亿胜生物科技(01061) - 2025 - 中期财报

Condensed Consolidated Financial Statements Overview of the company's financial performance, position, equity changes, and cash flows for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue increased by 5.8% to HK$876.5 million, with profit for the period rising 3.8% to HK$163.4 million | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 876,535 | 828,541 | 5.8% | | Cost of sales | (97,932) | (89,742) | 9.1% | | Gross profit | 778,603 | 738,799 | 5.4% | | Other income and gains/losses | (691) | 17,157 | -104.0% | | Distribution and selling expenses | (471,638) | (450,305) | 4.7% | | Administrative expenses | (99,740) | (102,879) | -3.0% | | Finance costs | (2,800) | (3,442) | -18.7% | | Profit before income tax | 203,573 | 197,380 | 3.1% | | Income tax | (40,172) | (39,940) | 0.6% | | Profit for the period | 163,401 | 157,440 | 3.8% | | Total comprehensive income for the period | 184,449 | 117,349 | 57.2% | | Basic earnings per share | 28.82 HK cents | 27.74 HK cents | 3.9% | | Diluted earnings per share | 28.82 HK cents | 26.90 HK cents | 7.1% | Condensed Consolidated Statement of Financial Position Total assets grew to HK$3.23 billion, with both non-current and current assets increasing, and a slight rise in the debt-to-asset ratio | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 1,791,926 | 1,699,744 | 5.4% | | Total current assets | 1,441,842 | 1,283,301 | 12.3% | | Total assets | 3,233,768 | 2,983,045 | 8.4% | | Total current liabilities | 757,806 | 708,978 | 6.9% | | Total non-current liabilities | 202,138 | 150,347 | 34.5% | | Total liabilities | 959,944 | 859,325 | 11.7% | | Total equity | 2,273,824 | 2,123,720 | 7.1% | Condensed Consolidated Statement of Changes in Equity Total equity increased to HK$2.27 billion, driven by profit for the period and foreign currency translation reserve changes - Profit for the period was HK$163,401 thousand, a primary factor in the increase in equity[9] - Foreign currency translation reserve shifted from a negative HK$41,016 thousand in 2024 to a positive HK$38,771 thousand in 2025, positively impacting total comprehensive income[9] - Dividends paid amounted to HK$34,020 thousand, and shares repurchased and cancelled totaled HK$325 thousand[9] Condensed Consolidated Statement of Cash Flows Net cash from operating activities was HK$122.5 million, with significant outflows from investing and inflows from financing activities | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 122,487 | 131,664 | -7.0% | | Net cash used in investing activities | (111,104) | (40,824) | 172.1% | | Net cash generated from financing activities | 58,971 | 5,949 | 891.3% | | Net increase in cash and cash equivalents | 70,354 | 96,789 | -27.3% | | Cash and cash equivalents at end of period | 640,533 | 598,414 | 7.0% | - Net cash used in investing activities significantly increased by 172.1%, primarily due to increased additions to property, plant and equipment and other intangible assets[10] - Net cash from financing activities grew substantially by 891.3%, mainly driven by increased proceeds from bank borrowings[11] Notes to the Condensed Consolidated Interim Financial Statements Provides detailed explanations and disclosures for the condensed consolidated interim financial statements General Information Esun Holdings Limited is incorporated in the Cayman Islands, listed on HKEX, focusing on investment holding and biopharmaceutical business - The Company is incorporated in the Cayman Islands, with stock code 1061 listed on the Main Board of the Hong Kong Stock Exchange[12] - Principal activities include investment holding, and the development, manufacture, and sale of biopharmaceutical products[13] Basis of Preparation Interim financial statements are prepared in accordance with HKAS 34 and HKEX Listing Rules, presented in HKD - Financial statements adhere to Hong Kong Accounting Standard 34 and the HKEX Listing Rules[14] - Interim income tax is calculated based on the applicable tax rates for each Group entity[15] Accounting Policies Accounting policies are consistent with the 2024 annual financial statements, with no significant impact from new standards - Accounting policies are consistent with the 2024 annual financial statements, with no material impact from newly adopted standards[16] Segment Reporting The Group manages and reports segments by business type (Ophthalmology, Surgery, Services), with independent performance monitoring - The Group's business is divided into three