Organic Tea Cosmetics Holdings Co Ltd

The company's capital structure is characterized by a low debt-to-equity ratio of 0.02, indicating a conservative approach to leverage. With total equity of 1,428,561,290 CNY and total liabilities of 452,858,090 CNY, the firm maintains a strong equity base. Liquidity is robust, as evidenced by a current ratio of 3.39 and cash and equivalents of 227,452,580 CNY, which provides a buffer against short-term obligations.

Profitability metrics are concerning, with a negative return on equity of -6.05% and a return on assets of -4.59%. These figures suggest the company is not generating returns that meet the cost of capital or asset efficiency benchmarks. The operating loss of 53,723,960 CNY and net loss of 86,401,870 CNY further underscore the financial challenges.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no geographic diversification provided in the available data. This lack of diversification increases exposure to market-specific risks and limits the ability to offset performance shortfalls in one area with gains in another.

Growth trajectory appears negative, with the company reporting a net loss and negative operating cash flow of -41,655,670 CNY. Analyst estimates for revenue and EPS are significantly higher than the reported figures, suggesting a potential disconnect between market expectations and actual performance. The negative free cash flow of -85,092,660 CNY indicates the company is not generating sufficient cash to fund operations or growth without external financing.

Risk factors include liquidity and dilution risks, both of which are currently assessed as low. However, the negative operating and free cash flows suggest potential future liquidity pressures. No immediate filing-based dilution flags were detected, but the company's financial performance could necessitate equity issuance in the future.

Recent events include the latest financial filing, which shows a significant revenue figure of 240,030,000,000 CNY and an EPS of 7,740.00 CNY. These figures are notably higher than the reported revenue of 233,312,540 CNY, indicating a potential discrepancy or a different reporting period.

Free cash flow surged 169.6% year-over-year, indicating a significant improvement in the company's cash generation capabilities.

Operating income improved by 17.6% year-over-year, suggesting better core operational efficiency despite revenue declines.

The debt-to-equity ratio of 0.02 is well below the cohort median of 0.13, reflecting a conservative capital structure.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity value erosion.

Liquidity risk is rated low, suggesting the company maintains sufficient short-term financial flexibility to meet obligations.

The company posted a net loss of 251 million CNY in 2019, highlighting persistent profitability challenges.

Cash conversion of 0.48 is below the cohort median of 0.97, reflecting weaker cash generation relative to earnings.

Revenue ¥234.0M, +13,2% YoY; Operating income +20,4% YoY.

• ▍Revenue ¥234.0M, +13,2% YoY
• ▍Operating income +20,4% YoY
• ▍Net income −57,0% YoY
• ▍Free cash flow −56,8% YoY
• ▍Net margin -74.4%

Revenue ¥157.3M, +13,1% YoY; Operating income −18,5% YoY.

• ▍Revenue ¥157.3M, +13,1% YoY
• ▍Operating income −18,5% YoY
• ▍Net income −12,8% YoY
• ▍Free cash flow −12,3% YoY
• ▍Net margin -30.0%

Revenue ¥254.0M, +8,9% YoY; Operating income +101,2% YoY.

• ▍Revenue ¥254.0M, +8,9% YoY
• ▍Operating income +101,2% YoY
• ▍Net income +149,8% YoY
• ▍Free cash flow +151,6% YoY
• ▍Net margin 16.9%

Revenue ¥270.8M; Operating income -¥133.4M.

• ▍Revenue ¥270.8M
• ▍Operating income -¥133.4M
• ▍Net margin -52.2%

Revenue ¥206.8M; Operating income -¥119.8M.

• ▍Revenue ¥206.8M
• ▍Operating income -¥119.8M
• ▍Net margin -53.6%

Revenue ¥139.1M; Operating income -¥41.2M.

• ▍Revenue ¥139.1M
• ▍Operating income -¥41.2M
• ▍Net margin -30.1%

Revenue ¥233.3M; Operating income -¥53.7M.

• ▍Revenue ¥233.3M
• ▍Operating income -¥53.7M
• ▍Net margin -37.0%

Revenue ¥870.7M, −9,8% YoY; Operating income +27,0% YoY.

• ▍Revenue ¥870.7M, −9,8% YoY
• ▍Operating income +27,0% YoY
• ▍Net income +42,1% YoY
• ▍Free cash flow +40,5% YoY
• ▍Net margin -28.8%

Revenue ¥965.4M, −18,0% YoY; Operating income −20,6% YoY.

• ▍Revenue ¥965.4M, −18,0% YoY
• ▍Operating income −20,6% YoY
• ▍Net income +12,4% YoY
• ▍Free cash flow +10,5% YoY
• ▍Net margin -44.9%

Revenue ¥1.18B, −22,8% YoY; Operating income −449,8% YoY.

• ▍Revenue ¥1.18B, −22,8% YoY
• ▍Operating income −449,8% YoY
• ▍Net income −1 210,7% YoY
• ▍Free cash flow −805,4% YoY
• ▍Net margin -42.1%