Green Build Technology (Y06) Q3 2024 earnings summary

Executive summary

• Continuing operations generated RMB2.608m revenue and a RMB1.901m net loss for the nine months ended 30 September 2024; the prior-year period included RMB93.896m profit from discontinued operations, largely reflecting the disposal gain.

• Material uncertainty over going concern persists: current liabilities exceeded current assets by RMB8.421m, and net liabilities reached RMB7.143m at 30 September 2024.

Financial highlights

• Continuing-operations revenue rose to RMB2.608m from RMB2.115m, driven by additional consulting and management contracts; gross profit was RMB2.008m.

• Continuing-operations loss before tax was RMB1.506m versus RMB0.861m; net loss was RMB1.901m versus RMB1.264m, with RMB0.395m income tax expense in 2024.

• Total result shifted from RMB92.632m profit in 3Q2023 to RMB1.901m loss in 3Q2024; prior-period discontinued-operations profit included a RMB93.429m gain on sale.

• Administrative expenses rose to RMB3.622m from RMB3.396m, attributed mainly to inflation; staff costs were RMB2.621m versus RMB1.883m.

Outlook and guidance

• Efforts to secure additional management, consultancy and maintenance projects are intended to grow revenue; management expects continuing operations to become cashflow positive.

• Outstanding customer receivables are targeted for full collection by Q1 2025 under repayment plans, subject to unforeseen circumstances.

• A proposed hotel-business acquisition and diversification require shareholder approval; an extraordinary general meeting was scheduled for 29 November 2024.