Ruichang Intl (1334.HK) Q3 2024 Earnings Report

Ruichang Intl reported QQ3 2024 revenue of 109.65 million CNY, down 34.02% year-over-year and 2.49% quarter-over-quarter, with a gross margin of 31.69% and an EBITDA of 4.44 million (EBITDA margin ~4.05%). The company posted a net loss of 0.60 million CNY for the quarter, reflecting weak top-line growth and the impact of high operating costs relative to revenue. Despite a negative bottom line, Ruichang generated positive operating cash flow of 33.01 million CNY and free cash flow of 28.97 million CNY, underscoring operating efficiency and capital discipline even as the business remains cyclical. The balance sheet shows a solid liquidity position with cash and cash equivalents of 129.91 million CNY and a net debt position of -15.77 million CNY, supported by robust working capital management and ongoing financing activities that contributed to 37.12 million CNY in net cash from financing activities. The company operates in a capital-intensive segment tied to refinery and petrochemical equipment, including sulfur recovery units (SRU) and VOC incineration systems, which exposes it to commodity cycles, project delays, and government capex policies. Overall, the QQ3 2024 result reflects a start of a cautious recovery narrative in a cyclic Industrials backdrop, with meaningful profitability challenges offset by strong cash generation and balance sheet strength.