HEALIOS K.K. FY2025 Q3 Earnings Report

Financial Highlights

• Net Sales: ¥79M
• Operating Income: ¥-2.33B
• Net Income: ¥-4.15B
• EPS: ¥-39.49

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

Helios (45930) reported FY2025 Q3 (IFRS, consolidated) results characterized by very low revenue and substantial losses, consistent with an early-stage, pre-commercial profile. Revenue was 0.79億円, down 85.5% YoY, underscoring limited commercial activity or the timing nature of milestone/grant recognition. Despite revenue of 0.79億円 and cost of sales of 0.98億円, gross profit was reported at 4.44億円, yielding an unusual gross margin of 562.0%. This likely reflects classification of other operating income or inventory-related credits within cost-of-sales/gross profit under IFRS rather than core product margin strength. Operating income was -23.33億円, and EBITDA was -21.16億円, indicating a heavy operating cost base relative to scale. Profit before tax was -41.35億円, implying sizable non-operating losses or one-off charges not disclosed in the non-operating lines. Net income was -41.46億円 (EPS -39.49円), driving a calculated ROE of -140.3% on a small equity base. The DuPont profile is consistent with a development-stage company: extremely negative net margin (-5248.1%), negligible asset turnover (0.005x), and high financial leverage (5.86x including liabilities) amplifying ROE volatility. The balance sheet shows total assets of 173.27億円 and equity of 29.55億円 (equity ratio 16.9%), with total liabilities of 121.08億円 (debt-to-equity 4.10x), indicating a leveraged capital structure dominated by liabilities rather than equity. Cash and equivalents were 36.72億円, while current assets were 42.75億円; current liabilities were not disclosed, limiting liquidity ratio analysis. Operating cash flow was -12.39億円 and total free cash flow was -18.19億円, evidencing ongoing cash burn. Investing cash outflow of -5.80億円 materially exceeded reported capex (-0.13億円), suggesting other investment outlays (e.g., intangibles or financial assets). Financing cash flow was -3.61億円, indicating net outflows (debt repayment, lease payments, or absence of equity raises in the period). Based on cash of 36.72億円 and cumulative net cash outflow of -21.8億円 year-to-date, the cash runway appears limited to several quarters to roughly a year-plus, depending on future burn and financing. Dividend-related items were unreported, and given losses plus negative FCF, distributions are unlikely near term. Overall, results highlight execution risk tied to scaling revenues and the necessity of external funding or partnering to extend runway. Data limitations are material (many items unreported), so conclusions focus on the disclosed metrics.

Profitability Analysis

ROE_decomposition: Net margin -5248.1% x asset turnover 0.005 x financial leverage 5.86x = ROE -140.3% (calculated, matches reported). The dominant driver is an extremely negative margin on a very small revenue base, with high leverage further magnifying the equity return. margin_quality: Gross profit of 4.44億円 on 0.79億円 revenue produces a 562.0% gross margin, which is not reflective of underlying product economics; it likely includes operating credits (e.g., grants, inventory remeasurements, or reclassifications) recognized above operating income. Operating margin is deeply negative (operating loss -23.33億円; operating margin not directly comparable due to near-zero revenue). EBITDA is -21.16億円, showing minimal non-cash add-back relative to the operating loss (D&A 2.17億円). Effective tax rate of 0.7% is not meaningful given losses. operating_leverage: SG&A of 10.02億円 against revenue of 0.79億円 indicates heavy fixed cost absorption and limited scale benefits. With asset turnover at 0.005x, any revenue growth would materially impact EBIT, but current cost structure implies substantial breakeven gap. The step-up from operating loss (-23.33億円) to pre-tax loss (-41.35億円) also suggests volatility from non-operating items, further complicating operating leverage assessment.

Growth Assessment

revenue_sustainability: Revenue declined 85.5% YoY to 0.79億円, pointing to low visibility and likely non-recurring components. The scale is insufficient to cover fixed costs, and gross profit behavior suggests reliance on accounting items rather than recurring sales. profit_quality: The divergence between gross profit (4.44億円) and revenue (0.79億円), plus the large swing to pre-tax loss (-41.35億円), indicates profit quality is weak and sensitive to non-operating or classification effects. EBITDA of -21.16億円 shows underlying loss-making operations before depreciation. outlook: Near-term growth hinges on converting pipeline or partnerships into recurring revenues or milestone inflows. Given the very low asset turnover and high SG&A burden, meaningful operating improvement likely requires discrete catalysts (e.g., licensing, grants, or commercialization), none of which can be inferred from the disclosed data.

