Breton Technology Co Ltd (1333.HK) Q1 2025 Earnings Report

Breton Technology reported QQ1 2025 revenue of 163,387,319 CNY, down 97.45% year-over-year and 97.23% quarter-over-quarter, signaling a severe demand downturn in its core heavy-truck and industrial machinery business. Despite a modest gross profit of 10,475,005 CNY and a gross margin of 6.41%, the company posted an EBITDA loss of 79,667,534 CNY and a net loss of 87,092,172 CNY, driving an operating loss of 84,239,342 CNY and an operating margin of -51.56%. The EPS of -0.24 CNY underscores the depth of operational underperformance in QQ1 2025. From a balance-sheet perspective, Breton maintains a liquid balance sheet with total cash and cash equivalents of 327,255,573 CNY and short-term investments of 46,603,208 CNY, aggregating approximately 373,858,781 CNY in readily available liquidity, against total debt of 520,593,677 CNY and net debt of 193,338,104 CNY. Total assets stand at 1,601,790,361 CNY, while total liabilities of 895,629,548 CNY and equity of 706,160,813 CNY reflect a traditional asset-light, leverage-driven structure typical of a cyclical industrials player during a downturn. Management commentary is not available in the provided transcript dataset, limiting the ability to quote on strategic updates or guidance. However, without explicit forward guidance, investors should monitor macro-driven demand signals for heavy machinery and electrified equipment, cost-containment progress, and any restructuring actions. The QQ1 2025 results imply a high-risk, high-uncertainty near-term outlook, with potential recovery drivers tied to a rebound in infrastructure/spending, stabilization of supply chains, and improved operating leverage as volumes recover.