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Global Cord Blood (CO)

Filed: 28 Feb 22, 4:23pm

 

 

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 February 2022

 

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; 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 and nine months ended December 31, 2021 of the Company.

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and December 31, 2021

 

  March 31, December 31, 
  2021 2021 
  RMB RMB US$ 
  (in thousands except share data) 
ASSETS          
Current assets          
Cash and cash equivalents  6,075,798  6,505,014  1,020,780 
Accounts receivable, less allowance for credit losses (March 31, 2021: RMB137,961; December 31, 2021: RMB152,100 (US$23,868))  130,298  154,074  24,177 
Inventories  44,257  47,390  7,437 
Prepaid expenses and other receivables  47,788  75,721  11,882 
Total current assets  6,298,141  6,782,199  1,064,276 
Property, plant and equipment, net  498,656  480,229  75,359 
Operating lease right-of-use assets  5,039  3,434  539 
Non-current deposits  344,752  343,541  53,909 
Non-current accounts receivable, less allowance for credit losses (March 31, 2021: RMB67,095; December 31, 2021: RMB59,173 (US$9,286))  217,208  253,539  39,785 
Inventories  91,446  94,555  14,838 
Intangible assets, net  88,202  84,737  13,297 
Investment in equity securities at fair value  117,911  107,726  16,905 
Other equity investment  189,129  189,129  29,678 
Deferred tax assets  55,845  58,637  9,201 
Total assets  7,906,329  8,397,726  1,317,787 
           
LIABILITIES          
Current liabilities          
Accounts payable  9,479  11,674  1,832 
Accrued expenses and other payables  136,448  144,668  22,702 
Operating lease liabilities  1,636  1,695  266 
Deferred revenue  449,359  451,974  70,925 
Income tax payable  29,547  26,483  4,156 
Total current liabilities  626,469  636,494  99,881 
Non-current deferred revenue  2,392,906  2,457,490  385,634 
Non-current operating lease liabilities  147     
Other non-current liabilities  482,224  499,900  78,445 
Deferred tax liabilities  16,132  16,245  2,549 
Total liabilities  3,517,878  3,610,129  566,509 
           
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 December 31, 2021, respectively  83  83  13 
Additional paid-in capital  2,101,582  2,101,582  329,784 
Treasury stock, at cost (March 31 and December 31, 2021: 136,899 shares, respectively)  (2,815) (2,815) (442)
Accumulated other comprehensive losses  (103,179) (106,718) (16,746)
Retained earnings  2,386,187  2,782,536  436,640 
Total equity attributable to Global Cord Blood Corporation  4,381,858  4,774,668  749,249 
Non-controlling interests  6,593  12,929  2,029 
Total equity  4,388,451  4,787,597  751,278 
Total liabilities and equity  7,906,329  8,397,726  1,317,787 

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Nine Months Ended December 31, 2020 and 2021

 

 Three months ended December 31, Nine months ended December 31, 
 2020 2021 2020 2021 
 RMB RMB US$ RMB RMB US$ 
 (in thousands except per share data) 
Revenues 290,798  317,202  49,776  857,318  946,046  148,455 
Cost of revenues (44,878) (47,281) (7,419) (133,039) (141,331) (22,178)
Gross profit 245,920  269,921  42,357  724,279  804,715  126,277 
Operating expenses                  
Research and development (8,985) (6,845) (1,074) (18,283) (17,516) (2,749)
Sales and marketing (68,994) (65,916) (10,344) (178,178) (182,243) (28,598)
General and administrative (43,984) (47,441) (7,445) (131,191) (138,229) (21,691)
Total operating expenses (121,963) (120,202) (18,863) (327,652) (337,988) (53,038)
Operating income 123,957  149,719  23,494  396,627  466,727  73,239 
Other income, net                  
Interest income 7,190  8,004  1,256  22,767  24,183  3,795 
Foreign currency exchange gains/(losses) 75  (526) (83) 183  (395) (62)
Change in fair value of equity securities 6,003  599  94  30,107  (6,416) (1,007)
Dividend income       1,281  1,120  176 
Others 2,152  1,329  209  5,070  2,551  400 
Total other income, net 15,420  9,406  1,476  59,408  21,043  3,302 
Income before income tax 139,377  159,125  24,970  456,035  487,770  76,541 
Income tax expense (21,220) (23,568) (3,698) (70,131) (85,085) (13,352)
Net income 118,157  135,557  21,272  385,904  402,685  63,189 
Net income attributable to non-controlling interests (1,587) (1,365) (214) (5,391) (6,336) (994)
Net income attributable to Global Cord Blood Corporation’s shareholders 116,570  134,192  21,058  380,513  396,349  62,195 
                   
Earnings per share:                  
Attributable to ordinary shares                  
-  Basic0.96 1.11 0.17 3.13 3.26 0.51 
-  Diluted 0.96  1.11  0.17  3.13  3.26  0.51 
                   
Other comprehensive losses, net of nil income taxes                  
-  Foreign currency translation adjustments (4,289) (1,364) (214) (8,930) (3,539) (555)
Comprehensive income 113,868  134,193  21,058  376,974  399,146  62,634 
                   
Comprehensive income attributable to non-controlling interests (1,587) (1,365) (214) (5,391) (6,336) (994)
Comprehensive income attributable to Global Cord Blood Corporation’s shareholders 112,281  132,828  20,844  371,583  392,810  61,640 

 

 

 

 

Other Events

 

On February 28, 2022, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months and nine months ended December 31, 2021. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.Description
  
99.1Press Release dated February 28, 2022

 

 

 

 

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: February 28, 2022