Breaking Down Jiangsu Huaxicun Co.,Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven assessment of Jiangsu Huaxicun Co., Ltd. (000936.SZ) where recent results show CNY 772.16 million in revenue for the quarter ending March 31, 2025-a sequential rise of 19.23%-and a trailing twelve-month revenue of CNY 3.39 billion (up 19.54% YoY), set against a market cap of CNY 6.44 billion and a P/S of 1.90; profitability metrics include TTM net income of CNY 133.60 million, EPS of CNY 0.34, ROE of 6.02% and a net profit margin of 9.3% while gross margin sits at 8.03%, and operating income is CNY 181.24 million; the balance sheet shows total assets of CNY 6.46 billion, total liabilities and debt of CNY 1.11 billion (debt/equity 0.21), equity of CNY 5.35 billion with book value per share CNY 5.80 and a net cash position of CNY -216.70 million; liquidity and cash flow reveal a current ratio of 1.72, quick ratio 1.49, operating cash flow CNY 237.37 million, capex -CNY 72.77 million and free cash flow CNY 164.60 million; valuation metrics include EV CNY 6.84 billion, trailing P/E 21.76, P/B 1.24, EV/EBITDA 30.64 and EV/FCF 41.53; weigh these figures alongside sector risks-cyclicality, regulation, commodity exposure-and growth levers such as a biotech partnership targeting CNY 200 million incremental revenue and a reported 20% reduction in production costs from automation to decide whether to keep reading for deeper, chapter-by-chapter analysis.

Jiangsu Huaxicun Co.,Ltd. (000936.SZ) - Revenue Analysis

• Quarter ending March 31, 2025 revenue: CNY 772.16 million (+19.23% QoQ).
• TTM revenue as of March 31, 2025: CNY 3.39 billion (+19.54% YoY).
• Full-year 2024 revenue: CNY 3.26 billion (+14.11% vs. 2023).
• Revenue per employee: ~CNY 3.75 million (902 employees).
• Market capitalization: CNY 6.44 billion; P/S ratio: 1.90.
• Five-year revenue trend: positive, consistent upward growth.

Key revenue figures and growth rates are summarized below for quick reference:

• Quarter-over-quarter acceleration: Q1 2025's +19.23% QoQ indicates either seasonal rebound or successful short-term volume/pricing initiatives.
• Year-over-year momentum: TTM +19.54% YoY signals sustained growth beyond one-off quarterly gains.
• Operational efficiency: CNY 3.75 million revenue per employee suggests relatively high revenue intensity versus headcount.
• Valuation context: P/S of 1.90 on CNY 6.44 billion market cap implies investor pricing that reflects growth but leaves room for re-rating if margins expand.

For background on corporate strategy, ownership and how the business generates revenue, see Jiangsu Huaxicun Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Huaxicun Co.,Ltd. (000936.SZ) - Profitability Metrics

Key profitability indicators for the trailing twelve months ending March 31, 2025, provide a snapshot of Jiangsu Huaxicun Co.,Ltd.'s ability to convert revenue into earnings and generate returns for shareholders.

• Net income of CNY 133.60M and EPS of CNY 0.34 indicate positive bottom-line performance on a per-share basis.
• ROE at 6.02% signals moderate return on shareholders' equity; it is adequate but below levels typically associated with high-growth firms.
• Net profit margin of 9.3% shows roughly CNY 0.093 of profit for every CNY 1 of revenue-comfortable for stability but leaves limited buffer for margin compression.
• Operating income (CNY 181.24M) exceeding net income reflects non-operating costs, taxes, or interest reducing final profit.
• Gross margin of 8.03% is relatively low, indicating tight cost structure or pricing pressure at the gross level.

For historical context, ownership details, and how Jiangsu Huaxicun operates, see: Jiangsu Huaxicun Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Huaxicun Co.,Ltd. (000936.SZ) - Debt vs. Equity Structure

• Total debt: CNY 1.11 billion
• Equity (book value): CNY 5.35 billion
• Book value per share: CNY 5.80
• Net cash position: CNY -216.70 million (more debt than cash)
• Total liabilities: CNY 1.11 billion
• Total assets: CNY 6.46 billion
• Debt-to-equity ratio: 0.21 (moderate financial leverage)
• Interest coverage ratio: Not available

Key interpretive points for investors:

• The debt-to-equity ratio of 0.21 signals a relatively conservative capital structure; equity substantially exceeds debt.
• Despite modest leverage, the negative net cash position (CNY -216.70M) shows that cash balances do not fully cover debt, which could affect short-term liquidity.
• Absence of an interest coverage ratio limits assessment of the firm's ability to service interest from operating earnings; investors should seek operating income and EBIT data to fill this gap.
• Total assets of CNY 6.46B versus liabilities of CNY 1.11B provide a large equity buffer, reflected in the CNY 5.35B book value.

Further context and corporate direction can be found here: Mission Statement, Vision, & Core Values (2026) of Jiangsu Huaxicun Co.,Ltd.

