Revenue and profitability dynamics:
- Revenue: 79.00 million CNY in Q4 2024, up 177.3% YoY from 28.49 million CNY in Q4 2023; QoQ growth from Q3 2024 to Q4 2024 was flat at 0.0%.
- Gross Profit: 19.60 million CNY, yielding a gross margin of 24.8% (vs. 0.0%-plus margins in the prior-year period given the negative gross profit in Q4 2023). YoY gross profit increased by approximately 631.7%.
- Operating Income and EBITDA: Operating loss of 122.09 million CNY with an operating margin of -1.55%; EBITDA of -105.36 million CNY with an EBITDA margin of -1.33. The negative profitability remains, but the margin trajectory shows improvement vs prior-year compounding losses.
- Net Income and EPS: Net income of -182.62 million CNY and basic EPS of -0.19 CNY for Q4 2024. YoY net income improved about 22.8%; EPS improved ~24% YoY, reflecting operating leverage gains as revenue scales.
- Expenses and profitability drivers: R&D expenses 72.29 million CNY; SG&A (selling, general & administrative) 70.46 million CNY; total operating expenses 141.69 million CNY. Non-cash items reported at 176.24 million CNY contributed to the net loss despite revenue growth. Reported gross margin of 24.8% indicates gross profitability on product sales, but the company remains below break-even on an operating basis.
- Balance sheet and liquidity: Cash and cash equivalents around 612.23 million CNY. Total debt stands at 691.33 million CNY (short-term 279.73 million; long-term 411.59 million). Net debt of 79.10 million CNY and a cash-to-debt dynamic suggest reasonable liquidity support given the current loss profile. Current ratio 1.701x and quick ratio 1.400x imply solid near-term liquidity.
- Capital structure and equity: Total assets 1,279.04 million CNY; total liabilities 1,021.36 million CNY; total stockholders’ equity 278.20 million CNY. The company carries a relatively high leverage ratio (debt to equity ~2.48x) but maintains a modest net debt position aided by cash reserves. Inventory days are extended (approx. 229.5 days) while receivables days are ~50.6, implying inventory management and working capital are areas to monitor as the business scales.
Observations and implications for investors:
- The Q4 2024 results demonstrate a substantive top-line rebound with a pronounced gross margin, but profitability remains a near-term challenge due to operating costs and non-cash adjustments. The cash position supports ongoing R&D and capacity expansion, yet high leverage and extended inventory cycles warrant close monitoring of cash burn and working capital efficiency.
- The company’s quarterly path to profitability will hinge on sustaining revenue growth while achieving operating leverage and reducing reliance on non-cash adjustments, as well as managing inventories and receivables to stabilize cash flow.