J.S. Corrugating Machinery Co Ltd

J.S. Corrugating Machinery Co Ltd maintains a capital structure characterized by moderate leverage and adequate short-term liquidity. The company reports total assets of CNY 13.3 billion against total liabilities of CNY 9.1 billion, resulting in a debt-to-equity ratio of 0.54. Long-term debt stands at CNY 2.25 billion, while total equity is CNY 4.17 billion. The current ratio is 1.3, indicating the ability to cover short-term obligations, though the risk assessment flags medium liquidity risk. The balance sheet shows negative net cash after subtracting total debt, highlighting a reliance on debt financing for operations and growth.

Profitability metrics indicate thin margins and low returns on capital. Revenue for the latest period is CNY 7.1 billion, with gross profit of CNY 1.36 billion, implying a gross margin of approximately 19.1%. Operating income is CNY 190 million, and net income is CNY 198 million, resulting in a net margin of roughly 2.8%. Return on equity is 4.73%, and return on assets is 1.48%. These returns are modest, reflecting the capital-intensive nature of industrial machinery manufacturing and competitive pricing pressures in the sector.