Shaanxi International Trust Co Ltd

Shaanxi International Trust Co Ltd maintains a conservative capital structure with negligible long-term debt of 1.54 million CNY against total equity of 18.94 billion CNY, resulting in a debt-to-equity ratio of 0.0. The company trades at a price-to-book ratio of 0.78 and a price-to-earnings ratio of 10.71, indicating a valuation discount to book value. Despite a current ratio not explicitly detailed, the risk assessment flags medium liquidity risk, noting that net cash is negative after subtracting total debt, which suggests potential short-term funding constraints despite the low leverage profile.

Profitability metrics show a return on equity of 7.29% and a return on assets of 4.69%. The company generated net income of 1.43 billion CNY on revenue of 2.95 billion CNY, yielding a net margin of approximately 48.5%. Operating income stands at 1.91 billion CNY, reflecting strong operational efficiency relative to revenue. However, operating cash flow is negative at -879.49 million CNY, while free cash flow is positive at 757.42 million CNY, driven by capital expenditures of -220.10 million CNY. This divergence between accrual-based earnings and operating cash flow warrants monitoring for cash conversion quality.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s activity is broadly classified under Capital Markets, suggesting a diversified trust business model typical of Chinese non-bank financial institutions, but specific product mix details are absent from the current dataset.

Historical growth trends are not available in the input data, limiting the ability to assess revenue trajectory or earnings momentum over the past five years. The current financial snapshot provides a static view of performance, with no quarterly or annual historical series to evaluate consistency or acceleration in revenue or net income.

Risk factors include medium liquidity risk and low dilution risk. The key flag indicates negative net cash after debt subtraction, which may impact the company’s ability to meet short-term obligations without external financing. The low dilution risk suggests that share count stability is likely, with basic and diluted shares outstanding both at 5.11 billion.

Recent observations highlight an ESG score of 24.27 with a grade of D+, indicating significant room for improvement in environmental, social, and governance practices. The environment pillar scores 42.22, while the social and governance pillars score 14.95 and 26.75 respectively, suggesting weaknesses in social responsibility and corporate governance structures. The ESG controversies score of 100 indicates no major recent controversies, which is a positive signal amidst the lower overall ESG rating.

The company maintains a zero debt-to-equity ratio, well above the 75th percentile of the cohort, suggesting minimal leverage risk.

Free cash flow increased by 33.1% year-over-year to 757 million CNY, demonstrating improved cash generation capabilities.

Revenue declined by 32.9% year-over-year to 1.89 billion CNY, signaling a significant contraction in top-line growth.

Cash conversion ratio of -0.71 places the company in the bottom quartile of its peer cohort.

The company faces a medium level of liquidity risk, which could constrain operational flexibility or financial stability.

Revenue ¥1.93B, +2,0% YoY; Operating income +14,3% YoY.

• ▍Revenue ¥1.93B, +2,0% YoY
• ▍Operating income +14,3% YoY
• ▍Net income +14,4% YoY
• ▍Free cash flow +17,5% YoY
• ▍Net margin 43.4%