Breaking Down Jade Bird Fire Co., Ltd. Financial Health: Key Insights for Investors

Curious whether Jade Bird Fire Co., Ltd. (002960.SZ) is a resilient buy or a risky hold? Take a close look at the numbers: annual revenue was CNY 4.92 billion for FY2024 (down 0.98% year-on-year) and TTM revenue as of 30‑Sep‑2025 stood at CNY 4.76 billion (a 1.79% decline), while the company generated a net profit of CNY 335 million in the first three quarters of 2024 - a steep 33.66% year-on-year drop; liquidity looks solid with CNY 2.48 billion in cash and equivalents and a net cash position of roughly CNY 1.52 billion against total debt of CNY 957.39 million, yet free cash flow was negative at CNY -246.14 million over the TTM; investors should weigh valuation metrics - market cap CNY 8.97 billion, P/S 1.88, TTM P/E ~34.95 (forward P/E 17.08) - alongside strong operational margins (TTM gross margin 35.85%, operating margin 9.28%) and conservative leverage (debt/equity 14.6%, current ratio 4.126) before deciding, and this deep-dive will unpack revenue trends, profitability, liquidity, valuation and key risks such as the 2.72% potential share reduction by the controlling shareholder and an 18.13% drop in market cap year-over-year to help you assess the upside and downside in detail

Jade Bird Fire Co., Ltd. (002960.SZ) Revenue Analysis

• Total revenue (first three quarters 2024): CNY 3.521 billion (YoY -3.4%).
• Fiscal year revenue (2024): CNY 4.92 billion (YoY -0.98%).
• TTM revenue (as of 2025-09-30): CNY 4.76 billion (YoY -1.79%).
• Revenue per employee: ~CNY 852,155.
• Market capitalization (2025-12-12): CNY 8.97 billion; P/S ratio: 1.88.
• Revenue growth trend: 2023 = +8.02%; 2024 = -0.98% (decline in growth rate).

• Trend observation: Revenue growth decelerated from +8.02% in 2023 to negative territory in 2024, with TTM 2025 continuing a modest decline (-1.79%).
• Valuation context: At a market cap of CNY 8.97 billion and P/S 1.88, the market prices the stock at under 2x sales-indicative of moderate expectations given recent revenue softness.
• Operational insight: Revenue per employee of ~CNY 852k suggests relatively high per-head sales productivity for the sector, but declining topline may pressure margins and utilization.

Jade Bird Fire Co., Ltd. (002960.SZ) Profitability Metrics

• Net profit (first three quarters of 2024): CNY 335 million, down 33.66% year-on-year.
• Net profit margin (FY 2024, ending Dec 31, 2024): ~7.2%.
• Operating margin (TTM as of Sept 30, 2025): 9.28%.
• Gross margin (TTM as of Sept 30, 2025): 35.85%.
• Return on equity (TTM as of Sept 30, 2025): 5.45%.
• Earnings per share (TTM as of Sept 30, 2025): CNY 0.29; P/E ratio: 34.17.

• Margins: A gross margin of 35.85% highlights effective production-cost control; operating margin of 9.28% indicates reasonable operating efficiency for industrial safety equipment manufacturing.
• Profitability pressure: The 33.66% YoY decline in net profit through Q3 2024 and a 7.2% net margin for FY 2024 point to near-term earnings headwinds despite healthy gross margins.
• Capital returns and valuation: ROE of 5.45% signals moderate shareholder returns; the P/E of 34.17 (with EPS CNY 0.29) implies market expectations of future growth that exceed current ROE levels.
• Investor considerations: Monitor margin trends (gross → operating → net), working capital needs, and order/backlog dynamics to assess whether net profit recovery aligns with current valuation.

Jade Bird Fire Co., Ltd. (002960.SZ) Debt vs. Equity Structure

• Capital structure tilt: Low debt burden (CNY 957.39M) and modest debt-to-equity (14.6%) imply limited financial leverage and greater resilience to revenue volatility.
• Liquidity strength: CNY 2.48B in cash and a net cash position of ~CNY 1.52B support near‑term obligations and strategic flexibility (M&A, capex, share buybacks, or dividend policy adjustments).
• Short-term coverage: Current ratio of 4.126 and quick ratio of 2.43 indicate ample ability to meet current liabilities without distress.
• Interest obligations: An interest coverage ratio of 80.57 highlights negligible strain from financing costs and room to service incremental debt if needed.

