30, 2011, respectively
    52       51       8  
Additional paid-in capital
    910,316       907,161       140,351  
Accumulated other comprehensive loss
    (18,580 )     (25,129 )     (3,888 )
Retained earnings
    178,993       219,015       33,885  
Total shareholders’ equity
    1,070,781       1,101,098       170,356  
Noncontrolling interests
    22,611       25,536       3,951  
Total equity
    1,093,392       1,126,634       174,307  
Total liabilities and equity
    1,563,598       1,637,693       253,374  
 
 
 

 
 
EXHIBIT 2

 CHINA CORD BLOOD CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, 2010 and 2011


   
Three months ended June 30,
 
   
2010
   
2011
 
   
RMB
   
RMB
   
US$
 
   
(in thousands except per share)
 
Revenues
    71,696       87,458       13,531  
Direct costs
    (17,252 )     (19,868 )     (3,074 )
Gross profit
    54,444       67,590       10,457  
Operating expenses
                       
Research and development
    (1,543 )     (1,777 )     (275 )
Sales and marketing
    (10,090 )     (12,606 )     (1,950 )
General and administrative
    (19,456 )     (22,455 )     (3,475 )
Total operating expenses
    (31,089 )     (36,838 )     (5,700 )
Operating income
    23,355       30,752       4,757  
Other income, net
                       
Interest income
    2,451       3,139       486  
Interest expense
    (606 )     (460 )     (71 )
Exchange (loss)/gain
    (237 )     96       15  
Dividend income
    -       7,217       1,117  
Others
    114       214       33  
Total other income, net
    1,722       10,206       1,580  
Income before income tax
    25,077       40,958       6,337  
Income tax (expense)/credit
    (6,110 )     1,783       276  
Net income
    18,967       42,741       6,613  
Income attributable to noncontrolling interests
    (1,381 )     (2,719 )     (421 )
Net income attributable to shareholders
    17,586       40,022       6,192  
                         
Net income per share:
                       
-Basic
    0.26       0.53       0.08  
-Diluted
    0.26       0.53       0.08