Breaking Down Jinlongyu Group Co., Ltd. Financial Health: Key Insights for Investors

Peeling back the financials of Jinlongyu Group Co., Ltd. reveals a compelling mix of momentum and caution: in the first three quarters of 2025 revenue surged to 3.733 billion yuan (up 41.34% year‑on‑year) even as net profit attributable to shareholders fell to 105 million yuan (down 17.00%), producing a slimmer net margin (~2.82%) versus ~3.8% in 2024 and an EPS of 0.33 yuan that translates to a lofty P/E of 114.37 against an industry median of 25.71; balance sheet strengths include cash equivalents of 910.8 million yuan and a net cash position of 418.8 million yuan with modest leverage (debt-to-equity 0.41) and comfortable liquidity (current ratio 1.60, quick ratio 1.33, interest coverage 13.18), yet operational cash flow of 59.74 million yuan was overshadowed by capex of 241.49 million yuan producing negative free cash flow of 181.75 million yuan, while valuation metrics-EV/EBITDA at 61.70, EV/FCF at -70.14, P/S 2.69 and P/B 6.03-signal a high premium that investors must weigh alongside a planned 1.2 billion yuan investment in a solid‑state battery materials base, an Altman Z‑Score of 4.09 and Piotroski F‑Score of 4, and the attendant profitability, cash‑flow and execution risks as the company pursues new energy and international expansion; read on to examine each metric, valuation and risk factor in detail.

Jinlongyu Group Co., Ltd. (002882.SZ) - Revenue Analysis

• Operating revenue (first three quarters 2025): ¥3,733,000,000 - +41.34% YoY vs same period 2024.
• Net profit attributable to shareholders (first three quarters 2025): ¥105,000,000 - -17.00% YoY.
• Net profit after deducting non‑recurring gains and losses (first three quarters 2025): ¥99,600,000 - -18.92% YoY.
• Full‑year revenue (2024): ¥3,680,000,000 - -6.53% vs 2023.
• Net income (2024): ¥140,140,000 - -14.14% vs 2023.

• Magnitude: 2025's first three quarters revenue already slightly exceeds full‑year 2024 revenue, signaling strong top‑line recovery.
• Profitability gap: sizable revenue growth has not translated to net profit growth - attributable profit fell 17% while core profit (ex non‑recurring) fell 18.92%.
• Implied drivers: potential margin compression from higher input costs, pricing mix shifts, increased operating expenses, or limited operating leverage despite higher sales volume.
• Reference for broader corporate context: Mission Statement, Vision, & Core Values (2026) of Jinlongyu Group Co., Ltd.

Jinlongyu Group Co., Ltd. (002882.SZ) - Profitability Metrics

• Revenue (first 3 quarters 2025): ¥3.733 billion; Net profit: ¥105 million; Net profit margin: 2.82%.
• Revenue (full-year 2024): ¥3.680 billion; Net profit: ¥140.14 million; Net profit margin: 3.8%.
• ROE (first 3 quarters 2025): 5.4% - modest return relative to shareholders' equity.
• EPS (TTM ending Mar 2025): ¥0.33; P/E (based on EPS): 114.37.
• Industry median P/E: 25.71 - Jinlongyu's P/E is materially higher, implying relative premium or potential overvaluation.
• Despite revenue growth from ¥3.68bn (2024) to ¥3.733bn (first 9 months 2025 annualized trend), net profit declined - signals possible cost or efficiency pressures.

• Key numeric takeaways: net margin compression from 3.8% (2024) to 2.82% (1-3Q 2025); EPS ¥0.33 and P/E 114.37 vs industry 25.71.
• Operational note: declining net profit amid rising/topline stability suggests cost-of-sales, SG&A, or one-off items negatively affecting bottom line and margin profile.

Jinlongyu Group Co., Ltd. (002882.SZ) - Debt vs. Equity Structure

• Total debt: 492.0 million yuan
• Cash and cash equivalents: 910.8 million yuan
• Net cash position: 418.8 million yuan (cash minus debt)
• Debt-to-equity ratio: 0.41 - indicating modest leverage
• Current ratio: 1.60 - adequate coverage of short-term obligations
• Quick ratio: 1.33 - liquidity excluding inventory remains strong
• Interest coverage ratio: 13.18 - operating income comfortably covers interest expense

Jinlongyu Group Co., Ltd. (002882.SZ) - Liquidity and Solvency

• Operating cash flow (TTM): 59.74 million yuan - positive cash generation from core business.
• Capital expenditures (TTM): 241.49 million yuan - substantial reinvestment.
• Free cash flow (TTM): -181.75 million yuan - negative, reflecting heavy capex.
• Altman Z-Score: 4.09 - suggests low bankruptcy risk and solid solvency.
• Piotroski F-Score: 4 - moderate financial strength with operational improvement opportunities.

