Maiyue Technology Ltd (2501.HK) Q2 2025 Earnings Report

Maiyue Technology Ltd delivered a challenging QQ2 2025 performance with revenue of 12.0415 million CNY and gross profit of 3.342 million CNY, yielding a gross margin of 27.75%. The quarter showed an operating loss of 0.564 million CNY and a net loss of 5.2725 million CNY, driven by a heavy non-operating expense load and a sizable operating expense base. Although YoY revenue declined by 80.9%, the data set reports a QoQ growth of 100.0% in revenue, suggesting a potential data inconsistency or a timing effect in project recognition; in any case, sequential dynamics did not translate into meaningful profitability. EBITDA was negative at 0.434 million CNY and the operating margin stood at -4.68%, underscoring cost discipline and project mix challenges. From a liquidity and balance sheet perspective, Maiyue shows a current ratio of 1.672 and a cash ratio of 0.0775, indicating limited cash liquidity despite modest short-term assets. Leverage remains moderate (debt ratio 0.359, debt-to-equity 0.777) with a long-term debt to capital of 6.16%. On a per-share basis, earnings were negative (-0.0105 CNY) and implied negative cash flow metrics (operating cash flow per share and free cash flow per share are reported as 0 in the dataset). The stock trades with a negative P/E and a P/S of roughly 17.0x, and an enterprise value multiple that is negative, highlighting investor skepticism about current earnings power. The near-term trajectory hinges on stabilizing revenue, improving gross and operating margins, and generating positive cash flow. Absent a clear improvement in profitability or a substantial backlog push from education/government IT projects, risk remains elevated for holders. Investors should monitor project wins, contract mix, and any stated management plans to rein in costs and optimize the service mix going forward.