Huaibei GreenGold (2450.HK) Q2 2025 Earnings Report

Huaibei GreenGold reported Q2 2025 revenue of 63.65 million CNY, delivering a robust gross margin of approximately 40.5% and EBITDA of 32.60 million, underscoring a resilient cost structure in a cyclical construction materials market. Operating income reached 16.29 million, signaling steady operating leverage as the company scales, even as net income declined to a loss of 1.39 million CNY. The shortfall in net earnings is driven by total other income/expenses net of -16.74 million and a modest tax impact, resulting in a negative income before tax (-0.45 million) and a small tax expense (1.26 million). The quarter also highlights meaningful depreciation and amortization of 16.31 million, contributing to healthy EBITDA but implying a sizable fixed asset base. Liquidity remains solid with current and quick ratios around 1.12 and 1.12 respectively, and cash ratio near 1.04, while leverage remains a material risk with debt to capitalization at 74.1% and debt to equity at 2.86. Importantly, YoY metrics show material improvements: revenue up approximately 103% YoY, gross profit up ~138% YoY, and operating income up ~117% YoY, while QoQ comparisons suggest flat-to-broadly steady quarterly performance for the quarter’s revenue and gross profit but a swing to negative net income QoQ. Absent a detailed earnings call transcript, management commentary is not available here to corroborate the drivers behind the non-operating items. Investors should monitor leverage management, working capital dynamics (CCC at -2.31 days), and any unusual one-off items in other income/expenses that could influence near-term profitability.