600818$7.7755

Zhonglu Co Ltd

Recreational ProductsVerified

Score breakdown

Valuation+11Sentiment+27Risk penalty-3Missing signals-3

Quality breakdown

Key fields100Profile38Conclusion93AI synthesis40Observations3

Zhonglu Co Ltd has a market capitalization of CNY 1.85 billion and an enterprise value to revenue ratio of 1.81, indicating a relatively low valuation compared to revenue [doc:HA-latest]. The company's liquidity position is characterized as medium risk, with negative net cash after subtracting total debt, suggesting potential short-term liquidity constraints [doc:HA-latest]. Profitability metrics show mixed results. The company's debt-to-equity ratio is 0.19, which is relatively low, indicating a conservative capital structure [doc:HA-latest]. However, operating cash flow is negative at CNY -61.87 million, and capital expenditure is CNY -16.88 million, suggesting ongoing investment in operations but also highlighting cash flow challenges [doc:HA-latest]. The company's revenue is distributed across four segments, with the Electric Bicycle segment likely being the largest contributor. The Housing Rental and Warehousing segment adds diversification, but the High-Altitude Wind Energy and Other segment appears to be a smaller, less significant part of the business [doc:HA-latest]. Looking ahead, the company's growth trajectory is uncertain. The current fiscal year outlook does not provide specific numeric deltas, but the negative operating cash flow and capital expenditure suggest ongoing investment and potential pressure on near-term growth [doc:HA-latest]. The company's risk assessment indicates low dilution risk, but the liquidity risk remains a concern [doc:HA-latest]. Recent filings and transcripts do not provide specific details on strategic initiatives or major events, but the company's financial snapshot suggests a focus on maintaining operations and managing debt [doc:HA-latest].

Profile

CompanyZhonglu Co Ltd

Ticker600818.SS

SectorConsumer Cyclicals

BusinessCyclical Consumer Products

Industry groupCyclical Consumer Products

IndustryRecreational Products

AI analysis

Business. Zhonglu Co Ltd produces and sells bicycles, power-assisted bicycles, electric balance bikes, and related products, operating through four segments including bicycle and baby carriage, electric bicycle, housing rental and warehousing, and high-altitude wind energy [doc:HA-latest].

Classification. Zhonglu Co Ltd is classified under industry Recreational Products within the Cyclical Consumer Products business sector, with a confidence level of 0.92 [doc:verified market data].

Key takeaways

The company has a low enterprise value to revenue ratio, suggesting undervaluation relative to revenue.
A conservative debt-to-equity ratio of 0.19 indicates a cautious capital structure.
Negative operating cash flow and capital expenditure highlight ongoing investment and cash flow challenges.
The company's liquidity risk is medium, with negative net cash after subtracting total debt.
The business is diversified across four segments, with the Electric Bicycle segment likely being the largest contributor.
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Financial snapshot

PeriodHA-latest

CurrencyCNY

Revenue$1.08B

Gross profit—

Operating income—

Net income—

R&D—

SG&A—

D&A—

SBC—

Operating cash flow-$61.9M

CapEx-$16.9M

Free cash flow—

Total assets—

Total liabilities$443.5M

Total equity$519.2M

Cash & equivalents—

Long-term debt$100.5M

Annual history (last 5)

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Quarterly history (last 4)

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Valuation

Market price$7.77

Market cap$1.85B

Enterprise value$1.95B

P/E—

Reported non-GAAP P/E—

EV/Revenue1.8

EV/Op income—

EV/OCF—

P/B—

P/Tangible book—

Tangible book—

Net cash-$100.5M

Current ratio—

Debt/Equity0.2

ROA—

ROE—

Cash conversion—

CapEx/Revenue-1.6%

SBC/Revenue—

Asset intensity—

Dilution ratio0.0%

Risk assessment

Dilution riskLow

Liquidity riskMedium

Net cash is negative after subtracting total debt.

Industry benchmarks

Activity: Recreational Products · cohort 1 companies

Metric600818Activity

Op margin—-0.8% medp25 -0.8% · p75 -0.8%

Net margin—-2.6% medp25 -2.6% · p75 -2.6%

Gross margin—24.3% medp25 17.6% · p75 36.7%

R&D / revenue—3.1% medp25 3.1% · p75 3.1%

CapEx / revenue-1.6%3.1% medp25 3.1% · p75 3.1%bottom quartile

Debt / equity19.0%111.1% medp25 111.1% · p75 111.1%bottom quartile

Source data

Underlying data the analysis-pipeline pulls and audits. Fetch timestamps + content hashes show when each source was last refreshed.

Company fundamentalsperiod FQ-7 · history via verified-market-data

no public URL

2026-05-04 14:16 UTC#92063c9c

Market quoteclose CNY 7.77 · shares 0.24B diluted

no public URL

2026-05-04 14:16 UTC#3ec2710e

Source: analysis-pipeline (hybrid)Generated: 2026-05-04 14:17 UTCJob: 7e7e70df