EX-99.1 2 ea025102101ex99-1_lakeshore.htm PRESS RELEASE - LAKESHORE BIOPHARMA ANNOUNCES FISCAL YEAR 2025 FINANCIAL RESULTS

Exhibit 99.1

 

LakeShore Biopharma Announces Fiscal Year 2025 Financial Results

 

²Total revenue reached RMB615.0 million, representing 7.2% year-over-year growth
  
²Gross profit rose to RMB507.2 million, up 11.3% year-over-year
  
²Gross margin improved to 82.5% from 79.5% in Fiscal Year 2024
  
²Total operating expenses decreased 34.2% year-over-year to RMB593.5 million
  
²EBITDA1 and Adjusted EBITDA2 were RMB(48.5 million) and RMB0.6 million, respectively, compared to RMB(368.7 million) and RMB(236.4 million) in Fiscal Year 2024
  
²Net loss narrowed to RMB100.0 million, with an adjusted net loss3 of RMB40.0 million, compared to RMB433.5 million and RMB266.3 million, respectively, in Fiscal Year 2024

 

BEIJING, July 31, 2025 /PRNewswire/ -- LakeShore Biopharma Co., Ltd (Nasdaq: LSB) (“LakeShore Biopharma” or the “Company”), a global biopharmaceutical company dedicated to discovering, developing, manufacturing, and delivering new generations of vaccines and therapeutic biologics for infectious diseases and cancer, today announced its financial results for the Fiscal Year ended March 31, 2025 (“FY2025”).

 

We are pleased to announce LakeShore Biopharma’s FY2025 financial results with a 7.2% year-over-year growth in revenues and an 11.3% year-over-year growth in gross profits. Our net loss narrowed by 77% year-over-year”, stated Xu Wang, Director and Chief Executive Officer. "While we didn’t meet the revenue guidance of RMB665-700 million and our adjusted EBITDA guidance range of RMB76-89 million, we have achieved significantly improved results compared to last year, despite substantial challenges. These include intensified competition in the rabies vaccine industry market, particularly in the second half of Fiscal Year 2025, pricing pressures in certain regions, limited capacity of major vaccine distribution channels to absorb new inventories, and ongoing cash constraints stemming from our inability to secure new bank credit lines due to the ongoing litigation with former Chairman, Mr. Yi Zhang.

 

Mr. Xu Wang further commented: "Looking forward, we will strategically allocate our resources to maximize the commercial value of our flagship product, YSJATM rabies vaccine. Specifically, we will strive to maintain and grow our market share through the following measures: 1) expanding our coverage regions; 2) retaining and attracting high-performing CSOs; 3) driving end-market demand through collaboration with hospitals and clinics; 4) continuing to train and recruit new commercial talents; and 5) advancing the Phase III trial of the simplified four-dose regimen for the YSJATM rabies vaccine at full speed, with the goal of securing the market approval by the fourth quarter of 2026. Additionally, we will continue to enhance operational efficiency, reinforce cost control measures, and strengthen internal corporate governance."

 

 

1 EBITDA is a non-GAAP financial measure, which is defined as net income (loss) before income tax benefit (expense), financial expenses and depreciation and amortization. See “Use of Non-GAAP Financial Measures” below
2 Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income(loss) before income tax benefit (expense), financial expenses, and depreciation and amortization (“EBITDA”) adjusted to exclude share-based compensation expenses, impairment loss on inventory, property, plant and equipment and other assets, late fees related to social security insurance, other income (expense), fair value changes of warrant liability, and government grants. See “Use of Non-GAAP Financial Measures” below
3 Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss) excluding share-based compensation expenses, impairment loss on inventory, property, plant and equipment and other assets, and loss on disposal of property, plant and equipment. See “Use of Non-GAAP Financial Measures” below.

