Breaking Down Jushri Technologies, INC. Financial Health: Key Insights for Investors

Dive into a data-driven look at Jushri Technologies, INC. (300762.SZ): in 2024 the company posted operating income of 353.33 million yuan (up 12.97% from 2023) while Q1 2025 surged to 126 million yuan - an 84.41% year-on-year jump - yet 2024 still closed with a net loss of -123.89 million yuan (improved 34.71% vs. prior year) even as Q1 2025 delivered a turnaround net profit of 13 million yuan (up 231.84% YoY); margins tell a mixed story with a 2024 gross margin of 43.28% and a notable rebound to 37.56% in Q1 2025 alongside a 2024 operating margin of -20.31% and EBITDA margin of -11.27%; balance sheet and liquidity metrics include total debt of 1.06 billion yuan, a debt-to-equity ratio of 0.44, a current ratio of 2.07, a quick ratio of 1.64, an alarming interest coverage of -16.32, and a cash and equivalents buffer of 1.29 billion yuan despite negative operating cash flow of -107.5 million yuan; valuation as of July 1, 2025 shows a market cap of 14.27 billion yuan with a trailing P/E of 223.88, forward P/E of 50.49, P/S of 34.73 and EV/Sales of 33.66 - read on for a deep dive into risks, growth levers like low-orbit satellite communications and IP (33 patents, 67 software copyrights), and what these figures mean for investors assessing Jushri's near-term outlook.

Jushri Technologies, INC. (300762.SZ) - Revenue Analysis

• Operating income (2024): 353.33 million yuan, up 12.97% from 312.75 million yuan in 2023.
• Q1 2025 operating income: 126 million yuan, up 84.41% year-on-year, indicating strong early-2025 revenue acceleration.
• 2024 net result: net loss of 123.89 million yuan despite revenue growth.
• 2024 gross margin: 43.28%, highlighting scope for cost and margin optimization.
• Primary growth engine: low-orbit satellite communications segment drove 2024 revenue gains.

• Implication of figures: accelerating Q1 2025 revenue points to improved operational leverage ahead, but a 123.89 million yuan net loss in 2024 underscores ongoing cost, SG&A, or non-operating expense pressures.
• Margin focus: with a 43.28% gross margin in 2024, targeted reductions in direct costs and supply-chain efficiencies could materially improve profitability if revenue growth persists.

Jushri Technologies, INC. (300762.SZ) - Profitability Metrics

Key headline figures for Jushri Technologies, INC. illustrate a company moving from larger losses toward profitability in early 2025, while still showing operational pressures through negative operating and EBITDA margins in 2024.

• Net income trend: 2024 net loss of -123.89 million CNY versus estimated -189.74 million CNY in 2023 (34.71% improvement).
• Quarterly recovery: Q1 2025 net profit of 13.00 million CNY, up 231.84% from ~3.92 million CNY in Q1 2024.
• Profitability structure: strong reported gross margin in 2024 (43.28%) but a reported rebound figure of 37.56% in Q1 2025.
• Operational drag: operating margin of -20.31% and EBITDA margin of -11.27% in 2024 indicate continued cost/efficiency issues.
• Shareholder returns: ROE at -3.70% in 2024 signals negative returns on equity despite net-loss improvement.

Investor-focused considerations:

• Improving bottom line trajectory (loss contraction in 2024, profitable Q1 2025) suggests early-stage turnaround momentum.
• Negative operating and EBITDA margins highlight that margin recovery must come from cost controls or scaling revenue while maintaining gross margins.
• ROE remains negative; equity holders should monitor whether profitability persists beyond a single quarter.
• Compare quarterly cadence and cash-flow metrics alongside these margins before adjusting valuation assumptions.

For broader corporate context and background on business model and ownership, see: Jushri Technologies, INC.: History, Ownership, Mission, How It Works & Makes Money

Jushri Technologies, INC. (300762.SZ) - Debt vs. Equity Structure

• Total debt: 1.06 billion yuan
• Debt-to-equity ratio: 0.44 (moderate leverage)
• Current ratio: 2.07 (adequate short-term liquidity)
• Quick ratio: 1.64 (sufficient immediate asset coverage)
• Interest coverage ratio: -16.32 (operating losses or negative EBIT relative to interest)
• Cash & equivalents: 1.29 billion yuan (substantial liquidity cushion)

• Leverage profile: A 0.44 debt-to-equity ratio indicates conservative to moderate financial leverage relative to equity, limiting balance-sheet vulnerability from debt alone.
• Liquidity strength: Current and quick ratios (2.07 and 1.64) and 1.29 billion yuan in cash provide strong near-term liquidity to fund operations, working capital and short-term obligations.
• Profitability risk: The negative interest coverage ratio (-16.32) suggests recurring operating losses or low EBIT; reliance on cash reserves or refinancing would be needed if losses persist.
• Cash vs. debt: With cash & equivalents (1.29B) exceeding total debt (1.06B), the firm technically could cover debt fully with on-hand cash, but using cash to eliminate debt would trade liquidity for lower leverage.
• Refinancing and covenant risk: Negative coverage increases refinancing sensitivity and potential covenant pressure; lenders may demand higher spreads or stricter terms.
• Investor focus areas: Monitor operating profitability, cash-flow generation (operating cash flow and free cash flow), debt maturities and any off-balance-sheet obligations that could alter leverage dynamics.

