MeritValue

Regencell Bioscience Holdings Ltd

RGCdata completeness 75%7 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'interestExpense'; no data for concept 'incomeTaxExpense'

The thesis, from the filings

Regencell Bioscience Holdings Ltd earns about -71% on invested capital, but has diluted owners by 4845% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income−$1.35M1−$7.45M2−$5.87M3−$4.3M3−$3.58M3
Operating cash flow−$767,3114−$5.27M5−$4.96M6−$4M6−$3.11M6
Capital expenditure—$780,8767$27,3928$5,3768$152,6898
Free cash flow (derived)—−$6.05M5−$4.99M6−$4.01M6−$3.27M6
Total debt—————
Cash & equivalents$59,4139$6.42M9$1.56M10$2.96M10$2.42M10
Diluted shares10.0M12.8M494.5M494.5M494.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$0.1
your share of equity
Profit it earned you last year
−$0.07
Free cash flow it threw off
−$0.07
Debt you’d be carrying
—

10 shares is a claim on $0.1 of net worth that earned you −$0.07 and generated −$0.07 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-71% avg · 5y
FY21 —FY22 -56%FY23 -46%FY24 -66%FY25 -116%

It earned an average -71% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+4845% shares · 5y

Share count is up 4845% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-06-30 · accession 0001013762-23-007289 (NetIncomeLoss)
  2. 20-F · period ending 2022-06-30 · accession 0001213900-24-090791 (NetIncomeLoss)
  3. 20-F · period ending 2023-06-30 · accession 0001213900-25-104686 (NetIncomeLoss)
  4. 20-F · period ending 2021-06-30 · accession 0001013762-23-007289 (NetCashProvidedByUsedInOperatingActivities)
  5. 20-F · period ending 2022-06-30 · accession 0001213900-24-090791 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2023-06-30 · accession 0001213900-25-104686 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2022-06-30 · accession 0001213900-24-090791 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 20-F · period ending 2023-06-30 · accession 0001213900-25-104686 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 20-F · period ending 2021-06-30 · accession 0001213900-22-067683 (CashAndCashEquivalentsAtCarryingValue)
  10. 20-F · period ending 2023-06-30 · accession 0001213900-25-104686 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)