MF · MindForge Inc

U-BX Technology Ltd.’s financial results for the six months ended December 31, 2025 reflect a severe deterioration in core operations, with revenue collapsing 33% year-over-year to $11.65 million and net income reversing into a $10.18 million loss. The decline was overwhelmingly driven by two structural headwinds: first, risk assessment services revenue imploded by 97% to $97,375 — attributed explicitly to Chinese regulators mandating insurers build internal risk management systems and AI-driven technological alternatives reducing external demand; second, digital promotion services — now 98% of total revenue — fell 16% to $11.45 million due to reduced client marketing budgets amid economic downturn. Gross profit shrank 86% to just $30,000, revealing near-total margin erosion: cost of revenues consumed 99.7% of revenue in 2025 versus 99% in 2024. Operating expenses surged 1,669% to $10.24 million, dominated by $9.68 million in share-based compensation — a non-cash charge signaling aggressive retention efforts amid mounting stress. Liquidity remains tenuous: cash decreased $1.31 million to $9.87 million despite no debt on the balance sheet, while accumulated deficit more than tripled to $(13.88) million. Management cites macroeconomic conditions, regulatory evolution, and competitive substitution as persistent pressures — with no forward guidance or recovery timeline disclosed. The liquidation of three subsidiaries (RDYJ, Jiangsu Jingmo, Jiangsu YJYC) further signals strategic retrenchment. For investors, this is not a cyclical dip but evidence of fundamental business model strain in China’s rapidly digitizing and increasingly self-sufficient insurance sector.