HONG KONG, Sept. 15 /PRNewswire-Asia-FirstCall/ -- China
Cord Blood Corporation ("CCBC" or "the Company") (NYSE: CO), the
first and largest cord blood bank operator in China today announced that the Company has
entered into a framework agreement to form an indirect non-wholly
owned subsidiary with the Zhejiang Provincial Blood Center. Through
the new entity, the Company will obtain its fourth exclusive
license to conduct private and public cord blood stem cell storage
services in China. The new entity
will enable CCBC to operate exclusively in the Zhejiang province, a new and previously
untapped geographic area in China.
According to the framework agreement, CCBC will own 90% of the
new entity via a cash investment of RMB45
million ($6.6 million). The
Company's internal cash reserves will fund the investment. The
remaining 10% will be satisfied by Zhejiang Provincial Blood Center
and secured through the contribution of physical assets. The
registration and regulatory application for the new entity will
commence immediately.
Under the "One license per region policy" in China, only one cord blood bank license is
granted in each province or municipality. The exclusive
Zhejiang cord blood bank license
represents the seventh license issued in China and it will be the first license issued
since early 2008. In China, CCBC
is the only cord blood operator with multiple licenses and of the
seven licenses issued, CCBC owns the licenses to operate
exclusively in Beijing
municipality and in Guangdong
province. The Company also has a 19.9% minority equity interest in
the exclusive operator in Shandong
province, and now will form the subsidiary to operate exclusively
in the Zhejiang province.
"Our entry into Zhejiang
province marks a major expansion in our nationwide coverage," said
Ms. Ting Zheng, Chairperson and CEO of China Cord Blood
Corporation. "Zhejiang province is
one of the most affluent regions in China with over 520,000 new births per annum,
and we expect to capitalize on this huge addressable market. Our
ability to obtain the Zhejiang
license speaks to our industry reputation and our leadership
position. Importantly, this is an accretive transaction for us and
it involves no acquisition premium as well."
Ms. Zheng continued, "We are confident that we can replicate our
success in Guangdong and
Beijing in the exciting
Zhejiang marketplace. Upon
completion, we will immediately start deploying our management
resources in an effort to facilitate the establishment of advance
infrastructure, early market education, and arouse public awareness
of the benefits of umbilical cord blood storage."
"In the meantime, we will continue to improve operational
efficiency and penetration within our local markets, and to explore
and evaluate new business opportunities, so that we can reward our
shareholders by delivering high and sustainable growth, as well as
becoming the most dominant operator in the Asia Pacific region."
Audio Webcast
The Company will hold a teleconference at 9:30 p.m. ET on Wednesday,
September 15, 2010 to 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://investor.chinacordbloodcorp.com/playerlink.zhtml?c=206671&s=wm&e=336868
6. 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 1-866-586-2813
for US callers or +852-800-965808 for Hong Kong callers, access code: 11204994.
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 bank operator
with multiple licenses. Under the current PRC government
regulations, only one licensed cord blood bank operator is
permitted to operate in each licensed region and only seven
licenses available 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 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.
For more information, please contact:
China Cord Blood Corporation
Ms. Joeling Law
Tel: +852-3605-8180
Email: ir@chinacordbloodcorp.com
ICR, LLC
In New York:
Ashley M. Ammon or Christine Duan
Tel: +1-646-277-1227
In Beijing:
Wen Lei Zheng
Tel: +86-10-6599-7968
SOURCE China Cord Blood Corporation
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