Executive Summary
Huayu Expressway Group Limited reported QQ2 2025 revenue of 37.92 million CNY, up 118.8% year over year (YoY) and 100% quarter over quarter (QoQ), driven by stronger toll road activity across its SuiYue Expressway and Qing Ping Expressway segments. Gross profit reached 6.62 million CNY, yielding a gross margin of 17.47%. EBITDA stood at 3.60 million CNY, while operating income remained negative at -4.32 million CNY, and net income registered a loss of 11.66 million CNY (EPS -0.0283). The bottom line deterioration despite EBITDA improvement reflects higher depreciation and amortization (8.59 million CNY) and sizable other expenses (-8.41 million CNY), as well as a modest tax recovery (51 thousand CNY). The quarter shows revenue momentum but profitability remains challenged, underscored by an operating margin of -11.39% and a net margin of -30.75%. Liquidity remains robust on a working capital basis (current ratio 3.45; quick ratio 1.48; cash ratio 0.59), yet capitalization is modestly leveraged (debt ratio 0.19; debt to equity 0.36; debt to capitalization 0.26). Operating cash flow per share is positive at 0.0281 CNY, but free cash flow per share is negative (-0.136 CNY) indicating ongoing capital expenditure and working capital needs. Management commentary is not available in the provided transcript data, limiting qualitative insights from the earnings call. The company trades with a negative P/E, a price-to-book of 0.23, and a price-to-sales of 2.23, suggesting a valuation discount relative to some peers despite improving top-line momentum. Investors should monitor toll revenue trajectories, capex pacing, working capital dynamics, and any regulatory or macro headwinds affecting expressway traffic volumes.
Key Performance Indicators
QoQ: 100.00% | YoY:118.79%
QoQ: 100.00% | YoY:156.38%
QoQ: -100.00% | YoY:20.15%
QoQ: -100.00% | YoY:-128.27%
QoQ: -100.00% | YoY:-128.23%
Key Insights
Revenue: 37.92m CNY, YoY +118.8%, QoQ +100.0% ; Gross Profit: 6.62m CNY, YoY +156.4%, QoQ +100.0%; Gross Margin: 17.47%; EBITDA: 3.60m CNY; Operating Income: -4.32m CNY; Operating Margin: -11.39%; Net Income: -11.66m CNY; Net Margin: -30.75%; Earnings per Share (basic/diluted): -0.0283 CNY; Weighted Avg Shares: 412.6m; Current Ratio: 3.45; Quick Ratio: 1.48; Cash Ratio: 0.59; Receivables Turnover: 7.40x; Days Sales Outstanding: 12.15 days; Inventory Turnover: 0.16x; Days Inventory Outstanding: 5...
Financial Highlights
Revenue: 37.92m CNY, YoY +118.8%, QoQ +100.0% ; Gross Profit: 6.62m CNY, YoY +156.4%, QoQ +100.0%; Gross Margin: 17.47%; EBITDA: 3.60m CNY; Operating Income: -4.32m CNY; Operating Margin: -11.39%; Net Income: -11.66m CNY; Net Margin: -30.75%; Earnings per Share (basic/diluted): -0.0283 CNY; Weighted Avg Shares: 412.6m; Current Ratio: 3.45; Quick Ratio: 1.48; Cash Ratio: 0.59; Receivables Turnover: 7.40x; Days Sales Outstanding: 12.15 days; Inventory Turnover: 0.16x; Days Inventory Outstanding: 571.43 days; Days Payables Outstanding: 66.24 days; Cash Conversion Cycle: 517.35 days; Gross Margin: 17.47%; Operating Margin: -11.39%; Pretax Margin: -33.58%; Tax Rate (effective): -0.40% (tax expense +51k on pre-tax -12.73m); Return on Assets (ROA): -1.67%; Return on Equity (ROE): -3.21%; Return on Capital Employed (ROCE): -0.73% ; NetDebt/EBITDA not disclosed; Price-to-Book: 0.23; Price-to-Sales: 2.23; Price-to-Operating-Cash-Flow: 14.59; Operating Cash Flow per Share: 0.0281; Free Cash Flow per Share: -0.136; Dividend Payout Ratio: 0%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
37.92M |
118.79% |
100.00% |
| Gross Profit |
6.62M |
156.38% |
100.00% |
| Operating Income |
-4.32M |
20.15% |
-100.00% |
| Net Income |
-11.66M |
-128.27% |
-100.00% |
| EPS |
-0.03 |
-128.23% |
-100.00% |
Key Financial Ratios
operatingProfitMargin
-11.4%
operatingCashFlowPerShare
$0.03
freeCashFlowPerShare
$-0.14
Management Commentary
Note: The earnings transcript content is not provided in the data set. No management quotes or themes are available to extract. If a transcript becomes available, a structured highlights section should group insights by themes such as strategy, operations, and market conditions, with quotes and context.
Forward Guidance
No explicit forward guidance was provided in the QQ2 2025 release. Given the current financials, management’s near-term focus is likely on improving profitability through cost optimization (notably D&A absorption and operating expenses) and sustaining toll revenue growth. The absence of guidance limits visibility on earnings trajectory or capex plan. Investors should monitor: (1) toll revenue trends across SuiYue and Qing Ping expressways, (2) capital expenditure cadence and asset impairments, (3) working capital management and inventory dynamics (notably high days of inventory), and (4) refinancing needs or debt maturity profiles as leverage remains modest but earnings volatility persists.