Unisound AI Technology (SEHK:9678) Heavy C¥297m Losses Challenge Bullish Margin Narratives

Unisound AI Technology (SEHK:9678) has reported its FY 2025 first half with revenue of C¥405.0 million and a loss per share of C¥4.28, alongside a net loss excluding extra items of C¥297.1 million, setting a clear focus on how quickly margins can improve from here. The company has seen first half revenue move from C¥337.0 million and EPS of C¥3.68 loss in FY 2024 to C¥405.0 million and EPS of C¥4.28 loss in FY 2025, while trailing twelve month revenue reached about C¥1.2 billion against a net loss of C¥326.6 million. The latest figures keep attention firmly on when revenue scale can start to relieve margin pressure.

See our full analysis for Unisound AI Technology.

With the headline numbers on the table, the next step is to see how this mix of top line growth and ongoing losses lines up with the widely followed narratives around Unisound AI Technology's path to stronger margins and long term profitability.

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29% revenue growth sets the backdrop

• Over the last 12 months, revenue grew 29% year on year, and the trailing twelve month total reached C¥1.2b, compared with C¥404.9m reported for the latest half alone.
• What matters for a bullish view is that this revenue momentum is paired with forecasts calling for about 43.5% yearly growth. However, the TTM net loss of C¥326.6m and basic EPS loss of C¥4.65 show that higher sales are not yet translating into positive earnings, which keeps the bullish story focused on whether this level of growth can eventually support a path to profitability.
  • Revenue reported for FY 2025 H1 was C¥404.9m, versus C¥337.0m in FY 2024 H1, while net income excluding extra items moved from a C¥255.2m loss to a C¥297.1m loss over the same halves.
  • Across the last few trailing periods, net income excluding extra items has stayed in the C¥300m to C¥490m loss range. This challenges any bullish expectation that scale has already started to materially reduce reported losses.

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Losses stay heavy around C¥300m

• For FY 2025 H1, net income excluding extra items was a loss of C¥297.1m and basic EPS was a C¥4.28 loss, while the trailing twelve month net loss excluding extra items was C¥326.6m with a C¥4.65 loss per share.
• Critics who focus on the bearish angle point to these losses as a key concern, and the data supports that view because net profit margin information remains in loss making territory, with TTM net income excluding extra items between C¥326.6m and C¥494.3m of losses over recent halves and no reported improvement in net profit margin over the last 12 months.
  • FY 2024 H1 already showed a C¥255.2m loss and C¥3.68 loss per share, so the latest C¥297.1m loss and C¥4.28 loss per share indicate that absolute losses are still substantial on a half year basis.
  • Across the last few trailing half year periods, basic EPS losses are reported between C¥5.57 and C¥7.12. This reinforces the bearish focus on ongoing dilution of per share earnings rather than any clear move toward breakeven.

P/S of 9x sits between peers and sector

• The current P/S multiple of 9x is described as lower than the peer average of 13.7x but higher than the Hong Kong software industry average of 2.3x, so the stock trades between its closer peer group and the broader sector.
• What is interesting for valuation focused investors is that this in between P/S level comes alongside a current share price of C¥283.20 and revenue that has grown 29% over the past year. Investors are paying more per unit of sales than the wider software group but less than the specific peer set, while the business still reports a TTM net loss of C¥326.6m and no improvement in net profit margin.
  • With TTM revenue at about C¥1.2b and a 9x P/S, the multiple reflects that the market is assigning a higher value to each yuan of sales than the 2.3x sector average even though the company remains loss making.
  • At the same time, the lower P/S versus the 13.7x peer figure sits next to comments about high share price volatility over the last three months, so investors weighing valuation also need to account for the recent swings in market pricing.

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 Unisound AI Technology'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.

The mix of growth hopes and ongoing losses will mean different things to different investors. It makes sense to move quickly, review the data that matters most to you, and then weigh up the company's 2 key rewards and 1 important warning sign

See What Else Is Out There

Heavy recurring losses around C¥300m, persistent EPS pressure and lack of margin improvement suggest the current growth story still carries meaningful risk for investors.

If you want ideas that put more weight on resilient fundamentals and potentially steadier risk profiles, check out the 284 resilient stocks with low risk scores to compare alternatives before committing fresh capital.

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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