Executive Summary
Technovator International Limited reported QQ3 2024 revenue of 658.33 million CNY, up 3.18% year over year, and a strong sequential rise of approximately 157% from Q2 2024 to Q3 2024. Despite the top-line gain, the company delivered a negative EBITDA of 83.37 million CNY and a net loss of 98.18 million CNY for the quarter, translating to an operating margin of -16.02% and a net margin of -14.91%. The gross margin was 6.77% (44.55 million CNY gross profit on 658.33 million CNY revenue), indicating pricing, mix, or cost pressures persist in the quarter. The balance sheet shows a solid cash cushion of 344.69 million CNY and a low net debt position (net debt of 3.82 million CNY after cash). However, working capital indicators deteriorated with a Days Sales Outstanding (DSO) of ~356 days and a cash conversion cycle (CCC) of ~237 days, underscoring substantial receivables and working capital intensity relative to quarterly revenue. The company continues to hold three segments—Smart Transportation, Smart Buildings and Complex, and Smart Energy—with sizable intangible assets (576.2 million CNY) and a broad asset base (total assets of 5.57 billion CNY) that underpin its scale in China’s energy management and infrastructure market. Management commentary is not available in the provided dataset, limiting color on execution catalysts or forward targets. Investors should monitor margin realization, working capital optimization, and any backlog-driven signals from project wins as potential catalysts for improvement.
Key Performance Indicators
QoQ: -180.40% | YoY:-217.03%
QoQ: -182.29% | YoY:-127.81%
QoQ: -192.13% | YoY:-135.93%
Key Insights
Revenue performance: 658,330,500 CNY in QQ3 2024; YoY growth of 3.18%; QoQ growth of 156.87% (Q2 2024 to Q3 2024).
Gross Profit: 44,554,000 CNY; Gross Margin: 6.77% (0.0677).
Profitability: EBITDA -83,370,500 CNY; Operating Income -105,496,500 CNY; Operating Margin -16.02%; Net Income -98,175,500 CNY; Net Margin -14.91%; Earnings per Share (Diluted) -0.13 CNY.
Efficiency and Working Capital: DSO 356.11 days; Days of Inventory Outstanding 199.97 days; Days Payables Outstanding 319.07 days; CCC 23...
Financial Highlights
Revenue performance: 658,330,500 CNY in QQ3 2024; YoY growth of 3.18%; QoQ growth of 156.87% (Q2 2024 to Q3 2024).
Gross Profit: 44,554,000 CNY; Gross Margin: 6.77% (0.0677).
Profitability: EBITDA -83,370,500 CNY; Operating Income -105,496,500 CNY; Operating Margin -16.02%; Net Income -98,175,500 CNY; Net Margin -14.91%; Earnings per Share (Diluted) -0.13 CNY.
Efficiency and Working Capital: DSO 356.11 days; Days of Inventory Outstanding 199.97 days; Days Payables Outstanding 319.07 days; CCC 237.02 days.
Liquidity and Leverage: Cash and Equivalents 344,686,000 CNY; Total Current Assets 4,497,478,000 CNY; Total Liabilities 2,935,956,000 CNY; Total Stockholders' Equity 2,613,760,000 CNY; Total Debt 348,501,000 CNY; Net Debt 3,815,000 CNY; Current Ratio 1.56; Quick Ratio 1.09; Cash Ratio 0.12.
Valuation: Price-to-Book 0.081; Price-to-Sales 0.322; P/E ratio negative; Enterprise Value multiple -2.58; Revenue efficiency indicators such as Asset Turnover 0.118 and Fixed Asset Turnover 10.84 suggest high fixed asset utilization in rapid revenue phases. EPS and diluted EPS are -0.13 CNY.
Note: The provided earnings metrics reflect quarterly data; no quarterly cash flow figures are reported in the dataset.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
658.33M |
3.18% |
156.87% |
| Gross Profit |
44.55M |
36.64% |
58.88% |
| Operating Income |
-105.50M |
-217.03% |
-180.40% |
| Net Income |
-98.18M |
-127.81% |
-182.29% |
| EPS |
-0.13 |
-135.93% |
-192.13% |
Key Financial Ratios
operatingProfitMargin
-16%
Management Commentary
Transcript highlights are not available in the provided data. No management quotes or call transcripts are included. If a transcript becomes available, key themes would likely cover strategy execution in Smart Transportation, Smart Buildings, and Smart Energy, project backlog status, pricing/margin realization, and outlook for China’s energy management and urban infrastructure markets.
Forward Guidance
No explicit forward guidance was published in the provided QQ3 2024 results. The absence of quantified targets for QQ4 2024 or FY2025 means investors should base view on trailing results, markdowns in profitability, and macro indicators for China’s tech hardware and energy infrastructure buildup. In a cautious reading, management would likely be watching: (1) margin realization on project mix and pricing, (2) working capital optimization to reduce DSO and CCC, (3) cadence of project wins and backlog replenishment in Smart Transportation and Smart Energy, and (4) any shifts in government or regulatory incentives around smart city, energy efficiency, and heating network deployments. Potential catalysts include improved gross margin through product mix optimization, better cost control, and faster receivables collection; risks include execution delays, customer concentration, and competitive pricing pressures in a slowing economy.