REPUBLIC HC(08357) - 2025 - 中期财报

Company Information This section provides fundamental information about the company Financial Highlights For H1 2025, the Group's total revenue decreased by 16.7% to S$3.7 million, with gross profit down 17.5% to S$2.5 million, primarily due to market competition, macroeconomic pressures, and regulatory changes. Increased investment in the Philippine education business led to a net loss of S$1.2 million, significantly higher than S$0.15 million in the prior year, with no interim dividend declared 2025 H1 Key Financial Indicators | Indicator | 2025 H1 (S$) | 2024 H1 (S$) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 3.7 million | 4.5 million | -16.7% | | Gross Profit | 2.5 million | 3.1 million | -17.5% | | Net Loss After Tax | 1.20 million | 0.15 million | +700% | - The 16.7% decrease in medical business sales is primarily attributed to increased market competition, macroeconomic pressures, and regulatory developments[9][11] - Increased market competition: New entrants and existing providers expanding their reach have diverted patient groups - Macroeconomic pressures: Rising cost of living and economic uncertainty have made patients more price-sensitive, leading to delayed non-essential treatments or seeking more economical options - Regulatory developments: New healthcare regulations have increased compliance costs and operational burdens - The expansion of net loss is mainly due to increased investment in the Philippine education business, resulting in approximately S$0.49 million increase in other operating expenses[10] - The Board has resolved not to declare any dividend for the period, consistent with the prior year[14] Unaudited Condensed Consolidated Financial Statements This section presents the Group's unaudited financial statements for the six months ended June 30, 2025, including the statements of profit or loss, financial position, changes in equity, and cash flows, along with relevant accounting policies and notes. The statements indicate a decline in revenue, expanded losses, and increased cash outflows, yet maintain a stable asset and liability structure with no external borrowings Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, Group revenue was S$3.73 million, a 16.7% year-on-year decrease. Due to reduced revenue and other operating expenses increasing from S$0.99 million to S$1.48 million, the net loss for the period significantly widened from S$0.149 million in the prior year to S$1.217 million, resulting in a basic loss per share of 0.20 Singapore cents Key Items from Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item | 2025 (S$) | 2024 (S$) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 3,734,532 | 4,481,738 | -16.7% | | Other Operating Expenses | (1,482,966) | (989,395) | +49.9% | | Net Loss for the Period | (1,216,725) | (149,149) | +715.8% | | Basic Loss Per Share (Singapore cents) | (0.20) | (0.03) | +566.7% | Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were S$13.65 million, a slight decrease from S$14.48 million at the end of 2024. Total liabilities increased to S$2.34 million, mainly due to higher lease liabilities. Net assets (equity) decreased to S$11.31 million, while cash and cash equivalents remained strong at S$9.61 million, indicating robust liquidity Key Items from Consolidated Statement of Financial Position | Item | June 30, 2025 (S$) | December 31, 2024 (S$) | Period Change | | :--- | :--- | :--- | :--- | | Total Assets | 13,649,957 | 14,478,888 | -5.7% | | Total Liabilities | 2,342,840 | 1,928,113 | +21.5% | | Net Assets | 11,307,117 | 12,550,775 | -9.9% | | Cash and Cash Equivalents | 9,613,162 | 11,367,752 | -15.4% | Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to equity holders decreased from S$12.55 million at the beginning of the period to S$11.31 million at the end, primarily due to a total comprehensive loss of S$1.24 million recorded during the period - Total equity decreased from S$12,550,775 at the beginning of the period to S$11,307,117 at the end, primarily due to a total comprehensive loss of S$1,243,658 for the current period[20] Consolidated Statement of Cash Flows In H1 2025, the Group's net decrease in cash and cash equivalents was S$1.75 million. Operating activities shifted from a net cash inflow in the prior year to a net outflow of S$0.82 million, reflecting deteriorating business performance. Investing and financing activities recorded net cash outflows of S$0.64 million and S$0.29 million, respectively Cash Flow Statement Summary (For the six months ended June 30) | Item | 2025 (S$) | 2024 (S$) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (823,484) | 448,743 | | Net Cash from Investing Activities | (637,220) | (1,971,837) | | Net Cash from Financing Activities | (293,886) | (265,120) | | Net Decrease in Cash and Cash Equivalents | (1,754,590) | (1,788,214) | Notes to the Financial Statements The notes detail the basis of preparation, accounting policies, and specifics of various financial statement items. The Group's main businesses include operating medical diagnostic centers and providing healthcare-related education in Singapore. Revenue is disaggregated by service type, showing a year-on-year decline across all medical services (treatment, medical examination, consultation). The notes also disclose changes in non-current items such as property, plant and equipment, right-of-use assets, and lease liabilities. As of the reporting period end, the Group had no significant contingent liabilities - The Group primarily engages in two main businesses: (i) operating medical diagnostic centers and providing management consultancy services in Singapore; and (ii) healthcare-related education business[22] Revenue by Type of Medical Services (For the six months ended June 30) | Type of Medical Services | 2025 (S$) | 2024 (S$) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Treatment Services | 2,238,278 | 2,763,858 | -19.0% | | Medical Examination Services | 964,449 | 1,074,389 | -10.2% | | Consultation Services | 531,805 | 643,491 | -17.3% | | Total | 3,734,532 | 4,481,738 | -16.7% | - As of June 30, 2025, the Group had no significant contingent liabilities or guarantees[71] Management Discussion and Analysis Management attributes the 16.7% revenue decline to intense market competition and macroeconomic pressures. To address challenges, the company is actively pursuing strategic initiatives, including a planned investment in Long Valley Bio's dendritic cell (DC) vaccine technology to expand into Southeast Asia and Greater China, and positioning healthcare education as a new strategic growth pillar. Despite short-term investment-driven losses, the company maintains a robust financial position with no bank borrowings and S$9.6 million in cash. IPO proceeds have been fully utilized, with remaining placement proceeds earmarked for future acquisitions Business Review and Outlook The Group operates a network of medical clinics in Singapore under the "DTAP" brand. Facing a challenging market, the company is pursuing long-term value through strategic expansion and innovation. A key initiative involves an intended investment agreement with Long Valley Bio for its approved proprietary dendritic cell (DC) vaccine technology to treat malignant tumors, aiming to deepen its Southeast Asian presence and explore opportunities in Greater China. Additionally, healthcare education is a strategic development pillar to cultivate new sustainable revenue streams, with investments in technologies like telemedicine to enhance service quality - The company plans to invest in Long Valley Bio, leveraging its approved proprietary dendritic cell (DC) vaccine technology, to deepen its presence in Southeast Asia and explore high-growth opportunities in Greater China[74][75] - The company views healthcare education as a strategic focus area and a new sustainable revenue source, having launched a series of training programs[76] - To address intense competition, the company prioritizes enhancing service quality, integrating technology (such as telemedicine platforms and electronic medical records), and diversifying clinical services[76] Financial Review In H1 2025, revenue decreased by 16.7% year-on-year to S$3.7 million, and gross profit fell to S$2.5 million, though the gross profit margin remained relatively stable. Net loss expanded from S$0.1 million in the prior year to S$1.2 million, primarily due to lower revenue, a 3.9% increase in employee benefits expenses, and a significant rise in other operating expenses driven by investments in education business expansion and foreign exchange losses Financial Performance Review (For the six months ended June 30) | Indicator | 2025 H1 (S$) | 2024 H1 (S$) | Change | | :--- | :--- | :--- | :--- | | Revenue | approx 3.7 million | approx 4.4 million | -16.7% | | Gross Profit | approx 2.5 million | approx 3.1 million | -19.4% | | Employee Benefits Expenses | approx 2.05 million | approx 1.98 million | +3.9% | | Loss for the Period | approx 1.2 million | approx 0.1 million | Loss widened | - The increase in other operating expenses is primarily due to ongoing investments in education business expansion and foreign exchange losses related to foreign currency denominated balances[84] Liquidity and Capital Resources The Group primarily relies on internal cash flow and shareholder contributions for operations. As of June 30, 2025, cash and cash equivalents were approximately S$9.6 million, with no bank borrowings. The gearing ratio (total liabilities/total equity) increased from 6% at the end of 2024 to 11%, mainly due to higher lease liabilities. The capital structure is entirely equity-funded Liquidity and Capital Structure Indicators | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 9.6 million S$ | 11 million S$ | | Bank Borrowings | None | None | | Gearing Ratio | 11% | 6% | Use of Proceeds and Progress on Business Objectives The net IPO proceeds of S$9.1 million were fully utilized by June 30, 2025. Of the approximately HK$20 million (S$3.6 million) net proceeds from the 2021 placement, S$1.265 million remains unutilized, expected to be used in H2 2025 for acquiring potential businesses and expanding allied health services. The report details the comparison between business objectives in the prospectus and actual progress, showing most plans completed according to the revised allocation - The net IPO proceeds of approximately S$9.1 million have been fully utilized[100][101] Placement Proceeds Utilization Summary (As of June 30, 2025) | Purpose | Allocated Amount (S$ '000) | Utilized Amount (S$ '000) | Remaining Amount (S$ '000) | Expected Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Acquisition of Interests in Potential Businesses | 500 | 0 | 500 | H2 2025 | | Allied Health and Ancillary Healthcare Services | 1,000 | 441 | 559 | H2 2025 | | Other Utilized | 2,100 | 2,100 | 0 | - | | Total | 3,600 | 2,541 | 1,059 | | Corporate Governance and Other Information The company is committed to maintaining high standards of corporate governance and has complied with most code provisions of the GEM Listing Rules. The sole deviation is the non-separation of the Chairman and Chief Executive Officer roles, both held by founder Dr. Tan Chee Siang, which the Board believes facilitates efficient management. The report discloses that Dr. Tan, as the controlling shareholder, holds a 56.29% interest in the company. No share options were granted, nor were any share repurchases made during the period. The Audit Committee has reviewed this interim report and financial statements - The company has one corporate governance deviation: the roles of Chairman and Chief Executive Officer are not separated, both held by Dr. Tan Chee Siang. The Board believes this arrangement is in the best interest of the Group[107] - No share options have been granted since the adoption of the share option scheme[110] - Controlling shareholder Dr. Tan Chee Siang beneficially owns a total of 351,275,000 shares, representing 56.29% of the company's issued share capital, through controlled corporations and personally[111] - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements and this interim report[121]