This printed article is located at https://cordlife.listedcompany.com/financials.html
Quarterly Results
Financial Statements and Related Announcement - Third Quarter Results
Financials Archive
Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.
Condensed interim consolidated statement of profit or loss and other comprehensive income
n.m denotes not meaningful
Condensed interim statements of financial position
Review Of Performance
COMPARING 9 MONTHS ENDED 30 SEPT 2025 ("9M2025") AGAINST 9 MONTHS ENDED 30 SEPT 2024 ("9M2024")
Income Statement
Revenue
In 9M2025, the Group recorded revenue reversal of approximately S$0.2 million related to the financial impact of the Enhanced Package offered to affected customers, compared to revenue reversal of approximately S$9.7 million in 9M2024.
Excluding the reversals, the Group's revenue for 9M2025 and 9M2024 would have been approximately S$29.6 million and S$29.0 million respectively. The revenue increase of 2.1% or S$0.6 million year-on-year ("yoy") was mainly contributed by the full resumption of the Group's Singapore operations on 14 January 2025.
Adjusting for the revenue reversals, the banking business unit ("Banking revenue") increased by 1.2% from S$26.0 million in 9M2024 to S$26.3 million in 9M2025, mainly due to a 1.1% increase in new samples processed and stored from 8,800 in 9M2024 to 8,900 in 9M2025. The increase in new samples processed and stored was mainly contributed by Singapore as a result of the full resumption of operations, as well as Malaysia, partially offset by fewer new samples processed and stored in Hong Kong, India, Philippines and Indonesia.
The diagnostics business unit ("Diagnostics revenue") increased 10.4% or S$0.3 million from S$3.0 million in 9M2024 to S$3.3 million in 9M2025, largely due to the increase in testing volume in Hong Kong and Indonesia.
Gross profit and gross profit margin
The Group recorded gross profit of S$17.0 million in 9M2025 as compared to S$7.4 million in 9M2024. Excluding the financial impact to revenue of S$0.2 million and S$9.7 million mentioned above for 9M2025 and 9M2024 as well as the one-off testing expenses of approximately S$0.2 million incurred in relation to the Low-Risk Tanks in 9M2025, the gross profit in 9M2025 and 9M2024 would have been approximately S$17.4 million and S$17.0 million respectively, an increase of 2.4% yoy. Gross profit margin remained comparable at 59%.
Selling and marketing expenses
Selling and marketing expenses increased by 9.9% or S$1.1 million in 9M2025 compared to 9M2024. The increase was mainly due to the increase in marketing activities following the full resumption of operations in Singapore as well as the provision for warranty expense of S$0.3 million recognised as part of the Enhanced Package offered to the affected customers.
Administrative expenses
Administrative expenses increased by 1.1% or S$0.2 million in 9M2025 compared to 9M2024, largely due to decrease of approximately S$0.5 million in legal and professional fees.
Finance income
Finance income decreased by S$474,000 from 9M2025 to 9M2024 mainly due to the decrease in fixed deposit interest rates and a reduction in interest income from investment following the maturity of the Class A Redeemable Convertible Note ("RCN") on 31 December 2024.
Finance costs
Finance costs relate to lease liabilities which amounted to S$118,000 in 9M2025 (9M2024: S$156,000). The decrease in finance costs was largely due to a decrease in lease liabilities recognised in 9M2025 as compared to 9M2024.
Loss before income tax from operations
As a result of the foregoing, the loss before income tax from operations amounted to S$7.5 million for 9M2025. Excluding the total financial impact of S$0.5 million relating to the Enhanced Package for the affected customers and the one-off testing expenses of approximately S$0.2 million incurred in relation to the Low-Risk Tanks in 9M2025, the Group reported a higher loss before income tax from operations of S$6.8 million in 9M2025, as compared to the loss before income tax from operations of $5.9 million excluding the revenue reversal of approximately S$9.7 million in 9M2024.
Share of profit of associate
In 9M2025, the Group recognised the share of profit of associate of S$811,000 compared to S$833,000 recognised in 9M2024.