Jinlongyu Group Co., Ltd. (002882.SZ) - Valuation Analysis

• EV/EBITDA: 61.70 - very high, signaling the market is paying a steep multiple for current operating earnings.
• EV/FCF: -70.14 - negative free cash flow and a negative ratio, indicating the company is not generating sufficient free cash to justify enterprise value.
• P/S: 2.69 - above typical industry medians for comparable consumer/manufacturing peers.
• P/B: 6.03 - materially above common sector book multiples, reflecting intangible/earnings premium or thin tangible equity base.
• Forward dividend yield: 0.80% vs industry median 1.8% - lower yield, pointing to limited cash return to shareholders.

Jinlongyu Group Co., Ltd. (002882.SZ) - Risk Factors

• 2025 capital expenditure concentration: management guidance and disclosures indicate a planned ~1.2 billion yuan investment in a solid‑state battery materials production base, plus additional facility upgrades and capacity expansion across wire & cable operations. This large, concentrated outlay can strain short‑term liquidity and elevate financing needs.
• Profitability deterioration despite top‑line growth: recent reporting shows revenue growth while net profit has declined, signaling margin pressure from higher input costs, ramp‑up expenses, or weaker operational efficiency.
• High valuation vs. peers: the company is trading at a P/E materially above typical industry medians, increasing downside risk if growth or margin expansion disappoints.
• Negative free cash flow: capital spending outpaces cash generated from operations, implying potential reliance on external financing (debt or equity) and dilution or leverage buildup if sustained.
• Competitive and market expansion risks: core wire & cable markets are competitive; moves into battery materials and new verticals introduce execution risk, customer concentration shifts, and potential misalignment of capabilities.
• Project and financing execution risk: large, multi‑year projects amplify exposure to construction delays, cost overruns, and interest cost volatility-particularly when funded by short‑term or variable‑rate debt.

• Drivers of the net profit decline: higher raw material costs (copper, aluminum, chemical precursors), ramp and depreciation from new capacity, and possible one‑off expenses tied to new projects.
• Financing implications: negative FCF and large capex increase probability of new debt issuance or equity dilution; interest coverage and leverage ratios should be monitored quarterly.
• Valuation sensitivity: at a P/E near 38x, the stock is sensitive to modest EPS disappointments-earnings misses or slower margin recovery could produce outsized share price volatility.
• Operational execution risks: moving into solid‑state battery materials requires supply chain, quality control, and technical capabilities different from cable manufacturing; execution missteps could delay revenue generation and raise unit costs.

Jinlongyu Group Co., Ltd. (002882.SZ) - Growth Opportunities

• Planned Huizhou solid‑state battery materials production base targets entry into the fast‑growing new energy materials value chain, addressing battery safety and energy density trends.
• High‑quality, specialized wire & cable products (fire‑resistant, low‑smoke halogen‑free, high‑voltage/communication cables) enable premium pricing and niche market capture where safety and performance command higher margins.
• Export expansion to markets including Singapore, Australia and Hong Kong supports revenue diversification and reduces single‑market concentration risk.
• Development of solid‑state battery materials and related technologies aligns with global sustainability and electrification megatrends, opening channels to battery manufacturers and automotive OEMs.
• Strategic partnerships in the new energy sector (R&D, pilot production, offtake agreements) could accelerate time‑to‑market and share risk for capital‑intensive projects.
• Established domestic brand presence and channel relationships provide springboard for cross‑selling new materials and specialized cable products into existing customer base.

• Key execution metrics investors should monitor: CapEx pace and funding for Huizhou project, pilot production yields and yields improvement timeline, gross margin trajectories for premium cable lines, export order backlog by geography, and partnership/MOU conversions into firm offtake contracts.
• Market context: global demand for battery materials and high‑performance cables is expanding-compound annual growth estimates for battery materials and EV‑related demand commonly range 15-25% depending on subsegment-suggesting meaningful upside if Jinlongyu secures technology and customers.