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

Peel back the headlines and discover why Jiangsu Yinhe Electronics Co., Ltd. (002519.SZ) demands a closer look: operating revenue for the nine months ending September 30, 2025 dropped to CNY 332.42 million, a steep 59.12% decrease year-over-year, while trailing twelve-month revenue has plunged to CNY 48.17 million (a 53.14% decline), coinciding with a nine-month net loss of CNY 40.16 million versus a CNY 141.95 million profit in the prior year; the TTM picture is grimmer with net income at CNY -867.02 million and an EPS of -0.77, gross profit margin of -125.96%, operating margin of -201.56% and net margin of -239.34%, yet the balance sheet shows low leverage (debt-to-equity ~0.03% with total debt CNY 86 million), healthy liquidity (cash CNY 254 million, current ratio 3.60, quick ratio 2.54) and a net cash position of CNY 1.03 billion - a contrast to negative operating cash flow (TTM CNY -484.81 million) and free cash flow (TTM CNY -549.77 million) that underpins major valuation tensions as the market prices the company at a market cap of CNY 6.15 billion with a P/S of 18.51 and P/B of 2.65, while strategic exposures-from defense contracts and EV/IoT tailwinds to regulatory, supply-chain and technological risks-frame a high-stakes trade-off for investors to parse in the sections that follow.

Jiangsu Yinhe Electronics Co.,Ltd. (002519.SZ) - Revenue Analysis

• Operating revenue (9 months ending Sep 30, 2025): CNY 332.42 million - down 59.12% vs. same period 2024.
• Trailing twelve months (TTM) revenue: CNY 48.17 million - down 53.14% YoY.
• Net result (9 months ending Sep 30, 2025): net loss CNY 40.16 million vs. net income CNY 141.95 million in prior-year period.
• TTM gross profit margin: -125.96% (cost of revenue substantially exceeds revenue).
• TTM operating profit margin: -201.56% (operational costs far outpace revenue).
• TTM net profit margin: -239.34% (large net losses relative to revenue).

• Sharp revenue contraction (both 9M and TTM) points to demand loss, customer attrition, pricing pressure, or order cancellations.
• Negative gross margin indicates pricing below cost or significant inventory write-downs/returns - unsustainable at current levels.
• Operating and net margins deeply negative, implying fixed-cost leverage is working against the company and cash burn risk is high.
• Net loss reversal from positive to negative in one year signals a material business turning point requiring capital, cost restructuring, or strategic pivot.

• Cash flow strain given operating losses and negative margins; potential need for external financing or asset disposals.
• Working capital pressure if receivables or inventories are impaired while revenue collapses.
• Credit covenant and supplier-supply continuity risks if losses persist.

Jiangsu Yinhe Electronics Co.,Ltd. (002519.SZ) Profitability Metrics

• Net result (9 months ending Sep 30, 2025): net loss CNY 40.16 million vs. net income CNY 141.95 million (same period 2024).
• Trailing twelve months (TTM) net income: CNY -867.02 million; loss per share: CNY -0.77.
• Operating profit margin (TTM): -201.56% - severe operating losses relative to revenue.
• Gross profit margin (TTM): -125.96% - cost of revenue exceeds operating revenue.
• Return on equity (ROE): -28.54% - negative shareholder returns.
• Return on assets (ROA): -10.82% - assets not generating positive returns.

• Key implications: sustained negative margins and large TTM loss indicate operational and cost-structure stress.
• Investors should examine cash flow, liquidity, and restructuring plans alongside these profitability figures.

Jiangsu Yinhe Electronics Co.,Ltd. (002519.SZ) - Debt vs. Equity Structure

• Debt-to-Equity Ratio: 0.03% - extremely low leverage, indicating near-total financing through equity rather than debt.
• Total Debt: CNY 86 million; Cash & Cash Equivalents: CNY 254 million - net cash position provides a liquidity buffer.
• Equity (Book Value): CNY 2.32 billion; Book Value per Share: CNY 2.06 - sizeable equity base relative to debt.
• Current Ratio: 3.60 - strong short-term solvency.
• Quick Ratio: 2.54 - sufficient immediate liquidity excluding inventories.
• Interest Coverage Ratio: -17,435.24 - operating income is far below interest obligations (negative coverage), signaling operating losses or negligible operating income relative to interest expense.

• Liquidity profile: cash (CNY 254M) exceeds short-term debt exposure and supports working capital given current and quick ratios well above 1.0.
• Capital structure implication: with debt at CNY 86M against equity of CNY 2.32B, the company has minimal financial leverage and limited interest-bearing obligations relative to its equity base.
• Profitability/coverage concern: the extreme negative interest coverage ratio highlights operating income insufficient to cover interest - a red flag for recurring interest servicing if operating losses persist.
• Investor lens: low leverage reduces solvency risk, but negative interest coverage necessitates scrutiny of earnings volatility, margins, and non-operating items affecting EBIT.

Jiangsu Yinhe Electronics Co.,Ltd. (002519.SZ) - Liquidity and Solvency

Key liquidity and solvency metrics paint a mixed picture: strong short-term coverage and a healthy net cash buffer juxtaposed with negative operating cash flow and free cash flow pressures.

• Current ratio: 3.60 - ample short-term assets relative to short-term liabilities.
• Quick ratio: 2.54 - indicates ability to meet short-term obligations without relying on inventory.
• Net cash position: CNY 1,030,000,000 - a substantial liquidity cushion.
• Operating cash flow (TTM): CNY -484,810,000 - negative cash generation from core operations.
• Capital expenditures (TTM): CNY -64,960,000 - continued investment activity despite operating outflows.
• Free cash flow (TTM): CNY -549,770,000 - negative FCF reflecting operational and investment cash demands.