Tax
In 9M2025, the Company recognised a tax expense of S$0.4 million, mainly due to current year tax expense of S$0.7 million and under-provision of tax in respect of prior years of S$0.1 million in Philippines, offset by reversal of temporary differences of S$0.4 million.
In 9M2024, the Company recognised a tax credit of S$0.8 million, largely due to the recognition of deferred tax asset for the provision of refunds of annual fees for the High-Risk Tanks, offset by the recognition of tax expenses in other countries.
The effective tax rate is negative in 9M2025 and 9M2024, due to loss before tax largely contributed by Singapore.
COMPARING 3 MONTHS ENDED 30 SEPT 2025 ("3Q2025") AGAINST 3 MONTHS ENDED 30 SEPT 2024 ("3Q2024")
Income Statement
Revenue
Revenue increased by 0.8% or S$0.1 million from S$10.1 million in 3Q2024 to S$10.2 million in 3Q2025.
The increase in revenue is partly contributed by the full resumption of the Group's Singapore operations on 14 January 2025.
Gross profit and gross profit margin
Gross profit increased from S$5.97 million in 3Q2024 to S$6.05 million for 3Q2025. Gross profit margin also increased slightly from 58.9% in 3Q2024 compared to 59.3% in 3Q2025.
Selling and marketing expenses
Selling and marketing expenses increased by 18.2% or S$0.6 million in 3Q2025 compared to 3Q2024. The increase was mainly due to the increase in marketing activities following the full resumption of operations in Singapore as well as the reversal of marketing expenses in 3Q2024.
Administrative expenses
Administrative expenses increased by S$0.6 million from 3Q2025 to 3Q2024 mainly due to the increase in provision of doubtful debt.
Finance income
Finance income decreased by S$0.2 million from 3Q2025 to 3Q2024 mainly due to the decrease in fixed deposit interest rates.
Finance costs
The decrease in finance costs was largely due to a decrease in lease liabilities recognised in 3Q2025 as compared to 3Q2024.
Loss before income tax from operations
As a result of the foregoing, the loss before income tax of S$2.6 million for 3Q2025 was higher than 3Q2024 at S$1.4 million.
Tax
In 3Q2025, the Company recognised a tax expense of S$0.1 million, largely due to current quarter tax expenses recognised by profit-making entities, offset by the reversal of DTA in relation to utilisation of provision of refund. In comparison, 3Q2024 has a tax expenses of S$0.7 million.
Balance sheet
Cash and cash equivalents, unpledged and pledged fixed deposits ("fixed deposits") and shortterm investments
As at 30 September 2025, the Group maintained a strong balance sheet, with cash and cash equivalents, fixed deposits and short-term investments of S$62.6 million (31 December 2024: S$67.2 million). Investments mainly comprise short-term in money market funds.
The increase in cash and cash equivalents of S$12.1 million from S$11.5 million as at 31 December 2024 to S$23.6 million as at 30 September 2025 was mainly due to cash generated from operating activities of S$0.8 million, redemption of the Class A Redeemable Convertible Note ("RCN") amounting S$4.2 million, net transfers from term deposits of S$9.8 million. which is offset by cash used in financing activities of S$1.7 million.
Net cash used in operating activities of S$0.8 million comprised mainly of net working capital inflow of S$3.6 million and net interest received of S$2.2 million, offset by operating cash flows before movements in working capital of S$5.2 million.
Net working capital inflow of approximately S$3.6 million comprised the following:
- increase in trade receivables of approximately S$2.7 million;
- decrease in contract assets of approximately S$1,211,000;
- decrease in other receivables, deposits and prepayments of approximately S$1.7 million;
- increase in inventories of approximately S$96,000;
- decrease in trade and other payables of approximately S$0.1 million; and
- increase in contract liabilities of approximately S$3.6 million.
The decrease in current and non-current fixed deposits and short-term investments of S$16.7 million was mainly due to the redemption of the Class A Redeemable Convertible Note ("RCN") amounting S$4.2 million, a net transfer of S$9.8 million from term deposits to cash and cash equivalent, as well as a translation loss of S$2.2 million on fixed deposits in the subsidiaries in Malaysia and India due to weakening of the Malaysian Ringgit and Indian Rupee against the Singapore Dollar.
