China Risun Group Long: QQ3 2024 (quarter ending 2024-09-30) delivered a revenue decline with continued margin pressure and a negative quarterly Net Income, highlighting the cyclicality and commodity-dependence of Risun’s coke and chemical business. Revenue fell 11.5% year-over-year and 11.4% quarter-over-quarter to 11.17 billion CNY, while gross profit was 817.46 million CNY for a gross margin of 7.32%. Despite EBITDA of 840.57 million CNY, the company reported a net loss of 45.86 million CNY, reflecting high depreciation, other expenses, and working-capital dynamics that weighed on reported profitability.
From a liquidity and balance-sheet perspective, Risun remains heavily levered with total debt of 30.38 billion CNY and net debt of 28.29 billion CNY. The current ratio stands at 0.62, underscoring near-term liquidity pressures, even as operating cash flow was positive at 237.21 million CNY. Free cash flow generated in the period was 845.29 million CNY, but a sizable negative net change in cash (−3.64 billion CNY) reflects significant working-capital movements and other non-operating outflows. The firm’s capital allocation appears anchored by a continued emphasis on asset base maintenance and potential deleveraging, though no formal quarterly guidance was disclosed.
Looking ahead, the near-term investment thesis is cautious: the business remains exposed to cyclical demand in steel and chemicals, commodity-price volatility, and high leverage. A meaningful improvement will depend on deleveraging progress, stabilization of input costs, and a sustained recovery in steel-driven downstream demand. Investors should monitor debt maturity profiles, working-capital efficiency, and any management commentary on cost-reduction initiatives or asset-light strategies at the operating level.