CXJ Group Co Limited delivered a challenging QQ2 2025 despite a solid gross margin. Reported revenue of 100.9 million USD with gross profit of 65.4 million USD yielding a robust gross margin of approximately 64.9%. However, operating profitability collapsed with an operating loss of 106.7 million USD and a net loss of 69.7 million USD, driving an EBITDA of negative 106.7 million USD and a net margin of -0.69%. The quarter was marked by heavy operating expenses and one-off financing dynamics that offset the strong product grossing. Cash flow remained deeply negative from operations (-473.5 million USD) even as financing activity provided a sizable inflow (+400.0 million USD), leaving the company with a negligible cash balance by period end (about 0.35 thousand USD). The balance sheet shows a very high goodwill balance (approximately 1.74 billion USD) and a thin liquidity profile, with current ratio around 0.31 and a near-zero cash ratio. Retained earnings are deeply negative (-5.55 billion USD), underscoring a long-running earnings erosion that poses a material risk to equity value. Management commentary in the transcript (if available) would be critical to discern cost containment plans, potential impairment considerations, and strategic levers needed to restore profitability. Until such guidance materializes, the investment thesis remains highly speculative, hinging on leverage-efficient cost control, working capital optimization, and potential brand/licensing opportunities within China’s auto aftermarket.