Executive Summary
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.
Key Performance Indicators
QoQ: -2.49% | YoY:-34.02%
QoQ: -9.37% | YoY:-41.33%
QoQ: -48.34% | YoY:-79.98%
QoQ: -110.38% | YoY:-102.93%
QoQ: -107.79% | YoY:-102.21%
Key Insights
Revenue: 109,647,000 CNY (-YoY -34.02%, QoQ -2.49%); Gross Profit: 34,749,000 CNY (gross margin 31.69%, YoY -41.33%, QoQ -9.37%); EBITDA: 4,437,000 CNY (margin 4.05%); Operating Income: 6,278,000 CNY (margin 5.73%); Net Income: -598,000 CNY (net margin -0.55%, YoY -102.93%, QoQ -110.38%); EPS: -0.0012 CNY (YoY -102.21%, QoQ -107.79%); Operating Cash Flow: 33,009,500 CNY; Free Cash Flow: 28,969,500 CNY; Capex: -4,038,999 CNY; Cash and Cash Equivalents: 129,910,000 CNY; Total Assets: 726,950,000 C...
Financial Highlights
Revenue: 109,647,000 CNY (-YoY -34.02%, QoQ -2.49%); Gross Profit: 34,749,000 CNY (gross margin 31.69%, YoY -41.33%, QoQ -9.37%); EBITDA: 4,437,000 CNY (margin 4.05%); Operating Income: 6,278,000 CNY (margin 5.73%); Net Income: -598,000 CNY (net margin -0.55%, YoY -102.93%, QoQ -110.38%); EPS: -0.0012 CNY (YoY -102.21%, QoQ -107.79%); Operating Cash Flow: 33,009,500 CNY; Free Cash Flow: 28,969,500 CNY; Capex: -4,038,999 CNY; Cash and Cash Equivalents: 129,910,000 CNY; Total Assets: 726,950,000 CNY; Total Liabilities: 338,604,000 CNY; Total Equity: 388,046,000 CNY; Net Debt: -15,773,000 CNY; DSO: 241.14 days; DIO: 62.53 days; DPO: 185.57 days; Cash Conversion Cycle: 118.11 days; P/E: -188.47x; P/B: 1.16x; EV/EBITDA: 98.05x; Revenue mix and product lines center on SRU and VOC incineration equipment with services including installation and engineering.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
109.65M |
-34.02% |
-2.49% |
| Gross Profit |
34.75M |
-41.33% |
-9.37% |
| Operating Income |
6.28M |
-79.98% |
-48.34% |
| Net Income |
-598.00K |
-102.93% |
-110.38% |
| EPS |
0.00 |
-102.21% |
-107.79% |
Key Financial Ratios
operatingProfitMargin
5.73%
priceEarningsRatio
-188.47
Management Commentary
No QQ3 2024 earnings call transcript was provided in the data set; as a result, transcript-based highlights or quotes are unavailable for this report.
Forward Guidance
No formal forward guidance was issued for QQ3 2024. Given the cyclicality of the Industrials sector and Ruichang Intl’s exposure to refinery and petrochemical capex in China, investors should monitor: (1) Chinese refinery upgrade cycles and VOC/SRU environmental compliance projects, (2) government stimulus or policy support impacting industrial equipment demand, (3) commodity price and energy capex trends affecting project backlogs, and (4) working capital dynamics given the elevated receivables and long cash conversion cycle. Near-term catalysts could include project wins in SRU/VOC projects and accelerations in petrochemical capacity expansion. Long-term, growth will hinge on sustained refinery modernization and environmental retrofit spending in China.