Breaking Down Jiangsu Azure Corporation Financial Health: Key Insights for Investors

Jiangsu Azure's recent results demand attention: operating revenue jumped to ¥6.76 billion in 2024 (up 29.38% from ¥5.22 billion), while net profit attributable to shareholders surged to ¥487.84 million in 2024 (a remarkable 246.43% increase), and the first three quarters of 2025 show revenue of ¥5.814 billion (+20.17%) with net profit of ¥513 million (+82.05%); analysts now forecast ¥8.25 billion revenue in 2025 (+22%) and EPS of ¥0.61 (+45%), even as liquidity metrics reveal ¥772.51 million in cash and short-term investments (down 41.68%) against strong operating cash generation-net operating cash flow rose to ¥1.09 billion in 2024 (+98.26%) and Q2 2025 operating cash flow hit ¥307.41 million (+355.11%)-and the balance sheet shows total assets of ¥11.73 billion, liabilities of ¥3.99 billion and total equity of ¥7.74 billion (implying a debt-to-equity ratio of about 51.5%), while other indicators point to improving leverage over five years and growth drivers from LED/optoelectronics, new product launches and expanding lithium battery and BBU shipments; delve deeper for the detailed line-by-line breakdown and what these figures mean for investors.

Jiangsu Azure Corporation (002245.SZ) - Revenue Analysis

• 2024 operating revenue: ¥6.76 billion, up 29.38% from ¥5.22 billion in 2023.
• 2024 net profit attributable to shareholders: ¥487.84 million, up 246.43% year-over-year.
• Q1-Q3 2025 revenue: ¥5.814 billion, up 20.17% year-over-year.
• Q1-Q3 2025 net profit attributable to shareholders: ¥513 million, up 82.05% year-over-year.
• Analysts' 2025 forecast: revenue +22% to ¥8.25 billion; EPS +45% to ¥0.61.
• LED & optoelectronics: >¥50 million profit in Q2 2025; expected ¥150-200 million for full-year 2025.

• Key revenue drivers: increased product demand, recovery in LED/optoelectronics, and operational leverage.
• Profitability drivers: margin expansion, higher contribution from higher-margin segments, and improved cost control.
• Risks to forecasts: demand volatility, component supply pressures, and competitive pricing in LED/optoelectronics.

Jiangsu Azure Corporation (002245.SZ) - Profitability Metrics

Key profitability indicators for Q2 2025 and recent trends provide a snapshot of Jiangsu Azure Corporation's operating efficiency, earnings power, and cash generation capacity.

• Q2 2025 net profit margin: 8.62% (up 33.44% year-over-year).
• Q2 2025 EPS: ¥0.17.
• Five-year EBITDA growth rate (as of June 2025): 3.00%.
• Return on assets (ROA): 5.85%.
• Return on capital: 8.24%.
• Q2 2025 operating cash flow: ¥307.41 million (up 355.11% year-over-year).
• Q2 2025 net profit attributable to shareholders: ¥180.01 million (up 57.17% year-over-year).

Interpreting the numbers:

• Margin expansion (8.62%) combined with a 57.17% rise in net profit indicates improved profitability and possible operating leverage.
• Substantial operating cash flow improvement (¥307.41M, +355.11%) suggests stronger cash conversion and working capital management in Q2 2025.
• Moderate five-year EBITDA growth (3.00%) points to steady, not explosive, underlying earnings growth over the medium term.
• ROA (5.85%) and return on capital (8.24%) show reasonable asset efficiency and capital returns relative to peers in capital-intensive industries.

For additional context on investor composition and ownership trends linked to these profitability shifts, see: Exploring Jiangsu Azure Corporation Investor Profile: Who's Buying and Why?

Jiangsu Azure Corporation (002245.SZ) - Debt vs. Equity Structure

• Total assets (Sep 2025): ¥11.73 billion.
• Total liabilities (Sep 2025): ¥3.99 billion.
• Total equity (Sep 2025): ¥7.74 billion.
• Reported debt-to-equity ratio: ~51.5% (calculated from liabilities/equity).
• Five-year reported trend: debt-to-equity declined from 64.4% to 5.5% over the past five years.
• Operating cash flow covers debt 391.2 times.
• Interest coverage: company earns more interest than it pays (interest coverage >1).
• July 2025: plan to deploy up to ¥300 million of idle raised funds into high-safety, high-liquidity, principal-guaranteed investment products.

• Structural note: with equity of ¥7.74 billion versus liabilities of ¥3.99 billion, the balance sheet shows equity dominance despite mixed ratio signals across reporting periods.
• Liquidity and coverage: extremely high operating cash-flow coverage (391.2×) and positive interest coverage reduce near-term solvency concerns.
• Capital deployment: July 2025 cash-management plan (≤¥300 million) targets low-risk, highly liquid instruments, reflecting a conservative short-term liquidity strategy.

Jiangsu Azure Corporation (002245.SZ) - Liquidity and Solvency

Key liquidity and solvency metrics for Jiangsu Azure Corporation (002245.SZ) show mixed short-term strength and pressures on cash balances, alongside solid long-term asset coverage of liabilities.

