Bairong Inc (6608.HK) Q2 2025 Earnings Report

Bairong Inc delivered a standout QQ2 2025 performance characterized by a pronounced year-over-year revenue expansion and continued profitability expansion, underpinned by a high gross margin and a strong balance sheet. Revenue reached 1,611.8 million CNY in Q2 2025, up 100.5% YoY, with gross profit of 1,176.7 million CNY and a gross margin of 73.0%. Operating income was 200.9 million CNY, yielding an operating margin of 12.46%, while net income stood at 190.3 million CNY (net margin 11.80%). Basic and diluted EPS came in at 0.42 CNY. The company also reported a solid cash-generative profile: operating cash flow per share of 0.333 CNY, free cash flow per share of 0.252 CNY, and cash per share of 7.89 CNY, alongside a current ratio of 5.83 and a debt ratio of 2.01% (0.0201). The cash conversion cycle remained favorable at approximately -5.5 days, reflecting efficient receivables collection and vendor payables dynamics.

Despite the strong quarterly results, explicit management forward guidance was not disclosed in the available transcript data. Nevertheless, the QQ2 2025 print points to a scalable software-infrastructure platform with high gross margins and disciplined cost control, supporting durable profitability amid a growth trajectory in China’s analytics, marketing, and financial services distribution segments. The stock trades at a modest multiple by traditional metrics (P/E ~5.1x, P/B ~0.82x, P/S ~2.40x), suggesting a valuation that largely prices in execution risk and China regulatory considerations. Investors should monitor policy developments affecting fintech and data services, client mix concentration, and the pace of expansion into financial services channels.)