Xiangxing International (1732.HK) Q3 2024 Earnings Report

Xiangxing International Holding Limited reported Q3 2024 revenue of 56.15 million CNY, up 14.39% year over year, supported by a modest improvement in top-line activity but offset by pronounced cost and operating-expense pressure. The quarter delivered gross profit of 9.09 million CNY (gross margin 16.18%), yet operating income remained negative at -4.37 million CNY and net income was -6.14 million CNY, translating to an EPS of -0.0049. The EBITDA of 4.95 million CNY reflects the company’s ongoing earnings before interest, taxes, depreciation, and amortization despite a negative operating result, highlighting a dichotomy between core cash-generating activity and current operating-cost dynamics. YoY revenue growth occurred against a backdrop of deteriorating margins at the operating line, with QoQ revenue down 6.7% and margins compressing further on a sequential basis.

Balance-sheet and liquidity metrics underscore a robust liquidity profile: total current assets of 195.37 million CNY and cash and cash equivalents of 31.25 million CNY yield a current ratio of 9.28 and a cash ratio of 1.48, while net debt stands at a substantial negative position (-30.20 million CNY), reflecting a strong cash cushion relative to a relatively modest debt burden. This liquidity runway provides optionality to weather near-term profitability softness and to fund working-capital needs or selective growth initiatives. Management commentary on QQ3 2024 emphasizes stable port/logistics activity within China and a focus on efficiency, cost control, and working-capital optimization to drive mid-term profitability.