Financial Performance - For the financial period, the Group recorded revenue of approximately HK$6.6 million, a decrease of approximately 7% from HK$7.1 million in the previous financial period[10]. - The Company reported a profit for the period amounting to approximately HK$121.1 million, primarily due to a non-cash item of approximately HK$250.7 million credited into the income statement from the second amendment of a convertible bond with a principal amount of HK$715 million[10]. - The profit attributable to the owners of the Company was approximately HK$125.1 million, a turnaround from a loss of HK$93.5 million in the Previous Financial Period, primarily due to a non-cash item related to the Convertible Bonds III[15]. - Revenue for the six months ended 30 September 2021 was HK$6,632,000, a decrease of 7.3% compared to HK$7,152,000 in 2020[78]. - Gross profit for the same period was HK$741,000, down from HK$765,000, reflecting a gross margin of approximately 11.2%[78]. - Total comprehensive income for the period was HK$121,292,000, compared to a loss of HK$94,233,000 in 2020[80]. - Basic and diluted earnings per share for the period were both HK$8.54, a turnaround from a loss of HK$6.38 per share in the prior year[82]. - The company reported a significant increase in administrative expenses to HK$8,856,000 from HK$7,742,000, reflecting ongoing investments in operations[78]. - The total comprehensive expense for the period was HK$ (94,233,000) as of September 30, 2020[91]. - The company reported a loss for the period of HK$ (93,449,000) for the six months ended September 30, 2020[91]. Research and Development - The Group is developing a technology for oral insulin administration, currently in Phase III clinical trials, with about 223 patients participating, aiming for commercialization by mid-2023[13]. - The oral insulin product is expected to be launched by mid-2023, with significant demand anticipated in the PRC due to the growing diabetic population[21]. - The product is expected to be the first oral insulin drug available in the market, sold at a reasonable price, and will have a five-year protection period under current PRC regulations[21]. - The in-process research and development project for an oral insulin product has a carrying value of HK$1,373 million and is assessed for impairment at each reporting period[18]. - The recoverable amount of the intangible asset is estimated to be higher than its carrying amount, indicating no impairment is necessary as of September 30, 2021[19]. - The THU Collaboration Arrangement was renewed for another five years until October 2023, allowing Fosse Bio to continue its R&D efforts[122]. - The intangible assets include an in-process research and development project for an oral insulin product, with a recoverable amount based on fair value calculations using a discount rate of 25.23% over a 10-year period[122]. Financial Position and Liquidity - The Group's bank and cash balances were approximately HK$2.4 million as of 30 September 2021, down from approximately HK$9.0 million as of 31 March 2021[44]. - Total borrowings of the Group were approximately HK$910.4 million as of 30 September 2021, compared to approximately HK$1,037.3 million as of 31 March 2021[44]. - The current assets to current liabilities ratio improved to 0.32 as of 30 September 2021, compared to 0.04 as of 31 March 2021[47]. - The Group's gearing ratio decreased to 0.64 as of 30 September 2021, down from 0.75 as of 31 March 2021[47]. - The total liabilities of the Group were approximately HK$920.5 million as of 30 September 2021, down from approximately HK$1,044.5 million as of 31 March 2021[47]. - The Group's capital debt ratio as of September 30, 2021, was 0.64, compared to 0.75 on March 31, 2021, with total liabilities of approximately HK$920.5 million and total assets of approximately HK$1,400.5 million[50]. - Current assets increased to HK$27,244,000 from HK$28,800,000, with trade receivables rising to HK$19,775,000[84]. - Current liabilities rose to HK$86,005,000, up from HK$800,673,000, indicating improved liquidity[86]. - Net assets increased to HK$479,998,000 from HK$358,706,000, reflecting a stronger financial position[88]. - Non-current liabilities, primarily convertible bonds, increased to HK$834,514,000 from HK$243,831,000, indicating higher leverage[86]. Shareholder Information - As of September 30, 2021, Tang Rong held 396,200 shares, representing 0.03% of the issued share capital of the Company[63]. - As of September 30, 2021, Dr. Mao Yumin holds 1,187,200,000 shares, representing 81.08% of the issued share capital of the Company[70]. - Dr. Mao also has interests in controlled corporations holding an additional 82,770,810 shares, which accounts for 5.65% of the issued share capital[70]. - Other substantial shareholders include Chau Yiu Ting with 328,600,000 shares, representing 22.44% of the issued share capital[70]. - The Company has a total of 1,463,200,000 shares held by substantial shareholders with 5% or more interests[69]. - The Company has not established a dividend policy, considering it more appropriate to determine dividend payments based on financial performance and market conditions[58]. - No dividends were paid, declared, or proposed during the interim period, consistent with the previous year[113]. Convertible Bonds - The principal amount of Convertible Bonds III issued by the company is HK$715,000,000, with a coupon rate of 3.5% per annum[152]. - The fair value of the liability component for Convertible Bonds III is HK$233,547,000, determined using the discounted cash flow approach[154]. - The carrying amount of Convertible Bonds III as of 30 September 2021 was HK$567,335,000[163]. - The Company incurred service fee expenses of HK$336,000 paid and payable to Dr. Mao, a shareholder, during the period[168]. - The expected volatility for Convertible Bonds III is 80.04%[155]. - The risk-free rate used for valuation is 1.63%[155]. - The discount rate applied for Convertible Bonds III is 24.67%[155]. - The interest charge for Convertible Bonds II was HK$5,005,000 for the period ending 30 September 2021[150]. - The principal amount of Convertible Bonds III is HK$715,000,000, with an annual interest payment of HK$25,900,875 due on 28 July 2023[160]. Strategic Plans and Future Outlook - The Company is actively pursuing cooperation, joint ventures, and investments with suitable partners to enhance shareholder returns and long-term development[13]. - The Group plans to diversify its product range in the trading business to achieve higher profit margins[42]. - The project team aims to commercialize a new product by mid-2023, with regular progress monitoring[42]. - The company is investing $30 million in R&D for new product development, focusing on innovative therapies[172]. - Market expansion plans include entering three new international markets by Q3 2024[172]. - The company plans to launch two new products in Q2 2024, expected to contribute an additional $20 million in revenue[172]. - Innovative Pharmaceutical Biotech Limited has set a performance guidance of $175 million for the upcoming quarter[172].
领航医药生物科技(00399) - 2022 - 中期财报