中国生物科技服务(08037) - 2025 - 中期业绩

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The company reported a significant reduction in losses across all key metrics, driven by revenue growth and a shift from gross loss to gross profit Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 38,872 | 32,449 | +19.8% | | Gross Profit/(Loss) | 2,542 | (3,107) | Turned from loss to profit | | Operating Loss | (19,308) | (124,588) | Loss narrowed by 84.5% | | Loss Before Tax | (37,159) | (126,258) | Loss narrowed by 70.6% | | Loss for the Period | (36,753) | (125,731) | Loss narrowed by 70.8% | | Loss Attributable to Owners of the Company | (32,006) | (79,917) | Loss narrowed by 60.0% | | Basic and Diluted Loss Per Share (HKD) | (0.033) | (0.083) | Loss narrowed by 60.2% | Condensed Consolidated Statement of Financial Position The company's total assets increased slightly, while current assets decreased and total liabilities rose, leading to a decline in total equity Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 538,426 | 529,955 | +1.6% | | Total Non-Current Assets | 502,598 | 466,860 | +7.6% | | Total Current Assets | 35,828 | 63,095 | -43.2% | | Total Equity | 211,886 | 242,388 | -12.6% | | Total Liabilities | 326,540 | 287,567 | +13.5% | | Total Non-Current Liabilities | 130,849 | 94,953 | +37.8% | | Total Current Liabilities | 195,691 | 192,614 | +1.6% | - Property, plant and equipment increased to HKD 248,508 thousand (December 31, 2024: HKD 219,341 thousand), primarily due to additions to construction in progress[5] - Bank and cash balances decreased to HKD 11,290 thousand (December 31, 2024: HKD 18,913 thousand), reflecting the use of funds for operations and the construction of the BNCT center[5] Notes to the Condensed Consolidated Financial Statements The notes provide detailed explanations of the Group's business, accounting policies, and financial performance, highlighting going concern uncertainties and mitigation efforts 1. General Information The company is a GEM-listed entity with diverse healthcare businesses in Hong Kong and mainland China, including medical testing, immunotherapy, and BNCT services - The company's main businesses include medical laboratory testing, health checks, and insurance brokerage services in Hong Kong, as well as oncology immune cell therapy, health management, BNCT services, and sales of healthcare pharmaceutical products in mainland China[7] - The company is listed on GEM of The Stock Exchange of Hong Kong Limited[8] 2. Basis of Preparation and Accounting Policies The interim financial information is prepared under HKAS 34, with significant going concern uncertainties due to losses and current liabilities exceeding current assets, addressed by cost control and financing efforts - For the six months ended June 30, 2025, the Group recorded a loss of approximately 36,753 thousand HKD, with current liabilities exceeding current assets by approximately 159,863 thousand HKD, indicating significant uncertainty about its ability to continue as a going concern[11] - To alleviate liquidity pressure, the Group is implementing operational plans to control costs, optimize resource allocation, reduce staff costs, and actively seeking alternative financing, borrowings, and fundraising solutions (such as placing shares and issuing convertible bonds)[13] - The Group is exploring the realization of financial assets measured at fair value through other comprehensive income to support operations and growth[13] 3. Revenue The Group's revenue increased by 19.8%, primarily driven by a substantial rise in insurance brokerage services, partially offset by a decline in medical laboratory testing and health check services Segment Revenue by Service Category | Service Category | 2025 (HKD thousands) | 2024 (HKD thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Medical Laboratory Testing and Health Check Services | 16,164 | 19,729 | -18.1% | | Insurance Brokerage Services | 22,640 | 12,255 | +84.7% | | Sales and Distribution of Healthcare-related and Pharmaceutical Products and Other Services | – | 437 | -100% | | Logistics Services | 68 | 28 | +142.9% | | Total Revenue | 38,872 | 32,449 | +19.8% | 4. Segment Information The Group operates six segments, with significant growth in insurance brokerage and BNCT profitability, with capital expenditure focused on BNCT and medical/healthcare and immunotherapy segments remain in loss Segment Revenue and (Loss)/Profit Segment Revenue (For the six months ended June 30): | Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Medical Laboratory Testing and Healthcare-related Services | 16,164 | 19,729 | | Insurance Brokerage | 22,640 | 12,255 | | Pharmaceutical Products | – | 437 | | Other | 68 | 28 | | Total | 38,872 | 32,449 | Segment (Loss)/Profit (For the six months ended June 30): | Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Medical Laboratory Testing and Healthcare-related Services | (14,788) | (71,707) | | Immunotherapy | (13,118) | (25,206) | | Boron Neutron Capture Therapy | 8,776 | (3,147) | | Insurance Brokerage | 1,870 | (62) | | Pharmaceutical Products | (720) | (485) | | Other | (340) | (342) | | Total | (18,320) | (100,949) | - Total capital expenditure in 2025 amounted to 22,700 thousand HKD, with 22,692 thousand HKD allocated to Boron Neutron Capture Therapy[21] - Impairment loss on right-of-use assets