Gansu Shangfeng Materials Co Ltd

Gansu Shangfeng Materials maintains a conservative capital structure with a debt-to-equity ratio of 0.42, indicating moderate leverage relative to its equity base of CNY 9.07 billion. The company holds total assets of CNY 16.62 billion against total liabilities of CNY 7.56 billion, resulting in a current ratio of 1.1, which suggests adequate but tight short-term liquidity. Long-term debt stands at CNY 3.80 billion, and while operating cash flow is robust at CNY 1.00 billion, free cash flow is lower at CNY 345.4 million due to capital expenditures of CNY 190.8 million. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, highlighting a reliance on debt financing for operations.

Profitability metrics show a gross profit of CNY 1.35 billion on revenue of CNY 4.69 billion, yielding a gross margin of approximately 28.7%. Operating income is CNY 868.4 million, leading to a net income of CNY 637.6 million. The return on equity is 7.03%, and the return on assets is 3.84%, reflecting moderate efficiency in asset utilization and equity generation. Without cohort median data for direct comparison, these returns must be evaluated against general industry standards for construction materials, where capital intensity often suppresses ROA.