Linklogis Inc (9959.HK) Q3 2024 Earnings Report

- Linklogis posted solid top-line growth for QQ3 2024, with revenue of 309.0 million CNY, up 29.65% year-over-year and 49.61% quarter-over-quarter. The company also delivered a robust gross margin of 68.7% and gross profit of 212.2 million CNY, indicating favorable product mix and pricing at the gross level despite a heavy operating cost base. - However, the quarter remains showing a meaningful operating loss of 241.6 million CNY and an EBITDA loss of 153.4 million CNY, translating into a net loss of 297.3 million CNY and a negative net income margin of 96.2%. The discrepancy between revenue growth and bottom-line profitability underscores a heavy investment phase, with substantial spending on R&D and SG&A bundled within total operating expenses of approximately 453.8 million CNY. - On the balance sheet, Linklogis exhibits a strong liquidity profile and a net cash position. Cash and cash equivalents plus short-term investments stood at about 5.27 billion CNY, while total debt was only ~116 million CNY, yielding a net debt position of roughly -4.78 billion CNY. The balance sheet also shows an unusually large accumulated Other Comprehensive Income/Loss (OCI) figure, which can distort reported equity and merits closer scrutiny for reversals or one-time accounting effects. - The near-term investment thesis hinges on monetization of its platform solutions (Anchor Cloud, FI Cloud, Crossborder Cloud) and ongoing scale-up in supply-chain financing services in China. Profitability remains a work-in-progress as the company pursues growth initiatives, and margin expansion will require either higher operating leverage or better cost control as revenue accelerates.