Executive Summary
Legend Strategy International Holdings Group Company Limited (1355.HK) reported QQ4 2024 revenue of HKD 10.79 million, down 70.95% year over year, with a gross profit of HKD 6.13 million and a gross margin of 56.8%. The quarter delivered a modest EBITDA of HKD 0.91 million but flagged a substantial operating loss of HKD 17.74 million driven by higher operating and other expenses, culminating in a net loss of HKD 12.17 million (EPS -0.0244). Management commentary is not included in the supplied transcript dataset; as such, quotes and qualitative guidance from the earnings call are not extractable from this source. On the balance sheet, the company carries a heavy debt load (total debt HKD 164.99 million) and negative equity (HKD -42.36 million), with liquidity pressures reflected in weak near-term liquidity ratios (current ratio 0.24, quick ratio 0.24, cash ratio 0.19). Cash and equivalents stood at HKD 13.86 million at period-end. Operating cash flow was positive at HKD 6.56 million, contributing to free cash flow of HKD 6.39 million, while cash inflows from financing activities totaled HKD -6.97 million and net debt remained substantial (net debt HKD 151.14 million). The quarter’s performance underlines a high-risk, turnaround-oriented investment profile in a muted PRC travel lodging environment, where deleveraging, cost discipline, and occupancy stabilization will be critical to material profitability improvements. Investors should monitor debt renegotiation potential, any equity dilution needs (the company issued about HKD 14.99 million in common stock during the period), and early signals of occupancy/revenue stabilization as catalysts for improvement.
Key Performance Indicators
QoQ: 0.00% | YoY:-194.11%
Key Insights
Revenue: HKD 10.79 million; YoY change: -70.95%; QoQ change: 0.00%. Gross Profit: HKD 6.1335 million; YoY change: -56.15%; QoQ change: 0.00%. Operating Income: -HKD 17.741 million; YoY change: -194.11%; QoQ change: 0.00%. Net Income: -HKD 12.1655 million; YoY change: +62.94%; QoQ change: 0.00%. EPS: -0.0244 HKD; YoY change: +66.67%; QoQ change: 0.00%. Gross Margin: 56.84%; EBITDA: HKD 0.9078 million; EBITDA Margin: 8.41% (EBITDA to revenue basis). Operating Margin: -1.64%; Net Margin: -1.13%. Ca...
Financial Highlights
Revenue: HKD 10.79 million; YoY change: -70.95%; QoQ change: 0.00%. Gross Profit: HKD 6.1335 million; YoY change: -56.15%; QoQ change: 0.00%. Operating Income: -HKD 17.741 million; YoY change: -194.11%; QoQ change: 0.00%. Net Income: -HKD 12.1655 million; YoY change: +62.94%; QoQ change: 0.00%. EPS: -0.0244 HKD; YoY change: +66.67%; QoQ change: 0.00%. Gross Margin: 56.84%; EBITDA: HKD 0.9078 million; EBITDA Margin: 8.41% (EBITDA to revenue basis). Operating Margin: -1.64%; Net Margin: -1.13%. Cash Flow: Net cash provided by operating activities HKD 6.551 million; Capex HKD -0.161 million; Free Cash Flow HKD 6.39 million. Balance Sheet: Total assets HKD 75.054 million; Total liabilities HKD 180.404 million; Total stockholders’ equity HKD -42.355 million; Total debt HKD 164.992 million; Net debt HKD 151.135 million; Cash HKD 13.857 million; Current ratio 0.243; Quick ratio 0.237; Cash ratio 0.189. Asset Turnover 0.144; Inventory Turnover 11.58; Receivables Turnover 11.18; Debt to Equity ratio reported as negative in some disclosures due to negative equity; Price-to-book and price-to-sales ratios imply a distressed valuation. Four-quarter history shows continued weak top-line performance with single-quarter variability.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.79M |
-70.95% |
0.00% |
| Gross Profit |
6.13M |
-56.15% |
0.00% |
| Operating Income |
-17.74M |
-194.11% |
0.00% |
| Net Income |
-12.17M |
62.94% |
0.00% |
| EPS |
-0.02 |
66.67% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-164.4%
Management Commentary
No earnings-call quotes are provided in the supplied dataset. Therefore, there are no management quotes or themes to extract under transcriptHighlights. If a transcript becomes available, the highlights would typically cover strategy (capital allocation, deleveraging plan), operations (occupancy trends, pricing, cost controls), and market conditions (PRC travel demand, regulatory environment).
Forward Guidance
There is no explicit forward guidance disclosed in the supplied data. Given the quarter’s deterioration in revenue and persistent profitability pressures, investors should be cautious and look for near-term milestones such as: (1) debt refinancing or restructuring terms that reduce annual debt service requirements, (2) any equity financing to restore net equity and strengthen the balance sheet, (3) management-led cost optimization initiatives to reduce SG&A and other non-operating expenses, and (4) occupancy or ADR improvements in Legend Strategy’s PRC accommodation portfolio. In the absence of stated targets, the achievability of turnaround hinges on: stabilizing cash flow generation, improving occupancy in the company’s portfolio, and a credible deleveraging plan that provides covenant relief and extends maturities. Key monitoring factors for investors include quarterly debt levels, cash flow from operations, occupancy/utilization metrics, and any new strategic partnerships or asset-light initiatives that could enhance profitability without a commensurate rise in financial risk.