Shandong Hongyu Precision Machinery Co Ltd

The company maintains a strong liquidity position, with a current ratio of 3.69, indicating that it holds significantly more current assets than current liabilities. It has no long-term debt, and its total liabilities amount to 159,206,910 CNY, compared to total equity of 586,675,340 CNY, resulting in a debt-to-equity ratio of 0. The operating cash flow of 7,931,300 CNY supports its liquidity, while capital expenditures of -6,638,920 CNY suggest active reinvestment in the business.

Profitability metrics show a return on equity (ROE) of 0.0067 and a return on assets (ROA) of 0.0053, both below the typical thresholds for high-performing industrial firms. The gross profit margin is 19.15% (15,328,620 CNY / 80,080,690 CNY), and the operating margin is 5.12% (4,095,890 CNY / 80,080,690 CNY), which are in line with industry norms for heavy machinery and vehicles.

The company operates as a single business segment, with no disclosed geographic diversification in the latest financial data. All revenue is attributed to domestic operations, indicating a high concentration of risk in the Chinese market. There is no information on revenue by product line or geographic region, limiting visibility into diversification strategies.

The company reported revenue of 80,080,690 CNY in the latest period, with an analyst-estimated revenue of 283,498,000 CNY for the trailing twelve months. The discrepancy suggests either a seasonal fluctuation or a potential misalignment in reporting periods. No forward-looking guidance is available, and the growth trajectory remains unclear without additional data.

Risk factors are minimal, with no immediate liquidity or dilution concerns identified. The company has no long-term debt, and the number of shares outstanding remains unchanged between basic and diluted shares, indicating no dilution pressure. However, the lack of debt also limits financial leverage, which could constrain growth in capital-intensive industries.

No recent filings or transcripts were identified in the available data, and the company does not appear to have issued any material disclosures in the last reporting period. This lack of recent communication may limit visibility into strategic initiatives or operational changes.

Shandong Hongyu Precision Machinery Co Ltd (002890.SZ) has been formally classified within the Industrials economic sector, specifically under the Industrial Goods activity category. This taxonomic update, marked with medium severity, establishes the company’s operational identity within the broader industrial landscape, providing a clearer framework for sector-specific analysis. Concurrently, the firm’s risk profile has been initialized with low ratings for both dilution and liquidity risks. These assessments, classified as low severity, indicate that the company currently faces minimal threat from share dilution and maintains adequate liquidity conditions, offering a stable baseline for financial health evaluation. The establishment of these fundamental metrics—sector classification and risk parameters—serves to complete the initial data spine for Shandong Hongyu Precision. With no prior values recorded for these fields, the new data points replace null entries, enabling more precise comparative analysis against peers in the Industrial Goods segment. This structural clarification matters for investors and analysts by reducing ambiguity regarding the company’s market positioning and financial stability. By confirming low risk levels in key areas and defining its industrial role, the updated profile supports more informed decision-making, even in the absence of current analyst coverage or index membership data.

The company maintains zero long-term debt, providing a debt-free balance sheet that significantly reduces financial risk.

Free cash flow surged 361.2% year-over-year, demonstrating a substantial improvement in cash generation capabilities.

Net margin of 4.9% slightly exceeds the heavy machinery cohort median of 4.9%, indicating competitive profitability.

Cash conversion ratio of 2.02 is nearly double the cohort median, highlighting superior efficiency in converting earnings to cash.

Net income grew at a 13.0% CAGR over four years, showing consistent long-term earnings expansion despite recent volatility.

Return on equity of 0.67% falls in the bottom quartile of the heavy machinery cohort, indicating poor capital efficiency.

Revenue ¥299.7M, −6,9% YoY; Operating income −44,3% YoY.

• ▍Revenue ¥299.7M, −6,9% YoY
• ▍Operating income −44,3% YoY
• ▍Net income −38,6% YoY
• ▍Free cash flow −19,7% YoY
• ▍Net margin 3.5%