Breaking Down Jiangsu Zongyi Co.,LTD Financial Health: Key Insights for Investors

Jiangsu Zongyi's nine-month revenue jump to CNY 323.61 million (a year‑over‑year rise of 28.7%) and a trailing‑12‑month revenue of CNY 419.97 million sit alongside a solid gross margin of 29.83% and positive net profit margin of 8.69%, yet investors should note the operating margin of -10.58%, slim ROE (1.68%) and EPS of CNY 0.04 (P/E signaling mixed valuation signals), counterbalanced by a conservative capital structure with debt‑to‑equity at 9.6%, a net cash position of CNY 1.39 billion, robust liquidity (current ratio 3.69, quick ratio 3.35) and an Altman Z‑Score of 3.82 - even as market pricing (market price CNY 6.06 vs. estimated intrinsic value CNY 1.03, implying ~83% overvaluation) and stretched EV/EBITDA (104.67) raise sharp valuation questions; read on for a line‑by‑line breakdown of revenue trends, profitability metrics, balance‑sheet strength, valuation multiples and the growth opportunities and risks shaping investor decisions.

Jiangsu Zongyi Co.,LTD (600770.SS) - Revenue Analysis

• Nine months ended Sep 30, 2025 revenue: CNY 323.61 million (YoY +28.7% vs CNY 251.54 million).
• Latest quarter revenue: CNY 111.45 million, up 9.5% QoQ from CNY 101.70 million.
• Trailing twelve months (TTM) revenue: CNY 419.97 million (vs prior-year TTM CNY 409.68 million - modest increase).
• Five-year revenue CAGR (approx.): -1.74% (slight decline over five years).
• Revenue per employee: CNY 797,050 with 514 employees.
• TTM gross margin: 29.83%.

• Short-term momentum: accelerating sequential revenue with a +9.5% QoQ increase in the latest quarter and strong 9M YoY growth of ~28.7%.
• Longer-term context: TTM revenue shows only modest improvement vs prior TTM, and five-year growth rate is slightly negative (-1.74%), indicating structural headwinds or cyclicality.
• Profitability and efficiency: a TTM gross margin of 29.83% combined with revenue per employee of CNY 797,050 points to moderate margin retention and mid-range workforce productivity for the company's industry niche.

Jiangsu Zongyi Co.,LTD (600770.SS) - Profitability Metrics

• Net profit margin (TTM): 8.69% - ability to convert revenue into net income.
• Gross margin (TTM): 29.83% - portion of revenue retained after direct costs.
• Operating margin (TTM): -10.58% - core operations currently showing an operating loss.
• Return on equity (ROE, TTM): 1.68% - modest efficiency in generating profits from shareholders' equity.
• Earnings per share (EPS, TTM): CNY 0.04; Price-to-earnings (P/E): 145.30 - high valuation relative to earnings.
• Net income (9 months ended Sep 30, 2025): CNY 90.80 million - up from CNY 72.15 million YoY (≈25.9%).

For additional corporate context and how the business generates revenue, see: Jiangsu Zongyi Co.,LTD: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Zongyi Co.,LTD (600770.SS) Debt vs. Equity Structure

Jiangsu Zongyi's capital structure shows low leverage, strong equity backing and a meaningful net cash position, supporting financial flexibility for operations, capex and shareholder returns.

• Debt-to-equity ratio: 9.6% - indicates conservative use of debt.
• Total debt: CNY 466.1 million versus total equity: CNY 4.87 billion.
• Total assets: CNY 6.1 billion; total liabilities: CNY 1.2 billion; debt-to-assets ≈ 19.7%.
• Interest coverage ratio: not available - limits assessment of interest-service capacity from operating earnings.
• Net cash position: CNY 1.39 billion - strong liquidity buffer.
• Equity (book value): CNY 4.56 billion; book value per share: CNY 2.59.

For investor-level context and shareholder activity details, see: Exploring Jiangsu Zongyi Co.,LTD Investor Profile: Who's Buying and Why?

Jiangsu Zongyi Co.,LTD (600770.SS) - Liquidity and Solvency

• Current ratio: 3.69 - ample ability to cover short-term liabilities with short-term assets.
• Quick ratio: 3.35 - strong liquidity even after excluding inventory.
• Debt-to-assets ratio: ~19.7% - total liabilities of CNY 1.24 billion vs. total assets of CNY 6.10 billion.
• Net cash position: CNY 1.39 billion - indicates meaningful financial flexibility.
• Operating cash flow: CNY 38.53 million; Capital expenditures: CNY 46.72 million; Free cash flow: -CNY 8.20 million.
• Altman Z-Score: 3.82 - low bankruptcy risk by the standard metric.

