MÁS INFORMACIÓN SOBRE LOS INSTRUMENTOS FINANCIEROS

We are amongst the first private cord blood banks in Asia. Our business is focused on providing Cord Blood Banking Services which include the collection, processing, testing, cryopreservation and storage of umbilical cord blood at birth. In March 2011, we also launched the provision of umbilical cord tissue banking services in Hong Kong, which comprise the collection, processing, testing, cryopreservation

and storage of the umbilical cord tissue itself. As compared to cord blood which is a rich source of haematopoieic stem cells, cord tissue is a rich source of mesenchymal and epithelial stem cells and may help repair the body in different ways.

We currently provide Cord Blood Banking Services in Singapore and Hong Kong. We also provide Cord Blood Banking Services to customers from Indonesia, Macau and the Philippines. Cord blood collected from our customers from Indonesia and the Philippines are stored in our storage facilities in Singapore, whilst cord blood collected from our customers from Macau are processed, tested and stored in our facilities in Hong Kong. The Cord Blood Banking Services provided to our customers in Indonesia and the Philippines are provided pursuant to the Co-operation Agreement, whereby the CBB Group would market and sell Cord Blood Banking Services on behalf of our Group to any customer who wishes to store the cord blood units in Singapore or Hong Kong.

Pursuant to the marketing collaboration agreement dated 18 May 2011 entered into between Cordlife Hong Kong and China Cord Blood, we are also able to gain access to PRC expectant mothers in Beijing and the Guangdong and Zhejiang provinces who intend to deliver in Hong Kong and can therefore provide Cord Blood Banking Services to such customers, in Hong Kong. For the avoidance of doubt, the storage of cord blood units of our customers from Macau are not covered under this marketing collaboration agreement. Sales and marketing activities in respect of Macau are undertaken directly by Cordlife Hong Kong.

Our subsidiary, Cordlife Shanghai, is a wholly-owned foreign enterprise and was previously a dormant company. In January 2012, Cordlife Shanghai began the process of establishing a branch office in Shenzhen, Guangzhou, which will undertake marketing activities in the Guangdong province to promote our Cord Blood Banking Services offered in Hong Kong by educating expectant mothers in the Guangdong province who intend to deliver in Hong Kong about the benefits of cord blood banking, thus increasing their awareness towards such benefits. We believe that through the establishment of this branch office, coupled with the marketing collaboration agreement we have in place with China Cord Blood, we will be able to intensify our marketing efforts in the Guangdong province, which may in turn contribute to the expansion of our business operations in Hong Kong when these expectant mothers choose to store the cord blood units with us after delivery in Hong Kong.

Guangzhou Tianhe Nuoya (which is relevant due to our indirect 10.0% shareholding interest in it) is engaged in the business of providing Cord Blood Banking Services in Guangdong and is currently the sole licence-holder for the operation of a cord blood bank in Guangdong. Our Company’s investment in the PRC, through Guangzhou Tianhe Nuoya, is material to our Group’s overall business as it contributed 6.9%, 19.8% and 21.8% to our Group’s net profit for FY2010, FY2011 and 1Q2012. There was no contribution in FY2009.

Our processing facilities are located in Singapore and Hong Kong and we currently have stored in excess of 35,000 cord blood units in these two locations. We launched umbilical cord tissue banking services in Hong Kong in March 2011 to complement our cord blood banking services pursuant to the Cordlife Stem Cell Technology Co-operation Agreement. Please refer to the sections titled “General Information on our Group — Restructuring Exercise” and “History and Business — Collaboration” of this Prospectus.

Our Cord Blood Banking Services permits our customers to preserve their child’s stem cells contained in the umbilical cord blood and the umbilical cord tissue storage services that we launched in Hong Kong also permits our customers in Hong Kong to collect and store their child’s umbilical cord tissue, which may be used for treatment if their child so requires during his or her lifetime. Under certain conditions, cord blood may also be used to treat a sibling or family member as well.

Stem cells from the umbilical cord have a number of potential uses and are considered particularly promising for medical therapies. Significantly, the collection and use of stem cells can be clearly distinguished from the collection and use of stem cells taken from embryo (embryonic stem cells). While the use of embryonic stem cells in research may be controversial, due to ethical concerns, several religious groups, pro-life societies and regulators have expressed their support for stem cells for research and medical use. We have never been and we do not intend to be involved in the collection and storage of embryonic stem cells.

The provision of Cord Blood Banking Services has been our core business since our incorporation. The collection, processing, testing, cryopreservation and storage of umbilical cord tissue, was an additional service offering launched in March 2011 for customers who subscribe for our services in Hong Kong. In addition, we are currently also exploring the possibility of offering umbilical cord tissue banking services in Singapore. This sum will be financed by the internally generated funds of our Company. However, the medical technology related to umbilical cord tissue is currently still at a developmental and experimental stage.