EPS of $-0.19 increased by 74.4% from previous year
Net income of -85.42K
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HighTide Therapeutics Inc (2511.HK) QQ4 2024 Results – Heavy R&D Burn with Robust Liquidity, No Revenue Yet
Executive Summary
HighTide Therapeutics delivered a QQ4 2024 quarter with no disclosed revenue, continuing to burn cash as it invests in its metabolic/digestive disease pipeline. R&D investment remained the primary driver of outflows (R&D expenses of 80.775m CNY and G&A of 17.587m CNY, totaling operating expenses of 98.363m CNY). The reported net income of -85.422m CNY and EBITDA of -98.229m CNY reflect the company’s stage as a development-stage biotech prioritizing pipeline progression over near-term profitability. Despite the lack of revenue, the balance sheet remains highly liquid, with 310.75m CNY in cash and equivalents and total liquidity of 490.52m CNY, yielding a net debt position of -232.85m CNY. The current ratio stands at 4.67x, underscoring substantial short-term liquidity to fund ongoing R&D and potential collaborations. Management commentary is not captured in the provided transcript data; as a result, forward-looking targets were not disclosed in QQ4 2024. The valuation metrics reflect a pre-revenue, high-risk, high-burn business, with a PBV of 1.271x and a negative P/E due to the quarterly loss.
Key Performance Indicators
Operating Income
-98.36K
QoQ: 0.00% | YoY:99.96%
Net Income
-85.42K
QoQ: 0.00% | YoY:99.98%
EPS
-0.19
QoQ: 0.00% | YoY:74.41%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed for QQ4 2024; no QoQ/YoY data available for revenue.
EBITDA: -98,228.75; EBITDA margin not meaningful given no revenue.
Operating income: -98,363.00; operating income margin not disclosed.
Net income: -85,421.50; net income per share (EPS): -0.1900; diluted EPS: -0.1900.
Financial Highlights
Overview of QQ4 2024 financial metrics (all amounts in CNY thousands unless noted otherwise):
- Revenue: Not disclosed for QQ4 2024; no QoQ/YoY data available for revenue.
- Operating expenses: 98,363.00 (R&D 80,775.00; G&A 17,587.00).
- EBITDA: -98,228.75; EBITDA margin not meaningful given no revenue.
- Operating income: -98,363.00; operating income margin not disclosed.
- Net income: -85,421.50; net income per share (EPS): -0.1900; diluted EPS: -0.1900.
- Weighted average shares outstanding: 452,080,000 (diluted 452,078,000).
- YoY QoQ metrics (from earnings metrics): Operating income YoY +99.96%, QoQ 0.00%; Net income YoY +99.98%, QoQ 0.00%; EPS YoY +74.41%, QoQ 0.00%.
- Cash flow: Net cash provided by operating activities -57,480.00; Capex -2,117.00; Free cash flow -59,597.00; Other investing activities +40,874.00; Net cash used in investing activities -38,757.00.
- Balance sheet liquidity: Cash and cash equivalents 310,750.00; Short-term investments 179,772.00; Cash and short-term investments 490,522.00; Total current assets 513,371.00; Total assets 559,931.00; Total liabilities 135,763.00; Total stockholders’ equity 424,168.00; Net debt -232,845.00 (negative net debt).
- Key liquidity ratios: Current ratio 4.67; Quick ratio 4.67; Debt to equity 0.184; Price-to-book 1.271; Enterprise value multiple -3,119.14 (negative; reflects net cash position).
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-98.36K
99.96%
0.00%
Net Income
-85.42K
99.98%
0.00%
EPS
-0.19
74.41%
0.00%
Key Financial Ratios
currentRatio
4.67
returnOnAssets
-0.02%
returnOnEquity
-0.02%
debtEquityRatio
0.18
priceToBookRatio
1.27
priceEarningsRatio
-1578.16
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript provided in the supplied data. Consequently, there are no direct management quotes or thematic highlights to extract. The analysis below notes the absence of transcript data and relies on the disclosed financials and balance sheet metrics.
