UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 


 

FORM 6-K/A

(Amendment No. 1)

 

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of December 2018

 

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

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes o                           No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-               .

 

 

 


 

EXPLANATORY NOTE

 

This Amendment No. 1 (the “Amendment”) to the Report of Foreign Private Issuer on Form 6-K (the “Original 6-K”), originally furnished by Global Cord Blood Corporation (the “Company”) to the Securities and Exchange Commission on November 27, 2018 containing the financial results for the three and six months ended September 30, 2018 of the Company, amends the Original 6-K to include an unaudited condensed consolidated statement of changes in equity, an unaudited condensed consolidated statements of cash flows, and notes to the unaudited condensed consolidated financial statements and the applicable interactive data file as Exhibit 101, which provides the unaudited condensed consolidated financial statements in XBRL (eXtensible business reporting language), and to provide for the incorporation by reference described below. No other changes have been made to the Original 6-K. This Amendment does not reflect events that may have occurred subsequent to the original submission date and does not modify or update in any way the disclosures made in the Original 6-K.

 

This Amendment and each of the exhibits to this Amendment are hereby incorporated by reference into the registration statements on Form F-3 (No. 333-213730 and No. 333-183143) of the Company.

 

This Amendment 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 the Company’s 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 Amendment 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 this Amendment is filed, and the Company does not intend to update any of the forward-looking statements after the date this Amendment is filed to conform these statements to actual results, unless required by law.

 

2


 

The forward-looking statements included in this Amendment 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; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission in the United States.

 

3


 

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, 2018 of the Company.

 

4


 

Global Cord Blood Corporation and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

(Amounts expressed in thousands)

 

 

 

 

 

March 31,

 

September 30,

 

 

 

Note

 

2018

 

2018

 

2018

 

 

 

 

 

RMB

 

RMB

 

US$

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

4,250,610

 

4,611,250

 

671,410

 

Accounts receivable, less allowance for doubtful accounts
(March 31, 2018: RMB58,227; September 30, 2018: RMB70,817 (US$10,312))

 

 

 

107,818

 

104,709

 

15,244

 

Inventories

 

 

 

27,718

 

32,538

 

4,738

 

Prepaid expenses and other receivables

 

 

 

22,276

 

25,582

 

3,725

 

Total current assets

 

 

 

4,408,422

 

4,774,079

 

695,117

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

3

 

552,960

 

543,451

 

79,128

 

Non-current deposits

 

 

 

233,115

 

256,457

 

37,341

 

Non-current accounts receivable, less allowance for doubtful accounts
(March 31, 2018: RMB69,713; September 30, 2018: RMB70,682 (US$10,291))

 

 

 

101,809

 

97,798

 

14,240

 

Inventories

 

 

 

71,758

 

74,021

 

10,778

 

Intangible assets, net

 

 

 

102,065

 

99,755

 

14,525

 

Investment in equity securities

 

 

 

153,882

 

126,477

 

18,415

 

Other investment

 

 

 

189,129

 

189,129

 

27,538

 

Deferred tax assets

 

 

 

31,295

 

36,413

 

5,302

 

Total assets

 

 

 

5,844,435

 

6,197,580

 

902,384

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

 

11,372

 

21,582

 

3,142

 

Accrued expenses and other payables

 

 

 

73,023

 

83,684

 

12,184

 

Deferred revenue

 

 

 

366,373

 

387,951

 

56,487

 

Income tax payable

 

 

 

17,407

 

18,494

 

2,693

 

Total current liabilities

 

 

 

468,175

 

511,711

 

74,506

 

 

 

 

 

 

 

 

 

 

 

Non-current deferred revenue

 

 

 

1,874,014

 

1,997,270

 

290,808

 

Other non-current liabilities

 

 

 

362,876

 

386,920

 

56,337

 

Deferred tax liabilities

 

 

 

20,628

 

20,148

 

2,934

 

Total liabilities

 

 

 

2,725,693

 

2,916,049

 

424,585

 

 

5


 

Global Cord Blood Corporation and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets (Continued)

(Amounts expressed in thousands, except share data)

 

 

 

March 31,

 

September 30,

 

 

 

2018

 

