Zhe Jiang Kangsheng Co Ltd

Zhe Jiang Kangsheng Co Ltd maintains a capital structure characterized by a debt-to-equity ratio of 0.59 and a current ratio of 1.41. The balance sheet shows total assets of 3.34 billion CNY against total liabilities of 1.89 billion CNY, resulting in total equity of 1.45 billion CNY. Long-term debt stands at 856 million CNY. Liquidity is assessed as medium risk, with a key flag noting that net cash is negative after subtracting total debt. Operating cash flow is negative at -79.8 million CNY, while free cash flow is slightly negative at -8.5 million CNY, driven by capital expenditures of -111 million CNY.

Profitability metrics indicate thin margins and low returns on capital. The company reported revenue of 2.83 billion CNY with a gross profit of 306 million CNY, resulting in a gross margin of approximately 10.8%. Operating income is 43.6 million CNY, and net income is 25.1 million CNY. Return on equity is 1.2%, and return on assets is 0.52%. These returns are low relative to typical industry standards for materials companies, suggesting limited operational leverage or high cost structures. The price-to-earnings ratio is 260.45, and EV/EBITDA is 181.21, indicating a high valuation multiple relative to current earnings power.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s activity is listed as unclassified, and no specific segment breakdowns are present in the financial snapshot or classification sections.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest actual revenue reported in IR observations is 2.92 billion CNY, which is slightly higher than the financial snapshot revenue of 2.83 billion CNY, suggesting potential minor growth or timing differences in reporting periods. Without multi-year historical data, long-term growth trends cannot be quantified.

Risk factors include medium liquidity risk and low dilution risk. The negative net cash position after debt subtraction is a primary concern, alongside negative operating cash flow. The high valuation multiples (P/E of 260.45) pose a risk if earnings do not expand significantly. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 1.14 billion shares.

Recent observations include an analyst estimate of last actual revenue at 2.92 billion CNY. No specific filing, news, or transcript observations are provided in the input data to detail recent corporate events or management signals.

Net income surged 108.7% year-over-year, demonstrating a strong recovery in profitability despite previous periods of significant financial volatility.

Operating income increased by 74.4% year-over-year, indicating a substantial improvement in core operational efficiency and cost management.

Free cash flow improved by 591.2% year-over-year, signaling a marked enhancement in cash generation capabilities from recent operations.

The four-year net income CAGR of 14.5% suggests underlying long-term earnings growth potential despite recent annual fluctuations.

Dilution risk is assessed as low, providing relative stability for existing shareholders regarding potential equity value erosion.

Credit risk is flagged as high, indicating significant potential for loan losses or financial distress that could severely impact future earnings.

Net margin of 0.63% ranks in the bottom quartile of its cohort, highlighting severely weak profitability compared to peers.

Operating margin of 1.08% falls in the bottom quartile, suggesting persistent structural inefficiencies in core business operations.

Return on equity of 1.2% is in the bottom quartile, indicating poor capital efficiency relative to the broader peer group.

Revenue ¥622.9M, −12,5% YoY; Operating income −88,7% YoY.

• ▍Revenue ¥622.9M, −12,5% YoY
• ▍Operating income −88,7% YoY
• ▍Net income −61,5% YoY
• ▍Net margin 0.8%

Revenue ¥896.3M, +0,1% YoY; Operating income +135,8% YoY.

• ▍Revenue ¥896.3M, +0,1% YoY
• ▍Operating income +135,8% YoY
• ▍Net income +112,7% YoY
• ▍Net margin 1.3%

Revenue ¥750.1M, +30,5% YoY; Operating income +157,6% YoY.

• ▍Revenue ¥750.1M, +30,5% YoY
• ▍Operating income +157,6% YoY
• ▍Net income +144,6% YoY
• ▍Net margin 0.7%

Revenue ¥471.4M, −20,4% YoY; Operating income −525,5% YoY.

• ▍Revenue ¥471.4M, −20,4% YoY
• ▍Operating income −525,5% YoY
• ▍Net income −184,6% YoY
• ▍Net margin -0.8%

Revenue ¥895.8M; Operating income -¥68.3M.

• ▍Revenue ¥895.8M
• ▍Operating income -¥68.3M
• ▍Net margin -9.9%

Revenue ¥574.9M; Operating income -¥14.4M.

• ▍Revenue ¥574.9M
• ▍Operating income -¥14.4M
• ▍Net margin -1.9%

Revenue ¥2.83B, +8,2% YoY; Operating income +153,8% YoY.

• ▍Revenue ¥2.83B, +8,2% YoY
• ▍Operating income +153,8% YoY
• ▍Net income +125,5% YoY
• ▍Free cash flow +89,6% YoY
• ▍Net margin 0.9%

Revenue ¥2.62B, +13,9% YoY; Operating income −417,0% YoY.

• ▍Revenue ¥2.62B, +13,9% YoY
• ▍Operating income −417,0% YoY
• ▍Net income −551,5% YoY
• ▍Free cash flow −459,3% YoY
• ▍Net margin -3.8%

Revenue ¥2.30B, −27,1% YoY; Operating income −12,7% YoY.

• ▍Revenue ¥2.30B, −27,1% YoY
• ▍Operating income −12,7% YoY
• ▍Net income +21,5% YoY
• ▍Free cash flow +300,1% YoY
• ▍Net margin 0.9%