Jiangsu Zongyi Co.,LTD (600770.SS) - Valuation Analysis

Key market and valuation metrics for Jiangsu Zongyi Co.,LTD (600770.SS) indicate a stretched market valuation versus fundamentals across multiple measures. Below are the primary figures investors should note and consider when evaluating this stock.

• Valuation stretch: P/E of 68.55 and EV/EBITDA of 104.67 both signal market expectations of strong future earnings or lower current profitability; either scenario raises risk if growth disappoints.
• Price vs intrinsic: Current price CNY 6.06 vs intrinsic CNY 1.03 implies market premium ≈83%; investors should treat the intrinsic estimate as model-dependent and stress-test inputs.
• Cash flow opacity: P/FCF not available while P/OCF is 192.33 - limited free-cash-flow visibility increases uncertainty about sustainable cash generation.

Practical considerations for investors:

• Scenario analysis: Recalculate intrinsic value under conservative growth and margin assumptions to assess downside risk.
• Liquidity and leverage: Cross-check EV components (net debt vs cash) to understand how much of EV is driven by leverage.
• Peer context: Compare these ratios to industry peers to determine whether high multiples reflect sector-wide dynamics or company-specific factors.
• Data gaps: Seek latest cash-flow statements and management commentary to resolve the P/FCF data gap before relying on valuation conclusions.

For additional context on corporate priorities and strategic positioning, see: Mission Statement, Vision, & Core Values (2026) of Jiangsu Zongyi Co.,LTD.

Jiangsu Zongyi Co.,LTD (600770.SS) - Risk Factors

Key financial risks that investors should weigh when evaluating Jiangsu Zongyi Co.,LTD (600770.SS):

• Operating margin: -10.58% - core operations are running at a loss, signaling difficulty in covering operating costs from revenues.
• Return on assets (ROA): -0.51% - the company is not efficiently converting asset base into profits.
• Return on invested capital (ROIC): -0.56% - invested capital is generating negative returns, limiting value creation for shareholders.
• 5‑year EPS growth: -14.61% - earnings per share have declined materially over the past five years, indicating recurring profitability pressures or dilution.
• Net profit margin: 8.69% - below industry average, reflecting weaker bottom-line performance relative to peers.
• Debt-to-equity: 9.6% - relatively conservative leverage, but the company's low interest coverage ratio makes it hard to confirm capacity to meet interest obligations from operating earnings.

For more context on ownership, trading patterns, and investor composition that may interact with these risk factors, see: Exploring Jiangsu Zongyi Co.,LTD Investor Profile: Who's Buying and Why?

Jiangsu Zongyi Co.,LTD (600770.SS) - Growth Opportunities

• Renewable energy footprint across multiple markets: active in construction and management of photovoltaic power stations in the Czech Republic, Italy, United States, Germany, Bulgaria, Romania, and China (7 countries), positioning the company to capture growth from global solar demand and cross-border project revenue streams.
• Medical-device R&D: ongoing development of ultra-low-power digital-analog hybrid hearing-aid chips and high-end digital voice processing technology, creating potential for high-margin product lines and licensing opportunities.
• Semiconductor expansion: signed a deal to acquire a 15.86% stake in Jiangsu Jilai Microelectronics Co., Ltd., indicating strategic vertical integration into the semiconductor supply chain.
• Diversification: operations span traditional Chinese medicine, new materials, photovoltaic power, semiconductors, medical devices, and equity investments-spreading down-cycle risk and opening multiple revenue channels.
• Market sentiment and risk profile: a 143.59% increase in market capitalization over the past year signals strong investor interest, while a beta of 0.26 implies low volatility relative to the broader market-appealing to growth-seeking but risk-conscious investors.

• Key growth levers to monitor:
  • Project pipeline and capacity additions in Europe, North America, and China (timing and tariff/REC exposure).
  • Commercialization milestones and margins for hearing-aid chip and voice-processing products.
  • Progress and integration benefits from the 15.86% Jilai Microelectronics stake (supply security, cost reduction, IP access).
  • Performance of non-core segments (TCM, new materials) and their contribution to consolidated cash flow.
  • Share-price sensitivity given recent market-cap surge vs. low-beta profile-watch liquidity and institutional holdings.