Executive Summary
NetaGo Technology reported QQ3 2024 revenue of HKD 94.65 million, up 98.5% year over year from HKD 47.68 million in QQ3 2023, driven by expansion in janitorial and waste-management services. However, the quarter ended with a significant operating loss of HKD 40.15 million and a net loss of HKD 9.08 million, as gross margin remained thin at approximately 2.07% and SG&A plus operating costs outweighed top-line gains. EBITDA deteriorated to HKD -51.96 million, underscoring structural cost headwinds and the need for margin optimization.
Key Performance Indicators
QoQ: -10.22% | YoY:98.49%
QoQ: -70.84% | YoY:-60.54%
QoQ: -785.89% | YoY:-93.31%
QoQ: -88.63% | YoY:44.83%
QoQ: -295.16% | YoY:-2.94%
Key Insights
Revenue: HKD 94.65 million for QQ3 2024, YoY +98.49%, QoQ -10.22%. Gross Profit: HKD 1.96 million, Gross Margin 2.07% (YoY -60.54%, QoQ -70.84%). Operating Income: HKD -40.15 million, Operating Margin -42.42% (YoY and QoQ not consistently reported in the data). EBITDA: HKD -51.96 million, EBITDA Margin -54.90%. Net Income: HKD -9.08 million, Net Margin -9.59% (YoY not disclosed for net in isolation; QoQ not disclosed). EPS: HKD -0.0245, Diluted -0.0245; YoY EPS change -2.94%, QoQ -295.16%. Balan...
Financial Highlights
Revenue: HKD 94.65 million for QQ3 2024, YoY +98.49%, QoQ -10.22%. Gross Profit: HKD 1.96 million, Gross Margin 2.07% (YoY -60.54%, QoQ -70.84%). Operating Income: HKD -40.15 million, Operating Margin -42.42% (YoY and QoQ not consistently reported in the data). EBITDA: HKD -51.96 million, EBITDA Margin -54.90%. Net Income: HKD -9.08 million, Net Margin -9.59% (YoY not disclosed for net in isolation; QoQ not disclosed). EPS: HKD -0.0245, Diluted -0.0245; YoY EPS change -2.94%, QoQ -295.16%. Balance Sheet: Total Assets HKD 977.51 million; Total Liabilities HKD 629.09 million; Total Equity HKD 317.82 million. Cash & Equivalents: HKD 210.49 million; Cash & Short-Term Investments: HKD 342.88 million; Net Debt: HKD -66.28 million (net cash). Current Ratio 1.317, Quick Ratio 1.289, Cash Ratio 0.471. Revenue efficiency measures show Asset Turnover 0.097 and Inventory Turnover 7.33. Valuation: Price-to-Book 1.40, Price-to-Sales 4.69; Enterprise Value multiples negative due to cash-rich balance sheet. Earnings per share and share count reflect a base of 370.14 million weighted-average shares with potential dilutive impact (diluted 767.80 million).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
94.65M |
98.49% |
-10.22% |
| Gross Profit |
1.96M |
-60.54% |
-70.84% |
| Operating Income |
-40.15M |
-93.31% |
-785.89% |
| Net Income |
-9.08M |
44.83% |
-88.63% |
| EPS |
-0.02 |
-2.94% |
-295.16% |
Key Financial Ratios
operatingProfitMargin
-42.4%
priceEarningsRatio
-12.24
Management Commentary
No QQ3 2024 earnings call transcript was provided in the available data; management commentary and quotes are not disclosed in the supplied materials.
Forward Guidance
No explicit forward guidance was disclosed in the QQ3 2024 materials. Industry trends in the waste-management sector suggest continued demand for municipal and commercial maintenance, with potential margin pressure from wage inflation, regulatory costs, and competitive bidding. Investors should monitor: (1) trajectory of gross margin and SG&A as a percent of revenue; (2) progression on cost optimization and any scale-driven operating leverage; (3) contract mix and receivables management; (4) working capital dynamics given noted current liabilities and other current liabilities; (5) any new contracts or geographic expansion in HK vs Mainland China. Management commentary, if provided later, would clarify near-term targets for margin stabilization and cash generation.