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 June 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 effects of the current 2019 novel coronavirus (“COVID-19”) outbreak, 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 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 year ended March 31, 2021 of the Company.

 

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2020 and 2021

 

    March 31,     March 31,  
    2020     2021  
    RMB     RMB     US$  
    (in thousands except share data)  
ASSETS                  
Current assets                        
Cash and cash equivalents     5,473,373       6,075,798       927,349  
Accounts receivable, less allowance for doubtful accounts (March 31, 2020: RMB111,869; March 31, 2021: RMB137,961 (US$21,057))     104,251       130,298       19,887  
Inventories     43,758       44,257       6,755  
Prepaid expenses and other receivables     44,785       47,788       7,294  
Total current assets     5,666,167       6,298,141       961,285  
Property, plant and equipment, net     522,679       498,656       76,109  
Operating lease right-of-use assets     4,548       5,039       769  
Non-current deposits     347,360       344,752       52,619  
Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2020: RMB71,421; March 31, 2021: RMB67,095 (US$10,241))     160,031       217,208       33,152  
Inventories     85,109       91,446       13,957  
Intangible assets, net     92,823       88,202       13,462  
Investment in equity securities at fair value     101,306       117,911       17,997  
Other equity investment     189,129       189,129       28,867  
Deferred tax assets     50,701       55,845       8,524  
Total assets     7,219,853       7,906,329       1,206,741  
                         
LIABILITIES                        
Current liabilities                        
Accounts payable     19,992       9,479       1,447  
Accrued expenses and other payables     113,989       136,448       20,825  
Operating lease liabilities     1,717       1,636       250  
Deferred revenue     402,751       449,359       68,586  
Income tax payable     32,329       29,547       4,510  
Total current liabilities     570,778       626,469       95,618  
Non-current deferred revenue     2,289,762       2,392,906       365,229  
Non-current operating lease liabilities     1,782       147       22  
Other non-current liabilities     450,900       482,224       73,602  
Deferred tax liabilities     18,140       16,132       2,462  
Total liabilities     3,331,362       3,517,878       536,933  
                         
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, 2020 and 2021, respectively     83       83       13  
Additional paid-in capital     2,101,582       2,101,582       320,764  
Treasury stock, at cost (March 31, 2020 and 2021: 136,899 shares, respectively)     (2,815 )     (2,815 )     (430 )
Accumulated other comprehensive losses     (94,663 )     (103,179 )     (15,748 )
Retained earnings     1,877,940       2,386,187       364,203  
Total equity attributable to Global Cord Blood Corporation     3,882,127       4,381,858       668,802  
Non-controlling interests     6,364       6,593       1,006  
Total equity     3,888,491       4,388,451       669,808  
Total liabilities and equity     7,219,853       7,906,329       1,206,741  

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Year Ended March 31, 2020 and 2021

             
    Three months ended March 31,     Year ended March 31,  
    2020     2021     2020     2021  
    RMB     RMB     US$     RMB     RMB     US$  
    (in thousands except per share data)  
Revenues     299,888       302,321       46,143       1,221,460       1,159,639       176,995  
Cost of revenues     (43,458 )     (45,908 )     (7,007 )     (189,128 )     (178,947 )     (27,313 )
Gross profit     256,430       256,413       39,136       1,032,332       980,692       149,682  
Operating expenses                                                
Research and development     (3,605 )     (5,486 )     (837 )     (21,109 )     (23,769 )     (3,628 )
Sales and marketing     (60,505 )     (59,513 )     (9,083 )     (261,958 )     (237,691 )     (36,279 )
General and administrative     (42,981 )     (43,171 )     (6,589 )     (190,232 )     (174,362 )     (26,613 )
Total operating expenses     (107,091 )     (108,170 )     (16,509 )     (473,299 )     (435,822 )     (66,520 )
Operating income     149,339       148,243       22,627       559,033       544,870       83,162  
Other (expenses)/income, net                                                
Interest income     6,287       8,132       1,241       25,359       30,899       4,716  
Foreign currency exchange (losses)/gains     (139 )     (28 )     (4 )     (303 )     155       24  
Change in fair value of equity securities     (24,155 )     (4,722 )     (721 )     (13,172 )     25,385       3,875  
Dividend income                       507       1,281       196  
Others     2,111       3,091       472       7,388       8,161       1,246  
Total other (expenses)/income, net     (15,896 )     6,473       988       19,779       65,881       10,057  
Income before income tax     133,443       154,716       23,615       578,812       610,751       93,219  
Income tax expense     (33,877 )     (24,415 )     (3,726 )     (101,084 )     (94,546 )     (14,431 )
Net income     99,566       130,301       19,889       477,728       516,205       78,788  
Net income attributable to non-controlling interests     (2,559 )     (2,567 )     (392 )     (7,011 )     (7,958 )     (1,215 )
Net income attributable to Global Cord Blood Corporation’s shareholders     97,007       127,734       19,497       470,717       508,247       77,573  
                                                 
Earnings per share:                                                
Attributable to ordinary shares                                                
- Basic     0.80       1.05       0.16       3.87       4.18       0.64  
- Diluted     0.80       1.05       0.16       3.87       4.18       0.64  
Other comprehensive income/(losses), net of nil income taxes                                                
- Foreign currency translation adjustments        1,875           414           63           (5,925 )        (8,516 )        (1,300 )
Comprehensive income     101,441       130,715       19,952       471,803       507,689       77,488  
                                                 
Comprehensive income attributable to non-controlling interests     (2,559 )     (2,567 )     (392 )     (7,011 )     (7,958 )     (1,215 )
Comprehensive income attributable to Global Cord Blood                                                
Corporation’s shareholders     98,882       128,148       19,560       464,792       499,731       76,273  

 

 

 

 

Other Events

 

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

 

Exhibits

 

Exhibit No. Description
   
99.1 Press Release dated June 28, 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: June 28, 2021

 

 

Global Cord Blood (NYSE:CO)
Historical Stock Chart
From Oct 2021 to Nov 2021 Click Here for more Global Cord Blood Charts.
Global Cord Blood (NYSE:CO)
Historical Stock Chart
From Nov 2020 to Nov 2021 Click Here for more Global Cord Blood Charts.