Executive Summary
CRCC HighTech Equipment delivered a robust year-over-year uplift in QQ2 2025, recording revenue of 1,731,934,818 CNY, up from the prior-year quarter. Gross profit reached 279,197,618 CNY, yielding a gross margin of 16.12%, while EBITDA stood at 116,850,090 CNY and net income at 66,721,188 CNY (net margin 3.85%). The company generated an operating income of 68,059,388 CNY, reflecting a 3.93% operating margin, and an EBITDAR of 6.75%. The quarterly EPS was 0.0438 CNY on a diluted basis. Key drivers include a strong rebound in demand for large-scale railway track maintenance machinery and related services, coupled with a business model characterized by very low leverage (debt ratio 0.18%, debt/equity 0.271%). The balance sheet signals liquidity resilience (current ratio 2.32, quick ratio 1.343) with substantial cash per share (0.967 CNY). However, cash flow dynamics show headwinds: operating cash flow per share is negative (-0.179 CNY) and free cash flow per share is negative (-0.183 CNY), underscoring working capital requirements and timing of project-related cash receipts and expenditures. The company’s leverage headroom, conservative capital structure, and favorable valuation metrics (P/E ~4.31x, P/B ~0.19x, P/S ~0.66x) position it attractively for investors who can tolerate near-term cash conversion cycles tied to project execution. Absent explicit management guidance in available data, the outlook remains contingent on sustained rail capex and project timing through 2H 2025, with upside potential if order intake accelerates and working capital normalizes.
Key Performance Indicators
Key Insights
Revenue and profitability: Revenue of 1,731,934,818 CNY in QQ2 2025, up YoY by 147.92% from 698,584,528 CNY in QQ2 2024; Gross profit 279,197,618 CNY, gross margin 16.12%; EBITDA 116,850,090 CNY, EBITDA margin 6.75%; Operating income 68,059,388 CNY, operating margin 3.93%; Net income 66,721,188 CNY, net margin 3.85%; EPS 0.0438 CNY (diluted).
Efficiency and productivity: Receivables turnover 0.722x, inventory turnover 0.499x, days sales outstanding (DSO) 124.74 days, days inventory outstanding...
Financial Highlights
Revenue and profitability: Revenue of 1,731,934,818 CNY in QQ2 2025, up YoY by 147.92% from 698,584,528 CNY in QQ2 2024; Gross profit 279,197,618 CNY, gross margin 16.12%; EBITDA 116,850,090 CNY, EBITDA margin 6.75%; Operating income 68,059,388 CNY, operating margin 3.93%; Net income 66,721,188 CNY, net margin 3.85%; EPS 0.0438 CNY (diluted).
Efficiency and productivity: Receivables turnover 0.722x, inventory turnover 0.499x, days sales outstanding (DSO) 124.74 days, days inventory outstanding 180.33 days, days payable outstanding 147.95 days; Cash conversion cycle 157.12 days, signaling working capital intensity typical for capital equipment in rail infrastructure projects.
Liquidity and leverage: Current ratio 2.32, quick ratio 1.343, cash ratio 0.493; Debt ratio 0.18%, debt/equity 0.271%, long-term debt as a share of capital 0%; cash per share 0.967 CNY; enterprise value multiple negative, price-to-book 0.191x, price-to-sales 0.664x, price-to-earnings 4.31x.
Cash flow: Operating cash flow per share -0.179, free cash flow per share -0.183; cash flow indicators reflect ongoing working capital investments and project funding requirements despite solid earnings.
Valuation and equities context: Net income margin 3.85%, return on assets 0.736%, return on equity 1.11%, return on capital employed 1.12%; P/E around 4.31x suggests earnings are modest relative to book value; P/B 0.191x indicates the stock trades well below reported net asset value on a price basis; dividend yield 0%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.73B |
147.92% |
0.00% |
| Gross Profit |
279.20M |
106.25% |
0.00% |
| Operating Income |
68.06M |
76.46% |
0.00% |
| Net Income |
66.72M |
99.59% |
0.00% |
| EPS |
0.04 |
99.09% |
0.00% |
Key Financial Ratios
operatingProfitMargin
3.93%
operatingCashFlowPerShare
$-0.18
freeCashFlowPerShare
$-0.18
Management Commentary
Note: No earnings call transcript was provided in the data set. As such, specific management commentary, forward-looking statements, and strategic color from QQ2 2025 earnings call could not be summarized. Access to the official transcript is recommended to incorporate management tone on backlog, project mix, pricing discipline, and execution risk.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. In a scenario analysis:
- Base case: If rail capex in China maintains a steady cadence into H2 2025, revenue and EBITDA could sustain the QQ2 trajectory, supported by a low-leverage balance sheet.
- Upside case: Consistent order intake acceleration, improved working capital management, and normalization of cash conversion could convert negative operating cash flow into positive cash flow, enhancing FCF per share and potentially enabling a dividend policy absent in QQ2 data.
- Downside risks: Delays in rail infrastructure projects, pricing pressure on large track maintenance machinery, higher working capital needs, or a shift in government policy toward capital allocation could dampen reported growth and cash generation. Key factors to monitor include order backlog evolution, project receivables collection, capex cadence, and any changes in export demand or international tendering activity.