Financial Performance - The company reported a loss attributable to shareholders of approximately $27.16 million, primarily due to an impairment loss of $13.3 million on intangible assets FortacinTM and amortization expenses of about $10.66 million[3]. - Shareholders' equity decreased to approximately $35.37 million, a reduction of about 43.42% compared to December 31, 2019, mainly due to the loss attributable to shareholders[3]. - Total revenue for the six months ended June 30, 2020, was $85,000, a decrease of 20.56% compared to $107,000 for the same period in 2019[11]. - Operating loss for the period was $15,480,000, with a significant increase in R&D expenses to $1,155,000 from $671,000 in the previous year[11]. - The net loss for the period was $27,156,000, compared to a net loss of $23,305,000 in the same period last year, reflecting a 16% increase in losses[14]. - The company's total assets decreased to $59,171,000 from $83,435,000 as of December 31, 2019, indicating a decline of 29.06%[15]. - The company's equity attributable to shareholders dropped to $35,365,000 from $62,503,000, a decrease of 43.25%[17]. - Basic and diluted loss per share for the period was $1.478, compared to $1.268 for the same period in 2019, representing a 16.54% increase in loss per share[14]. - The total comprehensive income for the period was $(27,139,000), compared to $(23,424,000) in the prior year, reflecting a worsening overall financial position[14]. - The company reported a total comprehensive income of $(23.423) million for the period, reflecting a significant decline compared to the previous year[20]. Impairment and Asset Valuation - The company incurred an impairment loss of $13.3 million on intangible assets during the reporting period[22]. - The fair value of FortacinTM decreased by $23,960,000, with significant reductions in the European market ($22,030,000) and the U.S. market ($3,210,000) during the first half of 2020[69]. - As of June 30, 2020, the carrying amount of intangible assets was $59,080,000, down from $83,037,000 as of December 31, 2019, reflecting a decrease of approximately 29%[65]. - The impairment loss for the FortacinTM patent was $13,300,000 for the six months ended June 30, 2020, compared to no impairment in the previous year[66]. Strategic Investments and Collaborations - The company is actively monitoring its strategic investments in Venturex Resources Limited and West China Coking & Gas Company Limited, holding approximately 7.51% and 25% of their respective total issued capital as of June 30, 2020[7]. - The company continues to collaborate with Youhua Biotech Co., Ltd. for the commercialization of FortacinTM in Hong Kong and Macau, with potential payments of up to $1.45 million based on market launch milestones[6]. - The company is focused on exploring acquisition and investment opportunities in the healthcare and life sciences sectors, particularly in patented technologies related to aging biomarkers[7]. - The company is in discussions with strategic partners in the Middle East, India, North America, and Latin America for potential licensing opportunities, although no agreements have been finalized[159]. COVID-19 Impact - The COVID-19 pandemic significantly impacted the company's operations, including delays in clinical trials and recruitment processes in certain regions[143]. - The ongoing COVID-19 pandemic is expected to adversely impact the company's operations, including the commercialization efforts of FortacinTM in China and other regions[170]. - The company continues to monitor the impact of COVID-19 on the distribution and marketing of FortacinTM, with Recordati resuming sales activities after initial lockdowns[159]. Financing and Cash Flow - The company has received a commitment for a loan financing of $6.8 million from Galloway Limited to cover all maturing current liabilities within twelve months after the reporting period[26]. - Cash flow from operating activities showed a net cash outflow of $3.916 million for the six months ended June 30, 2020, compared to an outflow of $4.488 million in the same period in 2019[22]. - The company’s financing activities generated a net cash inflow of $3.855 million, down from $4.403 million in the previous year[22]. - The company raised a total of $950,000 through the issuance of convertible bonds and $5,500,000 from shareholder loans and accrued salaries[84]. Research and Development - The company aims to complete the second phase of the FortacinTM validation study by the end of 2020, with a target of randomizing approximately 101 subjects[3]. - Research and development expenses related to FortacinTM's U.S. clinical trial activities amounted to £920,000 (approximately $1,150,000), down from £1,310,000 (approximately $1,690,000) in 2019[162]. - R&D expenses decreased by 31.36% to approximately $1.16 million, down from $1.69 million in 2019, primarily due to delays in patient recruitment for FortacinTM's Phase II study[183]. Corporate Governance and Management - The company maintains its commitment to corporate governance and social responsibility standards in accordance with the policies set by the Hong Kong Stock Exchange[187]. - The board has resolved not to declare an interim dividend for the six months ended June 30, 2020[198]. - Total remuneration for key management personnel was $774,000 for the six months ended June 30, 2020, down from $911,000 for the same period in 2019[125]. Future Outlook - The company expects to submit a New Drug Application (NDA) to the FDA in the first quarter of 2023, contingent on the successful completion of the second phase study and subsequent third phase study[148]. - The company remains confident in launching FortacinTM in Hong Kong and Macau in 2020, depending on the COVID-19 situation and production capabilities[158]. - The company is optimistic about the future prospects as it continues to make progress with the U.S. FDA regarding FortacinTM and ongoing discussions with potential commercial partners[172].
励晶太平洋(00575) - 2020 - 中期财报