The strong top-line growth achieved in
FY2015 indicates that we are making
good progress with the expansion
of our market leadership across Asia,
particularly in India, which offers
tremendous growth opportunities. In
the new financial year, we shall remain
committed to developing our market
leadership in cord blood and cord lining
banking within the Asian region while
continuing with our plans to introduce
new healthcare products and services,
catering to the mother and child.
DEAR VALUED STAKEHOLDERS,
On behalf of the Board and management team, I would like
to share with you our operating results for FY2015.
FINANCIAL REVIEW
The Group registered a 17.3% increase in sales from S$49.1
million in FY2014 to S$57.6 million for the full year ended
June 30, 2015, which resulted from a 32.8% increase in
client deliveries, from approximately 15,880 in FY2014 to
approximately 21,085 in FY2015.
The intensified marketing and client acquisition efforts made
by the Group especially in our Indian subsidiary boosted our
brand awareness amongst prospective clients, which led to
the rise in client deliveries.
Gross profit rose by 14.8% or S$5.2 million. However, gross
profit margin fell from 71.0% in FY2014 to 69.5% in FY2015,
mainly attributable to a surge in revenue contribution from
operations with lower margins.
The Group’s profit before income tax from operations
was S$6.1 million, representing a 32.7% dip from S$9.1
million for FY2014. This excludes the Group’s share of loss
of associate of S$0.4 million, fair value gain on investment
properties of S$0.3 million, fair value gain on financial asset
designated at fair value through profit or loss of S$10.4
million, fair value gain on derivative asset of S$12.9 million,
non-operating exchange gain of S$4.7 million, impairment
loss on investment in associate of S$2.6 million and non-
operating finance income and expense of S$6.6 million
and S$4.6 million respectively in FY2015. This is largely due
to a 45.3% increase in selling and marketing expenses in
FY2015 as the Group’s Indian subsidiary intensified marketing
investment by S$4.3 million to shore up our market share via
network effects. The increase of our administrative expenses
by 15.3% in the year compared to the previous year was
mainly driven by an increase in staff related costs to cater
to the increasing business volume in Singapore, India and
the Philippines.
Grant income from SPRING Singapore decreased by
S$216,000 from S$253,000 in FY2014 to S$37,000 in FY2015,
which the Company claimed for certain activities. A fee of
S$680,000 for providing training and know-how transfer
services to StemLife under the licensing agreement signed
in April 2014 was recognised in FY2014 as compared to
S$106,000 recognised in FY2015.
11
CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
CEO’S
MESSAGE
