KUBR's Q3 Net Income Plunges 98% Amidst Revenue Drop

TL;DR

**KUBR's Q3 numbers are a disaster, but the nine-month growth and strategic pivot with Gongfa could be a long-term play if they execute flawlessly.**

AI Summary

Kuber Resources Corp (KUBR) reported a significant decline in net income for the three months ended September 30, 2025, plummeting to $9,721 from $536,731 in the prior year, representing a 98.19% decrease. Revenues for the quarter also fell sharply to $775,247 from $3,278,159, a 76.3% reduction. However, for the nine months ended September 30, 2025, net income increased to $3,097,101 from $1,493,682, a 107.35% rise, despite a slight revenue decrease to $10,270,540 from $10,708,435, a 4.09% dip. The company's total assets grew to $31,315,299 as of September 30, 2025, from $27,798,691 at December 31, 2024. Key business changes include the acquisition of Gongfa Materials (Guangdong) New Materials Technology Co., Limited on January 14, 2025, and the disposal of its wholly-owned subsidiary, Asia Image, on September 25, 2024, for approximately $500,760. Risks include the availability of working capital, competitive market pressures, and the efficient operation of computer and communication systems. The strategic outlook involves expanding into manufacturing, sales, and distribution of wood panels, alongside formaldehyde treatment services, following the Gongfa acquisition.

Why It Matters

KUBR's dramatic Q3 net income and revenue decline signals potential operational challenges or a significant shift in business focus, which could impact investor confidence and future stock performance. The acquisition of Gongfa Materials and the disposal of Asia Image indicate a strategic pivot towards wood panel manufacturing and formaldehyde treatment, moving away from previous commodities trading. This shift could introduce new competitive dynamics against established players in the materials sector. Employees at the acquired Gongfa entity may see changes in corporate culture or operational directives, while customers could benefit from KUBR's expanded product offerings or face integration-related disruptions. The broader market will watch if KUBR can successfully integrate Gongfa and leverage its new business lines to reverse the recent quarterly downturn.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant 98.19% drop in net income for the three months ended September 30, 2025, to $9,721, coupled with a 76.3% revenue decrease to $775,247 for the same period. While the nine-month net income increased by 107.35% to $3,097,101, the quarterly performance raises concerns about recent operational stability and the impact of the new Gongfa acquisition, which is still being evaluated for its financial impact.

Analyst Insight

Investors should exercise caution and closely monitor KUBR's next earnings report for signs of successful integration of Gongfa Materials and a reversal of the Q3 revenue and net income decline. Await further clarity on the financial impact of the Gongfa acquisition and its contribution to future profitability before making significant investment decisions.

Financial Highlights

debt To Equity

N/A

revenue

$10,270,540

operating Margin

N/A

total Assets

$31,315,299

total Debt

N/A

net Income

$3,097,101

eps

N/A

gross Margin

N/A

cash Position

$38,654

revenue Growth

-4.09%

Revenue Breakdown

Key Numbers

• $9,721 — Net Income (Q3 2025) (98.19% decrease from Q3 2024)
• $775,247 — Revenues (Q3 2025) (76.3% decrease from Q3 2024)
• $3,097,101 — Net Income (YTD Sept 2025) (107.35% increase from YTD Sept 2024)
• $10,270,540 — Revenues (YTD Sept 2025) (4.09% decrease from YTD Sept 2024)
• $31,315,299 — Total Assets (Sept 30, 2025) (Increased from $27,798,691 at Dec 31, 2024)
• 157,556,723 — Common Shares Outstanding (As of November 19, 2025)
• $500,760 — Proceeds from Asia Image disposal (On September 25, 2024)
• $5,770,306 — Advances to suppliers (Significant increase from $0 at Dec 31, 2024)
• $5,576,098 — Accounts receivable, net (Decrease from $9,666,978 at Dec 31, 2024)
• $4,070,377 — Inventory, net (Increase from $1,487,709 at Dec 31, 2024)

Key Players & Entities

• Kuber Resources Corp (company) — registrant
• Gongfa Materials (Guangdong) New Materials Technology Co., Limited (company) — acquired subsidiary
• Asia Image Investment Limited (company) — disposed subsidiary
• Raymond Fu (person) — sole officer and director
• Storming Dragon Limited (company) — majority shareholder of KUBR (67%)
• $9,721 (dollar_amount) — net income for Q3 2025
• $536,731 (dollar_amount) — net income for Q3 2024
• $775,247 (dollar_amount) — revenues for Q3 2025
• $3,278,159 (dollar_amount) — revenues for Q3 2024
• $3,097,101 (dollar_amount) — net income for nine months ended Sept 30, 2025

