$0.14
$0.57
bear $0.14
base $0.31
bull $0.57
margin of safety $0.11
market price* $4.00
VitaNova Life Sciences (formerly Yijia Group) is a very small company, quoted on the OTC market, that sells branded dietary supplements (the GeneCode and AMZ lines) through distributors and online channels, using contract manufacturers. In fiscal 2026 (year ended April 30, 2026) it also began trading healthy food products such as olive juice, sesame oil and aloe drinks, and it keeps a tiny consulting sideline ($15,000 of revenue). The operating business dates from November 2023; before that the company had very little revenue, so only three years of results describe what it is today. What it earns. We measure owner earnings as cash from operations, less the cash released or absorbed by working capital, less stock compensation, less maintenance spending. The company reports no equipment purchases, so the last item is zero. On that basis owner earnings were about $0.04 per share in fiscal 2024 (about $141,000), about $0.10 per share in fiscal 2025 (about $855,000) and almost nothing in fiscal 2026 (about $8,000, or $0.001 per share). Reported cash from operations in fiscal 2026 was $814,407, but $626,983 of that came from working-capital movements, chiefly $478,842 of receivables collected from the prior year's sales, and the company also recorded $179,400 of stock compensation that we treat as a real cost. We set the earnings level at the median of the three years, $0.04 per share, because the business only exists in this form for those three years and each year looks very different. Fiscal 2026 owner earnings fell about 99% from fiscal 2025. Our base case starts from the three-year median rather than assuming growth: the fiscal 2026 slump has identifiable causes in the filing (revenue from higher-margin supplements fell 27% to $1.95 million, the new food line earned only $95,903 of gross profit on $1.06 million of sales, and general and administrative costs rose $575,673, mainly legal and professional fees and stock compensation). However, the first quarter of fiscal 2027 (three months to July 31, 2026) has not yet confirmed a recovery: revenue rose to $321,576 from $103,899, but the net loss widened to $123,101 and operating cash flow was only $6,965. That is why we do not credit any growth and do not go above the median. What could go wrong. Sales are highly concentrated: three customers made up 54% of fiscal 2026 revenue and three made up 91% of fiscal 2025 revenue, and the company sells largely through regional distributors and channel partners. Gross margin dropped from 59% to 30%. One supplier accounted for 41% of fiscal 2026 purchases. With only three years of history, and nothing in the filings that we can point to that keeps earnings going beyond a few years, every case ends its earnings after five years. Cash. The company held $1,597,217 of cash at April 30, 2026 against $395,781 of total liabilities, which are payables, accrued expenses and taxes rather than borrowings. Cash above liabilities, about $1.20 million or $0.14 per share, is included in all three cases. It earns almost no interest, so it is not part of the earnings figures. Much of it came from collecting receivables, so we count it once, here. Bear case, $0.14 per share. Owner earnings stay at roughly the fiscal 2026 level of about $0.001 per share, the food line continues to lose money (it lost $179,466 at the segment level in fiscal 2026) and one or more of the concentrated customers is lost, which removes what the supplement line earns. Earnings are worth about zero and the value is the cash after liabilities. Base case, $0.31 per share. Owner earnings return to the three-year median of $0.04 per share (about $330,000) and stay there for five years with no growth, then stop, since nothing in the filings shows what continues after that. Five years at 6% is worth about $0.17 per share, plus $0.14 of cash. The base case starts above the fiscal 2026 actual because it is a return to the normal level the business has reached before, not growth. Bull case, $0.57 per share. Supplement sales recover to about the fiscal 2025 result, when owner earnings were $0.10 per share, for five years: about $0.42 per share, plus $0.14 of cash. This level was achieved once, in fiscal 2025, which is why it is the upside and not the base. Other points. Most of the fiscal 2026 revenue came from customers in the United States, although the company also serves Hong Kong customers and some distributors sell through Chinese cross-border online platforms. The company has $182,400 of stock awards granted but not yet issued, and a 2025 equity plan reserves more shares, so shareholders face modest dilution. All figures are drawn from the company's annual reports for fiscal 2025 and 2026 and its quarterly report for the period ended July 31, 2026; we used no management guidance.