Liaoning Energy Industry Co Ltd

Liaoning Energy Industry Co Ltd maintains a capital structure characterized by significant leverage and constrained liquidity. The company reports total assets of CNY 13.24 billion against total liabilities of CNY 7.82 billion, resulting in total equity of CNY 5.41 billion. Long-term debt stands at CNY 4.30 billion, yielding a debt-to-equity ratio of 0.8. Liquidity is flagged as medium risk, supported by a current ratio of 0.86, which indicates that current liabilities exceed current assets. The balance sheet reflects negative net cash after subtracting total debt, highlighting reliance on external financing or operational cash generation to service obligations.

Profitability metrics reveal a company under pressure, with negative operating income of CNY -253.17 million and net income of CNY -273.96 million for the latest period. Despite the losses, the company generates positive operating cash flow of CNY 852.56 million, which supports a free cash flow of CNY 145.82 million after capital expenditures of CNY 133.77 million. Return on equity is 3.95% and return on assets is 1.62%, figures that suggest modest efficiency in asset utilization despite the current earnings deficit. The price-to-book ratio of 0.73 indicates the market values the company below its book value, reflecting concerns over profitability and asset quality.

The company’s revenue base is substantial, with total revenue reaching CNY 4.69 billion. Gross profit is reported at CNY 392.29 million, implying a gross margin of approximately 8.4%. Without specific segment or geographic breakdowns in the available data, the revenue concentration cannot be precisely quantified, but the scale of operations suggests a dominant position within its specific coal mining or processing niche in the Liaoning region. The lack of detailed segment data limits the ability to assess diversification benefits or specific regional exposures.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The current financial snapshot shows a disconnect between top-line revenue generation and bottom-line profitability, as evidenced by the negative net income against positive revenue. The company’s ability to sustain operations relies heavily on the positive operating cash flow, which currently exceeds the net loss, providing a buffer against immediate solvency issues. However, the negative operating income signals structural cost pressures or pricing challenges within the coal sector.

Risk factors are primarily centered on liquidity and leverage. The medium liquidity risk is underscored by the current ratio below 1.0 and the negative net cash position. Dilution risk is assessed as low, with basic and diluted shares outstanding identical at 1.32 billion, indicating no immediate options or convertible securities impacting share count. Key flags highlight the negative net cash position, which requires monitoring of debt maturity profiles and refinancing capabilities. The absence of specific geopolitical or regulatory risk scores in the narrative data limits further qualitative risk assessment.

Recent events and observations are not detailed in the provided filing, news, or transcript sections. The competitor context lists major integrated oil and gas companies such as Chevron, Shell, and BP, but provides no comparative metrics, suggesting these are broad industry peers rather than direct operational competitors in the coal segment. The lack of recent event data implies a stable but uneventful disclosure environment, with the primary focus remaining on the fundamental financial health and cash flow generation capabilities of the firm.

Operating margin of 8.9% significantly exceeds the 2.8% median for the coal cohort, indicating superior profitability.

Cash conversion of 8.75 is best-in-class compared to the 0.24 median, demonstrating exceptional cash generation efficiency.

Net margin of 3.93% is well above the 0.97% industry median, highlighting strong bottom-line performance relative to competitors.

Revenue grew 18.3% year-over-year in the latest period, showing strong top-line expansion momentum.

High credit risk flag indicates significant potential for financial distress or default issues for the company.

Debt-to-equity ratio of 0.8 is four times the 0.2 cohort median, signaling excessive leverage relative to peers.

Medium liquidity risk flag suggests potential challenges in meeting short-term financial obligations promptly.

Revenue ¥5.91B; Operating income ¥225.6M.

• ▍Revenue ¥5.91B
• ▍Operating income ¥225.6M
• ▍Net margin 0.5%