Horien Biochemical Technology, a subsidiary of Taiwan-based Ginko International, is set to debut on the Emerging Stock Market on January 9, with the underwriting price set at NT$33 per share. General Manager Charlie Ho revealed during an investor conference on January 7 that the company experienced a loss of NT$0.35 per share in the first half of the year due to the demolition and reconstruction of an existing plant in January. The upgraded facility, which triples production capacity, was completed and began operations in October. During the reconstruction, sales relied on inventory, and the company also recorded a goodwill impairment of over NT$10 million from a subsidiary. However, these losses were offset, and as of November, the company had turned a profit with earnings per share (EPS) of NT$0.05. With full production now underway, December revenue is expected to be strong.
Established in December 2006 with an authorized capital of NT$400 million, Horien Biochemical Technology is primarily backed by Ginko International’s investment arms. Major shareholders include Chi Sheng, holding 44.34%, and Horien International, with 17.50%. Including the 5.41% stake held by the group’s affiliate, Formosa Optical Technology, Ginko International collectively owns nearly 70% of the company. Institutional investors, such as Taishan Buffalo No. 3 Biotech Venture Capital (10.65%) and Compal (4.56%), bring the total shareholding to an impressive 82%.
Charlie Ho emphasized that Horien Biochemical Technology adopts a unique R&D approach compared to other companies. It begins by identifying needs from the physician’s perspective, followed by concept-led development. The process involves material optimization and product development by experts in medical engineering, pharmacology, veterinary science, and market analysis. The team evaluates patent applications, market feasibility, and economic potential to ensure products have strong growth prospects.
The company specializes in developing medical devices for dentistry, general surgery, plastic surgery, and surgical consumables. Its flagship products include dental wound protectors, collagen regenerative membranes, collagen bone fillers, collagen dental matrices, and collagen-based matrices.
Faced with insufficient production capacity in 2023, Horien undertook a significant upgrade project, demolishing the old facility in January 2024 and completing the new plant by October. The revamped plant has tripled production capacity. During the construction period, production was halted, and revenue came from pre-stocked inventory. As a result, the core business suffered a loss in the first half of the year. On the non-operating side, a strategic decision was made to forgo the renewal of MDR certification for a glaucoma surgery product in the niche European market, following the expiration of its CE certification. This decision led to a goodwill impairment of over NT$10 million.
In the first half of 2024, Horien reported revenue of NT$35.89 million, gross profit of NT$23.99 million, an operating loss of NT$470,000, non-operating losses of NT$12.42 million, and a net loss after tax of NT$12.89 million, equating to a loss of NT$0.35 per share. However, the company rebounded strongly in the second half of the year. By November, cumulative revenue reached NT$81.58 million, with gross profit at NT$60.35 million, operating profit of NT$12.96 million, net profit after tax of NT$1.68 million, and EPS of NT$0.05.
Resource: 金可集團旗下海昌生技明今興櫃，新廠投產助攻12月營收
