Qing Song Health CoLtd (6931.TWO) Q3 2024 Earnings Report

Qing Song Health CoLtd delivered a solid top-line performance in QQ3 2024, with revenue of 254.603 million TWD, up 10.5% year-over-year and 7.99% sequentially. The gross margin stood at 13.20% (33.616 million TWD gross profit), with operating income of 12.642 million and an operating margin of 4.97%, reflecting continued efficiency gains offset by higher operating costs and structured capex. Net income declined to 7.653 million (net margin 3.01%), down 53.3% year-over-year, underscoring profitability pressures despite improving quarterly revenue. EPS was 0.13 TWD, flat across the reported share base, signaling modest earnings dispersion within the quarter.

From a balance sheet and cash flow perspective, Qing Song maintains a liquid balance sheet with cash and cash equivalents of 223.149 million and total liquidity that includes short-term investments of 148.151 million, yielding total cash and equivalents around 371.3 million if combined. However, total debt sits at 1.111 billion (long-term debt 1.000 billion and short-term debt 111.132 million), producing a net debt position of approximately 888.376 million and a debt-to-equity ratio of about 1.73. The company reported negative net operating cash flow of 10.742 million, driven by working capital outflows and non-cash adjustments, resulting in negative free cash flow of 32.065 million for the period. EBITDA was 49.823 million with an EBITDA margin of approximately 19.6%, indicating cash-based profitability even as cash flow remains pressured. Look-for in coming quarters: continued occupancy trends, wage inflation pressures, and the ability to deleverage while funding capex for capacity expansion.

Management commentary for QQ3 2024 is not available in the provided transcript, limiting the ability to cite specific quotes or explicit forward guidance. Given the sector backdrop—Taiwan’s aging population and rising demand for long-term care—Qing Song is positioned to benefit from secular demand, albeit with near-term profitability and liquidity challenges tied to high leverage and capex intensity.