Breaking Down Jizhong Energy Resources Co., Ltd. Financial Health: Key Insights for Investors

Peeling back the numbers behind Jizhong Energy Resources Co., Ltd. (000937.SZ) reveals a company under pressure: quarterly revenue slid to 3.36 billion CNY (down 27.10% QoQ) with TTM revenue at 14.66 billion CNY (a 21.59% YoY decline) and 2024 revenue of 18.73 billion CNY (down 23.01%); profitability is strained with a TTM net profit margin of 3.49%, EPS of 0.11 CNY and a P/E around 47.81, while net income attributable to the parent plunged over 65% YoY to ~348 million CNY in H1 2025; balance-sheet figures show total debt of 21.88 billion CNY, cash of 10.48 billion CNY and a net debt of 11.4 billion CNY (net debt per share 3.23 CNY) alongside a debt-to-equity ratio of 1.01, current ratio 0.92 and quick ratio 0.79 indicating liquidity stress, shareholder pledges of 420,174,676 shares (20.51% of holdings, 11.89% of total capital), a market cap near 19.19-22.12 billion CNY with enterprise value ~36.15 billion CNY, and valuation metrics showing trailing P/E levels as high as 55.12, EV/EBITDA 10.29 and EV/FCF -27.44; management is targeting growth via a planned 5 billion CNY allocation to renewables plus 1 billion CNY for R&D and global expansion ambitions, all of which raise critical questions for investors about valuation, cash flow resilience and the path to sustainable recovery

Jizhong Energy Resources Co., Ltd. (000937.SZ) - Revenue Analysis

Jizhong Energy Resources reported a revenue of 3.36 billion CNY in the quarter ending September 30, 2025, representing a 27.10% decrease from the prior quarter. The trailing twelve months (TTM) revenue is 14.66 billion CNY, a 21.59% year-over-year decline. Annual revenue for 2024 was 18.73 billion CNY, down 23.01% versus 2023. The decline is primarily driven by a significant fall in coal prices and a reduction in coal sales volume of over 27%.

• Quarter (Q3 2025) revenue: 3.36 billion CNY (-27.10% QoQ)
• TTM revenue: 14.66 billion CNY (-21.59% YoY)
• 2024 annual revenue: 18.73 billion CNY (-23.01% YoY)
• Coal sales volume: down >27%

• Primary revenue pressure: lower realized coal prices.
• Secondary pressure: reduced sales volumes (logistics, demand weakness, or mine output adjustments).
• Per-employee productivity: ~415,855 CNY, indicating revenue intensity relative to headcount.

For broader investor context and ownership dynamics, see: Exploring Jizhong Energy Resources Co., Ltd. Investor Profile: Who's Buying and Why?

Jizhong Energy Resources Co., Ltd. (000937.SZ) Profitability Metrics

• Net profit margin (TTM): 3.49% - indicates low margin capture after costs and expenses.
• Net income attributable to parent (H1 2025): ~348 million CNY - down over 65% YoY.
• Earnings per share (EPS, TTM): 0.11 CNY; Price-to-Earnings (P/E): 47.81 - valuation is relatively high versus earnings.
• Return on Equity (ROE): 2.46% - modest shareholder returns.
• Return on Assets (ROA): 1.47% - limited asset profitability.
• Operating profit (2023): 1.21 billion CNY - declined 75.56% vs prior year.

Jizhong Energy Resources Co., Ltd. (000937.SZ) - Debt vs. Equity Structure

• Debt-to-equity ratio: 1.01 - near parity between debt and shareholders' equity, indicating the company funds operations with roughly equal proportions of debt and equity.
• Current ratio: 0.92 - below 1.0, signaling potential short-term liquidity constraints to meet current liabilities with current assets.
• Quick ratio: 0.79 - excludes inventories and confirms tighter immediate liquidity than the current ratio suggests.
• Interest coverage ratio: 2.03 - operating earnings cover interest expense a little over two times, a modest cushion but one that could strain under profit volatility.

• Net debt of 11.40 billion CNY (total debt 21.88B less cash 10.48B) narrows the effective leverage relative to gross debt, reducing some refinancing risk but still leaving meaningful obligations on the balance sheet.
• Enterprise value (36.15B) relative to market cap (22.12B) reflects the material contribution of net debt to the company's valuation and underscores how changes in leverage or cash can shift investor valuation quickly.
• The sub-1.0 current ratio and 0.79 quick ratio highlight the need for working capital management focus - inventory conversion, receivables collection, or short-term financing adjustments may be necessary to avoid liquidity strain.
• Interest coverage at 2.03 suggests earnings provide a modest buffer for interest payments; any sustained earnings decline or interest rate rise could compress this cushion.
• Share pledging of 420,174,676 shares (20.51% of holders; 11.89% of total) is a governance and market-liquidity consideration: forced selling or margin calls on pledged stakes could increase share supply and price volatility.

