U-BX Technology Ltd.

Chinese insurtech-services company near breakeven with declining revenue, cash-rich.

Strengths

• Cash-rich — current ratio 10.2 (90th)

Risks

• Near-breakeven/net loss — operating margin -10%, net margin -9%
• Revenue decline — -42%
• China/regulatory and very-thin-gross-margin risk — gross margin 1%

Notable findings

• Net lossNet loss (net margin -9.2%)
• Material weakness” However, the implementation of these measures may not fully address the material weakness and other deficiencies in our internal control over financial reporting, and we cannot conclude that they ha
• Customer concentration~12% of revenue from one customer/distributor — For the year ended June 30, 2023, we have one customer that accounted for more than 10% of total revenues, and such customer accounted for 12
• Revenue declineRevenue -42.5% YoY