Zhaoke Ophthalmology (6622.HK) Q2 2025 Earnings Report

Zhaoke Ophthalmology Limited delivered a revenue upsurge in QQ2 2025, increasing to 15.803 million CNY, a year-over-year rise of approximately 61.6% supported by early commercialization activity and ongoing pipeline development. Gross profit rose to 8.467 million CNY with a gross margin of 53.58%, underscoring a cost structure favorable at the gross level given the early-stage revenue mix. However, the quarter posted a substantial net loss of 116.623 million CNY and an operating loss of 158.563 million CNY, dominated by a heavy research and development (R&D) outlay of 113.05 million CNY and elevated selling, general, and administrative (SG&A) expenses. EBITDA negative 140.609 million CNY and an EBITDA margin of -8.90% reflect the company’s ongoing investment phase aimed at building a robust ophthalmology portfolio rather than near-term profitability.

Liquidity remains a strength despite the burn, with a current ratio of 4.40, quick ratio of 4.36, and cash ratio of 3.14, plus cash per share of 1.93 CNY. Debt remains modest (debt ratio 0.131, debt/equity 0.159), implying a resilient balance sheet to fund pipeline advancement. Valuation metrics, however, imply high growth expectations: price-to-sales around 82x and a negative enterprise value multiple of -3.67x, signaling that the market is pricing substantial future revenue potential tied to the company’s ophthalmology pipeline. The near-term investment thesis hinges on successful progression of clinical programs, regulatory milestones, and potential partnerships or licensing arrangements that could translate into meaningful future cash flows. Absent near-term profitability, the stock remains contingent on execution of its R&D-to-market transition.