Fineland Living Services (9978.HK) Q3 2024 Earnings Report

Fineland Living Services Group Limited reported QQ3 2024 revenue of 91.51 million CNY with a gross profit of 10.64 million CNY, translating to a gross margin of 11.6%. The quarter showed a pronounced profitability deterioration, delivering an operating loss of 32.06 million CNY and a net loss of 31.13 million CNY, with EPS of -0.0778. EBITDA was negative at -29.45 million CNY, corresponding to an EBITDAR of -0.322. These profit dynamics follow a YoY decline in revenue (-12.5% YoY) and a substantial margin compression, with QoQ performance also materially weaker (-1.65% revenue QoQ but a sharp drop in margins). The company generated positive operating cash flow of 17.26 million CNY and free cash flow of 16.62 million CNY in the quarter, supported by a robust cash position (cash and cash equivalents of 64.77 million CNY and cash-like investments of 65.78 million CNY). However, total liabilities (281.02 million CNY) eclipsed current assets (245.18 million CNY) at quarter-end, resulting in a current ratio near 0.90x, and the balance sheet still hinges on significant non-cash components across working capital and other non-cash items (52.09 million CNY). Net debt remains negative, reflecting a net cash position of approximately 63.77 million CNY, underscoring liquidity strength despite near-term profitability pressure. Management commentary (not provided in the data) is typically focused on cost control, monetization of value-added services, and selective expansion in core service lines; absence of explicit forward-looking targets in the supplied material necessitates ongoing monitoring of operating leverage improvements and working capital optimization.