Executive Summary
Ruichang Intl delivered a challenging QQ4 2024 quarter with a pronounced revenue downturn and margin compression, set against a backdrop of cyclicality in Chinese petrochemical capex. Revenue declined 34% YoY to 109.65 million CNY, driving gross profit down to 34.75 million CNY and a gross margin of 31.69%. Despite the lower top line, the company generated positive operating cash flow of 33.01 million CNY and free cash flow of 28.97 million CNY, aided by disciplined working capital management and the absence of material capital expenditures in excess of maintenance-related needs. However, net income posted a small loss of 0.60 million CNY for the quarter, reflecting non-operating charges and a tax/one-off impact, with an annualized perspective showing ongoing margin compression relative to the prior year. The balance sheet remains healthy, characterized by a net cash position (net debt of -15.77 million CNY), ample liquidity (cash and equivalents plus short-term investments of ~139.26 million CNY), and modest leverage (debt to equity ~0.29). Management commentary (where available) did not accompany a formal guidance in the provided data; thus, the outlook hinges on cyclical demand for refinery and petrochemical equipment, execution of cost controls, and potential diversification into related environmental/EVS equipment lines. This report integrates the QQ4 2024 data with available qualitative signals to outline implications for investors and the strategic path forward.
Key Performance Indicators
QoQ: 0.00% | YoY:-102.93%
QoQ: 0.00% | YoY:-102.21%
Key Insights
Revenue: 109,647,000 CNY in Q4 2024, down -34.02% YoY and flat QoQ. Gross profit: 34,749,000 CNY; gross margin: 31.69%. Operating income: 6,278,000 CNY; operating margin: 5.73%. EBITDA: 4,280,250 CNY; EBITDA margin: 3.90%. Net income: -598,000 CNY; net margin: -0.55%. EPS: -0.0012 CNY (diluted: -0.0012 CNY). ROC/ROE: ROA -0.0823%, ROE -0.154%. Cash flow: net cash from operating activities 33,009,500 CNY; capex (PPE) -4,038,999 CNY; free cash flow 28,970,500 CNY. Balance sheet highlights: cash an...
Financial Highlights
Revenue: 109,647,000 CNY in Q4 2024, down -34.02% YoY and flat QoQ. Gross profit: 34,749,000 CNY; gross margin: 31.69%. Operating income: 6,278,000 CNY; operating margin: 5.73%. EBITDA: 4,280,250 CNY; EBITDA margin: 3.90%. Net income: -598,000 CNY; net margin: -0.55%. EPS: -0.0012 CNY (diluted: -0.0012 CNY). ROC/ROE: ROA -0.0823%, ROE -0.154%. Cash flow: net cash from operating activities 33,009,500 CNY; capex (PPE) -4,038,999 CNY; free cash flow 28,970,500 CNY. Balance sheet highlights: cash and equivalents 129,910,000 CNY; cash + short-term investments 139,260,000 CNY; total debt 114,137,000 CNY; net debt -15,773,000 CNY; current ratio 1.77; quick ratio 1.61; debt to equity 0.29. CCC metrics indicate receivables days ~241, inventory days ~62.5, payables days ~185.6, resulting in a cash conversion cycle ~118 days. P/BV 1.16; P/S 4.11; P/E negative (~-188x). Enterprise value multiple ~101.59x (as per provided KPI snapshot).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
109.65M |
-34.02% |
0.00% |
| Gross Profit |
34.75M |
-41.33% |
0.00% |
| Operating Income |
6.28M |
-79.98% |
0.00% |
| Net Income |
-598.00K |
-102.93% |
0.00% |
| EPS |
0.00 |
-102.21% |
0.00% |
Key Financial Ratios
operatingProfitMargin
5.73%
priceEarningsRatio
-188.38
Management Commentary
Note: No earnings transcript content was supplied in the dataset. As a result, there are no management quotes or transcript themes to quote or group by. If a transcript becomes available, quotes can be added under theme bands such as Strategy, Operations, Markets, and Guidance.
Forward Guidance
No formal forward guidance was supplied in the provided data. Given the cyclicality of the industrials and petrochemical equipment sectors in China, Ruichang Intl’ s QQ4 2024 results suggest sensitivity to capex cycles in refining and petrochemicals. Key factors to monitor include: (1) order intake and backlog evolution in SRU, VOC incineration, catalytic cracking, and related process equipment; (2) the pace of capex recoveries in domestic petrochemical expansions and refinery modernization; (3) mix effects from higher-margin installation and services versus equipment sales; (4) working capital dynamics and potential changes to receivables days; (5) any new environmental or regulatory incentives that could drive investment in VOC abatement and process efficiency. Management could provide more color on backlog, project timing, and geographic diversification if/when guidance is issued.