Singapore Institute of Advanced Medicine Holdings Ltd.: FY2025 Financial Analysis
The Singapore Institute of Advanced Medicine Holdings Ltd. (SIAM) released its audited financial statements for the financial year ended 30 June 2025, along with key updates regarding material variances from its previously announced unaudited results. This article explores the company’s key financial metrics, highlights notable accounting adjustments, and reviews the financial effects of proposed corporate transactions.
Key Financial Metrics
The tables below summarize SIAM’s core financial performance. Please note, the report does not provide revenue figures, but focuses on profit/loss, equity reserves, and loss per share (LPS).
| Metric |
Audited FY2025 |
Unaudited FY2025 |
Variance |
% Change |
| Other Gains/(Losses) |
S\$117,512 |
S\$1,011,143 |
(S\$893,631) |
-88% |
| Loss Before Tax |
S\$27,054,182 |
S\$26,160,551 |
S\$893,631 |
+3% |
| Loss Per Share (LPS, cents) |
2.57 |
2.49 |
0.08 |
+3% |
| Other Reserves |
(S\$5,077,737) |
(S\$5,971,368) |
S\$893,631 |
+15% |
| Accumulated Losses |
(S\$130,746,068) |
(S\$129,852,437) |
S\$893,631 |
+1% |
| Total Equity |
S\$55,640,531 |
S\$55,640,531 |
0 |
0% |
| Net Cash from Financing |
S\$10,020,364 |
S\$10,198,363 |
(S\$177,999) |
-2% |
Material Variances and Accounting Adjustments
- Reclassification of Gains: Fair value gain (S\$444,562) and modification gain (S\$449,069) on shareholder loans were reclassified from the profit or loss statement to equity (other reserves). This adjustment did not impact total equity, but led to a reduction in reported profit and a corresponding increase in equity reserves.
- Cash Flow Classification: Restricted cash was reclassified from cash and cash equivalents to cash flow from financing activities. This did not affect overall cash balances but altered the cash flow statement’s presentation.
Corporate Actions: Debt Conversion and Placement
SIAM announced two major equity transactions:
- Conversion of a loan from Caterine Limited into 149,726,000 new ordinary shares.
- Placement of 19,748,000 new shares at S\$0.035 per share to certain subscribers.
The table below illustrates the impact of these transactions on loss per share (LPS):
| Scenario |
Net Loss (S\$’000) |
Shares Outstanding |
LPS (S\$ cents) |
| Before Caterine Debt Conversion |
27,054 |
1,062,020,642 |
2.55 |
| After Caterine Debt Conversion |
26,871 |
1,211,746,642 |
2.22 |
| After Proposed Placement |
26,918 |
1,231,494,642 |
2.19 |
The increase in share count from these transactions leads to a reduction in LPS, reflecting dilution rather than improved profitability.
Errors and Inconsistencies in Financials
- Significant variance of S\$893,631 between unaudited and audited results, driven by reclassification of shareholder loan gains.
- No impact on total equity, but reported earnings and reserves are affected, which may influence investor perception.
Exceptional Items
- Fair value and modification gains on loans (total S\$893,631) were reclassified. These are exceptional, non-recurring items.
Share Dilution and Corporate Fundraising
- Substantial increase in shares outstanding due to debt conversion and placement.
- This fundraising will help strengthen the balance sheet, but also dilutes existing shareholders.
Chairman’s Statement
“Shareholders and potential investors are advised to exercise caution before making any decision in respect of their dealings in the Company’s shares. Shareholders and potential investors who are in any doubt about this announcement should consult their stockbroker, bank manager, solicitor, or another professional adviser.”
The tone is cautious and neutral, emphasizing prudent decision-making and the importance of due diligence.
Conclusion and Investment Recommendations
Overall Performance and Outlook: Based strictly on the financial report, SIAM posted a substantial net loss for FY2025 and faces ongoing dilution from corporate actions. While the company succeeded in raising capital and improving its equity base, its continued losses and material accounting adjustments highlight ongoing challenges.
- If you currently hold SIAM shares: Consider reviewing your position carefully. The company’s capital raising actions may support its short-term funding needs, but persistent losses and dilution are concerns. Any decision should be based on your risk tolerance and investment horizon.
- If you do not currently hold SIAM shares: Exercise caution before initiating a position. The company is not currently profitable and is undergoing significant share dilution. Consider waiting for signs of improved profitability or operational turnaround before investing.
Disclaimer: This analysis is based solely on the data provided in the company’s FY2025 financial report. It does not constitute investment advice. Investors should seek professional advice and conduct further research before making buy, sell, or hold decisions.
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