• Cash & short-term investments (Sep 2025): ¥772.51 million (‑41.68% year-over-year).
• Short-term assets: ¥5.80 billion vs. short-term liabilities: ¥3.50 billion - short-term coverage remains strong.
• Long-term assets: ¥5.93 billion vs. long-term liabilities: ¥528.50 million - ample long-term solvency cushion.
• Net cash flow from operating activities (2024): ¥1.09 billion, up 98.26% from ¥551.44 million in 2023.
• Net change in cash (Q2 2025): -¥110.80 million, a -1,066.85% change relative to the prior-year quarter.
• Free cash flow (Q2 2025): -¥285.55 million, a 31.27% improvement versus Q2 prior year (less negative).

• Liquidity profile: current assets comfortably exceed short-term obligations, supporting operational flexibility despite reduced cash balances.
• Solvency profile: long-term assets far exceed long-term liabilities, indicating low structural leverage on the long horizon.
• Cash dynamics: a strong rebound in operating cash flow in 2024 contrasts with quarterly cash outflows in Q2 2025 and negative free cash flow, signaling working-capital or investment timing effects.
• Investor considerations: monitor cash conversion, capex and working capital cycles to assess whether the cash decline is temporary or structural.

For context on corporate direction and priorities that may influence liquidity decisions, see Mission Statement, Vision, & Core Values (2026) of Jiangsu Azure Corporation.

Jiangsu Azure Corporation (002245.SZ) Valuation Analysis

• Stock price (Nov 2025): ¥17.14
• Trailing P/E: 27.50
• Forward P/E: 16.8
• Relative/fair price (model): ¥11.24 - implied upside: -34.4%
• Price-to-book (P/B): 2.87
• Analyst target price: ¥20 (rating: Buy, based on revised net profit forecasts)

• Interpretation: the forward P/E of 16.8 implies the market expects meaningful earnings improvement; however, the relative valuation fair price of ¥11.24 and a trailing P/E above the industry average raise valuation risk.
• Balance: P/B of 2.87 signals investors pay a premium for net assets - acceptable if growth justifies it, but increases sensitivity to earnings disappointments.
• Analyst view: target ¥20 (> current ¥17.14) supports a constructive near-term view despite the relative-value caveat.

Jiangsu Azure Corporation (002245.SZ) - Risk Factors

• Leverage shift: debt-to-equity fell from 64.4% to 5.5% over five years, a material de‑risking of capital structure that reduces solvency pressure but may reflect significant deleveraging actions or asset reallocation.
• Debt coverage strength: operating cash flow covers total debt ~391.2 times, indicating ample internal cash generation relative to outstanding debt principal.
• Interest burden: the company's interest coverage ratio is comfortably above 1x, signaling it earns more interest than it pays and diminishing near-term default risk from interest obligations.
• Operating cash flow momentum: net cash flow from operating activities rose 98.26% to ¥1.09 billion in 2024 from ¥551.44 million in 2023, improving liquidity for operations and investments.
• Short-term cash volatility: net change in cash for Q2 2025 was -¥110.80 million, a 1,066.85% decrease year-on-year, highlighting quarter-level cash outflows that merit monitoring for seasonality or one-off uses.
• Free cash flow dynamics: free cash flow for Q2 2025 was -¥285.55 million, but this represents a 31.27% improvement relative to the prior year quarter, showing partial recovery despite negative FCF.

• Key investor considerations:
  • Reduced leverage lowers bankruptcy risk but may signal lower return-on-equity if financed by equity expansion.
  • Large operating cash buffers versus debt provide resilience; however, negative quarterly cash flows and negative FCF in Q2 2025 require monitoring for recurring cash consumption or capex spikes.
  • Interest coverage and operating cash improvements mitigate interest rate sensitivity, yet macroeconomic shocks or demand weakness could erode these cushions.
• For background and broader corporate context, see: Jiangsu Azure Corporation: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Azure Corporation (002245.SZ) - Growth Opportunities

• 2025 consensus: revenue +22% to ¥8.25 billion; EPS +45% to ¥0.61.
• Q2 2025 LED & optoelectronics profit: >¥50 million; FY2025 target: ¥150-200 million.
• New semi-solid cylindrical product launched July 2025; mass-production verification expected by end-2025.
• BBU shipments targeted at 1 million units in 2025; >10 million units projected by 2027.
• Expansion into robotics and EVTOL anticipated to begin in 2026-2027, creating additional TAM exposure.
• Lithium battery segment expected to drive a second growth curve, with unit-level profitability exceeding legacy core businesses.

• Revenue leverage: A 22% top-line jump to ¥8.25 billion (2025) combined with margin expansion from optoelectronics and batteries implies disproportionate EPS upside (consensus +45% to ¥0.61).
• Product cadence: Semi-solid cylindrical product (Jul 2025 launch) and BBU scale (1M units in 2025 → >10M by 2027) are tangible commercialization milestones that support multi-year volume growth.
• Diversification: Entry into robotics and EVTOL (2026-2027) expands addressable markets and reduces reliance on legacy segments.
• Profit mix shift: LED/optoelectronics and lithium batteries are expected to shift the profit pool-LED aiming for ¥150-200M in 2025; batteries forecasted to surpass traditional businesses in unit profitability.