Breton Technology delivered a Q1 2019 result set characterized by resilient profitability metrics amid a modest top-line decline. Revenue reached 5,895,924,750 CNY, down 7.88% year over year, while gross profit stood at 1,776,096,750 CNY, yielding a gross margin of 30.12%. Operating income of 1,057,474,250 CNY generated an operating margin of 17.94%, and net income was 793,693,750 CNY (net margin 13.46%), underscoring efficient cost control and product mix in the period. EBITDA totaled 1,663,859,750 CNY with an EBITDA margin of 28.22%, supporting cash-generating capacity at the operating level despite revenue softness. Earnings per share were 0.1075 CNY, down 47.53% on a year-over-year basis.
However, Breton’s cash flow profile remains heavily constrained by capex intensity and working capital dynamics. Net cash provided by operating activities was negative 151,537,000 CNY, and capital expenditures amounted to 2,053,476,000 CNY, producing a negative free cash flow of 2,205,013,000 CNY. The company reported a net cash outflow of 3,533,275,750 CNY for the period, with cash and cash equivalents at 228.97 million CNY at period end (vs. 3.762 billion CNY at the start). Financing activity included a substantial debt repayment of 7.131 billion CNY and a dividend payment of 423.10 million CNY, signaling aggressive deleveraging and capital returns in the face of a tight liquidity position. These factors collectively imply a near-term liquidity risk if capex demand persists or if working capital dynamics deteriorate further.
Management commentary (where disclosed) emphasizes ongoing execution in the transition toward energy-efficient engineering machinery and heavy-truck platforms, with a focus on capital discipline and cash preservation. The stronger gross and operating margins suggest the business remains structurally capable in its chosen product niche, but the intensity of capital investment and leverage risk warrants close monitoring of backlog, mix, and refinancing needs over the near term.