Financial Health

liquidity: Cash & equivalents 36.72億円 and current assets 42.75億円 provide some buffer, but current liabilities were not disclosed, making current/quick ratios not calculable. Working capital is shown as 42.75億円; however, without current liabilities, this figure is not comparable or definitive. solvency: Equity 29.55億円 vs total liabilities 121.08億円 yields an equity ratio of 16.9% and debt-to-equity of 4.10x, indicating a leveraged balance sheet predominantly funded by liabilities. Interest-bearing debt specifics are unreported, and interest coverage is not calculable. capital_structure: Financial leverage of 5.86x (DuPont) implies high sensitivity of equity to earnings volatility. With retained earnings at 5.43億円 and capital surplus 18.84億円, the equity base is modest relative to asset size, heightening dilution and refinancing risk if losses persist.

Cash Flow Quality

earnings_quality: OCF/Net income is 0.30x (-12.39億円 OCF vs -41.46億円 NI), indicating losses are only partially reflected in cash outflow, aided by non-cash charges (D&A 2.17億円) and likely working capital movements. However, cash burn remains significant. FCF_analysis: Free cash flow is -18.19億円. Reported capex is only -0.13億円, so the gap to FCF suggests additional investing outflows (e.g., intangibles or financial investments) are included in the FCF definition here. Total investing CF of -5.80億円 exceeds capex, supporting this view. working_capital: Accounts receivable are 1.84億円; inventories and other current items are unreported, limiting analysis. The displayed working capital of 42.75億円 may overstate true liquidity given missing current liabilities; hence WC quality cannot be confirmed.

Dividend Sustainability

payout_ratio_assessment: DPS and payout ratios are unreported. With net income at -41.46億円 and negative FCF (-18.19億円), internal capacity to fund dividends is absent. FCF_coverage: Not calculable from reported DPS; however, negative FCF indicates no coverage for distributions without external funding. policy_outlook: Given persistent losses and a development-focused profile, capital allocation will likely prioritize R&D and operating runway over shareholder distributions in the near term (based solely on financials provided).

Risk Assessment

Business Risks:

• Commercialization risk given minimal revenue and heavy reliance on non-recurring or non-operating items
• Execution risk in scaling sales or achieving milestones to offset fixed costs
• Dependence on external partners, grants, or licensing, implied by revenue volatility
• Regulatory or clinical milestone timing risk (inferred from pre-commercial profile)

Financial Risks:

• High leverage relative to equity (debt-to-equity 4.10x; equity ratio 16.9%)
• Cash burn risk with OCF -12.39億円 and FCF -18.19億円 year-to-date
• Refinancing/dilution risk if additional capital is required to extend runway
• Earnings volatility from non-operating items; lack of interest coverage visibility

Key Concerns:

• Unusual gross profit behavior (gross margin 562.0%) suggests profit quality and classification risks
• Large gap between operating loss (-23.33億円) and pre-tax loss (-41.35億円) without disclosure detail
• Limited data disclosure (many XBRL items unreported), constraining analysis of liquidity and debt structure
• Asset turnover of 0.005x highlights extremely low monetization of asset base

Investment Implications

Key Takeaways:

• Severe operating losses and negative FCF indicate continued reliance on external funding absent catalysts
• Leverage is high relative to equity, amplifying loss impact on book value (ROE -140.3%)
• Cash of 36.72億円 provides only a finite runway given cumulative net outflow of -21.8億円 over the period
• Gross profit dynamics are not reflective of sustainable unit economics
• Non-operating items materially affect bottom line, adding to earnings uncertainty

Metrics to Watch:

• Cash runway and quarterly net cash burn (OCF plus investing outflows)
• Equity ratio and any changes in liabilities/interest-bearing debt
• Revenue mix and recurrence (milestones, grants, product sales)
• SG&A trajectory and any disclosed R&D capitalization/expense trends
• Disclosure of non-operating items (impairments, financial income/expenses)
• Partnerships or licensing inflows that could bridge to commercialization

Relative Positioning: Within pre-commercial, development-stage peers on the TSE, Helios appears earlier-stage from a financial standpoint, with minimal revenues, high operating losses, and a leverage-heavy balance sheet; sustainability depends on financing access and milestone realization given current burn.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis