6-K 1 tm2133245d1_6k.htm FORM 6-K

 

 

 

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 November 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 and six months ended September 30, 2021 of the Company.

 

 

 

 

GLOBAL CORD BLOOD CORPORATION 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 

As of March 31 and September 30, 2021

 

   March 31,  September 30, 
   2021  2021 
   RMB  RMB  US$ 
   (in thousands except share data) 
ASSETS             
Current assets             
Cash and cash equivalents   6,075,798   6,390,632   991,812 
Accounts receivable, less allowance for credit losses (March 31, 2021: RMB137,961; September 30, 2021: RMB150,060 (US$23,289))   130,298   144,667   22,452 
Inventories   44,257   33,821   5,250 
Prepaid expenses and other receivables   47,788   79,343   12,313 
Total current assets   6,298,141   6,648,463   1,031,827 
Property, plant and equipment, net   498,656   484,434   75,183 
Operating lease right-of-use assets   5,039   3,969   616 
Non-current deposits   344,752   343,529   53,315 
Non-current accounts receivable, less allowance for credit losses (March 31, 2021: RMB67,095; September 30, 2021: RMB62,544 (US$9,707))   217,208   241,377   37,461 
Inventories   91,446   93,261   14,474 
Intangible assets, net   88,202   85,892   13,330 
Investment in equity securities at fair value   117,911   108,974   16,912 
Other equity investment   189,129   189,129   29,352 
Deferred tax assets   55,845   59,230   9,192 
Total assets   7,906,329   8,258,258   1,281,662 
              
LIABILITIES             
Current liabilities             
Accounts payable   9,479   13,442   2,086 
Accrued expenses and other payables   136,448   153,872   23,880 
Operating lease liabilities   1,636   1,675   260 
Deferred revenue   449,359   451,022   69,998 
Income tax payable   29,547   30,767   4,775 
Total current liabilities   626,469   650,778   100,999 
Non-current deferred revenue   2,392,906   2,441,499   378,915 
Non-current operating lease liabilities   147   50   8 
Other non-current liabilities   482,224   495,826   76,951 
Deferred tax liabilities   16,132   16,701   2,592 
Total liabilities   3,517,878   3,604,854   559,465 
              
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 September 30, 2021, respectively   83   83   13 
Additional paid-in capital   2,101,582   2,101,582   326,161 
Treasury stock, at cost (March 31 and September 30, 2021: 136,899 shares, respectively)   (2,815)  (2,815)  (437)
Accumulated other comprehensive losses   (103,179)  (105,354)  (16,351)
Retained earnings   2,386,187   2,648,344   411,016 
Total equity attributable to Global Cord Blood Corporation   4,381,858   4,641,840   720,402 
Non-controlling interests   6,593   11,564   1,795 
Total equity   4,388,451   4,653,404   722,197 
Total liabilities and equity   7,906,329   8,258,258   1,281,662 

 

 

 

 

GLOBAL CORD BLOOD CORPORATION 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

For the Three Months and Six Months Ended September 30, 2020 and 2021

 

   Three months ended September 30,  Six months ended September 30, 
   2020  2021  2020  2021 
   RMB  RMB  US$  RMB  RMB  US$ 
   (in thousands except per share data) 
Revenues   285,607   313,670   48,681   566,520   628,844   97,595 
Cost of revenues   (44,698)  (46,209)  (7,172)  (88,161)  (94,050)  (14,596)
Gross profit   240,909   267,461   41,509   478,359   534,794   82,999 
Operating expenses                         
Research and development   (4,953)  (5,573)  (865)  (9,298)  (10,671)  (1,656)
Sales and marketing   (54,124)  (56,924)  (8,834)  (109,184)  (116,327)  (18,054)
General and administrative   (42,671)  (44,512)  (6,908)  (87,207)  (90,788)  (14,090)
Total operating expenses   (101,748)  (107,009)  (16,607)  (205,689)  (217,786)  (33,800)
Operating income   139,161   160,452   24,902   272,670   317,008   49,199 
Other income/(expenses), net                         
Interest income   8,810   7,989   1,240   15,577   16,179   2,511 
Foreign currency exchange gains/(losses)   66   (15)  (2)  108   131   20 
Change in fair value of equity securities   5,699   (12,616)  (1,958)  24,104   (7,015)  (1,089)
Dividend income   1,281   —   —   1,281   1,120   174 
Others   1,195   583   90   2,918   1,222   190 
Total other income/(expenses), net   17,051   (4,059)  (630)  43,988   11,637   1,806 
Income before income tax   156,212   156,393   24,272   316,658   328,645   51,005 
Income tax expense   (22,890)  (28,251)  (4,384)  (48,911)  (61,517)  (9,547)
Net income   133,322   128,142   19,888   267,747   267,128   41,458 
Net income attributable to non-controlling interests   (1,888)  (2,406)  (373)  (3,804)  (4,971)  (772)
Net income attributable to Global Cord Blood Corporation’s shareholders   131,434   125,736   19,515   263,943   262,157   40,686 
                          
Earnings per share:                         
Attributable to ordinary shares                         
- Basic   1.08   1.03   0.16   2.17   2.15   0.33 
- Diluted   1.08   1.03   0.16   2.17   2.15   0.33 
Other comprehensive losses, net of nil income taxes                   
-Foreign currency translation adjustments   (4,202)  (229)  (36)  (4,641)  (2,175)  (338)
Comprehensive income   129,120   127,913   19,852   263,106   264,953   41,120 
                          
Comprehensive income attributable to non-controlling interests   (1,888)  (2,406)  (373)  (3,804)  (4,971)  (772)
Comprehensive income attributable to Global Cord Blood Corporation’s shareholders   127,232   125,507   19,479   259,302   259,982   40,348 

 

 

 

 

Other Events

 

On November 24, 2021, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months and six months ended September 30, 2021. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits  
   
Exhibit No. Description
   
99.1 Press Release dated November 24, 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: November 24, 2021