Executive Summary
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.)
Key Performance Indicators
Key Insights
Revenue: 1,611,797,000 CNY, YoY +100.5%, QoQ +0.0%; Gross Profit: 1,176,669,000 CNY, Gross Margin: 73.00%; Operating Income: 200,894,000 CNY, Operating Margin: 12.46%; EBITDA: 132,424,000 CNY, EBITDA Margin: 8.22%; Net Income: 190,264,000 CNY, Net Margin: 11.80%; EPS: 0.42 CNY; R&D: 301,542,000 CNY; SG&A: 757,980,000 CNY; Interest/Taxes: Tax Expense 174,000 CNY; D&A: 15,277,000 CNY; ROA: 3.39%; ROE: 4.02%; ROCE: 4.16%; Current Ratio: 5.83; Debt Ratio: 2.01%; Cash per Share: 7.89; Ope...
Financial Highlights
Revenue: 1,611,797,000 CNY, YoY +100.5%, QoQ +0.0%; Gross Profit: 1,176,669,000 CNY, Gross Margin: 73.00%; Operating Income: 200,894,000 CNY, Operating Margin: 12.46%; EBITDA: 132,424,000 CNY, EBITDA Margin: 8.22%; Net Income: 190,264,000 CNY, Net Margin: 11.80%; EPS: 0.42 CNY; R&D: 301,542,000 CNY; SG&A: 757,980,000 CNY; Interest/Taxes: Tax Expense 174,000 CNY; D&A: 15,277,000 CNY; ROA: 3.39%; ROE: 4.02%; ROCE: 4.16%; Current Ratio: 5.83; Debt Ratio: 2.01%; Cash per Share: 7.89; Operating Cash Flow per Share: 0.333; Free Cash Flow per Share: 0.252; CCC: -5.48 days; Asset Turnover: 0.287; Fixed Asset Turnover: 7.01; Receivables Turnover: 1.799; EV/Revenue: 23.74; P/B: 0.82; P/S: 2.40; P/E: 5.08; Dividend Yield: 0%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.61B |
100.48% |
0.00% |
| Gross Profit |
1.18B |
100.36% |
0.00% |
| Operating Income |
200.89M |
212.91% |
0.00% |
| Net Income |
190.26M |
201.47% |
0.00% |
| EPS |
0.42 |
200.00% |
0.00% |
Key Financial Ratios
operatingProfitMargin
12.5%
operatingCashFlowPerShare
$0.33
freeCashFlowPerShare
$0.25
Management Commentary
No QQ2 2025 earnings call transcript was provided in the data. Therefore, no management quotes are available for thematic synthesis. If a transcript becomes accessible, the highlights would be grouped by themes such as strategy, operations, market conditions, and capital allocation, with itemized context and significance for investors.
Transcript not provided for QQ2 2025 results.
— N/A
Transcript not provided for QQ2 2025 results.
— N/A
Forward Guidance
Management did not issue explicit forward guidance in the QQ2 2025 release (based on available data). Given the strong top-line growth, healthy gross margins and cash generation, a baseline assumption of continued revenue growth in the low-to-mid teens year-over-year could be reasonable if the China analytics and marketing platform expands its client base and cross-sells to banks and insurers. However, potential headwinds include regulatory changes in China fintech/insurance distribution, competitive intensity, and macroeconomic softness affecting client budgets. A cautious, scenario-based outlook:
- Base case: 8–12% YoY revenue growth in the next two quarters with margin stability as scale improves.
- Upside: Accelerated adoption of AI-driven analytics and deeper bancassurance partnerships leading to mid-teens YoY growth and expanding FCF generation.
- Downside: Regulatory tightening or slower enterprise IT spend dampening new deal flow.
Key factors to monitor: policy shifts affecting fintech services and data privacy, client concentration and contract renewal rates, pipeline in financial services distribution, and ongoing cost discipline.