Executive Summary
Yijia Group Corp (YJGJ) reported QQ1 2025 results with a sharp sequential revenue reduction and a substantial operating loss, despite a healthy gross margin. Revenue stood at 108.5 million USD for the quarter, down approximately 80% QoQ from the prior quarter, while gross profit remained strong at 73.2 million USD (gross margin ~67.5%). However, SG&A and other operating costs overwhelmed gross profit, producing an operating loss of 45.4 million USD and a net loss of 55.2 million USD (net margin ~-50.9%). The company also exhibited a pronounced cash burn, with net cash used in operating activities of 504.0 million USD and free cash flow of -504.0 million USD for the quarter, contributing to a decline in cash on hand to 141.6 million USD from 593.0 million USD at the start of the period. Balance-sheet metrics show a solid liquidity position (current ratio ~6.02; cash ratio ~0.71) and negligible net debt (net debt about -86.0 million USD), supported by substantial equity (total stockholders’ equity ~1.001 billion USD). The quarter’s profitability deterioration appears driven largely by elevated operating expenses relative to revenue, rather than a weakness in gross margin, suggesting a strategic reassessment of cost structure and go-to-market investments is needed. Absent a material swing in SG&A and working-capital dynamics, near-term profitability remains a concern, even as the balance sheet provides cushion for transition. Management commentary and earnings call transcripts are not provided in the available materials, limiting quotes to qualitative interpretation of the posted figures. Investors should monitor cost-control initiatives, working capital dynamics, and any new contract wins or losses that could alter the revenue trajectory in the coming quarters.
Key Performance Indicators
QoQ: -119.52% | YoY:-87.30%
QoQ: -132.88% | YoY:-127.70%
QoQ: -110.95% | YoY:46.34%
Key Insights
Revenue: 108.5 million USD for QQ1 2025, QoQ change -80.1%; Gross Profit: 73.2 million USD, Gross Margin: 67.5%; Operating Income: -45.4 million USD, Operating Margin: -41.9%; Net Income: -55.2 million USD, Net Margin: -50.9%; EPS: -0.0022; Weighted Avg Shares: 25.0 million; Cash Flow: Net cash from operating activities -504.0 million USD; Free cash flow -504.0 million USD; Cash at end of period: 141.6 million USD; Cash at beginning: 593.0 million USD; Change in cash: -451.4 million USD; Current...
Financial Highlights
Revenue: 108.5 million USD for QQ1 2025, QoQ change -80.1%; Gross Profit: 73.2 million USD, Gross Margin: 67.5%; Operating Income: -45.4 million USD, Operating Margin: -41.9%; Net Income: -55.2 million USD, Net Margin: -50.9%; EPS: -0.0022; Weighted Avg Shares: 25.0 million; Cash Flow: Net cash from operating activities -504.0 million USD; Free cash flow -504.0 million USD; Cash at end of period: 141.6 million USD; Cash at beginning: 593.0 million USD; Change in cash: -451.4 million USD; Current assets: 1.2009 billion USD; Current liabilities: 0.1994 billion USD; Total assets: 1.2009 billion USD; Total liabilities: 0.1994 billion USD; Total stockholders’ equity: 1.0015 billion USD; Net debt: -86.0 million USD; Current ratio: 6.02; Quick ratio: 4.95; Inventory days: 544.2 days; Days of payables outstanding: 171.4 days; Cash Conversion Cycle: 372.7 days; P/S: 41.50x; P/B: 4.50x; P/E: negative; Enterprise value multiple: negative; Dividend yield: 0.0%. Notes: YoY commentary indicates operating income and net income declines of ~-87.3% and -127.7%, respectively, while EPS shows a reported YoY increase of 46.3% though this is driven by share count and one-time factors rather than margin expansion.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
108.48K |
N/A |
-80.08% |
| Gross Profit |
73.17K |
N/A |
-79.19% |
| Operating Income |
-45.41K |
-87.30% |
-119.52% |
| Net Income |
-55.21K |
-127.70% |
-132.88% |
| EPS |
0.00 |
46.34% |
-110.95% |
Key Financial Ratios
operatingProfitMargin
-41.9%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.02
priceEarningsRatio
-20.39
Management Commentary
Note: No earnings-call transcript or management quotes were provided in the available data. Consequently, there are no direct management quotes to anchor the narrative. The analysis therefore relies on the disclosed financials to infer management emphasis, particularly around cost structure and liquidity considerations.
Forward Guidance
No formal forward guidance was provided in the supplied materials. Given the QQ1 2025 results, an implicit near-term focus for management may involve stabilizing the cost base, improving operating leverage, and reducing working-capital demands. The absence of revenue trend clarity in the quarter complicates revenue guidance. Investors should look for: (1) explicit SG&A reduction plans, (2) any contract wins or churn that could indicate a path to revenue stabilization, (3) updates on working capital optimization (inventory and other current assets), and (4) any cash-flow improvement initiatives. Achievability hinges on execution agility in cost control and the ability to scale revenue from existing or new clients without compromising margins.