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 2020

 

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; the non-binding proposal letter from Cordlife Group 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, 2020 of the Company.

 


 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and September 30, 2020

 

 

 

March 31,

 

September 30,

 

 

 

2020

 

2020

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

5,473,373

 

5,729,503

 

843,864

 

Accounts receivable, less allowance for doubtful accounts (March 31, 2020: RMB111,869; September 30, 2020: RMB120,582 (US$17,760))

 

104,251

 

121,722

 

17,928

 

Inventories

 

43,758

 

56,106

 

8,264

 

Prepaid expenses and other receivables

 

44,785

 

67,604

 

9,957

 

Total current assets

 

5,666,167

 

5,974,935

 

880,013

 

Property, plant and equipment, net

 

522,679

 

514,153

 

75,726

 

Operating lease right-of-use assets

 

4,548

 

6,089

 

897

 

Non-current deposits

 

347,360

 

343,250

 

50,555

 

Non-current accounts receivable, less allowance for doubtful accounts

 

 

 

 

 

 

 

(March 31, 2020: RMB71,421; September 30, 2020: RMB70,451

 

 

 

 

 

 

 

(US$10,376))

 

160,031

 

193,023

 

28,430

 

Inventories

 

85,109

 

88,335

 

13,010

 

Intangible assets, net

 

92,823

 

90,513

 

13,332

 

Investment in equity securities at fair value

 

101,306

 

120,670

 

17,773

 

Other equity investment

 

189,129

 

189,129

 

27,856

 

Deferred tax assets

 

50,701

 

52,823

 

7,780

 

Total assets

 

7,219,853

 

7,572,920

 

1,115,372

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

19,992

 

12,317

 

1,814

 

Accrued expenses and other payables

 

113,989

 

129,231

 

19,034

 

Operating lease liabilities

 

1,717

 

1,597

 

235

 

Deferred revenue

 

402,751

 

420,516

 

61,935

 

Income tax payable

 

32,329

 

31,542

 

4,646

 

Total current liabilities

 

570,778

 

595,203

 

87,664

 

Non-current deferred revenue

 

2,289,762

 

2,339,828

 

344,619

 

Non-current operating lease liabilities

 

1,782

 

1,724

 

254

 

Other non-current liabilities

 

450,900

 

467,236

 

68,816

 

Deferred tax liabilities

 

18,140

 

17,332

 

2,554

 

Total liabilities

 

3,331,362

 

3,421,323

 

503,907

 

 

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, 2020, respectively

 

83

 

83

 

12

 

Additional paid-in capital

 

2,101,582

 

2,101,582

 

309,529

 

Treasury stock, at cost (March 31 and September 30, 2020: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(415

)

Accumulated other comprehensive losses

 

(94,663

)

(99,304

)

(14,626

)

Retained earnings

 

1,877,940

 

2,141,883

 

315,467

 

Total equity attributable to Global Cord Blood Corporation

 

3,882,127

 

4,141,429

 

609,967

 

Non-controlling interests

 

6,364

 

10,168

 

1,498

 

Total equity

 

3,888,491

 

4,151,597

 

611,465

 

Total liabilities and equity

 

7,219,853

 

7,572,920

 

1,115,372

 

 


 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months and Six Months Ended September 30, 2019 and 2020

 

 

 

Three months ended September 30,

 

Six months ended September 30,

 

 

 

2019

 

2020

 

2019

 

2020

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

313,464

 

285,607

 

42,066

 

586,839

 

566,520

 

83,440

 

Cost of revenues

 

(48,315

)

(44,698

)

(6,583

)

(94,064

)

(88,161

)

(12,985

)

Gross profit

 

265,149

 

240,909

 

35,483

 

492,775

 

478,359

 

70,455

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

(6,399

)

(4,953

)

(729

)

(11,100

)

(9,298

)

(1,369

)

Sales and marketing

 

(64,880

)

(54,124

)

(7,972

)

(125,517

)

(109,184

)

(16,080

)

General and administrative

 

(49,435

)

(42,671

)

(6,285

)

(99,337

)

(87,207

)

(12,843

)

Total operating expenses

 

(120,714

)

(101,748

)

(14,986

)

(235,954

)

(205,689

)

(30,292

)

Operating income

 

144,435

 

139,161

 

20,497

 

256,821

 

272,670

 

40,163

 

Other (expenses)/income, net

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

6,502

 

8,810

 

1,298

 

12,722

 

15,577

 

2,294

 

Foreign currency exchange (losses)/gains

 

(162

)

66

 

10

 

(190

)

108

 

16

 

Change in fair value of equity securities

 

(7,043

)

5,699

 

839

 

2,936

 

24,104

 

3,550

 

Dividend income

 

-

 

1,281

 

189

 

507

 

1,281

 

189

 

Others

 

422

 

1,195

 

176

 

762

 

2,918

 

430

 

Total other (expenses)/income, net

 

(281

)

17,051

 

2,512

 

16,737

 

43,988

 

6,479

 

Income before income tax

 

144,154

 

156,212

 

23,009

 

273,558

 

316,658

 

46,642

 

Income tax expense

 

(22,087

)

(22,890

)

(3,371

)

(41,563

)

(48,911

)

(7,205

)

Net income

 

122,067

 

133,322

 

19,638

 

231,995

 

267,747

 

39,437

 

Net income attributable to non-controlling interests

 

(1,714

)

(1,888

)

(278

)

(3,298

)

(3,804

)

(560

)

Net income attributable to Global Cord Blood Corporation’s shareholders

 

120,353

 

131,434

 

19,360

 

228,697

 

263,943

 

38,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

0.99

 

1.08

 

0.16

 

1.88

 

2.17

 

0.32

 

- Diluted

 

0.99

 

1.08

 

0.16

 

1.88

 

2.17

 

0.32

 

 

Other comprehensive income/(losses), net of nil income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

- Foreign currency translation adjustments

 

12,800

 

(4,202

)

(619

)

23,153

 

(4,641

)

(684

)

Comprehensive income

 

134,867

 

129,120

 

19,019

 

255,148

 

263,106

 

38,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(1,714

)

(1,888

)

(278

)

(3,298

)

(3,804

)

(560

)

Comprehensive income attributable to Global Cord Blood Corporation’s shareholders

 

133,153

 

127,232

 

18,741

 

251,850

 

259,302

 

38,193

 

 


 

Other Events

 

On November 24, 2020, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months and six months ended September 30, 2020. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release dated November 24, 2020

 


 

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, 2020

 


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