reportable operating segments: Ophthalmology, Surgery, and Services[17] - Segment performance is assessed based on the results of each business unit to support resource allocation decisions[18] Reportable Segments Both Ophthalmology and Surgery segments saw revenue growth, with Services revenue also increasing, but Surgery profit declined | Segment | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Revenue Change (%) | Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | | Ophthalmology Revenue | 417,358 | 377,391 | 10.6% | 1.7% | | Ophthalmology Profit | 113,486 | 111,552 | | | | Surgery Revenue | 448,965 | 444,568 | 1.0% | -7.4% | | Surgery Profit | 120,946 | 130,626 | | | | Services Revenue | 10,212 | 6,582 | 55.1% | 25.2% | | Services Profit | 7,636 | 6,098 | | | | Total Revenue | 876,535 | 828,541 | 5.8% | | | Total Profit | 242,068 | 248,276 | | -2.5% | - Surgery segment profit decreased by 7.4% year-on-year, while Ophthalmology and Services segments both saw profit growth[19] Geographical Information Major revenue is from China, with growing overseas business; non-current assets are primarily in China and Hong Kong | Region | Six Months Ended June 30, 2025 Revenue (HKD thousands) | Six Months Ended June 30, 2024 Revenue (HKD thousands) | Revenue Change (%) | | :--- | :--- | :--- | :--- | | China | 871,700 | 825,200 | 5.6% | | Overseas | 4,800 | 3,300 | 45.5% | | Region | June 30, 2025 Non-current Assets (HKD thousands) | December 31, 2024 Non-current Assets (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | China | 1,440,271 | 1,330,880 | 8.2% | | Hong Kong | 273,381 | 274,229 | -0.3% | | Overseas | 33,479 | 33,276 | 0.6% | Information about Major Customers Two major customers contributed approximately 36.5% of total revenue, with one contributing HK$230.4 million and another HK$89.2 million - Sales to two major customers amounted to HK$230.4 million and HK$89.2 million respectively, collectively accounting for over 10% of total revenue[23] Revenue Revenue represents the value of product sales and service income after deducting sales taxes, VAT, discounts, and returns - Revenue is defined as the value of product sales and service income, net of sales taxes, VAT, commercial discounts, and sales returns[24] Other Income and Other Gains and Losses Other income and gains/losses were negative HK$0.69 million, a significant decrease from HK$17.16 million, mainly due to litigation claims and fair value changes | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net income from litigation claims | (10,067) | 21,153 | -31,220 | | Fair value changes of financial assets at FVTPL | (23) | (6,366) | 6,343 | | Government grants | 1,495 | 3,375 | -1,880 | | Interest income from bank deposits | 4,474 | 5,941 | -1,467 | | Total | (691) | 17,157 | -17,848 | - Net income from litigation claims shifted from a positive HK$21.15 million in 2024 to a negative HK$10.07 million in 2025, representing the primary driver of change[25] Finance Costs Total finance costs decreased by 18.7% to HK$2.8 million, primarily due to reduced imputed interest expense on convertible loans | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Interest expense on bank borrowings | 2,965 | 1,667 | 1,298 | | Interest expense on lease liabilities | 497 | 528 | -31 | | Imputed interest expense on convertible loans payable | – | 2,849 | -2,849 | | Less: Amount capitalized | (662) | (1,602) | 940 | | Total | 2,800 | 3,442 | -642 | - There was no imputed interest expense on convertible loans payable in 2025, compared to HK$2.85 million in the same period of 2024[26] Profit Before Income Tax Profit before income tax increased by 3.1% to HK$203.6 million, influenced by net exchange gains and higher R&D costs | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Exchange (gains)/losses, net | (12,017) | 2,432 | -14,449 | | Research and development costs recognized as expense | 21,664 | 12,479 | 9,185 | | Cost of inventories | 94,934 | 86,033 | 8,901 | | Depreciation of property, plant and equipment | 14,102 | 12,588 | 1,514 | - Net exchange shifted from a loss of HK$2.43 million in 2024 to a gain of HK$12.02 million in 2025, positively impacting profit[27] - Research and development costs recognized as expense increased by 73.6% year-on-year, indicating increased R&D investment[27] Income Tax The Group has no taxable profit in Hong Kong, while its main operating subsidiary in Zhuhai enjoys a 15% preferential tax rate as a high-tech enterprise - No provision for profits tax was