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 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 and six months ended September 30, 2021 of the Company.

 

 

 

 

GLOBAL CORD BLOOD CORPORATION 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 

As of March 31 and September 30, 2021

 

    March 31,   September 30,  
    2021   2021  
    RMB   RMB   US$  
    (in thousands except share data)  
ASSETS                    
Current assets                    
Cash and cash equivalents     6,075,798     6,390,632     991,812  
Accounts receivable, less allowance for credit losses (March 31, 2021: RMB137,961; September 30, 2021: RMB150,060 (US$23,289))     130,298     144,667     22,452  
Inventories     44,257     33,821     5,250  
Prepaid expenses and other receivables     47,788     79,343     12,313  
Total current assets     6,298,141     6,648,463     1,031,827  
Property, plant and equipment, net     498,656     484,434     75,183  
Operating lease right-of-use assets     5,039     3,969     616  
Non-current deposits     344,752     343,529     53,315  
Non-current accounts receivable, less allowance for credit losses (March 31, 2021: RMB67,095; September 30, 2021: RMB62,544 (US$9,707))     217,208     241,377     37,461  
Inventories     91,446     93,261     14,474  
Intangible assets, net     88,202     85,892     13,330  
Investment in equity securities at fair value     117,911     108,974     16,912  
Other equity investment     189,129     189,129     29,352  
Deferred tax assets     55,845     59,230     9,192  
Total assets     7,906,329     8,258,258     1,281,662  
                     
LIABILITIES                    
Current liabilities                    
Accounts payable     9,479     13,442     2,086  
Accrued expenses and other payables     136,448     153,872     23,880  
Operating lease liabilities     1,636     1,675     260  
Deferred revenue     449,359     451,022     69,998  
Income tax payable     29,547     30,767     4,775  
Total current liabilities     626,469     650,778     100,999  
Non-current deferred revenue     2,392,906     2,441,499     378,915  
Non-current operating lease liabilities     147     50     8  
Other non-current liabilities     482,224     495,826     76,951  
Deferred tax liabilities     16,132     16,701     2,592  
Total liabilities     3,517,878     3,604,854     559,465  
                     
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, 2021, respectively     83     83     13  
Additional paid-in capital     2,101,582     2,101,582     326,161  
Treasury stock, at cost (March 31 and September 30, 2021: 136,899 shares, respectively)     (2,815 )   (2,815 )   (437 )
Accumulated other comprehensive losses     (103,179 )   (105,354 )   (16,351 )
Retained earnings     2,386,187     2,648,344     411,016  
Total equity attributable to Global Cord Blood Corporation     4,381,858     4,641,840     720,402  
Non-controlling interests     6,593     11,564     1,795  
Total equity     4,388,451     4,653,404     722,197  
Total liabilities and equity     7,906,329     8,258,258     1,281,662  

 

 

 

 

GLOBAL CORD BLOOD CORPORATION 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

For the Three Months and Six Months Ended September 30, 2020 and 2021

 

    Three months ended September 30,   Six months ended September 30,  
    2020   2021   2020   2021  
    RMB   RMB   US$   RMB   RMB   US$  
    (in thousands except per share data)  
Revenues     285,607     313,670     48,681     566,520     628,844     97,595  
Cost of revenues     (44,698 )   (46,209 )   (7,172 )   (88,161 )   (94,050 )   (14,596 )
Gross profit     240,909     267,461     41,509     478,359     534,794     82,999  
Operating expenses                                      
Research and development     (4,953 )   (5,573 )   (865 )   (9,298 )   (10,671 )   (1,656 )
Sales and marketing     (54,124 )   (56,924 )   (8,834 )   (109,184 )   (116,327 )   (18,054 )
General and administrative     (42,671 )   (44,512 )   (6,908 )   (87,207 )   (90,788 )   (14,090 )
Total operating expenses     (101,748 )   (107,009 )   (16,607 )   (205,689 )   (217,786 )   (33,800 )
Operating income     139,161     160,452     24,902     272,670     317,008     49,199  
Other income/(expenses), net                                      
Interest income     8,810     7,989     1,240     15,577     16,179     2,511  
Foreign currency exchange gains/(losses)     66     (15 )   (2 )   108     131     20  
Change in fair value of equity securities     5,699     (12,616 )   (1,958 )   24,104     (7,015 )   (1,089 )
Dividend income     1,281             1,281     1,120     174  
Others     1,195     583     90     2,918     1,222     190  
Total other income/(expenses), net     17,051     (4,059 )   (630 )   43,988     11,637     1,806  
Income before income tax     156,212     156,393     24,272     316,658     328,645     51,005  
Income tax expense     (22,890 )   (28,251 )   (4,384 )   (48,911 )   (61,517 )   (9,547 )
Net income     133,322     128,142     19,888     267,747     267,128     41,458  
Net income attributable to non-controlling interests     (1,888 )   (2,406 )   (373 )   (3,804 )   (4,971 )   (772 )
Net income attributable to Global Cord Blood Corporation’s shareholders     131,434     125,736     19,515     263,943     262,157     40,686  
                                       
Earnings per share:                                      
Attributable to ordinary shares                                      
- Basic     1.08     1.03     0.16     2.17     2.15     0.33  
- Diluted     1.08     1.03     0.16     2.17     2.15     0.33  
Other comprehensive losses, net of nil income taxes                          
-Foreign currency translation adjustments     (4,202 )   (229 )   (36 )   (4,641 )   (2,175 )   (338 )
Comprehensive income     129,120     127,913     19,852     263,106     264,953     41,120  
                                       
Comprehensive income attributable to non-controlling interests     (1,888 )   (2,406 )   (373 )   (3,804 )   (4,971 )   (772 )
Comprehensive income attributable to Global Cord Blood Corporation’s shareholders     127,232     125,507     19,479     259,302     259,982     40,348  

 

 

 

 

Other Events

 

On November 24, 2021, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months and six months ended September 30, 2021. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits  
   
Exhibit No. Description
   
99.1 Press Release dated November 24, 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: November 24, 2021  

 

 

 

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