Chinese People Holdings (0681.HK) Q4 2024 Earnings Report

Executive Summary (QQ4 2024): Chinese People Holdings reported a robust top-line rebound in Q4 2024 with revenue of 1,272,984,000 CNY, up 107.37% year over year and 100% quarter over quarter, signaling a substantial recovery in demand within its regulated gas and related segments. Gross profit reached 135,454,000 CNY for the quarter, delivering a gross margin of 10.64%, while EBITDA stood at 42,469,750 CNY and operating income was 15,288,000 CNY (operating margin 1.20%). Despite a positive operating trajectory, net income declined to -28,077,000 CNY in Q4, producing a net margin of -2.21%. The divergence between operating profitability and net income is driven by non-operating items and higher total other income/expenses (net) of -21,639,000 CNY, underscoring the importance of non-core factors in quarterly bottom-line reporting. On a positive note, operating cash flow was 48,031,000 CNY for the quarter, capex totaled -45,058,000 CNY, resulting in free cash flow of 2,973,500 CNY, and the company maintained a solid liquidity position with cash and cash equivalents of 578,906,000 CNY and a net cash position of approximately -476,0 million CNY. The balance sheet remains robust: total assets of 3.369 billion CNY, total liabilities 622.7 million CNY, and total stockholders’ equity of 2.519 billion CNY, complemented by accumulated other comprehensive income (OCI) of 1.9537 billion CNY. The stock trades with a negative trailing P/E given the quarterly loss in Q4, and a very low price-to-book ratio of about 0.0867x, reflecting a valuation discount that may reflect near-term profitability volatility rather than lacking intrinsic value. Management commentary is not captured in the provided transcript, limiting a direct quote-based synthesis. Overall, the quarter validates a revenue growth narrative and positive cash generation, but profitability normalization remains a key overhang for near-term equity performance.