Tianjin TEDA Resources Recycling Group Co Ltd

The company maintains a highly leveraged capital structure, with total liabilities of 37.6 billion CNY against total equity of 5.4 billion CNY, resulting in a debt-to-equity ratio of 5.05. Long-term debt stands at 27.3 billion CNY, significantly outweighing the market capitalization of 5.0 billion CNY. Liquidity is assessed as medium risk, supported by a current ratio of 1.21, which indicates adequate short-term coverage but limited buffer. The balance sheet reflects negative net cash after subtracting total debt, highlighting reliance on external financing to sustain operations.

Profitability metrics reveal significant operational challenges, with an operating income of -298.5 million CNY and a net income loss of -286.1 million CNY for the latest period. Despite gross profits of 864.7 million CNY on revenues of 17.9 billion CNY, the gross margin is thin, and operating expenses exceed gross earnings. Return on equity is 2.11% and return on assets is 0.27%, both indicating inefficient capital deployment relative to the high leverage employed. The negative EV/EBITDA of -289.39 underscores the lack of positive earnings before interest, taxes, depreciation, and amortization.

Net income surged 139.9% year-over-year to CNY 114.1 million, signaling a strong operational recovery from the previous fiscal loss.

Operating income improved by 60.4% year-over-year, demonstrating significant progress in stabilizing core business profitability despite negative margins.

Revenue grew 6.7% year-over-year to CNY 19.1 billion, indicating resilient top-line performance amidst broader economic headwinds.

Free cash flow outflows narrowed by 9.2% year-over-year, suggesting improved cash management and reduced capital intensity in operations.

Dilution risk is assessed as low, providing existing shareholders with relative protection against equity value erosion from new issuances.

The company carries a massive debt-to-equity ratio of 5.05, significantly exceeding the cohort median of 0.4 and indicating extreme leverage risk.

Credit risk is flagged as high, reflecting severe concerns regarding the company's ability to meet its substantial long-term debt obligations.

Operating margin remains negative at -0.6%, placing the company in the bottom quartile and highlighting persistent core business unprofitability.

Liquidity risk is rated as medium, compounded by consistent negative free cash flows exceeding CNY 1.6 billion annually.

Revenue ¥17.87B, −6,3% YoY; Operating income −152,5% YoY.

• ▍Revenue ¥17.87B, −6,3% YoY
• ▍Operating income −152,5% YoY
• ▍Net income −350,7% YoY
• ▍Free cash flow −10,2% YoY
• ▍Net margin -1.6%

Revenue ¥21.07B, +4,0% YoY; Operating income −13,2% YoY.

• ▍Revenue ¥21.07B, +4,0% YoY
• ▍Operating income −13,2% YoY
• ▍Net income +2,6% YoY
• ▍Free cash flow +6,8% YoY
• ▍Net margin 0.9%

Revenue ¥20.25B, −4,5% YoY; Operating income +9,8% YoY.

• ▍Revenue ¥20.25B, −4,5% YoY
• ▍Operating income +9,8% YoY
• ▍Net income −28,8% YoY
• ▍Free cash flow +13,2% YoY
• ▍Net margin 0.9%

Revenue ¥21.20B; Operating income ¥401.5M.

• ▍Revenue ¥21.20B
• ▍Operating income ¥401.5M
• ▍Net margin 1.2%