6-K 1 tm2219596d1_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 July 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 People’s Republic of China, or 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 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 potential acquisition of Cellenkos, Inc. (“Cellenkos”) and the rights to develop and commercialize all of its existing and future products worldwide except those related to Cellenkos’s existing collaboration with Incyte Corporation and related litigation matters pending in the Cayman Islands and the British Virgin Islands; 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 year ended March 31, 2022 of the Company.

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2021 and 2022

 

   March 31,   March 31, 
   2021   2022 
   RMB   RMB   US$ 
   (in thousands except share data) 
ASSETS               
Current assets               
Cash and cash equivalents   6,075,798    6,660,984    1,050,744 
Accounts receivable, less allowance for credit losses (March 31, 2021: RMB137,961; March 31, 2022: RMB160,445 (US$25,309))   130,298    161,302    25,445 
Inventories   44,257    45,879    7,237 
Prepaid expenses and other receivables   47,788    66,838    10,545 
Total current assets   6,298,141    6,935,003    1,093,971 
Property, plant and equipment, net   498,656    473,811    74,742 
Operating lease right-of-use assets   5,039    2,880    454 
Non-current deposits   344,752    346,228    54,616 
Non-current accounts receivable, less allowance for credit losses (March 31, 2021: RMB67,095; March 31, 2022: RMB59,037 (US$9,313))   217,208    254,798    40,193 
Inventories   91,446    95,163    15,012 
Intangible assets, net   88,202    83,581    13,184 
Investment in equity securities at fair value   117,911    93,174    14,698 
Other equity investment   189,129    189,129    29,834 
Deferred tax assets   55,845    60,758    9,584 
Total assets   7,906,329    8,534,525    1,346,288 
                
LIABILITIES               
Current liabilities               
Accounts payable   9,479    8,330    1,314 
Accrued expenses and other payables   136,448    148,659    23,451 
Operating lease liabilities   1,636    147    23 
Deferred revenue   449,359    458,262    72,289 
Income tax payable   29,547    31,160    4,915 
Total current liabilities   626,469    646,558    101,992 
Non-current deferred revenue   2,392,906    2,473,549    390,193 
Non-current operating lease liabilities   147    —    — 
Other non-current liabilities   482,224    505,166    79,688 
Deferred tax liabilities   16,132    24,280    3,830 
Total liabilities   3,517,878    3,649,553    575,703 
                
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, 2021 and 2022, respectively   83    83    13 
Additional paid-in capital   2,101,582    2,101,582    331,516 
Treasury stock, at cost (March 31, 2021 and 2022: 136,899 shares, respectively)   (2,815)   (2,815)   (444)
Accumulated other comprehensive losses   (103,179)   (106,786)   (16,845)
Retained earnings   2,386,187    2,887,252    455,453 
Total equity attributable to Global Cord Blood Corporation   4,381,858    4,879,316    769,693 
Non-controlling interests   6,593    5,656    892 
Total equity   4,388,451    4,884,972    770,585 
Total liabilities and equity   7,906,329    8,534,525    1,346,288 

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Year Ended March 31, 2021 and 2022

 

   Three months ended March 31,   Year ended March 31, 
   2021   2022   2021   2022 
   RMB   RMB   US$   RMB   RMB   US$ 
   (in thousands except per share data) 
Revenues   302,321    297,209    46,884    1,159,639    1,243,255    196,119 
Cost of revenues   (45,908)   (41,976)   (6,621)   (178,947)   (183,307)   (28,916)
Gross profit   256,413    255,233    40,263    980,692    1,059,948    167,203 
Operating expenses                              
Research and development   (5,486)   (4,780)   (754)   (23,769)   (22,296)   (3,517)
Sales and marketing   (59,513)   (59,482)   (9,383)   (237,691)   (241,725)   (38,132)
General and administrative   (43,171)   (48,833)   (7,703)   (174,362)   (187,062)   (29,509)
Total operating expenses   (108,170)   (113,095)   (17,840)   (435,822)   (451,083)   (71,158)
Operating income   148,243    142,138    22,423    544,870    608,865    96,045 
Other income/(expenses), net                              
Interest income   8,132    8,426    1,329    30,899    32,609    5,144 
Foreign currency exchange (losses)/gains   (28)   (247)   (39)   155    (642)   (101)
Change in fair value of equity securities   (4,722)   (13,975)   (2,204)   25,385    (20,391)   (3,217)
Dividend income   —    —    —    1,281    1,120    177 
Others   3,091    3,723    587    8,161    6,274    990 
Total other income/(expenses), net   6,473    (2,073)   (327)   65,881    18,970    2,993 
Income before income tax   154,716    140,065    22,096    610,751    627,835    99,038 
Income tax expense   (24,415)   (33,267)   (5,248)   (94,546)   (118,352)   (18,669)
Net income   130,301    106,798    16,848    516,205    509,483    80,369 
Net income attributable to non-controlling interests   (2,567)   (2,082)   (328)   (7,958)   (8,418)   (1,328)
Net income attributable to Global Cord Blood Corporation’s shareholders     127,734       104,716       16,520       508,247       501,065       79,041  
                               
Earnings per share:                              
Attributable to ordinary shares                              
- Basic   1.05    0.86    0.14    4.18    4.12    0.65 
- Diluted   1.05    0.86    0.14    4.18    4.12    0.65 
                         
Other comprehensive income/(losses), net of nil income taxes                        
-  Foreign currency translation adjustments   414    (68)   (11)   (8,516)   (3,607)   (569)
Comprehensive income   130,715    106,730    16,837    507,689    505,876    79,800 
                               
Comprehensive income attributable to non-controlling interests   (2,567)   (2,082)   (328)   (7,958)   (8,418)   (1,328)
Comprehensive income attributable to Global Cord Blood Corporation’s shareholders   128,148    104,648    16,509    499,731    497,458    78,472 

 

 

 

 

Other Events

 

On July 5, 2022, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months and year ended March 31, 2022. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.  Description
    
99.1  Press Release dated July 5, 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: July 5, 2022