Breaking Down Jiangsu Yike Food Group Co.,Ltd Financial Health: Key Insights for Investors

Investors scrutinizing Jiangsu Yike Food Group Co., Ltd. (301116.SZ) will want to weigh a mixed set of facts: in 2024 revenue was CNY 20.8 billion (down 5% year-on-year) after a five‑year CAGR of 6%, and the first three quarters of 2025 showed CNY 13.678 billion (a 10.97% y/y decline), while profitability figures reveal a slim net income of CNY 100 million in 2024 translating to a net profit margin of -1.72% and an ROE of -20.13%; the balance sheet shows a debt-to-equity ratio of 159.46% with total debt of CNY 2.25 billion against equity of CNY 1.79 billion and a market capitalization of CNY 5.39 billion, liquidity metrics such as a current ratio of 0.87 and quick ratio of 0.33 flag short‑term pressure even as operating cash flow of CNY 942 million and free cash flow of CNY 93.17 million (after CNY 575 million capex) illustrate cash conversion, and valuation multiples - P/B 3.53, EV/EBITDA 14.38, EV/Sales 0.35 and P/FCF 56.02 - together with a beta of 0.79, concentrated supply‑chain control, regulatory and disease risks, and competition from larger poultry producers frame the tradeoffs investors must explore in the full analysis.

Jiangsu Yike Food Group Co.,Ltd (301116.SZ) - Revenue Analysis

• 2024 revenue: CNY 20.8 billion (‑5% vs. 2023)
• 5‑year compound annual growth rate (CAGR): ~6%
• Q1-Q3 2025 revenue: CNY 13.678 billion (‑10.97% YoY)
• Primary driver of 2025 decline: increased competition and market saturation in poultry processing
• Competitive advantage: integrated farm‑to‑finished‑goods production pipeline enabling margin capture across stages

• Integrated value chain: controls breeding, slaughtering, processing, and distribution - supports domestic and export channels.
• Margin resilience: vertical integration allows retention of upstream to downstream spreads even amid price pressure.
• Market risk: saturation in core poultry markets and intensifying competitor promotions and capacity expansions squeeze volumes and prices.
• Seasonality and input cost sensitivity: feed and live‑stock cost swings directly affect gross margins and pricing flexibility.

• Revenue trajectory shows earlier growth momentum but near‑term contraction in 2025 - monitor quarterly recoveries versus peers.
• Integrated operations provide margin levers; watch input cost trends (feed, energy) and scale efficiencies.
• Competitive landscape: new entrants and capacity increases in poultry processing likely to cap pricing power.
• Management execution on product diversification and export expansion will be critical to restore growth.

Jiangsu Yike Food Group Co.,Ltd (301116.SZ) - Profitability Metrics

Key profitability indicators for Jiangsu Yike Food Group Co.,Ltd (301116.SZ) reflect mixed performance across margins, return on equity, and shareholder payout.

• Net income (2024): CNY 100 million
• Diluted EPS (2024): CNY 0.22
• Net profit margin: -1.72%
• Return on equity (ROE): -20.13%
• Gross margin: 1.44%
• Operating margin: 0.27%
• Dividend yield: 1.34% (annual dividend CNY 0.15 per share)

For a deeper investor-focused profile and ownership context, see: Exploring Jiangsu Yike Food Group Co.,Ltd Investor Profile: Who's Buying and Why?

Jiangsu Yike Food Group Co.,Ltd (301116.SZ) - Debt vs. Equity Structure

• Leverage: Total debt of CNY 2.25 billion vs. book equity CNY 1.79 billion yields a high debt-to-equity of 159.46%, indicating the company relies significantly on debt financing.
• Net cash negative: Net cash per share of -CNY 4.09 reflects a net debt position on a per-share basis and confirms a leveraged balance sheet.
• Enterprise vs. Market value: EV of CNY 7.29 billion exceeds market cap (CNY 5.39 billion), signaling debt and minority interests contribute materially to total firm value.
• Equity depth: Book value per share of CNY 3.79 provides a tangible-accounting anchor against market price volatility.
• Market risk profile: Beta 0.79 suggests lower systematic volatility than the broader market, which may temper equity-side risk despite high leverage.

• Key implications for investors:
  • Interest coverage and cash-flow stability are critical given the high leverage.
  • Debt refinancing risk and maturity profile should be reviewed relative to operating cash generation.
  • Compare EV/EBITDA and net-debt-to-EBITDA vs. peers to assess leverage in operating-performance context.

