Executive Summary
Zhaoke Ophthalmology Limited delivered a revenue upsurge in QQ2 2025, increasing to 15.803 million CNY, a year-over-year rise of approximately 61.6% supported by early commercialization activity and ongoing pipeline development. Gross profit rose to 8.467 million CNY with a gross margin of 53.58%, underscoring a cost structure favorable at the gross level given the early-stage revenue mix. However, the quarter posted a substantial net loss of 116.623 million CNY and an operating loss of 158.563 million CNY, dominated by a heavy research and development (R&D) outlay of 113.05 million CNY and elevated selling, general, and administrative (SG&A) expenses. EBITDA negative 140.609 million CNY and an EBITDA margin of -8.90% reflect the company’s ongoing investment phase aimed at building a robust ophthalmology portfolio rather than near-term profitability.
Liquidity remains a strength despite the burn, with a current ratio of 4.40, quick ratio of 4.36, and cash ratio of 3.14, plus cash per share of 1.93 CNY. Debt remains modest (debt ratio 0.131, debt/equity 0.159), implying a resilient balance sheet to fund pipeline advancement. Valuation metrics, however, imply high growth expectations: price-to-sales around 82x and a negative enterprise value multiple of -3.67x, signaling that the market is pricing substantial future revenue potential tied to the company’s ophthalmology pipeline. The near-term investment thesis hinges on successful progression of clinical programs, regulatory milestones, and potential partnerships or licensing arrangements that could translate into meaningful future cash flows. Absent near-term profitability, the stock remains contingent on execution of its R&D-to-market transition.
Key Performance Indicators
Key Insights
Revenue: 15,803,000 CNY in QQ2 2025, up ~61.63% YoY; QoQ data inconsistencies observed in the provided YoY/QoQ table, but quarterly figures show a clear sequential increase (Q1 2025 revenue: 7,901,500 CNY; Q2 2025 revenue: 15,803,000 CNY).
Gross Profit: 8,467,000 CNY; Gross Margin: 53.58% (0.536).
Operating Income: -158,563,000 CNY; Operating Margin: -10.03%.
EBITDA: -140,609,000 CNY; EBITDA Margin: -8.90%.
Net Income: -116,623,000 CNY; Net Margin: -7.38%.
EPS (diluted): -0.22 CNY for QQ2 2025; ...
Financial Highlights
Revenue: 15,803,000 CNY in QQ2 2025, up ~61.63% YoY; QoQ data inconsistencies observed in the provided YoY/QoQ table, but quarterly figures show a clear sequential increase (Q1 2025 revenue: 7,901,500 CNY; Q2 2025 revenue: 15,803,000 CNY).
Gross Profit: 8,467,000 CNY; Gross Margin: 53.58% (0.536).
Operating Income: -158,563,000 CNY; Operating Margin: -10.03%.
EBITDA: -140,609,000 CNY; EBITDA Margin: -8.90%.
Net Income: -116,623,000 CNY; Net Margin: -7.38%.
EPS (diluted): -0.22 CNY for QQ2 2025; Weighted average shares outstanding: 546,141,238.
R&D Expenses: 113,050,000 CNY; SG&A Expenses (General + Selling): 53,980,000 CNY; Total operating expenses: 167,030,000 CNY; Cost of Revenue: 7,336,000 CNY; Gross Profit less operating expenses results in the negative bottom line.
Liquidity: Current ratio 4.40; Quick ratio 4.36; Cash ratio 3.14; Cash per share 1.93. Receivables turnover 3.69; Inventory turnover 0.538; Asset turnover 0.00764; Debt ratio 0.131; Debt/equity 0.159; Price-to-book ~0.76; Price-to-sales ~81.97; Enterprise value multiple ~-3.67.
Cash Flow: Operating cash flow per share 0; Free cash flow per share 0; Net cash flow indicators not disclosed in detail within the provided data.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
15.80M |
61.63% |
0.00% |
| Gross Profit |
8.47M |
89.06% |
0.00% |
| Operating Income |
-158.56M |
-39.10% |
0.00% |
| Net Income |
-116.62M |
-44.25% |
0.00% |
| EPS |
-0.22 |
-46.67% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-1003%
Management Commentary
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Forward Guidance
No explicit forward guidance was provided in the supplied data. Given the current quarterly trajectory, the company’s near-term outlook depends on: 1) progression of the ophthalmology pipeline (e.g., Phase I/II trials in dry eye, AMD, DME, glaucoma, myopia indications); 2) regulatory milestones and potential approvals in China; 3) strategic partnerships or licensing arrangements to monetize late-stage assets; 4) management’s ability to maintain liquidity through efficient cash burn or additional financing at favorable terms. Expected milestones to watch include any trial readouts, pre-IND/CMC updates, or partner discussions that could de-risk the pipeline, as well as any announced cost-containment measures. Investors should monitor cash burn rate relative to the current liquidity position and any equity or debt financings that could dilute existing shareholders. In a base case, continued investment in R&D remains necessary to unlock future revenue, but a lack of near-term profitability implies a continued sensitivity to external funding conditions and equity markets.