Yubo International Biotech Reports Zero Revenue and Increased Losses in Q1 2025

Yubo International Biotech Limited reported a significant decline in financial performance for the first quarter of 2025, with total revenue dropping to $0, compared to $3.5 million in the same period of 2024. The company attributed this downturn primarily to adverse market conditions in China. Consequently, the gross profit also fell from $2.7 million to nil. Operating expenses, however, increased to $467,299 from $412,082, driven by higher employee compensation and occupancy costs. The net loss for the quarter was $467,318, up from a loss of $409,505 in the previous year.

The company's balance sheet as of March 31, 2025, showed total assets of $1.17 million, a decrease from $1.53 million at the end of 2024. Current liabilities remained relatively stable at $4.78 million, compared to $4.72 million at the end of the previous year. Yubo's accumulated deficit increased to $7.1 million, reflecting ongoing operational challenges. The company also reported a negative working capital of $4.1 million, raising concerns about its ability to meet short-term obligations.

Strategically, Yubo has been active in expanding its operations through acquisitions. In October 2023, the company acquired Phoenix Club Bio-Medical Technology, and in January 2024, it secured a 51% equity interest in EpiAis Biomedical Engineering, later increasing its stake to 70%. These acquisitions are part of Yubo's strategy to enhance its product offerings and market presence in the biotechnology sector. However, the company has not reported any sales for the current quarter, indicating a potential gap in product adoption and market penetration.

Yubo's operational metrics reflect a challenging environment, with no sales recorded during the first quarter of 2025. The company has also seen a decrease in customer engagement, as evidenced by the absence of revenue generation. The management has indicated that the downturn in sales is linked to broader economic conditions in China, which have impacted consumer spending and demand for its products. The company continues to rely on advances from related parties, which amounted to $426,997 as of March 31, 2025.

Looking ahead, Yubo International Biotech Limited faces substantial uncertainty regarding its ability to continue as a going concern. The company has received a financial support letter from its largest shareholder, Jun Wang, committing to provide necessary funding for the next 12 months. However, the management acknowledges the need for additional capital resources to sustain operations and meet liabilities. The outlook remains cautious, with the company actively seeking new financing options while navigating the complexities of the Chinese regulatory environment and market conditions.