Knowledge Atlas Technology (SEHK:2513) Revenue Growth Contrasts With Deepening EPS Losses

Knowledge Atlas Technology (SEHK:2513) has released its FY 2025 figures with first half revenue of C¥190.9 million and a basic EPS loss of C¥62.27, set against trailing twelve month revenue of C¥724.3 million and a net loss of about C¥4.7b. Over recent periods the company has seen revenue move from C¥44.9 million in 1H 2024 to C¥267.5 million in 2H 2024 and then C¥190.9 million in 1H 2025, while basic EPS losses shifted from C¥36.67 to C¥50.56 and then C¥62.27 per share. For investors, strong top line expansion sits beside deeply negative EPS and net income, so the focus now is on whether margins can stop compressing and eventually turn a corner.

See our full analysis for Knowledge Atlas Technology.

With the headline numbers on the table, the next step is to see how this mix of rapid revenue growth and heavy losses lines up with the dominant narratives around Knowledge Atlas Technology and where those stories may need updating.

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

131.9% revenue growth but earnings still deep in the red

• Over the last 12 months, revenue reached C¥724.3 million, up 131.9% year on year, while net income for the same period was a loss of about C¥4.7b, which means the business is bringing in more sales but those sales are not yet covering costs.
• What stands out for a bullish view is that strong reported revenue growth of 131.9% and projected revenue growth of about 63.9% a year sit next to persistent losses, so anyone optimistic on the long term needs to see whether margins can improve from a trailing loss of about C¥4.7b.
  • Supporters of a bullish angle can point to revenue stepping up from C¥44.9 million in 1H 2024 to C¥267.5 million in 2H 2024 and C¥190.9 million in 1H 2025 as evidence that customers are spending more with the company.
  • At the same time, the fact that net income stayed deeply negative in each half, including a C¥993.3 million loss in 1H 2025, challenges any bullish claim that scale is already bringing earnings closer to break even.

Losses widen as EPS and net income move further negative

• Basic EPS moved from a loss of C¥36.67 in 1H 2024 to a loss of C¥50.56 in 2H 2024 and then to a loss of C¥62.27 in 1H 2025, alongside half year net income losses of C¥587.6 million, C¥806.5 million and C¥993.3 million, showing that each share is absorbing a larger loss even as revenue expands.
• Bears highlight that earnings are forecast to decline by about 6.5% a year over the next three years and that the company is expected to stay unprofitable, and the step up in trailing 12 month net losses from C¥444.9 million in 2H 2023 to C¥1.4b in 2H 2024 and then to about C¥4.7b by 2H 2025 lines up with that cautious view.
  • Critics can point to the trailing 12 month EPS moving from a loss of C¥29.46 in 2H 2023 to a loss of C¥87.20 in 2H 2024 and then to a loss of C¥112.82 by 1H 2025 as support for the idea that profitability is not yet stabilising.
  • That pattern, together with forecasts that do not show a path to earnings turning positive in the next three years, reinforces a bearish concern that rapid revenue growth on its own is not yet translating into financial improvement.

Negative equity, volatile share price and valuation tension

• The company currently has negative shareholders’ equity with a P/B of 37.7x in absolute terms compared with positive peer and industry averages, and the share price of C¥779.0 has also been highly volatile over the past three months, which means short term price moves can be large compared with changes in underlying book value.
• For a more cautious narrative, investors point out that negative equity, forecast earnings declines of about 6.5% a year and a history of losses, including about C¥4.7b of trailing 12 month net losses, sit uneasily next to a high absolute P/B multiple and recent share price swings. The key question is how much risk readers are comfortable taking on for exposure to the company’s high growth revenue profile.
  • Those concerns are reinforced by the combination of negative equity and a Price to Book ratio that is far above peers, which leaves little room for error if profitability does not improve from the current large loss base.
  • The recent share price volatility relative to the Hong Kong market means that any change in sentiment around the earnings path or balance sheet can quickly translate into large mark to market moves for shareholders.

If you want a broader, community driven view on whether this trade off between rapid growth and heavy losses still stacks up, it is worth seeing how different investors are connecting these earnings to their long term story for the stock 📊 Read the what the Community is saying about Knowledge Atlas Technology.

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 Knowledge Atlas 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.

With sentiment clearly split between growth potential and heavy losses, it makes sense to look at the numbers yourself and move quickly to form your own view using the 2 key rewards and 4 important warning signs.

Explore Alternatives

Heavy losses of about C¥4.7b, widening EPS deficits and negative equity suggest the current risk profile may feel uncomfortable for many investors.

If you want ideas that lean more on balance sheet strength and financial resilience, shift your focus toward companies in the solid balance sheet and fundamentals stocks screener (382 results) to potentially reduce portfolio risk.

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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