Shanghai Bioheart Biological Technology Co Ltd (2185.HK) QQ2 2025 Results – R&D-driven investment in BRS/Iberis 2nd pipeline with near-term profitability challenges
Executive Summary
In QQ2 2025, Shanghai Bioheart reported revenue of 20.862 million CNY, with a gross profit of 9.695 million and a gross margin of 46.47%. The company, however, recorded a substantial operating loss of 21.232 million and a net loss of 27.213 million, driven by a heavy R&D and SG&A outlay totaling 42.094 million. The delta between a modest top-line and elevated operating expenses underscores the company’s position as an R&D-focused biotech in a pre-commercial phase, investing in Bioheart (BRS system) and Iberis 2nd (multielectrode renal denervation) and related drug-coated balloon programs. Despite the near-term losses, the balance sheet presents favorable liquidity and minimal leverage, with a current ratio of 12.65, quick ratio of 11.95, and a cash ratio of 5.61, and a debt ratio of 0.87%, implying substantial runway to advance clinical and development milestones ahead of expected commercialization.
Key Performance Indicators
Revenue
20.86M
QoQ: 0.00% | YoY:N/A
Gross Profit
9.70M
46.47% margin
QoQ: 0.00% | YoY:N/A
Operating Income
-21.23M
QoQ: 0.00% | YoY:-32.02%
Net Income
-27.21M
QoQ: 0.00% | YoY:12.38%
EPS
-0.11
QoQ: 0.00% | YoY:14.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 20,862,000; QoQ: 0.00%; YoY: N/A. The topline shows a sequential increase vs Q1 2025 (10,431,000) indicating early operating activity in the quarter, though compounding R&D spend remains the key driver of profitability dynamics.
Operating Expenses: 42,094,000, comprising Research and Development: 20,090,000; General and Administrative: 9,691,000; Selling and Marketing: 1,146,000; Selling, General and Administrative (SG&A): 10,837,000 (note: multiple line items shown in the data).
Operating Income: -21,232,000; Operating Margin: -1.02%; YoY: -32.02%; QoQ: 0.00%. The swing is primarily due to the scale and timing of R&D investments versus revenue recognition.
EBITDA: -17,837,500; EBITDA Margin: -85.50% (EBITDA roughly -narrowly aligns with revenue base, reflecting early-stage development costs).
Financial Highlights
Revenue and profitability overview (CNY, Q2 2025):
- Revenue: 20,862,000; QoQ: 0.00%; YoY: N/A. The topline shows a sequential increase vs Q1 2025 (10,431,000) indicating early operating activity in the quarter, though compounding R&D spend remains the key driver of profitability dynamics.
- Gross Profit: 9,695,000; Gross Margin: 46.47%; YoY: N/A; QoQ: 0.00%.
- Operating Expenses: 42,094,000, comprising Research and Development: 20,090,000; General and Administrative: 9,691,000; Selling and Marketing: 1,146,000; Selling, General and Administrative (SG&A): 10,837,000 (note: multiple line items shown in the data).
- Operating Income: -21,232,000; Operating Margin: -1.02%; YoY: -32.02%; QoQ: 0.00%. The swing is primarily due to the scale and timing of R&D investments versus revenue recognition.
- EBITDA: -17,837,500; EBITDA Margin: -85.50% (EBITDA roughly -narrowly aligns with revenue base, reflecting early-stage development costs).
- Net Income: -27,213,000; Net Margin: -1.30%; YoY: +12.38% (note: the YoY figure is positive, indicating the rate of change in net income; absolute losses remain sizable).
- Earnings per Share (EPS): -0.1118 CNY; YoY: +14.00%; QoQ: 0.00%.
- Liquidity and leverage: Current Ratio 12.65; Quick Ratio 11.95; Cash Ratio 5.61; Debt Ratio 0.0087 (~0.87%); Debt/Equity 0.0161. The balance sheet features minimal leverage and robust liquidity despite the operating losses.
- Efficiency and asset turnover: Receivables Turnover 1.715x; Inventory Turnover 0.483x; Asset Turnover 0.0237x. The company operates with a very small revenue base relative to asset and working capital scales, implying substantial R&D capitalization and/or cash burn at the operating level.
- Valuation and market data: Price-to-Book 1.65; Price-to-Sales 37.79; Price-to-Earnings negative (P/E -7.24) reflecting negative trailing earnings; Enterprise Value Multiple -34.12; Price to Cash Flow 0 (per dataset); Cash per Share 1.285 CNY. These metrics illustrate high implied growth expectations from investors but limited current profitability.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
20.86M
N/A
0.00%
Gross Profit
9.70M
N/A
0.00%
Operating Income
-21.23M
-32.02%
0.00%
Net Income
-27.21M
12.38%
0.00%
EPS
-0.11
14.00%
0.00%
Key Financial Ratios
currentRatio
12.65
grossProfitMargin
46.5%
operatingProfitMargin
-101.8%
netProfitMargin
-130.4%
returnOnAssets
-3.1%
returnOnEquity
-5.7%
debtEquityRatio
0.02
priceToBookRatio
1.65
priceEarningsRatio
-7.24
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript data provided in the source dataset. As a result, there are no management quotes or thematic highlights to summarize. When available, incorporate management commentary on pipeline milestones, regulatory timelines, and commercialization plans.
