Revenue and profitability highlights (HKD, period: QQ3 2024):
- Revenue: 49,832,500; YoY growth: 189.8%; QoQ growth: 66.5%. Rationale: The fourth-quarter 2024/sequential starts suggest demand rebound or expansion in product mix, though visibility remains constrained by profitability pressures.
- Gross Profit: 3,113,000; Gross Margin: 6.25%; YoY: 163.05%; QoQ: -43.62%. Implication: Revenue expansion outpaced gross profit growth, indicating a lower-achieving product mix or elevated COGS that prevented margin expansion.
- Operating Income: -17,354,000; Margin: -34.82%; YoY: 24.63%; QoQ: 18.99%. Implication: Despite revenue lift, fixed SG&A and other operating expenses continue to overwhelm gross profit.
- Net Income: -24,233,000; Net Margin: -48.63%; YoY: 33.15%; QoQ: -13.95%. Implication: Net loss persists with limited offset from non-cash items; earnings quality remains a challenge.
- EPS: -0.0394; QoQ change: 18.26% (YoY: -108.47%). Implication: Earnings per share remain negative despite top-line growth, signaling ongoing profitability pressures.
- EBITDA: -17,209,500; EBITDA Margin: -34.53%; EBITDARatio: -0.3453. Implication: Cash profitability remains negative, underscoring the need for cost discipline or higher-margin sales.
- Liquidity: Cash & short-term investments 66.51m; Total debt 26.60m; Net debt (as reported) 20.38m; Current ratio 2.79; Quick ratio 2.56; Cash ratio 0.11. Implication: The balance sheet shows meaningful liquidity and a modest leverage profile that affords flexibility to weather current losses, but reliance on near-term financing remains a consideration if losses persist.