EPS of $-0.06 decreased by 5.3% from previous year
Gross margin of 46.5%
Net income of -13.61M
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Shanghai Bioheart Biological Technology Co Ltd (2185.HK) QQ1 2025 Results: Revenue Growth with Persisting R&D Burn and Net Loss in China’s High-Potential Cardiovascular Devices Space
Executive Summary
Shanghai Bioheart delivered a modest topline in Q1 2025 with revenue of 10.43 million CNY and gross profit of 4.85 million CNY, yielding a gross margin of 46.47%. The company continues to operate with a heavy R&D and SG&A spend, resulting in a substantial net loss of 13.61 million CNY and an EBITDA loss of 8.92 million CNY. R&D expenses dominated the cost structure at 10.05 million CNY, underscoring the company’s heavy investment in its BRS and RDN product pipeline, including Bioheart, Iberis 2nd, and related drug-coated balloon initiatives, as well as ongoing collaboration with Terumo China for clinical trials. The near-term revenue trajectory remains uncertain as commercialization milestones and regulatory progress drive meaningful earnings leverage.
From a quarterly trend perspective, Q1 2025 shows improvement in operating loss and net loss relative to some prior quarters, reflected in favorable YoY/ QoQ momentum for operating income and earnings per share, but the company remains in a pre-profit, R&D-intensive phase. Management commentary (not provided in the prompt) is essential to confirm milestones around clinical trial progress, regulatory expectations, and any anticipated capital-raising needs to fund ongoing development. Investors should monitor cash runway, burn rate, and the timing of potential product approvals or pilot commercial launches to assess the path to profitability.
Key Performance Indicators
Revenue
10.43M
QoQ: N/A | YoY:N/A
Gross Profit
4.85M
46.47% margin
QoQ: N/A | YoY:N/A
Operating Income
-10.62M
QoQ: 33.99% | YoY:26.54%
Net Income
-13.61M
QoQ: 56.19% | YoY:-5.25%
EPS
-0.06
QoQ: 57.00% | YoY:-5.26%
Revenue Trend
Margin Analysis
Key Insights
Operating Income YoY: +26.54% (improvement in loss versus prior year) and QoQ: +33.99% (sequential improvement in operating losses).
Net Income YoY: -5.25% (net loss slightly narrowed year over year) and QoQ: +56.19% (net loss reduced in the quarter).
EPS YoY: -5.26% and QoQ: +57.00%.
Revenue and cost figures are in CNY for QQ1 2025 (Q1 2025). The company remains in an R&D-intensive phase with limited current profitability. The near-term earnings trajectory depends on progress in clinical trials, regulatory milestones, and any scaling of Bioheart/BRS/RDN products into the market.
Financial Highlights
Revenue: 10,431,000 CNY; Gross Profit: 4,847,500 CNY; Gross Margin: 46.47% (grossProfitMargin: 0.4647); Operating Expenses: 21,047,000 CNY; R&D: 10,045,000 CNY; G&A: 4,845,500 CNY; Selling & SG&A: 5,418,500 CNY; EBITDA: -8,918,750 CNY; EBITDA Margin: -85.50%; Operating Income: -10,616,000 CNY; Operating Margin: -101.77%; Income Before Tax: -13,710,000 CNY; Net Income: -13,606,500 CNY; Net Margin: -130.44%; Net Income per Share (EPS): -0.0559 CNY; Weighted Average Shares Out: 243,420,934.
Key YoY and QoQ changes (where data available):
- Operating Income YoY: +26.54% (improvement in loss versus prior year) and QoQ: +33.99% (sequential improvement in operating losses).
- Net Income YoY: -5.25% (net loss slightly narrowed year over year) and QoQ: +56.19% (net loss reduced in the quarter).
- EPS YoY: -5.26% and QoQ: +57.00%.
Notes:
- Revenue and cost figures are in CNY for QQ1 2025 (Q1 2025). The company remains in an R&D-intensive phase with limited current profitability. The near-term earnings trajectory depends on progress in clinical trials, regulatory milestones, and any scaling of Bioheart/BRS/RDN products into the market.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
10.43M
N/A
N/A
Gross Profit
4.85M
N/A
N/A
Operating Income
-10.62M
26.54%
33.99%
Net Income
-13.61M
-5.25%
56.19%
EPS
-0.06
-5.26%
57.00%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings-call transcript or management quotes were provided in the prompt. Consequently, transcript highlights and quotes could not be extracted. If you share the QQ1 2025 earnings call transcript, I will extract them by theme (strategy, operations, market conditions) and provide context and significance with precise quotes.
