Linklogis Inc (9959.HK) Q2 2025 Earnings Report

Linklogis delivered a resilient top-line performance in QQ2 2025, with revenue of CNY 374.506 million, up 21.19% year over year, and a gross margin of 56.04%. The gross profit of CNY 209.864 million supported by strength in cloud-enabled supply chain finance offerings underscores the platform’s monetization potential. However, the quarter saw a meaningful deterioration in profitability, as EBITDA registered a loss of CNY 320.855 million and net income declined to a loss of CNY 379.727 million, driven by sustained investments in growth initiatives. Operating expenses totaled CNY 546.974 million, with R&D at CNY 142.525 million and selling, general and administrative expenses at CNY 395.839 million, highlighting a heavy investment cycle to scale the Anchor Cloud, FI Cloud, and Crossborder Cloud ecosystems. On the balance sheet and cash flow front, the company maintains robust liquidity with a current ratio of 7.72, cash ratio of 5.20, and cash per share of 2.69. Operating cash flow per share stood at 0.109 CNY and free cash flow per share at 0.0918 CNY, indicating cash generation despite ongoing losses and the capacity to fund growth initiatives without additional leverage. The company remains lightly levered (debt ratio 0.0091; debt to equity 0.0103), which supports an investment thesis centered on long-duration platform monetization rather than immediate profitability. Given a high platform-enabled revenue trajectory and a continued emphasis on cloud-based solutions for anchor enterprises, banks, and cross-border trade, the near-term investor takeaway hinges on the pace of monetization, gross margin stabilization, and operating expense discipline as scale increases. Management commentary, if provided, would be essential to gauge confidence around trajectory toward profitability and cash generation as the company expands its Anchor Cloud, FI Cloud, Crossborder Cloud, and SME Credit Tech Solution ecosystems.