Executive Summary
Overview of QQ1 2025 results shows top-line growth alongside material profitability challenges. Revenue came in at HKD 59.57 million for the quarter, up meaningfully on a YoY basis, but the company recorded a negative gross profit of HKD -1.62 million and an EBITDA of HKD -7.40 million, resulting in a net loss of HKD -7.77 million and basic earnings per share (EPS) of HKD -0.006. The large delta between revenue and total expenses underscores structural cost absorption issues and project-level economics that require management action to translate higher activity into sustainable profitability.
Key takeaway: while the quarter demonstrates demand activity in Unity’s RMAA (repair, maintenance, alteration and addition) works in Hong Kong, the business remains in an early-stage/low-margin phase where fixed costs and cost of revenue outstrip top-line growth. Absent a clear margin improvement path or contract mix that yields higher realization, the near-term risk to profitability remains elevated. The absence of disclosed forward guidance and balance-sheet details limits visibility on liquidity, leverage, and cash flow trajectory, making it essential for investors to monitor cost-control measures, working capital discipline, and the ability to convert revenue growth into positive cash flow.
Key Performance Indicators
Key Insights
Revenue: HKD 59,567,500 (+ YoY 71.47%, + QoQ 77.28%); Gross Profit: HKD -1,624,500 (Gross Profit Margin: -2.73%); Operating Income: HKD -7,438,500 (Operating Margin: -12.49%); EBITDA: HKD -7,401,750 (EBITDA Margin: -12.43%); Net Income: HKD -7,768,000 (Net Margin: -13.04%); EPS (basic/diluted): -HKD 0.006; Depreciation & Amortization: HKD 36,750; Cost of Revenue: HKD 61,192,000; Cost & Expenses: HKD 67,006,000; Weighted Avg Shares: 1,286,092,715.
Key YoY/QoQ metrics (from per-quarter me...
Financial Highlights
Revenue: HKD 59,567,500 (+ YoY 71.47%, + QoQ 77.28%); Gross Profit: HKD -1,624,500 (Gross Profit Margin: -2.73%); Operating Income: HKD -7,438,500 (Operating Margin: -12.49%); EBITDA: HKD -7,401,750 (EBITDA Margin: -12.43%); Net Income: HKD -7,768,000 (Net Margin: -13.04%); EPS (basic/diluted): -HKD 0.006; Depreciation & Amortization: HKD 36,750; Cost of Revenue: HKD 61,192,000; Cost & Expenses: HKD 67,006,000; Weighted Avg Shares: 1,286,092,715.
Key YoY/QoQ metrics (from per-quarter metrics): Revenue YoY +71.47%, Revenue QoQ +77.28%; Gross Profit YoY +70.66%, Gross Profit Margin YoY -2.73%; Operating Income YoY +35.21%, Operating Income QoQ +21.38%; Net Income YoY +32.31%, Net Income QoQ +18.38%; EPS YoY +47.83%, EPS QoQ +34.78% (values reflect the quarter-over-quarter and year-over-year movements reported for QQ1 2025).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
59.57M |
71.47% |
77.28% |
| Gross Profit |
-1.62M |
70.66% |
76.27% |
| Operating Income |
-7.44M |
35.21% |
21.38% |
| Net Income |
-7.77M |
32.31% |
18.38% |
| EPS |
-0.01 |
47.83% |
34.78% |
Management Commentary
No earnings-call transcript was provided in the input data. Consequently, there are no management quotes or theme-based transcript highlights to extract. If a transcript becomes available, we will extract quotes by themes (strategy, execution, market conditions) and pair them with context and implications.
Forward Guidance
No explicit forward guidance was disclosed in the QQ1 2025 release. In the absence of management-provided targets, our assessment highlights three potential scenarios:
- Base case: Margin stabilization remains elusive in the near term without tighter cost controls and favorable contract mix. Bottom line remains negative as long as cost of revenue and operating expenses stay outsized relative to revenue.
- Optimistic scenario: If Unity secures higher-margin RMAA contracts, improves fixed-cost absorption, and manages working capital effectively, EBITDA and net income could move toward breakeven within the next 4–8 quarters.
- Cautious scenario: If market conditions deteriorate or contract wins remain low-margin, the quarter could reflect ongoing profitability pressure.
Key factors for investors to monitor: (1) quarterly gross margin progression and contract mix (RMAA/renovation vs. new-build), (2) operating expense control and SG&A discipline, (3) cash flow generation and guidance on working capital, (4) visibility into backlog and revenue recognition cadence, and (5) any management commentary on new contracts or customer diversification.