Kingenta Ecological Engineering Group Co Ltd

Kingenta Ecological Engineering Group Co Ltd maintains a highly leveraged capital structure, with total liabilities of 10.32 billion CNY against total equity of 2.12 billion CNY, resulting in a debt-to-equity ratio of 2.65. The company holds 5.61 billion CNY in long-term debt, which significantly outweighs its cash generation capabilities. Liquidity is constrained, evidenced by a current ratio of 0.8, indicating that current liabilities exceed current assets. The firm generated 455.7 million CNY in operating cash flow, but free cash flow was only 106.9 million CNY after capital expenditures of 327.2 million CNY. The negative net cash position after subtracting total debt highlights a reliance on external financing to sustain operations.

Profitability metrics are weak, with a net income of 34.6 million CNY on revenue of 9.92 billion CNY, yielding a net margin of approximately 0.35%. Return on equity is negative at -1.57%, and return on assets is -0.27%, indicating that the company is not generating adequate returns on its capital base. The operating income of 63.7 million CNY suggests thin operational margins before interest and taxes. The gross profit of 1.27 billion CNY represents a gross margin of roughly 12.8%, which may be insufficient to cover the high interest expenses associated with its debt load.

Revenue concentration and segment details are not explicitly provided in the available data, but the company's activity is centered on ecological engineering within the chemicals industry. The lack of detailed segment breakdown limits the ability to assess specific revenue drivers or geographic exposure. However, the total revenue of 9.92 billion CNY indicates a substantial scale of operations, likely driven by large-scale engineering projects or contracts.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest actual revenue reported by analysts is 9.31 billion CNY, which is lower than the financial snapshot revenue of 9.92 billion CNY, suggesting potential discrepancies in reporting periods or adjustments. Without multi-year historical data, it is not possible to determine the long-term growth trend or seasonality of the business.

Risk factors include medium liquidity risk and low dilution risk. The key flag of negative net cash after subtracting total debt underscores the financial strain. The high debt-to-equity ratio of 2.65 and low current ratio of 0.8 pose significant refinancing and liquidity risks. The company's ability to service its debt is questionable given the low free cash flow and negative returns on equity and assets.

Recent observations include an analyst estimate of last actual revenue at 9.31 billion CNY. There are no specific filing, news, or transcript observations provided in the input data. The lack of recent event data limits the ability to assess immediate catalysts or changes in the company's operational environment.

Revenue grew 19.1% year-over-year to nearly 10 billion CNY in 2021, demonstrating significant top-line expansion.

Operating income surged 206.7% year-over-year, indicating a strong recovery in core operational profitability for the latest fiscal year.

The company returned to positive net income in 2021, ending a three-year streak of reported net losses.

Gross profit increased to over 1.26 billion CNY in 2021, suggesting improved cost management or product mix efficiency.

Free cash flow turned positive in 2021, generating over 106 million CNY after years of negative cash generation.

Net margin remains negative at -0.36%, placing the company in the bottom quartile compared to its peer cohort.

Return on equity is negative at -1.57%, ranking in the bottom quartile and indicating poor capital efficiency.

The debt-to-equity ratio stands at 2.65, significantly higher than the cohort median of 0.4, signaling high leverage risk.

Credit risk is flagged as high, reflecting potential difficulties in meeting financial obligations given the leverage profile.

Revenue ¥2.96B, +25,9% YoY; Operating income −8,8% YoY.

• ▍Revenue ¥2.96B, +25,9% YoY
• ▍Operating income −8,8% YoY
• ▍Net income +30,0% YoY
• ▍Net margin 0.4%

Revenue ¥2.60B, +34,4% YoY; Operating income +145,6% YoY.

• ▍Revenue ¥2.60B, +34,4% YoY
• ▍Operating income +145,6% YoY
• ▍Net income +153,2% YoY
• ▍Net margin 2.5%

Revenue ¥1.93B; Operating income -¥151.5M.

• ▍Revenue ¥1.93B
• ▍Operating income -¥151.5M
• ▍Net margin -6.2%

Revenue ¥1.82B; Operating income -¥4.7M.

• ▍Revenue ¥1.82B
• ▍Operating income -¥4.7M
• ▍Net margin 0.6%

Revenue ¥2.62B; Operating income ¥156.1M.

• ▍Revenue ¥2.62B
• ▍Operating income ¥156.1M
• ▍Net margin 5.4%

Revenue ¥9.92B, +19,1% YoY; Operating income +206,7% YoY.

• ▍Revenue ¥9.92B, +19,1% YoY
• ▍Operating income +206,7% YoY
• ▍Net income −42,0% YoY
• ▍Free cash flow −23,8% YoY
• ▍Net margin 0.3%

Revenue ¥8.33B, −2,6% YoY; Operating income +102,1% YoY.

• ▍Revenue ¥8.33B, −2,6% YoY
• ▍Operating income +102,1% YoY
• ▍Net income +106,2% YoY
• ▍Free cash flow +121,4% YoY
• ▍Net margin 0.7%

Revenue ¥8.55B, −14,3% YoY; Operating income −18,9% YoY.

• ▍Revenue ¥8.55B, −14,3% YoY
• ▍Operating income −18,9% YoY
• ▍Net income +1,1% YoY
• ▍Free cash flow +12,1% YoY
• ▍Net margin -11.4%

Revenue ¥9.98B, +7,1% YoY; Operating income −60,6% YoY.

• ▍Revenue ¥9.98B, +7,1% YoY
• ▍Operating income −60,6% YoY
• ▍Net income −71,1% YoY
• ▍Free cash flow −154,6% YoY
• ▍Net margin -9.8%

Revenue ¥9.32B; Operating income -¥508.0M.

• ▍Revenue ¥9.32B
• ▍Operating income -¥508.0M
• ▍Net margin -6.2%