XXF Group Holdings Ltd (2473.HK) Q3 2024 Earnings Report

XXF Group Holdings Ltd reported QQ3 2024 revenue of 330.67 million CNY, up 18.99% year-over-year and 31.21% quarter-over-quarter, with a gross margin of 34.64% and an EBITDA of 87.69 million CNY. Operating income stood at 52.25 million CNY and net income at 10.14 million CNY, delivering a net margin of 3.07% and an EPS of 0.0066 CNY (diluted 0.0063). The revenue trajectory demonstrates demand growth in XXF’s core auto finance and leasing services, but profitability growth is constrained by elevated operating expenses and a sizable “other income/expense” drag, which contributed to a net income decline of 57.5% versus the prior year period.

From a cash-flow perspective, XXF generated negative operating cash flow of 97.86 million CNY and negative free cash flow of 95.00 million CNY in the quarter, while financing activities contributed a net 139.17 million CNY. The company’s liquidity remains supported by a cash balance of 340.60 million CNY, yet the working capital swing (-163.26 million CNY) and high debt burden raise concerns about near-term financial flexibility. Total debt equals 2.29 billion CNY, with net debt of 1.95 billion CNY, yielding leverage metrics that remain elevated (debt ratio 0.693; debt-to-equity 2.79; net debt to EBITDA ≈ 22.3x).

Looking ahead, management’s guidance is not disclosed in the QQ3 release; investors should monitor the cadence of cash flow improvements, debt deleveraging progress, and any supplemental guidance in subsequent filings. Given the current earnings quality and leverage profile, the stock presents a neutral-to-cautious investment stance pending signs of sustainable FCF generation and debt reduction.