Ruichang Intl (1334.HK) Q2 2025 Earnings Report

Revenue: RMB 151,799,000 in QQ2 2025; YoY change +38.44%, QoQ change +0.00% (flat vs prior quarter).
Gross Profit: RMB 41,149,000; Gross Margin: 27.11%; YoY Gross Profit growth +18.42%; QoQ 0.00%.
EBITDA: RMB -33,610,000; EBITDA Margin: -22.14%.
Operating Income: RMB -35,673,000; Operating Margin: -23.50%.
Net Income: RMB -37,967,000; Net Margin: -25.01%.
Earnings Per Share (EPS): RMB -0.076; Diluted EPS: RMB -0.076; QoQ change: 0.00% in the data provided.
Income Tax Expense: RMB 199,000 (tax benefit/loss neutral in quarterly context).
Key profitability ratios (QQ2 2025):
• Gross Margin: 27.11% • Operating Margin: -23.50% • Net Margin: -25.01%
Liquidity and leverage:
• Current Ratio: 1.781 • Quick Ratio: 1.602 • Cash Ratio: 0.270
• Debt to Equity: 0.601 • Debt to Capitalization: 0.375 • Net Debt: RMB 105,485,000
Balance sheet snapshot (at 2025-06-30):
• Total Assets: RMB 778,345,000 • Total Liabilities: RMB 430,423,000 • Total Stockholders’ Equity: RMB 330,085,000
• Cash & Equivalents: RMB 92,732,000 • Short-term Investments: RMB 101,994,000
• Net Receivables: RMB 298,126,000 • Inventory: RMB 61,388,000
• Property, Plant & Equipment (net): RMB 139,284,000
• Long-term Debt: RMB 86,696,000 • Short-term Debt: RMB 111,521,000 • Total Debt: RMB 198,217,000
Operational efficiency metrics (as of QQ2 2025):
• Days Sales Outstanding (DSO): 176.8 days • Days Inventory Outstanding (DIO): 49.9 days • Days Payables Outstanding (DPO): 104.9 days • Cash Conversion Cycle (CCC): 121.8 days
Note: All figures in RMB unless stated otherwise.

No earnings-call transcript was provided in the data set. Consequently, there are no management quotes or thematic highlights to cite. When available, future updates should incorporate management commentary on revenue mix (SRU, VOC incineration, catalytic cracking equipment), cost-control initiatives, and any one-off items impacting QQ2 results.

Given the QQ2 2025 results, the investment case for Ruichang Intl is cautiously negative on near-term profitability despite a solid revenue uptick. The stock would benefit from a clear path to margin recovery, evidenced by: (1) stabilization or expansion of gross margin above the mid- to high-20s through pricing, mix optimization, or cost control; (2) a meaningful reduction in operating expenses as a share of revenue; and (3) positive cash flow generation or a credible plan to monetize installation/services to lift profitability. Until such signs emerge, the company faces a challenging earnings trajectory, with negative earnings and constrained liquidity impact unless growth accelerates or cost discipline improves. Valuation metrics imply limited upside without a meaningful improvement in profitability and cash generation.