EPS of $-0.14 decreased by 97.6% from previous year
Gross margin of 100.0%
Net income of -69.40M
"N/A" - N/A
Bank of Jiujiang Co Ltd (6190.HK) QQ4 2024 Results: Revenue Momentum Amid Profitability Pressures in a Large Chinese Regional Bank
Executive Summary
Bank of Jiujiang’s QQ4 2024 results show a pronounced top-line expansion on a year-over-year basis, but profitability remained under pressure. Revenue for the quarter reached 878.96 million CNY, up 334.0% vs. a weak prior-year base, and gross profit matched revenue giving a reported gross margin of 100% in the data provided. However, the quarter posted an operating loss of 2.62 billion CNY and a net loss of 69.40 million CNY, producing an EPS of -0.83. The discrepancy between revenue and profitability is driven by outsized operating expenses (selling, general and administrative) totaling 3.498 billion CNY and notable reliance on non-operating income of 2.401 billion CNY to offset operating losses. Management commentary (where available) is not included in the provided transcript data, limiting visibility into the underlying drivers (income mix, cost containment, or risk controls). Balance sheet strength is evident in a very large asset base (total assets of 516.46 billion CNY) and solid liquidity (cash and equivalents of ~13.25 billion CNY), but the bank’s market valuation signals meaningful concern about earnings durability with a price-to-book ratio of approximately 0.058x. Investors should monitor whether management takes decisive steps to curb SG&A, improve net interest income, and stabilize asset quality to sustain a path to profitability.
Key Performance Indicators
Revenue
878.96M
QoQ: -38.57% | YoY:334.02%
Gross Profit
878.96M
1.00% margin
QoQ: -38.57% | YoY:334.02%
Operating Income
-2.62B
QoQ: -8 053.03% | YoY:-163.80%
Net Income
-69.40M
QoQ: -126.69% | YoY:94.20%
EPS
-0.83
QoQ: -276.60% | YoY:-97.62%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 878.96 million CNY; YoY +334.02%, QoQ -38.57%\n- Gross Profit: 878.96 million CNY; Margin implied 100% in the provided data (cost of revenue not disclosed)\n- Operating Income: -2.619 billion CNY; Margin -2.98%\n- Net Income: -69.40 million CNY; Net Margin -0.08%\n- EPS: -0.83 (basic); -0.14 (diluted)\n- ROE: -0.17%; ROA: -0.01% (based on ratios provided)\n- Total Assets: 516.46 billion CNY; Total Liabilities: 473.93 billion CNY; Total Equity: 41.75 billion CNY\n- Cash & Equivalents: 13.25 billion CNY; P/B: ~0.058x; P/S: ~2.73x
Financial Highlights
- Revenue: 878.96 million CNY; YoY +334.02%, QoQ -38.57%\n- Gross Profit: 878.96 million CNY; Margin implied 100% in the provided data (cost of revenue not disclosed)\n- Operating Income: -2.619 billion CNY; Margin -2.98%\n- Net Income: -69.40 million CNY; Net Margin -0.08%\n- EPS: -0.83 (basic); -0.14 (diluted)\n- ROE: -0.17%; ROA: -0.01% (based on ratios provided)\n- Total Assets: 516.46 billion CNY; Total Liabilities: 473.93 billion CNY; Total Equity: 41.75 billion CNY\n- Cash & Equivalents: 13.25 billion CNY; P/B: ~0.058x; P/S: ~2.73x
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
878.96M
334.02%
-38.57%
Gross Profit
878.96M
334.02%
-38.57%
Operating Income
-2.62B
-163.80%
-8 053.03%
Net Income
-69.40M
94.20%
-126.69%
EPS
-0.83
-97.62%
-276.60%
Key Financial Ratios
grossProfitMargin
100%
operatingProfitMargin
-298%
netProfitMargin
-7.9%
returnOnAssets
-0.01%
returnOnEquity
-0.17%
priceToBookRatio
0.06
priceEarningsRatio
-8.66
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript was provided in the data. Consequently, there are no management quotes or themes to cite. This limits the ability to corroborate the Q4 quantitative results with qualitative commentary on strategy, asset quality, or liquidity plans. Investors should treat any forward-looking or strategic conclusions as contingent on subsequent filings or call transcripts.
