Dexin Services Group Limited reported a strong Q2 2025 (QQ2 2025) with substantial year-over-year revenue growth and solid profitability metrics, despite a lean capital structure and limited dividend activity. Revenue reached 442.99 million CNY, up 87.2% year over year, driven by scale effects, contract wins, and higher service adoption across its Zhejiang portfolio. Gross profit was 94.41 million CNY with a gross margin of 21.31%, and net income amounted to 34.14 million CNY, yielding a net margin of 7.71%. EBITDA stood at 53.98 million CNY, translating to an EBITDA margin of 12.19% and an operating margin of 10.64%.
The balance sheet exhibits a remarkably low leverage profile: debt ratio 0.0075 and debt-to-equity 0.0145, with a current ratio of 1.853 and cash ratio of 0.26, suggesting ample liquidity to fund ongoing expansion and working-capital needs. However, operating cash flow per share is negative (-0.0290 CNY) and free cash flow per share is also negative (-0.0298 CNY), indicating that cash generation during the quarter was impacted by working capital dynamics and capital expenditure requirements.
Management commentary was not captured in the provided transcript dataset, limiting the ability to quote direct guidance or qualitative strategic updates. Nevertheless, the QQ2 2025 results imply meaningful growth momentum, reinforced by favorable margins and a disciplined balance sheet. The stock trades at a modest valuation (P/E ~4.78, P/B ~0.91, P/S ~1.47), which may reflect earnings visibility and the cyclicality of the real estate services sector in China. Investors should monitor contract cadence, receivables collection, and any capex that could influence near-term cash flows, as well as potential regional diversification beyond Zhejiang.