Executive Summary
QQ1 2025 for Legend Strategy International Holdings Group Company Limited shows top-line momentum with revenue of HKD 12.72 million, up 33.19% year over year and 17.91% quarter over quarter. However, profitability remains deeply negative, with EBITDA of HKD -1.70 million and net income of HKD -6.74 million, reflecting meaningful fixed-cost absorption and elevated other expenses. Gross profit was HKD 4.45 million (gross margin 34.97%), but gross margin declined YoY and QoQ, signaling cost pressures or shifting mix within the lodging operations. The quarter underscores a transition risk: revenue growth is not yet translating into earnings power, raising questions about scale, cost discipline, and the viability of the current operating structure without additional strategic leverage (e.g., asset-light initiatives or higher-margin consultancy revenue). Given the lack of balance sheet and cash-flow detail in the provided data, the sustainability of the losses and the need for financing considerations remain key investor watchpoints.
Key Performance Indicators
QoQ: -27.46% | YoY:-5.33%
QoQ: 65.56% | YoY:-385.02%
QoQ: 44.58% | YoY:-519.93%
QoQ: 65.98% | YoY:-330.56%
Key Insights
Revenue: HKD 12,722,500; YoY +33.19%; QoQ +17.91%. Gross Profit: HKD 4,449,500; Gross Margin 34.97%; YoY -5.33%; QoQ -27.46%. EBITDA: HKD -1,704,500; EBITDA Margin -13.40%. Operating Income: HKD -6,109,500; Operating Margin -48.02%. Net Income: HKD -6,742,000; Net Margin -52.99%. EPS: -0.0083; EPS Diluted: -0.0083. Depreciation & Amortization: HKD 1,229,000. Other Expenses: HKD 10,559,000; Cost and Expenses: HKD 18,832,000. Income Before Tax: HKD -7,386,500; EBITDARatio: -0.134. Weighted Ave...
Financial Highlights
Revenue: HKD 12,722,500; YoY +33.19%; QoQ +17.91%. Gross Profit: HKD 4,449,500; Gross Margin 34.97%; YoY -5.33%; QoQ -27.46%. EBITDA: HKD -1,704,500; EBITDA Margin -13.40%. Operating Income: HKD -6,109,500; Operating Margin -48.02%. Net Income: HKD -6,742,000; Net Margin -52.99%. EPS: -0.0083; EPS Diluted: -0.0083. Depreciation & Amortization: HKD 1,229,000. Other Expenses: HKD 10,559,000; Cost and Expenses: HKD 18,832,000. Income Before Tax: HKD -7,386,500; EBITDARatio: -0.134. Weighted Average Shs Out: 815,235,792; Weighted Average Shs Out Diluted: 815,217,610.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
12.72M |
33.19% |
17.91% |
| Gross Profit |
4.45M |
-5.33% |
-27.46% |
| Operating Income |
-6.11M |
-385.02% |
65.56% |
| Net Income |
-6.74M |
-519.93% |
44.58% |
| EPS |
-0.01 |
-330.56% |
65.98% |
Management Commentary
No earnings call transcript was provided in the supplied data, so there are no management quotes or theme-based highlights to extract. Expected themes in a typical QQ1 call would include commentary on occupancy trends, cost-control initiatives, and strategic shifts toward asset-light or higher-margin revenue lines; however, these cannot be reported without the transcript.
Transcript data not available for QQ1 2025; no quotes to report.
— N/A
Transcript data not available for QQ1 2025; no quotes to report.
— N/A
Forward Guidance
No formal forward guidance is included in the QQ1 2025 results data. Given the revenue uptick but material profit deterioration, the near-term guidance likely hinges on: (1) improving unit economics and occupancy leverage, (2) reducing fixed and other operating expenses (notably the HKD 10.56 million in other expenses for Q1 2025), and (3) evaluating strategic levers such as asset-light consultancy revenue or optimization of the property portfolio. In our assessment, achievability will depend on China travel demand trends, policy environment, and the company’s ability to scale profitability through cost discipline and potential strategic partnerships.