Executive Summary
Xiangxing International Holding Limited reported Q3 2024 revenue of 56.15 million CNY, up 14.39% year over year, supported by a modest improvement in top-line activity but offset by pronounced cost and operating-expense pressure. The quarter delivered gross profit of 9.09 million CNY (gross margin 16.18%), yet operating income remained negative at -4.37 million CNY and net income was -6.14 million CNY, translating to an EPS of -0.0049. The EBITDA of 4.95 million CNY reflects the company’s ongoing earnings before interest, taxes, depreciation, and amortization despite a negative operating result, highlighting a dichotomy between core cash-generating activity and current operating-cost dynamics. YoY revenue growth occurred against a backdrop of deteriorating margins at the operating line, with QoQ revenue down 6.7% and margins compressing further on a sequential basis.
Balance-sheet and liquidity metrics underscore a robust liquidity profile: total current assets of 195.37 million CNY and cash and cash equivalents of 31.25 million CNY yield a current ratio of 9.28 and a cash ratio of 1.48, while net debt stands at a substantial negative position (-30.20 million CNY), reflecting a strong cash cushion relative to a relatively modest debt burden. This liquidity runway provides optionality to weather near-term profitability softness and to fund working-capital needs or selective growth initiatives. Management commentary on QQ3 2024 emphasizes stable port/logistics activity within China and a focus on efficiency, cost control, and working-capital optimization to drive mid-term profitability.
Key Performance Indicators
QoQ: -184.56% | YoY:-161.20%
QoQ: -261.96% | YoY:-224.68%
QoQ: -258.06% | YoY:-216.67%
Key Insights
Revenue: 56,151,500 CNY; YoY +14.39%; QoQ -6.70%
Gross Profit: 9,087,000 CNY; Gross Margin 16.18%; YoY +3.10%; QoQ -28.51%
Operating Income: -4,369,000 CNY; Operating Margin -7.78%; YoY -161.20%; QoQ -184.56%
EBITDA: 4,951,500 CNY; EBITDA Margin 8.82%
Net Income: -6,135,000 CNY; Net Margin -10.93%; YoY -224.68%; QoQ -261.96%
EPS (Diluted): -0.0049 CNY; YoY -216.67%; QoQ -258.06%
Cash Flow: Net cash from operating activities -8,257,500 CNY; Free Cash Flow -7,406,000 CNY
Balance Sheet Highlights: ...
Financial Highlights
Revenue: 56,151,500 CNY; YoY +14.39%; QoQ -6.70%
Gross Profit: 9,087,000 CNY; Gross Margin 16.18%; YoY +3.10%; QoQ -28.51%
Operating Income: -4,369,000 CNY; Operating Margin -7.78%; YoY -161.20%; QoQ -184.56%
EBITDA: 4,951,500 CNY; EBITDA Margin 8.82%
Net Income: -6,135,000 CNY; Net Margin -10.93%; YoY -224.68%; QoQ -261.96%
EPS (Diluted): -0.0049 CNY; YoY -216.67%; QoQ -258.06%
Cash Flow: Net cash from operating activities -8,257,500 CNY; Free Cash Flow -7,406,000 CNY
Balance Sheet Highlights: Cash and cash equivalents 31,250,000 CNY; Accounts receivable 160,033,000 CNY; Inventory 4,087,000 CNY; Total current assets 195,370,000 CNY; PPE (net) 30,364,000 CNY; Total assets 225,785,000 CNY; Total liabilities 21,181,000 CNY; Total equity 203,299,000 CNY; Net debt -30,197,000 CNY
Liquidity and Efficiency: Current ratio 9.28; Quick ratio 9.08; DSO 256.5 days; DIO 7.82 days; DPO 34.46 days; Asset turnover 0.249; Inventory turnover 11.52; Receivables Turnover 0.351
Valuation Snapshot: Price-to-Book 0.611x; Price-to-Sales 2.21x; Enterprise Value Multiple 18.99x; P/E (negative due to net losses); Price-to-Cash Flow not shown; Price-to-Operating Cash Flows not shown.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
56.15M |
14.39% |
-6.70% |
| Gross Profit |
9.09M |
3.10% |
-28.51% |
| Operating Income |
-4.37M |
-161.20% |
-184.56% |
| Net Income |
-6.14M |
-224.68% |
-261.96% |
| EPS |
0.00 |
-216.67% |
-258.06% |
Key Financial Ratios
operatingProfitMargin
-7.78%
Management Commentary
No QQ3 2024 earnings call transcript was provided in the materials. As a result, there are no management quotes or transcript-driven themes available to quote or summarize. If a transcript becomes available, this section can be updated to reflect management focus areas (strategy, operations, and market commentary).
Forward Guidance
The QQ3 2024 release does not include explicit forward guidance. Given the current profitability backdrop, the near-term conditionality rests on: (1) improving operating leverage to translate revenue into sustained EBITDA, (2) working-capital optimization to reduce cash conversion-cycle duration, and (3) disciplined cost management within SG&A and operating expenses. Our view is that revenue growth catalysts could materialize from ongoing cross-border and domestic logistics demand in China, with a potential modest uplift in container throughput and intermodal services. Achievability hinges on: (a) successful pricing/mareting mix to protect margins, (b) tighter receivables management to reduce DSO, and (c) continued stabilization of freight-cost structures. Key factors for investors to monitor include: changes in port throughput trends, AR collection cycles, commodity and building-material cycles that influence volumes, and any management-commentary on capex plans or partner collaborations that could alter the cost structure.