Cordlife has been approved to renew its license, and its stock price surged over 18% | Lianhe Zaobao

Cordlife Group, a cord blood bank company, announced that the licenses for cord blood storage and human tissue storage services have been approved for renewal, effective immediately. Cordlife revealed on Wednesday (January 14) before the market opened that it received a notification from the Ministry of Health regarding the license renewal. The cord blood storage license has been approved for a one-year extension, valid until January 13 of next year. The license for human tissue storage services has been approved for a two-year extension, valid until January 13, 2028. However, the group remains subject to strict regulatory restrictions, including a prohibition on collecting, testing, processing, and storing new cord blood. The company's currently permitted business scope is limited to the storage, transfer, or testing of existing cord blood for clinical use. The group also noted that all operations in other jurisdictions, including Malaysia, Hong Kong, India, the Philippines, and Thailand, are still running normally. In December last year, Cordlife was requested by customers for compensation due to damage to 109 cord blood units in its storage tanks. Compensation of 50,000 yuan per unit was claimed, with a total claim amount of at least 5.45 million yuan. In response to customers filing a lawsuit against the company and seeking compensation, the group stated that it has submitted an application to the court to convert the customer claims into original claims and requested that the relevant applications and lawsuits be heard substantively together. Further Reading Cordlife Group sued by customers for over 5 million yuan Ministry of Health instructs Cordlife to cease collection and storage of new cord blood effective immediately Cordlife has formally submitted the conversion application summons and an affidavit on January 13 as per the court's instructions. The plaintiffs must respond by February 3. The board indicated that it will continue to assess the potential impact on the group's performance for the fiscal year 2026. If ultimately ordered to pay customer claims, it would negatively affect the group's financial condition. As of 10:25 AM on Wednesday, Cordlife Group's stock price surged 18.11% to 0.15 yuan