Bairong Inc (6608.HK) Q3 2024 Earnings Report

Executive Summary

Bairong Inc delivered a solid QQ3 2024 with revenue of CNY 803.96 million, up 11.83% year over year and 21.69% quarter over quarter, reflecting continued demand for its smart analytics, precision marketing and insurance distribution services in the Chinese market. Gross profit reached CNY 587.28 million, delivering a gross margin of 73.05%, supported by a favorable product mix in software infrastructure and analytics. Operating income was CNY 64.20 million (operating margin roughly 7.99%), while net income stood at CNY 63.11 million (net margin about 7.85%). EBITDA was CNY 51.74 million, with EBITDA margin around 6.44%. Earnings per share (basic) were CNY 0.14 and diluted EPS was CNY 0.13. The company generated strong operating cash flow of CNY 214.73 million in the quarter and free cash flow of CNY 232.23 million, underscoring a cash-rich balance sheet. As of QQ3 2024, Bairong reported cash and cash equivalents of CNY 739.23 million and short-term investments of CNY 2.2436 billion, with total cash and short-term investments of approximately CNY 3.463 billion. Total assets were CNY 5.695 billion, while total liabilities stood at CNY 1.1686 billion and total stockholders’ equity at CNY 4.517 billion, yielding a healthy current ratio of 4.58 and a net debt position of about CNY -612.3 million. The balance sheet structure supports ongoing investment in product development and geographic expansion while sustaining accelerator-like cash generation. Management commentary for QQ3 2024 was not accompanied by an available transcript in the provided data, limiting quotes from earnings call discourse. Nevertheless, the results imply a constructive trajectory for Bairong’s software infrastructure platform as it scales analytics, microloan and insurance distribution services to financial institutions in China. Investors should watch regulatory developments in China’s fintech/insurance distribution space, the pace of enterprise IT spending, and the company’s ability to translate revenue growth into margin expansion over time.

Key Performance Indicators

Revenue

803.96M

QoQ: 21.69% | YoY:11.83%

Gross Profit

587.28M

73.05% margin

QoQ: 22.33% | YoY:11.62%

Operating Income

64.20M

QoQ: -18.13% | YoY:-10.19%

Net Income

63.11M

QoQ: -9.81% | YoY:-6.64%

EPS

0.14

QoQ: -6.67% | YoY:7.69%

Revenue Trend

Margin Analysis

Key Insights

Revenue: 803,959,500 (CNY). YoY growth: 11.83%; QoQ growth: 21.69%.
Gross Profit: 587,278,500; Gross Margin: 0.7305 (73.05%). YoY: 11.62%; QoQ: 22.33%.
Operating Income: 64,201,000; Operating Margin: 0.0799 (7.99%). YoY: -10.19%; QoQ: -18.13%.
Net Income: 63,113,000; Net Margin: 0.0785 (7.85%). YoY: -6.64%; QoQ: -9.81%.
EBITDA: 51,744,500; EBITDA Margin: 0.0644 (6.44%).

Financial Highlights

Revenue and profitability trends:
- Revenue: 803,959,500 (CNY). YoY growth: 11.83%; QoQ growth: 21.69%.
- Gross Profit: 587,278,500; Gross Margin: 0.7305 (73.05%). YoY: 11.62%; QoQ: 22.33%.
- Operating Income: 64,201,000; Operating Margin: 0.0799 (7.99%). YoY: -10.19%; QoQ: -18.13%.
- Net Income: 63,113,000; Net Margin: 0.0785 (7.85%). YoY: -6.64%; QoQ: -9.81%.
- EBITDA: 51,744,500; EBITDA Margin: 0.0644 (6.44%).
- EPS (basic): 0.14; EPS (diluted): 0.13. YoY EPS: 7.69%; QoQ: -6.67%.

Cost structure and efficiency:
- Research and development expenses: 141,704,500 (approx. 17.6% of revenue).
- Selling, general and administrative expenses: 410,306,000; total operating expenses: 523,077,501; cost of revenue: 216,681,000.
- Interest expense: not indicated; Depreciation and amortization: 8,537,500.

Cash flow and liquidity:
- Net cash provided by operating activities: 214,727,500.
- Free cash flow: 232,234,000.
- Cash at period end: cash and equivalents 739,227,000; short-term investments 2,243,569,000; total cash and short-term investments 3,463,364,000.
- Net debt: -612,332,000 (net cash position).
- Capital expenditures: 17,506,500; Dividends paid: not indicated; Other financing activities: -142,457,500; Net financing impact: -146,151,000.

Balance sheet health and leverage:
- Total assets: 5,695,292,000; Total liabilities: 1,168,642,000; Total stockholders’ equity: 4,517,079,000.
- Current ratio: 4.58; Quick ratio: 4.58; Cash ratio: 0.697.
- Total debt: 126,895,000; Debt-to-equity: 0.0281; Net debt to EBITDA proxies show a strong liquidity profile for ongoing investment.

Valuation context:
- Price-to-book: 0.963; Price-to-sales: 5.41; Price-to-earnings: 17.23.
- Enterprise value multiple: 72.23; Price-to-free cash flows: 18.73; Price-to-operating cash flows: 20.26. These multiples reflect a cash-generative, growth-oriented software play with growth potential in China’s fintech/analytics landscape.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	803.96M	11.83%	21.69%
Gross Profit	587.28M	11.62%	22.33%
Operating Income	64.20M	-10.19%	-18.13%
Net Income	63.11M	-6.64%	-9.81%
EPS	0.14	7.69%	-6.67%

Key Financial Ratios

currentRatio

4.58

grossProfitMargin

73%

operatingProfitMargin

7.99%

netProfitMargin

7.85%

returnOnAssets

1.11%

returnOnEquity

1.4%

debtEquityRatio

0.03

operatingCashFlowPerShare

$0.46

freeCashFlowPerShare

$0.5

priceToBookRatio

0.96

priceEarningsRatio

17.23

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
6608.HK Focus	73.05%	7.99%	1.40%	17.23%
300383.SZ	16.30%	5.71%	0.74%	50.56%
4435.T	76.40%	8.06%	5.80%	38.05%
6699.HK	62.70%	3.94%	0.94%	94.38%
9959.HK	68.70%	-78.20%	-3.79%	-2.82%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q2 2025	1,611.80	0.42	+100.5%	View
Q1 2025	805.90	0.21	+22.0%	View
Q4 2024	803.96	0.13	+11.8%	View
Q3 2024	803.96	0.13	+11.8%	View

Bairong Inc (6608.HK) Q3 2024 Earnings Report

Earnings Highlights

Bairong Inc (6608.HK) QQ3 2024 Earnings Analysis: Strong Gross Margin, Cash Generation and China-focused Software Infrastructure Growth

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

Bairong Inc (6608.HK) Q3 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

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