made in Hong Kong, and the Zhuhai high-tech enterprise subsidiary benefits from a 15% preferential tax rate[28][29] Dividends The Board declared an interim dividend of HK$0.07 per ordinary share, an increase from HK$0.06 in the prior year - The 2025 interim dividend is HK$0.07 per share, an increase from HK$0.06 per share in the same period of 2024[30] Earnings Per Share Basic and diluted earnings per share were both HK$0.2882, higher than the prior year, with no dilutive effect from convertible loans | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company for basic EPS (HKD thousands) | 163,401 | 157,440 | 3.8% | | Profit attributable to owners of the Company for diluted EPS (HKD thousands) | 163,401 | 159,525 | 2.4% | | Weighted average number of ordinary shares for basic EPS | 567,035,271 | 567,547,170 | -0.09% | | Weighted average number of ordinary shares for diluted EPS | 567,035,271 | 592,970,898 | -4.38% | - In 2025, there was no potential dilutive effect from convertible loans payable, resulting in the same number of shares used for basic and diluted EPS calculations[32] Property, Plant and Equipment The carrying amount of property, plant and equipment increased to HK$439.8 million, driven by additions and positive exchange adjustments | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total cost | 627,668 | 562,634 | 11.6% | | Total accumulated depreciation | 187,836 | 168,654 | 11.4% | | Total carrying amount | 439,832 | 393,980 | 11.6% | - Additions during the period amounted to HK$47.86 million, primarily for construction in progress[33] - Exchange adjustments contributed a positive impact of HK$17.62 million[33] Other Intangible Assets The carrying amount of other intangible assets increased to HK$1.187 billion, primarily comprising development costs for SkQ1, anti-VEGF products, and Shilishun® | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total cost | 1,322,002 | 1,246,837 | 6.0% | | Total accumulated amortization and impairment losses | 135,336 | 119,183 | 13.6% | | Total carrying amount | 1,186,666 | 1,127,654 | 5.2% | - Acquired intangible assets primarily include development costs for SkQ1 eye drops of approximately HK$348.4 million, anti-VEGF products of approximately HK$426.7 million, and Shilishun® intellectual property of approximately HK$97.3 million[34] - Additions during the period amounted to HK$44.85 million, with exchange adjustments contributing a positive impact of HK$30.32 million[34] Convertible Loans Receivable Convertible loans receivable totaled HK$45.92 million, with fair value changes recognized in profit or loss; Convertible Loan B was offset post-period | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Convertible Loan A | 15,196 | 14,545 | 4.5% | | Convertible Loan B | 30,725 | 30,725 | 0.0% | | Total | 45,921 | 45,270 | 1.4% | - On August 15, 2025, the Group acquired 100% equity of Antikor, and Convertible Loan B was offset[36] - Fair value changes of HK$0.651 million were recognized in profit or loss[39] Financial Assets at Fair Value Through Other Comprehensive Income and Financial Assets at Fair Value Through Profit or Loss Non-current equity investments at FVTOCI were HK$26.5 million, while FVTPL non-current and current equity investments were HK$3.1 million and HK$2.39 million, respectively | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current - FVTOCI equity investments | 26,501 | 44,224 | -40.1% | | Non-current - FVTPL equity investments | 3,098 | 2,590 | 19.6% | | Current - FVTPL equity investments | 2,390 | 3,572 | -33.1% | - FVTOCI equity investments are designated due to their strategic nature, while FVTPL equity investments are designated as held for trading[42] - Fair value of listed equity investments is based on market quotations, and unlisted equity investments are valued using a value allocation model[41][42] Inventories Total inventories increased by 10.2% to HK$64.94 million, consisting of raw materials, work-in-progress, and finished goods | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Raw materials | 16,593 | 14,265 | 16.3% | | Work-in-progress | 12,625 | 10,631 | 18.8% | | Finished goods | 35,721 | 34,042 | 4.9% | | Total | 64,939 | 58,938 | 10.2% | Trade and Other Receivables Trade and other receivables increased by 12.8% to HK$661.2 million, with a notable rise in trade receivables, and an average credit period of 90 days | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables (net of impairment) | 614,458 | 521,059 | 17.9% | | Other receivables | 46,721 | 65,236 | -28.4% | | Total | 661,179 | 586,295 | 12.8% | - The Group grants an average credit period of 90 days to its trade customers[44] | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 60 days | 383,687 | 349,680 | 9.7% | | 61 to 90 days | 93,509 | 54,167 | 72.6% | | Over 90 days | 137,262 | 117,212 | 17.1% | Deposits and Prepayments Deposits and prepayments totaled HK$73.86 million, slightly down from year-end 2024, with deposits for property, plant and equipment as a non-current portion | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Deposits paid for property, plant and equipment | 31,786 | 28,712 | 10.7% | | Prepayments for purchase of finished goods | 15,465 | 25,718 | -39.9% | | Other deposits | 2,856 | 1,935 | 47.6% | | Other prepayments | 23,755 | 18,951 | 25.3% | | Total | 73,862 | 75,316 | -1.9% | Trade and Other Payables Trade and other payables decreased slightly to HK$519.5 million, mainly due to a reduction in other payables and accrued expenses | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 14,136 | 7,359 | 92.1% | | Other payables and accrued expenses | 505,354 | 538,038 | -6.1% | | Total | 519,490 | 545,397 | -4.8% | - Accrued sales and marketing costs were approximately HK$448.8 million, an increase from HK$402.4 million at December 31, 2024[47] | Ageing | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 60 days | 10,070 | 7,123 | 41.4% | | 61 to 90 days | 2,262 | 46 | 4817.4% | | Over 90 days | 1,804 | 190 | 849.5% | Bank Borrowings Total bank borrowings significantly increased to HK$270.5 million, secured by corporate guarantees from the Company and a subsidiary | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Current bank borrowings | 120,164 | 69,798 | 72.2% | | Non-current bank borrowings | 150,322 | 95,550 | 57.3% | | Total | 270,486 | 165,348 | 63.6% | - Bank borrowings are secured by corporate guarantees from the Company and one of its subsidiaries[49][50] - The Group obtained non-revolving bank facilities of approximately HK$737.3 million, of which approximately HK$339.1 million was utilized[50] Share Capital Authorized share capital remained HK$100 million, while issued and fully paid share capital was HK$56.7 million after repurchasing 123,000 shares | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of authorized ordinary shares | 1,000,000,000 | 1,000,000,000 | 0 | | Authorized share capital (HKD thousands) | 100,000 | 100,000 | 0 | | Number of issued and fully paid ordinary shares | 567,006,000 | 567,129,000 | -123,000 | | Issued and fully paid share capital (HKD thousands) | 56,701 | 56,713 | -12 | - During the period, 123,000 shares were repurchased and cancelled for a total consideration of approximately HK$0.325 million, paid from retained profits[52] Fair Value Measurement of Financial Instruments Financial instruments are measured using a three-level fair value hierarchy, with convertible loans receivable and equity investments measured at fair value - Fair value measurement of financial instruments is categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[55] - Convertible loans receivable and equity investments are measured at fair value, while the carrying amounts of other financial instruments like cash, receivables, payables, bank borrowings, and lease liabilities approximate their fair values[53][56] | Financial Asset | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Listed equity investments (Level 1) | 14,294 | 33,199 | | Unlisted equity investments (Level 2) | 17,695 | 17,187 | | Convertible loans receivable (Level 3) | 45,921 | 45,270 | | Total | 77,910 | 95,656 | Capital Commitments Capital commitments decreased to HK$243.5 million, primarily related to new factory construction and acquired intangible assets | Project | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment | 409 | 591 | -30.8% | | Development costs | 9,612 | 9,339 | 2.9% | | Acquired intangible assets | 62,812 | 117,919 | -46.7% | | Construction of new factory | 159,889 | 170,607 | -6.3% | | Expansion of existing factory | 10,805 | 18,723 | -42.3% | | Total | 243,527 | 317,179 | -23.2% | Related Party Transactions Total remuneration for key management personnel (directors) was HK$3.66 million for the six months ended June 30, 2025 | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Salaries and other benefits | 3,615 | 3,644 | -0.8% | | Pension scheme contributions | 44 | 26 | 69.2% | | Total | 3,659 | 3,670 | -0.3% | Events After the Reporting Period Post-period, the