Sichuan Jiuyuan Yinhai Software Co Ltd

The company's capital structure is characterized by a low debt-to-equity ratio of 0.01, indicating a conservative leverage position. With total equity of 1,632,278,430 CNY and total liabilities of 934,739,370 CNY, the firm maintains a strong equity base. The current ratio of 2.4 suggests a solid short-term liquidity position, supported by 332,619,330 CNY in cash and equivalents. However, the operating cash flow of -108,387,940 CNY and capital expenditure of -98,902,200 CNY indicate ongoing cash outflows, which may pressure liquidity in the near term.

Profitability metrics show a challenging performance, with a net loss of 1,199,790 CNY and an operating loss of 2,156,160 CNY. The return on equity (ROE) of -0.07% and return on assets (ROA) of -0.05% further underscore the company's underperformance relative to industry norms. Gross profit of 75,997,630 CNY on revenue of 199,109,790 CNY suggests a gross margin of approximately 38.17%, which is relatively high but insufficient to offset operating and net losses.

The company's revenue is not segmented by product or geographic region in the available data, making it difficult to assess the concentration of exposure. However, the absence of disclosed geographic or segment breakdowns implies a lack of diversification, which could pose a risk if demand in a particular market or product line declines.

Looking ahead, the company's growth trajectory is uncertain. The current fiscal year outlook does not provide specific revenue growth projections, and the absence of disclosed capital expenditure plans or R&D investments makes it difficult to assess future growth drivers. Analysts have assigned a mean price target of 22.52 CNY, with a median of 22.52 CNY, and a mean recommendation of 1.50, indicating a generally positive sentiment.

The risk assessment highlights low liquidity and dilution risks, with no immediate filing-based flags detected. However, the negative operating cash flow and capital expenditure suggest potential liquidity pressures. The dilution risk is also low, with no near-term pressure expected. The company's conservative debt structure and strong equity base provide a buffer against financial distress.

Recent events and filings do not provide specific details on strategic initiatives or operational changes. The absence of disclosed events or transcripts implies a lack of recent material developments that could impact the company's performance. Analysts have not issued any strong buy or buy recommendations, with one strong buy and one buy recommendation, and no hold or sell recommendations.

Sichuan Jiuyuan Yinhai Software Co Ltd (002777.SZ) has been formally classified within the Technology economic sector, with its primary activity identified as Software. This medium-severity update establishes the company’s operational taxonomy, providing a clearer framework for understanding its business model and market positioning within the broader technology landscape. Concurrently, the company’s risk profile has been updated to reflect low levels of both dilution and liquidity risk. These new assessments, classified as low severity, indicate that the firm currently faces minimal pressure from share dilution and maintains adequate liquidity conditions, contributing to a stable financial footing. The COMPANY_360 data indicates that the firm currently has no recorded officers, analysts, index memberships, or top holders in the available dataset. This absence of specific holder or analyst coverage data suggests limited public scrutiny or institutional tracking in the current reporting period, despite the clarity provided by the new sector and risk classifications. These updates collectively refine the investment thesis for 002777.SZ by anchoring it in the software segment of the technology sector while highlighting a low-risk environment regarding capital structure and cash flow. The combination of clear sector alignment and low risk metrics offers a foundational view of the company’s stability, even in the absence of detailed analyst or holder data.

Analysts project 70.2% upside to a mean price target of 22.52, reflecting strong buy consensus.

Free cash flow surged 241.4% year-over-year to 24.9 million CNY, demonstrating significant cash generation recovery.

Cash conversion ratio of 90.34% ranks as best-in-class compared to the software cohort median of 0.92%.

Debt-to-equity ratio of 0.01 is above the cohort median, indicating a conservative capital structure with minimal leverage.

Long-term debt decreased to 15.8 million CNY in FY2026, reducing financial obligations and interest expense risks.

Net income CAGR of -23.0% over four years signals a severe and sustained decline in profitability.

Operating margin of -1.08% and net margin of -0.60% both fall significantly below software cohort medians.

Revenue declined 8.0% year-over-year to 1.23 billion CNY, reflecting shrinking top-line growth momentum.

High credit risk flag suggests potential solvency concerns or difficulty in securing favorable financing terms.

Revenue ¥1.23B, −8,0% YoY; Operating income −0,8% YoY.

• ▍Revenue ¥1.23B, −8,0% YoY
• ▍Operating income −0,8% YoY
• ▍Net income +4,9% YoY
• ▍Free cash flow +241,4% YoY
• ▍Net margin 6.2%

Revenue ¥1.34B, −0,6% YoY; Operating income −56,0% YoY.

• ▍Revenue ¥1.34B, −0,6% YoY
• ▍Operating income −56,0% YoY
• ▍Net income −56,0% YoY
• ▍Free cash flow −145,5% YoY
• ▍Net margin 5.5%

Revenue ¥1.35B, +5,0% YoY; Operating income −9,2% YoY.

• ▍Revenue ¥1.35B, +5,0% YoY
• ▍Operating income −9,2% YoY
• ▍Net income −9,7% YoY
• ▍Free cash flow −54,4% YoY
• ▍Net margin 12.4%

Revenue ¥1.28B, −1,8% YoY; Operating income −18,3% YoY.

• ▍Revenue ¥1.28B, −1,8% YoY
• ▍Operating income −18,3% YoY
• ▍Net income −15,7% YoY
• ▍Free cash flow −35,5% YoY
• ▍Net margin 14.4%

Revenue ¥1.31B; Operating income ¥253.6M.

• ▍Revenue ¥1.31B
• ▍Operating income ¥253.6M
• ▍Net margin 16.7%