Hunan Xiangjia Animal Husbandry Co Ltd

The company's capital structure is characterized by a debt-to-equity ratio of 0.92, indicating a moderate reliance on debt financing. Its liquidity position is assessed as medium, with a current ratio of 1.32, suggesting the company has sufficient short-term assets to cover its short-term liabilities, but not with a large buffer. The price-to-book ratio of 1.61 and the price-to-tangible-book ratio of 1.61 indicate that the company's market value is slightly above its book value, but not significantly so.

Profitability metrics show a return on equity (ROE) of 2.07% and a return on assets (ROA) of 0.89%, both of which are below the industry median for food processing companies. The company's net income of 34,012,310 CNY and operating income of 40,292,610 CNY reflect modest profitability, with a gross profit of 149,620,670 CNY. These figures suggest the company is generating revenue but is not converting it into high returns relative to its asset base.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the company's exposure to regional economic fluctuations and regulatory changes. The absence of segment or geographic breakdown in the financial data limits the ability to assess the company's risk profile in detail.

The company's growth trajectory is uncertain, with no disclosed revenue growth or decline in the most recent financial period. The capital expenditure of -160,155,940 CNY indicates a net outflow from investing activities, which could signal a reduction in investment in long-term assets. The outlook for the current fiscal year and the next fiscal year is not explicitly provided, but the company's liquidity position and debt levels suggest a cautious approach to growth.

The company's risk assessment highlights a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt indicates that the company's cash reserves are insufficient to cover its long-term obligations. This could lead to increased financial stress if the company is unable to generate sufficient cash flow or secure additional financing. The dilution risk is low, as the number of shares outstanding has not changed between basic and diluted shares.

Recent events and filings have not been disclosed in the available data, so there is no information on recent strategic moves, management changes, or regulatory actions that could impact the company's performance. The absence of recent events makes it difficult to assess the company's current strategic direction and operational health.

Hunan Xiangjia Animal Husbandry Co Ltd (002982.SZ) has been formally classified within the Food Processing activity and the Consumer Non-Cyclicals economic sector. This taxonomy update provides a clearer structural definition of the company’s operational focus, aligning its market positioning with the broader consumer staples landscape. The risk profile for the company has also been established, with dilution risk assessed as low. This assessment suggests that the potential for existing shareholders to face significant equity dilution is currently minimal, offering a degree of stability regarding capital structure integrity. Conversely, liquidity risk has been categorized as medium. This indicates that while the company is not facing immediate distress, there are moderate considerations regarding the ease of trading its shares or accessing liquid capital, which investors should monitor alongside its operational metrics. These updates collectively refine the analytical framework for Hunan Xiangjia, moving from undefined fields to specific risk and sector classifications. The combination of low dilution risk and a clear sector identity in Consumer Non-Cyclicals helps contextualize the company’s investment characteristics within the food processing industry. [doc:002982.sz-ha-financials]

Revenue grew at a 10.4% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

Cash conversion ratio of 2.82 exceeds the 75th percentile of the Food Processing cohort, indicating superior cash generation.

The company returned to profitability in FY2025 with net income of 98.1 million CNY, reversing the prior year loss.

Free cash flow improved significantly in FY2025, narrowing the deficit to 149.7 million CNY from 430.9 million CNY previously.

Dilution risk is assessed as low, suggesting current capital structure stability without immediate equity issuance threats.

Credit risk is flagged as high, signaling significant potential for default or financial distress given current leverage levels.

Debt-to-equity ratio of 0.92 places the company in the bottom quartile of its cohort, indicating excessive leverage.

Operating margin of 4.25% trails the Food Processing cohort median of 5.74%, reflecting weaker operational efficiency.

Revenue ¥4.20B, +8,1% YoY; Operating income +190,3% YoY.

• ▍Revenue ¥4.20B, +8,1% YoY
• ▍Operating income +190,3% YoY
• ▍Net income +166,7% YoY
• ▍Free cash flow +65,3% YoY
• ▍Net margin 2.3%

Revenue ¥3.89B, +1,8% YoY; Operating income −208,8% YoY.

• ▍Revenue ¥3.89B, +1,8% YoY
• ▍Operating income −208,8% YoY
• ▍Net income −239,0% YoY
• ▍Free cash flow −108,2% YoY
• ▍Net margin -3.8%

Revenue ¥3.82B, +27,2% YoY; Operating income +285,0% YoY.

• ▍Revenue ¥3.82B, +27,2% YoY
• ▍Operating income +285,0% YoY
• ▍Net income +312,3% YoY
• ▍Free cash flow +61,5% YoY
• ▍Net margin 2.8%

Revenue ¥3.01B; Operating income ¥32.3M.

• ▍Revenue ¥3.01B
• ▍Operating income ¥32.3M
• ▍Net margin 0.9%