Exchange: OTC | Sector: Communication Services | Industry: Internet Content Information
Q3 2025
Published: Feb 14, 2025
Earnings Highlights
EPS of $0.00 increased by 0% from previous year
Net income of -10.91K
"N/A" - N/A
Yinfu Gold Corporation (ELRE) QQ3 2025 Results – Liquidity Stress, Negative Equity and Turnaround Challenges in Internet Content Information (OTC-listed, USD)
Executive Summary
Yinfu Gold Corporation (ELRE) reported a materially weak QQ3 2025 quarter with no disclosed revenue and a negative bottom line. The company generated EBITDA of -$19,255 and net income of -$10,908, accompanied by a quarterly operating cash burn of approximately -$33,038 and only $945 in cash at period end. The balance sheet shows a severely overstretched liability base relative to assets, with total liabilities of roughly $2.68 million against assets of about $23.6 thousand and a negative shareholders’ equity of approximately -$2.66 million. Key liquidity metrics are extreme: current ratio 0.00462 and cash ratio 0.00035, signaling an imminent liquidity risk absent external financing or an accelerated value realization program.
YoY and QoQ metrics show only marginal sequential improvement on the income line (operating income down -6.24% YoY, up 2.53% QoQ; net income down -12.07% YoY, up 9.21% QoQ) but the magnitude of the losses remains outsized relative to any available cash, assets, or earnings potential. Management commentary is not provided in the supplied materials, as no earnings call transcript was included. Given the dislocation between cash, negative book equity, and the debt burden (gross debt around $1.83 million), the near-term investment thesis hinges on a material capital infusion, debt restructuring, or a rapid revenue-generating pivot. Until such catalysts materialize, the stock carries substantial downside risk and is characterized by an acute liquidity and solvency risk profile.
Key Performance Indicators
Operating Income
-19.26K
QoQ: 2.53% | YoY:-6.24%
Net Income
-10.91K
QoQ: 9.21% | YoY:-12.07%
EPS
0.00
QoQ: 0.00% | YoY:0.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed for QQ3 2025 (no revenue figure available in the quarter’s data).
EBITDA: -$19,255.00
Operating income: -$19,255.00
Net income: -$10,908.00
EPS: -$0.0001; Diluted EPS: -$0.0001
Financial Highlights
Profitability and cash flow
- Revenue: Not disclosed for QQ3 2025 (no revenue figure available in the quarter’s data).
- EBITDA: -$19,255.00
- Operating income: -$19,255.00
- Net income: -$10,908.00
- EPS: -$0.0001; Diluted EPS: -$0.0001
- Gross Profit: Not disclosed (grossProfit and grossProfitMargin reported as 0% in the available data).
Liquidity and cash flow
- Net cash from operating activities: -$33,038.00
- Depreciation and amortization: $1,734 (included in cash flow but not a cash outlay in this quarter’s operations)
- Change in working capital: -$23,864.00; Other working capital: -$23,864.00
- Net change in cash: $650.00; Cash at end of period: $0.95k
- Financing activities: Net cash provided by financing activities $33,772.00; Net cash used by financing activities is positive, contributing to the small net cash increase.
- Free cash flow: -$33,038.00
Balance sheet and leverage
- Total assets: $23,630.00
- Total liabilities: $2,680,521.00
- Total stockholders’ equity: -$2,656,891.00
- Cash and cash equivalents: $945.00
- Net debt: $1,827,351.00; Short-term debt: $1,817,423.00; Long-term debt: $10,873.00
- Current ratio: 0.00462; Quick ratio: 0.00462; Cash ratio: 0.000354
- Debt-to-equity: negative (due to negative equity); Debt-to-asset proxy indicates extreme leverage relative to assets.
Valuation and ratios (selected)
- Price-to-book and related equity multipliers are negative due to book value being negative; price-to-earnings and related profitability multiples are not meaningful given the ongoing losses and negative equity.
- Assets clearly insufficient to cover near-term liabilities, signaling a going-concern risk absent material balance-sheet repair or liquidity infusion.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-19.26K
-6.24%
2.53%
Net Income
-10.91K
-12.07%
9.21%
EPS
0.00
0.00%
0.00%
Key Financial Ratios
currentRatio
0
returnOnAssets
-46.2%
returnOnEquity
0.41%
debtEquityRatio
-0.69
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-27.55
priceEarningsRatio
-1677.45
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data not provided in the supplied materials. No QQ3 2025 earnings call transcript or management quotes were included. As a result, there are no thematically grouped quotes to anchor the highlights. The analysis below therefore relies on the disclosed financials and metrics for evaluation rather than management commentary.
