Cordlife partners with China Cord Blood Corporation
to introduce services based on cellular technologies
§ Strengthens strategic alliance with China Cord Blood Corporation, the
largest cord blood banking operator in China
§ Leverage on economies of scale by expanding its geographical reach
through partnerships and collaborations
Mr. Jeremy Yee, Executive Director and Group CEO of Cordlife said, “We actively
seek opportunities to broaden our service offerings and expand our geographical
coverage in the region through strategic acquisitions and partnerships with similar
businesses that form a good fit with Cordlife. With this Collaboration, we will be able to
leverage on CCBC’s resources to expand into new services, and CCBC will be able to
leverage on our experience in developed markets in Asia.
This Collaboration is complementary to our previously announced proposed strategic
alliance with Golden Meditech, which expanded our distribution network of products and
services catering to the mother and child segment in the PRC. These two tie-ups will
collectively strengthen our industry presence.”
Cordlife’s 1QFY2014 net profit rises 209.7% to
S$8.7 million, enhanced by one-off items
- Revenue increased 31.1% year-on-year, driven by rise in number
of client deliveries from India, Indonesia and the Philippines
- Maintained high and consistent level of gross margins
- Benefitting from economies of scale and scope as a multi-product
healthcare company catering to the mother and child segment
Singapore, 13 November 2013 – Cordlife Group Limited (“Cordlife”, and together with its subsidiaries, the “Group”), an aspiring multi-product healthcare company catering to the maternal and child, reported that its net profit for the quarter ended 30 September 2013 (“1QFY2014”) increased 209.7% to S$8.7 million year-on-year (yoy) on the back of healthy revenue growth, strong margins as well as a S$3.1 million fair value gain on long term investment and a gain on transfer of investment in associate to long-term investment of S$6.2 million. Revenue grew 31.1% as compared to the corresponding 1QFY2013, up from S$8.6 million to S$11.3 million due to contributions from newly acquired entities and assets.
Excluding non-core and one-off items1, the Group’s core net profit after tax would have been S$1.5 million for 1QFY2014 versus S$2.3 million previously. This is mainly attributable to the inclusion of Philippines and Indian subsidiaries and Indonesian assets acquired and the Group’s efforts in ramping up educational and marketing activities in these countries to further promote customers’ awareness and so that the Group can establish leadership in these countries. In addition to the above, the Group also incurred expenses in its commitment to restructure its operations in Indonesia.
Mr Jeremy Yee, Executive Director and Chief Executive Officer of Cordlife said: “We continue to deliver strong revenue growth while maintaining a high, consistent level of gross profit margin of about 69%. With the completion of the acquisition of businesses and assets in India, the Philippines, Hong Kong and Indonesia from Australia-listed Life Corporation.
Cordlife’s 1QFY2014 net profit rises 209.7% to S$8.7 million, enhanced by one-off items
- Revenue increased 31.1% year-on-year, driven by rise in number
of client deliveries from India, Indonesia and the Philippines
- Maintained high and consistent level of gross margins
- Benefitting from economies of scale and scope as a multi-product
healthcare company catering to the mother and child segment
- Excluding non-core and one-off items, the Group core net profit after tax would be S$1.5 million for 1Q FY2014 versus S$2.3 million previously.
- Selling & Marketing Expenses increased from S$1.688 million to S$3.208 million, increased of S$1.62 million.
- Administration Expenses increased from S$1.817 million to S$2.977 million, increased of S$1.16 million.
Cordlife Focused Growth-Path through Economies of scale and scope
To derive economies of scale, Cordlife is riding on the growth story of emerging Asian Nation by expanding its geographical footprint for cord blood and tissue banking business as well as other newly-introduced products catering to the mother and child segment. These may have contributed to the increased in Selling & Marketing Expenses, & Administration Expenses of S$2.78 million for 1Q FY2014.
Hi Chiku, this is what gather from the 1Q 2014 report.
Excluding non-core and one-off items, (These includes the share of loss in associate of S$2.1 million, fair value gain on long-term investment of S$3.1 million and gain on transfer of investment in associate to long-term investment of S$6.2 million in 1QFY2014 and the share of gain in associate of S$0.5 million in 1QFY2013.) the Group’s core net profit after tax would have been S$1.5 million for 1QFY2014 versus S$2.3 million previously. This is mainly attributable to the inclusion of Philippines and Indian subsidiaries and Indonesian assets acquired and the Group’s efforts in ramping up educational and marketing activities in these countries to further promote customers’ awareness and so that the Group can establish leadership in these countries. In addition to the above, the Group also incurred expenses in its commitment to restructure its operations in Indonesia.
Selling and marketing expenses
Selling and marketing expenses increased by 89.7% or S$1.5 million in 1QFY2014. This increase was contributed by the inclusion of the Philippines and Indian subsidiaries and Indonesian assets which we acquired in June 2013.
Excluding these, selling and marketing expenses increased by 24.7% or S$ 0.4 million in 1QFY2014.
The increase was due mainly to an increase in various educational and marketing activities to further promote customers’ awareness.
The increase was also attributable to costs incurred during the process of new product development. These include costs of additional head count and costs incurred to introduce and educate our partners on such new products. In addition, there were also selling and marketing expenses incurred in relation to restructuring of the Group’s Indian and Philippines subsidiaries subsequent to the acquisition in June 2013. Such one-time costs were incurred in order to align these entities as part of the group. The total new product development and restructuring costs related to selling and marketing expenses amount to $139,000 in 1QFY2014. There were no such costs in 1QFY2013.
Administrative expenses
Administrative expenses increased by 63.8% or S$ 1.2 million in 1QFY2014. This increase was contributed by the inclusion of the Philippines and Indian subsidiaries and Indonesian assets which we acquired in June 2013.
New product development and restructuring costs related to administrative expenses amount to $149,000 in 1QFY2014. There were no such costs in 1QFY2013.
FIL Limited on 2nd December 2013 bought 1,021,000 Cordlife shares. This raised its holding from 23,030,000 shares (8.62%) to 24,051,000 shares (8.99%).
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