Group acquired 100% equity of Antikor to expand its novel antibody-drug conjugate business in oncology - On August 15, 2025, the Group acquired 100% equity of Antikor, aiming to expand its novel antibody-drug conjugate business in the oncology therapeutic area[62] Comparative Figures Certain comparative figures in Notes 4, 6, and 8 have been reclassified to conform with the current period's presentation - Comparative figures in Notes 4, 6, and 8 have been reclassified to align with the current period's presentation[63] Approval of Condensed Consolidated Interim Financial Statements The Board of Directors approved and authorized the publication of the condensed consolidated interim financial statements on August 26, 2025 - The Board of Directors approved and authorized the publication of the condensed consolidated interim financial statements on August 26, 2025[64] Management Discussion and Analysis Provides an overview of the Group's business performance, strategic developments, and financial review for the reporting period Business Review and Outlook The Group focuses on rb-bFGF gene engineering drugs, with core contributions from ophthalmology and surgery, expanding into oncology, orthopedics, and neurology - The Group's core business is centered on the research, development, production, and sale of the gene engineering drug rb-bFGF[65] - Primary revenue sources are the Ophthalmology and Surgery segments, with strategic investments in emerging therapies such as oncology, orthopedics, and neurology[65] - The Group possesses six commercialized bFGF series biopharmaceuticals sold in China, three of which are National Class I biopharmaceuticals, and four are listed in the National Medical Insurance Catalogue, collectively accounting for approximately 83.5% of total revenue[66] - In July 2025, multi-dose Diquafosol Sodium Ophthalmic Solution received NMPA approval for registration and commercialization in China[66] Significant Business Development Activities The Group continues to invest in new products and technologies, strengthening its R&D pipeline, especially in ophthalmology and oncology, for long-term growth - Committed to investing in new products and technologies to strengthen the product and R&D pipeline, aiming for near-to-mid-term growth in ophthalmology and long-term development in oncology[70] SkQ1 Products Late-stage clinical development of SkQ1 for dry eye disease showed positive results, with the Group securing global exclusive rights and investing HK$348.4 million - Phase III clinical trial (VISTA-2) for SkQ1 product (for dry eye disease) yielded positive results, demonstrating central corneal clearing[70] - The Group has obtained global exclusive patent assignment deeds and license agreements related to SkQ1[70] - The total actual investment cost for SkQ1 products and global rights is approximately HK$348.4 million, representing 10.8% of the Group's total assets[71] - SkQ1 products and global rights (excluding China) are being divested and injected into DunaVision Pte. Ltd., a wholly-owned Singapore subsidiary[71] Anti-VEGF Licensed Product The anti-VEGF product HLX04-O, co-developed with Henlius, completed phase III clinical trials globally, with its BLA accepted by China NMPA - The anti-VEGF licensed product HLX04-O, co-developed with Henlius for wet AMD, has commenced Phase III clinical trials in Australia, the US, Singapore, Russia, EU countries, and others[72] - First patient dosing and last patient visit have been completed for HLX04-O's Phase III clinical studies in China, Latvia, Australia, and the US[72] - China NMPA accepted the Biologics License Application (BLA) for HLX04-O in August 2025[72] - The maximum committed investment for the anti-VEGF licensed product is USD67 million (approximately HK$525.9 million), with actual investment costs of approximately HK$426.7 million, representing 13.2% of the Group's total assets[74] Other Collaborations The Group collaborates with Beijing Airdoc Technology on AI-powered retinal imaging and with Zhejiang Visionary Pharma for exclusive distribution of ophthalmic products - Collaborates with Beijing Airdoc Technology on AI-powered retinal imaging business[75] - Signed an exclusive distribution agreement with Zhejiang Visionary Pharma to introduce Emedastine Difumarate and Oxybuprocaine Hydrochloride eye drops, enriching the ophthalmic product portfolio[75] Awards and Accolades in 2025 Zhuhai Esun Bio-Pharmaceutical Co., Ltd. was recognized among Zhuhai's Top 100 Innovative