Aureus Greenway Holdings Reports Q3 2024 Revenue Decline and Net Loss

Aureus Greenway Holdings Inc. reported a total revenue of $436,899 for the third quarter of 2024, a slight decrease of 1% from $439,474 in the same period of 2023. For the nine months ending September 30, 2024, the company generated $2,639,071 in revenue, down 11% from $2,952,936 in the prior year. The decline in revenue was primarily attributed to a 16% drop in one-time green fees, which accounted for 66% of total revenue, reflecting a decrease in the number of rounds played due to adverse weather conditions. Despite this, revenue from annual membership dues increased by 27%, indicating a growing customer base willing to commit to longer-term memberships.

In terms of profitability, Aureus Greenway reported a net loss of $205,612 for the third quarter of 2024, compared to a loss of $229,216 in the same quarter of 2023. For the nine-month period, the company recorded a net income of $54,671, a significant decline from $709,328 in the previous year. This decrease in profitability was largely due to increased operating costs, which rose by 9% to $2,533,469, driven by higher golf operating costs and general administrative expenses, including additional professional fees related to the company's planned initial public offering (IPO).

Operationally, the company has made strategic moves to enhance its market position, including a focus on customer retention and engagement through improved facilities and marketing efforts. As of September 30, 2024, Aureus operated two golf clubs in Florida, with plans to expand its portfolio through potential acquisitions. The company has also seen an increase in ancillary revenue, which rose by 9% due to heightened demand for rental services and events.

Aureus Greenway's financial position showed a working capital deficiency of $2,072,657 as of September 30, 2024, an increase from $1,672,625 at the end of 2023. The company’s total liabilities rose to $4,060,284, up from $3,502,533, largely due to increased amounts due to related parties, which grew by 46% to $2,416,320. The company continues to manage its liquidity by maintaining relationships with financial institutions and actively monitoring its accounts receivable.

Looking ahead, Aureus Greenway Holdings Inc. anticipates that its ongoing efforts to modernize its facilities and enhance customer experiences will drive revenue growth. The company is also preparing for its IPO, which it hopes will provide additional capital to support its strategic initiatives. However, management acknowledges the risks associated with market conditions, competition, and operational challenges that could impact future performance.