Cordlife Group

[LLI]

Anyone know how they account for their revenue? Their service is a prolonged delay service, it might be rather aggressive if they are front-ending their revenue.

[valuebuddies]

Revenue from cord blood banking contracts and umbilical cord tissue banking services is recognised by reference to the stage of completion of the service. Stage of completion is measured by reference to the percentage of costs incurred to estimated total costs to complete the contracts. Revenue received in advance for services to be rendered under cord blood and umbilical cord tissue banking contracts is accounted for as deferred revenue on the statement of financial position.

The Group recognises revenue from cord blood banking service contracts and umbilical cord tissue banking services based on the stage of completion method. The stage of completion is measured in accordance with the accounting policy stated in Note 2.22. Significant assumptions and estimates are required in determining the total estimated costs. In making the assumptions, the Group evaluates them by relying on past experience and evidence.

They recognised deferred revenue under current and non-current liabilities which I guess represents the future contractual period. Similar to some construction company's practice, the revenue are recognised to the extent that the cost been incurred to date. But the difference for Cordlife is that once contract is signed and full payments is made, there is no way for customers to claim back the fees for the "unutilised contract period".

[LLI]

Thanks. tt sounds reasonable. since they are basically selling an insurance policy


www.valueinvestasia.com

[corydorus]

How about profit ? If they recognise upon signed, will cost in later years continue to creep up impacting profitability in later years.

[valuebuddies]

If revenue is recognised on stages of completion method, so do the profit. It can be easily to expect a rise in revenue and profits for the next couple of years due to the recognition of revenue and profits from new customers as well as to realise the deferred revenue and profits from the old customers.

[LLI]

How about profit ? If they recognise upon signed, will cost in later years continue to creep up impacting profitability in later years.

But the recognition can be subjected to many assumptions.

[Bubbachuck]

The full year for FY2014 has been released.

http://infopub.sgx.com/FileOpen/Cordlife...eID=312271

Revenue increased 41.5% and net profit increased by 125.3%.

But excluding non-core and one-off items, net profit would have been S$7.6
million.

(not vested)

[greengiraffe]

http://www.businesstimes.com.sg/premium/...t-20140924

PUBLISHED SEPTEMBER 24, 2014
Cordlife's big China gambit
Stake in China Cord Blood Corporation is for the long haul: CEO Jeremy Yee
BYJOYCE HOOI
joyceh@sph.com.sg @JoyceHooiBT

Mr Yee: 'I think we're doing the right thing. I don't need a consensus from analysts to run a business.' - ST FILE PHOTO
WHENEVER Cordlife Group's Jeremy Yee looks at his firm's stake in China Cord Blood Corporation (CCBC), the only thing that must irritate him is how Cordlife does not own more of it.
Now, what must irritate Cordlife's CEO even more is how some on the Street - or "the people in Raffles Place" as he calls them - have reacted to his attempt to boost the company's stake in CCBC.
Last month, Cordlife and Magnum Opus International (Magnum) - a vehicle controlled by CCBC's chairman Kam Yuen - agreed to go halves on CCBC senior convertible notes costing about US$88.09 million. These notes carry the principal amount of US$50 million and a coupon rate of 7 per cent.
If Cordlife were to fully convert its half of the notes, it would increase its CCBC stake from 10.02 per cent to almost 18 per cent.

[greengiraffe]

http://www.businesstimes.com.sg/companie...-programme

Cordlife sets up S$500m issuance programme
By
Joyce Hooijoyceh@sph.com.sg@JoyceHooiBT
15 Oct5:50 AM
Singapore

CORDLIFE Group Ltd has set up a S$500 million multicurrency debt issuance programme, the group said on Tuesday.

The net proceeds from the issue of securities will be used for Cordlife's general corporate purposes, the group said. This includes the financing of potential

[Blancfable]

Is there any reason why there is a huge drop from 1.20 to 1 in recent months?

I have not been following up with this stock for a while. Without Fair value gain, the profit will be quite ugly.

They just issued debt to expand so most likely profit will increase again. I checked from google and there are not much news related to cordlife.

Hope someone can enlighten me.

Not vested but considering.