Executive Summary
Regal Partners reported QQ2 2025 revenue of 41.915 million CNY, up meaningfully on a YoY basis but with a steep drag from operating expenses that produced an EBITDA loss of 18.245 million CNY and a net loss of 28.886 million CNY. While gross profit rose to 11.196 million CNY (gross margin 26.7%), the company’s operating expenses (SG&A plus other operating costs) totaled 30.666 million CNY, yielding an operating loss of 19.470 million CNY for the quarter. The resulting negative net income and a per-share loss of 0.0096 CNY underscore a significant profitability gap despite the top-line expansion. Liquidity metrics are notably weak, with a current ratio of 0.454 and a cash ratio of 0.0137, signaling tight short-term liquidity and potential funding pressures as the company scales. The YoY revenue uplift contrasts starkly with deteriorating profitability, suggesting that near-term value creation hinges on cost discipline, margin recovery, and more efficient capital deployment. Absent explicit forward-looking guidance from management in QQ2 2025, the investment narrative remains contingent on tangible improvements in gross margins, SG&A containment, and balance-sheet deleveraging.
Key Performance Indicators
QoQ: 0.00% | YoY:-1 341.07%
QoQ: 0.00% | YoY:-1 166.67%
Key Insights
Revenue: 41.915 million CNY (YoY growth 88.74%, QoQ 0.00%). Gross Profit: 11.196 million CNY (YoY growth 195.06%, QoQ 0.00%), Gross Margin: 26.71%. Operating Income: -19.470 million CNY (YoY change not provided; QoQ 0.00%), EBITDA: -18.245 million CNY (margin -43.53%), Net Income: -28.886 million CNY (Net Margin -68.92%), EPS: -0.0096 CNY. Profitability and margins have deteriorated from a pre-existing base, as operating expenses remain elevated relative to revenue. Liquidity: Current Ratio 0.45...
Financial Highlights
Revenue: 41.915 million CNY (YoY growth 88.74%, QoQ 0.00%). Gross Profit: 11.196 million CNY (YoY growth 195.06%, QoQ 0.00%), Gross Margin: 26.71%. Operating Income: -19.470 million CNY (YoY change not provided; QoQ 0.00%), EBITDA: -18.245 million CNY (margin -43.53%), Net Income: -28.886 million CNY (Net Margin -68.92%), EPS: -0.0096 CNY. Profitability and margins have deteriorated from a pre-existing base, as operating expenses remain elevated relative to revenue. Liquidity: Current Ratio 0.454, Quick Ratio 0.411, Cash Ratio 0.0137, Days Sales Outstanding 21.29, Inventory Days 43.83, Payables Days 90.23, Cash Conversion Cycle -25.10 days. Leverage and capital structure: Debt Ratio 1.573, Debt-to-Equity -1.201, Total Debt to Capitalization 5.97, Enterprise Value Multiple -23.47. Valuation signals remain challenging given negative earnings, despite a reasonable price-to-sales ratio of 3.56x and price-to-book at -0.633x (indicative of asset-light stock with weak equity cushion).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
41.92M |
88.74% |
0.00% |
| Gross Profit |
11.20M |
195.06% |
0.00% |
| Operating Income |
-19.47M |
55.83% |
0.00% |
| Net Income |
-28.89M |
-1 341.07% |
0.00% |
| EPS |
-0.01 |
-1 166.67% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-46.5%
Management Commentary
No earnings-call transcript was provided for QQ2 2025. Consequently, there are no management quotes or thematic highlights to extract from a conference call in the dataset. (Transcript data: empty)
Forward Guidance
Management did not publish explicit forward guidance in the QQ2 2025 release. Given the current profitability gap and liquidity stress, any forward outlook should be anchored on three levers: (1) gross margin stabilization or expansion toward the mid- to high-20s percentage range, supported by product mix optimization and procurement efficiency; (2) SG&A discipline to reduce fixed-cost absorption and achieve operating leverage as revenue scales; and (3) balance-sheet discipline to improve liquidity metrics and reduce leverage. Absent quantified targets, the assessment of achievability remains contingent on management's ability to execute cost control, accelerate revenue growth through expanded distribution (including e-commerce and international markets), and optimize working capital. Investors should monitor quarterly changes in gross margin, SG&A intensity as a percent of revenue, and any announced capital expenditure or strategic pivots (e.g., channel expansion, product innovations such as smarter sofas) that could alter the risk-reward profile.