Breaking Down Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. Financial Health: Key Insights for Investors

Investors watching Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. will want to drill into the numbers: Q1 2025 operating revenue reached 1.382 billion yuan while the company posted a net loss attributable to shareholders of -42.77 million yuan, and H1 2025 revenue slipped to 2.626 billion yuan from 2.827 billion a year earlier; after a 2024 revenue rebound to 5.91 billion yuan (+11.70% YoY) the company still recorded a -398 million yuan net loss for the year, operating cash flow is -265 million yuan, net debt stands around 975.4 million yuan against cash reserves near 550.9 million yuan, market cap is about 7.36 billion yuan with a forward P/E of 27.80, revenue per employee is 2.59 million yuan across 2,110 staff, and revenue drivers include a 10.16% rise in optical material film and a 57.76% surge in polyester functional film-read on to see how these metrics, balance-sheet pressures, liquidity signals and growth plans interact for investors assessing risk and upside

Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. (002585.SZ) - Revenue Analysis

Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. reported mixed top-line momentum across 2024 and the first half of 2025: strong annual growth in 2024 driven by key product segments, but weakening sales and continued losses in early 2025 amid rising capacity and pricing pressure.

• Q1 2025 operating revenue: ¥1.382 billion (YoY +0.07%).
• Q1 2025 net loss attributable to shareholders: ¥42.77 million.
• H1 2025 revenue (ending June 30, 2025): ¥2.626 billion, down from ¥2.827 billion in H1 2024.
• Full-year 2024 revenue: ¥5.91 billion (2024 vs 2023: +11.70%).
• Full-year 2024 net loss: ¥398 million.
• Revenue per employee: ¥2.59 million; total employees: 2,110.

Segment drivers and near-term headwinds:

• Primary growth in 2024 came from:
  • Optical material film: +10.16% (contributor to overall 2024 growth).
  • Polyester functional film: +57.76% (significant expansion in that segment).
• H1 2025 decline attributed to:
  • Industry capacity increases leading to oversupply.
  • Intensified competition pressuring volumes and margins.
  • Reduction in product selling prices, impacting revenue and profitability.
• Profitability remains challenged despite revenue growth in 2024, evidenced by sustained net losses through 2024 and Q1 2025.

For additional investor context and shareholder composition, see Exploring Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. Investor Profile: Who's Buying and Why?

Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. (002585.SZ) - Profitability Metrics

Key profitability indicators for Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. (002585.SZ) show continued losses and cash-generation challenges through 2024-2025, with market expectations priced in via a forward P/E.

• Q1 2025 net loss attributable to shareholders: ¥42.77 million; basic loss per share: ¥0.131.
• H1 2025 (six months ended June 30, 2025) net loss attributable to shareholders: ¥149.47 million; basic loss per share: ¥0.131 (note: basic loss per share reported consistent with Q1 figure).
• Full-year 2024 net loss: ¥398 million; basic loss per share: ¥0.347.
• Operating cash flow (most recently reported): negative ¥265 million.
• Trailing twelve months (ending Sep 2025) diluted EPS: -¥0.34.
• P/E: not applicable due to negative earnings; forward P/E: 27.80.

For background on the company's history, ownership and business model, see: Jiangsu Shuangxing Color Plastic New Materials Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. (002585.SZ) - Debt vs. Equity Structure

• Total debt (Sep 2024): 1.53 billion yuan (up from 972.9 million yuan year‑on‑year).
• Cash reserve (reported): 550.9 million yuan - yielding an approximate net debt of 975.4 million yuan.
• Alternate reported cash position: 492 million yuan against total debt of 1.18 billion yuan (other-period/statement figure suggesting tighter near-term liquidity).
• Net debt-to-equity ratio: ~0.15, indicating moderate leverage relative to equity.
• Liabilities exceed cash + short-term receivables by 2.49 billion yuan, highlighting short-term coverage pressure.
• Market capitalization: ≈7.36 billion yuan; Beta: 1.26 (greater volatility than the market).

• Leverage dynamics: rising gross debt with net debt around 975M suggests the company has taken on additional financing; net debt-to-equity ~0.15 points to moderate leverage but must be interpreted alongside asset quality and earnings.
• Liquidity signals: the 2.49B gap between liabilities and liquid short-term assets is a red flag for near-term obligations; the presence of two different cash/debt snapshots (550.9M vs 492M cash; 1.53B vs 1.18B debt) suggests timing and statement differences-important for cash-flow planning.
• Market perspective: with a market cap of ~7.36B and beta 1.26, equity markets price in above-market volatility and the leverage profile when valuing the company.

Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. (002585.SZ) - Liquidity and Solvency

• Net debt-to-equity ratio: ~0.15 (moderate leverage)
• Cash reserve: ¥550.9 million
• Total debt: ¥1.53 billion
• Operating cash flow (most recent period): -¥265 million
• Shortfall of liquid resources vs. liabilities: ¥2.49 billion
• Market capitalization: ~¥7.36 billion; Beta: 1.26

• Negative operating cash flow (-¥265M) indicates reliance on financing or asset sales to fund operations unless trends reverse.
• Cash (¥550.9M) versus total debt (¥1.53B) suggests limited liquidity cushioning; refinancing risk exists if credit markets tighten.
• Net debt-to-equity of ~0.15 moderates solvency concerns on a relative basis, but absolute shortfalls (¥2.49B) in liquid resources elevate near-term risk.
• Market cap (~¥7.36B) provides equity buffer, but a beta of 1.26 signals higher sensitivity to market swings that could affect access to capital.

Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. (002585.SZ) - Valuation Analysis

• Market capitalization: ¥7.36 billion
• Beta: 1.26 (higher volatility vs. broader market)
• Share price: ¥6.93 - 52-week range: ¥4.17-¥7.86
• Enterprise value (EV): ¥9.519 billion
• Trailing diluted EPS (TTM ending Sep 2025): ¥-0.34
• P/E: Not applicable (reported losses); Forward P/E: 27.80
• Price-to-owner-earnings: Not ranked within Packaging & Containers (industry median: 13.45)

• Negative trailing EPS with a positive forward P/E implies the market is pricing in a forecasted earnings recovery; forward multiple (27.80) reflects investor expectations and recovery risk.
• EV/Market Cap spread (EV ¥9.519bn vs. Market Cap ¥7.36bn) highlights net debt or minority interests contributing to total enterprise valuation.
• Beta >1 suggests higher sensitivity to market moves-useful for portfolio risk allocation and scenario analysis.
• Absence from the price-to-owner-earnings ranking indicates weaker relative cash-based valuation metrics versus Packaging & Containers peers (median 13.45).

Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. (002585.SZ) - Risk Factors

• Highly competitive market dynamics: Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. operates in China's crowded polymer and film sector where scale, technology, and entrenched customer relationships drive margins and growth. Smaller players risk being undercut on price or excluded from large contracts.
• Regulatory and environmental compliance: Plastic production and waste management in China face tightening environmental standards and enforcement. Compliance can raise capital and operating expenditures (upgrades to production lines, emissions control, waste treatment).
• Market overcapacity and price pressure: Domestic overcapacity in plastic films and entry of international producers increase the likelihood of price wars, margin compression, and cyclical revenue declines.
• Exposure to raw material price volatility: The company's cost base is sensitive to petroleum-derived feedstocks (e.g., polyethylene, polypropylene). Volatile petrochemical prices can squeeze gross margins if selling prices lag input cost changes.
• Financial leverage and liquidity risks: With cash of RMB 492 million versus total debt of RMB 1.18 billion, the company presents modest liquidity headroom and potential refinancing risk under tighter credit conditions.
• Equity volatility: A reported beta of 1.26 indicates the stock tends to move more than the broader market, amplifying downside risk in market sell-offs and increasing capital cost for equity financing.

• Operational concentration: Customer or product concentration can magnify revenue swings if major buyers reduce orders or switch suppliers.
• Technology and R&D lag: Failure to keep pace with advanced film technologies (barrier, co-extrusion, biodegradable blends) could reduce competitiveness.
• Macroeconomic sensitivity: Demand for packaging and industrial films correlates with manufacturing and consumer activity; economic downturns reduce volumes.
• Currency and trade risks: Export-oriented sales or imported feedstocks expose margins to FX moves and tariff/regulatory changes.

Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. (002585.SZ) Growth Opportunities

• Capacity expansion: management guidance targets incremental production capacity additions focused on high-value functional films and specialty polymer blends over the next 24-36 months.
• R&D intensity: the company has been increasing R&D spend as a percentage of revenue to accelerate product industrialization and shorten time-to-market for upgraded films.
• Product portfolio shift: emphasis on moving from commodity colored plastic products toward performance films for display modules, photovoltaic backsheets, and recyclable packaging.

• Technological innovation: focused polymer formulations, multilayer coating processes, and surface treatments to meet display and PV specifications.
• Market-integration approach: product roadmaps aligned to OEM demand cycles in consumer electronics and solar manufacturing.
• Product iteration & new R&D: accelerating pilot-to-production transitions for next-gen films (e.g., anti-reflective, barrier, heat-dissipating layers).
• Internationalization: using material science know-how to pursue exports and joint development with overseas partners as display and renewables demand shifts.
• Sustainability and recyclability: R&D into recyclable film chemistries and lower-carbon production routes to access eco-conscious procurement tenders.

• Best case: successful functional-film commercialization leads to margin expansion of 3-5 pts and revenue CAGR of 12%+ over 3 years.
• Base case: partial execution results in modest mix shift, revenue CAGR ~8% and margin uplift ~1-2 pts as capacity ramps.
• Downside: near-term financial headwinds in raw-material cyclicality constrain investment, pushing out payback and preserving current margin profile.

• Quarterly R&D and capex updates vs. guidance (timing and scale of new lines commissioned).
• Product revenue mix disclosure-percentage from high-value functional films vs. commodity colored plastics.
• Gross margin trajectory and ASP trends for film products.
• New customer wins in display or PV OEMs and export order announcements.