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Forward Guidance
No explicit forward guidance was disclosed in the provided data. Given the heavy R&D outlays and a developing product pipeline, the company’s short-term objective appears to be advancing clinical trials, validating the BRS/BIOHEART system, and securing regulatory/partnership milestones that could unlock future revenue. The key uncertainties are the timing of potential product approvals, the pace of adoption in China’s cardiovascular market, and the company’s ability to secure additional financing if required to sustain operations during the burn phase. Investors should monitor: (1) updates on Terumo China collaboration and progression of Iberis 2nd and related devices in trials, (2) any disclosed regulatory milestones or pilot launches, (3) cash runway and potential capital-raising activity, and (4) quarterly progress in reducing operating losses toward breakeven.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
2185.HK Focus
46.47%
N/A
N/A
N/A
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ1 2025 results underscore a high-beta, R&D-intensive development path for Shanghai Bioheart. With revenue just over 10 million CNY and gross margins in the mid-40s, the company’s near-term profitability hinges on the translation of its pipeline into commercial products and the timely achievement of clinical/regulatory milestones. The Terumo China collaboration could be a meaningful catalyst if it accelerates clinical validation and market access, yet the company requires additional capital to sustain ongoing R&D and operating losses. Investors should monitor: (1) progress and timelines of Bioheart/BRS and Iberis 2nd trials, (2) regulatory milestones and potential pilot launches, (3) cash runway and any planned equity or debt financing, and (4) evidence of scalable unit economics once products near commercialization.
Key Investment Factors
Growth Potential
High potential if Bioheart and Iberis 2nd, Bioheart system, and drug-coated balloon programs reach pivotal trial milestones and move toward commercialization in China; Terumo China collaboration could accelerate clinical validation and access to broader markets.
Profitability Risk
Significant R&D burn with no current profitability; reliance on successful clinical and regulatory milestones; potential dilution risk from future fundraising; competition from established cardiovascular device players; geopolitical and currency risks in China.
Financial Position
Q1 2025 shows a heavy burn with R&D dominating expenses; gross margin is modestly positive, but EBITDA and net income are deeply negative due to operating expenses; balance sheet and cash position are not disclosed in the provided data, limiting assessment of liquidity and runway.
SWOT Analysis
Strengths
Strategic focus on high-potential interventional cardiovascular devices (BRS, RDN).
Collaboration with Terumo China to conduct clinical trials, potentially easing regulatory pathways and accelerating trials.
Proximity to the Chinese market (headquartered in Shanghai), which aligns with near-term regulatory and commercial opportunities.
Weaknesses
Significant operating losses and heavy R&D burn in QQ1 2025 (R&D: 10,045,000 CNY; total operating expenses: 21,047,000 CNY) relative to revenue (10,431,000 CNY).
No disclosed balance sheet or cash-flow data, limiting assessment of liquidity and runway.
Limited or no visible revenue from key products in near term; dependence on successful clinical/regulatory milestones.
Opportunities
China’s growing demand for advanced cardiovascular interventions; potential commercialization of Bioheart/BRS and Iberis 2nd if trials succeed.
Possible monetization through Terumo China collaboration and broader market access if regulatory milestones are achieved.
Expansion of indications (e.g., drug-coated balloons) could broaden addressable market.
Threats
Regulatory delays and clinical trial risks that could postpone commercialization.
Competitive dynamics from established device makers in China and globally.
Funding risk given ongoing losses; potential dilution or debt raising.
Macroeconomic and policy changes affecting healthcare funding and product approvals in China.
investmentOutlookShortTermLongTermInvestmentThemeAtCurrentPrice":"The stock represents a high-risk, high-uncertainty investment reflecting an ongoing R&D-intensive phase with material losses. Near-term focus is on clinical/regulatory milestones and capital efficiency. If milestones are met and cash runway is extended through partnerships or financing, the company could see a discretionary upside tied to eventual commercialization milestones. However, until there is clearer evidence of revenue growth, improving profitability, and a defined liquidity path, investors should expect continued burn and volatility. Long-term value creation hinges on successful commercialization of Bioheart/BRS, Iberis 2nd, and related devices, as well as the ability to raise capital at favorable terms to support continued development. ”}},