Jiangsu Yike Food Group Co.,Ltd (301116.SZ) Liquidity and Solvency

• Current ratio: 0.87 - below 1.0, indicating potential challenges meeting short-term obligations from current assets.
• Quick ratio: 0.33 - limited ability to cover immediate liabilities without relying on inventory conversion.
• Interest coverage ratio: 0.81 - operating income may be insufficient to comfortably cover interest expenses.

• Implication: strong operating cash flow (CNY 942m) supports capital spending (CNY 575m) and leaves modest free cash flow (CNY 93.17m), but low liquidity ratios and sub-1 interest coverage create vulnerability if earnings or cash flow decline.
• Investor focus: monitor short-term liabilities, inventory conversion speed, interest-bearing debt levels, and whether capex translates into margin improvement.

Jiangsu Yike Food Group Co.,Ltd (301116.SZ) - Valuation Analysis

Key market multiples for Jiangsu Yike Food Group Co.,Ltd (301116.SZ) provide a snapshot of how the market prices its equity, operations and cash generation relative to peers and historical norms. The following metrics are current reference points for investors considering entry, exit or relative valuation comparisons.

• Price-to-Book (P/B): 3.53 - market values equity at 3.53x book value.
• EV/EBITDA: 14.38 - enterprise value implies a ~14.4x multiple on operating earnings before non-cash charges and financing.
• EV/Sales: 0.35 - enterprise value equals 0.35x annual revenue.
• Price-to-Sales (P/S): 0.26 - equity is priced at 0.26x trailing revenue.
• Price-to-Free Cash Flow (P/FCF): 56.02 - very high multiple on free cash flow, signaling either low FCF or market premium.
• Price-to-Operating Cash Flow (P/OCF): 7.13 - equity market cap equals ~7.1x operating cash flow.

Areas investors should probe further:

• Drivers of the high P/FCF relative to P/OCF (capex, working capital swings, one-time items).
• Comparison of EV/EBITDA (14.38) to listed peer group and historical company multiples.
• Balance-sheet composition given P/B of 3.53 - intangible assets, goodwill or conservative book value?
• Revenue quality behind low EV/Sales (0.35) and P/S (0.26) - margin profile and recurring sales.

For broader corporate context while interpreting these multiples, see: Jiangsu Yike Food Group Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Yike Food Group Co.,Ltd (301116.SZ) - Risk Factors

• Regulatory compliance: subject to strict food safety, environmental and animal welfare standards in China-noncompliance can trigger fines, recalls, production halts and reputational damage.
• Competitive pressure: intense competition from larger, well-capitalized poultry producers may constrain pricing power, volume growth and margins.
• Input-price volatility: feed cost swings and volatile poultry market prices can compress gross margins and create earnings unpredictability.
• Biological risks: exposure to disease outbreaks (e.g., avian influenza) can disrupt flocks, lead to culling, interrupt supply chains and force emergency responses.
• Capital structure and liquidity risk: a high debt load increases financial risk and reduces flexibility-reported debt-to-equity ratio stands at 159.46%, signaling elevated leverage.
• Profitability pressure: recent net profit margin of -1.72% indicates the company is operating at a loss on a net basis, which may strain reserves and limit reinvestment.

Jiangsu Yike Food Group Co.,Ltd (301116.SZ) - Growth Opportunities

Jiangsu Yike Food Group leverages an integrated farm-to-finished-goods model that supports margin capture across upstream breeding, feed and processing to downstream packaged and value-added poultry products. Headquartered in Suqian, Jiangsu province, the company benefits from proximity to major agricultural inputs and regional distribution channels.

• Control over the production pipeline reduces procurement volatility and protects gross margins across cycles.
• Value-added processed products (ready-to-cook, pre-seasoned and further-processed lines) differentiate Yike from basic poultry suppliers and command higher unit economics.
• Combined domestic and export channels diversify revenue exposure and reduce dependency on single-market demand swings.
• Lower historical volatility (beta 0.79) can attract more risk-averse investors seeking stable exposure to the food sector.
• Free cash flow of CNY 93.17 million provides capital flexibility to fund capacity expansion, product innovation, or M&A for faster scale.

Strategic growth levers include expanding higher-margin processed SKUs, scaling export channels, optimizing upstream feed/breeding efficiency to lower COGS, and targeted capex funded from operating cash flow to add processing lines or cold-chain capacity.

• Product innovation: developing premium and convenience-oriented lines to capture urban consumption trends.
• Cold-chain & logistics upgrades: reduce spoilage, enable broader geographic reach and better retail partnerships.
• Selective M&A or JV with regional processors to accelerate market penetration and channel access.
• Branding and retail partnerships to move more sales into higher-margin branded packaged items.

Further context and corporate guiding principles are available here: Mission Statement, Vision, & Core Values (2026) of Jiangsu Yike Food Group Co.,Ltd.