Executive Summary
Royale Home reported QQ3 2024 revenue of HKD 150.895 million, down 4.17% year over year, but up 10.94% quarter over quarter. Gross profit stood at HKD 9.795 million with a gross margin of 6.49%, indicating some stabilization in product costs or pricing; however, selling, general and administrative expenses totaled HKD 87.058 million, contributing to an operating loss of HKD 77.263 million and an EBITDA of HKD -91.199 million. Net income declined to a loss of HKD 103.436 million, with an earnings per share of HKD -0.0417. Free cash flow was negative HKD 22.693 million, while operating cash flow was also negative at HKD -22.511 million.
Key Performance Indicators
QoQ: -26.03% | YoY:52.76%
QoQ: -30.40% | YoY:36.67%
QoQ: -30.31% | YoY:36.63%
Key Insights
Revenue: HKD 150,894,503; YoY -4.17%; QoQ +10.94%; Gross Profit: HKD 9,795,108; Gross Margin: 6.49%; Operating Income: HKD -77,263,098; EBITDA: HKD -91,199,457; EBITDA Margin: -60.44%; Net Income: HKD -103,436,002; Net Margin: -68.55%; EPS (Diluted): HKD -0.0417; Weighted Avg Shares: 2,477,947,594; Cash Flow: Operating cash flow HKD -22,510,746; Free cash flow HKD -22,692,968; Capex: HKD -182,221; Cash and equivalents: HKD 22,655,305; Short-term investments: HKD 165,866,035; Total debt: HKD 3,24...
Financial Highlights
Revenue: HKD 150,894,503; YoY -4.17%; QoQ +10.94%; Gross Profit: HKD 9,795,108; Gross Margin: 6.49%; Operating Income: HKD -77,263,098; EBITDA: HKD -91,199,457; EBITDA Margin: -60.44%; Net Income: HKD -103,436,002; Net Margin: -68.55%; EPS (Diluted): HKD -0.0417; Weighted Avg Shares: 2,477,947,594; Cash Flow: Operating cash flow HKD -22,510,746; Free cash flow HKD -22,692,968; Capex: HKD -182,221; Cash and equivalents: HKD 22,655,305; Short-term investments: HKD 165,866,035; Total debt: HKD 3,244,307,978; Net debt: HKD 3,221,652,673; Current ratio: 0.76; Quick ratio: 0.658; Cash ratio: 0.0077; Debt to equity: 2.26; Debt to capitalization: 0.693; Price to sales: 6.57; Price to book: 0.691; Net debt to EBITDA not disclosed in the data; Asset turnover: 0.0271; Receivables turnover: 0.582; Inventory turnover: 0.469.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
150.89M |
-4.17% |
10.94% |
| Gross Profit |
9.80M |
122.88% |
2.85% |
| Operating Income |
-77.26M |
52.76% |
-26.03% |
| Net Income |
-103.44M |
36.67% |
-30.40% |
| EPS |
-0.04 |
36.63% |
-30.31% |
Key Financial Ratios
operatingProfitMargin
-51.2%
Management Commentary
No earnings transcript data available for QQ3 2024. Management quotes and highlights are not provided in the supplied materials.
Forward Guidance
No formal forward guidance was disclosed for QQ3 2024. Given the current leverage and liquidity profile, investors should monitor: (1) deleveraging progress and refinancing risk given short- and long-term debt mix; (2) stabilization or improvement in gross margins and a path to positive EBITDA; (3) working-capital optimization including receivables and inventory management; and (4) any strategic initiatives such as asset monetization, cost-cutting programs, or divestitures that could unlock liquidity.