Qing Song Health CoLtd (6931.TWO) Q1 2025 Earnings Report

Qing Song Health CoLtd delivered QQ1 2025 revenue of 258.05 million TWD, up 12.0% year over year and 1.35% sequentially, supported by ongoing demand for long-term care services in Taiwan. Gross profit was 27.93 million TWD, yielding a gross margin of 10.83%, but gross profit fell 18.66% year over year and 16.90% quarter over quarter, signaling shifting cost dynamics or mix changes. Operating income registered 5.13 million TWD with a slim margin of 1.99%, reflecting continued operating leverage challenges even as the EBITDA contribution remained positive at 22.18 million TWD (EBITDA margin of 8.60%). Net income fell to a loss of 3.59 million TWD, with a net margin of -1.39% and an EPS of -0.0549, largely due to higher interest expense (5.90 million TWD) and other financing-related items (-5.36 million TWD) which overwhelmed pre-tax profitability (income before tax of -0.23 million TWD).

The quarter demonstrates top-line resilience amid modest volume growth but profitability remains pressured by financing costs and non-operating items. The positive EBITDA indicates operating cash generation potential before debt service is considered. Without access to cash flow, balance sheet composition, or occupancy metrics, the sustainability of earnings will hinge on deleveraging, cost control, and any pricing or mix improvements. Management commentary (where available) and sector dynamics in Taiwan’s aging population context will be critical to assessing the longer-term trajectory and capital allocation plan.

Overall, Qing Song Health sits at an inflection point where revenue momentum needs to translate into stronger cash generation and reduced financing headwinds to convert EBITDA strength into sustainable net income improvements.