 

 

 

Business Updates

 

YSJATM Rabies Vaccine

 

LakeShore Biopharma’s YSJATM rabies vaccine is China’s first aluminum-free lyophilized rabies vaccine (Vero cell) and has been in clinical use for over 22 years. As of March 31, 2025, approximately 110 million doses have been administered for post-exposure protection against rabies. Leveraging LakeShore Biopharma's successful commercialization capabilities, the YSJATM rabies vaccine has demonstrated strong production scalability and broad market acceptance. Since launching in October 2020, LakeShore Biopharma has distributed over 35.3 million doses to 1,911 county-level CDCs in China, representing 67.7% of coverage.

 

Clinical Pipeline

 

Progress of Phase III Clinical Trial on simplified four-dose regimen for YSJATM rabies vaccine

 

In October 2024, the NMPA approved LakeShore Biopharma to initiate a Phase III clinical trial evaluating a simplified four-dose regimen for YSJATM, including the Zagreb (2-1-1) and Modified Essen (1-1-1-1) regimens.

 

LakeShore Biopharma commenced this clinical trial in December 2024 and successfully completed the 90-day subject follow-up in July 2025. The Company expects to finish the interim analysis in the fourth quarter of 2025 and obtain the market approval in the fourth quarter of 2026.

 

The study aims to strengthen the competitiveness of the YSJATM rabies vaccine in the rapidly growing rabies vaccine market, demonstrate its clinical superiority, and garner broader recognition and support from hospitals, academic institutions, and industry stakeholders in China and globally.

 

Fiscal Year 2025 Financial Results

 

Total Revenue

 

Total revenue rose by 7.2%, from RMB573.4 million in FY2024 to RMB615.0 million in FY2025. This growth was primarily driven by steady recovery of the domestic economy following the end of the COVID-19 emergency, with improved production and operations.

 

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Gross Profit

 

Gross profit rose by 11.3%, from RMB455.7 million in FY2024 to RMB507.2 million in FY2025. This increase was primarily driven by higher sales volume. The gross profit margin also improved, from 79.5% in FY 2024 to 82.5% in FY 2025. The margin expansion was due to higher average unit prices and lower unit costs.

 

Selling and Marketing Expenses

 

Selling and marketing (“S&M”) expenses decreased by 6.6%, from RMB301.3 million in FY2024 to RMB281.4 million in FY2025. This decline was mainly attributed to higher S&M spending in FY2024, driven by increased market promotion to strengthen market position and brand recognition, and to address intensified competition following additional approvals for human rabies vaccines in China.

 

General and Administrative Expenses

 

General and administrative expenses decreased by 7.9%, from RMB140.1 million in FY2024 to RMB129.0 million in FY2025. This reduction was primarily due to ongoing improvements in our cost control framework, achieved through systematic implementation of cost-saving and efficiency initiatives. These include optimization of management processes, tightening control over non-core spending, and improving resource utilization.

 

Research and Development Expenses

 

Research and development (“R&D”) expenses in FY 2025 were RMB146.4 million, down from RMB302.8 million in FY2024, mainly due to: 1) the termination of COVID-19 vaccine commercialization, which led to reduced related testing and clinical costs; and 2) lower R&D spending on the PIKA rabies vaccine as the trial progressed to a later stage, follow-ups completed and focus shifted to lower cost data analysis.

 

Impairment Loss on Inventory, Property, Plant and Equipment, and Other Assets

 

Impairment loss on inventory, property, plant and equipment, and other assets decreased by 76.7%, from RMB157.4 million in FY2024 to RMB36.7 million in FY2025. This decrease was mainly attributed to the smaller reduction in PP&E impairment of equipment related to COVID-19 vaccines recognized in the current Fiscal Year compared to FY2024.

 

EBITDA and Adjusted EBITDA

 

EBITDA1 and Adjusted EBITDA2 were RMB(48.5 million) and RMB0.6 million, compared to RMB(368.7 million) and RMB(236.4 million) respectively, in FY2024.

 

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Loss from Operations

 

Operating loss was RMB86.3 million, significantly lower than an operating loss of RMB445.8 million in FY2024.