Jade Bird Fire Co., Ltd. (002960.SZ) Liquidity and Solvency

• Operating cash flow (TTM): CNY 526.68 million - strong cash generation from core operations.
• Free cash flow (TTM): CNY -246.14 million - capital expenditures exceeded operating cash flow during the period.
• Cash & cash equivalents (as of 2025-09-30): CNY 2.48 billion - substantial liquidity buffer.
• Total debt: CNY 957.39 million - relatively low absolute debt level.
• Net cash position: CNY 1.29 billion - more cash than debt, supporting solvency.
• Current ratio: 4.126 and Quick ratio: 2.43 - strong short-term coverage of liabilities.

Jade Bird Fire Co., Ltd. (002960.SZ) - Valuation Analysis

• TTM P/E: 34.95 - investors are paying a relatively high multiple for past-year earnings.
• Forward P/E: 17.08 - market anticipates roughly a doubling in earnings or substantial margin expansion.
• P/S: 1.88 - valuation versus revenue indicates moderate revenue-based pricing.
• EV/EBITDA: 14.60 - reflects enterprise-level valuation against operating cash-profit proxy.
• EV/Sales: 1.80 - enterprise valuation roughly in line with the equity P/S.
• P/B: 1.42 - stock trades at a premium to book value but not at an extreme multiple.
• Market cap (Dec 12, 2025): CNY 8.97 billion; Share price: CNY 10.25.

Jade Bird Fire Co., Ltd. (002960.SZ) - Risk Factors

• Controlling shareholder dilution risk: In August 2024 Beijing Beida Jade Bird Huanyu Technology Co., Ltd. announced plans to reduce holdings by up to 20 million shares (2.72% of total share capital), potentially increasing free float and short-term share volatility.
• Earnings deterioration: Net profit fell ~33.66% in the first three quarters of 2024 vs. the same period in 2023, signaling pressure on margins and operational performance.
• Moderate profitability: Fiscal year 2024 net profit margin was approximately 7.2%, which limits cushion against adverse revenue shocks.
• Cash flow strain: TTM free cash flow was negative CNY -246.14 million, indicating capital expenditures and/or working capital demands exceeded operating cash generation.
• Valuation vs. earnings: TTM EPS is CNY 0.29 with a P/E of 34.17, reflecting elevated market expectations for growth despite recent profit declines.
• Market sentiment risk: Market capitalization fell 18.13% between 31-Dec-2024 and 11-Dec-2025, suggesting reduced investor confidence and greater downside risk if fundamentals do not improve.
• Execution and funding risk: Negative FCF plus capex needs could force equity or debt raises, diluting shareholders or increasing leverage.
• Concentration risk: Large shareholding by a related party means transactional or strategic moves by the controlling shareholder can materially affect liquidity and price discovery.

• Investors should monitor: announcements on the planned share reduction execution, quarterly updates on net profit and margins, cash flow trends and capex guidance, and any financing moves that could alter capital structure.
• Additional context and corporate orientation available at: Mission Statement, Vision, & Core Values (2026) of Jade Bird Fire Co., Ltd.

Jade Bird Fire Co., Ltd. (002960.SZ) - Growth Opportunities

• Analyst forecasts: earnings compound annual growth rate (CAGR) of 30.2% and revenue CAGR of 12.8% - signaling above-market profit expansion relative to top-line growth.
• ROE trajectory: forecasted return on equity of 9.2% in three years, implying improving capital efficiency and shareholder returns.
• Market sentiment: market capitalization up 11.18% over the past year, reflecting positive investor confidence.

• Dual-platform model - hardware products combined with digital platforms - creates multiple revenue streams and higher customer stickiness across commercial, industrial, and government segments.
• Proven track record - secured contracts for high-profile venues (e.g., Zhongnanhai), multiple Olympic Games, and international expositions - demonstrates technical capability and reliability for large-scale, mission-critical deployments.
• Strong cash conversion - substantial operating cash flow relative to net income indicates effective working capital management and resilient underlying business economics that can fund expansion or R&D without overreliance on external financing.

• Addressable markets: ongoing regulatory tightening and infrastructure upgrades in China plus selective international projects create recurring demand for integrated fire-safety systems and digital monitoring services.
• Expansion pathways: cross-selling hardware into existing platform accounts, monetizing software-as-a-service features, and bidding for high-margin public-sector contracts.