Mirxes reports $95.4m net loss ahead of IPO

Costs of R&D and administrative activities widened last year’s losses.

Mirxes Holding Company Limited suffered a $95.4m (US$70.36m) net loss in 2023 as it hopes to make an initial public offering in Hong Kong.

The company said the net loss widened due to “ (a) an increase in the research and development expenses, as a result of the increase in our research and development activities, and (b) an increase in the general and administrative expenses, as a result of the increases in office expenses and professional and consultation fees.”

Mirxes said its revenue last year increased 36% to $32.79m (US$24.19m). Gross profit was also up 45% to $18.42m (US$13.58m) in the previous fiscal year.

“We had net current assets of US$21.8 million ($29.57m) as of December 31, 2023, compared to net current assets of US$29.7 million ($40.25m) as of December 31, 2022,” the company said.

Mirxes said this was due to a decrease in cash and cash equivalents which was down 26% to $19.96m (US$14.7m) as of end-2023.

The company also reported a 22.6% increase in trade and other payables to $24.70m (US$18.2m) as of end-2023 due to stronger bargaining power to obtain more favourable credit periods from suppliers, and a decrease in contract liabilities as a result of the increase in the realised revenue after the delivery of underlying products and services last year.

“During the Track Record Period, we relied on capital contributions by our shareholders as the major sources of liquidity. We also generate cash from sales of Fortitude, GASTROClear, LungClear and provision of health screening and other services,” Mirxes said.

“As our business develops and expands, we expect to generate more net cash from our operating activities, through increasing sales of our commercialised products and services and launching new products, as a result of the broader market acceptance of our existing products and our continued efforts in marketing and expansion, and improving cost control and operating efficiency,” it added.

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Mirxes eyes to raise around $135.59m (US$100m) through an IPO in Hong Kong. It aims to complete the listing within the next six months. 

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