Hubei Huitian New Materials Co Ltd

Hubei Huitian New Materials Co Ltd maintains a capital structure characterized by significant leverage, with total liabilities of CNY 3.63 billion against total equity of CNY 3.07 billion. The debt-to-equity ratio stands at 0.71, indicating a moderate reliance on debt financing. Long-term debt comprises CNY 2.17 billion of the total liability base. Liquidity is assessed as medium risk, supported by a current ratio of 1.7, which suggests the company can meet its short-term obligations. However, the key risk flag notes that net cash is negative after subtracting total debt, highlighting a constrained net cash position despite positive operating cash flow of CNY 305 million.

Profitability metrics indicate modest returns on capital. The return on equity (ROE) is 7.18%, while the return on assets (ROA) is 3.29%. These figures suggest efficient but not exceptional capital utilization. The gross profit of CNY 1.03 billion on revenue of CNY 4.44 billion yields a gross margin of approximately 23.25%. Operating income of CNY 275 million results in an operating margin of roughly 6.2%, which is compressed relative to the gross margin, indicating significant operating expenses. Net income of CNY 221 million reflects a net margin of approximately 5.0%.