Wai Chun Bio-Technology Limited reported interim results for the six months ended 31 December 2025, highlighted by a sharp rebound in topline growth and a narrower net loss.
Revenue and Profitability • Revenue surged 118.7% year on year to HK$352.15 million, reflecting stronger market demand for modified starch and biochemical products. • Gross profit rose 68.8% to HK$35.66 million, although gross margin eased to 10.1% from 13.1% a year earlier, mainly due to product-mix and cost dynamics. • Operating costs trended higher: administrative expenses increased 22.8% to HK$14.90 million, and selling expenses grew 181.9% to HK$15.31 million, aligning with the enlarged business scale. • Finance costs fell 51.4% to HK$5.05 million following maturity and subsequent alteration of convertible bonds in November 2025. • Loss attributable to shareholders narrowed to HK$5.94 million from HK$13.66 million, supported by revenue growth and lower financing charges. Basic and diluted loss per share improved to HK$0.0333.
Cash Flow and Balance Sheet • Net cash generated from operations totalled HK$22.41 million; period-end cash and cash equivalents stood at HK$5.61 million. • Net current liabilities improved to HK$61.19 million (30 June 2025: HK$170.54 million). • Total debt declined to HK$141.90 million (30 June 2025: HK$178.00 million), while the net-debt-to-total-assets ratio fell to 60.2% from 79.9%. • Convertible bonds of HK$78.35 million were reclassified to non-current liabilities after term alteration, easing near-term liquidity pressure. • Certain right-of-use assets remain pledged as security for bank borrowings.
Operational Highlights • The modified starch and biochemical segment delivered HK$352.15 million revenue and HK$4.07 million segment profit (prior year: HK$4.52 million). • The Group employed 63 staff (30 June 2025: 61) with staff costs of HK$6.14 million. • No interim dividend was declared.
Strategic and Governance Updates • The Board continues to explore strategic acquisitions in mainland China to broaden revenue streams. • Liquidity support measures include loan facilities from the ultimate holding company and ongoing fund-raising discussions with potential investors. • Corporate governance adjustments during the period comprised new board appointments and the reinstatement of a company secretary on 5 March 2026.
Post-Period Event • On 13 February 2026, the High Court of Hong Kong issued a judgment requiring Wai Chun Bio-Technology and an affiliate to pay HK$2.67 million plus interest and HK$0.11 million in costs to Island Sky Limited. The company has filed an appeal.
Outlook Management plans to maintain cost control, monitor working capital, and pursue acquisition opportunities to reinforce growth and support its going-concern strategy.