Jushri Technologies, INC. (300762.SZ) - Liquidity and Solvency

• Current ratio: 2.07 - indicates the company has more than enough current assets to cover short-term liabilities.
• Quick ratio: 1.64 - implies the company can meet immediate obligations without relying on inventory liquidation.
• Debt-to-equity ratio: 0.44 - reflects a conservative leverage position with a reasonable mix of debt and equity financing.
• Interest coverage ratio: -16.32 - signals operating losses (or low operating profit) relative to interest expense, meaning interest obligations are not being met from operating income.
• Total cash & equivalents: ¥1.29 billion - provides a strong liquid buffer and financial flexibility.
• Operating cash flow: -¥107.5 million - indicates core business operations consumed cash during the period.

• Practical implications for investors: strong immediate liquidity (ratios and cash balance) reduces short-term solvency risk, but persistent negative operating cash flow and negative interest coverage raise concerns about earnings quality and sustainability.
• Key monitoring items: trends in operating cash flow, improvement in operating profit to restore positive interest coverage, and use of the ¥1.29 billion cash buffer (capex, debt repayment, or working capital).

Jushri Technologies, INC. (300762.SZ) - Valuation Analysis

Key valuation metrics as of July 1, 2025 show Jushri Technologies trading at a significant premium across earnings, sales, book value and enterprise-value measures, reflecting strong investor growth expectations and a stretched absolute valuation.

• Market capitalization: 14.27 billion yuan
• Trailing P/E: 223.88 - indicates very high past-12-month earnings multiple
• Forward P/E: 50.49 - market anticipates material earnings improvement
• P/S: 34.73 - investors paying a large premium relative to sales
• P/B: 6.03 - valuation well above book value
• EV/Sales: 33.66 - enterprise-level valuation relative to revenue is elevated

Practical investor takeaways:

• High trailing P/E (223.88) signals reliance on future earnings growth; downside risk if growth disappoints.
• Forward P/E (50.49) narrows the gap, but still implies above-average required growth rates to justify price.
• Very high P/S (34.73) and EV/Sales (33.66) suggest valuation is growth-priced rather than asset- or cash-flow-priced.
• P/B of 6.03 indicates limited margin of safety relative to book liquidation value.

For background context on the company's history, ownership and business model, see: Jushri Technologies, INC.: History, Ownership, Mission, How It Works & Makes Money

Jushri Technologies, INC. (300762.SZ) - Risk Factors

• Intense competition in LEO satellite communications: global and domestic peers expanding constellations, ground segment solutions and downstream services may compress pricing and limit market share gains for Jushri.
• Revenue sensitivity to order flow: historical order timing and contract seasonality create quarter-to-quarter revenue volatility; dependence on a handful of large contracts amplifies this effect.
• Execution risk on new product launches: delays or underperformance of planned payloads, user terminals or hosted payload services can defer revenue and increase go‑to‑market costs.
• Receivables and cash‑flow pressure: elevated days sales outstanding (DSO) and concentration in receivables from public-sector or large industrial customers pose collections risk.
• Operational profitability concerns: negative operating margins reflect high R&D, manufacturing scale-up, and fixed overhead absorption issues that must improve to reach sustainable profitability.
• Exposure to government‑linked clients: meaningful revenue from state or policy‑driven programs ties company performance to regulatory or funding shifts.

• Competitive risk implications: market share erosion could force increased SG&A or price concessions, pressuring margins and growth targets.
• Order/demand volatility implications: a 10-20% swing in large contract timing materially changes cash generation and capital needs in the near term.
• Product launch implications: a delayed satellite/or terminal program can shift multi‑year revenue curves and increase capital expenditure.
• Receivable recovery implications: slower collections (DSO rising >120 days) would raise working capital financing needs and elevate borrowing costs.
• Operational efficiency implications: turning operating margin positive requires improved manufacturing yields, lower per‑unit costs, and higher utilization of ground and space assets.
• Government client concentration implications: policy changes, procurement cycles, or export restrictions could reduce order visibility and payment timing certainty.

Jushri Technologies, INC. (300762.SZ) Growth Opportunities

• Low-orbit satellite communication subsystems: modular product lines and payload subsystems positioned for unit-based sales to constellation integrators.
• Constellation construction participation: systems integration, testing, and recurring maintenance/service contracts with multi-year revenue visibility.
• Rail and urban transit expansion: tailored secure-comm kits and operations support for signaling and passenger communications.
• IP commercialization: 33 granted patents and 67 software copyrights enabling licensing, cross-licensing and higher gross margins on proprietary modules.
• Secure-environment specialization: target verticals include defense, energy, transportation and critical infrastructure with higher switching costs.
• Operational efficiency: scope for margin improvement via scale, vertical integration of subsystem components and tighter cost control.

• Market dynamics: global demand for LEO connectivity is projected to grow materially-target addressable market (TAM) expansion supports the revenue CAGR targets above.
• Revenue mix shift: a move from hardware-only to hardware+services+licensing can increase recurring revenue from ~20% to >40% of total within three years.
• Client concentration risk mitigation: diversification into rail and urban transit reduces dependence on a small number of large defense/industrial customers.
• Key operational levers: procurement rationalization, automated production lines, and higher-margin software licensing.

• Order wins for LEO subsystem supply or constellation partnerships-track announced contracts and backlog conversion.
• Gross and operating margin trends-evidence of cost control and IP monetization.
• R&D-to-revenue ratio and patent filings-R&D intensity that sustains product leadership.
• New vertical deployments in rail and urban transit-reference deployments and pilot projects.