Shanghai Turbo Enterprises: Q3 2024 Earnings Shed Light on Revenue Growth and Loss Per Share Increase
Sunday, Nov 17, 2024 7:49 pm ET
4min read Shanghai Turbo Enterprises Ltd reported its third-quarter 2024 earnings, revealing a loss per share of CNY 0.031, a significant increase from the CNY 0.014 loss in the same period last year. Despite the increase in loss per share, the company's sales rose to CNY 20.17 million in Q3 2024 from CNY 18.76 million in Q3 2023, indicating a 7.5% year-over-year increase. This article explores the key drivers behind Shanghai Turbo's revenue growth and the factors contributing to the increase in loss per share.
Key drivers of Shanghai Turbo's revenue growth in Q3 2024 include the company's strategic focus on its core businesses and potential expansion into new markets or product lines. However, without specific details on the company's earnings report, it is difficult to pinpoint the exact factors contributing to the revenue growth.
Operating expenses have evolved over the past year, with an increase of 8.03% year-over-year, from CNY 17.17 million to CNY 18.56 million. This increase in operating expenses has contributed to the widening loss per share. However, it's essential to note that sales also increased by 3.38% year-over-year, from CNY 58.53 million to CNY 60.51 million. The company's earnings per share would have been more negatively impacted if not for the slight increase in sales.
The primary factors contributing to the increase in loss per share, despite revenue growth, can be attributed to several factors:
1. Increased Cost of Goods Sold (COGS): The company's COGS as a percentage of sales increased from 72.6% in 3Q 2023 to 74.3% in 3Q 2024. This increase in COGS, despite revenue growth, suggests that the company's production costs have risen, leading to a decrease in profit margins.
2. Higher Operating Expenses: Operating expenses as a percentage of sales increased from 12.9% in 3Q 2023 to 14.6% in 3Q 2024. This increase in operating expenses, which includes research and development, selling, general, and administrative expenses, has also contributed to the decrease in profit margins.
3. Deteriorating Gross Margin: The company's gross margin decreased from 27.4% in 3Q 2023 to 25.7% in 3Q 2024. This decrease in gross margin, combined with the increase in COGS and operating expenses, has led to the increase in loss per share.
In conclusion, the increase in loss per share for Shanghai Turbo Enterprises can be attributed to a combination of factors, including increased COGS, higher operating expenses, and deteriorating gross margins. Investors should monitor these trends closely to assess the company's ability to maintain or improve its profitability in the future.
Key drivers of Shanghai Turbo's revenue growth in Q3 2024 include the company's strategic focus on its core businesses and potential expansion into new markets or product lines. However, without specific details on the company's earnings report, it is difficult to pinpoint the exact factors contributing to the revenue growth.
Operating expenses have evolved over the past year, with an increase of 8.03% year-over-year, from CNY 17.17 million to CNY 18.56 million. This increase in operating expenses has contributed to the widening loss per share. However, it's essential to note that sales also increased by 3.38% year-over-year, from CNY 58.53 million to CNY 60.51 million. The company's earnings per share would have been more negatively impacted if not for the slight increase in sales.
The primary factors contributing to the increase in loss per share, despite revenue growth, can be attributed to several factors:
1. Increased Cost of Goods Sold (COGS): The company's COGS as a percentage of sales increased from 72.6% in 3Q 2023 to 74.3% in 3Q 2024. This increase in COGS, despite revenue growth, suggests that the company's production costs have risen, leading to a decrease in profit margins.
2. Higher Operating Expenses: Operating expenses as a percentage of sales increased from 12.9% in 3Q 2023 to 14.6% in 3Q 2024. This increase in operating expenses, which includes research and development, selling, general, and administrative expenses, has also contributed to the decrease in profit margins.
3. Deteriorating Gross Margin: The company's gross margin decreased from 27.4% in 3Q 2023 to 25.7% in 3Q 2024. This decrease in gross margin, combined with the increase in COGS and operating expenses, has led to the increase in loss per share.
In conclusion, the increase in loss per share for Shanghai Turbo Enterprises can be attributed to a combination of factors, including increased COGS, higher operating expenses, and deteriorating gross margins. Investors should monitor these trends closely to assess the company's ability to maintain or improve its profitability in the future.
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