Reported Earnings • May 01
First quarter 2024 earnings released: CN¥0.083 loss per share (vs CN¥0.004 profit in 1Q 2023) First quarter 2024 results: CN¥0.083 loss per share (down from CN¥0.004 profit in 1Q 2023). Revenue: CN¥473.8m (down 50% from 1Q 2023). Net loss: CN¥67.7m (down CN¥70.7m from profit in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 49% per year, which means it has not declined as severely as earnings. Announcement • May 01
Henan Xinye Textile Co., Ltd., Annual General Meeting, May 31, 2024 Henan Xinye Textile Co., Ltd., Annual General Meeting, May 31, 2024, at 15:00 China Standard Time. Location: The Company's Meeting Room, Xinye County, Henan China New Risk • Apr 30
New major risk - Negative shareholders equity The company has negative equity. Total equity: -CN¥834m This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CN¥421m free cash flow). Negative equity (-CN¥834m). Earnings have declined by 70% per year over the past 5 years. Minor Risk Market cap is less than US$100m (CN¥375.7m market cap, or US$51.9m).