Shanghai Anoky Group Co Ltd

Shanghai Anoky Group Co Ltd maintains a capital structure characterized by a debt-to-equity ratio of 0.36 and a current ratio of 1.22, indicating moderate leverage and adequate short-term liquidity coverage. The company holds total assets of CNY 3.54 billion against total liabilities of CNY 1.06 billion, resulting in total equity of CNY 2.48 billion. However, liquidity risk is assessed as medium due to negative net cash positions after accounting for total debt, which stands at CNY 902 million in long-term debt. The company generated operating cash flow of CNY 20 million but reported negative free cash flow of CNY 79 million, driven by capital expenditures of CNY 102 million.

Profitability metrics reveal significant challenges, with the company reporting an operating loss of CNY 79 million and a net loss of CNY 63 million on revenues of CNY 1.01 billion. The return on equity is negative at -0.78%, and return on assets is -0.55%, reflecting an inability to generate returns on its capital base. The gross profit of CNY 84 million suggests a gross margin of approximately 8.4%, which may be insufficient to cover operating expenses and interest costs. The negative EV/EBITDA ratio of -445.33 further underscores the current unprofitability, while the price-to-book ratio of 2.25 indicates that the market values the company's equity at a premium to its book value despite the losses.

Operating income surged 661% year-over-year, signaling a potential turnaround in core business profitability despite recent net losses.

Net income improved by 284.1% year-over-year, indicating a significant reduction in losses compared to the prior period.

Free cash flow improved by 22.5% year-over-year, suggesting better cash generation capabilities despite remaining negative.

Debt-to-equity ratio of 0.36 is below the cohort median of 0.23, indicating relatively conservative leverage compared to peers.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity value erosion.

The company faces high credit risk, posing a significant threat to its financial stability and borrowing capacity.

Operating and net margins are in the bottom quartile of the Specialty Chemicals cohort, indicating severe profitability challenges.

Return on equity is negative at -0.78%, significantly underperforming the cohort median of 3.93%.

Cash conversion is in the bottom quartile at -8.72, highlighting poor ability to turn earnings into cash.

Revenue ¥1.05B; Operating income ¥109.9M.

• ▍Revenue ¥1.05B
• ▍Operating income ¥109.9M
• ▍Net margin 9.9%