Yubo Biotech's Sales Vanish, Losses Narrow Amidst Asset Decline

TL;DR

**YBGJ is a zombie company with zero sales, relying on related party cash to barely stay afloat; avoid at all costs.**

AI Summary

Yubo International Biotech Ltd (YBGJ) reported a net loss of $592,136 for the six months ended June 30, 2025, a significant improvement from the $1,007,853 net loss in the same period of 2024. Revenue from sales of products and services plummeted to $0 for the six months ended June 30, 2025, down from $3,488 in the prior year, indicating a complete halt in product sales. Total operating expenses decreased by 33% to $592,094 in the first half of 2025, compared to $882,518 in 2024, primarily due to reduced occupancy costs and the absence of a $127,895 loss on obsolete inventory seen in 2024. The company's total assets declined to $1,051,568 as of June 30, 2025, from $1,534,832 at December 31, 2024, driven by decreases in property and equipment, and operating lease right-of-use assets. Cash increased slightly to $10,416 from $7,015 at the end of 2024, largely supported by $473,919 in advances from related parties. The company continues to operate through a Variable Interest Entity (VIE) structure in China, which carries inherent regulatory risks. The accumulated deficit expanded to $7,326,775 by June 30, 2025, from $6,660,811 at December 31, 2024, highlighting ongoing financial challenges.

Why It Matters

For investors, Yubo International Biotech's complete lack of revenue from product sales in the first half of 2025 is a critical red flag, signaling a potential cessation of core business operations and raising questions about future viability. The reliance on related party advances for cash flow, totaling $473,919, suggests a lack of independent funding and could indicate financial distress, impacting employee stability and customer confidence. The significant decline in total assets, from $1,534,832 to $1,051,568, further weakens the company's balance sheet and competitive position in the biotech market, especially given the inherent risks of its VIE structure in China. This performance could deter new investors and potentially lead to further stock price depreciation.

Risk Assessment

Risk Level: high — The company reported $0 in revenue from sales of products and services for the six months ended June 30, 2025, a stark decline from $3,488 in the prior year, indicating a complete lack of operational income. Furthermore, the accumulated deficit increased to $7,326,775 by June 30, 2025, from $6,660,811 at December 31, 2024, demonstrating persistent unprofitability and a deteriorating financial position. The company's reliance on a VIE structure in China also presents significant regulatory risks, as these arrangements have not been tested in court and could be disallowed by PRC authorities.

Analyst Insight

Investors should immediately divest any holdings in YBGJ. The complete absence of revenue, coupled with an expanding accumulated deficit and high operational risks associated with its VIE structure, indicates severe financial instability and a lack of viable business operations. This company is a speculative investment with a high probability of further value erosion.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$1,051,568

total Debt

N/A

net Income

-$592,136

eps

N/A

gross Margin

N/A

cash Position

$10,416

revenue Growth

-100.0%

Revenue Breakdown

Key Numbers

• $0 — Revenue from sales of products and services (for the six months ended June 30, 2025, down from $3,488 in 2024, indicating a complete halt in sales.)
• $592,136 — Net loss (for the six months ended June 30, 2025, an improvement from $1,007,853 in 2024, but still substantial.)
• $1,051,568 — Total Assets (as of June 30, 2025, a decrease from $1,534,832 at December 31, 2024, reflecting asset erosion.)
• $7,326,775 — Accumulated Deficit (as of June 30, 2025, an increase from $6,660,811 at December 31, 2024, indicating ongoing losses.)
• $10,416 — Cash (as of June 30, 2025, a slight increase from $7,015 at December 31, 2024, primarily due to related party advances.)
• $473,919 — Advances from related parties (net) (cash provided by financing activities for the six months ended June 30, 2025, crucial for liquidity.)
• 33% — Decrease in Total Operating Expenses (from $882,518 in 2024 to $592,094 in 2025, contributing to the narrowed net loss.)

