Report of Foreign Issuer (6-k)

Date : 08/27/2019 @ 9:25PM
Source : Edgar (US Regulatory)
Stock : Global Cord Blood Corporation (CO)
Quote : 4.69  0.0 (0.00%) @ 1:34PM
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Report of Foreign Issuer (6-k)

 

 

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 2019

 

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: 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 industry developments affecting issuers that have pursued a “reverse merger” with an operating company based in the PRC, the presence of a new majority shareholder, 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 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 ended June 30, 2019 of the Company.

 

3


 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31 and June 30, 2019

 

 

 

March 31,

 

June 30,

 

 

 

2019

 

2019

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except share data)

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

4,997,861

 

5,162,037

 

751,936

 

Accounts receivable, less allowance for doubtful accounts (March 31, 2019: RMB89,634; June 30, 2019: RMB96,587 (US$14,069))

 

96,923

 

96,294

 

14,027

 

Inventories

 

27,612

 

25,352

 

3,694

 

Prepaid expenses and other receivables

 

25,532

 

21,615

 

3,149

 

Total current assets

 

5,147,928

 

5,305,298

 

772,806

 

Property, plant and equipment, net

 

545,340

 

540,986

 

78,803

 

Operating lease right-of-use assets1

 

 

6,365

 

927

 

Non-current deposits

 

236,719

 

242,556

 

35,332

 

Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2019: RMB74,800; June 30, 2019: RMB74,089 (US$10,792))

 

104,857

 

111,417

 

16,230

 

Inventories

 

77,194

 

78,529

 

11,439

 

Intangible assets, net

 

97,444

 

96,289

 

14,026

 

Investment in equity securities at fair value

 

107,362

 

120,443

 

17,545

 

Other equity investment

 

189,129

 

189,129

 

27,550

 

Deferred tax assets

 

44,981

 

47,473

 

6,915

 

Total assets

 

6,550,954

 

6,738,485

 

981,573

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

33,566

 

28,522

 

4,155

 

Accrued expenses and other payables

 

79,977

 

95,362

 

13,891

 

Operating lease liabilities1

 

 

2,174

 

317

 

Deferred revenue

 

461,986

 

444,402

 

64,734

 

Income tax payable

 

20,113

 

23,728

 

3,456

 

Total current liabilities

 

595,642

 

594,188

 

86,553

 

Non-current deferred revenue

 

2,108,442

 

2,161,478

 

314,855

 

Non-current operating lease liabilities1

 

 

3,491

 

509

 

Other non-current liabilities

 

404,482

 

417,107

 

60,759

 

Deferred tax liabilities

 

19,626

 

19,178

 

2,794

 

Total liabilities

 

3,128,192

 

3,195,442

 

465,470

 

 

 

 

 

 

 

 

 

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, 2019, respectively

 

83

 

83

 

12

 

Additional paid-in capital

 

2,101,582

 

2,101,582

 

306,129

 

Treasury stock, at cost (March 31 and June 30, 2019: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(410

)

Accumulated other comprehensive losses

 

(88,738

)

(78,385

)

(11,418

)

Retained earnings

 

1,407,223

 

1,515,567

 

220,768

 

Total equity attributable to Global Cord Blood Corporation

 

3,417,335

 

3,536,032

 

515,081

 

Non-controlling interests

 

5,427

 

7,011

 

1,022

 

Total equity

 

3,422,762

 

3,543,043

 

516,103

 

Total liabilities and equity

 

6,550,954

 

6,738,485

 

981,573

 

 


1 During the reporting quarter, the Company adopted Accounting Standards Update Topic 842 using a modified retrospective transition approach which resulted in the recognition of right-of-use assets and lease liabilities for operating leases as of April 1, 2019 of approximately RMB6.9 million ($1.0 million) and RMB5.8 million ($0.8 million), respectively.

 

4


 

GLOBAL CORD BLOOD CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months ended June 30, 2018 and 2019

 

 

 

Three months ended June 30,

 

 

 

2018

 

2019

 

 

 

RMB

 

RMB

 

US$

 

 

 

(in thousands except per share data)

 

Revenues

 

233,821

 

273,375

 

39,822

 

Direct costs

 

(43,158

)

(45,749

)

(6,664

)

Gross profit

 

190,663

 

227,626

 

33,158

 

Operating expenses

 

 

 

 

 

 

 

Research and development

 

(2,791

)

(4,701

)

(685

)

Sales and marketing

 

(51,415

)

(60,637

)

(8,833

)

General and administrative

 

(41,015

)

(49,902

)

(7,269

)

Total operating expenses

 

(95,221

)

(115,240

)

(16,787

)

Operating income

 

95,442

 

112,386

 

16,371

 

Other (expenses)/income, net

 

 

 

 

 

 

 

Interest income

 

5,698

 

6,220

 

906

 

Foreign currency exchange losses

 

(26

)

(28

)

(4

)

Change in fair value of equity securities

 

(9,321

)

9,979

 

1,454

 

Dividend income

 

 

507

 

74

 

Others

 

(759

)

340

 

50

 

Total other (expenses)/income, net

 

(4,408

)

17,018

 

2,480

 

Income before income tax

 

91,034

 

129,404

 

18,851

 

Income tax expense

 

(16,524

)

(19,476

)

(2,837

)

Net income

 

74,510

 

109,928

 

16,014

 

Net income attributable to non-controlling interests

 

(968

)

(1,584

)

(231

)

Net income attributable to Global Cord Blood Corporation’s shareholders

 

73,542

 

108,344

 

15,783

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Attributable to ordinary shares

 

 

 

 

 

 

 

- Basic

 

0.61

 

0.89

 

0.13

 

- Diluted

 

0.61

 

0.89

 

0.13

 

 

 

 

 

 

 

 

 

Other comprehensive income, net of nil income taxes

 

 

 

 

 

 

 

- Foreign currency translation adjustments

 

22,880

 

10,353

 

1,508

 

Comprehensive income

 

97,390

 

120,281

 

17,522

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(968

)

(1,584

)

(231

)

Comprehensive income attributable to Global Cord Blood Corporation’s shareholders

 

96,422

 

118,697

 

17,291

 

 

5


 

Other Events

 

On August 27, 2019, the Company issued a press release announcing unaudited condensed consolidated financial results for the three months ended June 30, 2019. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release dated August 27, 2019

 

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: August 27, 2019

 

 

7


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