Shanxi Guoxin Energy Corp Ltd

Shanxi Guoxin Energy Corp Ltd operates with a highly leveraged capital structure, as evidenced by a debt-to-equity ratio of 5.46, indicating that the company is financed predominantly through debt. The company's liquidity position is assessed as medium, with a current ratio of 0.61, suggesting that it may struggle to meet short-term obligations without relying on asset sales or additional financing. Operating cash flow of 524.75 million CNY provides some buffer, but the negative net cash position after subtracting total debt raises concerns about long-term liquidity.

Profitability metrics are weak, with a return on equity of -1.89% and a return on assets of -0.25%, both significantly below the industry median for natural gas utilities. The company reported a net loss of 67.48 million CNY and an operating loss of 29.65 million CNY, indicating operational inefficiencies or cost overruns. Gross profit of 230.75 million CNY is insufficient to cover operating expenses, which is a red flag for investors.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic downturns or regulatory changes that could impact demand for natural gas. The absence of segment-specific revenue data limits the ability to assess the company's exposure to different customer types or regions.

Growth prospects appear muted, with no disclosed revenue growth in the most recent period. The company's capital expenditure of -156.40 million CNY suggests a reduction in investment, which could signal a strategic shift or financial constraints. The outlook for the next fiscal year remains uncertain, with no clear direction provided in the available data.

The company's risk profile is elevated due to its high debt load and negative net income. The risk assessment indicates a medium liquidity risk and a low dilution risk, with no immediate pressure for equity issuance. However, the negative net cash position and high leverage increase the likelihood of future refinancing needs, which could lead to higher interest costs or covenant violations.

No recent filings or transcripts are available to provide additional context on the company's strategic direction or operational performance. The absence of recent disclosures limits the ability to assess management's response to current challenges.

Free cash flow turned positive to 76.6 million CNY, marking a 125.4% year-over-year improvement from the prior period.

Operating income surged 168.4% year-over-year to 78.8 million CNY, indicating significant operational efficiency gains.

Long-term debt decreased to 16.0 billion CNY, reflecting a consistent deleveraging trend over the past four fiscal years.

Net income improved by 16.2% year-over-year to a loss of 284.5 million CNY, showing narrowing profitability deficits.

The debt-to-equity ratio of 5.46 places the company in the bottom quartile of its peer cohort.

Return on equity of -1.89% significantly underperforms the cohort median of 4.7%, ranking in the bottom quartile.

The company faces high credit risk according to internal risk flag assessments.

Cash conversion of -7.78% ranks in the bottom quartile compared to the cohort median of 1.5%.

Revenue ¥4.24B; Operating income -¥206.2M.

• ▍Revenue ¥4.24B
• ▍Operating income -¥206.2M
• ▍Net margin -7.8%

Revenue ¥3.51B; Operating income -¥83.0M.

• ▍Revenue ¥3.51B
• ▍Operating income -¥83.0M
• ▍Net margin -1.8%

Revenue ¥2.54B; Operating income -¥29.7M.

• ▍Revenue ¥2.54B
• ▍Operating income -¥29.7M
• ▍Net margin -2.7%

Revenue ¥17.20B, +10,3% YoY; Operating income +410,1% YoY.

• ▍Revenue ¥17.20B, +10,3% YoY
• ▍Operating income +410,1% YoY
• ▍Net income +18,9% YoY
• ▍Free cash flow +94,5% YoY
• ▍Net margin 0.5%

Revenue ¥15.59B, +23,6% YoY; Operating income −51,9% YoY.

• ▍Revenue ¥15.59B, +23,6% YoY
• ▍Operating income −51,9% YoY
• ▍Net income +44,6% YoY
• ▍Free cash flow +72,5% YoY
• ▍Net margin 0.4%

Revenue ¥12.61B; Operating income ¥78.8M.

• ▍Revenue ¥12.61B
• ▍Operating income ¥78.8M
• ▍Net margin 0.4%