Wafangdian Bearing Co Ltd

Wafangdian Bearing Co Ltd has a debt-to-equity ratio of 2.13, indicating a capital structure that is heavily leveraged. The company's liquidity position is assessed as medium, with a current ratio of 0.96, suggesting limited short-term liquidity to cover immediate liabilities. Operating cash flow of 29.5 million CNY provides some buffer, but the negative net cash position after subtracting total debt raises concerns about long-term liquidity.

Profitability metrics are weak, with a return on equity of -6.26% and a return on assets of -0.63%. These figures fall below the typical thresholds for industrial machinery firms, which often require ROE above 10% and ROA above 5% to be considered competitive. The company reported a net loss of 20.44 million CNY and an operating loss of 22.56 million CNY, indicating operational inefficiencies or declining demand.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of diversification increases exposure to regional economic downturns or supply chain disruptions. No major geographic regions or customer segments are specified, but the absence of diversification is a red flag for long-term stability.

Growth appears to be under pressure, with a reported revenue of 595.58 million CNY in the latest period. Analyst estimates suggest a prior revenue of 2.98 billion CNY, but the discrepancy may reflect a reporting period mismatch or a significant decline in performance. Capital expenditures of -2.65 million CNY indicate a reduction in investment, which could signal a contraction in operations or a shift in strategic priorities.

Risk factors include a high debt load and weak profitability, which could lead to liquidity stress if operating cash flows do not improve. The company has a low dilution risk, with no difference between basic and diluted shares outstanding, but the negative net income and operating cash flow could pressure future earnings per share. No recent filings or transcripts are provided to assess management commentary or strategic direction.

Recent financial performance highlights a deteriorating trend, with a net loss and negative operating income reported in the latest period. The company's ability to service its 697 million CNY in long-term debt is questionable given the current cash flow profile. No material events or disclosures are provided to explain the performance decline, but the financial snapshot suggests operational challenges.

Free cash flow improved by 92.3% year-over-year in 2009, signaling significant operational efficiency gains.

Net income losses narrowed by 47.3% in 2009, demonstrating a strong trajectory toward profitability.

Revenue grew 14.5% year-over-year in 2009, indicating robust top-line expansion despite market headwinds.

Operating income improved by 49.3% in 2009, reflecting better cost management and operational leverage.

Dilution risk is assessed as low, providing stability for existing shareholders' equity positions.

The company carries a high credit risk flag, suggesting potential difficulties in meeting debt obligations.

Debt-to-equity ratio stands at 2.13, significantly exceeding the industry median of 0.2.

Liquidity risk is rated as medium, indicating potential challenges in managing short-term cash needs.

Revenue ¥503.2M; Operating income -¥2.8M.

• ▍Revenue ¥503.2M
• ▍Operating income -¥2.8M
• ▍Net margin -0.5%

Revenue ¥595.6M; Operating income -¥22.6M.

• ▍Revenue ¥595.6M
• ▍Operating income -¥22.6M
• ▍Net margin -3.4%

Revenue ¥2.35B, +14,5% YoY; Operating income +49,3% YoY.

• ▍Revenue ¥2.35B, +14,5% YoY
• ▍Operating income +49,3% YoY
• ▍Net income +47,3% YoY
• ▍Free cash flow +92,3% YoY
• ▍Net margin -2.5%

Revenue ¥2.05B, −6,4% YoY; Operating income −16,3% YoY.

• ▍Revenue ¥2.05B, −6,4% YoY
• ▍Operating income −16,3% YoY
• ▍Net income −10,8% YoY
• ▍Free cash flow −6,2% YoY
• ▍Net margin -5.4%

Revenue ¥2.19B, −6,6% YoY; Operating income +30,3% YoY.

• ▍Revenue ¥2.19B, −6,6% YoY
• ▍Operating income +30,3% YoY
• ▍Net income +28,9% YoY
• ▍Free cash flow +23,8% YoY
• ▍Net margin -4.5%

Revenue ¥2.35B, +1,3% YoY; Operating income +31,2% YoY.

• ▍Revenue ¥2.35B, +1,3% YoY
• ▍Operating income +31,2% YoY
• ▍Net income +32,0% YoY
• ▍Free cash flow +42,3% YoY
• ▍Net margin -6.0%

Revenue ¥2.32B; Operating income -¥208.5M.

• ▍Revenue ¥2.32B
• ▍Operating income -¥208.5M
• ▍Net margin -8.9%