Executive Summary
Xuan Wu Cloud Technology Holdings Limited reported QQ2 2025 revenue of 410.9 million CNY, up 63% year over year, signaling strong demand for its CRM cloud offerings in the PRC. Despite topline growth, the company posted negative EBITDA (-25.9 million CNY) and a net loss (-25.9 million CNY), with operating income at -26.97 million CNY. The negative profitability reflects ongoing investments in product development and market expansion, including high SG&A and R&D expenditures (SG&A of 71.64 million CNY and R&D of 28.60 million CNY), as the firm scales its CRM platform and broadens go-to-market efforts. On a per-share basis, operating cash flow per share stands at 0.0574 CNY and free cash flow per share at 0.0569 CNY, while cash per share is 0.176 CNY, indicating some per-share cash generation despite the GAAP losses. The balance sheet shows relatively modest leverage (debt ratio 0.24, debt-to-equity 0.49) and solid liquidity (current ratio 1.83). Market multiples reflect the loss-making stage (P/E negative; P/S 1.25; P/B 1.68), underscoring a growth-at-risk profile: investors are compensated for top-line growth and platform scale, but a clear path to sustained profitability remains a key overhang.
The quarter’s revenue growth was broad-based but profitability remains the primary challenge. Management commentary is not included in the provided data, limiting the ability to quote specific forward-looking targets or strategic pivots. Going forward, the key questions for investors are the trajectory of gross margin as product mix shifts, the pace of operating expense optimization, and the durability of ARR/recurring revenue growth amid competitive pressure in China’s SaaS CRM space. Monitoring will focus on whether the company can convert top-line momentum into sustainable earnings and free cash flow, while maintaining a prudent balance sheet as it scales.
Key Performance Indicators
QoQ: 0.00% | YoY:-872.94%
QoQ: 0.00% | YoY:-487.39%
QoQ: 0.00% | YoY:-538.18%
Key Insights
Revenue: 410,907,000 CNY; YoY +63.12%; QoQ 0.00%
Gross Profit: 74,950,000 CNY; Gross Margin 18.24%; YoY +38.12%; QoQ 0.00%
Operating Income: -26,968,000 CNY; Operating Margin -6.56%; YoY change not explicitly provided (negative); QoQ 0.00%
Net Income: -25,874,000 CNY; Net Margin -6.30%; YoY -487.39%; QoQ 0.00%
Earnings per Share (EPS): -0.0482 CNY; Diluted EPS: -0.0482 CNY; Weighted Avg Shares (out): 536,270,933
EBITDA: -25,907,000 CNY; EBITDA Margin -6.30%
Liquidity and leverage: Current Ratio...
Financial Highlights
Revenue: 410,907,000 CNY; YoY +63.12%; QoQ 0.00%
Gross Profit: 74,950,000 CNY; Gross Margin 18.24%; YoY +38.12%; QoQ 0.00%
Operating Income: -26,968,000 CNY; Operating Margin -6.56%; YoY change not explicitly provided (negative); QoQ 0.00%
Net Income: -25,874,000 CNY; Net Margin -6.30%; YoY -487.39%; QoQ 0.00%
Earnings per Share (EPS): -0.0482 CNY; Diluted EPS: -0.0482 CNY; Weighted Avg Shares (out): 536,270,933
EBITDA: -25,907,000 CNY; EBITDA Margin -6.30%
Liquidity and leverage: Current Ratio 1.833; Quick Ratio 1.833; Cash Ratio 0.293; Debt Ratio 0.242; Debt to Equity 0.492; Total Debt/Capitalization 0.330; Cash per Share 0.176 CNY; Operating Cash Flow per Share 0.0574 CNY; Free Cash Flow per Share 0.0569 CNY; Price to Book 1.675x; Price to Sales 1.250x; Price to Earnings (negative); Enterprise Value Multiple -22.00x; Dividend Yield 0.0584%; Capital expenditure coverage 106.50%; Free Cash Flow Operating Cash Flow Ratio 0.991
Asset turnover 0.658x; Fixed Asset Turnover 43.22x; Receivables Turnover 1.564x; DSO 57.53 days; CCC 33.52 days; Inventory Turnover 0x (no inventory in SaaS model); R&D as a share of revenue ~6.95%; SG&A as a share of revenue ~17.46%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
410.91M |
63.12% |
0.00% |
| Gross Profit |
74.95M |
38.12% |
0.00% |
| Operating Income |
-26.97M |
-872.94% |
0.00% |
| Net Income |
-25.87M |
-487.39% |
0.00% |
| EPS |
-0.05 |
-538.18% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-6.56%
operatingCashFlowPerShare
$0.06
freeCashFlowPerShare
$0.06
dividendPayoutRatio
-1.16%
Management Commentary
No earnings call transcript is provided for QQ2 2025; as a result, there are no management quotes available in the provided data. Analysis is therefore anchored to the disclosed financials and ratios rather than verbatim management commentary.
Forward Guidance
Management guidance for QQ2 2025 is not provided in the supplied materials. In the absence of explicit targets, the forward-looking assessment relies on revenue trajectory, cost structure, and near-term profitability levers. If the company sustains or accelerates ARR growth and optimizes operating expenses, there is potential for margin improvement in 2026 as the cloud CRM platform achieves scale and reduces per-unit CAC. Key factors to monitor include: (i) gross margin trajectory as product mix shifts toward higher-margin SaaS offerings and upsell to existing customers; (ii) operating expense discipline, particularly SG&A and R&D intensity relative to revenue; (iii) customer acquisition costs, churn, and net revenue retention; (iv) ARR/contract value expansion and cross-sell across verticals (FMCG, fintech, media, telecom, government-related sectors); (v) working capital dynamics given a DSO of ~57.5 days and CCC around 33.5 days. In a plausible scenario, if gross margin expands toward 22-25% and opex as a percentage of revenue gradually declines as scale improves, EBITDA and net margins could move toward breakeven in the next 4–8 quarters, contingent on continued revenue growth and cost control.