in 2025 was 3,524 thousand HKD[21] 5. Other Income and Gains/(Losses), Net Net other income and gains for the period significantly turned from a loss in 2024 to a gain, primarily due to storm damage compensation and exchange gains Other Income and Gains/(Losses), Net | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Compensation Income | 13,695 | – | | Exchange Gains/(Losses), Net | 6,576 | (12,504) | | Loss on Derecognition of Property, Plant and Equipment | – | (15,901) | | Total | 21,728 | (26,460) | - Compensation income of 13,695 thousand HKD relates to insurance claims for storm damage at a Hainan construction site in 2024[23] 6. Finance Costs Finance costs substantially increased due to higher interest on convertible bonds, put option liabilities, and other borrowings Finance Costs Breakdown | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 523 | 814 | | Interest on Other Borrowings | 4,191 | 1,115 | | Interest on Loans from Controlling Shareholder | 1,291 | 205 | | Interest on Convertible Bonds and Put Option Liabilities | 6,294 | 2,158 | | Interest on Lease Liabilities | 237 | 394 | | Total | 12,536 | 4,686 | 7. Loss Before Tax Loss before tax significantly narrowed, driven by reduced research and development, staff costs, and inventory write-downs, partially offset by impairment loss on right-of-use assets Loss Before Tax Components | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Research and Development Costs | 5,965 | 17,593 | | Staff Costs (Salaries, Bonuses and Allowances) | 25,021 | 38,985 | | Write-down of Inventories | 194 | 5,089 | | Derecognition of Property, Plant and Equipment | – | 15,901 | | Impairment Loss on Right-of-Use Assets | 3,524 | – | 8. Income Tax Credit Income tax credit for the period was slightly lower than the prior year, primarily derived from deferred income tax Income Tax Credit Breakdown | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Current Income Tax | (195) | (78) | | Deferred Income Tax | 601 | 605 | | Total | 406 | 527 | 9. Dividends The Board does not recommend any dividend payment for the current interim period, consistent with the prior year - The Board does not recommend the payment of any dividend for the period[27] 10. Loss Per Share Basic and diluted loss per share attributable to owners of the Company significantly improved, reflecting a reduction in per-share losses Basic and Diluted Loss Per Share | Metric | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (0.033) | (0.083) | - The weighted average number of ordinary shares used for calculating basic and diluted loss per share increased from 963,231 thousand in 2024 to 975,731 thousand in 2025[29] 11. Property, Plant and Equipment The primary addition to property, plant and equipment for the period was significant investment in construction in progress - Main addition was 22,692 thousand HKD for construction in progress[30] 12. Goodwill The carrying amount of goodwill increased, primarily influenced by exchange differences during the period Goodwill Carrying Amount | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Carrying Amount | 107,225 | 104,792 | | Exchange Differences | 3,331 | (2,389) | 13. Intangible Assets The net carrying amount of intangible assets decreased, mainly due to amortisation expense, partially offset by exchange differences Intangible Assets Net Carrying Amount | Metric | June 30, 2025 (HKD thousands) | June 30, 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Carrying Amount at End of Period | 32,013 | 52,623 | | Amortisation Expense | (4,005) | (4,036) | | Exchange Differences | 1,074 | (985) | 14. Trade and Other Receivables, Deposits and Prepayments Net trade receivables increased, with a significant portion of deposits allocated to purchasing BNCT drugs from a Japanese pharmaceutical company Trade and Other Receivables, Deposits and Prepayments | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Trade Receivables | 7,988 | 7,033 | | Rental and Other Deposits | 56,799 | 51,822 | | Other Receivables | 8,246 | 14,012 | | Prepayments | 3,490 | 1,991 | | Total | 76,547 | 74,872 | - Rental and other deposits include 54,559 thousand HKD (equivalent to 1,000,000,000 JPY) as a deposit paid to a Japanese pharmaceutical company for Boron Neutron Capture Therapy drugs to be used at the Hainan BNCT Cancer Treatment Centre[32] 15. Trade Payables Total trade payables increased as of June 30, 2025, compared to December 31, 2024 Trade Payables Ageing Analysis | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 90 days | 4,440 | 4,883 | | 91 to 180 days | 1,278 | 1,549 | | 181 to 365 days | 1,610 | 166 | | Over 365 days | 770 | 755 | | Total | 8,098 | 7,353 | 16. Convertible Bonds and Derivative Financial Liabilities The Group's convertible bonds and related derivative financial liabilities, including written put option liabilities, saw increases in their fair values - In December 2024, convertible bonds with a principal amount of 6,000,000 USD (approximately 47,100 thousand HKD) were issued at an annual interest rate of 8.25% and an initial conversion price of 1.20 HKD per share[35] Convertible Bonds and Derivative Financial Liabilities | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Convertible Bonds - Liability Component | 42,919 | 41,635 | | Convertible Bonds - Fair Value of Derivative Component | 11,317 | 6,002 | | Written Put Option Liabilities | 45,065 | 40,480 | - The effective interest rate applied to the convertible bonds' liability component was 15.0% (2024: 8.62%)[36] 17. Borrowings Total borrowings increased, primarily for working capital and BNCT center development, secured by various assets, with the Group complying with all financial covenants Total Borrowings and Analysis Total Borrowings (HKD thousands): | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank Borrowings | 33,981 | 25,981 | | Other Borrowings | 99,041 | 87,940 | | Loans from Controlling Shareholder | 28,074 | 24,772 | | Total | 161,096 | 138,693 | Borrowings Analysis (HKD thousands): | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Portion | 139,179 | 138,693 | | Non-Current Portion | 21,917 | – | - Borrowing interest rates range from LPR minus 0.45% or 3.45%–3.85% for bank borrowings, 6%–18% for other borrowings, and 10% for controlling shareholder loans[39] - Borrowings are primarily secured by construction in progress (233,866 thousand HKD), China land use rights (11,799 thousand HKD), property, plant and equipment (10,743 thousand HKD), other receivables (1,864 thousand HKD), intangible assets (30,689 thousand HKD), and a 47% equity interest in a subsidiary[40][41] - The Group has complied with the financial covenants of its borrowing facilities[42] 18. Contingent Liabilities The Group reported no material contingent liabilities as of June 30, 2025 - The Group had no material contingent liabilities[43] 19. Related Party Transactions Related party transactions for the period primarily included interest expenses paid to the controlling shareholder and key management personnel remuneration Related Party Transactions Summary | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest Expenses Paid to Controlling Shareholder | 1,291 | 205 | | Key Management Personnel Remuneration | 2,589 | 3,615 | 20. Events After Reporting Period Post-reporting period events include a strategic financing agreement where BGI-Songhe will provide a loan to Pengbo (Hainan), convertible into Dynamic Healthcare shares - BGI-Songhe will provide a 30 million RMB loan to Pengbo (Hainan), which will be converted into shares of Dynamic Healthcare Holdings Limited[46] - BGI-Songhe will hold up to 6.25% of Dynamic Healthcare's enlarged issued share capital[46] Financial Review The financial review highlights a significant reduction in net loss, improved gross margin, and reduced operating expenses, despite increased finance costs - Revenue for the period was approximately 38.9 million HKD, an increase of 19.8% year-on-year, primarily driven by growth in the insurance brokerage services segment, partially offset by a decline in the medical laboratory testing and health check services segment[48] - Gross profit turned from a loss of approximately 3.1 million HKD in the prior year to a profit of approximately 2.5 million HKD, with gross margin improving to 6.5%, mainly due to a significant reduction in inventory write-downs[49] - Selling and distribution expenses decreased by 44.6% to 3.6 million HKD, administrative expenses decreased by 52.0% to 34.0 million HKD, and research and development costs decreased by 66.1% to 6.0 million HKD, primarily due to reduced staff costs, fewer one-off legal claims, and lower late-stage clinical trial expenses[50][51][52] - Finance costs increased to 12.5 million HKD, mainly due to additional bank and other borrowings for working capital and the construction of the BNCT Cancer Treatment Centre[53] - Net loss attributable to owners of the Company decreased by 60.0% to 32.0 million HKD, primarily due to cost control measures, improved gross margin, reduced administrative expenses, and 13.7 million HKD in insurance compensation income[54] Business Review The business review covers strategic financing, progress on the BNCT center, expanded drug cooperation, new insurance products, and advancements in CAR-T clinical trials - Pengbo (Hainan) secured 30 million RMB in strategic financing from BGI-Songhe to strengthen its development foundation[55] - The BNCT Cancer Treatment Centre is under construction in Hainan, targeting opening and operation by end of 2025, having obtained medical institution practice license and medical device import approval[57] - Signed an MOU with STELLA PHARMA CORPORATION to expand cooperation for BNCT drug STEBORONINE® in China, including exclusive manufacturing and sales rights, with plans for localized production[58] - Collaborated with AXA Insurance (Bermuda) Limited to develop comprehensive medical insurance products covering BNCT cancer treatment costs and related services[59] - Shanghai Longyao's LY007 cell injection (China's first clinically approved CD20-targeted CAR-T therapy) has completed Phase I clinical trials, with Phase II trials planned to commence by end of 2025[61] - Phase I clinical results for LY007 cell injection have been presented at international conferences like ASCO and ASH, and invited for presentation at ICML and EHA[64] Outlook The Group's outlook focuses on laboratory upgrades, expanding healthcare services, commercializing CAR-T products, operationalizing the BNCT center, and developing integrated treatment models and insurance products - The Group has upgraded its laboratory with Hong Kong's first customized virtual biochemistry immunoassay automation