Touyun Biotech Group Limited reported a sharp turnaround for the six months ended 30 June 2026, with profit from continuing operations surging to HK$310.80 million from HK$36.20 million a year earlier, driven primarily by sizeable fair-value gains on listed and unlisted investments.
Revenue from continuing operations slipped 3.3 % to HK$35.39 million, reflecting a 6.4 % contraction in the packaging segment to HK$30.62 million and a modest increase in Chlamydomonas reinhardtii products sales to HK$4.77 million. Group gross margin narrowed to 25.8 % (1H 2025: 37.0 %) after the adoption of a high-volume, low-margin pricing strategy and Renminbi appreciation-related cost pressures.
Segment results showed: • Packaging products: loss reduced to HK$3.90 million (1H 2025: loss HK$5.00 million) on tighter cost control. • Chlamydomonas reinhardtii products: loss narrowed to HK$11.63 million (1H 2025: loss HK$15.20 million) on lower idle-capacity costs. • Treasury investment: net fair-value gains totalled HK$348.67 million, comprising HK$194.16 million from listed securities and HK$154.51 million from unlisted holdings.
Attributable profit to shareholders reached HK$197.85 million, translating into basic earnings per share of HK7.05 cents (1H 2025: HK0.60 cents). The Board declared no interim dividend.
Balance-sheet metrics remain stretched. Cash and cash equivalents stood at HK$4.39 million against total borrowings of HK$474.37 million, leaving net current liabilities of HK$542.17 million. The gearing ratio improved to 63 % (FY 2025: 94 %) after earnings expansion, yet borrowings of HK$173.75 million plus accrued interest of HK$20.73 million were past due at period-end. Subsequent to 30 June, a further HK$26.00 million principal became overdue, triggering cross-default on an additional HK$46.10 million.
Assets with an aggregate carrying value of HK$133.27 million (buildings, leasehold land and machinery) are pledged to secure HK$53.05 million of bank loans, while equity interests and assets of certain subsidiaries back HK$52.97 million of other borrowings.
Capital movements were minimal during the half-year. Post-balance-sheet events include: • Acquisition of a 100 % stake in a Hong Kong investment holding company (59.8 % indirect interest in a PRC new-materials producer) for HK$8.00 million, completed 12 July 2026. • Proposed issue of 123.00 million new shares at HK$0.122 each to raise approximately HK$14.99 million for general working capital; subscription remains pending.
Total headcount was 302, with staff costs (including share-based payments) of HK$20.23 million. No contingent liabilities, capital commitments or finance-lease obligations were reported.
Management continues to monitor liquidity closely while pursuing cost optimisation, investment gains and product-line expansion to support longer-term growth.