Unity Enterprise Holdings Limited (2195.HK) reported a mixed QQ2 2024: revenue rose strongly year-over-year but profitability collapsed. Revenue reached HKD 33.6 million, up 65.7% YoY, while gross profit was negative by HKD 6.84 million, yielding a gross margin of -20.37%. The company posted an operating loss of HKD 9.46 million and a net loss of HKD 9.52 million, resulting in negative earnings per share of -0.0092. Despite the top-line growth, cost of revenue overwhelmed revenue, pressuring margins and underscoring potential project mix challenges and fixed-cost absorption issues during the quarter.
Key Performance Indicators
Revenue
Increasing
33.60M
QoQ: 0.00% | YoY: 65.69%
Gross Profit
Decreasing
-6.84M
-20.37% margin
QoQ: 0.00% | YoY: -145.94%
Operating Income
Decreasing
-9.46M
QoQ: 0.00% | YoY: -145.75%
Net Income
Decreasing
-9.52M
QoQ: 0.00% | YoY: -194.64%
EPS
Decreasing
-0.01
QoQ: 0.00% | YoY: -187.50%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: HKD 33.60m (YoY +65.69%, QoQ +0.00%).
Gross Profit: HKD -6.8445m; Gross Margin: -20.37% (YoY: -145.94% swing; QoQ: 0.00%).
Operating Income: HKD -9.4615m; Operating Margin: -28.16% (YoY: -145.75%; QoQ: 0.00%).
Net Income: HKD -9.517m; Net Margin: -28.32% (YoY: -194.64%; QoQ: 0.00%).
EPS (Diluted): HKD -0.0092; YoY/EPS: -187.50%.
Liquidity and cash flow: Net cash provided by operating activities HKD 4.155m; Free cash flow HKD 4.1545m; Cash and cash equivalents HKD 17.45m; Net debt position reported as negative (net cash) of HKD -14.69m. Current ratio 2.77; Quick ratio 2.77; Cash ratio 0.283.
Capital expenditure: HKD -0.5m; Net change in cash: HKD 3.675m; Cash end of period: HKD 3.675m (noting some inconsistencies in cash line items across disclosures).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
33.60M
65.69%
0.00%
Gross Profit
-6.84M
-145.94%
0.00%
Operating Income
-9.46M
-145.75%
0.00%
Net Income
-9.52M
-194.64%
0.00%
EPS
-0.01
-187.50%
0.00%
Key Financial Ratios
Gross Profit Margin
Weak
-0.20%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.28%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.28%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.05%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.07%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
2.77
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.02
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-4.24x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.25x
Price-to-book ratio reasonable for profitable companies
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