Green Build Technology (Y06) Q1 2024 earnings summary

Executive summary

• Q1 2024 continuing-operations revenue rose 23.3% YoY to RMB870,000, while net loss widened to RMB526,000 from RMB166,000; results reflect the post-disposal operating structure.

• Material uncertainty over going concern remains, with current liabilities exceeding current assets and a net liability position; statements use the going-concern basis.

Financial highlights

• Revenue increased to RMB870,000 from RMB705,000 YoY, driven by additional consulting and management contracts secured by Yunbao.

• Gross profit was RMB670,000 and gross margin 77.0%, down from 100% YoY as continuing operations assumed delivery costs previously borne by the disposed businesses.

• Continuing-operations loss before tax was RMB396,000; net loss was RMB526,000, versus RMB166,000 in Q1 2023.

• Administrative expenses rose to RMB1.075m from RMB799,000 as expenses previously borne by the disposed businesses shifted to continuing operations.

Outlook and guidance

• Additional management, consultancy and maintenance projects are being pursued, with management expecting prior business-development efforts to support revenue growth.

• Discussions are underway for maintenance work at other housing estates and facilities; fundraising and ancillary business opportunities are also being explored.

• No dividend was declared for Q1 2024 to conserve resources for current projects, potential sustainable-development projects and new businesses.