N/A
— N/A
N/A
— N/A
Forward Guidance
No formal forward guidance is included in the supplied data. In the absence of management commentary, the outlook must be inferred from the quarterly metrics and sector dynamics. Key near-term considerations include (i) whether operating expense control improves and SG&A can be brought in line with revenue trajectory, (ii) whether net interest income and fee-based income stabilize to dampen earnings volatility, and (iii) the bank’s ability to manage credit risk amid a still-challenging macro backdrop. Investors should watch for updated guidance in future HKEx disclosures or earnings calls, particularly around cost-rationalization, deposit growth, and any strategic initiatives (digital banking, SME financing, green finance) that could lift profitability.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
6190.HK Focus
1.00%
-2.98%
-0.17%
-8.66%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Neutral to cautiously constructive depending on the trajectory of profitability and cost discipline. The stock trades at a historically low price-to-book (~0.058x), reflecting significant concerns about earnings durability despite a large balance sheet. The QQ4 2024 revenue uptick contrasts with a meaningful operating and net loss, underscoring structural challenges in cost control and margin recovery. An improving earnings path would require: (1) stabilization or expansion of net interest income and fee-based revenues, (2) meaningful SG&A containment, and (3) prudent credit risk management to avoid fresh asset quality impairment. Absent clearer management guidance or a tangible plan to drive profitability, the investment case remains contingent on future disclosures and quarterly progress. Investors should monitor cost optimization initiatives, digital banking adoption, deposit growth, and any announced strategic initiatives (e.g., digital platforms, SME financing programs) for signs of an inflection point.
Key Investment Factors
Growth Potential
Potential uplift from digital banking adoption, SME and regional corporate lending growth, and fee-based services. A sustained revenue rebound could support profitability if cost controls keep SG&A in check and credit risk remains manageable.
Profitability Risk
Key risks include persistent low interest margins in the Chinese banking sector, elevated operating expenses relative to revenue, potential asset quality deterioration in a slowing economy, regulatory changes, and execution risk in any cost-cutting or strategic initiatives.
Financial Position
Healthy liquidity with cash and equivalents of ~13.25B CNY and a broad asset base (~516.46B CNY) supports liquidity and resilience. However, liabilities are substantial (~473.93B CNY) and ROE is negative, signaling earnings instability and returns impairment in the near term.
SWOT Analysis
Strengths
Very large asset base enabling scale in deposits and balance sheet operations
Liquidity cushion supported by cash and equivalents (~13.25B CNY)
Diversified banking services across corporate, retail, and financial markets (as per profile)
Weaknesses
Material quarterly net loss (QQ4 2024: -69.40M CNY)
Very low or negative ROE (-0.17%) and ROA (-0.01%) indicating earnings efficiency challenges
Significant operating expenses (SG&A) relative to revenue (SG&A ~3.50B CNY for Q4) and reliance on non-operating income to offset operating losses
Unclear cost of revenue and unusual gross margin data (gross margin reported as 100% with missing cost data) suggesting potential data quality issues
Opportunities
Expansion of digital channels to reduce marginal costs and improve customer acquisition
Scope to grow green financing and SME lending in the Jiangxi region
Cross-sell of wealth management and payment services leveraging branch/sub-branch network (historical note mentions 262 sub-branches)
Strategic cost optimization and efficiency improvements could unlock profitability if revenue base stabilizes
Threats
Macroeconomic slowdown in China impacting loan demand and asset quality
Intense competition from larger state-owned and joint-stock banks affecting net interest margins
Regulatory risk and potential capital adequacy scrutiny in a crowded regional banking space
Credit risk in SME and regional corporate portfolios in a slower growth environment