Quarterly Results

Financial Statements And Related Announcement - Half Yearly Results

Financials Archive

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Condensed interim consolidated statement of profit or loss and other comprehensive income

Condensed interim statements of financial position

Review Of Performance


Income Statement


Revenue increased by 7.9% or S$2.1 million from S$26.2 million in 1H2022 to S$28.3 million in 1H2023. Banking revenue increased by 7.9% from S$24.1 million in 1H2022 to S$26.0 million in 1H2023 as a result of a 6.0% increase in new samples processed and stored from 8,400 in 1H2022 to 8,900 in 1H2023. New samples processed and stored had increased across the whole Group, largely contributed by Singapore and the Philippines, as the Group continues to intensify its traditional in-person marketing campaigns together with its digital initiatives. Singapore was also affected by the spike in cases during the Omicron wave of the Coronavirus Disease 2019 outbreak ("COVID-19") in 1H2022, which did not occur in 1H2023. Banking revenue was also boosted due to higher conversions to high value plans and lower discounts provided.

In addition, revenue from the Group's diagnostic service offerings also increased 8.2% or S$0.2 million from 1H2022 to 1H2023.

Gross profit and gross profit margin

Gross profit increased from S$17.6 million in 1H2022 to S$19.2 million in 1H2023 mainly due to the increase in new samples processed and stored. Despite upward pressures on operating costs, gross profit margin increased to 67.6% in 1H2023 from 67.0% in 1H2022 mainly due to the increase in contribution in Singapore and Hong Kong where the gross margins are higher compared to other countries.

Other operating income

The decrease in other operating income of approximately S$18,000 in 1H2023 compared to 1H2022 was mainly due to the decrease in government grants received by the Group in connection with COVID-19 ("COVID-19 grants"). The Group had received COVID-19 grants of approximately S$148,000 in 1H2022 whereas no such grants were received in 1H2023. The Group also received lesser grant income in relation to wage credits in Singapore for 1H2023 as compared to 1H2022.

The decrease was offset by an increase in fair value gain on the short-term investments held in Malaysia. The Group recognised a fair value gain of S$21,000 in 1H2023 (1H2022: fair value loss of S$226,000).

Selling and marketing expenses

Selling and marketing expenses increased by 10.5% or S$0.9 million in 1H2023 compared to 1H2022. Advertising and promotion as well as commission expenses increased by approximately S$0.7 million from 1H2022 to 1H2023 due to the increase in customer acquisitions across the Group. The increase in advertising and promotion expenses was also partly due to more frequent in-person events held in 1H2023 compared to 1H2022, particularly in Singapore. Due to the nature of the Group's service offerings, the sign ups acquired from such events and baby expos typically occur a few months prior to their delivery, which marks the point of the Group's service delivery and the point when revenue is recognised.

The increase in customers opting for higher value bundled services which includes cord lining banking has also resulted the increase in royalties expenses of S$141,000. There was also an increase in credit card charges of S$145,000 from 1H2022 to 1H2023 due to increase in customer acquisitions and the Group's push towards outsourcing contract financing to reduce collectability issues and doubtful debts.

Finance income

Finance income increased by S$450,000 from 1H2023 to 1H2022 mainly due to the increase in deposit interest rates as well as increase in funds placed in fixed deposits.

Finance costs

Finance costs relate to lease liabilities which amounted to S$135,000 in 1H2023 (1H2022: S$75,000). The increase in finance costs was largely due to the additional leases of office units in the India and Singapore which commenced in August 2022 and February 2023 respectively.

Profit before income tax from operations

As a result of the foregoing, the profit before income tax from operations of S$2.2 million for 1H2023 was 11.9% higher than that for 1H2022.

Share of profit of associate

In 1H2023, the Group recognised the share of profit of associate of S$523,000 compared to S$260,000 recognised in 1H2022.


In 1H2022, government grants were not taxable, and and the tax expense on share of profit of associate of S$408,000 was recognised in 2H2022.

Over-provision of tax in respect of prior years of approximately S$195,000 for 1H2023 mainly comprises an over-provision of corporate income tax in Indonesia of S$166,000 and a net overprovision of deferred tax on the share of profits of associate in Malaysia of S$29,000. In 1H2022, the over-provision of tax in respect of prior years of S$59,000 was for Singapore and Malaysia.

Adjusting for the foregoing, the effective tax rate of 25.6% in 1H2023 was higher than 1H2022 at 22.0% due to tax losses not recognised in certain countries as well as the increase in contribution to the profit before tax from countries with higher tax rates.

