Ping An Biomedical Co (PASW) Q4 2025 earnings summary

Executive summary

• Revenue for the year ended September 30, 2025, declined 61% year-over-year to RMB34.1 million (US$4.8 million), with gross profit dropping 82.5% to RMB0.95 million (US$0.13 million) and gross margin falling to 2.8% from 6.2% the prior year.

• Net loss widened significantly to RMB12.8 million (US$1.8 million) from RMB1.3 million in 2024, driven by lower sales, increased credit losses, and higher administrative expenses.

• The company completed its IPO in July 2025, raising $15 million gross, and changed its name to Ping An Biomedical Co., Ltd. in September 2025.

Financial highlights

• Sales of yarns decreased 61.1% to RMB32.4 million; finished garments sales fell 60.3% to RMB1.7 million.

• Gross profit margin for yarns dropped to 1.8% (from 5.6%), while finished garments margin improved to 20.6% (from 17.9%).

• Provision for credit losses surged to RMB9.3 million (US$1.3 million) from RMB0.12 million, reflecting collection challenges.

• General and administrative expenses rose 20.3% to RMB6.0 million (US$0.84 million), mainly due to listing-related costs and higher staff expenses.

• Cash and bank balances at year-end were RMB1.2 million (US$0.16 million), with restricted cash of RMB5.0 million (US$0.7 million).

• Net current liabilities stood at RMB10.3 million (US$1.5 million) as of September 30, 2025.

Outlook and guidance

• Management expects operating and capital expenditures to increase as the company seeks to expand its customer base and strengthen supply chain services.

• The company anticipates that cash from the IPO and operations will be sufficient for at least the next 12 months, but ongoing losses and liquidity risks remain.