Executive Summary
Newlink Technology posted Q1 2025 revenue of 66.87 million CNY, up 8.82% year-over-year, but the quarter also delivered a substantial net loss of 32.19 million CNY and negative EBITDA of 24.17 million CNY. The company’s gross margin stood at 17.99%, with gross profit of 12.03 million CNY, underscoring ongoing operating leverage challenges as it advances a substantial investment cycle in AI and big data-enabled solutions. Revenue declined 14.22% quarter-over-quarter, signaling near-term execution and mix challenges as management pursues a higher-growth, technology-centric product strategy across Financial Institutions, Medical Institutions, and Other segments.
R&D and SG&A remained elevated, with Research and Development at 13.81 million CNY and SG&A (selling/general/administrative) totaling 21.94 million CNY in the quarter. The operating expense base of 35.75 million CNY drove an operating loss of 23.72 million CNY and an after-tax result of -32.19 million CNY (EPS -0.0343). The company appears to be investing aggressively to scale AI-enabled offerings, RPA solutions, and healthcare platforms, with profitability expected to lag while customer adoption and monetization grow. The absence of liquidity and cash-flow details in the provided data limits a full assessment of balance sheet health, though the earnings trajectory suggests a need for stronger top-line growth, improved gross margin, and tighter cost control to reach breakeven or cash-flow-positive levels over the medium term.
Key Performance Indicators
QoQ: -72.89% | YoY:-16.57%
QoQ: -74.11% | YoY:-2.69%
Key Insights
Revenue: 66.87M CNY (+8.82% YoY; -14.22% QoQ). Gross Profit: 12.03M CNY; Gross Margin: 17.99% (0.1799). Operating Income: -23.72M CNY; Operating Margin: -35.47%. EBITDA: -24.17M CNY; EBITDA Margin: -36.15%. Net Income: -32.19M CNY; Net Margin: -48.14%. EPS (Diluted): -0.0343. R&D: 13.81M CNY; SG&A: 21.94M CNY; Operating Expenses: 35.75M CNY. Weighted Avg Shares: 937.88M....
Financial Highlights
Revenue: 66.87M CNY (+8.82% YoY; -14.22% QoQ). Gross Profit: 12.03M CNY; Gross Margin: 17.99% (0.1799). Operating Income: -23.72M CNY; Operating Margin: -35.47%. EBITDA: -24.17M CNY; EBITDA Margin: -36.15%. Net Income: -32.19M CNY; Net Margin: -48.14%. EPS (Diluted): -0.0343. R&D: 13.81M CNY; SG&A: 21.94M CNY; Operating Expenses: 35.75M CNY. Weighted Avg Shares: 937.88M.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
66.87M |
8.82% |
-14.22% |
| Gross Profit |
12.03M |
-2.67% |
70.15% |
| Operating Income |
-23.72M |
-9.29% |
10.17% |
| Net Income |
-32.19M |
-16.57% |
-72.89% |
| EPS |
-0.03 |
-2.69% |
-74.11% |
Management Commentary
No earnings-call transcript was provided in the data set. Consequently, there are no management quotes or theme-based highlights available to cite. If a transcript is supplied, it should be integrated here to complement the quantitative results with management guidance, strategic priorities, and margin initiatives.
Forward Guidance
No formal forward guidance was disclosed in the filing or dataset. Given the Q1 2025 results, the near-term focus is likely on accelerating revenue growth from AI-enabled solutions (big data analytics, RPA, and healthcare platforms), improving product mix, and achieving operating leverage. Key factors to monitor include: (1) trajectory of revenue growth by segment (Financial Institutions, Medical Institutions, Other), (2) progression of gross margin and cost-to-revenue efficiency, (3) R&D intensity and its translation into higher-value contracts, and (4) cash runway and liquidity indicators when disclosed. In the absence of explicit targets, investors should assess management’s ability to convert pipeline deals into recurring revenue and to scale high-margin enterprise offerings.