Property, plant and equipment
As at 30 September 2025, the Group recorded S$15.3 million on its balance sheet for property, plant and equipment (31 December 2024: S$17.0 million). The decrease was mainly due to depreciation of S$2.8 million recognised in 9M2025. It was partially offset by the additions of approximately S$1.7 million, which mainly comprised purchase of laboratory equipment of S$0.4 million, office equipment of S$0.4 million and construction-in-progress of S$0.6 million and S$0.2 million of addition of leased office and laboratory units in the Philippines.
Investment properties
As at 30 September 2025, the Group recorded S$5.0 million on its balance sheet for investment properties (31 December 2024: S$5.0 million).
Intangible assets
Intangible assets comprise client contracts, brand and goodwill acquired in business combinations and computer software. As at 30 September 2025, the Group recorded S$28.4 million of intangible assets on its balance sheet (31 December 2024: S$29.8 million). The decrease was mainly due to strengthening of SGD against HKD during 9M2025.
Deferred tax assets
As at 30 September 2025, the Group recorded deferred tax assets of S$1.6 million (31 December 2024: S$1.7 million). The deferred tax assets comprise 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, as well as temporary differences for the provision of refunds of annual fees for the High-Risk Tanks. The decrease is mainly due to reversal of deferred tax asset recognised in the Singapore in relation to the ultilisation of the provision for refund.
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 September 2025, the Group recorded non-current contract assets of S$56.1 million (31 December 2024: S$58.4 million).
Inventories
As at 30 September 2025, the Group recorded inventories of S$1.0 million (31 December 2024: S$0.9 million).
Prepayments
As at 30 September 2025, the Group recorded prepayment of S$1.7 million (31 December 2024: S$2.9 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 September 2025 was S$26.6 million compared to S$25.2 million as at 31 December 2024.
Short-term investments
As at 30 September 2025, the Group recorded short-term investments of S$1.4 million compared to S$6.0 million as at 31 December 2024. The decrease was mainly due to redemption of a RCN in the principal amount of S$4.2million on 31 December 2024, which was subsequently received in 1H2025. The amount as at 30 June 2025 mainly comprises money market funds held in Malaysia.
Trade and other payables, current and non-current
As at 30 September 2025, the Group recorded current trade and other payables of S$15.9 million (31 December 2024: S$16.5 million) and non-current other payables of S$1.0 million (31 December 2024: S$1.0 million). The decrease in current trade and other payables was mainly attributable to the utilisation of S$0.7million as a result of the refunds made in relation to Refund/ Waiver of damaged and High-Risk Tanks during 1H2025.
Lease liabilities, current and non-current
As of 30 September 2025, the Group recognised lease liabilities of S$1.3 million on property and equipment leases (31 December 2024: S$2.4 million). The decrease in lease liabilities was attributable to payments during the period, offset by the addition of leased office and laboratory units in the Philippines.
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 September 2025, current and non-current contract liabilities were at S$11.4 million and S$63.6 million respectively (31 December 2024: S$10.5 million and S$64.4 million respectively).
Income tax payable
The Group recorded income tax payable of S$0.4 million as at 30 September 2025 (31 December 2024: S$0.1 million).
Deferred tax liabilities
As at 30 September 2025, deferred tax liabilities amounted to S$3.6 million (31 December 2024: S$3.8 million), comprising deferred tax liabilities on temporary differences and on intangible assets recognised on business combination.
Commentary
As announced by the Company on 1 March 2025, 1 April 2025 and 14 August 2025, there were claims made by or on behalf of persons who have identified themselves as clients of the Company. The Company has been seeking legal advice, and in consultation with its legal advisers, actively monitoring and attending to the claims and will take necessary steps to engage with the relevant parties at the appropriate juncture.
The exposure from the claims remains uncertain and the Company is unable to determine the impact of the Claims on the Group's financial performance and prospects for the financial year ending 31 December 2025 ("FY2025"). However, should the Company be ultimately required to settle all the Claims made by multiple clients in FY2025, this will likely result in a negative impact on the financial position of the Group for FY2025. Please refer to the Company's update announcement dated 14 August 2025 for further details on the claims.