FAQ

Risk Factors

• Working Capital Availability [high — financial]: The company's ability to secure sufficient working capital is a key risk. This is underscored by the significant increase in 'Advances to suppliers' to $5,770,306 from $0 at year-end 2024, potentially indicating a strain on cash flow or strategic shifts in procurement.
• Competitive Market Pressures [medium — market]: Kuber Resources operates in a competitive market. The sharp decline in Q3 2025 revenue by 76.3% to $775,247 suggests that market pressures may be impacting sales volume or pricing power.
• System Efficiency [medium — operational]: The efficient operation of computer and communication systems is identified as a risk. Disruptions or inefficiencies in these systems could impact the company's ability to conduct business, especially as it expands into new areas like manufacturing.
• Inventory Management [medium — financial]: Inventory levels have increased substantially to $4,070,377 from $1,487,709 at year-end 2024. While this could support future sales, it also ties up capital and carries risks of obsolescence or write-downs if not managed effectively.
• Accounts Receivable Management [low — financial]: Accounts receivable have decreased to $5,576,098 from $9,666,978 at year-end 2024. While a reduction can be positive, a significant drop might also signal slower sales or challenges in collecting outstanding amounts.

Industry Context

Kuber Resources operates in sectors that appear to be undergoing transformation, with a recent strategic pivot towards manufacturing and new materials, specifically wood panels. This move suggests an attempt to capitalize on demand in construction or related industries. The company's prior involvement in commodities trading and its recent acquisition indicate a strategy to diversify revenue streams and potentially capture higher margins through value-added manufacturing and services.

Regulatory Implications

As a publicly traded company, Kuber Resources must adhere to SEC reporting requirements, including timely filing of 10-Q and 10-K reports. The company's history of restructuring and acquisitions may also attract scrutiny regarding compliance with corporate governance and financial reporting standards.

What Investors Should Do

1. Monitor Q4 2025 and FY 2025 results closely.
2. Analyze the integration and performance of Gongfa Materials.
3. Evaluate working capital management and cash flow trends.
4. Assess the impact of competitive pressures on revenue.

Key Dates

• 2024-09-25: Disposal of Asia Image subsidiary — Generated $500,760 in cash proceeds and streamlined operations by divesting a non-core asset.
• 2025-01-14: Acquisition of Gongfa Materials (Guangdong) New Materials Technology Co., Limited — Marks a strategic expansion into manufacturing, sales, and distribution of wood panels and formaldehyde treatment services, diversifying the company's business model.
• 2025-09-30: End of Q3 2025 — Reported significant drop in quarterly net income ($9,721) and revenue ($775,247), contrasting with strong year-to-date performance.
• 2025-11-19: Common Shares Outstanding — Company had 157,556,723 common shares outstanding, providing context for per-share metrics if available.

Glossary

Advances to suppliers

Payments made to suppliers before the delivery of goods or services. (A significant increase to $5,770,306 from $0 indicates a potential shift in payment terms or a strategic move to secure supply chains, impacting working capital.)

Gongfa Materials (Guangdong) New Materials Technology Co., Limited

A newly acquired subsidiary focused on manufacturing, sales, and distribution of wood panels and formaldehyde treatment services. (Represents a key strategic acquisition aimed at diversifying Kuber Resources' business operations beyond its previous scope.)

Asia Image

A wholly-owned subsidiary that was disposed of on September 25, 2024. (Its disposal generated $500,760 and signifies a restructuring or divestment of certain business lines.)

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company and its subsidiaries. (These statements provide the overall financial picture of Kuber Resources Corporation and its controlled entities.)

Unaudited

Financial statements that have not been reviewed or audited by an independent accounting firm. (Indicates that the presented financial information is preliminary and subject to potential adjustments.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Kuber Resources Corp shows a mixed financial picture. While year-to-date net income has surged by 107.35% to $3,097,101, driven by factors not fully detailed but potentially related to prior period activities or the Gongfa acquisition's early impact, quarterly performance has deteriorated significantly. Q3 2025 revenue plummeted by 76.3% to $775,247, and net income dropped by 98.19% to $9,721, indicating substantial headwinds in the most recent quarter. Total assets have grown to $31,315,299, reflecting the company's expansion, but key current asset categories like cash have decreased, while inventory and supplier advances have risen sharply.