Key Players & Entities

• Yubo International Biotech Ltd (company) — registrant and U.S. holding company
• Platinum International Biotech Co., Ltd. (company) — wholly-owned subsidiary of Yubo International Biotech Ltd
• Yubo International Biotech (Beijing) Limited (company) — Variable Interest Entity (VIE) operating in China
• $592,136 (dollar_amount) — net loss for the six months ended June 30, 2025
• $1,007,853 (dollar_amount) — net loss for the six months ended June 30, 2024
• $0 (dollar_amount) — revenue from sales of products and services for the six months ended June 30, 2025
• $3,488 (dollar_amount) — revenue from sales of products and services for the six months ended June 30, 2024
• $10,416 (dollar_amount) — cash balance as of June 30, 2025
• $7,015 (dollar_amount) — cash balance as of December 31, 2024
• $7,326,775 (dollar_amount) — accumulated deficit as of June 30, 2025

FAQ

Risk Factors

• Variable Interest Entity (VIE) Structure Risks [high — regulatory]: The company operates through a VIE structure in China, which involves contractual arrangements rather than direct ownership. This structure is subject to significant regulatory risks and uncertainties in China, as Chinese authorities may challenge or change the legal framework governing VIEs, potentially impacting the company's ability to control and consolidate the VIE's financial results.
• Persistent Accumulated Deficit [high — financial]: The company's accumulated deficit increased to $7,326,775 as of June 30, 2025, from $6,660,811 at December 31, 2024. This ongoing expansion of the deficit highlights persistent unprofitability and raises concerns about the company's long-term financial viability.
• Dependence on Related Party Advances [medium — financial]: The company's cash position of $10,416 as of June 30, 2025, is heavily reliant on $473,919 in advances from related parties. This dependence indicates a lack of internally generated cash flow and exposes the company to risks associated with the terms and availability of such financing.
• Cessation of Product Sales [high — operational]: Revenue from product sales dropped to $0 for the six months ended June 30, 2025, from $3,488 in the same period of 2024. This complete halt in sales suggests significant operational challenges or a strategic shift away from product commercialization, with no clear indication of future revenue generation from this segment.
• Declining Asset Base [medium — financial]: Total assets decreased to $1,051,568 as of June 30, 2025, from $1,534,832 at December 31, 2024. This 31.5% decline, driven by reductions in property and equipment and operating lease right-of-use assets, reflects a shrinking operational footprint and potential asset erosion.

Industry Context

The biotechnology sector is characterized by high research and development costs, long product development cycles, and significant regulatory hurdles. Companies often rely on substantial funding to advance their pipelines. The current environment may favor companies with strong clinical trial progress and clear paths to commercialization, while those with stalled product development or revenue generation face increased scrutiny.

Regulatory Implications

The company's reliance on a VIE structure in China presents substantial regulatory risks. Changes in Chinese regulations regarding VIEs or foreign investment in specific sectors could materially impact the company's operations, control, and financial reporting. Compliance with evolving international and Chinese regulatory standards is critical.

What Investors Should Do

1. Scrutinize the long-term strategy for revenue generation given the complete halt in product sales.
2. Assess the sustainability of operations given the increasing accumulated deficit and reliance on related party financing.
3. Evaluate the potential impact of Chinese regulatory changes on the VIE structure and the company's ability to operate.
4. Seek clarity on the future plans for asset utilization and potential disposal of underperforming assets.

Glossary

Variable Interest Entity (VIE)

A legal structure used by foreign companies to invest in Chinese industries that are restricted or prohibited for foreign investment. It involves contractual agreements that give the foreign investor control over a Chinese company and the right to its economic benefits, without direct ownership. (Yubo International Biotech Ltd operates through a VIE structure in China, which exposes it to significant regulatory risks and uncertainties.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income. It represents the total losses incurred since the company's inception. (Yubo International Biotech Ltd's accumulated deficit has increased to $7,326,775, indicating ongoing financial challenges and a history of losses.)

Operating lease right-of-use asset

An asset recognized under accounting standards for leases, representing the lessee's right to use an underlying asset for the lease term. (A significant decrease in this asset ($184,943 as of June 30, 2025, down from $478,765 at Dec 31, 2024) contributed to the overall decline in total assets.)

Advances from related parties

Funds provided to the company by entities or individuals that have a close relationship with the company, such as parent companies, subsidiaries, or key management personnel. (These advances ($473,919) were a primary source of cash for the company, highlighting its reliance on related party financing for liquidity.)

