Executive Summary
Fusen Pharmaceutical reported QQ1 2025 results that underscore a challenging near-term revenue trajectory with material profitability pressure, despite a relatively healthy gross margin. Revenue reached 55.643 million CNY in Q1 2025, down 43.31% year over year and 14.20% quarter over quarter versus the prior quarter. Gross profit was 21.495 million CNY, yielding a gross margin of 38.63%, but the company posted an operating loss of 10.097 million CNY and a net loss of 11.568 million CNY. EBITDA registered a negative 1.429 million CNY, with depreciation and amortization of 8.669 million CNY, signaling ongoing investment in fixed assets or intangible capitalization that has yet to translate into earnings power.
Key drivers of the quarterly results include a lean revenue base in a competitive PRC pharmaceutical market and a cost structure that, while disciplined, remains insufficient to offset the top-line shortfall. R&D expenditure stood at 7.4415 million CNY, with SG&A implied at 22.6655 million CNY, contributing to elevated operating costs relative to revenue. The quarter’s earnings metrics show a negative but improving trajectory on a year-over-year basis for operating income (+44.73% YoY) and net income (+37.37% YoY), yet both remain negative in absolute terms. The earnings per share stood at -0.0156 CNY, with YoY and QoQ improvements reflecting disease-treatment portfolio progress but not yet delivering earnings turnaround.
From a broader perspective, the QQ1 2025 results suggest the company remains in an investment-heavy phase, prioritizing portfolio development, product launches, or line extensions in a competitive Chinese market. The lack of disclosed cash flow and balance sheet specifics in the data provided limits a full view of liquidity and financial flexibility; however, the current period’s losses imply that operational leverage and financing comfort will be critical focus areas for management as the year progresses.
Key Performance Indicators
QoQ: -14.20% | YoY:-43.31%
QoQ: -24.27% | YoY:-59.39%
Key Insights
Revenue (Q1 2025): 55,643,000 CNY; Cost of Revenue: 34,148,000 CNY; Gross Profit: 21,495,000 CNY; Gross Margin: 38.63%
R&D Expenses: 7,441,500 CNY; SG&A (General + Selling): 22,665,500 CNY; Other Expenses: 1,485,000 CNY; Operating Expenses: 31,592,000 CNY; Cost and Expenses: 65,740,000 CNY; EBITDA: -1,428,250 CNY; Depreciation & Amortization: 8,668,750 CNY
Operating Income: -10,097,000 CNY; EBITDARatio: -0.0257; Income Before Tax: -11,362,500 CNY; Income Tax: 205,500 CNY; Net Income:...
Financial Highlights
Revenue (Q1 2025): 55,643,000 CNY; Cost of Revenue: 34,148,000 CNY; Gross Profit: 21,495,000 CNY; Gross Margin: 38.63%
R&D Expenses: 7,441,500 CNY; SG&A (General + Selling): 22,665,500 CNY; Other Expenses: 1,485,000 CNY; Operating Expenses: 31,592,000 CNY; Cost and Expenses: 65,740,000 CNY; EBITDA: -1,428,250 CNY; Depreciation & Amortization: 8,668,750 CNY
Operating Income: -10,097,000 CNY; EBITDARatio: -0.0257; Income Before Tax: -11,362,500 CNY; Income Tax: 205,500 CNY; Net Income: -11,568,000 CNY; Net Income Margin: -20.79%
EPS (diluted): -0.0156 CNY; Weighted Avg Shares: 739,311,050
YoY and QoQ Comparisons (Q1 2025 vs Q1 2024): Revenue YoY -43.31%; Gross Profit YoY -59.39%; Operating Income YoY +44.73% (negative to more negative, indicating improving rate but still losses); Net Income YoY +37.37%; EPS YoY +37.60% ; QoQ comparisons (Q1 2025 vs Q4 2024): Revenue -14.20%; Gross Profit -24.27%; Operating Income +34.80% (still negative); Net Income +84.76% (still negative).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
55.64M |
-43.31% |
-14.20% |
| Gross Profit |
21.50M |
-59.39% |
-24.27% |
| Operating Income |
-10.10M |
44.73% |
34.80% |
| Net Income |
-11.57M |
37.37% |
84.76% |
| EPS |
-0.02 |
37.60% |
84.40% |
Management Commentary
Note: A management earnings call transcript was not provided in the data supplied. As a result, transcript-based insights, verbatim quotes, and theme categorization could not be extracted. If a transcript becomes available, we can group insights by strategy, operations, and market conditions with corresponding quotes.
Forward Guidance
No explicit forward guidance was disclosed in the dataset. Given the QQ1 2025 results, the near-term focus for Fusen should be on stabilizing revenue, improving gross margin discipline, and converting R&D investments into revenue growth. Key factors to watch include: (1) progress on product portfolio optimization and commercialization timing for Shuanghuanglian-based and other proprietary/WMC offerings; (2) SG&A efficiency and cost controls to convert gross profit into operating profit; (3) productivity gains from scale in PRC distribution and channel partnerships; (4) regulatory pricing dynamics affecting generics and OTC products; (5) potential macro headwinds in the Chinese healthcare market and any shifts in payer policies. If management communicates concrete milestones (e.g., new product launches, partnerships, or pilot programs) and tangible profitability targets, we would reassess the timing and likelihood of margin expansion and cash-flow improvement.