 

Net Loss and Adjusted Net Loss

 

Net loss was RMB100.0 million, and adjusted net loss3 was RMB40.0 million, in contrast to net loss of RMB433.5 million and adjusted net loss3 of RMB266.3 million, respectively, in FY2024.

 

Balance Sheet

 

As of March 31, 2025, the Company had cash and cash equivalents of RMB107.5 million, compared to RMB246.6 million as of March 31, 2024. Our short-term loan and borrowings reached RMB390.4 million, compared to RMB318.5 million as of March 31, 2024.

 

Business Outlook

 

The Company anticipates total revenue in FY2026 to be between approximately RMB550 million and RMB650 million.

 

The above outlook is based on the information available as of the date of this press release and reflects the Company’s current and preliminary expectations regarding its business situation and market conditions. The outlook is subject to changes, especially given uncertainties and situations related to market competitive dynamics, regulatory policies and other factors beyond its control.

 

About LakeShore Biopharma

 

LakeShore Biopharma, previously known as YS Biopharma, is a global biopharmaceutical company dedicated to discovering, developing, manufacturing, and delivering new generations of vaccines and therapeutic biologics for infectious diseases and cancer. It has developed a proprietary PIKA® immunomodulating technology platform and a new generation of preventive and therapeutic biologics targeting Rabies, Hepatitis B, Influenza, and other virus infections. The Company operates in China, Singapore, and the Philippines, and is led by a management team that combines rich local expertise and global experience in the biopharmaceutical industry. For more information, please visit https://investor.lakeshorebio.com/.

 

Use of Non-GAAP Financial Measures

 

In evaluating the business, the Company considers and uses certain non-GAAP measures, including Adjusted EBITDA and adjusted net income (loss), as supplemental measures to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines Adjusted EBITDA as net income (loss) before income tax benefit (expense), financial expenses, and depreciation and amortization (“EBITDA”) adjusted to exclude share-based compensation expenses, impairment loss on inventory, property, plant and equipment and other assets, late fees related to social security insurance, other income (expense), fair value changes of warrant liability, and government grants. The Company defines adjusted net income (loss) as net income (loss) excluding share-based compensation expenses, impairment loss on inventory, property, plant and equipment and other assets, and loss on disposal of property, plant and equipment. The Company presents the non-GAAP financial measures because they are used by the management to evaluate the operating performance and formulate business plans. The Company also believes that the use of the non-GAAP measures facilitates investors’ assessment of its operating performance as this measure excludes certain finance or non-cash items that the Company does not believe directly reflect its core operations. The Company believes that excluding these items enables us to evaluate our performance period-over-period more effectively and relative to our competitors.

 

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The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using Adjusted EBITDA is that it does not reflect all items of income and expenses that affect the Company’s operations. Share-based compensation, impairment loss on inventory, property, plant and equipment and other assets, Loss on disposal of Property, plant and equipment have been and may continue to be incurred in the business. Further, the non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

 

The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

 

Reconciliations of LakeShore Biopharma’s non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release.

 

Exchange Rate Information

 

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.1782 to US$1.00, the exchange rate set forth in the central parity rate release of the People’s Bank of China on March 31, 2025.

 

Cautionary Statement Regarding Forward-Looking Statements

 

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding the expected growth and business outlook of LakeShore Biopharma, the development progress of all product candidates, the progress and results of all clinical trials, LakeShore Biopharma’s ability to source and retain talent, and the cash position of LakeShore Biopharma. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “potential,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “goal,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether identified in this press release, and on the current expectations of LakeShore Biopharma’s management and are not predictions of actual performance.

 

LakeShore Biopharma cannot assure you the forward-looking statements in this press release will be accurate. These forward-looking statements are subject to a number of risks and uncertainties, including those included under the heading “Risk Factors” in the company's Annual Report on Form 20-F filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the company from time to time with the SEC. There may be additional risks that LakeShore Biopharma does not presently know or that LakeShore Biopharma currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. The forward-looking statements in this press release represent the views of LakeShore Biopharma as of the date of this press release. Subsequent events and developments may cause those views to change. However, while LakeShore Biopharma may update these forward-looking statements in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of LakeShore Biopharma as of any date subsequent to the date of this press release. Except as may be required by law, LakeShore Biopharma does not undertake any duty to update these forward-looking statements.

