Virtual Mind Holding Company Limited (1520.HK) reported QQ2 2025 revenue of HKD 11.56 million, a year-over-year decline of approximately 53.6%, with gross profit of HKD 91 thousand and a gross margin of about 0.79%. The quarter delivered a material operating loss of HKD 20.70 million and a net loss of HKD 21.33 million, translating to an EPS of -HKD 0.0299. Hefty selling, general & administrative expenses (SG&A) of HKD 20.79 million, along with total operating expenses of HKD 32.26 million, imply a structurally high overhead load relative to revenue, contributing to EBITDA of HKD -20.55 million and net income that remained deeply negative. The company also generated negative operating cash flow of HKD -13.04 million, though financing activities provided a cash inflow of HKD 16.14 million, resulting in a modest overall cash flow delta for the period. On the balance sheet, Virtual Mind held HKD 5.79 million in cash and cash equivalents and HKD 34.50 million in short-term investments, with total assets of HKD 189.19 million and total liabilities of HKD 42.70 million, yielding an equity base of HKD 147.73 million. Retained earnings remained deeply negative at HKD -465.42 million, underscoring accumulated losses prior to QQ2 2025. The company maintains a healthy current ratio (3.64x) and quick ratio (3.18x) driven by sizable current assets, but the cash ratio sits at 0.15x, highlighting tight immediate liquidity on a cash-only basis despite liquidity cushions from investments. Given the lack of an explicit forward guidance in the data provided, the near-term outlook hinges on margin recovery, SG&A containment, and any strategic actions to improve cash conversion and working capital efficiency. Management commentary, if available, would be critical to calibrate the execution plan for 2025-2026. Overall, the QQ2 results portray a high-cost structure and continued losses in a modest revenue environment, with liquidity support from financing activity offsetting but not eliminating operating underperformance.