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Forward Guidance
No explicit forward guidance was disclosed for QQ4 2024 in the provided data. Management commentary on the pipeline and strategic milestones is not available here. Based on the disclosed numbers and typical biotech dynamics, investors should monitor: (i) upcoming Phase I/II readouts and clinical milestones for HTD1801 and other HTD programs (HTD4010, HTD1804, HTD1805, HTD2802); (ii) any potential licensing, collaboration, or co-development deals that could provide non-dilutive or dilutive funding; (iii) regulatory progress and timelines for lead candidates; (iv) capital expenditure plans and operating burn pace given no current revenue. With liquidity of ~490.5m CNY and a quarterly cash burn (operating) of ~57.5m CNY, the approximate runway is ~8–9 quarters under current assumptions, suggesting a degree of strategic flexibility to pursue milestones without immediate fund-raising pressure.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
2511.HK Focus
0.00%
0.00%
-0.02%
-1,578.16%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the current QQ4 2024 data, HighTide Therapeutics presents a high-risk, high-potential investment. The balance sheet is robust and provides substantial runway to advance its pipeline, with no revenue yet and persistent operating losses. The key to upside lies in the timely generation of positive clinical data for HTD1801 and other HTD programs, followed by strategic partnerships or licensing deals that unlock value without requiring immediate profitability. Investors should monitor upcoming trial milestones, data readouts, and any announced collaboration activity. The current liquidity position suggests the company can sustain multiple quarters of pre-revenue activity, reducing near-term dilution pressure but elongating the risk-to-reward horizon. In a benchmark context, the lack of disclosed revenue and direct peer comparisons constrains valuation relative to revenue-generating biotech peers; the stock’s negative earnings multiple reflects a developmental-stage status rather than a fundamental business failure. Strategic milestones and collaboration catalysts will be critical drivers of any re-rating.
Key Investment Factors
Growth Potential
Pipeline-driven growth potential anchored by HTD1801 (gut-liver anti-inflammatory metabolic modulator) and other HTD candidates targeting metabolic and inflammatory disorders. The multi-indication approach could unlock multiple value inflection points pending successful clinical data and potential partnerships.
Profitability Risk
Primary risk is clinical/efficacy failure or delays in pivotal data, given no current revenue. Regulatory risk, funding risk, competition in metabolic/digestive disease space, and dependence on successful partnerships or licensing deals are key downsides. Negative earnings and a long runway to profitability heighten sensitivity to trial outcomes and capital markets.
Financial Position
Strong liquidity with cash and short-term investments of ~490.5m CNY and a negative net debt position (~-232.8m CNY), providing a substantial runway to advance clinical programs. Moderate leverage (long-term debt ~25.49m CNY; short-term debt ~52.42m CNY) and solid equity base support ongoing R&D funding while the company remains pre-revenue.
SWOT Analysis
Strengths
Robust liquidity: cash and equivalents 310.75m CNY; total liquidity including short-term investments 490.52m CNY
Negative net debt: -232.85m CNY, providing financial flexibility for pipeline progression
Strong balance sheet metrics: current ratio 4.67x and quick/acid-test like liquidity cushion
Significant R&D focus aligned with long-term value creation through HTD1801 and other HTD programs
Diversified cash management with sizable non-operating cash inflows from investing activities (positive 40.87m CNY in 'other investing activities')
Weaknesses
No revenue disclosed in QQ4 2024; business model relies on financing until clinical milestones generate near-term revenue
Meaningful quarterly losses (net income -85.42m CNY; EBITDA -98.23m CNY) and high ongoing R&D burn
Execution risk and long path to profitability typical of pre-revenue biotech peers
Limited public comparables (per dataset) complicates relative benchmarking
Opportunities
HTD1801 and HTD portfolio could unlock multiple indications, potentially broadening addressable market
Potential strategic partnerships/licensing to monetize pipeline without full development risk borne by the company
Opportunity to leverage China/Global biotech collaborations, given Shenzhen base and global unmet medical needs in metabolic diseases
Threats
Clinical trial failures or delays could erode value and funding options
Regulatory hurdles and potential delays in data readouts
Competitive landscape in metabolic and inflammatory diseases with fast-moving biotech players
Market risk and funding environment for pre-revenue biotech in a volatile capital market