Newlink Technology Inc (9600.HK) Q2 2025 Earnings Report

Newlink Technology reported QQ2 2025 revenue of 133.74 million CNY, reflecting a robust YoY gain of 71.55% but accompanied by a widening quarterly loss. Gross profit stood at 24.07 million CNY, delivering a gross margin of 18.0%. Notwithstanding top-line strength, operating expenses surged to 71.50 million CNY, driving an EBITDA of -48.35 million CNY and an operating loss of -47.43 million CNY. Net income registered -64.38 million CNY with a negative net margin of -48.1% and an EPS of -0.0686. The earnings profile indicates a business in a high-investment phase, prioritizing R&D, sales/marketing, and administrative scaling to capture AI, big data, RPA, and healthcare IT opportunities in China. Strong liquidity and very light leverage provide a cushion for ongoing investment, but profitability and cash flow discipline will be critical to monitor over the next quarters. Key takeaways for investors: (1) Revenue momentum is positive on a YoY basis but profitability is materially pressured by elevated operating costs; (2) The company maintains a solid liquidity position (current ratio 4.53, cash ratio 2.04) with minimal leverage (debt ratio 0.0277, debt/equity 0.0337), suggesting capacity to fund growth initiatives; (3) Margin recovery will depend on mix shift toward higher-margin offerings and continued efficiency gains in product development and delivery. Absent explicit forward guidance, an earnings cadence driven by cost discipline and a path to improving EBITDA will be pivotal to the stock's investment thesis.