Breaking Down Kingenta Ecological Engineering Group Co., Ltd. Financial Health: Key Insights for Investors

Peeling back the numbers behind Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) reveals a company with mixed signals that investors must scrutinize: quarterly revenue jumped to CNY 2.52 billion (up 38.70% sequentially) and TTM revenue sits at CNY 9.25 billion (Y/Y +12.93%), yet the nine months to Sept 30, 2025 show a net loss of CNY 29.48 million and a negative net profit margin of -1.59%; balance-sheet stress is evident with total liabilities of CNY 8.82 billion, net debt of CNY 3.46 billion and a debt-to-equity of 2.29 while liquidity metrics lag (current ratio 0.79, quick ratio 0.30), valuation is ambiguous-market cap CNY 5.95 billion versus enterprise value CNY 9.70 billion and a low P/S around 0.62-but investors should weigh operational cash flow weakness (operating cash flow per share down 38.15%, EV/FCF -87.03) against growth levers like a CNY 200 million capacity expansion, 387 patents and a roughly 6% domestic market share as well as recent market moves (stock down 27% in 30 days, up 12.42% over 52 weeks) before diving into the detailed analysis that follows.

Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) - Revenue Analysis

Key revenue metrics and recent trends for Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ):

• Quarter ending 30 Sep 2025 revenue: CNY 2.52 billion (up 38.70% QoQ).
• Trailing twelve months (TTM) revenue: CNY 9.25 billion (up 12.93% YoY).
• Annual revenue 2024: CNY 8.33 billion (down 2.58% vs. 2023).
• Revenue per employee: ≈ CNY 1.50 million (total employees: 6,182).
• Price-to-sales (P/S) ratio: 0.62.
• Share price declined ~27% over the past 30 days.

• Recent quarter acceleration (CNY 2.52bn, +38.7% QoQ) suggests strong seasonal or product-mix improvement feeding into TTM growth (CNY 9.25bn, +12.93% YoY).
• 2024 annual revenue contraction (CNY 8.33bn, -2.58%) highlights mid‑term volatility prior to the current recovery.
• Low P/S (0.62) signals market valuation discount-could reflect margin, liquidity, or sector risk concerns amplified by a ~27% share price drop in 30 days.
• Revenue per employee (~CNY 1.50m) indicates operational scale; monitor gross and operating margins to assess productivity translate to profitability.

Further investor context and shareholder composition are available here: Exploring Kingenta Ecological Engineering Group Co., Ltd. Investor Profile: Who's Buying and Why?

Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) - Profitability Metrics

• Net loss (9M ended Sep 30, 2025): CNY 29.48 million (vs. net income CNY 180.14 million in same period prior year)
• Net profit margin (TTM): -1.59%
• Return on equity (ROE): -8.64%
• Return on assets (ROA): -0.62%
• Operating income (TTM): -CNY 114.74 million
• Interest coverage ratio: -0.74
• Operating cash flow per share: declined by 38.15%

• Negative margins and ROE/ROA indicate the company is not converting revenues into returns for shareholders.
• Operating loss (TTM) and a negative interest coverage ratio imply potential liquidity and financing pressure.
• The 38.15% drop in operating cash flow per share signals deteriorating cash generation from core activities.

Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) - Debt vs. Equity Structure

• Total liabilities (due within 12 months): CNY 6.69 billion
• Total liabilities (due beyond 12 months): CNY 2.13 billion
• Aggregate total liabilities: CNY 8.82 billion
• Cash on hand: CNY 933.1 million
• Receivables due within 1 year: CNY 607.2 million
• Available short-term liquid assets (cash + receivables): CNY 1.54 billion
• Net debt: CNY 3.46 billion
• Debt-to-equity ratio: 2.29
• Debt-to-EBITDA ratio: 11.02
• Equity-to-assets ratio change: decreased by 8.66%
• Interest coverage ratio: negative

• Leverage: A debt-to-equity of 2.29 signals high financial leverage - equity covers less than half of total debt exposure.
• Liquidity pressure: With only CNY 1.54 billion in near-term liquid assets against CNY 6.69 billion of short-term liabilities, the short-term coverage gap is substantial.
• Debt-servicing risk: Debt-to-EBITDA at 11.02 and a negative interest coverage ratio indicate operating earnings are inadequate to service interest and principal comfortably.
• Capital erosion: An 8.66% decline in the equity-to-assets ratio points to either asset growth funded by liabilities, equity write-downs, or losses reducing net equity.
• Refinancing and covenant risk: Significant near-term liabilities raise refinancing needs; borrowers with similar profiles face higher borrowing costs and covenant constraints.

Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) - Liquidity and Solvency

• Current ratio: 0.79 - current liabilities exceed current assets, indicating potential short-term liquidity pressure.
• Quick ratio: 0.30 - limited ability to meet short-term obligations without relying on inventory.
• Net cash position: -CNY 3.67 billion - net debt position on the balance sheet.
• Operating cash flow per share: down 38.15% - material decline in cash generation from operations per share.
• Interest coverage ratio: negative - earnings insufficient to cover interest expense.
• Equity-to-assets ratio: decreased by 8.66% - reduced equity base relative to total assets.

• Investor considerations: refinancing needs, covenant exposure, and sensitivity to interest-rate movements given negative interest coverage and net debt position.
• Operational focus: prioritize restoring operating cash flow and reducing reliance on short-term borrowing or asset sales.
• Monitoring triggers: signs of improving operating cash flow per share, rising quick ratio toward ≥1.0, and a recovering equity-to-assets ratio.

Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) Valuation Analysis

• Market capitalization: CNY 5.95 billion
• Enterprise value (EV): CNY 9.70 billion
• Price-to-Sales (P/S): 0.70 - below industry average, signaling potential undervaluation on revenue basis
• Price-to-Book (P/B): 2.85 - trading at a premium to book value
• EV/EBITDA: 22.39 - relatively high, suggesting expensive valuation vs. operating earnings
• EV/FCF: -87.03 - negative free cash flow drives a negative ratio, a red flag for cash generation
• 52-week stock change: +12.42%
• Beta: 0.59 - lower volatility relative to the broader market

• Investor considerations: weigh P/S-driven valuation opportunity against elevated EV/EBITDA and negative EV/FCF indicating earnings and cash flow pressure.
• Operational & capital structure factors (debt, capex, working capital) are key to reconciling EV and cash-flow multiples.
• Market sensitivity: lower beta reduces downside volatility but may limit upside in bull markets.
• Further reading on company strategy and long-term priorities: Mission Statement, Vision, & Core Values (2026) of Kingenta Ecological Engineering Group Co., Ltd.

Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) - Risk Factors

• Negative profitability: Net profit margin is -1.59%, signaling that the company is currently losing money on its sales and faces immediate profitability pressure.
• High leverage: Debt-to-equity ratio stands at 2.29, indicating debt is more than twice shareholders' equity and elevating solvency and refinancing risk.
• Short-term liquidity constraint: Current ratio of 0.79 suggests current liabilities exceed current assets, which may cause difficulty meeting near-term obligations.
• Declining operating cash generation: Operating cash flow per share declined by 38.15%, pointing to weakening cash generation from core operations.
• Interest coverage shortfall: Interest coverage ratio is negative, implying operating earnings are insufficient to cover interest expenses and increasing default risk if negative trend persists.
• Weakened equity base: Equity-to-assets ratio decreased by 8.66%, reflecting a reduced buffer of equity relative to total assets and greater reliance on liabilities.

• Potential triggers that could exacerbate these risks include rising interest rates (raising finance costs given high leverage), weaker commodity or fertilizer demand (pressuring margins and cash flow), and any working capital shocks given the sub-1 current ratio.
• Mitigating factors investors should watch: improvements in gross margins, deleveraging actions (debt reduction or equity raises), recovery in operating cash flow, and stabilization or reversal in the equity-to-assets trend.

Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) - Growth Opportunities

• Capacity expansion: CNY 200 million investment to expand nitro-compound and water‑soluble fertilizer production to address regional shortages and capture share.
• Business model shift: moving from a product-centric model to product + service, integrating data processing and online engagement to enhance customer retention and margins.
• Domestic market position: estimated ~6% market share in China (2024), implying runway to gain share in a large, fragmented fertilizer market.
• International expansion: targeted growth in Southeast Asia and Europe to diversify revenue and reduce domestic cyclicality.
• R&D and innovation: 387 patents and 60 scientific & technological awards; active participation in national/provincial projects including the National Key R&D Program.

• Higher capacity utilization from the CNY 200m investment should raise sales of higher‑margin water‑soluble and nitro compounds.
• Service layering (digital agronomy, data analytics, e‑commerce) can increase lifetime customer value and create recurring revenue streams.
• R&D scale (387 patents, 60 awards) supports premium product launches and differentiation in both domestic and export markets.
• National/provincial project involvement reduces R&D cost burden and accelerates commercialization cycles.
• Export push into Southeast Asia and Europe mitigates concentration risk and taps faster‑growing agricultural markets.