ChangYuan Technology Group Ltd

ChangYuan Technology Group Ltd maintains a capital structure characterized by significant leverage and tight liquidity. The company reports total assets of 13.28 billion CNY against total liabilities of 10.48 billion CNY, resulting in total equity of 2.80 billion CNY. The debt-to-equity ratio stands at 1.23, indicating substantial reliance on debt financing. Liquidity is constrained, with a current ratio of 0.9, suggesting potential short-term coverage challenges. The firm holds 3.44 billion CNY in long-term debt. While operating cash flow is positive at 807 million CNY, free cash flow is negative at -1.26 billion CNY, driven by capital expenditures of 133 million CNY. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt.

Profitability metrics indicate severe operational distress. The company reports a net loss of 1.14 billion CNY on revenue of 7.90 billion CNY. Operating income is negative at -1.15 billion CNY, reflecting an operating margin of approximately -14.6%. Return on equity is -38.78%, and return on assets is -8.17%, signaling inefficient use of capital and asset base. Gross profit is 2.21 billion CNY, implying a gross margin of roughly 28.0%, which is insufficient to cover operating expenses and interest costs. The negative EV/EBITDA of -17.12 underscores the lack of earnings before interest, taxes, depreciation, and amortization.

Revenue grew 8.8% annually over four years, demonstrating consistent top-line expansion despite recent volatility in profitability.

Long-term debt decreased to 3.4 billion CNY in the latest period, indicating active deleveraging efforts by management.

Capital expenditure relative to revenue is above the cohort median, suggesting continued investment in future growth drivers.

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

Gross profit remained robust at 2.2 billion CNY in the latest period, maintaining a buffer against operating losses.

The company posted a net loss of 1.14 billion CNY in the latest period, signaling severe profitability challenges.

Credit risk is flagged as high, raising significant concerns about the company's ability to meet its financial obligations.

Free cash flow turned negative to -1.26 billion CNY, indicating poor cash generation capabilities in the latest period.

The debt-to-equity ratio of 1.23 is significantly higher than the cohort median of 0.4, indicating high leverage.

Revenue ¥7.61B, +25,6% YoY; Operating income +222,7% YoY.

• ▍Revenue ¥7.61B, +25,6% YoY
• ▍Operating income +222,7% YoY
• ▍Net income +158,8% YoY
• ▍Free cash flow +160,9% YoY
• ▍Net margin 8.8%

Revenue ¥6.06B; Operating income -¥1.02B.

• ▍Revenue ¥6.06B
• ▍Operating income -¥1.02B
• ▍Net margin -18.9%