The loss is due to the decline in revenue and refunds for clients affected by the high-risk blood cord tanks.

Cordlife reported a net loss of $12.4m in H1 2024 from $2.2m in H1 2023.

Revenue for the period fell 67.5% year-on-year (YoY), dropping from $28.3M to $9.1m, primarily due to the waiver of subsequent fees worth $9.7m for active clients who have stored cord blood units in the high-risk tanks as well as $0.5m in contract liabilities relating to future storage obligations for affected clients.

Excluding the refund, Cordlife's revenue would have been $18.9m, a 33.4% YoY decline from $28.3m in 1H2023. The drop in 1H2024 revenue is mainly due to the suspension of the group's Singapore operations.

In addition, if not for the refunds, the net loss for the period would have been $2.7m, compared to a net profit of $2.2m in H1 2024, with the loss attributed solely to the revenue decline.

Last month, the Ministry of Health (MOH) issued another notice for Cordlife to stop the collection, testing, processing, and storage of new cord blood in its Singapore facility for up to three more months, effective from 15 June, unless earlier approved by the Director-General of Health.

Cordlife received its first notice on 30 November 2023, followed by a notice extending the suspension period for an additional three months on 28 May.

Cordlife will continue to work with the MOH to investigate and address the identified lapses in its Singapore operations. These ongoing investigations and the suspension are expected to continue impacting revenue from its Singapore operations.