Executive Summary
China Conch Environment Protection Holdings Limited (0587.HK) reported QQ4 2024 revenue of RMB 882.98 million, up 100% QoQ from Q3 2024 (RMB 441.49 million), signaling a notable ramp in project activity and utilization of installed capacity. Despite the QoQ revenue surge, operating profit remained negative at RMB -122.05 million and net income posted a loss of RMB -75.87 million, translating to an EPS of RMB -0.0416 for the quarter. The gross margin stood at 30.53%, with EBITDA of RMB 148.29 million (EBITDA margin ≈ 16.8%), underscoring the business’s ability to generate cash flow at the EBITDA level even as depreciation, interest, and other non-cash/financing items pressure the bottom line. On a YoY basis, revenue declined roughly 0.9% versus Q4 2023 (RMB 891.03 million), while net income swung from a positive RMB 62.72 million in Q4 2023 to a negative RMB 75.87 million in Q4 2024, a deterioration of about 221% in quarterly earnings performance.
Key Performance Indicators
QoQ: 100.00% | YoY:-0.90%
QoQ: 100.00% | YoY:-32.32%
QoQ: -100.00% | YoY:-190.20%
QoQ: -100.00% | YoY:-220.96%
QoQ: -100.00% | YoY:-221.21%
Key Insights
Revenue: RMB 882.98m; YoY: -0.90%; QoQ: +100.00%; Gross Profit: RMB 269.62m; Gross Margin: 30.53%; EBITDA: RMB 148.29m; EBITDA Margin: 16.79%; Operating Income: RMB -122.05m; Operating Margin: -13.82%; Net Income: RMB -75.87m; Net Margin: -8.59%; EPS: RMB -0.0416; Diluted EPS: RMB -0.0416; Weighted Avg Shares: 1,826,775,824; CFO: RMB 94.28m; Capex: RMB 183.35m; Free Cash Flow: RMB 277.62m (note potential dataset inconsistency with CFO/Capex); Net Cash from Operating Activities: RMB 94.28m; Net C...
Financial Highlights
Revenue: RMB 882.98m; YoY: -0.90%; QoQ: +100.00%; Gross Profit: RMB 269.62m; Gross Margin: 30.53%; EBITDA: RMB 148.29m; EBITDA Margin: 16.79%; Operating Income: RMB -122.05m; Operating Margin: -13.82%; Net Income: RMB -75.87m; Net Margin: -8.59%; EPS: RMB -0.0416; Diluted EPS: RMB -0.0416; Weighted Avg Shares: 1,826,775,824; CFO: RMB 94.28m; Capex: RMB 183.35m; Free Cash Flow: RMB 277.62m (note potential dataset inconsistency with CFO/Capex); Net Cash from Operating Activities: RMB 94.28m; Net Cash from Investing Activities: RMB -100.89m; Net Cash from Financing Activities: RMB 5.17m.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
882.98M |
-0.90% |
100.00% |
| Gross Profit |
269.62M |
-32.32% |
100.00% |
| Operating Income |
-122.05M |
-190.20% |
-100.00% |
| Net Income |
-75.87M |
-220.96% |
-100.00% |
| EPS |
-0.04 |
-221.21% |
-100.00% |
Key Financial Ratios
operatingProfitMargin
-3.6%
operatingCashFlowPerShare
$0.05
freeCashFlowPerShare
$0.15
dividendPayoutRatio
-67.7%
Management Commentary
No earnings-call transcript provided in the dataset. Transcript highlights could not be extracted. If a transcript becomes available, key management themes should be grouped into strategy, operations, and market conditions with direct quotes anchored to the corresponding statements.
Forward Guidance
No formal forward guidance was disclosed in the submitted data. Observations and risk factors to monitor: (1) project execution and utilization of capacity driving QoQ revenue ramp in QQ4 2024 and potential sustained volumes in 2025; (2) leverage deleveraging efforts and refinancing risk given long-term debt of RMB 3.79 billion and total debt of RMB 4.66 billion; (3) cash flow dynamics, noting a reported CFO of RMB 94.28 million versus a capex outlay of RMB 183.35 million and a contradictory free cash flow figure (277.62 million) in the dataset—clarification from management would be required; (4) regulatory and policy support for industrial solid waste and hazardous waste treatment in China, which could influence demand and pricing dynamics; and (5) commodity and operating cost sensitivity (depreciation & amortization, maintenance capex, and potential financing costs). Investors should watch project backlog, capex intensity, working capital efficiency, and the company's ability to reduce leverage over time.