Green Build Technology Limited: Financial Report Analysis and Investment Recommendation

Business Description

Green Build Technology Limited, together with its subsidiaries, operates in the construction and hospitality industry, providing management and consultancy services, as well as acquiring and investing in hospitality or lodging related assets.

Company’s Position within the Industry and Market Share

The company operates in the construction and hospitality industry, with a focus on providing management and consultancy services, as well as acquiring and investing in related assets. However, the report does not provide detailed information on the company’s position within the industry, its competitors, or market share.

Revenue Streams, Customer Base, Supply Chain, and Competitive Advantage

The company’s revenue streams include management and consultancy services, as well as revenue from its hospitality and lodging related business. The customer base appears to be diversified, but specific details are not provided. The report mentions that the company has increased its existing business revenue through securing additional management, consultancy, and maintenance projects.

Financial Statement Analysis

Income Statement

The company’s financial performance for the year ended 31 December 2024 is not explicitly stated, but it is reported that the Group generated a net loss from continuing operations of RMB3,179,000 and the Company incurred a net loss of RMB4,509,000.

Balance Sheet

The Group’s and the Company’s current liabilities exceeded their current assets by RMB11,407,000 and RMB12,773,000, respectively. The Group’s trade receivables comprise 1 debtor (2023: 1 debtor) that individually represented 97% (2023: 100%) of the trade receivables.

Cash Flow Statement

No detailed information is provided on the company’s cash flow statement.

Key Findings and Risks

The company’s current liabilities exceeded its current assets, indicating potential liquidity issues.
The Group’s and the Company’s current liabilities exceeded the current assets by RMB11,407,000 and RMB12,773,000, respectively.
The company has a significant amount of trade receivables, with a single debtor representing 97% of the total receivables.
The auditor has issued a disclaimer of opinion due to the uncertainty of the company’s going concern assumption.

Compelling Reasons for Investor Action

The company’s ability to continue as a going concern is uncertain due to its current liabilities exceeding its current assets.
The auditor’s disclaimer of opinion and the uncertainty surrounding the company’s financial statements may impact investor confidence.
The company’s revenue streams and customer base appear to be diversified, but specific details are not provided.

Important Information for Investor Action

Date of the report: 14 April 2025
Financial year reported: 31 December 2024

Special Activities or Actions

The company is taking steps to improve its profitability, including:
Securing additional management, consultancy, and maintenance projects to increase revenue
Procuring new business and projects to diversify its revenue stream and strengthen shareholders’ value
Exploring fundraising opportunities to strengthen its cash and financial position

Recommendation

Based on the analysis, we recommend that investors exercise caution when dealing with this stock. The company’s financial performance and position raise concerns about its ability to continue as a going concern.
For current holders: We recommend holding but with a cautious view, as the company’s financial performance and position may impact its ability to meet its debt obligations.
For potential investors: We recommend a hold or sell strategy, as the company’s financial statements and auditor’s report raise significant concerns about its ability to continue operating.
Disclaimer: This recommendation is based solely on the information provided in the report and should not be considered as investment advice. It is essential to conduct thorough research and consider multiple sources before making any investment decisions.

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