Revenue grows but losses deepen for Suzhou Golden Green
November 12, 2024
OPC manufacturer, Suzhou Golden Green sees revenue boost, yet mounting losses test company resilience amid headwinds.
The China based OPC manufacturer, Suzhou Golden Green (SGT), listed under ticker code 002808SZ, reported mixed results in its latest quarterly disclosure. Despite an increase in third-quarter revenue by 10.03% compared to the previous year, the company faces challenges with a widened net loss and a substantial decline in cash flow from operations. As the firm continues to expand its non-core investments, its core printer division’s financial performance remains largely obscured, raising questions about its long-term growth trajectory.
For the third quarter ending September 30, SGT recorded revenue of ¥41.7 million (approx. $5.76 million / €5.27 million), bringing the year-to-date revenue to ¥115.7 million (approx. $16 million / €14.6 million), a 9.46% improvement over the prior year. However, the period’s losses deepened, with the company posting a net loss of ¥4.15 million ($570,000 / €520,000), representing an 81.72% increase from the previous year, with cumulative losses reaching ¥17 million (approx. $2.36 million / €2.15 million) for the year.
Key contributors to the losses include heightened sales expenses—up by 41.89% year-on-year—attributed to trade show costs and staffing increases. The company also experienced a steep rise in operating expenses, leading to a negative cash flow of ¥25.2 million (approx. $3.5 million / €3.2 million) for the quarter, a marked 808% decline compared to last year’s operating inflows. The stark reduction in cash flows poses significant concerns about the firm’s liquidity position as it advances through the final quarter.
Investments played a positive role, with returns from financial instruments contributing to overall gains. The report indicates a substantial decrease in cash outflow for investment purchases, leading to an increase in net cash generated from investing activities to ¥49.8 million (approx. $6.9 million / €6.3 million). Nonetheless, the benefits were partially offset by the company’s efforts to clear past debts, resulting in ¥5.1 million (approx. $700,000 / €645,000) in financing outflows due to increased dividend distributions.
SGTs operational headwinds extend beyond its financial statements. In April, regulatory authorities launched an investigation into the company for alleged violations related to information disclosures, following similar scrutiny directed at its controlling shareholder and executives.
Categories : City News
Tags : Financials Losses Q32024 revenue SGT
