Huitongda Network Co Ltd (9878.HK) Q3 2024 Earnings Report

Huitongda Network delivered a Q3 FY2024 performance marked by a material year-over-year revenue decline and thin profitability, counterbalanced by a robust liquidity position and early-stage margin stabilization. Reported revenue for the quarter ended 2024-09-30 was 13.60 billion CNY, down 30% from the year-ago period, while gross profit was 583.3 million CNY and the gross margin expanded to approximately 4.29% from 3.70% in the prior-year quarter. Despite the top-line softness, the company generated positive EBITDA (149.1 million CNY) and net income of 72.3 million CNY, translating into a diluted EPS of 0.13 CNY. Operating margin stood at about 1.07%, reflecting ongoing investment in platform capabilities alongside a lean cost structure. The company also demonstrated strong liquidity with cash and cash equivalents of roughly 2.78 billion CNY and a net cash position despite modest financing activity; total debt stood at about 1.40 billion CNY, yielding a negative net debt of about 1.38 billion CNY and a cash-to-debt complement that supports near-term flexibility.

Key takeaway for investors is the duality of the quarter: (1) top-line pressure amid a challenging macro and competitive environment, and (2) continued cash generation and a balance sheet that provides optionality for strategic bets, including the expansion of its SaaS/marine merchant-solutions ecosystem. The lack of formal forward guidance in the available materials means investors should monitor quarterly cadence for signs of revenue stabilization, margin progression, and any explicit management targets that may accompany upcoming disclosures.