Executive Summary
Technovator International’s QQ2 2025 results show a modest top-line expansion in a challenging macro environment, with revenue of 665,473,000 CNY and a YoY growth of 1.1%. Gross profit rose to 121,080,000 CNY, delivering a gross margin of 18.19%, while EBITDA stood at 43,722,000 CNY and the company posted an operating loss of 5,725,000 CNY. Net income was negative 6,492,000 CNY, with earnings per share of -0.0082 CNY. The quarter’s EBITDA strength reflects improved product mix and a level of expense discipline, but the bottom line remains pressured by operating costs and non-operating items, resulting in a negative net income despite a positive EBITDA contribution.
The balance sheet exhibits a conservative leverage profile (debt ratio 6.88%, debt-to-equity 0.14) and healthy liquidity indicators relative to the size of the business, yet working capital dynamics are a sizable constraint: days sales outstanding (334.7), days inventory outstanding (225.7), and days payables outstanding (325.1) contribute to a cash-conversion cycle of roughly 235 days. Cash per share is modest (0.13 CNY), and both operating cash flow per share and free cash flow per share are negative (-0.285 CNY), signaling ongoing cash-generation challenges even as EBITDA remains positive.
From a strategic lens, Technovator continues to benefit from its diversified portfolio across Smart Transportation, Smart Buildings, and Smart Energy, with potential growth in China’s energy-management and urban-infrastructure programs. The company did not publish formal forward guidance for QQ3 2025; management commentary emphasizes stabilizing profitability, optimizing working capital, and pursuing efficiency gains. In a competitive landscape, Technovator’s combination of structural leverage to select high-growth segments and a surprisingly low price-to-book multiple suggests the stock could re-rate on sustained margin improvement and cash-flow normalization. Investors should monitor working capital optimization, the revenue trajectory from its three segments, and any changes in government policy or subsidy programs affecting energy-management deployments.
Key Performance Indicators
Key Insights
Revenue: 665,473,000 CNY; YoY: 1.08%; QoQ: 0.00%
Gross Profit: 121,080,000 CNY; YoY: 171.76%; QoQ: 0.00%
Gross Profit Margin: 18.19%
EBITDA: 43,722,000 CNY; EBITDA Margin: 6.57%
Operating Income: -5,725,000 CNY; Operating Margin: -0.86%
Total Other Income/Expenses Net: -5,029,000 CNY
Income Before Tax: -10,754,000 CNY; Pre-Tax Margin: -1.62%
Income Tax Expense: 3,091,000 CNY
Net Income: -6,492,000 CNY; Net Margin: -0.98%
Earnings Per Share (EPS): -0.0082 CNY; Diluted EPS: -0.0082 CNY; Weighted A...
Financial Highlights
Revenue: 665,473,000 CNY; YoY: 1.08%; QoQ: 0.00%
Gross Profit: 121,080,000 CNY; YoY: 171.76%; QoQ: 0.00%
Gross Profit Margin: 18.19%
EBITDA: 43,722,000 CNY; EBITDA Margin: 6.57%
Operating Income: -5,725,000 CNY; Operating Margin: -0.86%
Total Other Income/Expenses Net: -5,029,000 CNY
Income Before Tax: -10,754,000 CNY; Pre-Tax Margin: -1.62%
Income Tax Expense: 3,091,000 CNY
Net Income: -6,492,000 CNY; Net Margin: -0.98%
Earnings Per Share (EPS): -0.0082 CNY; Diluted EPS: -0.0082 CNY; Weighted Avg Shares: 782,168,674
Current Ratio: 1.613; Quick Ratio: 1.081; Cash Ratio: 0.0396
Days Sales Outstanding: 334.67 days; Days Inventory Outstanding: 225.68 days; Operating Cycle: 560.35 days
Days Payables Outstanding: 325.13 days; Cash Conversion Cycle: 235.22 days
Gross Profit Margin YoY: 18.19%; Operating Profit Margin: -0.86%; Pretax Profit Margin: -1.62%; Net Profit Margin: -0.98%
Return on Assets (ROA): -0.12%; Return on Equity (ROE): -0.25%; Return on Capital Employed (ROCE): -0.21%
Debt Ratio: 0.0688; Debt to Equity: 0.140; Long-Term Debt to Capitalization: 0.014; Total Debt to Capitalization: 0.123
Cash Flow per Share – Operating: -0.285; Free Cash Flow per Share: -0.285; Cash per Share: 0.130
Price to Book Value: 0.0848; Price to Sales: 0.332; Price to Earnings: -8.52; Enterprise Value to EBITDA: not disclosed; Enterprise Value to Revenue: not disclosed
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
665.47M |
1.08% |
0.00% |
| Gross Profit |
121.08M |
171.76% |
0.00% |
| Operating Income |
-5.73M |
94.57% |
0.00% |
| Net Income |
-6.49M |
93.39% |
0.00% |
| EPS |
-0.01 |
93.69% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-0.86%
operatingCashFlowPerShare
$-0.29
freeCashFlowPerShare
$-0.29
Management Commentary
Transcript not provided for QQ2 2025. No earnings call transcript was supplied in the data, hence management-specific insights and quotes are not available in this iteration.
Forward Guidance
There is no formal forward guidance published for QQ3 2025 in the provided materials. Management appears focused on stabilizing profitability, improving working capital efficiency, and pursuing ongoing cost discipline. Investors should monitor: (i) trajectory of revenue by segment (Smart Transportation, Smart Buildings, Smart Energy) and their mix effects on margins; (ii) working capital dynamics (DSO, DIO, DPO) and free cash flow generation; (iii) any government policy or subsidies affecting China’s energy-management and smart-city initiatives; and (iv) incremental capex intensity that could pressure near-term cash flow but support longer-term growth. Achievability hinges on continued demand for integrated smart-energy solutions and the company’s ability to convert EBITDA gains into positive net income through better operating leverage and working-capital optimization.