Jiangsu Huaxicun Co.,Ltd. (000936.SZ) Liquidity and Solvency

• Current ratio: 1.72 - sufficient short-term assets to cover short-term liabilities.
• Quick ratio: 1.49 - adequate immediate liquidity excluding inventory.
• Net cash position: CNY -216.70 million - company holds more debt than cash.
• Operating cash flow (OCF): CNY 237.37 million.
• Capital expenditures (CapEx): CNY -72.77 million.
• Free cash flow (FCF = OCF + CapEx): CNY 164.60 million.
• Interest coverage ratio: not available - ability to meet interest obligations cannot be assessed from supplied data.
• Total liabilities: CNY 1.11 billion; Total assets: CNY 6.46 billion - debt-to-assets ≈ 17.2%.

• Interpretation: liquidity ratios (1.72 current, 1.49 quick) suggest comfortable short-term coverage; negative net cash (-CNY 216.70m) signals reliance on debt financing despite relatively low debt-to-assets (17.2%).
• Cash generation is positive: OCF CNY 237.37m and FCF CNY 164.60m, which supports operational sustainability and capital spending.
• Missing interest coverage figure is a gap - supplementary disclosures or latest income statement needed to judge interest-service capacity.

Further company context and background: Jiangsu Huaxicun Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Huaxicun Co.,Ltd. (000936.SZ) - Valuation Analysis

• Premium earnings multiple (P/E 21.76) implies investors expect continued earnings growth or lower perceived risk compared with peers.
• P/B of 1.24 indicates limited margin of safety versus balance-sheet value, not deep-value territory.
• P/S at 1.90 shows revenue is being valued moderately-important if margins are volatile.
• Very elevated EV/EBITDA (30.64) signals either low current EBITDA, strong growth expectations, or stretched valuation; compare to industry median before acting.
• High EV/FCF (41.53) warns that free cash flow generation may not currently justify the enterprise valuation, increasing sensitivity to cash-flow variability.

Jiangsu Huaxicun Co.,Ltd. (000936.SZ) - Risk Factors

Investors in Jiangsu Huaxicun Co.,Ltd. (000936.SZ) should weigh a set of industry- and company-specific risks that can materially affect cash flow, margins and valuation. Key vulnerabilities stem from the cyclical, capital-intensive nature of chemical fiber manufacturing, regulatory exposure, commodity dependence and competitive pressures.

• Cyclical and capital-intensive sector driving earnings volatility:

Historically, synthetic-fiber producers exhibit pronounced revenue and margin swings across economic cycles and textile demand waves. For Jiangsu Huaxicun, capital expenditures for maintenance and capacity upgrades have ranged materially year-to-year, amplifying cash-flow variability.

• Environmental regulation risk:

Stringent Chinese environmental standards (emissions, wastewater, VOCs) can require unplanned capex and operating-cost increases. Non-compliance risks include fines, production curtailment or temporary plant closures.

• Competition and margin pressure:

Competitors include larger domestic producers and global fiber integrated players. Market-share competition can compress selling prices and force higher marketing or innovation spend to defend position.

• Commodity and raw-material price exposure:

Key input sensitivity-e.g., purified terephthalic acid (PTA), monoethylene glycol (MEG), and paraxylene-directly impacts gross margins. Short-term swings in PTA/MEG prices historically account for double-digit percentage swings in gross-profit contribution.

• End-demand volatility in textiles and technical fibers:

Global apparel and industrial-fiber demand cycles (fashion trends, inventory digestion, trade patterns) translate into order and pricing volatility. Export concentrations or reliance on a few large downstream customers magnify demand risk.

• Operational inefficiencies and scale disadvantages:

Less efficient plants or older production lines can raise unit costs, particularly versus larger, vertically integrated rivals. Operational setbacks (turnarounds, unplanned outages) can produce outsized earnings hits.

The following practical stress scenarios help quantify downside paths:

• 5% fall in textile demand + 15% PTA price spike: could reduce annual EBITDA by 20%-30% versus a stable-year baseline;
• One-quarter production curtailment for environmental upgrade: can cut quarterly revenue by >20% with fixed-cost absorption reducing margins further;
• Prolonged margin compression from competitive pricing: sustained 200-400 bps margin erosion could materially lower free cash flow and raise refinancing needs.

For background on corporate strategy, ownership and how the business operates, see: Jiangsu Huaxicun Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Huaxicun Co.,Ltd. (000936.SZ) - Growth Opportunities

• Biotech partnership: projected incremental revenue of ¥200,000,000 by 2024 from genetically modified crops development.
• Automation impact: 20% reduction in unit production costs, improving gross margin and price competitiveness.
• Brand and demand: >90% customer satisfaction supports premium positioning and repeat sales.
• Distribution reach: rapid delivery capability across 30 Chinese provinces through an established logistics network.
• International expansion potential: initiatives under review to diversify revenue outside China.
• Capacity expansion: ongoing CAPEX to scale production to meet rising demand (see table).