Cordlife (Kongsheng) was ordered by the Singapore Ministry of Health to suspend business due to improper handling of cord blood, resulting in the group's net loss in fiscal year 2024 reached 18.7 million yuan. If the impact of refunds and payment exemption is excluded, the net loss is RMB 8.3 million. In fiscal year 2023, the group achieved a net profit of RMB 3.6 million.

On the evening of Saturday (March 1), Kangsheng released its six-year and full-year results for the end of December 31, 2024. Affected by the nearly nine months of Singapore's business shutdown, the group's annual revenue reached 27.84 million yuan, a significant decrease of 50%. If refunds are not included to customers affected by cord blood and to exempt customers from high-risk storage tanks, the revenue last year was RMB 38.2 million.

The revenue of the umbilical cord blood storage business has dropped significantly from 51.3 million yuan in 2023 to 23.9 million yuan, mainly because customers are affected by improper umbilical cord blood storage incidents, resulting in a 31.6% reduction in umbilical cord blood processed and stored in Singapore, India, Malaysia and Indonesia.

After obtaining the Ministry of Health’s license for umbilical cord blood storage and human tissue storage, Kangsheng’s operations in Singapore were fully restored on January 14 this year; the new license will last for one year.

Kangsheng expects that after the improvement in Singapore's business revenue contribution, the performance in fiscal year 2025 will be better than in fiscal year 2024. At the same time, the Group will continue to expand its products and services to Asia, strengthen the ecological environment in the operating market, and increase the marketing and education work of stem cells in clinical applications in various health care treatments.

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Kangsheng also disclosed on Saturday that after the letter of claim received on May 2 last year, the company continued to receive claims from customers, and some filed lawsuits against the company through the Small Claims Tribunal. As of the day the statement was released, Kangsheng said that some claims were eventually terminated voluntarily by the client, and one of them was rejected by the small claims court.

In February this year, the company also received a letter from a representative of a customer who claimed to be a freezing and storing cord blood for his children. The company is evaluating the losses suffered by these individuals due to the company's alleged breach of contract, negligence and false statements. The company is also seeking legal advice and will respond to the company's clients when appropriate.

Kangsheng said that the claims case is still uncertain, so it is impossible to determine what impact it will have on the group's financial year 2025. The company will continue to inform shareholders of the latest major developments through the Singapore Exchange website.

Kangsheng's stock price closed on Friday (February 28) and rose 1.91% to 0.16 yuan.