Executive Summary
United Strength Power Holdings Limited (2337.HK) reported QQ1 2025 results that underscore a challenging near-term operating environment for a Chinese fuel-reacquisition and energy-marketing franchise. Revenue for the quarter was 1,541,007,500 CNY, down 19.7% year-over-year and 20.7% quarter-over-quarter, while gross profit declined to 75,649,500 CNY, yielding a gross margin of 4.91% (versus 4.9% shown in the quarter data). EBITDA stood at 8,496,500 CNY (margin ~0.55%), yet the company posted a net loss of 3,639,000 CNY, with earnings per share of -0.0097 CNY. The negative net result was driven by non-operating items, notably a total other income/expense net component of -6,155,500 CNY, which more than offset a modest positive income tax impact and operating profit. Consequently, the quarter shows limited operating leverage: operating income was 3,495,000 CNY against revenue of 1.541 billion, producing an operating margin of 0.23%.
On a four-quarter basis, the company delivered stronger top-line results in late 2024 (Q4 2024 revenue of 1,942,457,500 CNY and gross profit of 113,911,000 CNY) than in Q1 2025, reflecting a secular revenue downshift across the period. The YoY revenue decline of ~19.7% aligns with softer demand and pricing pressure in the Chinese energy/refueling segment, while gross margins compressed from the mid-teens region in prior periods to sub-5% in QQ1 2025. The company’s EBITDA contribution remained positive but modest, indicating only limited near-term earnings power absent an uplift in volumes, efficiencies, or favorable product mix.
Management commentary is not captured in the provided transcript, limiting explicit guidance. The absence of forward-looking targets in the QQ1 2025 release suggests a cautious stance toward a near-term recovery. Investors should monitor trajectory in volumes per refueling station, changes in cost structure, and any strategic actions to bolster cash generation. Given the current footing, the stock presents a balanced risk-reward; downside risk exists if revenue trends persist, while upside hinges on operational improvements and stabilizing energy demand in China.