Jizhong Energy Resources Co., Ltd. (000937.SZ) Liquidity and Solvency

Key short-term and long-term liquidity metrics indicate Jizhong Energy Resources faces some working-capital pressure but retains capacity to service interest. Below are the primary ratios and balance figures driving that assessment.

• Current ratio: 0.92 - current liabilities exceed current assets, signaling potential short-term liquidity tightness.
• Quick ratio: 0.79 - limited immediate liquid buffer once inventories are excluded.
• Interest coverage ratio: 2.03 - operating earnings cover interest expense by just over two times.

Practical implications for investors:

• Short-term liquidity: ratios below 1.0 suggest monitoring of working-capital management and near-term maturities is warranted.
• Leverage: a net debt of 11.4 billion CNY against a market cap of 22.12 billion CNY implies significant financial leverage relative to equity value.
• Interest servicing: an interest coverage ratio of 2.03 indicates earnings provide a modest cushion for interest payments but leave limited margin for downside.
• Balance-sheet flexibility: cash holdings of 10.48 billion CNY partially offset the 21.88 billion CNY debt, but net debt remains sizeable.

For additional investor-focused context and shareholder composition, see: Exploring Jizhong Energy Resources Co., Ltd. Investor Profile: Who's Buying and Why?

Jizhong Energy Resources Co., Ltd. (000937.SZ) - Valuation Analysis

• Trailing P/E: 55.12 (high)
• Forward P/E: 27.22 (implied improvement)
• P/E (alternate/source): 47.81
• P/S: 1.51 (primary) and 1.31 (alternate/source)
• P/B: 1.02 (near book value)
• EV/EBITDA: 10.29 (reasonable for some capital-intensive sectors)
• EV/FCF: -27.44 (negative FCF raising concerns)
• Market capitalization: 22.12 billion CNY
• Enterprise value (EV): 36.15 billion CNY
• Total debt: 21.88 billion CNY
• Cash & equivalents: 10.48 billion CNY
• Net debt: 11.40 billion CNY

• High trailing P/E suggests elevated investor expectations or recent earnings weakness; forward P/E indicates anticipated earnings recovery.
• Neutral P/S and P/B imply valuation roughly in line with revenues and book - not deeply discounted.
• Negative EV/FCF alongside meaningful net debt (11.4bn CNY) highlights cash-flow pressure and leverage risk despite sizable cash balances.

Jizhong Energy Resources Co., Ltd. (000937.SZ) - Risk Factors

• Revenue pressure: falling coal prices and reduced sales volume have driven a significant decline in top-line performance.
• Profitability compression: net profit margin is 3.49%, and reported net income fell by 65% year-on-year, signaling acute margin stress.
• High valuation relative to earnings: EPS is 0.11 CNY with a trailing P/E of 47.81, suggesting market expectations may be stretched given current earnings weakness.
• Leverage risk: debt-to-equity ratio stands at 1.01, indicating the company carries debt roughly equal to its equity base.
• Liquidity constraints: current ratio is 0.92 and quick ratio is 0.79, both below 1.0 and consistent with potential short-term funding pressure.
• Shareholder share pledges: significant pledge activity by controlling shareholders can signal constrained liquidity at the owner level and increase the risk of forced equity sales if margin calls occur.

• Operational sensitivity: a continued decline in coal prices or further volume erosion would likely worsen margins, cash flow and solvency ratios.
• Refinancing and interest-rate risk: with debt roughly equal to equity, rising rates or tight credit conditions could increase finance costs and refinancing difficulty.
• Counterparty and working-capital strain: low current/quick ratios heighten the risk that the company may struggle to meet short-term obligations without asset sales or fresh capital.

Jizhong Energy Resources Co., Ltd. (000937.SZ) - Growth Opportunities

• Target annual revenue growth: 10% (company guidance).
• 2024 allocated capital to sustainable projects: 5.0 billion CNY (solar & wind development).
• 2024 R&D budget: 1.0 billion CNY aimed at operational efficiency and cost reduction.
• 2024 community development allocation: 500 million CNY for local education and health services.
• Employee satisfaction improvement target: +15% through enhanced training and development in 2024.
• Geographic expansion focus: Southeast Asia and Africa via partnerships and investments.

• Accelerate solar and wind project pipeline: prioritize projects with shortened permitting and higher IRR to contribute to the 10% revenue target.
• Deploy R&D to reduce heat-rate, improve coal-to-renewable integration, and lower maintenance costs - targeting a 5-8% cut in unit OPEX.
• Enter JV structures and offtake agreements in Southeast Asia and Africa to lower market entry risk and secure long-term power purchase contracts.
• Allocate 500 million CNY to community programs to strengthen permitting and local support, mitigating project delays and reputational risk.
• Roll out comprehensive training programs to lift employee satisfaction by 15%, reducing turnover and preserving institutional knowledge for new technology deployment.

• Progress on the 5.0 billion CNY renewable deployment (project finance agreements signed, capacity under construction).
• R&D milestones and pilot programs showing quantified OPEX savings.
• New partnership announcements and asset acquisitions in Southeast Asia and Africa.
• Community project rollouts and employee satisfaction survey results.