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 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 o

 

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): o

 

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): o

 

 

 


 

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 effects of the current 2019 novel coronavirus (“COVID-19”) outbreak, including the inability of the Company’s salesforce to return to work due to current 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 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.

 

2


 

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, 2020 of the Company.

 

3


 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and December 31, 2020

 

 

 

March 31,

 

December 31,

 

 

 

2020

 

2020

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

5,473,373

 

5,867,754

 

899,274

 

Accounts receivable, less allowance for doubtful accounts (March 31, 2020: RMB111,869; December 31, 2020: RMB124,205 (US$19,035))

 

104,251

 

128,962

 

19,765

 

Inventories

 

43,758

 

57,095

 

8,750

 

Prepaid expenses and other receivables

 

44,785

 

57,231

 

8,771

 

Total current assets

 

5,666,167

 

6,111,042

 

936,560

 

Property, plant and equipment, net

 

522,679

 

508,924

 

77,996

 

Operating lease right-of-use assets

 

4,548

 

5,573

 

854

 

Non-current deposits

 

347,360

 

343,006

 

52,568

 

Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2020: RMB71,421; December 31, 2020: RMB70,125 (US$10,747))

 

160,031

 

202,658

 

31,059

 

Inventories

 

85,109

 

90,132

 

13,813

 

Intangible assets, net

 

92,823

 

89,357

 

13,695

 

Investment in equity securities at fair value

 

101,306

 

121,951

 

18,690

 

Other equity investment

 

189,129

 

189,129

 

28,985

 

Deferred tax assets

 

50,701

 

53,794

 

8,244

 

Total assets

 

7,219,853

 

7,715,566

 

1,182,464

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

19,992

 

9,743

 

1,493

 

Accrued expenses and other payables

 

113,989

 

128,233

 

19,653

 

Operating lease liabilities

 

1,717

 

3,116

 

478

 

Deferred revenue

 

402,751

 

423,350

 

64,881

 

Income tax payable

 

32,329

 

27,038

 

4,144

 

Total current liabilities

 

570,778

 

591,480

 

90,649

 

Non-current deferred revenue

 

2,289,762

 

2,367,446

 

362,827

 

Non-current operating lease liabilities

 

1,782

 

195

 

30

 

Other non-current liabilities

 

450,900

 

473,990

 

72,642

 

Deferred tax liabilities

 

18,140

 

16,990

 

2,604

 

Total liabilities

 

3,331,362

 

3,450,101

 

528,752

 

 

 

 

 

 

 

 

 

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, 2020, respectively

 

83

 

83

 

13

 

Additional paid-in capital

 

2,101,582

 

2,101,582

 

322,082

 

Treasury stock, at cost (March 31 and December 31, 2020: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(431

)

Accumulated other comprehensive losses

 

(94,663

)

(103,593

)

(15,876

)

Retained earnings

 

1,877,940

 

2,258,453

 

346,122

 

Total equity attributable to Global Cord Blood Corporation

 

3,882,127

 

4,253,710

 

651,910

 

Non-controlling interests

 

6,364

 

11,755

 

1,802

 

Total equity

 

3,888,491

 

4,265,465

 

653,712

 

Total liabilities and equity

 

7,219,853

 

7,715,566

 

1,182,464

 

 

4


 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Nine Months Ended December 31, 2019 and 2020

 

 

 

Three months ended December 31,

 

Nine months ended December 31,

 

 

 

2019

 

2020

 

2019

 

2020

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

334,733

 

290,798

 

44,567

 

921,572

 

857,318

 

131,389

 

Cost of revenues

 

(51,606

)

(44,878

)

(6,878

)

(145,670

)

(133,039

)

(20,389

)

Gross profit

 

283,127

 

245,920

 

37,689

 

775,902

 

724,279

 

111,000

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(6,404

)

(8,985

)

(1,377

)

(17,504

)

(18,283

)

(2,802

)

Sales and marketing

 

(75,936

)

(68,994

)

(10,574

)

(201,453

)

(178,178

)

(27,307

)

General and administrative

 

(47,914

)

(43,984

)

(6,741

)

(147,251

)

(131,191

)

(20,106

)

Total operating expenses

 

(130,254

)

(121,963

)

(18,692

)

(366,208

)

(327,652

)

(50,215

)

Operating income

 

152,873

 

123,957

 

18,997

 

409,694

 

396,627

 

60,785

 

Other income, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

6,350

 

7,190

 

1,102

 

19,072

 

22,767

 

3,489

 

Foreign currency exchange gains/(losses)

 

26

 

75

 

11

 

(164

)

183

 

28

 

Change in fair value of equity securities

 

8,047

 

6,003

 

920

 

10,983

 

30,107

 

4,614

 

Dividend income

 

 

 

 

507

 

1,281

 

196

 

Others

 

4,515

 

2,152

 

330

 

5,277

 

5,070

 

777

 

Total other income, net

 

18,938

 

15,420

 

2,363

 

35,675

 

59,408

 

9,104

 

Income before income tax

 

171,811

 

139,377

 

21,360

 

445,369

 

456,035

 

69,889

 

Income tax expense

 

(25,644

)

(21,220

)

(3,252

)

(67,207

)

(70,131

)

(10,748

)

Net income

 

146,167

 

118,157

 

18,108

 

378,162

 

385,904

 

59,141

 

Net income attributable to non-controlling interests

 

(1,154

)

(1,587

)

(243

)

(4,452

)

(5,391

)

(826

)

Net income attributable to Global Cord Blood Corporation’s shareholders

 

145,013

 

116,570

 

17,865

 

373,710

 

380,513

 

58,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

1.19

 

0.96

 

0.15

 

3.07

 

3.13

 

0.48

 

- Diluted

 

1.19

 

0.96

 

0.15

 

3.07

 

3.13

 

0.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive losses, net of nil income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

- Foreign currency translation adjustments

 

(30,953

)

(4,289

)

(657

)

(7,800

)

(8,930

)

(1,369

)

Comprehensive income

 

115,214

 

113,868

 

17,451

 

370,362

 

376,974

 

57,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(1,154

)

(1,587

)

(243

)

(4,452

)

(5,391

)

(826

)

Comprehensive income attributable to Global Cord Blood Corporation’s shareholders

 

114,060

 

112,281

 

17,208

 

365,910

 

371,583

 

56,946

 

 

5


 

Other Events

 

On February 24, 2021, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months and nine months ended December 31, 2020. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release dated February 24, 2021

 

6


 

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 24, 2021

 

 

 

7


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