China Cord Blood Corporation Announces
Framework Agreement Regarding Fourth License – Zhejiang Province
Enters New Province to Further Execute Geographic Expansion
HONG KONG, China, September 15, 2010 - 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 o