Revenue declined by 13.9% year-over-year, while gross margins fluctuated significantly from 29.4% in 2022Q4 to 48.1% in 2023Q4, suggesting potential volatility in product mix rather than structural pricing power.
| Sales/Revenue | 6.94M | 6.69M | 9.15M | 9.13M | 12.8M | 11.5M |
| Revenue Growth % | - | -26.97% | 0.23% | -28.67% | 11.34% | - |
| Cost of Goods Sold | 4.3M | 2.89M | 6.22M | 5.89M | 7.18M | 7.61M |
| COGS % of Revenue | - | 43.27% | 67.91% | 64.51% | 56.08% | 66.22% |
| Gross Profit | 2.64M | 3.79M | 2.94M | 3.24M | 5.62M | 3.88M |
| Gross Margin % | 38.02% | 56.73% | 32.09% | 35.49% | 43.92% | 33.78% |
| Gross Profit Growth % | - | 29.13% | -9.37% | -42.36% | 44.75% | - |
| Operating Expenses | 2.57M | 4.28M | 5.06M | 4.66M | 6.4M | 3.88M |
| OpEx % of Revenue | - | 64.01% | 55.26% | 50.99% | 49.99% | 33.7% |
| Selling, General & Admin | 1.54M | 3.35M | 3.81M | 3.8M | 4.31M | 2.92M |
| SG&A % of Revenue | - | 50.08% | 41.59% | 41.66% | 33.67% | 25.4% |
| Research & Development | 981.09K | 930.9K | 1.25M | 852.76K | 1.82M | 954.08K |
| R&D % of Revenue | - | 13.92% | 13.67% | 9.34% | 14.24% | 8.3% |
| Other Operating Expenses | 48.91K | 0 | 0 | 0 | 266.48K | 0 |
| Operating Income | 63.97K | -486.29K | -2.12M | -1.42M | -777.83K | 9.08K |
| Operating Margin % | 0.92% | -7.27% | -23.17% | -15.51% | -6.08% | 0.08% |
| Operating Income Growth % | - | 77.08% | -49.79% | -82.06% | -8665.51% | - |
| EBITDA | 273.67K | -245.07K | -1.71M | -883.62K | -227.08K | 682.78K |
| EBITDA Margin % | 3.94% | -3.67% | -18.64% | -9.68% | -1.77% | 5.94% |
| EBITDA Growth % | - | 85.64% | -93.11% | -289.13% | -133.26% | - |
| D&A (Non-Cash Add-back) | 209.7K | 241.22K | 414.92K | 532.53K | 550.76K | 673.7K |
| EBIT | 170.77K | -365.84K | -1.9M | -1.1M | -601.88K | 533.75K |
| Net Interest Income | -67.56K | -153.87K | -203.78K | -145.66K | -137.61K | -61.33K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 67.56K | 153.87K | 203.78K | 145.66K | 137.61K | 61.33K |
| Other Income/Expense | 39.25K | -33.41K | 17.16K | 173.59K | 38.34K | 463.34K |
| Pretax Income | 103.21K | -519.71K | -2.1M | -1.24M | -739.49K | 472.42K |
| Pretax Margin % | 1.49% | -7.77% | -22.99% | -13.61% | -5.78% | 4.11% |
| Income Tax | 0 | 16 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | -0% | 0% | 0% | 0% | 0% |
| Net Income | 95.02K | -396.56K | -2.01M | -1.18M | -730.69K | 522.08K |
| Net Margin % | 1.37% | -5.93% | -21.92% | -12.89% | -5.71% | 4.54% |
| Net Income Growth % | - | 80.23% | -70.42% | -61.1% | -239.96% | - |
| Net Income (Continuing) | 103.21K | -519.72K | -2.1M | -1.24M | -739.49K | 472.42K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -136.16K | -344.35K | -211.12K | -136.16K | -76.97K | -65.78K |
| EPS (Diluted) | - | 0.00 | -0.06 | -0.03 | -0.02 | 0.01 |
| EPS Growth % | - | 100% | -70.2% | -66.99% | -240.27% | - |
| EPS (Basic) | - | 0.00 | -0.06 | -0.03 | -0.02 | 0.01 |
| Diluted Shares Outstanding | 34.38M | 0 | 33.75M | 33.75M | 35M | 35M |
| Basic Shares Outstanding | 34.38M | 0 | 33.75M | 33.75M | 35M | 35M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Imminent liquidity and solvency crisis
As indicated by the most recent financial data, RYET experienced a 13.9% year-over-year revenue decline, reflecting significant challenges in securing new institutional contracts within the competitive Chinese educational technology landscape, which raises concerns regarding the long-term durability of its current project-based revenue model.
The revenue drop suggests that the company's reliance on localized government procurement cycles is becoming increasingly precarious. Investors should monitor whether this trend represents a temporary cyclical downturn or a structural loss of market share to larger, better-capitalized incumbents.
According to the comparative income statement analysis, RYET's gross margin expanded from 29.4% in 2022Q4 to 48.1% in 2023Q4, a shift that likely reflects a change in product mix rather than sustainable pricing power or improved operational efficiency in its core hardware offerings.
While the margin expansion appears positive on the surface, it may be masking underlying volatility in project costs or a reduction in lower-margin hardware installations. The inability to maintain consistent margins suggests that the company lacks the scale required to exert meaningful influence over its supply chain.
Based on reported figures, the company's transition from a -15.1% operating margin in 2022Q4 to a 19.6% margin in 2023Q4 suggests a temporary reduction in overhead, yet the absolute scale of operations remains too small to provide a reliable buffer against future revenue volatility.
The swing in operating income appears heavily dependent on cost-cutting measures rather than organic growth, which may not be sustainable in the long term. Analysts should investigate whether these expense reductions are compromising the company's ability to maintain its proprietary AI platforms.
As highlighted by the company's minimal cash reserves of $673,397, RYET faces a severe liquidity risk that could impede its ability to fund ongoing R&D and administrative requirements, potentially forcing the firm to seek dilutive financing or face a going concern qualification in future filings.
The current cash position is insufficient to support sustained operations if the revenue contraction persists. This vulnerability suggests that the company's survival is contingent upon immediate, successful contract wins or external capital injections, both of which appear uncertain given the current market environment.
Quick answers to the most common questions about buying RYET stock.
For fiscal year 2025, Ruanyun Edai Technology Inc. Ordinary shares (RYET) reported total revenue of $6.7M. This represents a 41.9% decline compared to $11.5M in 2021.
Ruanyun Edai Technology Inc. Ordinary shares (RYET) reported a net loss of $0.4M for the fiscal year ending 2025.
Ruanyun Edai Technology Inc. Ordinary shares (RYET) reported an operating income of $-0.5M, resulting in an operating profit margin of -7.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Ruanyun Edai Technology Inc. Ordinary shares (RYET) generated $3.8M in gross profit for the year, representing a gross profit margin of 56.7%. This demonstrates the company's core pricing power and production efficiency.