Executive Summary
Modern Chinese Medicine Group delivered a profitable Q3 2024, with revenue of 68.72 million CNY, down 16.18% year‑over‑year but up 79.37% quarter‑over‑quarter, reflecting a volatile topline basis yet favorable quarterly seasonality. Gross profit was 16.75 million CNY, yielding a gross margin of 24.37%, while operating income reached 9.12 million CNY for an operating margin of 13.27%. Net income stood at 8.26 million CNY (net margin 12.02%), and EPS was 0.0138 CNY. EBITDA was 11.38 million CNY (EBITDA margin ~16.55%). The quarter underscored a resilient profitability profile amid a smaller base, driven by a disciplined cost structure and a stable gross margin.
Key Performance Indicators
QoQ: 79.37% | YoY:-16.18%
QoQ: 54.33% | YoY:-25.48%
QoQ: 346.61% | YoY:-29.22%
QoQ: 341.13% | YoY:-22.12%
QoQ: 342.11% | YoY:-22.03%
Key Insights
Revenue: 68.72m CNY (YoY -16.18%, QoQ +79.37%). Gross Profit: 16.75m CNY (Gross Margin 24.37%). Operating Income: 9.12m CNY (Operating Margin 13.27%). Net Income: 8.26m CNY (Net Margin 12.02%). EPS: 0.0138 CNY. EBITDA: 11.38m CNY (EBITDA Margin 16.55%). Balance Sheet: Total assets 540.31m, cash and equivalents 229.67m, total liabilities 56.08m, equity 484.23m. Liquidity: Current ratio 7.20, quick ratio 6.58, cash ratio 4.69. Cash flow: Operating cash flow -7.69m CNY, free cash flow -7.64m CNY. L...
Financial Highlights
Revenue: 68.72m CNY (YoY -16.18%, QoQ +79.37%). Gross Profit: 16.75m CNY (Gross Margin 24.37%). Operating Income: 9.12m CNY (Operating Margin 13.27%). Net Income: 8.26m CNY (Net Margin 12.02%). EPS: 0.0138 CNY. EBITDA: 11.38m CNY (EBITDA Margin 16.55%). Balance Sheet: Total assets 540.31m, cash and equivalents 229.67m, total liabilities 56.08m, equity 484.23m. Liquidity: Current ratio 7.20, quick ratio 6.58, cash ratio 4.69. Cash flow: Operating cash flow -7.69m CNY, free cash flow -7.64m CNY. Leverage: Net debt position -229.53m CNY (net cash). Valuation snapshot: P/E ~5.74x, P/B ~0.39x, P/S ~2.76x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
68.72M |
-16.18% |
79.37% |
| Gross Profit |
16.75M |
-25.48% |
54.33% |
| Operating Income |
9.12M |
-29.22% |
346.61% |
| Net Income |
8.26M |
-22.12% |
341.13% |
| EPS |
0.01 |
-22.03% |
342.11% |
Key Financial Ratios
operatingProfitMargin
13.3%
Management Commentary
Earnings call transcript data not provided in the dataset. As a result, management quotes and thematic takeaways from the QQ3 2024 call are not available to supplement the financials in this analysis. The assessment relies on disclosed quarterly numbers and peer context.
Forward Guidance
No explicit forward guidance was published in the provided data. Given the quarter’s revenue volatility but solid profitability and a substantial cash buffer, the company could pursue stabilizing topline growth through expanded distribution of proprietary Chinese medicines and potential product line extensions targeted at the elderly. Investors should monitor: (1) any management commentary on revenue diversification or new product launches, (2) working capital efficiency and cash conversion, especially given the negative operating cash flow, and (3) regulatory developments affecting CHM pricing, reimbursement, or R&D incentives. In the absence of formal targets, the assessment leans on mid-cycle revenue stabilization with continued cost discipline as a plausible near-term path.