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.