Executive Summary
Kidsland International reported QQ3 2024 revenue of CNY 240.4 million, with a gross profit of CNY 58.97 million and a gross margin of 24.5%. The quarter produced a net loss of CNY 60.999 million and an EPS of -0.0762, reflecting ongoing profitability headwinds amid elevated operating expenses and a leveraged balance sheet. Management delivered a modest positive operating cash flow of CNY 6.28 million and a free cash flow of CNY 0.834 million, underscoring limited cash generation despite some working capital improvements. The company continues to face liquidity strain, with negative equity of CNY -89.79 million and total debt of CNY 335.52 million, resulting in a weak balance sheet profile even as short-term liquidity metrics show marginal stability (current ratio 0.962, quick ratio 0.313, cash ratio 0.0472).
Key revenue and profitability trends indicate a sequential and year-over-year slowing environment. Revenue declined -16.21% year-over-year and -2.60% quarter-over-quarter, while gross profit fell -20.15% YoY and -29.76% QoQ, pointing to reduced sales efficiency and ongoing cost pressures. Operating income remained negative at -CNY 57.16 million, with EBITDA of -CNY 44.53 million, highlighting elevated selling, general, and administrative expenses relative to top-line performance. Net income, while still negative, improved marginally by ~4.6% YoY but deteriorated ~52.2% QoQ, driven by the same margin and expense dynamics.
From a liquidity and solvency standpoint, the business exhibits constrained flexibility. Net debt stands at approximately CNY 318.9 million, and the company carries a total liability stack of about CNY 538.1 million against assets of CNY 454.2 million. The inventory turnover is subdued (inventory days ~113.5) with receivables days around 15.3, resulting in a cash conversion cycle of roughly 70.8 days. Management guidance remains unavailable in the QQ3 release, necessitating cautious interpretation of the path to sustainable profitability and balance-sheet repair. Investors should monitor capital structure actions, potential capital injections, and resolutions to working-capital efficiency as levers for a credible recovery sortie.
Key Performance Indicators
QoQ: -2.60% | YoY:-16.21%
QoQ: -29.76% | YoY:-20.15%
Key Insights
Revenue: 240,418,000; YoY -16.21%; QoQ -2.60%
Gross Profit: 58,969,000; YoY -20.15%; QoQ -29.76%
Gross Margin: 24.53%
Operating Income: -57,162,500; YoY +2.28%; QoQ -57.52%
Operating Margin: -23.78%
EBITDA: -44,528,500; EBITDARatio: -18.52%
Net Income: -60,998,500; YoY +4.55%; QoQ -52.20%
Net Margin: -25.37%
EPS (Diluted): -0.0762; YoY +4.63%; QoQ -52.10%
Weighted Avg Shares: 800,001,311 (diluted 800,000,000)
Liquidity & Leverage
Current Ratio: 0.962; Quick Ratio: 0.313; Cash Ratio: 0....
Financial Highlights
Revenue: 240,418,000; YoY -16.21%; QoQ -2.60%
Gross Profit: 58,969,000; YoY -20.15%; QoQ -29.76%
Gross Margin: 24.53%
Operating Income: -57,162,500; YoY +2.28%; QoQ -57.52%
Operating Margin: -23.78%
EBITDA: -44,528,500; EBITDARatio: -18.52%
Net Income: -60,998,500; YoY +4.55%; QoQ -52.20%
Net Margin: -25.37%
EPS (Diluted): -0.0762; YoY +4.63%; QoQ -52.10%
Weighted Avg Shares: 800,001,311 (diluted 800,000,000)
Liquidity & Leverage
Current Ratio: 0.962; Quick Ratio: 0.313; Cash Ratio: 0.0472
Net Debt: ~318.88 million; Total Debt: ~335.52 million; Cash: ~16.64 million
Total Liabilities: ~538.12 million; Total Assets: ~454.22 million; Equity: ~-89.79 million
Operating Cash Flow: 6.28 million; Free Cash Flow: 0.834 million
Change in Working Capital: 33.79 million; Inventory: 228.91 million; Receivables: 40.74 million
DSO: 15.25 days; DIO: 113.54 days; DPO: 58.01 days; Cash Conversion Cycle: ~70.78 days
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
240.42M |
-16.21% |
-2.60% |
| Gross Profit |
58.97M |
-20.15% |
-29.76% |
| Operating Income |
-57.16M |
2.28% |
-57.52% |
| Net Income |
-61.00M |
4.55% |
-52.20% |
| EPS |
-0.08 |
4.63% |
-52.10% |
Key Financial Ratios
operatingProfitMargin
-23.8%
Management Commentary
No QQ3 2024 earnings call transcript available in the provided data; management commentary not captured in this dataset.
Forward Guidance
No formal forward guidance was published in the QQ3 2024 materials. Given the current profitability strain, liquidity constraints, and leverage, investors should anticipate potential emphasis on capital efficiency, working-capital optimization, and selective capex reductions. In the broader toy retail sector, momentum in online-enabled channels and brand partnerships could influence the pace of recovery if the company can stabilize gross margins and reduce SG&A pressure. Indicators to monitor include: (1) any capital-structure actions or planned fundraising to address negative equity, (2) milestones in inventory and cost controls that could improve gross margins, (3) progress in channel mix optimization (offline vs online) and geo-exposure improvements, and (4) supplier and brand-partner dynamics that could enhance gross margins and reduce unit costs.