N/A
— N/A
N/A
— N/A
Forward Guidance
Management guidance is not provided in the available materials for QQ3 2025. Given the liquidity and solvency signs, the plausible paths for forward guidance would typically include:
- Liquidity preservation plans (e.g., debt restructuring, equity financing, asset monetization, or cost reductions) and runway targets;
- Any commitments to revenue growth (particularly given the company’s stated focus on AI/IOT applications in China) and milestones to achieve break-even EBITDA;
- Potential strategic options (partial asset sale, licensing deals, partnerships) to unlock value.
Assessment of achievability based on the disclosed data:
- With cash of $945 and quarterly operating cash burn of approximately $33k, the liquidity runway is extremely limited unless there is an immediate financing event or a material reduction in expenditures.
- The balance sheet shows negative equity of about -$2.66 million and total liabilities of $2.68 million, suggesting that any credible turnaround would require substantial external funding or balance-sheet restructuring.
- Absent a revenue ramp or substantial capital injection, the achievability of a positive EBITDA or a path to solvency in the near term is low. Investors should monitor for: (1) announced capital raises or debt refinancings, (2) any strategic agreements that monetize assets or license technology, (3) quarterly liquidity updates or covenants renegotiations, and (4) any shift in business model toward revenue-generating activities with material gross margins.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
ELRE Focus
0.00%
0.00%
0.41%
-1,677.45%
META
81.80%
42.70%
9.54%
23.07%
GOOGL
58.70%
32.30%
8.37%
19.37%
TWLO
51.00%
-0.43%
-0.12%
-266.71%
SNAP
53.50%
-12.60%
-6.93%
-29.03%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the QQ3 2025 results, Yinfu Gold Corporation presents a high-risk, highly leveraged profile with acute liquidity risk and negative equity. The near-term investment outlook is contingent on material external actions (e.g., capital raise, debt restructuring, or asset monetization) and/or the emergence of a revenue-generating plan with a credible path to profitability. Absent concrete catalysts or management guidance, the investment case is unlikely to satisfy risk-adjusted return requirements for most investors. A cautious stance is advised until there is clarity around liquidity preservation, balance-sheet repair, and a tangible revenue trajectory.
Key Investment Factors
Growth Potential
Very limited near-term growth potential given the absence of disclosed quarterly revenue and the extreme liquidity constraints. Any potential upside would depend on a successful capital raise, monetization of IP/assets, or a strategic pivot toward scalable revenue streams in AI/IoT/applications within China.
Profitability Risk
High risk. Key risks include: (a) going-concern risk from negative equity and outsized current liabilities, (b) dependence on external financing to sustain operations, (c) negligible or undisclosed revenue in QQ3 2025, (d) continued cash burn with no clear near-term path to profitability, (e) potential regulatory and execution risks in the Chinese Internet technology/IP space, and (f) volatility in OTC liquidity and investor access.
Financial Position
Extremely weak balance sheet characterized by zero or negligible cash on hand versus substantial liabilities, negative shareholders’ equity, and negative operating cash flow. Net debt (~$1.83M) far exceeds liquid assets, and the current/liquidity ratios imply a precarious liquidity position without external capital or asset monetization. Management commentary is not available to confirm any contingent liabilities or off-balance-sheet items that could alter the assessment.
SWOT Analysis
Strengths
Strategic intent toward AI, IoT and Internet technology applications in China, suggesting a potentially scalable addressable market if monetized.
Presence of tangible assets (PPE) and some receivables that could be leveraged in asset-recovery discussions or potential financing scenarios.
Weaknesses
Severe liquidity constraints with cash of $945 and negative working capital; current ratio of 0.0046 implies inability to cover short-term obligations.
Negative shareholders’ equity (~$2.66 million) and heavy liabilities; no disclosed revenue in QQ3 2025; consistent quarterly operating losses.
Limited visibility into revenue streams or operating model; high sensitivity to any financing terms or covenant structures in potential restructuring.
Opportunities
Debt restructuring, equity financing, or strategic partnerships could unlock liquidity and support a turnaround.
Potential monetization of existing assets or licensing arrangements for AI/IoT technologies if value can be demonstrated to counterparties.
Threats
Going-concern risk without timely capital infusions; potential dilution or acceleration risk tied to financing arrangements.
Regulatory and competitive risks in the China internet/applications space; macroeconomic headwinds could impact access to capital and customer demand.
OTC liquidity constraints could hinder financing negotiations and investor access.