Executive Summary
XXF Group Holdings Ltd reported strong top-line growth for QQ2 2025, underpinned by a substantial year-on-year revenue increase and expanding gross profits. Revenue rose to 613.07 million CNY, up 85.4% YoY, with gross profit of 230.87 million CNY and a gross margin of 37.66%, signaling improved product mix or pricing discipline within credit-related services. EBITDA stood at 186.14 million CNY, producing an EBITDA margin of 30.36% and an operating income of 114.82 million CNY (operating margin 18.73%). Net income reached 22.49 million CNY, with a net margin of 3.67% and basic EPS of 0.0146 CNY. Despite expanding profitability at the line level, the company carries elevated leverage (debt ratio 0.72 and debt-to-capitalization 0.744) and reports negative per-share operating cash flow (-0.0188) and negative free cash flow per share (-0.102), highlighting cash-generation headwinds even as earnings scale. Valuation remains rich, with a price-to-earnings around 104x and price-to-book around 11x, suggesting high investor expectations for growth but also elevated risk if cash flow does not align with market pricing. No earnings call transcript data were provided in the source, limiting qualitative insight from management commentary. Investors should monitor credit quality, portfolio growth, and liquidity management while weighing the high leverage and cash flow constraints against the upside from a growing China auto-finance market.
Key Performance Indicators
Key Insights
Revenue: 613,065,000 CNY; YoY +85.40%, QoQ +0.00% | Gross Profit: 230,874,000 CNY; YoY +101.56%, QoQ +0.00% | Operating Income: 114,818,000 CNY; YoY +119.76%, QoQ +0.00% | EBITDA: 186,135,000 CNY; YoY +? (not disclosed in YoY) | Net Income: 22,486,000 CNY; YoY +121.70%, QoQ +0.00% | EPS (basic): 0.0146 CNY; YoY +121.21%, QoQ +0.00% | EPS (diluted): 0.0138 CNY; YoY +? (not disclosed) | Gross Margin: 37.66%; Operating Margin: 18.73%; Net Margin: 3.67% | Current Ratio: 1.31; Quick Ratio: 1.19; Cash...
Financial Highlights
Revenue: 613,065,000 CNY; YoY +85.40%, QoQ +0.00% | Gross Profit: 230,874,000 CNY; YoY +101.56%, QoQ +0.00% | Operating Income: 114,818,000 CNY; YoY +119.76%, QoQ +0.00% | EBITDA: 186,135,000 CNY; YoY +? (not disclosed in YoY) | Net Income: 22,486,000 CNY; YoY +121.70%, QoQ +0.00% | EPS (basic): 0.0146 CNY; YoY +121.21%, QoQ +0.00% | EPS (diluted): 0.0138 CNY; YoY +? (not disclosed) | Gross Margin: 37.66%; Operating Margin: 18.73%; Net Margin: 3.67% | Current Ratio: 1.31; Quick Ratio: 1.19; Cash Ratio: 0.26 | DSO: 63.76 days; DIO: 36.05 days; DPO: 6.71 days; CCC: 93.10 days | Receivables Turnover: 1.412x; Payables Turnover: 13.41x; Inventory Turnover: 2.50x | Debt Ratio: 0.72; Debt/Equity: 2.90x; Long-Term Debt to Capitalization: 0.597; Total Debt to Capitalization: 0.744 | OCF per Share: -0.0188; FCF per Share: -0.102; Cash per Share: 0.203 | Price to Earnings: 104.04x; Price to Book: 11.05x; Price to Sales: 15.26x; Enterprise Value Multiple: 61.67x | Dividend Yield: 0% | Payout Ratio: 0%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
613.07M |
85.40% |
0.00% |
| Gross Profit |
230.87M |
101.56% |
0.00% |
| Operating Income |
114.82M |
119.76% |
0.00% |
| Net Income |
22.49M |
121.70% |
0.00% |
| EPS |
0.01 |
121.21% |
0.00% |
Key Financial Ratios
operatingProfitMargin
18.7%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.1
priceEarningsRatio
104.04
Management Commentary
No earnings call transcript data provided for QQ2 2025. Consequently, no management quotes or thematic highlights from an earnings call are available in the source. Investors should seek the accompanying transcript or investor presentation for granular commentary on loan mix, asset quality, and cost-control initiatives.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. Given the scale of revenue growth and improving gross margins, the potential trajectory depends on: (1) credit portfolio quality and aging; (2) sustainable loan growth versus funding costs; (3) moderation of working capital needs to improve operating cash flow; (4) continued leverage management and capital efficiency. In a macro backdrop of tightening liquidity and regulatory scrutiny of consumer credit, management should communicate targeted portfolio growth, credit-loss expectations, and capital adequacy initiatives to validate the current lofty valuation. Investors should monitor quarterly changes in receivables, impairment charges, funding costs, and any new sourcing channels or partnerships that could bolster risk-adjusted returns.