China International Holdings (BEH) Q3 2024 earnings summary

Executive summary

• 9M 2024 revenue fell 6.0% YoY to RMB72.76m; net loss widened to RMB105.96m, mainly due to a RMB96.36m share of Huike’s loss and RMB11.66m of loss allowances on other receivables.

• Q3 2024 revenue was RMB23.26m and profit was RMB2.25m, versus revenue of RMB25.56m and a loss of RMB1.02m in Q3 2023.

Financial highlights

• 9M revenue was RMB72.762m versus RMB77.404m YoY; gross profit was RMB14.446m versus RMB28.414m.

• 9M other loss, net, was RMB11.085m versus other income of RMB2.943m; loss before tax was RMB102.606m versus RMB7.185m.

• 9M net loss was RMB105.955m versus RMB6.931m; loss attributable to owners was RMB110.485m versus RMB7.546m.

• 9M basic and diluted loss per share was RMB141.57 fen versus RMB9.85 fen; Q3 basic EPS was RMB0.41 fen versus a loss of RMB2.06 fen.

Outlook and guidance

• Management remained cautiously optimistic on general economic conditions for the next 12 months, while noting the PRC economy had not fully recovered.

• Focus remains on cash generation from investment properties and further development of the water treatment business in China; no new investment plans were indicated.

• Management will review the viability of Papua New Guinea exploration licence PPL 666 over the next few months; the Liuhe Gold project remains under care after full impairment.