Singapore Institute of Advanced Medicine Holdings Ltd.: FY2025 Financial Analysis and Auditor Disclaimer

Singapore Institute of Advanced Medicine Holdings Ltd. (SIAMH), a Catalist-listed healthcare group specializing in advanced radiation therapy, recently released its audited financial statements for the year ended 30 June 2025 (FY2025). The report is notable for its disclaimer of opinion from the external auditor, highlighting significant uncertainties and audit limitations. This article analyzes the key financial highlights, auditor concerns, and implications for investors.

Key Financial Metrics and Business Overview

• FY2025 Loss After Tax (Group): S\$27,046,778
• Net Cash Used in Operating Activities (Group): S\$10,650,389
• Current Liabilities Exceed Current Assets (Group): S\$12,034,424
• Current Liabilities Exceed Current Assets (Company): S\$3,974,314
• Key Subsidiary (PTPL) Loss After Tax: S\$19,630,487
• PTPL Net Cash Used in Operations: S\$10,203,087
• PTPL Current Liabilities over Current Assets: S\$5,539,338
• Investment in PTPL (as % of Company Total Assets): 95% (S\$153,175,528)

Comparative Financial Table

Note: The financial report does not provide revenue, EPS, or dividend figures for FY2025 or FY2024. Thus, YoY and QoQ comparisons for those metrics are not possible based on current disclosures.

Auditor’s Disclaimer and Key Issues

The external auditor, Foo Kon Tan LLP, issued a disclaimer of opinion on the FY2025 financials. The main reasons are:

• Inability to Verify Opening Balances: The previous (FY2024) audit also resulted in a disclaimer, creating uncertainty in the opening balances for property, plant, and equipment, and receivables from subsidiaries.
• Going Concern Doubts: The Group and Company’s recurring losses, negative operating cash flows, and net current liabilities signal material uncertainties about their ability to continue as going concerns.
• Impairment Issues: Although management concluded no impairment is necessary for property, plant, equipment, or investment in PTPL, auditors could not verify the reasonableness of management’s key assumptions—especially revenue forecasts for radiation therapy services.
• Reliance on Key Subsidiary: The Company’s solvency is heavily dependent on PTPL, which itself is loss-making and cash-absorbing.

Management and Board Responses

• Financial Support: The Group has drawn down S\$3 million in loans from a subsidiary of the controlling shareholder after year-end, with up to S\$6 million more available (subject to approvals).
• Loan-to-Equity Conversions: The Company plans to convert S\$5 million from a non-related party and S\$2 million from a subsidiary of the controlling shareholder into equity, pending regulatory approvals.
• No Cash Flow Impact from Impairment: The Board asserts that any impairment of PPE or subsidiary investments would not impact Group cash flows directly.

Other Notable Items

• IPO: The Company was listed on Catalist in February 2024.
• No Disclosed Divestments, Buybacks, or Asset Sales: The report does not mention any such corporate actions for the year.
• No Details on Directors’ Remuneration: The report does not disclose directors’ pay or compensation packages.
• No Mention of Legal Disputes, Natural Disasters, or Tax/Policy Changes: The current financial report does not highlight any such events.

Chairman’s Statement

No explicit Chairman’s statement was included in the provided report.

Conclusion and Outlook

Overall Assessment: The financial position of Singapore Institute of Advanced Medicine Holdings Ltd. appears weak based on the FY2025 report. The Group is incurring substantial losses, has negative operating cash flow, and faces significant going concern uncertainties. The auditor’s inability to express an opinion due to lack of sufficient evidence on critical balances and assumptions is a major red flag. The Company is highly reliant on continued shareholder and third-party financial support, with no clear evidence of near-term turnaround in business performance.

Investor Recommendations

• If you currently hold the stock: Exercise caution. Investors should closely monitor further announcements, especially regarding additional funding, regulatory approvals for equity conversions, and any operational turnaround. The high risk profile suggests that only those with a high risk tolerance should consider maintaining their position.
• If you do not currently hold the stock: It is prudent to remain on the sidelines until there is clear evidence of operational improvement, auditor comfort, and a sustainable path to profitability and positive cash flow. The disclaimer of opinion and continued losses indicate substantial risk.

Disclaimer: This analysis is based solely on the information provided in the FY2025 audited financial report. It is not investment advice. Investors should consult their professional advisors and consider their own investment objectives and risk tolerance before making any investment decisions.

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