 

Investor Relations Contact

IR Team
Tel: +86 (10) 8920-2086
Email:
ir@lakeshorebio.com

 

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LAKESHORE BIOPHARMA CO., LTD AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (AUDITED)

 

   As of March 31, 
   2024   2025   2025 
   (RMB)   (RMB)   (US$) 
ASSETS            
Current assets               
Cash   246,351,231    28,083,556   $3,912,340 
Restricted cash   200,000    79,401,410    11,061,465 
Accounts receivable   444,161,291    500,916,815    69,783,067 
Advance to suppliers   1,662,739    1,687,964    235,151 
Inventories   203,422,602    227,591,892    31,705,984 
Prepaid expenses and other current assets   7,370,089    4,536,363    631,964 
Total current assets   903,167,952    842,218,000    117,329,971 
Non-current assets               
Property, plant and equipment   473,348,006    413,501,445    57,605,172 
Operating lease right-of-use assets   7,275,367    847,331    118,042 
Deferred tax assets   23,634,189    27,946,500    3,893,247 
Intangible assets   71,245,336    72,854,656    10,149,432 
Other non-current assets   34,356,506    10,295,279    1,434,242 
Total non-current assets   609,859,404    525,445,211    73,200,135 
Total assets   1,513,027,356    1,367,663,211   $190,530,106 
                
LIABILITIES AND SHAREHOLDERS’ (DEFICIT)/EQUITY               
Current liabilities               
Bank loans and other borrowings   318,540,732    390,440,095   $54,392,479 
Accounts payable   67,774,798    49,551,779    6,903,093 
Accrued expenses and other liabilities   408,737,969    382,847,958    53,334,812 
Operating lease liabilities   5,156,540    457,012    63,667 
Deferred government grants   2,015,693    1,455,678    202,792 
Total current liabilities   802,225,732    824,752,522    114,896,843 
                
Non-current liabilities               
Bank loans and other borrowings   98,983,780    23,503,471    3,274,285 
Operating lease liabilities   1,783,593    -    - 
Deferred government grants   20,279,945    16,207,745    2,257,912 
Warrants liability   4,548,004    3,444,842    479,903 
Total non-current liabilities   125,595,322    43,156,058    6,012,100 
Total liabilities   927,821,054    867,908,580    120,908,943 
                
Shareholders’(deficit)/equity               
Ordinary shares, par value US$0.0002 per share; 250,000,000 shares authorized; 19,022,795 and 20,766,531 shares issued and outstanding as of March 31, 2024 and 2025, respectively *   26,105    28,603    3,985 
Additional paid-in capital   2,950,862,914    2,964,482,986    412,984,172 
Accumulated deficit   (2,307,502,836)   (2,407,485,287)   (335,388,438)
Accumulated other comprehensive loss   (58,179,881)   (57,271,671)   (7,978,556)
Total shareholders’ equity   585,206,302    499,754,631    69,621,163 
Total liabilities and shareholders’ equity   1,513,027,356    1,367,663,211   $190,530,106 

 

* Gives retroactive effect to the Share Consolidation in October 2024.

 

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LAKESHORE BIOPHARMA CO., LTD AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (AUDITED)

 

 

   Years Ended March 31, 
   2023   2024   2025   2025 
   (RMB)   (RMB)   (RMB)   (US$) 
Revenues   687,201,070    573,418,256    614,961,584   $85,670,723 
Cost of revenues   153,360,262    117,688,301    107,772,147    15,013,812 
Gross profit   533,840,808    455,729,955    507,189,437    70,656,911 
                     
