Executive Summary

Q1 2025 revenue was $961,954, down 23.7% year over year, with net income of $183,485, down 50.9% year over year, as the company prioritized “operational agility and resource realignment” in a softer demand backdrop .
Gross margin compressed versus prior year, while cash and cash equivalents remained strong at approximately $8.91 million at quarter-end, supporting ongoing operations and strategic flexibility .
No formal financial guidance was provided; management emphasized optimizing the service portfolio toward performance-driven marketing and integrated brand strategy consulting .
Prior context: the company paid a one-time special cash dividend of approximately $2.21 million in Q3 2024 and highlighted a revenue decline in a live-streaming client during FY 2024, with partial offsets from other consultancy services .

What Went Well and What Went Wrong

Cash position remained robust at approximately $8.91 million, providing balance sheet strength amid revenue pressure .
Management reaffirmed focus on high-value digital advisory services and platform-based solutions, with planned expansion in brand consulting, omni-channel e-commerce integration, and performance-based marketing campaigns .
Quote: “We have prioritized operational agility and resource realignment to enhance service quality and client outcomes…[and] are actively optimizing our service portfolio with a focus on performance-driven marketing and integrated brand strategy consulting” — Guolin Tao, CEO .

Revenue fell 23.7% year over year to $961,954 and net income declined 50.9% year over year to $183,485, reflecting demand softness and mix effects .
FY 2024 context indicated reduced revenue tied to a client engaged in live streaming, with only partial offset from other consultancy services, suggesting lingering headwinds in specific customer verticals .
Gross margin was lower versus prior year, consistent with prior commentary on increased costs (new service provider and salary adjustments) noted in Q3 2024, though specific Q1 cost drivers were not detailed .

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD)	$1,670,203	$1,080,018*	$961,954
Net Income ($USD)	$703,615	$62,052*	$183,485
Diluted EPS ($USD)	$0.000413*	$0.000036*	$0.000107*
Gross Profit ($USD)	$1,490,851	$903,347*	$789,683*
Gross Profit Margin (%)	89.26%*	83.64%*	82.09%*
EBITDA ($USD)	$1,075,626*	$211,051*	$338,318*
EBITDA Margin (%)	64.40%*	19.54%*	35.17%*
EBIT Margin (%)	63.80%*	18.61%*	34.16%*
Cash and Equivalents ($USD)	$8,275,329	$8,488,063*	$8,912,591

Notes: *Values retrieved from S&P Global.

YoY comparisons for Q1:

Metric	Q1 2024	Q1 2025	Change
Revenue ($USD)	$1,260,053*	$961,954	-23.7%
Net Income ($USD)	$373,496*	$183,485	-50.9%
Diluted EPS ($USD)	$0.000219*	$0.000107*	-51.1%*
Gross Profit Margin (%)	87.19%*	82.09%*	-5.10 pp*
Cash and Equivalents ($USD)	$9,680,626*	$8,912,591	-$768,035 (-7.9%)*

Notes: *Values retrieved from S&P Global.

Estimates vs Actuals (Q1 2025):

Metric	Consensus (Q1 2025)	Actual (Q1 2025)	Delta
Revenue ($USD)	N/A*	$961,954	N/A*
Primary EPS ($USD)	N/A*	$0.000107*	N/A*

Notes: *Values retrieved from S&P Global. Consensus unavailable.

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance (revenue, margins, EPS, OpEx, tax)	Q2 2025 / FY 2025	None provided	None provided	Maintained (no formal guidance)

Management provided strategic outlook but did not furnish quantitative ranges for revenue, margins, OpEx, OI&E, tax rate, or segment guidance .

Topic	Previous Mentions (Q3 2024 and Q4/FY 2024)	Current Period (Q1 2025)	Trend
Digital advisory/technology initiatives	Diversified consultancy services; included support for live‑streaming sector . FY: expanding digital marketing consultancy, omni‑channel sales strategy, e‑commerce traffic optimization .	Focus on performance‑driven marketing and integrated brand strategy consulting; platform‑based solutions .	Gradual pivot toward performance‑based, omni‑channel advisory .
Macro/mix headwinds	Macroeconomic uncertainties cited; special dividend paid in Q3 . FY: reduced revenue in a live‑streaming client; risks include RMB fluctuations and rising labor costs .	“Continuously evolving market landscape” leading to portfolio optimization .	Persistent macro pressures; mix normalization from live‑streaming exposure .
Capital returns	One‑time special cash dividend of ~$2.21M paid Sept 2024 .	No capital return actions disclosed for Q1 .	Dividend program paused since special payout .
Client/segment mix	FY: decline attributable to a live‑streaming client; offset by other consultancy services .	Emphasis on diversified, performance‑driven offerings; client mix not specifically detailed .	Diversification continues; less reliance on single vertical .
Cash/liquidity	Cash and equivalents $8.28M post dividend (Q3) .	Cash and equivalents ~$8.91M (Q1) .	Strengthening cash balance quarter‑over‑quarter .

“We have prioritized operational agility and resource realignment to enhance service quality and client outcomes… This strategic adjustment underscores our long‑term commitment to building a more resilient and sustainable consultancy platform” — Guolin Tao, CEO .
FY context: “Despite the challenging market environment in 2024, we maintained profitability by optimizing our business structure and controlling costs. Moving forward, we will continue to diversify our service offerings, and proactively address changes in the regulatory landscape” — Guolin Tao, CEO .

No public earnings call transcript or Q&A disclosures were available in the company’s Q1 2025 filings and press releases reviewed .

S&P Global consensus estimates for Q1 2025 revenue and EPS were unavailable; comparisons are anchored to reported actuals [GetEstimates: Q1 2025 returned actual revenue only; consensus fields empty]*.
Given the absence of consensus, sell‑side models may need to reflect weaker Q1 revenue and net income, alongside management’s pivot to performance‑driven offerings .

Notes: *Values retrieved from S&P Global.

Demand/mix softness drove a 23.7% YoY revenue decline and 50.9% YoY net income decline; focus should be on the trajectory of client acquisition and performance‑based campaign uptake in coming quarters .
Cash of ~$8.91M provides a buffer to fund operations and reposition offerings despite near‑term volatility .
Watch cost structure and margins: prior commentary cited increased costs (service provider and salary adjustments); margin stabilization is a key medium‑term lever .
Strategy pivot is clear: expanded brand consulting, omni‑channel integration, and performance‑driven marketing aim to reduce reliance on vulnerable verticals (e.g., live‑streaming) .
With no formal guidance, near‑term trading may hinge on incremental disclosures and evidence of pipeline conversion; prior dividend signals balance sheet flexibility but no continuation implied .
Monitor regulatory/macro risks in China (RMB, labor costs) highlighted in FY materials, which can affect pricing and execution .
For medium‑term thesis, a successful shift to value‑added, performance‑based consultancy and omni‑channel solutions could stabilize revenues and margins; track gross margin and EBITDA margin trends as leading indicators*.

Notes: *Values retrieved from S&P Global.