Touyun Biotech Group Limited released its audited results for the year ended 31 December 2025, reporting a sharp swing back to profitability yet facing material liquidity pressure and an auditor’s disclaimer of opinion.
Key financials • Revenue from continuing operations declined 32.7 % to HK$66.97 million, mainly on weaker packaging and Chlamydomonas reinhardtii product sales. • Net profit reached HK$61.30 million (2024: loss of HK$88.04 million), helped by a HK$128.90 million net gain under “other income, gains and losses”, chiefly fair-value gains on unlisted and listed investments. • Basic earnings per share were HK0.95 cents versus a loss per share of HK3.14 cents in 2024. • No dividend was declared.
Segment performance • Packaging products: revenue fell 17.8 % to HK$62.28 million, recording a HK$9.20 million loss. • Treasury investment: segment profit rebounded to HK$122.72 million (2024: HK$13.87 million loss) on HK$129.22 million fair-value gains from investments. • Chlamydomonas reinhardtii products: revenue slid to HK$9.67 million; segment loss widened to HK$27.17 million, reflecting idle-capacity costs and inventory provisions. • QR code business was disposed during the year, generating a HK$22.88 million gain; the operation is now classified as discontinued.
Balance-sheet highlights • Cash and cash equivalents stood at HK$5.06 million against current borrowings of HK$409.74 million. • Net current liabilities totalled HK$493.10 million; net assets were HK$27.39 million. • Gearing (net borrowings/total capital) eased to 94 % from 113 %.
Going-concern risk and auditor’s view • Moore CPA Limited issued a disclaimer of opinion, citing significant doubt over the Group’s ability to continue as a going concern due to net current liabilities, overdue borrowings of HK$176.14 million and cross-default clauses covering HK$53.68 million of debt. • Management’s mitigation plans include refinancing negotiations, further shareholder support, asset disposals and cost controls; none are finalised.
Use-of-proceeds revision • HK$3.40 million originally reserved for transportation and office supplies under the 2016 share placing will instead be applied to repay loans and payables.
Post-balance-sheet event • In January and February 2026 the Company drew down HK$26.00 million of new borrowings which are immediately repayable due to existing cross-default triggers; lenders have not yet demanded payment.
Outlook Management will focus on strengthening liquidity, expanding mainland China sales of Chlamydomonas reinhardtii products following a three-year, RMB1 billion purchase framework signed in October 2025, and monitoring its investment portfolio performance amid market volatility.