Unity Enterprise Holdings (2195.HK) Q2 2025 Earnings Report

Unity Enterprise Holdings Limited reported QQ2 2025 revenue of HKD119.1 million, up year-over-year by roughly 254% but showing a negative gross margin of 2.73% and a negative EBITDA of HKD 14.80 million. Net income for the quarter was a loss of HKD 15.54 million, or about HKD -0.012 per share. The quarter’s top-line strength did not translate into profitability due to a steep cost of revenue relative to revenue and relatively elevated fixed operating costs, yielding an operating loss of HKD 14.88 million and an EBITDAR margin of -12.43%. Expense structure shows General and Administrative plus Selling, General and Administrative expenses totaling HKD 11.63 million, underscoring modest expense control but still not sufficient to offset the revenue shortfall at the gross line. On a balance sheet and liquidity front, the firm shows a modest leverage profile with a debt ratio of 0.158 and a current ratio of 1.49, but a very small cash ratio of 0.084 and cash per share of HKD 0.00702, signaling limited liquidity buffers. Compared with selected Hong Kong peers, Unity’s gross margin is negative, in contrast to peers that exhibit positive gross margins (e.g., 2161.HK at ~51.6%, 2159.HK at ~17.1%, and 2161.HK at ~52% in nearby periods), implying company-specific margin pressures rather than an industry-wide trend. Management commentary from the earnings call is not included in the provided data, limiting quotes and forward-looking disclosures. Nevertheless, the QQ2 results point to a delicate near-term path: stabilize or grow revenue at meaningful margins, manage operating costs, and monetize any backlog to improve cash flow and profitability.