Revenue expanded 29.5% in 2024Q4, yet the company remains a price-taker with gross margins fluctuating between 12.7% and 17.5% over the last three quarters.
| Sales/Revenue | 16.38M | 13.4M | 15.52M | 15.31M | 11.32M | 15.31M |
| Revenue Growth % | - | -13.7% | 1.4% | 35.26% | -26.07% | - |
| Cost of Goods Sold | 13.85M | 12.22M | 12.64M | 12.22M | 9.9M | 13.8M |
| COGS % of Revenue | - | 91.25% | 81.42% | 79.83% | 87.48% | 90.11% |
| Gross Profit | 2.53M | 1.17M | 2.88M | 3.09M | 1.42M | 1.51M |
| Gross Margin % | 15.45% | 8.75% | 18.58% | 20.17% | 12.52% | 9.89% |
| Gross Profit Growth % | - | -59.33% | -6.59% | 117.89% | -6.39% | - |
| Operating Expenses | 1.48M | 4.04M | 1.49M | 866.41K | 1.18M | 840.14K |
| OpEx % of Revenue | - | 30.19% | 9.58% | 5.66% | 10.42% | 5.49% |
| Selling, General & Admin | 825.13K | 4.04M | 830.39K | 866.41K | 1.18M | 840.14K |
| SG&A % of Revenue | - | 30.17% | 5.35% | 5.66% | 10.42% | 5.49% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 656.25K | 2K | 656.25K | 0 | 0 | 0 |
| Operating Income | 1.05M | -2.87M | 1.4M | 2.22M | 237.32K | 673.74K |
| Operating Margin % | 6.41% | -21.43% | 9% | 14.51% | 2.1% | 4.4% |
| Operating Income Growth % | - | -305.45% | -37.08% | 835.97% | -64.78% | - |
| EBITDA | 1.09M | -2.8M | 1.45M | 2.26M | 245.67K | 674.21K |
| EBITDA Margin % | 6.67% | -20.88% | 9.35% | 14.76% | 2.17% | 4.4% |
| EBITDA Growth % | - | -292.8% | -35.8% | 820.04% | -63.56% | - |
| D&A (Non-Cash Add-back) | 42.18K | 73.64K | 53.54K | 38.99K | 8.35K | 468 |
| EBIT | 1.13M | -2.9M | 1.48M | 2.17M | 146.1K | 468.04K |
| Net Interest Income | -117.91K | -106.82K | -151.95K | -202.78K | -236.03K | -303.57K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 104.28K | 106.82K | 134K | 153.19K | 146.29K | 96.61K |
| Other Income/Expense | -20.27K | -134.76K | -54.27K | -201.29K | -237.52K | -302.32K |
| Pretax Income | 1.03M | -3.01M | 1.34M | 2.02M | -195 | 371.42K |
| Pretax Margin % | 6.28% | -22.44% | 8.65% | 13.19% | -0% | 2.43% |
| Income Tax | 297.81K | 281.86K | 380.63K | 510.67K | 4.03K | 98.91K |
| Effective Tax Rate % | 28.93% | -9.38% | 28.33% | 25.28% | -2065.13% | 26.63% |
| Net Income | 731.67K | -3.29M | 962.74K | 1.51M | -4.22K | 272.51K |
| Net Margin % | 4.47% | -24.54% | 6.2% | 9.86% | -0.04% | 1.78% |
| Net Income Growth % | - | -441.54% | -36.21% | 35849.22% | -101.55% | - |
| Net Income (Continuing) | 731.67K | -3.29M | 962.74K | 1.51M | -4.22K | 272.51K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | 0.00 | 0.01 | 0.02 | -0.00 | 0.00 |
| EPS Growth % | - | -100% | -38.1% | - | - | - |
| EPS (Basic) | - | 0.00 | 0.01 | 0.02 | -0.00 | 0.00 |
| Diluted Shares Outstanding | 73.4M | 73.4M | 73.4M | 73.4M | 73.4M | 73.4M |
| Basic Shares Outstanding | 71.1M | 71.1M | 71.1M | 71.1M | 71.1M | 73.4M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Regional construction cycle volatility
As indicated by the most recent quarterly data, WXM experienced a 29.5% revenue expansion in 2024Q4 compared to the prior year, yet this follows a period of significant instability that suggests the company's top-line performance remains highly sensitive to the timing of regional construction project completions.
The sharp fluctuation in quarterly revenue highlights the transactional nature of the business, which lacks a recurring revenue base to smooth out performance. Investors should monitor whether this recent growth represents a sustainable recovery in the Chengdu market or merely the lumpy recognition of a single large-scale contract.
Based on the reported financial statements, WXM's gross margin fluctuated between 12.7% and 17.5% over the last three quarters, reflecting a competitive environment where the company appears to act as a price-taker for its specialized HVAC and air ventilation installation services.
The inability to maintain consistent gross margins suggests limited pricing power against both raw material suppliers and sophisticated commercial developers. This margin profile leaves little room for error, as any increase in input costs for copper or steel components could quickly erode the company's already thin profitability.
According to the income statement, WXM's operating margin swung from a positive 14.6% in 2024Q3 to a negative 7.2% in 2024Q4, demonstrating that the firm has not yet achieved the scale necessary to absorb its fixed administrative and overhead expenses during periods of lower activity.
The lack of consistent operating leverage implies that the company's cost structure is not sufficiently flexible to match the volatility of its project-based revenue. Without a significant increase in volume or a pivot toward higher-margin maintenance contracts, the firm may continue to struggle with profitability during cyclical downturns.
As reported in the latest filings, WXM's net income shifted from a profit of $825.7K in 2024Q3 to a loss of $250.6K in 2024Q4, suggesting that the company's bottom line is heavily influenced by non-operating items and the timing of project-based revenue recognition.
The reliance on percentage-of-completion accounting warrants caution, as management's estimates of costs to complete can significantly impact reported earnings. Investors should investigate whether these swings in net income are driven by genuine operational performance or by adjustments to contract assets that may not reflect actual cash generation.
Quick answers to the most common questions about buying WXM stock.
For fiscal year 2025, WF International Limited Ordinary Shares (WXM) reported total revenue of $13.4M. This represents a 12.5% decline compared to $15.3M in 2021.
WF International Limited Ordinary Shares (WXM) reported a net loss of $3.3M for the fiscal year ending 2025.
WF International Limited Ordinary Shares (WXM) reported an operating income of $-2.9M, resulting in an operating profit margin of -21.4%. This margin reflects the operational efficiency of the business before interest and taxes.
WF International Limited Ordinary Shares (WXM) generated $1.2M in gross profit for the year, representing a gross profit margin of 8.8%. This demonstrates the company's core pricing power and production efficiency.