Enterprises in 2024 for innovation and economic contribution - Zhuhai Esun Bio-Pharmaceutical Co., Ltd. was listed among Zhuhai's Top 100 Innovative Enterprises in 2024 for both innovation comprehensive strength and economic contribution[76] Market Development The Group operates 46 sales offices in China, covering over 14,100 hospitals and 2,100 pharmacies, and established a strategic base in Singapore for Southeast Asian expansion - The Group has 46 regional sales offices in China, covering over 14,100 hospitals and medical institutions and approximately 2,100 pharmacies[77][78] - A strategic base was established in Singapore since 2020 to accelerate entry into the Southeast Asian market[77] - Competitiveness is enhanced by expanding clinical indications, increasing patient accessibility in lower-tier cities, developing auxiliary sales channels, and fostering medical technology e-platforms[77][80] Research and Development The R&D department focuses on ophthalmology, with 18 programs in preclinical to clinical stages, including four key ophthalmic programs for mid-term growth - The R&D department focuses on ophthalmology, with key innovations including growth factors, antibodies, drug formulation technologies, and the blow-fill-seal platform[79] - The blow-fill-seal platform is used for developing and producing preservative-free single-dose drugs, with 6 commercialized products and several more under development[80] - A total of 18 R&D programs are in preclinical to clinical stages, with 4 ophthalmic programs (SkQ1 eye drops, Azithromycin eye drops, Bevacizumab intravitreal injection for wet AMD, Cyclosporine eye drops) identified as mid-term growth drivers[80][81] - The Group holds 111 patent certificates or authorizations, including 81 invention patents[82] - Multiple R&D bases are established in Zhuhai (China), Boston (USA), London (UK), and Singapore[82] Production Capacity The Group's Zhuhai plant produces rb-bFGF active pharmaceutical ingredients and preservative-free single-dose drugs - The Zhuhai plant is equipped with production lines for rb-bFGF active pharmaceutical ingredients and advanced blow-fill-seal technology for preservative-free single-dose drugs[83] Construction of Second Plant in China The second plant in Zhuhai High-tech Zone is nearing completion, serving as an R&D center and manufacturing facility, with completion expected in 2026 or 2027 - The second plant, covering approximately 15 thousand square meters with a construction area of about 58 thousand square meters, will serve as an R&D center, additional manufacturing facility, administrative offices, and staff dormitories[84] - Construction was suspended from November 2021 to May 2025 due to a legal dispute with the general contractor[84] - The court ruled that the general contractor must pay approximately HK$24.6 million in compensation to the Group and hand over the construction site, with completion anticipated in 2026 or 2027[85] Litigation with Guangxi Wanshoutang Pharmaceutical Co., Ltd. ("Guangxi Wanshoutang") The Group is involved in two lawsuits with Guangxi Wanshoutang, with one ruling requiring the Group to pay HK$14.3 million and another requiring Guangxi Wanshoutang to repay HK$48.9 million - Guangxi Wanshoutang accused the Group of breaching an agency agreement, with the court ruling the Group must pay approximately HK$14.3 million in compensation, which the Group has appealed[86] - The Group counter-sued Guangxi Wanshoutang, and the court ruled that Guangxi Wanshoutang must repay approximately HK$48.9 million[86] Financial Review Despite challenges from centralized procurement, the Group achieved revenue and profit growth, with increased R&D investment - The Chinese pharmaceutical industry faces challenges from centralized procurement policies, leading to drug price reductions and profit margin pressure[88] - The Group addresses market challenges by expanding the clinical indications and patient accessibility of its flagship biopharmaceuticals[89] | Indicator | Six Months Ended June 30, 2025 (HK$ million) | Six Months Ended June 30, 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 876.5 | 828.5 | 5.8% | | Profit for the period | 163.4 | 157.4 | 3.8% | - Ophthalmology and Surgery segments contributed 47.6% and 51.2% of total revenue, respectively, with the bFGF series collectively accounting for approximately 83.5% of total revenue[91] - Total R&D expenditure (including acquired intangible assets) was approximately HK$66.5 million, representing 7.6% of