Singapore Institute of Advanced Medicine Holdings Ltd. – 1H FY2026 Financial Analysis

The Singapore Institute of Advanced Medicine Holdings Ltd. (“SIAM”) released its unaudited condensed interim consolidated financial statements for the six months ended 31 December 2025. The report provides crucial insights into the Group’s financial performance, capital structure, cash flows, and business developments. Below we summarize key findings and analyze their implications for investors.

Key Financial Metrics & Performance Table

^* Inferred from same period last year: report only provides semi-annual figures.

Historical Performance Trends

Revenue increased 3% year-on-year, driven mainly by growth in Radiation Therapy and Medical Oncology Services (S\$0.15 million increase) and Medical Diagnostics and Treatments (S\$0.07 million increase). The net loss after tax improved by 8%, mainly due to lower employee compensation and medical consultancy fees, as well as higher patient inflows for advanced therapies. However, the Group continues to report significant losses, reflecting the capital-intensive nature of the business and ongoing ramp-up costs.

Exceptional Earnings and Expenses

• Finance costs rose by 34%, mainly due to new loans and lease renewals.
• Other income fell 24%, primarily due to the absence of a one-off grant received in the previous year.
• Medical consultancy fees dropped 19%, reflecting lower aesthetic segment activity.

Errors, Disclaimer Opinions, and Asset Revaluation

The Group’s auditor issued a disclaimer opinion for FY2025 regarding opening balances, going concern, impairment of property, plant and equipment (PPE), and impairment of receivables from subsidiaries. Management is actively addressing these issues via new business partnerships, clinical trial collaborations, and efforts to boost patient volumes. No impairment assessment was performed for PPE or investments in subsidiaries for the current half-year. All material uncertainties have been disclosed, and the Board confirms adequate coverage of audit issues.

Fundraising, Share Dilution, and Corporate Actions

• Debt Conversion: A S\$5.24 million loan from a non-related party was converted into 149,726,000 new shares, resulting in share dilution and the lender becoming a substantial shareholder.
• Rights Issue: Proposed non-underwritten rights cum warrants issue could raise up to S\$14.9 million if fully subscribed and warrants exercised. Prepayments of S\$3.90 million have already been received.
• Share Capital: Total share capital increased from 1,062,020,642 to 1,231,494,642 ordinary shares due to new issuances and conversions.
• Placement: S\$644,400 placement proceeds were fully used for medical equipment maintenance.

Related Party Transactions & Unusual Fund Flows

Significant related party transactions include loans from substantial shareholder Espeetex Sdn. Bhd. (S\$401,114 drawn in 1H FY26, S\$23.38 million conditional debt conversion). Medical consultancy fees to related entities totaled S\$550,572. Sublease income from related parties was S\$172,392.

Business Developments and Forward-Looking Events

• New Service Level Agreements with leading public and private oncology groups are set to increase patient flows, especially for proton and photon therapy.
• Multiple collaborations and clinical trials with global pharmaceutical companies are underway, including trials approved by the US FDA and new agreements with European partners.
• The Group secured exclusive rights for a novel skin cancer therapy in Singapore and APAC, positioning itself as a regional center of excellence.
• Efforts to attract foreign patients (Vietnam, Indonesia, Australia, New Zealand) and expand health screening services are ongoing.

Dividend Announcement

No dividend was declared or recommended for the current and previous periods, due to ongoing losses.

Chairman’s Statement

“The Board is satisfied that the Group has adequate resources to meet its obligations and continue as a going concern for at least the next twelve months.”

The tone is cautiously optimistic, reflecting management’s belief in the Group’s ability to stabilize and grow, but acknowledging ongoing financial risks and uncertainties.

Conclusion & Investor Recommendations

Overall Financial Performance & Outlook:

• Neutral to Weak: The Group is showing incremental operational progress (higher revenues, improved loss) but continues to face substantial losses, net current liabilities, and auditor disclaimer opinions. The extensive fundraising and share dilution signal capital needs and risks, although new clinical partnerships and therapies may support longer-term growth.

Investor Recommendations:

• If you are currently holding SIAM shares:
  • Consider holding if you have a high risk tolerance and believe in the Group’s turnaround story, pending successful execution of fundraising, new partnerships, and clinical trial outcomes.
  • Monitor developments closely, especially regarding the rights issue, debt conversion, and operational ramp-up. The share dilution and net liability position remain significant risk factors.
  • Avoid further accumulation until the Group demonstrates sustained profitability and resolves audit issues.
• If you are not currently holding SIAM shares:
  • Wait for clearer signs of financial stability and operational turnaround. The current loss-making status and ongoing capital actions suggest caution.
  • Re-assess after completion of fundraising and delivery of new clinical partnerships, and once audit issues are resolved.

Disclaimer: This analysis is based solely on SIAM’s official interim financial report. It is not a solicitation to buy or sell shares. Investors should undertake additional due diligence and consult professional advisors before making investment decisions.

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