Ruqi Shares' revenue grew by 12%, but the deadly concern of losses expanding by over 149% cannot be overlooked

Ruiqi Co., Ltd. has delivered a concerning performance report. During the reporting period, the company achieved total operating revenue of 491 million yuan, a year-on-year increase of 12.21%, demonstrating a steady expansion trend. However, in stark contrast to the revenue growth, all profit metrics collapsed: operating profit plummeted from a loss of 16.9253 million yuan in the same period last year to a loss of 42.5131 million yuan, a decrease of 151.18%; the total profit loss widened by 134.45%; and the net profit attributable to shareholders of the listed company worsened from a loss of 19.2644 million yuan to a loss of 48.0084 million yuan, down 149.21% year-on-year. The net profit loss after deducting non-recurring gains and losses also expanded by 70.47%, with basic earnings per share deepening from a loss of 0.06 yuan per share to a loss of 0.16 yuan, a decrease of 166.67%. This is a typical “increased revenue with losses” performance report, which conceals deep-seated crises in the company’s survival and development.

The biggest concern lies in the structural paradox of simultaneous revenue growth and profit loss. A revenue increase of over 12% should dilute fixed costs and improve profitability, but the company has instead fallen into a deeper loss pit, which can only indicate one issue: the loss of control over costs and expenses. Alongside revenue expansion, operating costs, period expenses, and asset impairment expenses have surged at rates significantly exceeding revenue growth, resulting in incremental income not contributing to profits but instead accelerating losses. This “the more we sell, the worse we lose” business model directly questions the company’s product pricing ability, cost control level, and the rationality of its business structure. If not addressed promptly, it will form a vicious cycle of continuous bleeding.

A deeper concern is that the sharp increase in loss magnitude has touched the financial safety bottom line. The net profit loss attributable to shareholders has skyrocketed from less than 20 million yuan to 48 million yuan, more than doubling the loss scale. The weighted average return on net assets has dropped further from negative 1.8% to negative 4.64%, indicating that shareholders’ equity is being eroded at an accelerating rate. Meanwhile, the equity attributable to shareholders of the listed company has decreased from 1.059 billion yuan to 1.015 billion yuan, and total assets have shrunk from 1.276 billion yuan to 1.240 billion yuan, showing a deteriorating trend in the asset-liability structure. In the context of continuous losses and expanding loss magnitude, the company’s cash flow will face severe tests; if it cannot improve operations or secure external financing to replenish liquidity, it may trigger a series of chain reactions such as declining debt repayment ability and tightening financing channels.

In addition, the company’s share capital has not changed, meaning that the losses are entirely borne by existing shareholders, with net assets per share falling from 3.48 yuan to 3.34 yuan, continuously evaporating shareholders’ equity. In summary, the performance revealed by Ruiqi Co., Ltd. is not merely a simple fluctuation in profits, but a dangerous signal of fundamental flaws in the business model—against the backdrop of intensified industry competition or delayed product iteration, the company has lost the basic ability to convert revenue into profit. How to stem the bleeding and reconstruct the profit model has become a survival issue facing the company.

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Editor: AI Observer