Operating expenses:                    
Selling and marketing   272,927,356    301,259,528    281,429,426    39,206,128 
General and administrative   72,939,790    140,086,062    128,967,761    17,966,588 
Impairment loss on inventory, property, plant and equipment and other assets   8,655,487    157,415,875    36,715,041    5,114,798 
Research and development   318,700,526    302,800,992    146,369,093    20,390,779 
Total operating expenses   673,223,159    901,562,457    593,481,321    82,678,293 
                     
Loss from operations   (139,382,351)   (445,832,502)   (86,291,884)   (12,021,382)
                     
Other income (expenses):                    
Late fees for taxes other than income tax   (3,603)   -    -    - 
Late fees for social security insurance   (747,609)   (756,201)   (454,863)   (63,367)
Government grants   26,072,517    20,708,778    5,125,566    714,046 
Financial expenses   (30,857,673)   (44,344,808)   (15,739,410)   (2,192,668)
Fair value changes of warrant liability   21,358    4,458,844    1,149,792    160,178 
Other income(expense)   551,760    10,572,411    (4,718,525)   (657,341)
Total other income (expense)   (4,963,250)   (9,360,976)   (14,637,440)   (2,039,152)
                     
Loss before income taxes   (144,345,601)   (455,193,478)   (100,929,324)   (14,060,534)
                     
Income tax benefit(expense)   (1,133,504)   21,728,607    946,873    131,910 
                     
Net loss   (145,479,105)   (433,464,871)   (99,982,451)   (13,928,624)
Accretion to redemption value of convertible redeemable preferred shares   (137,991,697)   -    -    - 
Net loss attributable to LakeShore Group   (283,470,802)   (433,464,871)   (99,982,451)  $(13,928,624)
                     
Net loss   (145,479,105)   (433,464,871)   (99,982,451)  $(13,928,624)
Other comprehensive income (loss), net of tax: Foreign currency translation adjustment   (137,500,063)   (3,767,798)   908,210    126,523 
Total comprehensive loss   (282,979,168)   (437,232,669)   (99,074,241)  $(13,802,101)
                     
Loss per share*:                    
– Basic and Diluted   (23.55)   (40.54)   (5.22)  $(0.73)
Weighted average number of ordinary shares outstanding*:                    
– Basic and Diluted   6,178,547    10,692,312    19,158,907    19,158,907 

 

* Gives retroactive effect to the Share Consolidation in October 2024.

 

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Lakeshore Biopharma Co., Ltd
Unaudited Reconciliations of GAAP And Non-GAAP Results

 

   Years Ended March 31, 
   2024   2025   2025 
   RMB   RMB   US$ 
Net income (loss)   (433,464,871)   (99,982,451)  $(13,928,624)
Add: income tax benefit (expense)   (21,728,607)   (946,873)   (131,910)
Add: financial expenses   44,344,808    15,739,410    2,192,668 
Add: depreciation and amortization   42,185,383    36,651,608    5,105,961 
EBITDA   (368,663,287)   (48,538,306)   (6,761,905)
Add: share-based compensation expenses   9,789,686    13,557,214    1,888,665 
Add: impairment loss on inventory, property, plant and equipment and other assets   157,415,875    36,715,041    5,114,798 
late fees related to social security insurance   756,201    454,863    63,367 
Add: other income (expense)   (10,572,411)   4,718,525    657,341 
Add: fair value changes of warrant liability   (4,458,844)   (1,149,792)   (160,178)
Add: government grants   (20,708,778)   (5,125,566)   (714,046)
Adjusted EBITDA   (236,441,558)   631,979   $88,041 

 

   Years Ended March 31,
    2024    2025    2025 
    RMB    RMB    US$ 
Net income (loss)   (433,464,871)   (99,982,451)  $(13,928,624)
Add: share-based compensation expenses   9,789,686    13,557,214    1,888,665 
Add: impairment loss on inventory, property, plant and equipment and other assets   157,415,875    36,715,041    5,114,798 
Add: loss on disposal of property, plant and equipment   13,135    9,777,030    1,362,045 
Adjusted net income (loss)   (266,259,310)   (39,933,166)  $(5,563,117)

 

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