Key Financial Figures

• $0.001 — The number of shares of common stock, $0.001 par value, issued and outstanding as of

Filing Documents

• kr11725010q.htm (10-Q) — 1531KB
• ex31_1.htm (EX-31.1) — 9KB
• ex31_2.htm (EX-31.2) — 9KB
• ex32_1.htm (EX-32.1) — 4KB
• ex32_2.htm (EX-32.2) — 4KB
• 0001214659-25-016956.txt ( ) — 8341KB
• kubr-20250930.xsd (EX-101.SCH) — 49KB
• kubr-20250930_cal.xml (EX-101.CAL) — 59KB
• kubr-20250930_def.xml (EX-101.DEF) — 214KB
• kubr-20250930_lab.xml (EX-101.LAB) — 297KB
• kubr-20250930_pre.xml (EX-101.PRE) — 313KB
• kr11725010q_htm.xml (XML) — 1935KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION: Item 1. Consolidated Financial Statements (Unaudited) 4 Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 5 Consolidated Statements of Operations for the Three and Nine months ended September 30, 2025 and 2024 (Unaudited) 6 Consolidated Statements of Changes in Stockholders' Deficit for the Nine months ended September 30, 2025 and 2024 (Unaudited) 7 Consolidated Statements of Cash Flows for the Nine months ended September 30, 2025 and 2024 (Unaudited) 8 Notes to the Unaudited Consolidated Financial Statements (Unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 31

OTHER INFORMATION

PART II OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3. Defaults Upon Senior Securities 32 Item 4. Mine Safety Disclosures 32 Item 5. Other Information 32 Item 6. Exhibits 33

Signatures

Signatures 34 3 PART 1 – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements The accompanying interim consolidated financial statements of KUBER RESOURCES CORPORATION . ("the Company", "we", "us" or "our"), have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted principles have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements should be read in conjunction with the company's latest annual financial statements. In the opinion of management, the consolidated financial statements contain all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented. 4 Kuber Resources Corporation Condensed Consolidated Balance Sheets As of September 30, 2025 and December 31, 2024 Unaudited September 30, December 31, 2025 2024 Recast (a) ASSETS Current Assets Cash and cash equivalents $ 38,654 $ 155,861 Accounts receivable, net 5,576,098 9,666,978 Inventory, net 4,070,377 1,487,709 Advances to suppliers 5,770,306 - Due from related parties 340,409 46,131 Other receivables and current assets 141,351 148,494 Total Current Assets 15,937,195 11,505,173 Non-Current Assets Property, plant and equipment, net 14,021,000 14,625,714 Intangible assets, net 1,311,616 1,594,993 Other non-current assets 3,711 3,620 Operating lease right of use asset, net 41,777 69,191 Total Non-Current Assets 15,378,104 16,293,518 Total Assets 31,315,299 27,798,691 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable 4,157,513 4,875,600 Other payables and accrued expenses 452,512 17,089 Short-term loans 155,754 41,107 Due to related par

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 Unaudited Note 1 – Organization and Nature of Business Kuber Resources Corporation ("the Company" or "KUBR") was incorporated in the State of Nevada on January 29, 1998. Since inception, the Company has undergone several name changes, including Weston International Development Corporation in 1998, China World Trade Corporation in 2000, and Uonlive Corporation in 2008. In 2015, the Company ceased its original operations and fully impaired its assets. In 2018, Small Cap Compliance, LLC was appointed custodian of the Company, and revived the Company in 2019 with the appointment of Raymond Fu as its sole officer and director. In 2020, the Company acquired Asia Image Investment Limited via a reverse merger. In 2022, the Company acquired Kuber Resources (Hong Kong) Limited to expand beyond commodities trading. On December 8, 2022, the Company changed its name to its current name Kuber Resources Corporation and its ticker symbol from "UOLI" to "KUBR," effective December 12, 2022, without affecting shareholders' rights or requiring stock certificate exchanges. On September 18, 2023, the Company acquired all shares of Grayscale Investment (Asia) Limited ("Grayscale HK") from unrelated parties for two Hong Kong dollars (HKD 2.00) per share, along with its subsidiary. Consequently, Grayscale HK became a fully-owned subsidiary of the Company. Grayscale HK was established in Hong Kong on September 31, 2021, which has not commenced any operations since its inception. Grayscale Investment (ShenZhen) Limited ("Grayscale WOFE") was established on November 1, 2021, as a wholly foreign-owned entity in the People's Republic of China ("PRC"). Grayscale WOFE is wholly owned by Grayscale HK. On October 17, 2023, the Company through its wholly owned subsidiary, incorporated Kuber Resources (Guangdong) Co., Ltd. ("Kuber Guangdong") as a wholly owned subsidiary of Graysacle WOFE in Guan

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