Yubo International Biotech Ltd: A Plain-English Investor Guide

I’m writing this guide to help you navigate the financial filings for Yubo International Biotech Ltd. My goal is to explain what this company does and the risks involved, so you can decide if it fits your investment goals.

1. What does this company do?

Yubo International Biotech is a U.S. company that operates through a specific arrangement with a Chinese company called Yubo Beijing.

Yubo Beijing conducts the actual business operations. This includes researching stem cell technologies—specifically the collection and storage of endometrial stem cells—and managing the "VIVCELL" brand. They also sell health-related products, such as skincare lines and respiratory equipment like nebulizers and oxygen concentrators, primarily within the Chinese market.

2. The "VIE" Structure: A Major Warning

It is important to understand that you do not own a direct piece of the Chinese business. Because Chinese laws restrict foreign ownership in the biotech sector, Yubo uses a "Variable Interest Entity" (VIE) structure. You are buying a contract that tracks the Chinese company’s performance rather than owning the underlying assets.

While the U.S. entity has agreements that entitle it to 90% of Yubo Beijing’s profits, the company has not yet reached profitability. For the year ending December 31, 2024, the company reported a loss of approximately $1.1 million and has not received any fees from the Chinese operations. If the Chinese government were to invalidate these contracts, the U.S. entity would lose its primary claim to the business, which could render the investment worthless.

3. Financial Health and Market Position

As of June 30, 2025, the total value of shares held by the public was approximately $1.27 million. Because this is a "micro-cap" company, the stock price can be highly volatile and sensitive to low trading volumes or minor news.

The company’s financial position is currently constrained. It holds roughly $180,000 in cash and has stated that it requires at least $2 million over the next year to cover research and administrative expenses. There is no guarantee that the company will be able to raise these necessary funds, and the company has explicitly noted that it needs substantial additional capital to continue its operations.

4. Key Risks

• Legal Jurisdiction: Because the company’s leadership and assets are located in China, it is extremely difficult for U.S. investors to pursue legal action or recover funds. U.S. court judgments are generally not enforceable in China.
• Regulatory Environment: The Chinese government maintains significant control over the biotech sector. Changes in policy could restrict the company’s ability to operate, impact its stem cell research, or affect its eligibility to remain listed on a U.S. exchange.
• Audit and Delisting Risk: If future regulations prevent U.S. regulators from inspecting the company’s Chinese operations, the stock faces a risk of being delisted from U.S. exchanges.

5. Future Outlook

The company’s growth strategy centers on expanding its stem cell repository and securing medical device certifications in China for its health products. Success depends entirely on obtaining these regulatory approvals and securing the capital needed to sustain operations.

Bottom Line: This is a high-risk, early-stage investment. You are essentially betting on the stability of complex international contracts and the company’s ability to transition from a loss-making entity to a profitable one. Given the limited cash reserves and the ongoing need for capital, this investment carries a significant risk of total loss if the company cannot secure additional funding or navigate its regulatory challenges.