Wai Chun Bio-Technology (660) H2 2025 earnings summary

Executive summary

• Revenue increased by 1.9% year-over-year to HK$377.2 million, with gross profit up to HK$36.0 million and gross margin at 9.5%.

• Net loss narrowed significantly to HK$10.7 million from HK$65.7 million in the prior year, mainly due to a sharp reduction in impairment losses on non-current assets.

• The business remained focused on manufacturing and sale of modified starch and biochemical products, with operations primarily in the PRC.

Financial highlights

• Gross profit margin improved slightly to 9.5% from 9.2% year-over-year.

• Selling expenses rose 13.3% to HK$14.1 million, while administrative expenses were stable at HK$20.8 million.

• Impairment loss on non-current assets dropped to HK$1.7 million from HK$58.1 million, and reversal of impairment losses on receivables was HK$4.3 million.

• Net current liabilities increased to HK$170.5 million, and net liabilities to HK$62.7 million.

• Cash and cash equivalents rose to HK$6.6 million from HK$2.2 million.

Outlook and guidance

• Strategic focus remains on pursuing acquisitions and investments in the PRC to strengthen revenue and profit fundamentals.

• Management is implementing measures to improve working capital, secure funding, and control costs to support ongoing operations.