Nanjing Red Sun Co Ltd

Nanjing Red Sun Co Ltd exhibits a strained capital structure characterized by significant leverage and acute liquidity constraints. The company reports total liabilities of 3.89 billion CNY against total equity of 2.47 billion CNY, resulting in a debt-to-equity ratio of 0.71. Long-term debt stands at 1.75 billion CNY, while cash and equivalents are negligible at 590 CNY, leading to a negative net cash position. The current ratio is 0.51, indicating that current liabilities exceed current assets, which aligns with the medium liquidity risk assessment. Operating cash flow is positive at 177.1 million CNY, but free cash flow is negative at -213.6 million CNY due to capital expenditures of 136.3 million CNY.

Profitability metrics are deeply negative, reflecting operational distress. The company reports a net income loss of 378.8 million CNY on revenue of 3.08 billion CNY, resulting in a return on equity of -16.39% and a return on assets of -6.37%. The operating income is -388.2 million CNY, and the gross profit is 331.7 million CNY, indicating that operating expenses significantly outstrip gross margins. The EV/EBITDA ratio is negative at -17.28, rendering traditional valuation multiples less meaningful, while the price-to-book ratio stands at 2.13.

Segment and geographic revenue mix data is not available in the provided input, preventing a detailed analysis of revenue concentration or regional exposure. The company's revenue generation is attributed to its core activities in the chemicals sector, but specific breakdowns by product line or geography are absent from the current dataset.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest financial snapshot shows revenue of 3.08 billion CNY, while analyst estimates for actual revenue reference a figure of 4.61 billion CNY, suggesting potential variability in reporting periods or estimates. Without multi-year historical data, long-term growth trends cannot be quantified from the provided information.

Risk factors are dominated by liquidity and solvency concerns. The key flag notes that net cash is negative after subtracting total debt, highlighting a reliance on external financing or asset liquidation to meet obligations. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 1.30 billion shares. The medium liquidity risk is corroborated by the current ratio of 0.51 and minimal cash reserves.

Recent observations include analyst estimates indicating a last actual EPS of -0.59 CNY. No specific filing, news, or transcript observations are provided in the input data to detail recent corporate events or management commentary.

The company reduced long-term debt significantly from 2016 to 2019, improving its balance sheet leverage position.

Revenue showed slight year-over-year growth of 2.4% in the latest fiscal year, indicating stable top-line performance.

The debt-to-equity ratio of 0.71 is below the cohort median of 0.4, suggesting manageable leverage relative to peers.

The company faces high credit risk and medium liquidity risk, posing significant financial stability concerns for investors.

Revenue ¥673.3M, −20,6% YoY; Operating income −64,5% YoY.

• ▍Revenue ¥673.3M, −20,6% YoY
• ▍Operating income −64,5% YoY
• ▍Net income −89,1% YoY
• ▍Net margin 0.5%

Revenue ¥752.1M, +147,0% YoY; Operating income −103,3% YoY.

• ▍Revenue ¥752.1M, +147,0% YoY
• ▍Operating income −103,3% YoY
• ▍Net income −129,7% YoY
• ▍Net margin -14.3%

Revenue ¥867.2M, −18,2% YoY; Operating income −3 331,1% YoY.

• ▍Revenue ¥867.2M, −18,2% YoY
• ▍Operating income −3 331,1% YoY
• ▍Net income −1 243,3% YoY
• ▍Net margin -7.3%

Revenue ¥612.7M, −23,1% YoY; Operating income −7 904,4% YoY.

• ▍Revenue ¥612.7M, −23,1% YoY
• ▍Operating income −7 904,4% YoY
• ▍Net income −20 678,0% YoY
• ▍Net margin -38.8%

Revenue ¥847.7M; Operating income ¥28.8M.

• ▍Revenue ¥847.7M
• ▍Operating income ¥28.8M
• ▍Net margin 3.5%

Revenue ¥304.5M; Operating income ¥1.62B.

• ▍Revenue ¥304.5M
• ▍Operating income ¥1.62B
• ▍Net margin 118.7%

Revenue ¥1.06B; Operating income ¥2.8M.

• ▍Revenue ¥1.06B
• ▍Operating income ¥2.8M
• ▍Net margin 0.5%

Revenue ¥796.7M; Operating income -¥3.4M.

• ▍Revenue ¥796.7M
• ▍Operating income -¥3.4M
• ▍Net margin 0.1%

Revenue ¥3.08B, +2,4% YoY; Operating income −123,7% YoY.

• ▍Revenue ¥3.08B, +2,4% YoY
• ▍Operating income −123,7% YoY
• ▍Net income −197,6% YoY
• ▍Free cash flow −132,1% YoY
• ▍Net margin -12.3%

Revenue ¥3.01B, −7,0% YoY; Operating income +356,8% YoY.

• ▍Revenue ¥3.01B, −7,0% YoY
• ▍Operating income +356,8% YoY
• ▍Net income +199,7% YoY
• ▍Free cash flow +1 262,7% YoY
• ▍Net margin 12.9%

Revenue ¥3.23B, −49,8% YoY; Operating income −173,5% YoY.

• ▍Revenue ¥3.23B, −49,8% YoY
• ▍Operating income −173,5% YoY
• ▍Net income −153,1% YoY
• ▍Free cash flow −109,3% YoY
• ▍Net margin -12.0%

Revenue ¥6.44B, +37,5% YoY; Operating income +140,6% YoY.

• ▍Revenue ¥6.44B, +37,5% YoY
• ▍Operating income +140,6% YoY
• ▍Net income +119,6% YoY
• ▍Free cash flow +116,8% YoY
• ▍Net margin 11.4%