Summary
Yubo International Biotech is a distressed micro-cap medical supplier with collapsing revenue and negative equity. The May 2025 US-China tariff pause provides limited relief given its fundamental operational failures. Suitable only for high-risk speculators.
Bull Case
If the company secures emergency funding and restructures debt, it might leverage temporary tariff relief to rebuild sales channels. A buyout could theoretically extract value from any hidden assets.
Bear Case
With negative book value and no revenue, the company faces probable bankruptcy. Cash reserves cover <3 months of operating losses at current burn rate. Shareholders likely wiped out in restructuring.
Recent News
- Global medical equipment demand may rise due to aging populations (IMF, 2025), but US-China tariff risks (until August 2025) threaten supply chains [Macro Context]
- Negative book value (-$0.031 per share as of Q1 2025) and negative EPS (-$0.02 FY2024) indicate severe distress [Financial Statements]
Financial Analysis
- Revenue collapsed to $0 in Q1 2025 vs. $3.49M in Q1 2024 (-100% YoY)
- Cash reserves fell 82.8% from $57,024 (Q1 2024) to $9,773 (Q1 2025)
- Negative equity deepened to -$3.67M in Q1 2025 vs. -$2.07M in Q1 2024
- Price/Sales of -306,209.22 (2025-05-20) signals market skepticism about revenue recovery
- Current ratio of 0.14 (Q1 2025) shows critical liquidity constraints
- ROE of 0.12 (Q1 2025) masks structural issues through negative equity distortion
The company’s negative margins and evaporating cash position make it vulnerable to macroeconomic headwinds like rising tariffs (Fed rates at 4.25-4.50%) and global trade contraction (projected -0.2% merchandise trade growth in 2025). Its inability to generate positive operating cash flow (-$392k in Q1 2025) leaves no buffer against rising borrowing costs.
Screener Ratings
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Overall: 1
Existential risk dominates all other considerations
Value: 1
Negative book value and irrational P/S ratio indicate no margin of safety
Growth: 1
Revenue disappeared entirely in latest quarter (Q1 2025)
Dividend: 1
No history of dividends and insufficient profits
Defensive: 2
Medical sector defensive characteristics offset by company-specific insolvency risk
Moat: 1
No competitive advantages evident from financials
S.W.O.T. Analysis
Strengths:
Weaknesses:
- Negative equity (-$3.67M as of Q1 2025)
- Burning $392k quarterly operating cash (Q1 2025)
- 0 revenue in latest quarter
Opportunities:
- Potential sector growth if tariff pause becomes permanent
Threats:
- Liquidation risk with current ratio < 0.15
- Global supply chain disruptions from trade wars
Industry Overview
Threat of New Competitors: Low due to regulatory barriers in medical devices, but company’s weak position invites disruption
Competition Among Existing Firms: High – competes in commoditized segment with negative differentiation
Suppliers’ Bargaining Power: High – limited cash reduces ability to negotiate terms
Buyers’ Bargaining Power: Extreme – medical buyers prioritize financially stable vendors
Threat of Substitute Products: Moderate – legacy products face tech displacement risks
Competitive Advantage
Cost Advantage: None – negative gross margins show no pricing power
Intangible Assets: None – no patents or brand value evident from financials
Network Effect: None – no scale or ecosystem advantages
Switching Costs: Low – commoditized products with alternatives
Warning: This document has been generated by an advanced customised AI prompted with financial data derived from company filings and other reputable sources. The process is specifically designed to minimise hallucinations, however the output is not 100% reliable. It is essential to check any information in this document before relying on it for financial decisions. You can find the underlying data used here.
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