Yubo International Biotech Reports Significant Revenue Decline and Increased Losses for Fiscal Year 2024

Yubo International Biotech Limited reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total sales dropping to $3,470 from $604,676 in the previous year. This decrease was primarily attributed to a reduction in sales of health management services and health products, with all revenue for 2024 derived from a single customer. The company's cost of goods sold also decreased to $822 from $185,491, resulting in a gross profit of $2,648 compared to $419,185 in 2023. Operating expenses rose to $1,772,567, up from $1,613,891, leading to a loss from operations of $1,769,919, compared to a loss of $1,194,706 in the prior year. The net loss for 2024 was reported at $1,981,792, a substantial increase from the $1,195,083 loss in 2023.

In terms of strategic developments, Yubo Beijing, the company's primary operating entity, has been actively expanding its product offerings and market presence. The company acquired a 51% equity interest in EpiAis Biomedical Engineering (Shenzhen) Co., Ltd. in January 2024 and subsequently increased its stake to 70% by September 2024. Additionally, Yubo Beijing launched health management and maintenance service agreements in September 2023, diversifying its revenue streams. However, the company continues to face challenges, including reliance on a limited customer base, with one customer accounting for 100% of total sales in 2024.

Operationally, Yubo Beijing has been focusing on building a public endometrial stem cell repository, which is expected to enhance its competitive position in the biotechnology sector. The company has also been working on expanding its manufacturing capabilities and establishing a fully integrated product delivery cycle. As of December 31, 2024, Yubo Beijing employed 18 individuals, and its headquarters are located in Beijing, China. The company has also entered into various lease agreements for laboratory and office spaces to support its operations.

The financial outlook for Yubo International Biotech remains uncertain, as the company reported a negative working capital of $4,038,998 and cash reserves of only $7,015 as of December 31, 2024. The company has indicated that it may require additional capital to sustain operations and has received a financial support letter from its largest shareholder, Jun Wang, committing to provide ongoing financial assistance for the next 12 months. However, the company has expressed substantial doubt about its ability to continue as a going concern, highlighting the need for new financing sources to meet its operational obligations.

In summary, Yubo International Biotech Limited is navigating a challenging financial landscape marked by declining revenues and increasing losses. While the company is pursuing strategic acquisitions and expanding its product offerings, its reliance on a limited customer base and the need for additional capital raise concerns about its future viability. The company's ability to adapt to market conditions and secure necessary funding will be critical in determining its operational success moving forward.