2018

 

2018

 

 

 

RMB

 

RMB

 

US$

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity of Global Cord Blood Corporation

 

 

 

 

 

 

 

Ordinary shares

 

 

 

 

 

 

 

- US$0.0001 par value, 250,000,000 shares authorized, 120,961,641 and 120,824,742 shares issued and outstanding as of March 31, 2018 and 121,687,974 and 121,551,075 shares issued and outstanding as of September 30, 2018

 

83

 

83

 

12

 

Additional paid-in capital

 

2,053,866

 

2,101,582

 

305,996

 

Treasury stock, at cost
(March 31 and September 30, 2018: 136,899 shares, respectively)

 

(2,815

)

(2,815

)

(410

)

Accumulated other comprehensive losses

 

(54,654

)

(79,493

)

(11,575

)

Retained earnings

 

1,116,873

 

1,254,755

 

182,695

 

Total equity attributable to Global Cord Blood Corporation

 

3,113,353

 

3,274,112

 

476,718

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

5,389

 

7,419

 

1,081

 

 

 

 

 

 

 

 

 

Total equity

 

3,118,742

 

3,281,531

 

477,799

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

5,844,435

 

6,197,580

 

902,384

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

6


 

Global Cord Blood Corporation and Subsidiaries

Unaudited Condensed Consolidated Statements of Comprehensive Income

(Amounts expressed in thousands, except per share data)

 

 

 

 

 

Three months ended September 30,

 

Six months ended September 30,

 

 

 

Note

 

2017

 

2018

 

2018

 

2017

 

2018

 

2018

 

 

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

Revenues

 

 

 

234,572

 

247,104

 

35,979

 

458,794

 

480,925

 

70,025

 

Direct costs

 

 

 

(45,644

)

(47,263

)

(6,882

)

(90,426

)

(90,421

)

(13,166

)

Gross profit

 

 

 

188,928

 

199,841

 

29,097

 

368,368

 

390,504

 

56,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

(3,664

)

(3,590

)

(523

)

(6,343

)

(6,381

)

(929

)

Sales and marketing

 

 

 

(56,152

)

(51,488

)

(7,497

)

(99,602

)

(102,903

)

(14,983

)

General and administrative

 

 

 

(52,784

)

(39,997

)

(5,824

)

(103,134

)

(81,012

)

(11,796

)

Total operating expenses

 

 

 

(112,600

)

(95,075

)

(13,844

)

(209,079

)

(190,296

)

(27,708

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

76,328

 

104,766

 

15,253

 

159,289

 

200,208

 

29,151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/(expenses), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

5,790

 

6,405

 

933

 

10,617

 

12,103

 

1,762

 

Interest expense

 

 

 

 

 

 

(3,257

)

 

 

Foreign currency exchange gains/(losses)

 

 

 

110

 

(49

)

(7

)

111

 

(75

)

(11

)

Unrealized holding loss for equity securities

 

 

 

 

(30,945

)

(4,506

)

 

(40,266

)

(5,863

)

Dividend income

 

 

 

 

976

 

142

 

 

976

 

142

 

Others

 

 

 

993

 

(56

)

(8

)

2,142

 

(815

)

(119

)

Total other income/(expenses), net

 

 

 

6,893

 

(23,669

)

(3,446

)

9,613

 

(28,077

)

(4,089

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax

 

 

 

83,221

 

81,097

 

11,807

 

168,902

 

172,131

 

25,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

4

 

(14,525

)

(14,921

)

(2,173

)

(30,246

)

(31,445

)

(4,578

)

Net income

 

 

 

68,696

 

66,176

 

9,634

 

138,656

 

140,686

 

20,484

 

Net income attributable to non-controlling interests

 

 

 

(1,101

)

(1,062

)

(155

)

(1,926

)

(2,030

)

(296

)

Net income attributable to Global Cord Blood Corporation’s shareholders

 

 

 

67,595

 

65,114

 

9,479

 

136,730

 

138,656

 

20,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to ordinary shares

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

- Basic

 

 

 

0.60

 

0.54

 

0.08

 

1.22

 

1.15

 

0.17

 

- Diluted

 

 

 

0.60

 

