Guangdong Guanghua Sci-Tech Co Ltd

Guangdong Guanghua Sci-Tech Co Ltd maintains a capital structure characterized by a debt-to-equity ratio of 0.5 and a current ratio of 1.38, indicating moderate leverage and adequate short-term liquidity coverage. The company holds total assets of 3.77 billion CNY against total liabilities of 1.83 billion CNY, with long-term debt standing at 959 million CNY. Despite positive free cash flow of 99 million CNY, the firm reports negative net cash after subtracting total debt, signaling a medium liquidity risk profile. The market capitalization stands at 14.15 billion CNY, reflecting a price-to-book ratio of 7.31, which suggests the market is pricing in significant intangible value or future growth expectations beyond tangible assets.

Profitability metrics reveal challenges in the current period, with a return on equity of -9.48% and a return on assets of -4.87%, indicating that the company is currently destroying shareholder value relative to its capital base. The operating income of 116 million CNY on revenue of 2.96 billion CNY yields a modest operating margin, while the gross profit of 453 million CNY suggests compression in gross margins. The negative EV/EBITDA ratio of -95.74 further underscores the current earnings weakness, as EBITDA is likely negative or near zero, making traditional valuation multiples less meaningful for immediate comparison.

Net income surged 150.7% year-over-year to CNY 103.9 million in FY2026, signaling a strong operational turnaround.

Operating income jumped 163.1% to CNY 116.1 million in FY2026, demonstrating significant improvement in core profitability.

Free cash flow turned positive to CNY 99.1 million in FY2026, reversing the severe outflows seen in prior years.

Revenue grew 14.5% year-over-year to CNY 2.96 billion in FY2026, indicating robust top-line expansion momentum.

Long-term debt decreased to CNY 891.4 million in FY2025, suggesting active deleveraging efforts before the FY2026 rebound.

The company faces high credit risk, posing significant potential threats to financial stability and debt servicing capabilities.

Cash conversion ratio of -0.1 is in the bottom quartile, significantly underperforming the cohort median of 1.1.

The firm carries medium liquidity risk, which may constrain its ability to meet short-term financial obligations.

Revenue ¥2.96B, +14,5% YoY; Operating income +163,1% YoY.

• ▍Revenue ¥2.96B, +14,5% YoY
• ▍Operating income +163,1% YoY
• ▍Net income +150,7% YoY
• ▍Net margin 3.5%

Revenue ¥2.59B, −4,1% YoY; Operating income +64,2% YoY.

• ▍Revenue ¥2.59B, −4,1% YoY
• ▍Operating income +64,2% YoY
• ▍Net income +52,4% YoY
• ▍Net margin -7.9%

Revenue ¥2.70B, −18,3% YoY; Operating income −714,2% YoY.

• ▍Revenue ¥2.70B, −18,3% YoY
• ▍Operating income −714,2% YoY
• ▍Net income −468,6% YoY
• ▍Free cash flow −2 122,5% YoY
• ▍Net margin -16.0%

Revenue ¥3.30B, +28,0% YoY; Operating income +49,6% YoY.

• ▍Revenue ¥3.30B, +28,0% YoY
• ▍Operating income +49,6% YoY
• ▍Net income +87,6% YoY
• ▍Free cash flow −151,8% YoY
• ▍Net margin 3.5%

Revenue ¥2.58B; Operating income ¥55.9M.

• ▍Revenue ¥2.58B
• ▍Operating income ¥55.9M
• ▍Net margin 2.4%