Executive Summary
Newlink Technology reported Q4 2024 revenue of 77.96 million CNY, up 22.25% year over year, reflecting ongoing demand for its big data analytics and AI-enabled software solutions in China. However, the company posted a negative operating margin of 33.87% and a net loss of 18.62 million CNY for the quarter, underscoring persistent profitability challenges despite top-line growth. On the balance sheet, Newlink entered the period with ample liquidity and a net cash position, supporting a credible investment in research and development and strategic initiatives even as it invests to scale its product offerings. While quarterly profitability remains negative, the firm’s robust cash flow from operations and strong liquidity provide a runway to pursue AI- and healthcare-focused growth opportunities, contingent on improving operating leverage and execution discipline. Management commentary is not publicly transcribed in the provided data; as such, quotes from the earnings call are not available in this analysis.
Key Performance Indicators
Key Insights
Revenue: 77.96m CNY, YoY +22.25%; Gross Profit: 7.07m CNY, Gross Margin 9.07%; Operating Income: -26.40m CNY, Operating Margin -33.87%; Net Income: -18.62m CNY, Net Margin -23.88%; EPS: -0.0197 CNY; EBITDA: -25.98m CNY; CFO: 29.15m CNY; Free Cash Flow: 28.74m CNY; Net Cash Position: -315.70m CNY (net debt), Cash & Equivalents: 348.24m CNY; Total Assets: 882.82m CNY; Total Liabilities: 143.38m CNY; Shareholders’ Equity: 739.27m CNY; Current Ratio: 4.99; Quick Ratio: 4.98; FCF Margin (approx...
Financial Highlights
Revenue: 77.96m CNY, YoY +22.25%; Gross Profit: 7.07m CNY, Gross Margin 9.07%; Operating Income: -26.40m CNY, Operating Margin -33.87%; Net Income: -18.62m CNY, Net Margin -23.88%; EPS: -0.0197 CNY; EBITDA: -25.98m CNY; CFO: 29.15m CNY; Free Cash Flow: 28.74m CNY; Net Cash Position: -315.70m CNY (net debt), Cash & Equivalents: 348.24m CNY; Total Assets: 882.82m CNY; Total Liabilities: 143.38m CNY; Shareholders’ Equity: 739.27m CNY; Current Ratio: 4.99; Quick Ratio: 4.98; FCF Margin (approx): 36.9% of revenue; P/S: 4.72x; P/B: 0.50x; Net Debt: negative (net cash) ≈ -315.70m CNY; DSO: 327.28 days; Inventory Turnover: 38.71x; Asset Turnover: 0.088x; ROE/ROA: negative
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
77.96M |
22.25% |
0.00% |
| Gross Profit |
7.07M |
17.60% |
0.00% |
| Operating Income |
-26.40M |
17.02% |
0.00% |
| Net Income |
-18.62M |
12.18% |
0.00% |
| EPS |
-0.02 |
27.04% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-33.9%
Management Commentary
No earnings call transcript is provided in the data; therefore, executive commentary quotes and thematic highlights from management cannot be reproduced. Management sentiment and tone for QQ4 2024 would typically be captured here if the transcript were available.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. Given the balance sheet strength and continued high R&D intensity, the near-term focus appears to be on advancing AI/big data offerings, healthcare IT solutions, and RPA capabilities to improve operating leverage. Investors should monitor: (1) quarterly progression toward break-even operating profitability or improving EBITDA; (2) win-rate and revenue mix shifts toward higher-margin segments; (3) capital allocation effectiveness in R&D and go-to-market investments; (4) execution of strategic initiatives in Financial Institutions and Medical Institutions segments; (5) potential macro headwinds or regulatory changes affecting Chinese software beneficiaries.