United Strength Power (2337.HK) Q3 2024 Earnings Report

United Strength Power Holdings Limited reported QQ3 2024 revenue of 1,942.46 million CNY, down 6.68% year-over-year and up 1.19% quarter-over-quarter. The quarter produced a modest gross profit of 113.91 million (gross margin 5.86%), and operating income of 33.80 million (operating margin 1.74%), with net income of 20.41 million (net margin 1.05%). EPS stood at 0.0545 CNY. Despite a positive bottom-line read, the company generated negative operating cash flow (−15.25 million) and negative free cash flow (−19.28 million), driven by working-capital dynamics and persistent operating-expense levels. The balance sheet shows a leveraged position, with total debt of 757.91 million and net debt of 599.28 million, against cash and cash equivalents of 158.63 million and equity of 510.67 million, yielding a debt-to-assets ratio of 0.40 and a debt-to-equity ratio of 1.48. Liquidity metrics remain modest (current ratio 1.21, quick ratio 0.28, cash ratio 0.14), signalling limited near-term financial flexibility absent further working-capital optimization or refinancing actions. \n\nManagement commentary is not available in the provided transcript. The results suggest margin pressure within a commodity-intensive refining/trading conglomerate and cash-flow headwinds from working-capital needs. Investors should monitor capex plans to expand the gas-refueling network and LNG/LPG trading activities, the potential for debt refinancing or restructuring, and any efficiency initiatives that could lift cash generation and reduce leverage. The company operates in Northeast China and remains exposed to commodity price cycles, competitive dynamics in refueling and LNG/LPG markets, and regulatory developments affecting energy distribution and retail margins.