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward guidance is contained in the provided data. Given the company’s focus on R&D-intensive programs (Bioheart BRS platform and Iberis 2nd renal denervation), near-term catalysts would typically include: (1) trial progress updates or results for Iberis 2nd and related cardiovascular devices, (2) regulatory interactions or interim data that could de-risk the path to commercialization in China, (3) potential collaboration or licensing deals that could provide non-dilutive funding or milestone-based financings. Absent formal guidance, investors should assess management’s cadence for milestones, expected spend discipline, and potential monetization events that could alter the cost structure and revenue trajectory.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
2185.HK Focus
46.47%
-1.02%
-5.70%
-7.24%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ2 2025 results depict a company in a pre-commercial, investment-intensive phase. The near-term earnings trajectory remains negative due to heavy R&D spend and SG&A, with revenue growth modestly offset by escalating operating costs. The favorable liquidity and extremely low leverage provide a cushion to continue pipeline development, but profitability hinges on successful progression toward commercialization. Investors should monitor milestone progression for Iberis 2nd and Bioheart BRS, trial readouts, and any strategic partnerships that could de-risk funding needs or deliver upfront payments and milestone receipts. Valuation reflects expectations of future growth (P/S of 37.79, P/B 1.65, EV/Rev negative given negative earnings), but the lack of disclosed forward guidance and limited peer comparables in the dataset makes it essential to require clearer visibility on timelines, cost-to-revenue inflection, and scalable manufacturing plans before pricing in sustained upside. In a risk-aware view, the stock may appeal to investors prioritizing early-stage biotech upside with substantial trial-driven catalysts, provided milestones align with a credible path to eventual profitability.
Key Investment Factors
Growth Potential
Long-term upside hinges on successful commercialization of Bioheart BRS and Iberis 2nd products, plus ongoing clinical validation. If Iberis 2nd demonstrates robust safety/efficacy in trials and achieves favorable regulatory milestones, market adoption in China could unlock meaningful revenue streams, potentially enabling operating leverage as volume increases and manufacturing scales.
Profitability Risk
Key risks include continued reliance on R&D while revenue remains limited, potential delays or failures in clinical trials or regulatory approvals, competition within interventional cardiology and peripheral therapies, and execution risk in transitioning from R&D to commercial revenue. The company’s heavy R&D burn (~96% of quarterly revenue) creates sensitivity to any extended development timelines or funding gaps. Data quality concerns (noted in payables/turnover metrics) also warrant caution until more robust disclosures are available.
Financial Position
Strengths include a very low leverage profile, robust liquidity (current ratio 12.65, quick ratio 11.95, cash ratio 5.61) and a debt ratio of ~0.87%, indicating a cushion for continued R&D investment without near-term debt pressure. However, the business remains unprofitable in Q2 2025 with a substantial operating loss, and near-term cash flow dynamics are not disclosed in the provided data. The company’s valuation metrics imply expectations of future growth despite current losses, which requires successful pipeline progression.
SWOT Analysis
Strengths
Low leverage and strong liquidity metrics (current ratio 12.65, quick ratio 11.95, cash ratio 5.61; debt ratio 0.87%), providing runway to fund R&D and trials.
Gross margin of 46.47% on Q2 2025 revenue supports a viable product economics framework once commercialization scales.
Focused R&D pipeline (Bioheart BRS system; Iberis 2nd renal denervation) with potential for long-term value creation if clinical and regulatory milestones are achieved.
No material long-term debt and potential for milestone-based financing or partnering to support development.
Weaknesses
Significant near-term profitability challenge: operating loss -21.232m and net loss -27.213m in Q2 2025.
R&D intensity remains extremely high relative to revenue (R&D 20.09m vs revenue 20.86m ≈ 96%), pressuring margins until products commercialize.
Revenue base is small and sequentially grew only modestly in Q2 2025 despite doubling from Q1 2025, signaling early-stage commercial traction.
China’s interventional cardiology market expansion and demand for novel BRS and RDN therapies could unlock adoption once trials succeed.
Strategic collaborations (e.g., with Terumo China) may provide access to larger clinical networks and support development/commercialization.
Iberis 2nd and Bioheart BRS programs could create multiple catalysts across trial milestones, regulatory clearance, and potential commercialization.
Threats
Clinical/regulatory risk in China and potential international expansion; any trial delays or negative safety signals could derail commercialization timelines.
Competitive landscape in interventional devices and hypertension therapies with established incumbents and new entrants.
Macro/healthcare policy shifts or pricing pressures could impact reimbursement and market uptake.
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