SINGAPORE: Cordlife Group Limited has announced that it expects to report a financial loss for the year 2024, following a preliminary assessment of its unaudited financial results.
In a statement, the company attributed the anticipated net loss primarily to the suspension of its Singapore operations, which was mandated by the Ministry of Health (MOH). The suspension, effective from December 15, 2023, is set to last until September 14, 2024, significantly impacting Cordlife’s ability to generate revenue.
Additionally, the controlled resumption of cord blood banking services from September 15, 2024, to January 13, 2025, has further constrained the company’s operations. Under MOH’s conditions, Cordlife is permitted to process only 30 new cord blood units per month during this period.
Another contributing factor to the financial downturn is the MOH panel’s directive to provide refunds and fee waivers to affected clients. This measure was implemented for customers whose stored items were compromised due to temperature fluctuations in high-risk storage tanks.
As previously disclosed by Cordlife, these regulatory restrictions and client compensations are expected to reduce the company’s revenue and profit before tax by approximately $9.7 million.
Cordlife has yet to announce any further financial recovery strategies but remains under regulatory scrutiny as it works towards full operational reinstatement.