Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 38,872,000, an increase of 19.0% compared to HKD 32,449,000 for the same period in 2024[4] - Gross profit for the same period was HKD 2,542,000, a significant recovery from a gross loss of HKD 3,107,000 in 2024[4] - Operating loss decreased to HKD 19,308,000 from HKD 124,588,000 year-on-year, indicating improved operational efficiency[4] - The net loss attributable to owners of the company was HKD 32,006,000, down from HKD 79,917,000 in the previous year, reflecting a 59.9% reduction[5] - The company reported a basic and diluted loss per share of HKD 0.033, an improvement from HKD 0.083 in the previous year[5] - Other comprehensive income for the period was HKD 6,251,000, compared to a loss of HKD 7,242,000 in 2024, showing a positive shift in financial performance[5] - The total comprehensive loss for the period was HKD (30,502) thousand, which includes a loss of HKD (36,753) thousand attributable to owners of the company[10] - The group recorded a loss of approximately HKD 36,753,000 for the six months ended June 30, 2025, compared to a loss of HKD 125,731,000 for the same period in 2024[18][24] Assets and Liabilities - Total assets as of June 30, 2025, amounted to HKD 538,426,000, a slight increase from HKD 529,955,000 at the end of 2024[8] - Non-current assets increased to HKD 502,598,000 from HKD 466,860,000, primarily driven by growth in property, plant, and equipment[7] - Current liabilities rose to HKD 195,691,000 from HKD 192,614,000, indicating a stable liquidity position despite increased operational activities[8] - The group has total borrowings and lease liabilities of approximately HKD 161,096,000 and HKD 9,418,000, respectively, with cash and bank balances of only HKD 11,290,000[18][19] - As of June 30, 2025, total equity attributable to owners of the company was HKD 211,886 thousand, down from HKD 242,388 thousand at the beginning of the period[10] - The company’s accumulated losses increased to HKD (566,473) thousand as of June 30, 2025, compared to HKD (534,467) thousand at the beginning of the period[10] Cash Flow - For the six months ended June 30, 2025, the net cash used in operating activities was HKD (4,936) thousand, a significant improvement from HKD (95,539) thousand in the same period of 2024[12] - The net cash used in investing activities for the same period was HKD (22,769) thousand, compared to HKD (61,468) thousand in 2024, indicating a reduction in investment outflows[12] - Financing activities generated a net cash inflow of HKD 23,128 thousand, down from HKD 118,558 thousand in the previous year, reflecting a decrease in financing activities[12] Operational Efficiency - The company continues to focus on research and development, with R&D expenses reduced to HKD 5,965,000 from HKD 17,593,000, reflecting a strategic shift towards cost management[4] - Sales and distribution expenses decreased by approximately 44.6%, from about HKD 6.5 million to HKD 3.6 million, primarily due to reduced employee costs during the reporting period[80] - Administrative expenses for the first half of 2025 were approximately HKD 34.0 million, a decrease of about 52.0% compared to HKD 70.9 million in the first half of 2024, primarily due to reduced employee costs and a one-time legal claim in the previous period[82] Segment Performance - Revenue from medical laboratory testing and health check services was HKD 16,164,000, down 18.5% from HKD 19,729,000 in the previous year[21][24] - Insurance brokerage services generated revenue of HKD 22,640,000, a significant increase of 84.5% compared to HKD 12,255,000 in the prior year[21][24] - The group reported a segment loss of HKD 18,320,000 for the six months ended June 30, 2025, compared to a segment loss of HKD 100,949,000 for the same period in 2024[24] Financing and Capital Structure - The group is actively seeking alternative financing options, including share placements and issuing convertible bonds, to strengthen equity and support growth[20] - The company issued convertible bonds totaling USD 6,000,000 (approximately HKD 47,100,000) on December 27, 2024, with a conversion price of HKD 1.20 per share[49] - As of June 30, 2025, the liability component of the convertible bonds was HKD 42,919,000, an increase from HKD 41,635,000 as of December 31, 2024[50] - Bank borrowings rose to HKD 33,981,000 as of June 30, 2025, compared to HKD 25,981,000 as of December 31, 2024, reflecting an increase of 30.5%[53] - Total borrowings increased to HKD 161,096,000 as of June 30, 2025, up from HKD 138,693,000 as of December 31, 2024, representing a growth of 16.1%[53] Strategic Initiatives - The company is collaborating with AXA Insurance to develop a comprehensive medical insurance product covering boron neutron capture therapy costs, aimed at increasing public awareness and accessibility[91] - Partnerships have been established with leading hospitals to facilitate patient referrals to the boron neutron capture therapy center, enhancing awareness and accessibility for cancer patients[92] - The company aims to commercialize LY007 and accelerate its development, including entering into domestic phase II clinical trials and commercial partnerships[101] Corporate Governance - The audit committee has reviewed the group's unaudited interim results for the period and confirmed compliance with applicable accounting standards and GEM listing rules[162] - The company has maintained high standards of corporate governance and compliance with legal and regulatory requirements[156] - The board consists of four executive directors and three independent non-executive directors as of August 27, 2025[169]
中国生物科技服务(08037) - 2025 - 中期财报