As announced by the Company on 1 October 2025, the Company received the 2025 MOH Notice informing the Company of, inter alia, the Non-compliances, and the Intended Suspension of the Company's CBBS Licence for a period of one (1) year. As announced by the Company on 27 October 2025, the Company submitted its written representations to the Director-General of Health in respect of the 2025 MOH Notice.
Since 30 September 2025 (i.e. one (1) day after the MOH Notice), the Company has stopped the collection, testing, processing and/or storage of any new cord blood units in Singapore. The Company had voluntarily done so, notwithstanding that the suspension of the Company's CBBS Licence would only take effect upon the service of a subsequent notice of decision by MOH, and upon consideration of the representations by the Company.
In relation to the Low-Risk Tanks, as stated in the MOH press release issued on 29 September 2025, MOH undertook a review on the Additional Low-Risk Tanks Test Results and concluded that tested samples from two of the five Low-Risk Tanks met the criteria for viability and potency, but tested samples from the Remaining 3 Low-Risk Tanks did not. The testing protocol only allowed one sample to fail in each Low-Risk Tank for such tank to meet the acceptance criteria. MOH has directed the Company to conduct a full investigation on the Additional Low-Risk Tanks Test Results as the Company's root cause analysis could not identify conclusive reasons for what could have caused the tested samples in the Remaining 3 Low-Risk Tanks to fail to meet the criteria. The Company will, together with its technical team and advisers, conduct a full investigation on the Additional Low-Risk Tanks Test Results for the Remaining 3 Low-Risk Tanks. Pending completion of such investigations, the Company is unable to ascertain whether the Remaining 3 Low-Risk Tanks were at risk of being adversely affected by temperature excursions.
The Company will update its shareholders and the investing public once it has completed and received the outcome of the full investigation on the Additional Low-Risk Tanks Test Results for the Remaining 3 Low-Risk Tanks, in accordance with the requirements of the listing rules of the Singapore Exchange Securities Trading Limited.
Due to the uncertainty of the outcome and consequences of the full investigations on the Additional Low-Risk Tanks Test Results for the Remaining 3 Low-Risk Tanks, including potential claims against the Company by clients of the Company if the investigations yield unfavourable results, there can be no assurance that there will be no material financial impact on the financial performance of the Group.
As announced by the Company on 6 October 2025, the Board has undertaken an assessment on the Company's ability to operate as a going concern (the "Going Concern Announcement"), and in conducting this assessment, the Company performed cash flow forecasts ("Cash Flow Forecasts") of the Company over the next 12 months ending on 30 September 2026 (the "Period Under Review"), incorporating an analysis comprising multiple scenarios for possible outcomes and tolerance levels in light of various key risks and uncertainties. Shareholders of the Company are advised to read the Company's announcement dated 6 October 2025 its entirety, for more information on the factors taken into account in conducting the going concern assessment.
As previously disclosed, taking into account the unaudited financial results of the Company together with its subsidiaries' unaudited financial results for the six months ended 30 June 2025, and the Cash Flow Forecasts, barring any unforeseen circumstances, the Board is of the view that the Company will be able to continue as a going concern for the Period Under Review.
The Group expects a material reduction in new-client sign-ups and disruption to revenue recognition in Singapore compared to prior periods. At the same time, the overseas business remains stable but is unlikely to fully offset the Singapore shortfall in the near term.
The Singapore subsidiary is also working closely with the Association for the Advancement of Blood & Biotherapies ("AABB") and the Foundation for the Accreditation of Cellular Therapy ("FACT") to restore its accreditations for Singapore. Cordlife Sciences India Pvt. Ltd. and Cordlife Medical Phils., Inc. had achieved their re-accreditation from AABB earlier this year.
The Group will continue to focus on expanding its presence and growing the business in relevant industries in six key markets, while cooperating fully with ongoing investigations in Singapore and rebuilding trust among stakeholders.
The Company will update its shareholders if there are any material developments in relation to the above, in accordance with the requirements of the SGX-ST listing rules.
Shareholders of the Company and potential investors should exercise caution when dealing in the shares of the Company. They should consult their stockbrokers, bank managers, solicitors, or other professional advisers if they have any doubt about the action they should take.