Breton Technology Co Ltd (1333.HK) Q2 2025 Earnings Report

Breton Technology reported a sharply negative QQ2 2025: revenue of 326.77 million CNY, gross profit of 20.95 million CNY and a negative EBITDA of 159.34 million CNY, yielding an EBITDA margin of -48.8% and an operating margin of -51.6%. Net income came in at -174.18 million CNY, translating to a net margin of -53.3% and an EPS of -0.48. Year-over-year comparisons show material deterioration across the core profitability metrics: revenue down 94.5%, gross profit down 98.8%, operating income down 115.9%, and net income down 122.0% (EPS down 546.5%). QoQ changes are flat (0.0%) in the available quarterly metrics, underscoring a pronounced and persistent earnings challenge through QQ2 2025. From a balance-sheet perspective, Breton maintains a solid liquidity position: cash and short-term investments total 373.86 million CNY with total cash and equivalents of 327.26 million CNY, and current assets of 1.14 billion CNY against current liabilities of 618.82 million CNY, yielding a current ratio of 1.84. Total debt stands at 520.59 million CNY with net debt of 193.34 million CNY, and equity of 706.16 million CNY, producing a debt-to-equity ratio of 0.74 and a cash-based leverage profile that provides some flexibility to weather near-term losses. The results underscore a challenging near-term operating environment for Breton in the Industrials sector, particularly in BEV-heavy machinery and construction equipment. The revenue decline and margin compression suggest pricing pressure, elevated cost structure, or product mix that is not yet optimized for scale. Management commentary from the earnings call (if available) would be critical to confirm any cost-reduction initiatives, product ramp timing, and channel strategy. In the absence of explicit guidance, investors should focus on the cadence of cost containment, the trajectory of order book and utilization of existing manufacturing capacity, and any signs of stabilization in demand for electric heavy trucks and BEV machinery.