China International Holdings: Navigating Turbulent Waters in 2024

As we step into 2025, let's take a moment to reflect on the financial performance of China International Holdings Limited (SGX:BEH) in 2024. The company reported a net loss per share of CN¥1.43, a significant increase from the CN¥0.96 loss per share in FY 2023. This article will delve into the factors contributing to this increase and explore potential measures to improve the company's financial stability.



Factors Contributing to the Increase in Net Loss per Share

1. Decline in Revenue: The company's revenue decreased by 5.10% from CNY 97.91 million in 2023 to CNY 92.92 million in 2024. This decline in revenue directly impacts the company's profitability and contributes to the increased net loss per share.
2. Increased Expenses: Although not explicitly stated in the provided information, it can be inferred that the company's expenses have increased, as the net loss widened despite the relatively small decline in revenue. This could be due to increased operational costs, research and development expenses, or other factors.
3. Earnings Guidance: The company provided earnings guidance for the fiscal year 2024, expecting to report a loss for the period. This guidance suggests that the company was aware of the challenges it faced and anticipated the increased net loss per share.

Potential Measures to Improve Financial Stability

1. Diversify Revenue Streams: The company can explore new revenue streams or expand its existing ones to mitigate the decline in revenue. For instance, it can consider investing in new technologies or services within its water supply services and land development businesses to attract more customers and increase revenue.
2. Cost Optimization: The company can review its operational expenses and identify areas where costs can be reduced without compromising the quality of its services. This can help improve profitability and reduce losses.
3. Strengthen Balance Sheet: The company can work on improving its balance sheet by increasing its cash and cash equivalents, reducing debt, and improving its liquidity position. This can be achieved by generating more cash from operations, reducing capital expenditures, or raising funds through equity or debt issuance.
4. Enhance Corporate Governance: The company can improve its corporate governance by ensuring that it has a diverse and experienced board of directors, with a mix of skills and expertise. This can help the company make better decisions, improve its performance, and enhance shareholder value.
5. Improve Shareholder Communication: Given the company's highly illiquid shares and lack of meaningful market cap, it is essential to improve shareholder communication. The company can provide regular updates on its financial performance, strategic initiatives, and progress towards its goals to build trust with shareholders and attract new investors.



In conclusion, the primary factors contributing to the increase in China International Holdings' net loss per share from CN¥0.96 in FY 2023 to CN¥1.43 in FY 2024 are the decline in revenue and increased expenses. To improve its financial stability and mitigate the risk of further losses, the company can consider diversifying its revenue streams, optimizing costs, strengthening its balance sheet, enhancing corporate governance, and improving shareholder communication. By implementing these measures, China International Holdings Limited can improve its financial stability, mitigate the risk of further losses, and enhance its long-term prospects.