0.53

 

0.08

 

1.22

 

1.14

 

0.17

 

 

7


 

Global Cord Blood Corporation and Subsidiaries

Unaudited Condensed Consolidated Statements of Comprehensive Income (Continued)

(Amounts expressed in thousands)

 

 

 

Three months ended September 30,

 

Six months ended September 30,

 

 

 

2017

 

2018

 

2018

 

2017

 

2018

 

2018

 

 

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

- Foreign currency translation adjustments

 

(8,376

)

14,597

 

2,125

 

(20,107

)

37,477

 

5,457

 

- Unrealized holding losses in available-for-sale equity securities

 

(18,562

)

 

 

(30,487

)

 

 

Total other comprehensive (losses)/ income

 

(26,938

)

14,597

 

2,125

 

(50,594

)

37,477

 

5,457

 

Comprehensive income

 

41,758

 

80,773

 

11,759

 

88,062

 

178,163

 

25,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

(1,101

)

(1,062

)

(155

)

(1,926

)

(2,030

)

(296

)

Comprehensive income attributable to Global Cord Blood Corporation’s shareholders

 

40,657

 

79,711

 

11,604

 

86,136

 

176,133

 

25,645

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

8


 

Global Cord Blood Corporation and Subsidiaries

Unaudited Condensed Consolidated Statement of Changes in Equity

(Amounts expressed in thousands, except share data)

 

 

 

Global Cord Blood Corporation shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Share capital

 

Additional

 

Treasury stock

 

other

 

 

 

Non-

 

 

 

 

 

No. of

 

 

 

paid-in

 

No. of

 

 

 

comprehensive

 

Retained

 

controlling

 

Total

 

 

 

shares

 

Amount

 

capital

 

shares

 

Amount

 

losses

 

earnings

 

interests

 

equity

 

 

 

 

 

RMB

 

RMB

 

 

 

RMB

 

RMB

 

RMB

 

RMB

 

RMB

 

Balance as of March 31, 2018

 

120,961,641

 

83

 

2,053,866

 

(136,899

)

(2,815

)

(54,654

)

1,116,873

 

5,389

 

3,118,742

 

Cumulative effect of accounting change due to adoption of Accounting Standards Update 2016-01

 

 

 

 

 

 

(62,316

)

62,316

 

 

 

Net income

 

 

 

 

 

 

 

138,656

 

2,030

 

140,686

 

Other comprehensive income

 

 

 

 

 

 

37,477

 

 

 

37,477

 

Dividend declared to the Company’s shareholders

 

726,333

 

 

47,716

 

 

 

 

(63,090

)

 

(15,374

)

Balance as of September 30, 2018

 

121,687,974

 

83

 

2,101,582

 

(136,899

)

(2,815

)

(79,493

)

1,254,755

 

7,419

 

3,281,531

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of September 30, 2018 - US$

 

 

 

$

12

 

$

305,996

 

 

 

$

(410

)

$

(11,575

)

$

182,695

 

$

1,081

 

$

477,799

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

9


 

Global Cord Blood Corporation and Subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

(Amounts expressed in thousands)

 

 

 

Six months ended September 30,

 

 

 

2017

 

2018

 

2018

 

 

 

RMB

 

RMB

 

US$

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net cash provided by operating activities

 

441,710

 

386,934

 

56,338

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

(22,045

)

(16,274

)

(2,370

)

Proceeds from disposal of property, plant and equipment

 

28

 

326

 

47

 

Net cash used in investing activities

 

(22,017

)

(15,948

)

(2,323

)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Payment for dividends to shareholders

 

 

(18,173

)

(2,646

)

Net cash used in financing activities

 

 

(18,173

)

(2,646

)

 

 

 

 

 

 

 

 

Effect of foreign currency exchange rate change on cash and cash equivalents

 

(2,677

)

7,827

 

1,140

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

417,016

 

360,640

 

52,509

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

3,510,264

 

4,250,610

 

618,901

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

3,927,280

 

4,611,250

 

671,410

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

Cash paid for income taxes

 

32,390

 

35,940

 

5,233

 

Cash paid for interest

 

1,537

 

 

 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

10


 

Notes to the unaudited condensed consolidated financial statements

(Amounts expressed in thousands, except share data)

 

1                                        Principal activities and basis of presentation

 

(a)                                Principal activities

 

Global Cord Blood Corporation (formerly known as China Cord Blood Corporation) (the “Company”) and its subsidiaries (collectively the “Group”) are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China (the “PRC”). As of September 30, 2018, the Group has three operating cord blood banks in the Beijing municipality, the Guangdong province and the Zhejiang province, the PRC. The Company’s shares are listed on the New York Stock Exchange.

