SinoSynergy Hydrogen Energy reported QQ2 2025 revenue of 58.883 million CNY, up to a modest extent from the prior period in nominal terms but down sharply on a year-over-year basis. The company delivered a gross profit of 3.095 million CNY, resulting in a gross margin of 5.26%. However, operating expenses remained elevated at 186.158 million CNY, driven primarily by Research and Development (67.785 million CNY) and General and Administrative expenses (96.667 million CNY), contributing to an EBITDA of -136.361 million CNY and an operating loss of -183.063 million CNY. Net income registered -184.248 million CNY with an EPS of -0.36 for Q2 2025. YoY revenue declined by approximately 61.9%, while the QoQ change was flat (0.0%). The large delta between top-line revenue and operating burn indicates a company-focused on heavy R&D and capacity-building ahead of scale, which is typical for early-stage hydrogen-fuels-cell technology developers in a capital-intensive market.
Liquidity metrics show a mixed picture: current ratio of 2.53 suggests short-term liquidity headroom, yet the cash ratio stands at 0.0763, underscoring a reliance on working capital and potential near-term liquidity pressures if revenue traction does not improve. Free cash flow per share and operating cash flow per share are negative (-0.192 and -0.181 respectively), signaling ongoing cash burn despite some cash conversion efficiency signals embedded in other ratios. There is no formal management-provided forward guidance in the QQ2 release; the outlook therefore hinges on the industry backdrop, execution on product commercialization, and potential contract wins that could translate R&D investment into revenue.
Overall, the QQ2 2025 quarter reflects a company in an aggressive investment phase with limited near-term profitability visibility. The sustainability of this burn will depend on sales execution, product-market fit, and the speed with which R&D progress can be translated into recurring revenue or sizable project-based contracts. Investors should monitor any shift in revenue mix, the trajectory of operating costs, and the ability to convert R&D investments into scaled sales.