Executive Summary
Fusen Pharmaceutical’s QQ2 2025 results show a meaningful top-line rebound with revenue of 55.64 million CNY, up 71.6% year over year, and gross profit of 21.50 million CNY yielding a gross margin of 38.63%. However, the quarter remains unprofitable on both a EBITDA and net income basis, with operating income of -10.10 million CNY and net income of -11.57 million CNY, resulting in negative operating and net margins of -18.15% and -20.79%, respectively. The year-over-year revenue lift is driven by improved product mix and volume, but the cost structure—comprising R&D of 7.44 million CNY, SG&A of 22.67 million CNY, and total operating expenses of 31.59 million CNY—still crowds out profitability. Liquidity metrics remain tight (current ratio 0.57, quick ratio 0.41, cash ratio 0.096), underscoring balance-sheet stress despite modest leverage (debt ratio 0.296; debt to equity 1.052). The stock trades with a negative earnings multiple and a depressed enterprise value, reflecting investor skepticism about near-term profitability. Management commentary is not captured in the data provided, limiting ability to quote on strategy or forward guidance. Going forward, the key questions are whether Fusen can scale revenue while materially reducing operating costs, improve working capital efficiency, and advance higher-margin proprietary offerings to move toward breakeven and positive cash flow.
Key Performance Indicators
QoQ: 100.00% | YoY:71.60%
QoQ: 100.00% | YoY:51.47%
QoQ: -100.00% | YoY:-30.40%
QoQ: -100.00% | YoY:69.53%
QoQ: -100.00% | YoY:68.80%
Key Insights
Revenue: 55.64m CNY in Q2 2025, up 71.6% YoY; Gross Profit: 21.50m CNY, gross margin 38.63%; Operating Income: -10.10m CNY, margin -18.15%; Net Income: -11.57m CNY, net margin -20.79%; EPS: -0.0156 CNY; EBITDA: -1.43m CNY; R&D: 7.44m CNY; SG&A: 22.67m CNY; Operating Expenses: 31.59m CNY; DSO: 84.7 days; DIO: 167.3 days; DPO: 180.3 days; CCC: 71.6 days; Current Ratio: 0.568; Quick Ratio: 0.407; Cash Ratio: 0.0963; Gross Margin: 38.63%; Operating Margin: -18.15%; Pretax Margin: -20.42%; Ne...
Financial Highlights
Revenue: 55.64m CNY in Q2 2025, up 71.6% YoY; Gross Profit: 21.50m CNY, gross margin 38.63%; Operating Income: -10.10m CNY, margin -18.15%; Net Income: -11.57m CNY, net margin -20.79%; EPS: -0.0156 CNY; EBITDA: -1.43m CNY; R&D: 7.44m CNY; SG&A: 22.67m CNY; Operating Expenses: 31.59m CNY; DSO: 84.7 days; DIO: 167.3 days; DPO: 180.3 days; CCC: 71.6 days; Current Ratio: 0.568; Quick Ratio: 0.407; Cash Ratio: 0.0963; Gross Margin: 38.63%; Operating Margin: -18.15%; Pretax Margin: -20.42%; Net Margin: -20.79%; Debt Ratio: 0.296; Debt/Equity: 1.052; P/BV: 0.759; P/S: 2.36; P/E: negative; Enterprise Value Multiple: -193.14; Price to Sales: 2.36; Revenue YoY growth (4-quarter): 71.60%; Gross Profit YoY growth: 51.47%; Operating Income YoY: -30.40%; Net Income YoY: 69.53%; EPS YoY: 68.80%; QoQ revenue growth: 100.00%; QoQ gross profit growth: 100.00%; QoQ operating income: -100.00%; QoQ net income: -100.00%; QoQ EPS: -100.00%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
55.64M |
71.60% |
100.00% |
| Gross Profit |
21.50M |
51.47% |
100.00% |
| Operating Income |
-10.10M |
-30.40% |
-100.00% |
| Net Income |
-11.57M |
69.53% |
-100.00% |
| EPS |
-0.02 |
68.80% |
-100.00% |
Key Financial Ratios
operatingProfitMargin
-18.1%
Management Commentary
Notwithstanding the dataset provided, no earnings call transcript was supplied for QQ2 2025. Consequently, there are no management quotes or thematic highlights drawn from a call in this dataset. The analysis therefore relies on the disclosed quarterly results and associated financial ratios rather than verbatim management commentary.
Forward Guidance
No formal forward guidance was disclosed in the QQ2 2025 release. Given the current profitability and liquidity profile, a reasoned outlook hinges on: (1) sustaining revenue growth while improving gross margins through product mix optimization and cost of goods optimization; (2) materially reducing operating expenses, especially SG&A, through scale efficiencies, and (3) improving working capital management to lift the cash conversion cycle. Industry trends in China’s pharmaceutical sector—competitive generics pricing, potential regulatory pricing pressures, and growing demand for OTC and proprietary Chinese medicines—could influence Fusen’s margin trajectory. The achievability of any implied margin breakeven will depend on control of fixed costs, successful commercialization of higher-margin products, and potential partnerships or licensing deals to diversify revenue streams. Key monitorables: gross margin trend (aim for stabilization or expansion above 40%), SG&A as a percentage of revenue, cash flow from operations, and improvements in days sales outstanding and inventory turnover.