Maiyue Technology Ltd reported QQ1 2025 revenue of 12,041,500 CNY, up 9.27% year over year from Q1 2024, but a steep 90.47% decline versus the prior quarter (Q4 2024), underscoring seasonality and a project-based revenue mix. The quarter produced a net loss of 5,272,500 CNY and an adjusted EBITDA of -434,250 CNY, with operating income of -563,500 CNY. The negative bottom line was amplified by total other income/expenses net of -4,289,000 CNY, suggesting substantial one-off or non-operational charges in the period. Gross profit of 3,342,000 CNY yielded a gross margin of 27.75%, while selling, general & administrative expenses remained the dominant cost driver, totaling 6,793,000 CNY, with R&D at 427,500 CNY and depreciation/amortization at 259,250 CNY. The Q4 2024 quarter, by contrast, showed materially stronger profitability (net income of 7,662,500 CNY and EBITDA of 11,850,000 CNY), indicating pronounced quarterly volatility and potential one-off effects or revenue mix shifts. Management commentary (where available) will be critical to interpret backlog dynamics, project phasing, and any non-recurring items. Investors should monitor how Maiyue converts pipeline activity into sustainable profitability and whether cost structure normalization accompanies any top-line improvement.
Overview of QQ1 2025 metrics with YoY and QoQ context:
- Revenue: 12,041,500 CNY; YoY change +9.27%; QoQ change -90.47% (Q4 2024: 126,341,000 CNY)
- Gross Profit: 3,342,000 CNY; Gross Margin 27.75%; YoY gross profit change -14.64%; QoQ change -89.00%
- Operating Income: -563,500 CNY; Operating Margin -4.68%; YoY change +90.58% (from -5,983,000 CNY in Q1 2024); QoQ change -104.77%
- EBITDA: -434,250 CNY; EBITDA Margin -3.61%
- Total Other Income/Expenses Net: -4,289,000 CNY
- Income Before Tax: -5,252,500 CNY; Income Tax Expense: 485,500 CNY; Net Income: -5,272,500 CNY; Net Margin: -43.79%
- EPS (basic/diluted): -0.0105 CNY; Weighted Avg Shares: 500,000,000
- Observations: The quarter shows a negative bottom line driven largely by other income/expense items; gross margin remains healthy relative to revenue but operating leverage is weak due to SG&A load. YoY improvements in operating income and EPS are masked by a large net loss on a single quarter basis, highlighting the volatility of project-based revenue in Maiyue’s IT services model.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
12.04M
9.27%
-90.47%
Gross Profit
3.34M
-14.64%
-89.00%
Operating Income
-563.50K
90.58%
-104.77%
Net Income
-5.27M
29.19%
-168.81%
EPS
-0.01
29.53%
-168.63%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript-derived insights unavailable: no earnings call transcript was provided in the data set. If available, the following themes would be highlighted (and quotes attributed):
- Strategy and growth: Commentary on pipeline in education and government IT solutions, cross-sell opportunities, and expansion plans across PRC regions.
- Operations and execution: Discussion of project mix, milestone timing, and efforts to optimize project delivery and reduce non-operating costs.
- Market conditions: Management remarks on government IT procurement cycles, policy support for digitalization in education, and competitive dynamics in IT services in China.
- Financial discipline: Focus on cost control, SG&A optimization, and potential non-recurring items affecting quarterly profitability.
Note: To provide verbatim quotes and named quotes from management, please supply the earnings call transcript.
Transcript not provided in the dataset.
— N/A
Transcript not provided in the dataset.
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Forward Guidance
There is no formal forward guidance disclosed in the provided data for QQ1 2025. Given the quarterly volatility observed between Q4 2024 and Q1 2025, investors should monitor: (1) backlog development and project phasing, (2) progression toward gross margin stabilization or improvement, (3) cost control initiatives to reduce SG&A intensity, (4) cash flow trajectory and any debt/financing needs, and (5) government/education IT contractAwards cadence and policy support. The absence of explicit guidance suggests management may be calibrating expectations for H2 2025 based on order intake and project delivery timing. If management reiterates a Moscow-style pipeline or backlog growth in the next quarter, that would be a positive signal; otherwise, negative cash flow and continued quarterly variability could pressuring valuations.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
2501.HK Focus
27.75%
N/A
N/A
N/A
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Medium-to-high risk, high-variance growth story. The QQ1 2025 results show revenue growth versus prior year but a meaningful net loss driven by non-operating items and elevated SG&A. The contrast with the robust profitability observed in Q4 2024 suggests seasonality and potential one-offs impactful on quarterly comparisons. Investors should await clearer visibility on backlog conversion, sustainable margin trajectory, and cash flow. If subsequent quarters demonstrate a meaningful reduction in SG&A intensity, stabilization of gross margins around the low-to-mid 20s percent, and a positive cash flow inflection, Maiyue could transition from a high-uncertainty growth stock to a more defensively positioned IT services name in China's education/government segment. Key catalysts to watch: backlog growth, contract awards cadence, and any disclosed non-recurring items in the next quarter results.
Key Investment Factors
Growth Potential
Potential upside from continued PRC digitalization across education and government sectors. Long-term growth drivers include expansion of integrated IT solutions, maintenance contracts, and hardware/software resales within a project-based, government-led procurement cycle. The Q1 2025 YoY revenue uptick hints at underlying demand, but a clear path to sustainable profitability requires stronger top-line visibility and improved operating leverage.
Profitability Risk
Key risks include: (i) dependence on government/education IT projects with lumpy revenue recognition and lengthy sales cycles; (ii) near-term profitability pressures from high SG&A relative to revenue; (iii) regulatory and policy shifts impacting IT procurement and subsidies; (iv) competitive intensity in PRC IT services and potential pricing pressure; (v) lack of transparent balance sheet and cash-flow data in the provided set, complicating liquidity assessment; and (vi) significant quarterly variability (Q4 2024 strong, Q1 2025 weak) that could re-emerge with seasonality.
Financial Position
Balance sheet and cash-flow specifics are not provided in the dataset. The QQ1 2025 period shows net losses despite a positive gross margin, underscoring the importance of monitoring liquidity, working capital, and debt levels in the upcoming filings. A potential emphasis on backlogs and receivables collection, plus any available covenant limits, will be key to assess financial flexibility.
SWOT Analysis
Strengths
Integrated IT solutions provider with end-to-end services (development, integration, maintenance) and hardware/software sourcing capabilities.
Established presence in education and government IT solutions markets in PRC with a long operating history since 2003.
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