Yida China Holdings (3639.HK) Q2 2025 Earnings Report

Given the quarter’s mixed signals, Yida China presents a high-risk, high-uncertainty investment case. On one hand, core operating activity shows a positive EBITDA and operating profit in QQ2 2025, suggesting that the underlying business of property development, investment properties, and business park management remains active. On the other hand, the headline bottom line is dragged into a sizable loss by a substantial non-operating item (-364.68m CNY), severely depressing net income and obscuring the ongoing profitability of the core business. Liquidity is constrained with a current ratio of 0.54 and a cash ratio of 0.0074, while leverage remains elevated (debt to capitalization 0.641; equity multiplier 5.22). The market is pricing the stock at a deep discount (P/B ~0.022x; P/S ~0.20x), reflecting the current earnings volatility and balance-sheet risks, rather than a view on long-run asset value. Investment stance: Maintain a cautious to negative stance until there is a credible path to deleverage and improved cash generation. Near-term catalysts would include: (1) reduction or reversal of non-operating charges or a clearly explained restoration of operating cash flow; (2) refinancing of near-term debt and reduction of financing costs; (3) selective asset disposals or strategic partnerships to shore up liquidity; (4) visibility on government-supported park projects or favorable policy measures that could ease financing constraints. If the company can deliver a credible deleveraging plan, stabilize working capital, and demonstrate a sustainable cash flow trajectory, the valuation could begin to reflect the asset base more clearly. In the meantime, investors should monitor debt maturities, asset sale milestones, impairment reviews, and any new disclosures on government-backed project exposure and capital allocation efficiency.