Executive Summary
Unity Enterprise Holdings Limited (2195.HK) reported a mixed QQ2 2024: revenue rose strongly year-over-year but profitability collapsed. Revenue reached HKD 33.6 million, up 65.7% YoY, while gross profit was negative by HKD 6.84 million, yielding a gross margin of -20.37%. The company posted an operating loss of HKD 9.46 million and a net loss of HKD 9.52 million, resulting in negative earnings per share of -0.0092. Despite the top-line growth, cost of revenue overwhelmed revenue, pressuring margins and underscoring potential project mix challenges and fixed-cost absorption issues during the quarter.
Key Performance Indicators
QoQ: 0.00% | YoY:-145.94%
QoQ: 0.00% | YoY:-145.75%
QoQ: 0.00% | YoY:-194.64%
QoQ: 0.00% | YoY:-187.50%
Key Insights
Revenue: HKD 33.60m (YoY +65.69%, QoQ +0.00%).
Gross Profit: HKD -6.8445m; Gross Margin: -20.37% (YoY: -145.94% swing; QoQ: 0.00%).
Operating Income: HKD -9.4615m; Operating Margin: -28.16% (YoY: -145.75%; QoQ: 0.00%).
Net Income: HKD -9.517m; Net Margin: -28.32% (YoY: -194.64%; QoQ: 0.00%).
EPS (Diluted): HKD -0.0092; YoY/EPS: -187.50%.
Liquidity and cash flow: Net cash provided by operating activities HKD 4.155m; Free cash flow HKD 4.1545m; Cash and cash equivalents HKD 17.45m; Net debt positi...
Financial Highlights
Revenue: HKD 33.60m (YoY +65.69%, QoQ +0.00%).
Gross Profit: HKD -6.8445m; Gross Margin: -20.37% (YoY: -145.94% swing; QoQ: 0.00%).
Operating Income: HKD -9.4615m; Operating Margin: -28.16% (YoY: -145.75%; QoQ: 0.00%).
Net Income: HKD -9.517m; Net Margin: -28.32% (YoY: -194.64%; QoQ: 0.00%).
EPS (Diluted): HKD -0.0092; YoY/EPS: -187.50%.
Liquidity and cash flow: Net cash provided by operating activities HKD 4.155m; Free cash flow HKD 4.1545m; Cash and cash equivalents HKD 17.45m; Net debt position reported as negative (net cash) of HKD -14.69m. Current ratio 2.77; Quick ratio 2.77; Cash ratio 0.283.
Capital expenditure: HKD -0.5m; Net change in cash: HKD 3.675m; Cash end of period: HKD 3.675m (noting some inconsistencies in cash line items across disclosures).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
33.60M |
65.69% |
0.00% |
| Gross Profit |
-6.84M |
-145.94% |
0.00% |
| Operating Income |
-9.46M |
-145.75% |
0.00% |
| Net Income |
-9.52M |
-194.64% |
0.00% |
| EPS |
-0.01 |
-187.50% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-28.2%
operatingCashFlowPerShare
$0
Management Commentary
No QQ2 2024 earnings call transcript is provided in the data. Consequently, management quotes and thematic insights from an earnings call are not available within this dataset.
Forward Guidance
No explicit forward guidance was disclosed for QQ3/2024 or beyond in the provided data. Given the sectoral cyclicality of HK construction and RMAA activities, the near-term trajectory will hinge on: (i) project wins and mix that enable better gross margins, (ii) working capital discipline to reduce extraordinarily long receivable days, and (iii) cost control to absorb fixed costs as utilization improves. Investors should monitor: order backlog progression, government infrastructure and building retrofit spending, receivables aging, and the company’s ability to convert operating cash flow into sustained profit.