Balance sheet

Cash and cash equivalents, unpledged and pledged fixed deposits ("fixed deposits") and shortterm investments

As at 30 June 2023, the Group maintained a strong balance sheet, with cash and cash equivalents, fixed deposits and short-term investments of S$82.7 million (31 December 2022: S$79.3 million). Short-term investments mainly comprise investments in money market funds and a Class A Redeemable Convertible Note ("RCN") in the principal amount of S$4.2 million from CellResearch Corporation ("CRC").

The increase in cash and cash equivalents of S$1.9 million from S$13.4 million as at 31 December 2022 to S$15.3 million as at 30 June 2023 was mainly due to cash generated from operating activities of S$5.4 million as well as dividend received from Thai Stemlife Co., Ltd of S$0.5 million under investing activities. This was offset by the net transfers to term deposits of S$2.4 million and the purchases of property, plant and equipment and intangible assets of S$1.7 million.

Net cash generated from operating activities comprised mainly operating cash flows before movements in working capital of S$3.1 million, net working capital inflow of S$1.5 million and net interest received of S$1.7 million offset by income tax paid of S$0.8 million.

Net working capital inflow of approximately S$1.5 million comprised the following:

  • increase in trade receivables of approximately S$0.6 million;
  • decrease in contract assets of approximately S$0.3 million;
  • decrease in other receivables, deposits and prepayments of approximately S$0.4 million;
  • decrease in inventories of approximately S$246,000;
  • decrease in trade and other payables of approximately S$0.5 million;
  • decrease in lease liabilities of approximately S$0.9 million; and
  • increase in contract liabilities of approximately S$2.7 million.

The increase in current and non-current fixed deposits and short-term investments of S$1.5 million is mainly due to the net transfers to term deposits from cash and cash equivalents of S$2.4 million, offset mainly by the weakening of the Malaysian Ringgit against the Singapore Dollar which resulted in translation losses on fixed deposits in the Malaysia subsidiary.

Property, plant and equipment

As at 30 June 2023, the Group recorded S$17.5 million on its balance sheet for property, plant and equipment (31 December 2022: S$14.4 million). The increase in property, plant and equipment was due additions of approximately S$4.5 million, which mainly comprised right-of-use assets recognised for leased office unit in Singapore and leasehold improvement made to the Hong Kong laboratory and office units, offset by depreciation of S$1.5 million recognised in 1H2023.

Investment properties

As at 30 June 2023, the Group recorded S$4.5 million on its balance sheet for investment properties (31 December 2022: S$4.6 million).

Intangible assets

Intangible assets comprise client contracts, brand and goodwill acquired in business combinations and computer software.

Deferred tax assets

Deferred tax assets represent comprises prior year tax losses carried forward as a result of the transitional adjustments arising from the adoption of FRS115 in the Hong Kong subsidiary and unutilised merger and acquisition allowance relating to acquisitions made by the Company in previous years. The decrease in deferred tax from S$0.9 million as of 31 December 2022 to S$0.8 million as of 30 June 2023 was due to utilisation of deferred tax asset to offset against 1H2023 profit of the Hong Kong subsidiary.

Investment in associate

Investment in associate comprise a 39.61% stake in Thai Stemlife Co., Ltd through Stemlife Berhad.

Contract assets, non-current

Non-current contract assets represent all service revenues arising from the performance obligations identified under instalment payment plans in the cord blood, cord lining and cord tissue banking contracts that have yet to be billed to clients. Upon billing, the billed amount will be receivable under the same terms as the current trade receivables. As at 30 June 2023, the Group recorded non-current contract assets of S$63.6 million (31 December 2022: S$63.6 million).


As at 30 June 2023, the Group recorded inventories of S$1.1 million (31 December 2022: S$1.4 million).


As at 30 June 2023, the Group recorded prepayment of S$1.9 million (31 December 2022: S$2.3 million). The decrease was mainly due to the unwinding of certain insurance premiums prepayments in Singapore.

Trade receivables, current

Current trade receivables as at 30 June 2023 was S$26.0 million compared to S$25.5 million as at 31 December 2022.

Other receivables, current

As at 30 June 2023, the Group recorded other receivables of S$3.0 million compared to S$2.9 million as at 31 December 2022.

