Beijing Sojo Electric Co Ltd

Beijing Sojo Electric Co Ltd has a debt-to-equity ratio of 1.42, indicating a moderate reliance on debt financing, which is above the median for its industry. The company's liquidity is assessed as medium, with a current ratio of 1.15, suggesting it has just enough current assets to cover its short-term liabilities. Free cash flow stands at 44.5 million CNY, but operating cash flow is only 5.3 million CNY, indicating limited cash generation from operations. Profitability metrics show a return on equity (ROE) of 10.21% and a return on assets (ROA) of 2.37%. ROE is above the industry median, but ROA is below, suggesting that the company is generating reasonable returns for shareholders but is less efficient in utilizing its assets compared to peers. Gross profit of 730 million CNY represents 15.1% of revenue, which is in line with industry norms. The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic and regulatory risks. No material revenue is attributed to international markets, and the company does not report segment-specific performance metrics. Looking ahead, the company's revenue is expected to grow, though the exact rate is not specified. Capital expenditures were negative at -158.9 million CNY, indicating asset disposals or reduced investment in new projects. This may signal a strategic shift or financial constraints. The company's operating income of 177 million CNY and net income of 185 million CNY suggest stable but modest profitability. The risk assessment highlights a key flag: net cash is negative after subtracting total debt, indicating a potential liquidity challenge. The company's dilution risk is assessed as low, with no significant dilution expected in the near term. However, the debt load of 2.58 billion CNY and total liabilities of 6.0 billion CNY represent a significant portion of total assets, which could constrain financial flexibility. Recent filings and transcripts do not indicate any material events or strategic shifts. The company's financial performance appears stable, but its reliance on debt and limited cash flow from operations suggest caution in assessing long-term financial health.