Red Star Macalline Group Corp Ltd

Red Star Macalline exhibits a severely distressed capital structure, characterized by a current ratio of 0.22 and a debt-to-equity ratio of 2.04. The company holds total liabilities of 64.8 billion CNY against total equity of 22.5 billion CNY, with long-term debt constituting 45.9 billion CNY. Liquidity is constrained, as indicated by the medium liquidity risk flag and negative net cash position after subtracting total debt. The market capitalization of 719 million CNY implies a price-to-book ratio of 0.03, suggesting the market values the firm at a significant discount to its tangible book value.

Profitability metrics are deeply negative, with a return on equity of -13.88% and a return on assets of -3.58%. The company reported an operating income of -27.8 billion CNY and a net income of -23.7 billion CNY, despite generating gross profit of 3.9 billion CNY on revenue of 6.6 billion CNY. This divergence indicates substantial operating losses or non-operating charges eroding the gross margin. Free cash flow is negative at -26.9 billion CNY, driven by capital expenditures of -267 million CNY and operating cash flow of 816 million CNY, highlighting a severe cash burn relative to earnings.

Segment and geographic data are absent from the provided input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s revenue base is derived from its classified industry of Real Estate Management & Development, but specific product or service mix details are not disclosed in the available data.

Growth trajectory analysis is limited by the absence of historical period data. The latest actual revenue reported in IR observations is 7.8 billion CNY, which contrasts with the financial snapshot revenue of 6.6 billion CNY, suggesting potential volatility or timing differences in reporting periods. Without multi-year historical data, long-term growth trends cannot be quantified.

Risk factors include medium liquidity risk and low dilution risk. Key flags indicate that net cash is negative after subtracting total debt, posing a solvency concern. The governance pillar of the ESG score is notably low at 9.46, while the social pillar is higher at 70.31, suggesting potential governance-related risks that may impact long-term stability.

Recent observations include an ESG grade of C+ with a total score of 44.68. The environment pillar scores 58.16, and the ESG controversies score is 100, indicating fewer controversies. Analyst estimates reflect a last actual revenue of 7.8 billion CNY, providing a benchmark for recent performance against the snapshot data.

The company maintains a low dilution risk level, suggesting limited immediate threat to existing shareholder equity value from share issuance.

Credit risk is assessed as low, indicating the company's current debt obligations may remain manageable despite significant financial losses.

Capex to revenue ratio is above the cohort median, suggesting the company continues to invest in its operational infrastructure.

The debt-to-equity ratio stands at 2.04, significantly higher than the cohort median of 0.4, indicating high leverage.

Revenue ¥6.58B, −15,8% YoY; Operating income −718,9% YoY.

• ▍Revenue ¥6.58B, −15,8% YoY
• ▍Operating income −718,9% YoY
• ▍Net income −695,1% YoY
• ▍Free cash flow −447,2% YoY
• ▍Net margin -360.4%

Revenue ¥7.82B, −32,1% YoY; Operating income −82,1% YoY.

• ▍Revenue ¥7.82B, −32,1% YoY
• ▍Operating income −82,1% YoY
• ▍Net income −34,6% YoY
• ▍Free cash flow −13,1% YoY
• ▍Net margin -38.1%

Revenue ¥11.51B, −18,6% YoY; Operating income −230,9% YoY.

• ▍Revenue ¥11.51B, −18,6% YoY
• ▍Operating income −230,9% YoY
• ▍Net income −496,8% YoY
• ▍Free cash flow −68,0% YoY
• ▍Net margin -19.2%

Revenue ¥14.14B, −8,9% YoY; Operating income −50,2% YoY.

• ▍Revenue ¥14.14B, −8,9% YoY
• ▍Operating income −50,2% YoY
• ▍Net income −72,7% YoY
• ▍Free cash flow −28,7% YoY
• ▍Net margin 4.0%

Revenue ¥15.51B; Operating income ¥2.86B.

• ▍Revenue ¥15.51B
• ▍Operating income ¥2.86B
• ▍Net margin 13.2%