Executive Summary
Zhaoke Ophthalmology reported QQ3 2024 revenue of 9.78 million CNY, representing a substantial year-over-year rise of 162.6% but a sequential decline of 60.7% from the prior quarter. The company continues to invest aggressively in R&D, with R&D expenses of 56.95 million CNY, producing a steep operating loss of 113.996 million CNY and an EBITDA loss of 77.906 million CNY. Net income registered a loss of 80.845 million CNY, with EPS of -0.15 on 546.1 million weighted average shares. The top-line expansion occurred against a backdrop of a heavy R&D pipeline push and ongoing clinical development efforts, underscored by a sizable other income of 33.15 million CNY that helped partially offset operating losses. The balance sheet remains liquidity-rich, featuring 1.121 billion CNY of cash and equivalents and an aggregate net cash position of approximately -882.4 million CNY despite total liabilities of 343.4 million CNY. The firm exhibits strong liquidity metrics (current ratio 5.16; cash ratio 3.58) and a conservative debt profile (total debt 238.6 million CNY). However, profitability hinges on future pipeline milestones, potential regulatory approvals, and partnerships that could unlock near- to medium-term commercialization opportunities. Investors should monitor progress in lead ophthalmology programs, the efficiency of R&D spend, and any strategic financing actions that may be required to sustain growth.
Key Performance Indicators
QoQ: -60.71% | YoY:162.62%
QoQ: -79.09% | YoY:118.84%
QoQ: -113.76% | YoY:-18.21%
QoQ: -113.31% | YoY:-6.90%
QoQ: -114.29% | YoY:-7.14%
Key Insights
Revenue and margins: QQ3 2024 revenue 9.78m CNY, gross profit 4.48m CNY with a gross margin of 45.8%. YoY revenue growth of 162.6% contrasts with QoQ revenue decline of 60.7%. Profitability: EBITDA -77.91m CNY; operating income -113.996m CNY; pre-tax and net income -80.845m CNY (net margin -8.27%). EPS -0.15. Drivers and cost structure: R&D expenses 56.95m CNY (major driver of operating loss), G&A 19.76m CNY, selling & admin 37.29m CNY, other expenses 24.23m CNY. Cash flow: operating...
Financial Highlights
Revenue and margins: QQ3 2024 revenue 9.78m CNY, gross profit 4.48m CNY with a gross margin of 45.8%. YoY revenue growth of 162.6% contrasts with QoQ revenue decline of 60.7%. Profitability: EBITDA -77.91m CNY; operating income -113.996m CNY; pre-tax and net income -80.845m CNY (net margin -8.27%). EPS -0.15. Drivers and cost structure: R&D expenses 56.95m CNY (major driver of operating loss), G&A 19.76m CNY, selling & admin 37.29m CNY, other expenses 24.23m CNY. Cash flow: operating cash flow -48.655m CNY; capex -1.595m CNY; free cash flow -50.251m CNY. Balance sheet: cash and cash equivalents 1.121b CNY; total assets 2.244b CNY; total liabilities 343.44m CNY; total debt 238.59m CNY; net debt -882.42m CNY; equity 1.900b CNY. Liquidity and efficiency: current ratio 5.16; quick ratio 5.11; cash ratio 3.58; inventory days 253.08; receivables days 12.69; asset turnover 0.00436; fixed asset turnover 0.0509; P/B 0.399; P/S 77.62; EV multiple 1.585.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.78M |
162.62% |
-60.71% |
| Gross Profit |
4.48M |
118.84% |
-79.09% |
| Operating Income |
-114.00M |
-18.21% |
-113.76% |
| Net Income |
-80.85M |
-6.90% |
-113.31% |
| EPS |
-0.15 |
-7.14% |
-114.29% |
Key Financial Ratios
operatingProfitMargin
-1166%
Management Commentary
Transcript data for QQ3 2024 were not provided in the source materials. No earnings call quotes or management remarks are available in the given dataset. Implication: absent direct management commentary, the analysis relies on disclosed financials and published four-quarter trajectory to interpret near-term risks and catalysts.
Forward Guidance
No explicit forward guidance was disclosed in the QQ3 2024 financials. In absence of formal targets, an investor-facing view should rely on pipeline milestones, regulatory timelines, and potential partnership or licensing opportunities to translate R&D spend into future revenue. Key monitoring points include: (1) clinical trial progression and data readouts for lead ophthalmology assets; (2) regulatory submissions/decisions in PRC and potential international markets; (3) timing and structure of potential collaborations or out-licensing deals; (4) management commentary on burn rate normalization, if any, and capital allocation decisions given a strong cash position.