CORDLIFE GROUP

Jin Lu, Non-Executive Director of Cordlife on 14/1/2014 bought 50,000 Cordlife shares average price SGD 1.23, total cost SGD 61,500. This raised her holding from 650,000 shares (0.243%) to 700,000 shares (0.262%)

Jin Lu, Non-Executive Director of Cordlife on 17/1/2014 bought 36,000 Cordlife shares average price SGD 1.215, total cost SGD 43,740. This raised her holding from 700,000 shares (0.262%) to 736,000 shares (0.275%)

PRESS RELEASE
CRYOVIVA SINGAPORE REACHES SETTLEMENT
WITH CORDLIFE
- Cryoviva passed off and infringed Cordlife's registered trademarks
and copyrights
- Cryoviva to pay Cordlife damages and legal costs following
settlement
- Settlement today ensures consumer trust is not misplaced

infopub.sgx.com/Apps?A=COW_CorporateAnno...fe_Settlement_PR.pdf


Cryoviva is a newly incorporated company, having only been incorporated on 26 July 2013
with a paid up capital of S$500,000. Based on a search conducted with the Accounting
and Corporate Regulatory Authority, Cryoviva has only two shareholders, Cryoviva
International Pte. Ltd. holding a 75% share and AsiaMedic CytoLife Pte. Ltd. holding the
remaining 25% share. AsiaMedic CytoLife Pte. Ltd. is a wholly-owned subsidiary of
AsiaMedic Limited. On 2 July 2013, it was announced by AsiaMedic Limited that it would
be entering into a joint venture agreement with Cryoviva International Pte. Ltd. to set up
Cryoviva, to provide private cord blood banking services in Singapore.

Cordlife’s 1HFY2014 net profit rises 52.9% to S$12.9 million, due to one-off items

- Revenue surges 31.3% as strong client deliveries from India,
Indonesia and the Philippines offset lower Hong Kong
contributions due to ban on mainland Chinese women’s deliveries

- Board of Directors declares interim dividend of 1.0 cent to reward
shareholders

- Benefiting from economies of scale and scope as a multi-product
healthcare company catering to the mother and child segment

Singapore, 11 February 2014 – Cordlife Group Limited (“Cordlife”, and together with its subsidiaries, the “Group”), a multi-product healthcare company catering to the mother and child segment, reported that its net profit for the first 6 months ended 31 December 2013 (“1HFY2014”) increased 52.9% to S$12.9 million year-on-year (yoy) on the back of healthy revenue growth, strong margins, a S$5.4 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 31.3% over the same period, up from S$17.9 million for the first 6 months ended 31 December 2012 (“1HFY2013”) to S$23.5 million for 1HFY2014 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$3.4 million for 1HFY2014 versus S$4.5 million for 1HFY2013. This is mainly attributable to the inclusion of the Group’s 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 of the Group’s products and services so that the Group can establish a leadership position in these countries. In addition to the above, the Group also incurred expenses 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 HK government’s moratorium on mainland Chinese mothers giving birth at private hospitals in Hong Kong, which came into effect beginning of 2013, had impacted on the Group’s 1HFY2014 revenue. Notwithstanding, the Group’s revenue grew 31.3% over the same period, up from S$17.9 million to S$23.5 million as strong contributions from India, Indonesia and the Philippines markets offset the lower contribution from Hong Kong.

While it remains unclear when the moratorium on women from mainland China giving birth at private hospitals in Hong Kong will be lifted, Deloitte researchers project the penetration rate for Hong Kong mothers to reach 25% by 2015, which still represents a sizable pool of potential customers for the private cord blood banking services. Moreover, according to Economist Intelligence Unit’s forecast mentioned in the Deloitte report, the birth rate in Hong Kong is expected to increase slightly, from 0.74% in 2011 to 0.76% in 2015.

The Board is pleased to announce an interim dividend of 1.0 Singapore cent, payable on 4 April 2014. While the Group does not have a formal dividend policy, the Board continues to evaluate the Group’s capital requirements and explore options to reward shareholders.

infopub.sgx.com/Apps?A=COW_CorporateAnno...lts_PressRelease.pdf

Cordlife share buy-back today, total 175,000 shares average $1.185.

Rock: re "Excluding non-core and one-off items, the Group’s core net profit after tax would have been S$3.4 million for 1HFY2014 versus S$4.5 million for 1HFY2013."

It's a decline in profitability in the core biz. This will have to reverse if the stock price is to stay on an even keel.