Technovator International (1206.HK) Q3 2024 Earnings Report

Technovator International Limited reported QQ3 2024 revenue of 658.33 million CNY, up 3.18% year over year, and a strong sequential rise of approximately 157% from Q2 2024 to Q3 2024. Despite the top-line gain, the company delivered a negative EBITDA of 83.37 million CNY and a net loss of 98.18 million CNY for the quarter, translating to an operating margin of -16.02% and a net margin of -14.91%. The gross margin was 6.77% (44.55 million CNY gross profit on 658.33 million CNY revenue), indicating pricing, mix, or cost pressures persist in the quarter. The balance sheet shows a solid cash cushion of 344.69 million CNY and a low net debt position (net debt of 3.82 million CNY after cash). However, working capital indicators deteriorated with a Days Sales Outstanding (DSO) of ~356 days and a cash conversion cycle (CCC) of ~237 days, underscoring substantial receivables and working capital intensity relative to quarterly revenue. The company continues to hold three segments—Smart Transportation, Smart Buildings and Complex, and Smart Energy—with sizable intangible assets (576.2 million CNY) and a broad asset base (total assets of 5.57 billion CNY) that underpin its scale in China’s energy management and infrastructure market. Management commentary is not available in the provided dataset, limiting color on execution catalysts or forward targets. Investors should monitor margin realization, working capital optimization, and any backlog-driven signals from project wins as potential catalysts for improvement.