Reverse Merger

A transaction where a private company acquires a public shell company, thereby becoming a publicly traded company without going through the traditional IPO process. (Yubo International Biotech Ltd (formerly Magna-Lab Inc.) acquired Platinum International Biotech Co. Ltd. via a reverse merger in January 2021.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, Yubo International Biotech Ltd. reported a net loss of $592,136, an improvement from $1,007,853 in the prior year, primarily due to a 33% reduction in operating expenses. However, revenue from product sales has completely ceased, dropping to $0 from $3,488. Total assets have declined significantly by 31.5% to $1,051,568, while the accumulated deficit has grown to $7,326,775. The company's liquidity remains precarious, heavily dependent on $473,919 in advances from related parties.

Key Financial Figures

• $0.001 — August 13, 2025 Class A Common Stock, $0.001 par value 170,416,343 Class B Common

Filing Documents

• yubo_10q.htm (10-Q) — 1106KB
• yubo_ex311.htm (EX-31.1) — 10KB
• yubo_ex312.htm (EX-31.2) — 13KB
• yubo_ex321.htm (EX-32.1) — 4KB
• yubo_ex322.htm (EX-32.2) — 4KB
• yubo_10qimg2.jpg (GRAPHIC) — 31KB
• yubo_10qimg1.jpg (GRAPHIC) — 55KB
• 0001640334-25-001439.txt ( ) — 5803KB
• yubo-20250630.xsd (EX-101.SCH) — 59KB
• yubo-20250630_lab.xml (EX-101.LAB) — 288KB
• yubo-20250630_cal.xml (EX-101.CAL) — 52KB
• yubo-20250630_pre.xml (EX-101.PRE) — 261KB
• yubo-20250630_def.xml (EX-101.DEF) — 167KB
• yubo_10q_htm.xml (XML) — 973KB

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements F-5 Item 2. – Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Item 3. – Quantitative and Qualitative Disclosures about Market Risk 18 Item 4. – Controls and Procedures 18

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1. – Legal Proceedings 19 Item 1A. – Risk Factors 19 Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3. – Defaults Upon Senior Securities 19 Item 4. – Mine Safety Disclosures 19 Item 5. – Other Information 19 Item 6. – Exhibits 20

SIGNATURES

SIGNATURES 21 2 Table of Contents ABOUT THIS QUARTERLY REPORT In this Quarterly Report on Form 10-Q (this "Quarterly Report"), unless otherwise specified, the terms "we," "our," "us," our "Company," the "Company," or the "Registrant" refer to Yubo International Biotech Limited, a U.S. holding company and a New York corporation and its wholly owned subsidiaries, including Platinum International Biotech Co., Ltd., a company organized under the laws of the Cayman Islands ("Platinum"), Platinum International Biotech (Hong Kong) Limited, a company organized under the laws of Hong Kong and a wholly owned subsidiary of Platinum ("Platinum HK"), Yubo International Biotech (Chengdu) Limited, a company organized under the laws of the People's Republic of China and a wholly owned subsidiary of Platinum HK ("Yubo Chengdu" or the "WFOE"), and Yubo Global Biotechnology (Chengdu) Co., Ltd., a company organized under the laws of the People's Republic of China ("Yubo Global"). We are a U.S. holding company primarily operating through our wholly owned subsidiary, Platinum. Platinum is not a Chinese operating company but a Cayman Islands holding company, which in turn operates in China through its subsidiaries and contractual arrangements with a variable interest entity ("VIE"), Yubo International Biotech (Beijing) Limited, a company organized under the laws of the People's Republic of China and, through contractual arrangements with us, the Chinese operating company. None of our Company, Platinum, or Platinum HK, each as a holding company, conducts any day-to-day business operations in China. The term "Yubo Beijing" refers to Yubo International Biotech (Beijing) Limited, a VIE organized under the laws of the People's Republic of China, including its wholly-owned subsidiary, Phoenix Club Bio-Medical Technology (Chengdu) Co., Ltd, a company organized under the laws of the People's Republic of China ("Yubo Phoenix"), and two other PRC subsidiaries, Yubo Jingzhi Biotechnology