Tax recoverable

As at 30 June 2023, the Group recorded tax recoverable of S$1.5 million (31 December 2022: S$1.1 million). The Group's subsidiary in Indonesia, PT Cordlife Persada, had successfully filed for a tax refund of IDR3.5 billion (approximately S$309,000) in respect of over-payment of tax subsequent to the retrospective adoption of FRS115. The refund was received in August 2023.

Short-term investments

As at 30 June 2023, the Group recorded short-term investments of S$5.6 million compared to S$5.8 million as at 31 December 2022, which comprises of a RCN in the principal amount of S$4.2 million from CRC, at the yielding interest rate of three month SIBOR plus 7% per annum payable annually in arrears, and money market funds held in Malaysia.

Trade and other payables, current and non-current

As at 30 June 2023, the Group recorded current trade and other payables of S$9.7 million (31 December 2022: S$10.0 million) and non-current other payables of S$325,000 (31 December 2022: S$522,000).

Lease liabilities, current and non-current

As of 30 June 2023, the Group recognised lease liabilities of S$4.4 million on property and equipment leases (31 December 2022: S$2.2 million). The increase in lease liabilities was attributable to new leases of office units for Singapore and the renewal of office leases in Hong Kong. The increase in lease liabilities was slightly offset by the payments made during the period.

Contract liabilities, current and non-current

Contract liabilities represent revenue received in advance for services revenues to be rendered under the various performance obligations identified in the cord blood, cord lining, cord tissue banking and diagnostics contracts. As at 30 June 2023, current and non-current contract liabilities were at S$12.3 million and S$66.9 million respectively (31 December 2022: S$9.0 million and S$67.3 million respectively).

Income tax payable

The Group recorded income tax payable of S$0.7 million as at 30 June 2023 (31 December 2022: S$0.7 million).

Deferred tax liabilities

As at 30 June 2023, deferred tax liabilities amounted to S$3.7 million (31 December 2022: S$4.0 million), comprising deferred tax liabilities on temporary differences and on intangible assets recognised on business combination.


The global economy continues to grapple with persistent inflationary pressures, geopolitical unrest, supply chain disruptions, debt vulnerabilities and even extreme weather conditions. Global headline inflation appears to have peaked but remains above central bank target levels1. As a result, food and fuel prices continue to face an upward pressure, accelerating affordability challenges. Against this backdrop of volatility and rising cost of living, consumer spending capacity has decreased and there is increasing competition for wallet share, particularly for discretionary expenses. Notwithstanding this, there has been an increase in the willingness to spend on preventive care and comprehensive healthcare solutions. While businesses in the healthcare industry are facing continued labour shortages and higher input costs that could exacerbate inflation2, the Group has exhibited agility and resilience as it adapts its business mode to provide value bundles and new offerings to better serve its customers.

There has been a considerable increase in awareness with regard to stem cell therapy and regenerative medicine which is expected to primarily benefit Cordlife's banking business. The global regenerative medicine market is expected to reach US$180.87 billion by 2030 growing at a compound annual growth rate ("CAGR") of 15.7% between 2023 to 20303. The increase in the amount of research and the number of clinical trials surrounding stem cells is likely to unlock the potential that stem cells hold in treating terminal illnesses like cancer and heart related diseases4 among others, eventually increasing utilisation rates. Cordlife Hong Kong recently partnered with Hong Kong Regen Medtech Limited for a two-year study on mesenchymal stem cell secretome-based products for the treatment of osteoarthritis. The Group will continue to do its part in advancing such research and development.

The Group will continue with the ongoing efforts to proactively engage its ecosystem of doctors and hospitals in key markets with regard to the utilisation of stem cells for various healthcare treatments. Additionally, in-person marketing activities will help the Group better connect with current and new customers and assist in meeting the needs of these families.

For the diagnostics business segment, the Group will continue to leverage on the growing demand for such services by ramping up the range of products and services offered under the diagnostics business segment and also seizing opportunities for geographical expansion. Cordlife's 1-2-4 strategy focuses on creating an all-encompassing range of products and services that meet the needs of all three generations - the child, the parents and the grandparents, reflecting our commitment to nurturing longterm customer relationships that can extend across multiple generations.

As at 30 June 2023, the Group's balance sheet remains strong, with S$82.7 million in cash and cash equivalents, fixed deposits and short-term investments. Moving forward, the Group will continue to be on the lookout for growth opportunities while staying cautiously optimistic amidst the uncertainty of the global economic landscape.

Barring unforeseen developments and exceptional non-operating items, the Group expects to remain profitable for the current financial year ending 31 December 2023.