Breaking Down Jiangsu Yangnong Chemical Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven look at Jiangsu Yangnong Chemical Co., Ltd. where recent performance mixes resilience and challenge: Q1 2025 revenue stood at CNY 3.24 billion (up 2% YoY) while trailing twelve-month revenue through Sept 30, 2025 reached CNY 11.58 billion (up 13.27% YoY), even as full-year 2024 revenue fell to CNY 10.435 billion (down 9.09% from 2023) due largely to lower product prices; profitability shows stability with Q1 2025 net income of CNY 434.93 million and a TTM net income of CNY 1.232 billion (TTM margin 11.5%), balance sheet metrics reveal total assets of CNY 15.5 billion against liabilities of CNY 7.2 billion and a moderate debt-to-equity ratio of 0.48, liquidity remains healthy with cash of CNY 1.759 billion and a current ratio of 1.5, operating cash flow pressures are evident after a 31.5% YoY drop in H1 2025 to CNY 2.13 billion while the company raised short-term borrowings of CNY 1.5 billion, and market valuation as of July 1, 2025 shows a market cap of CNY 23.80 billion with a TTM P/E of 19.63 and EV/EBITDA of 11.04-key metrics that investors will want to weigh alongside risks from price volatility, competition, regulatory shifts and supply-chain pressures, and growth levers such as a CNY 466.72 million glyphosate upgrade project, R&D and market expansion plans.

Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) Revenue Analysis

Jiangsu Yangnong Chemical's recent revenue trajectory shows a mix of recovery in 2025 quarters after a full-year revenue decline in 2024 driven primarily by lower product selling prices despite stable production volumes.

• Q1 2025 revenue: CNY 3.24 billion (+2% YoY)
• H1 2025 operating income (revenue proxy for first half): CNY 6.234 billion (+9.38% YoY)
• Q3 2025 revenue: CNY 2.92 billion (+26.15% YoY)
• Full-year 2024 revenue: CNY 10.435 billion (-9.09% YoY vs. 2023)
• TTM revenue as of 30 Sep 2025: CNY 11.58 billion (+13.27% YoY)

• Primary driver of 2024 decline: lower realized selling prices (production volumes reported stable)
• 2025 recovery drivers: stronger price realization in later quarters and improved demand mix (notably Q3)
• TTM growth indicates momentum returning but requires monitoring of price trends and margin recovery

Further context and investor-focused commentary are available here: Exploring Jiangsu Yangnong Chemical Co., Ltd. Investor Profile: Who's Buying and Why?

Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) - Profitability Metrics

• Q1 2025 net income: CNY 434.93 million (vs. CNY 429.12 million in Q1 2024).
• Q1 2025 net profit margin: ~13.4%.
• Full-year 2024 net income attributable to shareholders: CNY 1.202 billion (down 23.19% vs. 2023).
• Basic EPS 2024: CNY 2.978 (vs. CNY 3.868 in 2023).
• H1 2025 net profit attributable to parent: CNY 806 million (up 5.60% YoY).
• TTM net income as of 2025-09-30: CNY 1.232 billion; TTM profit margin: 11.50%.

• Quarterly recovery: Q1 2025 showed a modest increase in net income vs. Q1 2024, supporting a positive short-term momentum.
• Margin context: Q1 2025 margin of ~13.4% sits above the TTM margin of 11.5%, suggesting stronger recent operating performance or seasonality.
• EPS trajectory: Basic EPS fell from 3.868 in 2023 to 2.978 in 2024, reflecting the full-year earnings decline despite partial recovery in 2025 results.

Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) Debt vs. Equity Structure

• Total assets (as of September 30, 2025): CNY 15.5 billion
• Total liabilities (as of September 30, 2025): CNY 7.2 billion
• Debt-to-equity ratio: 0.48 - a moderate level of financial leverage
• Interest coverage (TTM): 5.2 - sufficient earnings to cover interest expenses

• Operating liquidity: H1 2025 operating cash generation of CNY 2.13 billion remains positive but contracted 31.50% YoY, increasing reliance on working-capital management.
• Financing mix: issuance of CNY 1.5 billion in short-term borrowings in H1 2025 indicates use of bank/market debt to bridge cash flow gaps tied to higher raw-material outlays.
• Coverage and solvency: interest coverage of 5.2 provides a buffer for interest payments, while a debt-to-equity ratio of 0.48 leaves headroom for additional debt if needed.

Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) - Liquidity and Solvency

As of September 30, 2025, Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) demonstrates a solid short-term liquidity profile and a strong equity base supporting solvency. Key balance sheet and working-capital metrics indicate the company is positioned to meet near-term obligations while maintaining operational flexibility.

• Cash and cash equivalents: CNY 1.759 billion (up 8.38% YoY)
• Current ratio: 1.5 - adequate coverage of current liabilities
• Quick ratio (ex‑inventory): 1.2 - sufficient immediate liquidity
• Net working capital: CNY 2.5 billion - positive buffer for operations
• Cash conversion cycle: 75 days - efficient working capital turnover
• Solvency ratio (Equity / Total Assets): 0.54 - strong equity base

Key drivers behind these figures include effective cash management and inventory turnover policies that have kept the cash conversion cycle at 75 days while growing cash balances. Capital structure remains conservative, with equity covering a majority of total assets, supporting creditworthiness and long-term funding flexibility. For broader strategic context and corporate principles that may influence capital allocation, see Mission Statement, Vision, & Core Values (2026) of Jiangsu Yangnong Chemical Co., Ltd.

Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) - Valuation Analysis

• Market capitalization: CNY 23.80 billion.
• TTM Price-to-Earnings (P/E): 19.63 - moderate valuation versus earnings.
• Price-to-Sales (P/S): 2.27 - market valuation relative to revenue.
• Enterprise Value-to-Revenue (EV/Revenue): 2.16 - enterprise-level revenue multiple.
• Enterprise Value-to-EBITDA (EV/EBITDA): 11.04 - valuation on operating cash profits.
• Return on Equity (TTM ROE): 11.45% - effectiveness in deploying shareholders' equity.

• The P/E near 20x positions Jiangsu Yangnong Chemical in a mid-range earnings valuation - not deeply discounted but not richly priced versus growth expectations.
• EV/EBITDA of 11.04 suggests a pragmatic enterprise valuation relative to operating profitability; useful when comparing capital structure differences with peers.
• P/S and EV/Revenue around ~2.2 indicate the market assigns a material premium to revenue, implying expectations of margin stability or growth.
• ROE at 11.45% signals competent capital deployment; when combined with multiples, it helps assess whether growth prospects justify the price paid.

Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) - Risk Factors

• Product-price volatility: A large portion of Yangnong's revenue is tied to agrochemical commodities (notably glyphosate). Historic price swings in glyphosate and related intermediates have produced volatile quarterly margins-industry moves of ±20-50% in spot prices have been observed in past cycles, directly impacting gross margins and EBITDA.
• Intensifying competition: Global agrochemical majors and low-cost producers from other regions press margins. Market-share pressure can force price concessions or require higher sales/marketing spend to defend volumes.
• Regulatory risk in export markets: Changes in pesticide approvals, maximum residue limits (MRLs), or restrictions in major importing countries can cause abrupt demand reductions or require reformulation, affecting near-term sales and long-term product mix.
• Supply-chain and input-cost risk: Shortages or price spikes in key raw materials (e.g., technical intermediates, chlorine derivatives, solvents) can disrupt production or compress margins if costs cannot be passed to customers.
• Environmental and sustainability compliance: Upgrades to meet stricter emissions, wastewater, and safety standards may require capital expenditures and raise operating costs over several years.
• Foreign-exchange exposure: A meaningful share of sales and procurement tied to USD/EUR or other currencies creates P&L volatility when RMB moves; currency swings affect reported revenue, costs, and translated margins.

• Product mix concentration - watch percent of revenue from glyphosate/related technicals (higher concentration = higher commodity risk).
• Export share - higher export percentage increases regulatory and FX risk; monitor geographic breakdown of sales.
• Inventory days & working-capital turn - rising days signals supply-chain stress or weak demand; tight cash conversion cycles elevate liquidity risk.
• Leverage metrics - debt-to-equity and net-debt/EBITDA indicate capacity to absorb shocks (higher leverage reduces financial flexibility).
• CapEx and remediation liabilities - disclosed future environmental investments or remediation reserves show potential cash outflows.

Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) - Growth Opportunities

Key growth initiatives and strategic levers for Jiangsu Yangnong Chemical Co., Ltd. (600486.SS) center on capacity upgrades, geographic expansion, product innovation, partnerships, digital transformation, and R&D reinforcement. The company's announced glyphosate production upgrade-an investment of CNY 466.72 million-serves as a concrete near-term catalyst for volume, cost structure improvement, and product quality enhancement.

• Capital investment: CNY 466.72 million committed to glyphosate production upgrade (project capex).
• Market expansion: targeted entry into emerging APAC, Latin America, and Africa markets for diversification of end-markets and FX exposure management.
• Product pipeline: expansion into new pesticide formulations and active ingredients to broaden addressable market and reduce reliance on legacy SKUs.
• Partnerships: strategic alliances with global agrochemical firms to access distribution networks, co-development, and licensing opportunities.
• Digital & smart manufacturing: investments in automation and process control to lower variable costs, improve yield and cut safety-related downtime.
• R&D strengthening: increased talent, pilot plants and analytical capability to accelerate novel product commercialization.

• Financial implications: the CNY 466.72 million capex will be reflected in near-term cash outflows and fixed-asset base expansion; medium-term return depends on uplift in glyphosate volumes, margin improvement, and price environment.
• Risk/return sensitivity: ROI hinges on raw material cost trends (notably intermediate chemicals), regulatory approvals in export markets, and the company's ability to translate R&D into commercialized formulations.
• Operational KPIs to monitor: capacity utilization, gross margin (%), R&D-to-sales ratio, free cash flow, and orderbook growth in targeted export regions.

For alignment with corporate purpose and longer-term strategic positioning see: Mission Statement, Vision, & Core Values (2026) of Jiangsu Yangnong Chemical Co., Ltd.