Shanghai Gench Education Group Limited reported QQ3 2024 revenue of CNY 217.21 million, down marginally year-over-year by 0.3% but down meaningfully on a quarterly basis by approximately 18.9% to the prior quarter. The quarterly gross margin was resilient at 48.1% (gross profit of CNY 104.53 million), with operating income of CNY 23.81 million and net income of CNY 21.88 million, translating to a net margin of ~10.1% and an EPS of CNY 0.0554. EBITDA stood at CNY 49.27 million, implying an EBITDA margin of roughly 22.7%.
A standout feature of the quarter was robust operating cash flow of CNY 275.61 million and free cash flow of CNY 239.72 million, driven by strong operating activity and one-off non-cash items totaling ~CNY 255.60 million that augmented reported cash flow. Capex was modest at around CNY 35.89 million, supporting a cash-generative profile despite a subdued top line. The balance sheet shows total assets of about CNY 3.98 billion, with cash and short-term investments of ~CNY 803.57 million against total debt of ~CNY 832.56 million, implying a net-debt position that warrants reconciliation against the reported figure (approx. ~CNY 29 million using a standard cash-minus-debt approach, versus the stated net debt of ~CNY 502.16 million in the data). Equity stood at ~CNY 2.317 billion.
Looking ahead, management commentary for QQ3 2024 was not included in the provided dataset, so explicit forward-looking guidance and quotes are unavailable. Investors should monitor enrollment dynamics, regulatory developments in China’s private education sector, and capacity expansion opportunities. The company has demonstrated substantial FCF generation and a strong liquidity runway, which provides optionality for deleveraging, strategic investments, or balance-sheet strengthening should operating conditions improve.