Huitongda Network Co Ltd (9878.HK) Q4 2024 Earnings Report

Huitongda Network reported QQ4 2024 revenue of 13.60 billion CNY, down approximately 30% year-over-year, with a gross profit of 583.3 million CNY and a gross margin of 4.29%. Net income was 72.3 million CNY, yielding a net margin of about 0.53%, and earnings per share of 0.13 CNY. EBITDA stood at 149.1 million CNY, with an operating margin of 1.07%. The results reflect ongoing yield normalization after a prior period of higher topline, along with continued investment in the company’s service/SaaS platforms (HTD Mall and Super Boss). While top-line growth remained subdued, the company delivered positive operating cash flow (13.15 million CNY) and ended the period with a solid net cash position, evidenced by a net debt of -1.385 billion CNY and total cash + short-term investments of about 7.07 billion CNY. The balance sheet remains robust, with total assets of 28.49 billion CNY and total equity of 7.79 billion CNY. The liquidity profile is supported by a strong cash position and limited leverage (debt to equity ~0.18, debt ratio ~4.9%). Efficiency metrics show a relatively quick collection cycle (days sales outstanding ~24.9) and a moderate inventory turn (6.40x), contributing to a cash conversion cycle of negative 62 days, helped by favorable payables terms. Management commentary is not included in the provided transcript data. Consequently, this assessment relies on reported figures and typical strategic priorities (accelerating growth of the SaaS-based services, expanding the merchant base, and optimizing cost structures). Absent explicit quantitative guidance, investors should monitor progress in merchant acquisition, annual recurring revenue growth from the Super Boss platform, and gross margin trajectory as the company monetizes its service capabilities.