Executive Summary
CXJ Group Co Limited delivered a challenging QQ2 2025 despite a solid gross margin. Reported revenue of 100.9 million USD with gross profit of 65.4 million USD yielding a robust gross margin of approximately 64.9%. However, operating profitability collapsed with an operating loss of 106.7 million USD and a net loss of 69.7 million USD, driving an EBITDA of negative 106.7 million USD and a net margin of -0.69%. The quarter was marked by heavy operating expenses and one-off financing dynamics that offset the strong product grossing. Cash flow remained deeply negative from operations (-473.5 million USD) even as financing activity provided a sizable inflow (+400.0 million USD), leaving the company with a negligible cash balance by period end (about 0.35 thousand USD). The balance sheet shows a very high goodwill balance (approximately 1.74 billion USD) and a thin liquidity profile, with current ratio around 0.31 and a near-zero cash ratio. Retained earnings are deeply negative (-5.55 billion USD), underscoring a long-running earnings erosion that poses a material risk to equity value. Management commentary in the transcript (if available) would be critical to discern cost containment plans, potential impairment considerations, and strategic levers needed to restore profitability. Until such guidance materializes, the investment thesis remains highly speculative, hinging on leverage-efficient cost control, working capital optimization, and potential brand/licensing opportunities within China’s auto aftermarket.
Key Performance Indicators
QoQ: -11.81% | YoY:-88.36%
QoQ: -31.12% | YoY:-87.66%
QoQ: -143.38% | YoY:-154.07%
QoQ: -51.13% | YoY:-134.28%
Key Insights
Revenue: 100875 | YoY change: -88.36% | QoQ change: -11.81%
Gross Profit: 65442 | YoY change: -87.66% | QoQ change: -31.12%
Operating Income: -106679 | YoY change: -154.07% | QoQ change: -143.38%
Net Income: -69659 | YoY change: -134.28% | QoQ change: -51.13%
EPS: -0.0007 | YoY change: -135.00% | QoQ change: N/A
EBITDA: -106679 | EBITDA Margin: -1.06%
Net Margin: -0.69%
Current Ratio: 0.311 | Quick Ratio: 0.273 | Cash Ratio: 0.000195
Days Sales Outstanding: 51.82 | Days Inventory Outstanding: 17...
Financial Highlights
Revenue: 100875 | YoY change: -88.36% | QoQ change: -11.81%
Gross Profit: 65442 | YoY change: -87.66% | QoQ change: -31.12%
Operating Income: -106679 | YoY change: -154.07% | QoQ change: -143.38%
Net Income: -69659 | YoY change: -134.28% | QoQ change: -51.13%
EPS: -0.0007 | YoY change: -135.00% | QoQ change: N/A
EBITDA: -106679 | EBITDA Margin: -1.06%
Net Margin: -0.69%
Current Ratio: 0.311 | Quick Ratio: 0.273 | Cash Ratio: 0.000195
Days Sales Outstanding: 51.82 | Days Inventory Outstanding: 174.60 | CCC (Cash Conversion Cycle): -28.37 days
Free Cash Flow: -473540 | Operating Cash Flow: -473540
Debt: Total Debt 46501 | Net Debt 46149 | Long-term Debt: 46501
Goodwill: 1742577 | Total Assets: 2353597 | Total Liabilities: 1803535 | Total Stockholders’ Equity: 550062
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
100.88K |
-88.36% |
-11.81% |
| Gross Profit |
65.44K |
-87.66% |
-31.12% |
| Operating Income |
-106.68K |
-154.07% |
-143.38% |
| Net Income |
-69.66K |
-134.28% |
-51.13% |
| EPS |
0.00 |
-135.00% |
N/A |
Key Financial Ratios
operatingProfitMargin
-105.8%
operatingCashFlowPerShare
$-0
Management Commentary
No earnings call transcript was provided in the data set. As a result, no management quotes or themes can be extracted at this time. If the transcript is supplied, I will synthesize themes by strategy, operations, and market conditions with contextual significance and quotes.
Forward Guidance
There is no explicit forward guidance embedded in the provided data. The absence of quantified targets or horizon-specific goals limits the ability to form a concrete outlook. If management provides future targets, key areas to assess would include: (1) cost containment and SG&A optimization, (2) capex and impairment risk management (given the large goodwill balance), (3) working capital optimization to stabilize operating cash flow, (4) potential monetization or optimization of brand/licensing assets (e.g., Teenage Hero Car), and (5) any planned leverage actions to restore liquidity. In the interim, investors should monitor quarterly trajectory in revenue stabilization or recovery, evolving gross margins, and any signs of improvement in operating efficiency.