Qinchuan Machine Tool & Tool Group Share Co Ltd

The company's capital structure is characterized by a debt-to-equity ratio of 0.27, indicating a relatively conservative leverage position. However, the liquidity risk is assessed as medium, and the operating cash flow is negative at -17.97 million CNY, suggesting potential short-term cash flow constraints. The current ratio of 1.67 implies the company has sufficient current assets to cover its current liabilities, but the negative net cash position after subtracting total debt raises concerns about its liquidity flexibility.

Profitability metrics show a return on equity (ROE) of 0.37% and a return on assets (ROA) of 0.18%, both of which are below the typical thresholds for industrial machinery firms. The gross profit margin is 16.24% (168.96 million CNY on 1.04 billion CNY revenue), but the operating margin is only 2.83% (29.43 million CNY), indicating high operating costs relative to revenue. The net income margin is 0.17% (17.69 million CNY), which is exceptionally low for a company of this size and industry.

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 fluctuations and industry-specific downturns. The absence of segment or geographic breakdown in the financial data limits the ability to assess the company's risk profile in detail.

The company's growth trajectory is weak, with no significant revenue growth reported in the latest financial period. The operating cash flow is negative, and capital expenditures are high at -260.97 million CNY, suggesting a focus on maintaining or expanding production capacity rather than generating positive cash flow. Analysts have assigned a mean recommendation of 2.00, indicating a "hold" rating, with no strong buy or sell recommendations.

The risk assessment highlights liquidity as a medium concern, with a negative net cash position after subtracting total debt. The dilution risk is assessed as low, and no dilution sources are identified in the latest filings or transcripts. The company has not issued new shares recently, and there is no indication of a pending capital raise or share buyback program.

No recent events, such as earnings calls, regulatory filings, or major business announcements, are disclosed in the available data. The absence of recent disclosures limits the ability to assess the company's strategic direction or operational performance in the near term.

Qinchuan Machine Tool & Tool Group Share Co Ltd (000837.SZ) has undergone a formal classification update, with its economic sector now identified as Industrials and its specific activity categorized under Industrial Goods. This structural definition provides a clearer framework for analyzing the company’s operational context within the broader manufacturing landscape. Concurrently, the firm’s risk profile has been initialized with specific assessments. Dilution risk is currently rated as low, suggesting limited immediate pressure from share issuance or similar capital structure changes. This assessment offers a baseline for evaluating the stability of existing shareholder equity. In contrast, liquidity risk has been classified as medium. This designation indicates that while the company maintains operational continuity, there may be moderate constraints or volatility in its short-term cash flow management or market trading depth that warrants monitoring. These updates establish a foundational view of Qinchuan Machine Tool & Tool Group’s sector alignment and risk characteristics. With no current analyst coverage or index membership data available, these initial classifications serve as the primary reference points for understanding the company’s financial positioning.

Revenue grew 2.2% annually over four years, demonstrating consistent top-line expansion despite recent volatility.

Long-term debt decreased significantly to 819 million CNY in 2026, improving the company's leverage profile.

Free cash flow turned positive to 11 million CNY in 2026, reversing previous years of negative cash generation.

Net income maintained stability around 53 million CNY in 2025 and 2026, showing resilience in profitability.

The company holds a substantial book value of 4.79 billion CNY, providing a solid asset base.

Return on equity of 0.37% is drastically lower than the 3.56% cohort median, signaling poor capital efficiency.

Cash conversion ratio of -1.02 places the company in the bottom quartile of its peer group.

The company faces high credit risk, posing a significant threat to its financial stability and operations.

Net margin of 1.7% is significantly below the 4.9% industry median, reflecting thin profitability.

Revenue ¥4.09B, +6,0% YoY; Operating income −19,5% YoY.

• ▍Revenue ¥4.09B, +6,0% YoY
• ▍Operating income −19,5% YoY
• ▍Net income −1,6% YoY
• ▍Free cash flow +109,2% YoY
• ▍Net margin 1.3%

Revenue ¥3.86B, +2,6% YoY; Operating income +18,1% YoY.

• ▍Revenue ¥3.86B, +2,6% YoY
• ▍Operating income +18,1% YoY
• ▍Net income +2,9% YoY
• ▍Free cash flow −28,8% YoY
• ▍Net margin 1.4%

Revenue ¥3.76B, −8,3% YoY; Operating income −74,7% YoY.

• ▍Revenue ¥3.76B, −8,3% YoY
• ▍Operating income −74,7% YoY
• ▍Net income −81,0% YoY
• ▍Free cash flow −166,1% YoY
• ▍Net margin 1.4%