RANG Latest Report
1min read Performance of the Current Financial Report
Based on the provided financial data, Range Capital's revenue in December 2024 was RMB277.88 million, while its net profit was RMB1,349.32 million, indicating its reliance on other gains. Despite revenue growth, negative pre-tax profit and EBIT indicate the company's unstable profitability and operating pressure.
Ask Aime: What does Range Capital's decline in profitability imply for its market position?
Key Data in the Financial Report
1. Revenue reached RMB277.88 million, showing a certain sales capacity, but compared with negative pre-tax profit (-RMB116.86 million) and EBIT (-RMB394.74 million), it indicates problems in cost control.
2. Net profit of RMB1,349.32 million relies on other gains of RMB964.78 million, showing poor profitability.
3. Total current assets of RMB10.101573 million and current liabilities of RMB26.4087 million result in a current ratio of 382.67, indicating sufficient short-term solvency but insufficient profitability.
4. Net cash provided by operating activities was -RMB3,342.75 million, reflecting the company's cash outflows exceeding inflows in its daily operations, with low operating efficiency.
Peer Comparison
1. Industry-wide analysis: In the current economic environment, many companies face the double pressure of sluggish sales revenue growth and rising costs, leading to a downward trend in industry-wide profitability, similar to Range Capital's situation.
2. Peer evaluation analysis: Range Capital's revenue is maintained at a certain level, but its negative pre-tax and EBIT indicate its lagging profitability compared to peers. If peer companies can effectively control costs to achieve profitability, range capital needs to make in-depth operational strategy adjustments to enhance market competitiveness.
Summary
From this analysis, Range Capital maintains a certain level of revenue but its insufficient profitability and negative cash flow show significant challenges in its management. The company needs to make in-depth adjustments in cost control and operating efficiency.
Opportunities
1. Optimizing cost structure, especially controlling employee costs, may enhance overall profitability.
2. Utilizing the advantage of good liquidity, it can make effective investments to diversify income.
3. With the industry-wide challenges, if it can adjust its strategy when competitors fail to do so, it may have the opportunity to enhance its relative market share.
Risks
1. Negative pre-tax and EBIT may lead to further deterioration of the company's long-term profitability.
2. Negative net cash provided by operating activities indicates that the company may face greater cash flow risks in its daily operations.
3. The market's preference for low-risk assets may limit the company's investment returns, restricting its overall operating strategy.
