Shenghui Cleanness Grp (2521.HK) Q3 2024 Earnings Report

Shenghui Cleanness Grp Hldg reported QQ3 2024 revenue of 173.89 million CNY, up 5.1% year over year, but down 47.1% sequentially quarter-over-quarter. Gross profit reached 34.33 million CNY, yielding a gross margin of 19.74%. The company reported an operating loss of 5.73 million CNY, with EBITDA of 6.34 million CNY and an EBITDARatio of 3.65%. Net income was 19.54 million CNY, delivering a net margin of 11.23%, supported by a sizable positive contribution from other income and expenses ( totaling 29.71 million CNY ). A pre-tax line item, income before tax, stood at 23.98 million CNY, while income tax expense was 4.45 million CNY. On the cash-flow side, operating cash flow was modest at 1.31 million CNY, but free cash flow remained negative at -5.73 million CNY due to working-capital outflows (notably a -34.74 million CNY swing in receivables). Financing activities provided 32.24 million CNY, yet overall cash balance declined, producing a net change in cash of -99.24 million CNY for the period. The balance sheet shows robust liquidity with 91.11 million CNY in cash and equivalents, total assets of 570.32 million CNY, and a net cash position of -31.36 million CNY (net debt). The firm maintains a conservative capital structure (short-term debt of 45.47 million CNY, long-term debt of 14.28 million CNY; debt-to-equity around 0.16) and a current ratio of 2.31x. While the QoQ revenue gap signals seasonality and potential near-term operating-pressure, the company’s profitability is supported by non-operating income and a positive net income delta, suggesting underlying structural cash generation that could be leveraged as volumes recover. Investors should monitor working-capital dynamics, margin progression, and any changes to the mix of services that could lift operating profitability going forward.