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CO Global Cord Blood

Filed: 30 Aug 21, 4:25pm

 

 

 

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 2021

 

Commission File Number: 001-34541

 

GLOBAL 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): ¨

 

 

 

 

 

 

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 Global 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 conform 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: the ongoing impact of 2019 novel coronavirus (“COVID-19”), including the partial lockdowns implemented in various cities in the PRC and the imposition by some hospitals in the PRC of restrictions on entrance to solely to hospital staff and patients; levels of consumer confidence in the healthcare services sector generally in the PRC as a result of the outbreak; the length of the COVID-19 outbreak and severity of such outbreak across the globe; the pace of recovery following the COVID-19 outbreak; 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 (including but not limited to cord blood license related regulations, Biosecurity laws, antitrust laws) 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 maintaining 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 legislative developments affecting U.S. listed issuers whose independent registered public accounting firms are based in the PRC and not subject to U.S. Public Company Accounting Oversight Board inspections, international pressure on trade and currency against the PRC and its potential impact on the PRC consumer behavior, as well as general economic conditions; the non-binding proposal letter from Alternate Ocean Investment Company Limited and the potential transaction contemplated by such letter, and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission in the United States.

 

 

 

 

Results of Operations and Financial Condition

 

Following this cover page are the unaudited condensed consolidated financial results for the three months ended June 30, 2021 of the Company.

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and June 30, 2021

 

  March 31,  June 30, 
  2021  2021 
  RMB  RMB  US$ 
  (in thousands except share data) 
ASSETS            
Current assets            
Cash and cash equivalents  6,075,798   6,237,406   966,051 
Accounts receivable, less allowance for credit losses (March 31, 2021: RMB137,961; June 30, 2021: RMB147,293 (US$22,813))  130,298   135,415   20,973 
Inventories  44,257   36,960   5,724 
Prepaid expenses and other receivables  47,788   66,912   10,363 
Total current assets  6,298,141   6,476,693   1,003,111 
Property, plant and equipment, net  498,656   488,803   75,706 
Operating lease right-of-use assets  5,039   4,504   698 
Non-current deposits  344,752   346,446   53,658 
Non-current accounts receivable, less allowance for credit losses (March 31, 2021: RMB67,095; June 30, 2021: RMB65,799 (US$10,191))  217,208   228,986   35,465 
Inventories  91,446   92,449   14,319 
Intangible assets, net  88,202   87,047   13,482 
Investment in equity securities at fair value  117,911   121,875   18,876 
Other equity investment  189,129   189,129   29,292 
Deferred tax assets  55,845   59,024   9,142 
Total assets  7,906,329   8,094,956   1,253,749 
             
LIABILITIES            
Current liabilities            
Accounts payable  9,479   13,883   2,150 
Accrued expenses and other payables  136,448   144,110   22,320 
Operating lease liabilities  1,636   1,655   256 
Deferred revenue  449,359   453,659   70,263 
Income tax payable  29,547   31,246   4,839 
Total current liabilities  626,469   644,553   99,828 
Non-current deferred revenue  2,392,906   2,418,456   374,571 
Non-current operating lease liabilities  147   99   15 
Other non-current liabilities  482,224   489,344   75,790 
Deferred tax liabilities  16,132   17,013   2,635 
Total liabilities  3,517,878   3,569,465   552,839 
             
EQUITY            
Shareholders’ equity of Global Cord Blood Corporation            
Ordinary shares            
-   US$0.0001 par value, 250,000,000 shares authorized, 121,687,974 and 121,551,075 shares issued and outstanding as of March 31 and June 30, 2021, respectively  83   83   13 
Additional paid-in capital  2,101,582   2,101,582   325,494 
Treasury stock, at cost (March 31 and June 30, 2021: 136,899 shares, respectively)  (2,815)  (2,815)  (436)
Accumulated other comprehensive losses  (103,179)  (105,125)  (16,282)
Retained earnings  2,386,187   2,522,608   390,703 
Total equity attributable to Global Cord Blood Corporation  4,381,858   4,516,333   699,492 
Non-controlling interests  6,593   9,158   1,418 
Total equity  4,388,451   4,525,491   700,910 
Total liabilities and equity  7,906,329   8,094,956   1,253,749 

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended June 30, 2020 and 2021

 

    
  Three months ended June 30, 
  2020  2021 
  RMB  RMB  US$ 
  (in thousands except per share data) 
Revenues  280,913   315,174   48,814 
Cost of revenues  (43,463)  (47,841)  (7,409)
Gross profit  237,450   267,333   41,405 
Operating expenses            
Research and development  (4,345)  (5,098)  (790)
Sales and marketing  (55,060)  (59,403)  (9,199)
General and administrative  (44,536)  (46,276)  (7,167)
Total operating expenses  (103,941)  (110,777)  (17,156)
Operating income  133,509   156,556   24,249 
Other income            
Interest income  6,767   8,190   1,268 
Foreign currency exchange gains  42   146   23 
Change in fair value of equity securities  18,405   5,601   867 
Dividend income     1,120   173 
Others  1,723   639   99 
Total other income  26,937   15,696   2,430 
Income before income tax  160,446   172,252   26,679 
Income tax expense  (26,021)  (33,266)  (5,152)
Net income  134,425   138,986   21,527 
Net income attributable to non-controlling interests  (1,916)  (2,565)  (397)
Net income attributable to Global Cord Blood Corporation’s shareholders  132,509   136,421   21,130 
             
Earnings per share:            
Attributable to ordinary shares            
-   Basic  1.09   1.12   0.17 
-   Diluted  1.09   1.12   0.17 
             
Other comprehensive losses, net of nil income taxes            
-   Foreign currency translation adjustments  (439)  (1,946)  (301)
Comprehensive income  133,986   137,040   21,226 
             
Comprehensive income attributable to non-controlling interests  (1,916)  (2,565)  (397)
Comprehensive income attributable to Global Cord Blood Corporation’s shareholders  132,070   134,475   20,829 

 

 

 

 

Other Events

 

On August 30, 2021, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months ended June 30, 2021. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.Description

 

99.1Press Release dated August 30, 2021

 

 

 

 

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.

 

 GLOBAL CORD BLOOD CORPORATION
   
 By:/s/ Albert Chen
 Name:Albert Chen
 Title:Chief Financial Officer
   
Dated: August 30, 2021