Newlink Technology posted Q1 2025 revenue of 66.87 million CNY, up 8.82% year-over-year, but the quarter also delivered a substantial net loss of 32.19 million CNY and negative EBITDA of 24.17 million CNY. The company’s gross margin stood at 17.99%, with gross profit of 12.03 million CNY, underscoring ongoing operating leverage challenges as it advances a substantial investment cycle in AI and big data-enabled solutions. Revenue declined 14.22% quarter-over-quarter, signaling near-term execution and mix challenges as management pursues a higher-growth, technology-centric product strategy across Financial Institutions, Medical Institutions, and Other segments.
R&D and SG&A remained elevated, with Research and Development at 13.81 million CNY and SG&A (selling/general/administrative) totaling 21.94 million CNY in the quarter. The operating expense base of 35.75 million CNY drove an operating loss of 23.72 million CNY and an after-tax result of -32.19 million CNY (EPS -0.0343). The company appears to be investing aggressively to scale AI-enabled offerings, RPA solutions, and healthcare platforms, with profitability expected to lag while customer adoption and monetization grow. The absence of liquidity and cash-flow details in the provided data limits a full assessment of balance sheet health, though the earnings trajectory suggests a need for stronger top-line growth, improved gross margin, and tighter cost control to reach breakeven or cash-flow-positive levels over the medium term.