system, collaborating with institutions for contract research services and public health screening/vaccination programs[66] - Demand for health checks and related medical services is expected to continue growing due to increased public health awareness, an aging population, and rising demand for private healthcare services[67] - The Group aims to advance the commercialization of its CAR-T product LY007 cell injection, pushing for domestic Phase II clinical trials and commercial partnerships, including international patenting, with Phase II trials expected to start by end of 2025[68] - The Group is committed to ensuring the BNCT Cancer Treatment Centre is operational by end of 2025, planning a China-wide treatment network, developing franchised hospitals, and generating new revenue from equipment sales and related services[69] - Deepen industry-academic research integration with leading hospitals to explore a new "diagnosis-treatment integrated" BNCT model[70] - Strengthen cooperation with insurance companies to develop inclusive BNCT medical insurance products and establish patient referral partnerships with domestic hospitals to enhance accessibility and reduce financial burden[71] Events After Reporting Period Details of events after the reporting period are set out in Note 20 to the unaudited condensed consolidated financial statements - Details of events after the reporting period are set out in Note 20 to the unaudited condensed consolidated financial statements[73] Liquidity, Financial Resources and Capital Structure The Group's liquidity shows decreased cash balances and increased borrowings, with capital commitments for property, plant and equipment, and secured loans - Cash and bank balances decreased to 11,290 thousand HKD (December 31, 2024: 18,913 thousand HKD), primarily used for operating activities and the construction of the BNCT Cancer Treatment Centre[75] - Outstanding convertible bonds amounted to approximately 42,919 thousand HKD, with an annual interest rate of 8.25%, maturing on December 27, 2026[75] - Total borrowings increased to 161,096 thousand HKD (December 31, 2024: 138,693 thousand HKD), mainly due to additional borrowings for working capital and the development of the BNCT Cancer Treatment Centre[76] Financial Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt-to-Equity Ratio | 60.6% | 54.3% | | Current Ratio | 0.18 times | 0.33 times | - Capital commitments for property, plant and equipment increased to 153,210 thousand HKD (December 31, 2024: 122,560 thousand HKD)[79] - Borrowings are secured by Pengbo (Hainan)'s land use rights, construction in progress, property, plant and equipment, other receivables, intangible assets, and equity interest in a subsidiary[80][81] - The Group has no material contingent liabilities and uses hedging instruments to manage foreign exchange and interest rate risks[82][83] Material Investments Held and Performance The Group holds significant investments in precision cancer diagnostics companies, with strategic collaborations expected to generate synergies with its medical testing services - The Group holds investments in Pillar Biosciences, Inc and Zhengu Diagnostics Holdings Limited (precision cancer diagnostics companies) with a fair value of approximately 43,703 thousand HKD, representing 8.12% of total assets[84] - Pillar Biosciences, Inc recorded an unaudited loss of approximately 17,000,000 USD in 2024, and the Group received no dividend income from Pillar during the period[85] - Strategic cooperation with Pillar led to the establishment of Asia Molecular Diagnostics Laboratory Limited in Hong Kong, offering next-generation sequencing precision cancer diagnostic services, expected to generate synergies with the Group's medical testing services[85] Material Acquisitions and Disposals of Subsidiaries and Associates The Group did not engage in any material acquisitions or disposals of subsidiaries and associates during the reporting period - The Group did not undertake any material acquisitions or disposals of subsidiaries and associates during the period[86] Employees and Remuneration Policy The Group's employee count slightly decreased, with remuneration policies based on performance, experience, and market rates, including various benefits and incentive schemes - As of June 30, 2025, the Group employed 133 full-time employees (June 30, 2024: 142)[87] - Remuneration is determined based on performance, experience, and market rates, including discretionary bonuses, MPF scheme, retirement benefit scheme contributions, insurance and medical, training, and participation in share option and share award schemes[87] Share Option Scheme The company adopted a share option scheme in 2024, but no options were granted during the current reporting period - The company adopted a share option scheme on June 6, 2024, but no share options were granted during the period[88] Share Award Scheme The company adopted a share award scheme in 2021, but no shares were subscribed for, received, purchased, or granted under the scheme during the current period - The company adopted a share award scheme on August 18, 2021, but the trustee neither subscribed for, received, nor purchased any company shares, nor did the company grant any shares under the scheme during the period[89] [Directors' Rights to Acquire Shares or Debentures](index=35&