NetaGo Technology Company (1483.HK) Q2 2025 Earnings Report

NetaGo Technology Company Limited reported QQ2 2025 revenue of HKD 180.697 million, up 90.9% year over year, with a gross profit of HKD 33.439 million and a gross margin of 18.50%. EBITDA stood at HKD 43.736 million, operating income HKD 20.940 million, and net income HKD 47.535 million, implying a net margin of 26.31% and an EPS of HKD 0.0304. The quarterly results indicate meaningful top-line expansion aligned with improving operating leverage, supported by a favorable mix and scale of activities in the HK and Mainland China waste-management footprint. Cash efficiency and liquidity appear solid, underscored by a cash and cash equivalents balance of HKD 324.702 million and total cash including short-term investments of HKD 359.977 million, yielding a net cash position of HKD -194.094 million (net debt).

The balance sheet reflects a strong liquidity profile: current assets of HKD 675.068 million against current liabilities of HKD 525.754 million (current ratio 1.284; quick ratio 1.281; cash ratio 0.618). The company carries modest leverage with total debt of HKD 130.608 million and a debt-to-equity profile around 0.38, and an interest-coverage ratio of approximately 2.49x. However, there are data inconsistencies in the reported quarterly figures (notably net income versus pre-tax income and tax expense), and cash-flow metrics are incomplete in the provided dataset, warranting follow-up with management for clarity on cash generation and operating cash flow.

In the absence of an earnings-call transcript in the provided data, investor takeaway centers on execution in core environmental services, potential contract wins, and how management intends to sustain margin expansion amid a growing revenue base. Relative to peers in the HK-listed waste-management/industrial space, NetaGo exhibits a respectable profitability and cash-position profile, though valuation multiples imply market expectations for durable growth. A cautious stance is advised until forward guidance is disclosed and cash-flow clarity improves.