Tus Environmental Science and Technology Development Co Ltd

The company's capital structure is characterized by a high debt-to-equity ratio of 1.76, indicating a significant reliance on debt financing. Its liquidity position is assessed as medium, with a current ratio of 0.75, suggesting limited short-term liquidity to cover immediate liabilities. The price-to-book ratio of 0.59 implies that the company's market value is trading below its book value, potentially signaling undervaluation or financial distress.

Profitability metrics show a negative return on equity of -2.44% and a negative return on assets of -0.58%, indicating that the company is not generating returns for its shareholders or effectively utilizing its assets. The operating margin is negative, with an operating loss of 42.95 million CNY, and the net loss of 134.51 million CNY further underscores the company's financial challenges. These figures fall below the typical performance of the Environmental Services & Equipment industry, which generally expects positive returns and healthy margins.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the risk of revenue volatility and exposure to regional economic downturns. The absence of segment-specific data limits the ability to assess the performance of different parts of the business.

The company's growth trajectory is uncertain, with no disclosed revenue growth in the current fiscal year. The operating cash flow of 334.42 million CNY provides some liquidity, but the capital expenditure of -78.03 million CNY indicates ongoing investment in infrastructure or operations. The negative net income and operating income suggest that the company is not currently in a position to sustain growth without external financing or operational improvements.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's net cash position is negative after subtracting total debt, which could limit its ability to meet short-term obligations without additional financing. The low dilution risk is attributed to the absence of significant dilutive events or instruments, such as convertible securities or stock options, that could increase the number of shares outstanding.

Recent events, as reflected in the financial data, include a net loss of 134.51 million CNY and a negative return on equity. The company's ESG scores indicate a low social and governance performance, with a social pillar score of 16.10 and a governance pillar score of 19.31. The ESG controversies score of 100.00 suggests that the company has not been involved in any recent ESG-related controversies.

Tus Environmental Science and Technology Development Co Ltd (000826.SZ) has undergone a significant structural update in its corporate classification, with its economic sector now formally identified as Industrials and its primary activity categorized as Industrial Services. This reclassification represents a medium-severity change in the company's profile, establishing a clearer framework for understanding its operational focus within the broader industrial landscape. Concurrently, the company’s risk assessment profile has been initialized with specific metrics. Dilution risk is now assessed as low, indicating a stable capital structure with minimal immediate threat of share value erosion from new issuances. This assessment provides a baseline for evaluating the company's equity stability moving forward. In contrast, liquidity risk has been classified as medium, suggesting that while the company maintains operational viability, there may be moderate constraints or variability in its short-term cash flow management or market trading depth. This distinction between low dilution and medium liquidity risk offers investors a nuanced view of the company's financial health, highlighting areas of stability alongside potential liquidity considerations. These updates occur against a backdrop of limited external coverage, with the company currently tracked by three analysts and holding no index memberships or disclosed top holders. The establishment of these foundational risk and taxonomy metrics provides a more defined starting point for future financial analysis and comparison within the Industrials sector.

Free cash flow improved by 7.3% year-over-year in 2021, indicating a slight stabilization in cash generation despite ongoing losses.

Net income loss narrowed by 1.0% year-over-year in 2021, suggesting a marginal improvement in bottom-line performance compared to the prior year.

Long-term debt decreased from 2017 to 2020, showing a historical trend of deleveraging before a slight increase in 2021.

Capex to revenue ratio is above the cohort median, indicating the company is investing more heavily in future growth assets than peers.

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

The company carries high credit risk, indicating significant concerns regarding its ability to meet financial obligations and service debt.

Debt-to-equity ratio of 1.76 is in the bottom quartile of the cohort, reflecting excessive leverage compared to industry peers.

Cash conversion ratio of -2.49 is in the bottom quartile, highlighting poor ability to convert earnings into actual cash flow.

Revenue ¥975.4M, −12,5% YoY; Operating income −115,6% YoY.

• ▍Revenue ¥975.4M, −12,5% YoY
• ▍Operating income −115,6% YoY
• ▍Net income −36,6% YoY
• ▍Net margin -18.6%

Revenue ¥1.35B, −13,0% YoY; Operating income −20,7% YoY.

• ▍Revenue ¥1.35B, −13,0% YoY
• ▍Operating income −20,7% YoY
• ▍Net income −20,5% YoY
• ▍Net margin -173.7%

Revenue ¥1.07B, −10,6% YoY; Operating income +81,5% YoY.

• ▍Revenue ¥1.07B, −10,6% YoY
• ▍Operating income +81,5% YoY
• ▍Net income +82,1% YoY
• ▍Net margin -14.9%

Revenue ¥1.12B; Operating income -¥44.9M.

• ▍Revenue ¥1.12B
• ▍Operating income -¥44.9M
• ▍Net margin -11.9%

Revenue ¥1.55B; Operating income -¥1.48B.

• ▍Revenue ¥1.55B
• ▍Operating income -¥1.48B
• ▍Net margin -125.4%

Revenue ¥1.20B; Operating income -¥487.8M.

• ▍Revenue ¥1.20B
• ▍Operating income -¥487.8M
• ▍Net margin -74.5%

Revenue ¥1.27B; Operating income -¥43.0M.

• ▍Revenue ¥1.27B
• ▍Operating income -¥43.0M
• ▍Net margin -10.6%

Revenue ¥4.65B, −11,3% YoY; Operating income −6,3% YoY.

• ▍Revenue ¥4.65B, −11,3% YoY
• ▍Operating income −6,3% YoY
• ▍Net income +1,0% YoY
• ▍Free cash flow +7,3% YoY
• ▍Net margin -65.0%

Revenue ¥5.24B, −2,9% YoY; Operating income −84,5% YoY.

• ▍Revenue ¥5.24B, −2,9% YoY
• ▍Operating income −84,5% YoY
• ▍Net income −94,5% YoY
• ▍Free cash flow −68,2% YoY
• ▍Net margin -58.3%

Revenue ¥5.40B, −23,9% YoY; Operating income −123,9% YoY.

• ▍Revenue ¥5.40B, −23,9% YoY
• ▍Operating income −123,9% YoY
• ▍Net income −63,1% YoY
• ▍Free cash flow −53,8% YoY
• ▍Net margin -29.1%

Revenue ¥7.10B, −16,3% YoY; Operating income +85,0% YoY.

• ▍Revenue ¥7.10B, −16,3% YoY
• ▍Operating income +85,0% YoY
• ▍Net income +78,8% YoY
• ▍Free cash flow +81,1% YoY
• ▍Net margin -13.6%

Revenue ¥8.48B; Operating income -¥4.40B.

• ▍Revenue ¥8.48B
• ▍Operating income -¥4.40B
• ▍Net margin -53.5%