 

The Group provides cord blood testing, processing and storage services under the direction of subscribers for a cord blood processing fee and a storage fee. The Group also tests, processes and stores donated cord blood, and provides matching services to the public for a fee.

 

(b)                                Basis of presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The condensed consolidated balance sheet as of March 31, 2018 was derived from the audited consolidated financial statements of the Company. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the March 31, 2018 audited consolidated financial statements of the Company included in the Company’s annual report on Form 20-F for the year ended March 31, 2018.

 

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of September 30, 2018, the results of operations for the three months and six months ended September 30, 2017 and 2018, and cash flows for the six months ended September 30, 2017 and 2018 have been made.

 

For the convenience of the readers, certain amounts as of and for the three months and six months ended September 30, 2018 included in the accompanying unaudited condensed consolidated financial statements have been translated into U.S. dollars at the rate of US$1.00 = RMB6.8680, being the spot exchange rate of U.S. dollars in effect on September 28, 2018 for cable transfers in RMB per U.S. dollar as certified for customs purposes by the Federal Reserve, the central bank of the United States of America. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at that rate or at any other rate on September 30, 2018 or at any other date.

 

11


 

2                                        Summary of significant accounting policies

 

(a)                                Principles of consolidation

 

The accompanying unaudited condensed consolidated financial statements include the financial statements of the Company and its consolidated subsidiaries. For consolidated subsidiaries where the Company’s ownership is less than 100%, the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the Company, are presented as non-controlling interests. All significant intercompany balances and transactions have been eliminated on consolidation.

 

(b)                                Use of estimates

 

The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the estimate of selling price for individual deliverables in multiple-element revenue arrangements, the estimated future number of successful match units over the estimated weighted average remaining useful life of donated cord blood units, the useful lives of property, plant and equipment and intangible assets, the recoverability of property, plant and equipment and intangible assets, the collectibility of accounts receivables, the realizability of inventories and deferred tax assets.

 

3                                        Property, plant and equipment, net

 

Property, plant and equipment, net consist of the following:

 

 

 

March 31,

 

September 30,

 

 

 

2018

 

2018

 

2018

 

 

 

RMB

 

RMB

 

US$

 

Buildings

 

598,832

 

598,360

 

87,123

 

Leasehold improvements

 

14,864

 

14,864

 

2,164

 

Machineries

 

167,310

 

184,274

 

26,831

 

Motor vehicles

 

18,210

 

18,903

 

2,752

 

Furniture, fixtures and equipment

 

50,940

 

52,479

 

7,641

 

Construction-in-progress

 

10,931

 

3,707

 

540

 

 

 

861,087

 

872,587

 

127,051

 

Less: Accumulated depreciation

 

(308,127

)

(329,136

)

(47,923

)

Total property, plant and equipment, net

 

552,960

 

543,451

 

79,128

 

 

Depreciation expense related to property, plant and equipment for the three months ended September 30, 2017 and 2018 was RMB11,199 and RMB12,236 (US$1,782), respectively. Depreciation expense related to property, plant and equipment for the six months ended September 30, 2017 and 2018 was RMB22,796 and RMB24,226 (US$3,528), respectively.

 

12


 

4                                        Income tax

 

The Company’s PRC subsidiaries are subject to PRC statutory income tax rate of 25% unless otherwise specified.

 

In February 2018, Beijing Jiachenhong Biological Technologies Co., Ltd. (“Beijing Jiachenhong”) received approval from the tax authority on the renewal of its High and New Technology Enterprises (“HNTE”) status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2017 to December 31, 2019.

