COFCO Capital Holdings Co Ltd

COFCO Capital Holdings maintains a capital structure characterized by high leverage typical of the insurance sector, with total liabilities of CNY 150.5 billion against total assets of CNY 173.2 billion. The debt-to-equity ratio stands at 0.31, driven by long-term debt of CNY 7.0 billion. Liquidity is assessed as medium, supported by a current ratio of 1.87, indicating sufficient short-term assets to cover immediate obligations. However, the company reports negative net cash after subtracting total debt, a key flag in its risk assessment. Operating cash flow is robust at CNY 18.9 billion, significantly exceeding free cash flow of CNY 1.3 billion due to capital expenditures of CNY 0.14 billion.

Profitability metrics indicate modest returns on capital. The return on equity (ROE) is 4.98%, while the return on assets (ROA) is 0.65%. The company generated net income of CNY 1.13 billion on revenue of CNY 11.16 billion, resulting in a net margin of approximately 10.1%. Operating income was CNY 2.41 billion, suggesting effective control over operating expenses relative to gross profit of CNY 3.14 billion. Without cohort median data for direct comparison, these returns must be evaluated against general insurance industry benchmarks, where ROE often varies significantly based on investment income and underwriting cycles.