Qiniu (SEHK:2567) Loss Narrows To C¥33.4m Challenging Persistent Bearish Narratives

Qiniu (SEHK:2567) has opened FY 2025 with first half revenue of C¥829.4 million and a basic EPS loss of C¥0.02 per share, alongside a net income loss of C¥33.4 million. This sets a cautious tone for investors watching the company’s path toward profitability. The company has seen first half revenue move from C¥710.4 million in FY 2024 to C¥829.4 million in FY 2025, while basic EPS shifted from a loss of C¥0.41 to a smaller loss of C¥0.02. This frames a set of results where revenue scale and earnings per share trends sit against pressure on margins and ongoing losses.

See our full analysis for Qiniu.

With the headline numbers on the table, the next step is to see how this mix of revenue growth and continuing losses compares with the prevailing stories investors tell about Qiniu, and where those narratives might need updating.

Curious how numbers become stories that shape markets? Explore Community Narratives

Revenue Scale Grows Faster Than Losses Shrink

• First half FY 2025 revenue is C¥829.4 million compared with C¥710.4 million in the first half of FY 2024, while the loss on net income excluding extra items narrowed from C¥179.6 million to C¥33.4 million.
• What stands out for a more bullish view is that a C¥118.9 million step up in first half revenue sits alongside a C¥146.2 million reduction in net income losses. This supports the idea that higher scale is starting to show up in smaller losses even though profitability has not yet been reached.
  • Over the last trailing twelve months, total revenue figures range from C¥1,333.99 million to C¥1,768.71 million, while losses on net income excluding extra items narrowed from C¥459.4 million to C¥57.9 million. This strongly supports a bullish angle that the earnings profile is gradually improving off a loss making base.
  • At the same time, a 7.2% annual decline in earnings over five years reminds bullish investors that progress has come after a multi year deterioration. The thesis relies on the recent pattern of smaller losses continuing rather than on a long history of stable profits.

Bulls who focus on revenue scale and shrinking losses may see this as the early stages of a financial reset. Others will watch for more periods to judge how durable this shift really is. 📊 Read the what the Community is saying about Qiniu.

Unprofitable Status Persists Despite C¥57.9m LTM Loss

• On a trailing twelve month basis, net income excluding extra items remains in loss territory at C¥57.9 million, with earlier trailing periods showing losses of C¥313.2 million, C¥459.4 million and C¥324.1 million.
• Critics highlight that, despite the improvement in the size of the loss, Qiniu is still unprofitable and that a 7.2% annual decline in earnings over five years backs a bearish narrative focused on the durability of these losses.
  • The pattern of trailing twelve month losses in the hundreds of millions of CNY before the latest C¥57.9 million figure gives bears numerical support for the view that the business has spent several periods without positive earnings.
  • Because no forecast growth or cash flow projections are provided, bearish investors may see the existing loss history and the five year earnings decline as the clearest hard data point when weighing how much patience they want with the current loss making profile.

0.5x P/S Stands Out Against 2x Industry

• The trailing P/S ratio of 0.5x sits below both the Hong Kong software industry average of 2.0x and a peer average of 0.7x, even as the current share price is HK$0.46.
• What is interesting for valuation focused investors is that this low sales multiple sits alongside multi year earnings declines of 7.2% a year and continued losses, creating tension between a bearish focus on profitability and a more constructive view that current pricing already reflects many of those risks.
  • On one hand, the unprofitable status and repeated losses on net income excluding extra items give bears concrete figures to justify caution on the business model.
  • On the other hand, trading at one quarter of the industry P/S multiple means bulls can argue that any future progress on earnings would be starting from what the data describes as an inexpensive sales multiple relative to peers.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Qiniu's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

These results raise questions about how much risk you are comfortable taking on, so it makes sense to check the underlying data yourself and move quickly while the information is fresh. To round out your view, take a close look at the company's 1 important warning sign

See What Else Is Out There

Qiniu still carries a C¥57.9 million trailing twelve month loss, a multi year 7.2% annual earnings decline and an unprofitable record that may test investor patience.

If that mix of ongoing losses and earnings pressure feels uncomfortable, you can quickly compare it with companies that screen as 283 resilient stocks with low risk scores to see options that may better align with your portfolio risk preferences.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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