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 August 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 ended June 30, 2021 of the Company.

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and June 30, 2021

 

    March 31,     June 30,  
    2021     2021  
    RMB     RMB     US$  
    (in thousands except share data)  
ASSETS                        
Current assets                        
Cash and cash equivalents     6,075,798       6,237,406       966,051  
Accounts receivable, less allowance for credit losses (March 31, 2021: RMB137,961; June 30, 2021: RMB147,293 (US$22,813))     130,298       135,415       20,973  
Inventories     44,257       36,960       5,724  
Prepaid expenses and other receivables     47,788       66,912       10,363  
Total current assets     6,298,141       6,476,693       1,003,111  
Property, plant and equipment, net     498,656       488,803       75,706  
Operating lease right-of-use assets     5,039       4,504       698  
Non-current deposits     344,752       346,446       53,658  
Non-current accounts receivable, less allowance for credit losses (March 31, 2021: RMB67,095; June 30, 2021: RMB65,799 (US$10,191))     217,208       228,986       35,465  
Inventories     91,446       92,449       14,319  
Intangible assets, net     88,202       87,047       13,482  
Investment in equity securities at fair value     117,911       121,875       18,876  
Other equity investment     189,129       189,129       29,292  
Deferred tax assets     55,845       59,024       9,142  
Total assets     7,906,329       8,094,956       1,253,749  
                         
LIABILITIES                        
Current liabilities                        
Accounts payable     9,479       13,883       2,150  
Accrued expenses and other payables     136,448       144,110       22,320  
Operating lease liabilities     1,636       1,655       256  
Deferred revenue     449,359       453,659       70,263  
Income tax payable     29,547       31,246       4,839  
Total current liabilities     626,469       644,553       99,828  
Non-current deferred revenue     2,392,906       2,418,456       374,571  
Non-current operating lease liabilities     147       99       15  
Other non-current liabilities     482,224       489,344       75,790  
Deferred tax liabilities     16,132       17,013       2,635  
Total liabilities     3,517,878       3,569,465       552,839  
                         
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 June 30, 2021, respectively     83       83       13  
Additional paid-in capital     2,101,582       2,101,582       325,494  
Treasury stock, at cost (March 31 and June 30, 2021: 136,899 shares, respectively)     (2,815 )     (2,815 )     (436 )
Accumulated other comprehensive losses     (103,179 )     (105,125 )     (16,282 )
Retained earnings     2,386,187       2,522,608       390,703  
Total equity attributable to Global Cord Blood Corporation     4,381,858       4,516,333       699,492  
Non-controlling interests     6,593       9,158       1,418  
Total equity     4,388,451       4,525,491       700,910  
Total liabilities and equity     7,906,329       8,094,956       1,253,749  

 

 

 

 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended June 30, 2020 and 2021

 

       
    Three months ended June 30,  
    2020     2021  
    RMB     RMB     US$  
    (in thousands except per share data)  
Revenues     280,913       315,174       48,814  
Cost of revenues     (43,463 )     (47,841 )     (7,409 )
Gross profit     237,450       267,333       41,405  
Operating expenses                        
Research and development     (4,345 )     (5,098 )     (790 )
Sales and marketing     (55,060 )     (59,403 )     (9,199 )
General and administrative     (44,536 )     (46,276 )     (7,167 )
Total operating expenses     (103,941 )     (110,777 )     (17,156 )
Operating income     133,509       156,556       24,249  
Other income                        
Interest income     6,767       8,190       1,268  
Foreign currency exchange gains     42       146       23  
Change in fair value of equity securities     18,405       5,601       867  
Dividend income           1,120       173  
Others     1,723       639       99  
Total other income     26,937       15,696       2,430  
Income before income tax     160,446       172,252       26,679  
Income tax expense     (26,021 )     (33,266 )     (5,152 )
Net income     134,425       138,986       21,527  
Net income attributable to non-controlling interests     (1,916 )     (2,565 )     (397 )
Net income attributable to Global Cord Blood Corporation’s shareholders     132,509       136,421       21,130  
                         
Earnings per share:                        
Attributable to ordinary shares                        
-   Basic     1.09       1.12       0.17  
-   Diluted     1.09       1.12       0.17  
                         
Other comprehensive losses, net of nil income taxes                        
-   Foreign currency translation adjustments     (439 )     (1,946 )     (301 )
Comprehensive income     133,986       137,040       21,226  
                         
Comprehensive income attributable to non-controlling interests     (1,916 )     (2,565 )     (397 )
Comprehensive income attributable to Global Cord Blood Corporation’s shareholders     132,070       134,475       20,829  

 

 

 

 

Other Events

 

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

 

Exhibits

 

Exhibit No. Description

 

99.1 Press Release dated August 30, 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: August 30, 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.