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements YUBO INTERNATIONAL BIOTECH LIMITED INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30 , 2025 and 2024 Table of Contents Consolidated Balance Sheets (Unaudited) F-1 Consolidated Statements of Operations and Comprehensive Loss (Unaudited) F-2 Consolidated Statements of Changes in Shareholders' Equity (Unaudited) F-3 Consolidated Statements of Cash Flows (Unaudited) F-4

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) F-5 5 Table of Contents YUBO INTERNATIONAL BIOTECH LIMITED CONSOLIDATED BALANCE SHEETS (Expressed in US Dollars) June 30, December 31, 2025 2024 (Unaudited) ASSETS Current assets Cash $ 10,416 $ 7,015 Receivables 118,006 164,984 Prepaid expenses 210,413 196,417 Inventory 37,650 36,953 Due from related parties 282,617 277,382 Total Current Assets 659,102 682,751 Property and equipment, net 126,007 205,913 Intangible assets, net 44,653 50,523 Operating lease right of use asset 184,943 478,765 Lease security deposit 36,863 116,880 Total Assets $ 1,051,568 $ 1,534,832 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses (including accounts payable and accrued expenses of VIE without recourse to the Company of $ 972,710 and $ 880,787 as of June 30, 2025 and December 31, 2024, respectively) $ 1,050,497 $ 1,037,836 Advances from prospective customers/distributors (including advances from prospective customers/distributors of VIE without recourse to the Company of $ 432,028 and $ 424,026 as of June 30, 2025 and December 31, 2024, respectively) 432,028 424,026 Due to related parties (including due to related parties without recourse to the Company of $ 3,125,748 and $ 2,741,830 as of June 30, 2025 and December 31, 2024, respectively) 3,365,814 2,891,895 Operating lease liabilities – current (including operating lease liabilities - current of VIE without recourse to the Company of $ 177,131 and $ 367,992 as of June 30, 2024 and December 31, 2024, respectively) 177,131 367,992 Total Current Liabilities 5,025,470 4,721,749 Non-current liabilities Operating lease liabilities - non-current (including operating lease liability – non- current of VIE without recourse to the Company of $ 7,812 and $ 110,773 as of June 30, 2025 and December 31, 2024, respectively) 7,812 11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2025 and 2024 (Unaudited) NOTE 1 – ORGANIZATION Yubo International Biotech Limited (formerly Magna-Lab Inc.) (the "Company"), a New York corporation, acquired Platinum International Biotech Co. Ltd. ("Platinum") in a "reverse merger" transaction on January 14, 2021. On January 14, 2021 (the "Closing Date"), the Company closed a voluntary share exchange transaction with Platinum International Biotech Co., Ltd., a company organized under the laws of the Cayman Islands ("Platinum"), pursuant to that certain Agreement and Plan of Share Exchange, dated January 14, 2021 (the "Exchange Agreement"), by and among the Company, Platinum, Yubo International Biotech (Beijing) Limited, a company organized under the laws of the People's Republic of China ("PRC") ("Yubo Beijing"), and certain selling stockholders named therein. In accordance with the terms of the Exchange Agreement, on the Closing Date, the Company issued a total of 117,000,000 shares of its Class A common stock to the Selling Stockholders, who were then stockholders of Platinum (the "Selling Stockholders"), in exchange for 100% of the issued and outstanding capital stock of Platinum (the "Exchange Transaction"). As a result of the Exchange Transaction, the Selling Stockholders acquired more than 99 % of the Company's issued and outstanding capital stock, Platinum became the Company's wholly-owned subsidiary, and the Company acquired the business and operations of Platinum and Yubo Beijing. Immediately prior to the Exchange Transaction, the Company had 117,875,323 shares of Class A common stock and 4,447 shares of Class B common stock issued and outstanding. Immediately after the Exchange Transaction and the surrender and cancellation of 116,697,438 shares held by Lina Liu, the controlling shareholder, Chief Financial Officer, Treasurer and Secretary of the Company, the Company had 118,177,885 shares of Class A common s

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