China International Holdings (BEH) Q4 2024 earnings summary

Executive summary

• FY2024 revenue fell 5.1% YoY to RMB92.92m; net loss widened to RMB108.09m, primarily reflecting a RMB96.36m share of loss from Huike.

• Cash and cash equivalents rose to RMB40.43m from RMB20.80m; operating activities generated RMB3.26m of net cash.

Financial highlights

• Revenue was RMB92.916m versus RMB97.913m in FY2023; gross profit increased to RMB31.509m from RMB27.184m.

• FY2024 net loss was RMB108.086m versus RMB74.011m; loss before tax was RMB107.520m versus RMB82.977m.

• The FY2024 share of joint-venture loss was RMB96.357m versus RMB0.556m in FY2023; Huike recorded a RMB194m loss on disposal of its Exhibition Asset.

• FY2024 impairment loss on contract assets was RMB7.562m, down from RMB8.665m; fair value loss on investment properties was RMB10.260m versus RMB13.701m.

• Six months ended 31 December 2024 revenue was RMB43.413m versus RMB46.067m; net profit was RMB0.116m versus a RMB68.104m loss.

Outlook and guidance

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

• Priorities are cash generation from investment properties and further development of the water treatment business in China; no new investment plans were stated.

• Tianjin Lingang Water's completed expansion is intended to increase re-pressurized water supply and improve wastewater treatment and purification capacity in related service areas.