revenue, with approximately HK$44.8 million capitalized[93] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the Group has no immediate plans for material investments or acquisitions of significant capital assets beyond those disclosed - As of June 30, 2025, the Group has no immediate plans for material investments or acquisitions of significant capital assets[96] Liquidity and Financial Resources The Group held HK$640.5 million in cash, with HK$339.1 million utilized from HK$737.3 million in bank facilities, maintaining a healthy liquidity position | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 640,500 | 557,200 | 14.9% | | Bank facilities | 737,300 | 631,200 | 16.8% | | Utilized bank facilities | 339,100 | 206,300 | 64.4% | | Gearing ratio | 29.7% | 28.8% | 0.9 percentage points | - The Group maintains a healthy liquidity position and working capital level, sufficient to meet capital commitments and daily operations[97] Pledge of Group Assets As of June 30, 2025, no Group assets were pledged as security for bank financing - As of June 30, 2025, no Group assets were pledged as security for bank financing[98] Capital Commitments Capital commitments decreased to HK$243.5 million from HK$317.2 million at the end of 2024 | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Capital commitments | 243,500 | 317,200 | -23.2% | Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[100] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures For the period ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the period ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[101] Material Investments Held As of June 30, 2025, the Group held no material investments other than those disclosed in this report - As of June 30, 2025, the Group held no material investments other than those disclosed in this report[102] Foreign Exchange Risk The Group mitigates currency risk by borrowing and holding cash in local currencies, with no hedging arrangements currently in place - The Group mitigates currency risk by borrowing and holding cash in local currencies[103] - Major assets, liabilities, and transactions are denominated in HKD, RMB, or USD, with no hedging arrangements currently in place[103] Treasury Policy The Group funds operations through internal cash flow and borrowings, depositing resources in interest-bearing accounts primarily in RMB, HKD, and USD - The Group primarily funds its operations through internal cash flow, bank, and other borrowings[104] - Bank deposits are mainly denominated in RMB, HKD, and USD, and earn interest[104] Employees The Group had 1,426 full-time employees, with total employee remuneration of HK$162.1 million, based on performance, experience, and industry practice | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of full-time employees | 1,426 | 1,450 | -24 | | Indicator | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total employee remuneration (including directors' remuneration) | 162,100 | 159,400 | 1.7% | - Employee remuneration is based on performance, experience, and industry practice, with discretionary share options and bonuses also provided[105] Other Information This section provides additional disclosures regarding share capital, directors' and major shareholders' interests, share repurchases, and corporate governance Share Capital and Share Options The Company's authorized share capital remained unchanged, but shares were repurchased, and a share option scheme is in place to incentivize participants - The Company's authorized share capital remained unchanged during the reporting period, but share repurchases were conducted[106] - The share option scheme aims to recognize contributions, attract and retain talent, incentivize performance, and strengthen business relationships[108] Summary of the Scheme The share option scheme covers directors, employees, and consultants, with a 10% authorization limit and exercise price based on market rates or par value - Eligible participants include directors and employees of the Company and its subsidiaries, as well as consultants providing long-term development benefits[107][108] - The scheme's authorized limit is 10% of the issued shares on the approval date (57,064,900 shares), with a 1% cap for each Class C participant[110] - The exercise period for share options is ten years from the effective date, with a minimum vesting period of not less than 12 months[109][111] - The exercise price shall not be less than the highest of the closing price on the grant