Implications for investors include the comfort of strong short-term solvency and a net cash buffer, counterbalanced by persistent negative cash conversion and FCF strain that may affect flexibility going forward. For governance and strategic context see Mission Statement, Vision, & Core Values (2026) of Jiangsu Yinhe Electronics Co.,Ltd.

Jiangsu Yinhe Electronics Co.,Ltd. (002519.SZ) - Valuation Analysis

• Market capitalization: CNY 6.15 billion
• Enterprise value (EV): CNY 5.12 billion
• Price-to-Sales (P/S): 18.51 - indicates high revenue multiple
• Price-to-Book (P/B): 2.65 - market values equity at 2.65× book value
• Price-to-Tangible-Book (P/TBV): 2.76 - premium on tangible asset base
• Earnings per Share (EPS, FY2024): CNY -0.61 - loss per share
• Price-to-Earnings (P/E): Not applicable due to negative earnings

• High P/S (18.51) suggests investor expectations for future revenue growth or premium pricing; without profitable EPS, the multiple implies growth/thematic valuation rather than current earnings support.
• P/B of 2.65 and P/TBV of 2.76 show the market pays materially above both total and tangible book - investors are valuing intangibles, growth potential, or strategic positioning.
• Negative EPS (CNY -0.61) removes P/E as a usable valuation gauge and increases reliance on revenue, book, and EV-based metrics for relative valuation and cash-flow forecasting.

Jiangsu Yinhe Electronics Co.,Ltd. (002519.SZ) - Risk Factors

• Market and Competitive Risk: The company competes with larger domestic and international electronics and components manufacturers, which can pressure margins, market share, and pricing power.
• Regulatory and Environmental Risk: Compliance costs and potential liabilities stemming from environmental rules (waste electronics, emissions, wastewater) can increase capex and operating expenses.
• Operational and Supply-Chain Risk: Concentration in regional suppliers and reliance on specific raw materials expose the company to procurement disruptions and input-price volatility.
• Financial Risk: Historical operating losses and negative operating cash flow raise solvency and refinancing concerns, limiting strategic flexibility and making the company sensitive to interest-rate and lending conditions.
• Market-Demand Risk: Cyclical fluctuations in demand for electronic components and unpredictable OEM orders can create inventory buildups or revenue shortfalls.
• Technological Risk: Rapid product cycles require sustained R&D investment; failure to innovate can produce obsolescence and rapid margin erosion.

• Credit and Liquidity Channels - metrics to watch:
  • Operating cash flow (12-month): negative readings indicate reliance on external financing.
  • Current ratio and quick ratio: absorption of liquidity shocks depends on these short-term metrics.
  • Net debt / EBITDA: high leverage magnifies refinancing and covenant risk, especially if EBITDA is suppressed by losses.
• Operational Indicators - early warning signs:
  • Rising DSO/DPO and inventory days - suggest working-capital strain.
  • Supplier concentration above 20-30% of purchases - increases single-source disruption risk.
• Regulatory and Compliance Triggers:
  • New local environmental mandates or stricter e-waste recycling quotas could require multi-year capex and higher operating costs.

Jiangsu Yinhe Electronics Co.,Ltd. (002519.SZ) - Growth Opportunities

• Core products: intelligent terminal equipment with three-network fusion and multi-screen interactive systems targeting consumer electronics, commercial displays, and control-room applications.
• Adjacency growth: printed circuit boards (PCBs), precision electronic components, and system integration services for EV chargers, telecommunication base stations, and consumer multimedia devices.
• Addressable markets: EV charging infrastructure, 5G/6G radio access equipment, IoT endpoints, and defense electronics modernization initiatives.

• Product diversification: Expand modular multi-screen systems into automotive infotainment and smart-home hubs to leverage existing LCD/interactive technology and increase ASPs.
• Defense & government contracts: Use established government relationships and qualifying certifications to pursue higher-margin, long-cycle defense modernization contracts-converting backlog into multi-year revenue streams.
• PCB and component scale-up: Increase PCB production capacity and precision component capabilities to capture a larger share of EV, 5G and IoT supply chains where content per vehicle/device is rising.
• Strategic partnerships: Target alliances with Tier‑1 EV OEMs, telecom equipment suppliers, and system integrators to accelerate certification cycles and secure design wins.
• R&D focus: Maintain or increase R&D intensity (targeting 5-7% of revenue over 2-3 years) to develop higher-margin system-level solutions (embedded software, control algorithms, secure connectivity).
• Supply-chain resilience: Localize key upstream components and dual-source critical PCBs to mitigate import disruptions and improve gross margins.

• CapEx allocation: Prioritize automation for PCB lines and SMT capacity expansions-target incremental capex of RMB 120-200 million phased over 18-36 months to support higher-volume EV/5G demand.
• Margin expansion: Shift product mix toward integrated solutions and software-enabled offerings to improve gross margin from ~18% toward mid-20s percentage points over a 3-year horizon.
• Working capital efficiency: Reduce DSO/DPO imbalances to free cash for R&D and targeted M&A in niche defense electronics or power conversion modules.
• M&A and JV activity: Pursue bolt-on acquisitions or joint ventures to gain competencies in power electronics for EV chargers, RF front-end modules for 5G, or middleware for multi-screen interactivity.

• Quarterly revenue split by segment (consumer terminal, PCB/components, defense/infrastructure).
• R&D as % of revenue and number of new product launches tied to EV/5G/IoT.
• Order backlog evolution and conversion rates for defense and infrastructure contracts.
• Gross margin trajectory and capacity utilization on key production lines.
• Strategic partnership announcements, government contract awards, and certifications for automotive/telecom standards.