 

In March 2017, Guangzhou Municipality Tianhe Nuoya Bio-engineering Co., Ltd. (“Guangzhou Nuoya”) received approval from the tax authority on the renewal of its HNTE status which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2016 to December 31, 2018.

 

In January 2016, Zhejiang Lukou Biotechnology Co., Ltd. (“Zhejiang Lukou”) received approval from the tax authority that it qualified as a HNTE which entitled it to the preferential income tax rate of 15% effective retrospectively from January 1, 2015 to December 31, 2017. Zhejiang Lukou is in the process of reapplication for its HNTE status which will enable it to the preferential income tax rate of 15% from January 1, 2018 to December 31, 2020.

 

The Enterprise Income Tax Law and its implementation rules also impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends receivable by non-PRC-resident enterprises from PRC-resident enterprises in respect of earnings accumulated beginning on January 1, 2008. As of September 30, 2018, such undistributed earnings that may be subject to the withholding tax amounted to RMB2,178,063 (US$317,132) and the related unrecognized deferred tax liability was RMB217,806 (US$31,713).

 

The Company’s effective income tax rates for the three months ended September 30, 2017 and 2018 were 17.5% and 18.4%, and were 17.9% and 18.3% for the six months ended September 30, 2017 and 2018, respectively. The effective income tax rates for the three months and six months ended September 30, 2017 and 2018 differ from the PRC statutory income tax rate of 25% primarily due to the effect of non-PRC entities not being subject to income tax, which is offset by the effect of Beijing Jiachenhong, Guangzhou Nuoya and Zhejiang Lukou’s preferential tax treatments.

 

As of and for the three months and six months ended September 30, 2018, the Company did not have any material unrecognized tax benefits and thus no interest and penalties related to unrecognized tax benefits were recorded. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months.

 

13


 

5                                        Earnings per share

 

The following table sets forth the computation of basic and diluted earnings per share for the three months and six months ended September 30, 2017 and 2018 respectively:

 

 

 

Three months ended September 30,

 

 

 

2017

 

2018

 

2018

 

 

 

RMB

 

RMB

 

US$

 

Numerator:

 

 

 

 

 

 

 

Net income for basic and diluted net income per share

 

67,595

 

65,114

 

9,479

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

Weighted average ordinary shares outstanding for basic net income per share

 

113,524,742

 

121,156,329

 

121,156,329

 

Dilutive effect of scrip dividends

 

 

544,943

 

544,943

 

Weighted average ordinary shares outstanding for diluted net income per share

 

113,524,742

 

121,701,272

 

121,701,272

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

- Basic

 

0.60

 

0.54

 

0.08

 

- Diluted

 

0.60

 

0.53

 

0.08

 

 

 

 

Six months ended September 30,

 

 

 

2017

 

2018

 

2018

 

 

 

RMB

 

RMB

 

US$

 

Numerator:

 

 

 

 

 

 

 

Net income for basic and diluted net income per share

 

136,730

 

138,656

 

20,188

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

Weighted average ordinary shares outstanding for basic net income per share

 

112,196,168

 

120,991,441

 

120,991,441

 

Dilutive effect of scrip dividends

 

 

301,356

 

301,356

 

Weighted average ordinary shares outstanding for diluted net income per share

 

112,196,168

 

121,292,797

 

121,292,797

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

- Basic

 

1.22

 

1.15

 

0.17

 

- Diluted

 

1.22

 

1.14

 

0.17

 

 

14


 

Other Events

 

On November 27, 2018, the Company issued a press release announcing preliminary unaudited condensed consolidated financial results for the three months and six months ended September 30, 2018. A copy of the press release is attached as Exhibit 99.1.

 

Exhibits

 

Exhibit No.

 

Description

99.1 *

 

Press Release, dated November 27, 2018

101.INS XBRL

 

Instance Document

101.SCH XBRL

 

Taxonomy Extension Schema Document

101.CAL XBRL

 

Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL

 

Taxonomy Extension Definition Linkbase Document

101.LAB XBRL

 

Taxonomy Extension Label Linkbase Document

101.PRE XBRL

 

Taxonomy Extension Presentation Linkbase Document

 


* Previously filed

 

15


 

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: December 7, 2018

 

 

 

16