date, the average closing price for the preceding five days, and the nominal value of the shares[113] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures As of June 30, 2025, Yan Ming Chih held 27.15% of the Company's shares, with other directors holding minor stakes | Name | Capacity | Number of Ordinary/Underlying Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Yan Ming Chih | Beneficial owner and interest in controlled corporation | 153,945,667 | 27.15% | | Fang Hai Zhou | Beneficial owner | 5,244,300 | 0.92% | | Yan Xian Long | Beneficial owner | 2,039,000 | 0.36% | | Qiu Li Wen | Beneficial owner | 46,000 | 0.01% | - Yan Ming Chih's interests include shares held in his personal name and through Dynatech Ventures Pte Ltd[115] Substantial Shareholders and Other Persons Whose Interests are Discloseable Under Part XV of the Securities and Futures Ordinance As of June 30, 2025, major shareholders, excluding directors, included Yan Ming Jie and Liu Hui Juan, holding 26.81% and 27.15% respectively | Name | Capacity | Number of Ordinary/Underlying Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Yan Ming Jie | Beneficial owner and interest in controlled corporation | 152,020,667 | 26.81% | | Liu Hui Juan | Family interest | 153,945,667 | 27.15% | - Yan Ming Jie's interests include shares held in his personal name and through Dynatech Ventures Pte Ltd[117] - Liu Hui Juan, spouse of Executive Director Yan Ming Chih, is deemed to have an interest in shares held by Yan Ming Chih[117] Purchase, Redemption or Sale of the Company's Listed Securities The Company repurchased and cancelled 123,000 shares for HK$325,270 to enhance net asset value and earnings per share | Month | Number of Shares Repurchased | Highest Price (HK$) | Lowest Price (HK$) | Total Paid (HK$) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 53,000 | 2.80 | 2.68 | 145,970 | | February 2025 | 70,000 | 2.58 | 2.55 | 179,300 | | Total | 123,000 | | | 325,270 | - Share repurchases aim to enhance net asset value per share and earnings per share, funded from retained profits[118] Corporate Governance The Company fully complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the reporting period - The Company fully complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period[120] Audit Committee The Audit Committee reviewed accounting principles, internal controls, financial reporting, and the unaudited interim financial statements - The Audit Committee reviewed accounting principles, internal controls, financial reporting matters, and the unaudited condensed consolidated interim financial statements[121] Interim Dividend The Board declared an interim dividend of HK$0.07 per ordinary share, payable in cash on September 23, 2025 - The Board declared an interim dividend of HK$0.07 per ordinary share, payable in cash on September 23, 2025[122] - Dividends will be paid to shareholders whose names appear on the Company's register of members at the close of business on September 12, 2025[122] Closure of Register of Members The register of members will be closed from September 10 to September 12, 2025, to determine eligibility for the interim dividend - The register of members will be closed from September 10 to September 12, 2025, to determine eligible shareholders for the interim dividend[123] Directors' Securities Transactions All directors confirmed full compliance with the Model Code for securities transactions during the six months ended June 30, 2025 - All directors confirmed full compliance with the Model Code for securities transactions during the six months ended June 30, 2025[124] Company Information This section lists the Company's board members, committee compositions, company secretary, auditors, website, registered office, and principal bankers Company Information This section lists the Company's board members, committee compositions, company secretary, auditors, website, registered office, and principal bankers - The Board of Directors includes Executive Directors (Yan Ming Chih, Fang Hai Zhou, Yan Xian Long, Qiu Li Wen) and Independent Non-executive Directors (Feng Zhi Ying, Qiu Mei Mei, Zhen Wen Xing)[126] - Compositions of the Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee are listed[126] - The Company Secretary is Qiu Li Wen, and the Auditor is BDO Limited[126] - The Registered Office is in the Cayman Islands, the Hong Kong Head Office is in Shun Tak Centre, and the Zhuhai Headquarters is in the High-tech Zone[126] - The stock code is 01061[127]