Legend Strategy (1355.HK) Q1 2025 Earnings Report

QQ1 2025 for Legend Strategy International Holdings Group Company Limited shows top-line momentum with revenue of HKD 12.72 million, up 33.19% year over year and 17.91% quarter over quarter. However, profitability remains deeply negative, with EBITDA of HKD -1.70 million and net income of HKD -6.74 million, reflecting meaningful fixed-cost absorption and elevated other expenses. Gross profit was HKD 4.45 million (gross margin 34.97%), but gross margin declined YoY and QoQ, signaling cost pressures or shifting mix within the lodging operations. The quarter underscores a transition risk: revenue growth is not yet translating into earnings power, raising questions about scale, cost discipline, and the viability of the current operating structure without additional strategic leverage (e.g., asset-light initiatives or higher-margin consultancy revenue). Given the lack of balance sheet and cash-flow detail in the provided data, the sustainability of the losses and the need for financing considerations remain key investor watchpoints.