Breaking Down Jiangsu High Hope International Group Corporation Financial Health: Key Insights for Investors

Jiangsu High Hope International Group Corporation's recent numbers demand attention: trailing twelve-month revenue stands at CNY 55.86 billion (TTM) with nine-month 2025 operating revenue of CNY 38.60 billion (+4.41% y/y), while TTM net income is CNY 154.86 million (EPS CNY 0.05) after a nine-month turnaround from a prior loss; investors should note a thin net profit margin of 0.28% and modest gross margin of 3.19% alongside a high TTM P/E of 66.75 and low P/S of 0.12, contrasted with significant leverage-total debt of CNY 12.66 billion versus book equity of CNY 5.73 billion and a debt-to-equity ratio of 2.21-liquidity metrics show a current ratio of 1.13 and quick ratio of 0.59, Altman Z‑Score is 2.49 (below the safe 3.0 threshold), market cap is CNY 6.53 billion with enterprise value CNY 13.11 billion, operating cash flow TTM is CNY 551.87 million and free cash flow is CNY 515.10 million, revenue per employee is roughly CNY 16.90 million across 3,305 staff, and a Piotroski F‑Score of 6 alongside EV/EBITDA of 30.14 and EV/FCF of 25.46 round out a profile of steady top-line growth (2024 revenue CNY 54.23 billion, +8.96% y/y; 2023 +4.22%) but elevated financial risk-read on for a chapter-by-chapter breakdown of what these figures mean for investors.

Jiangsu High Hope International Group Corporation (600981.SS) - Revenue Analysis

• Nine months ending September 30, 2025: operating revenue CNY 38.60 billion (+4.41% vs. same period 2024).
• Trailing twelve months (TTM) revenue as of November 7, 2025: CNY 55.86 billion (+6.18% YoY).
• Full year 2024 revenue: CNY 54.23 billion (+8.96% vs. 2023).
• Workforce: 3,305 employees - revenue per employee ≈ CNY 16.90 million.
• Price-to-sales (P/S) ratio: 0.12 - indicating relatively low market valuation vs. sales.

• Growth consistency: multi-year revenue growth has been steady (2022: +5.48%, 2023: +4.22%, 2024: +8.96%, TTM Nov 2025: +6.18%), suggesting resilient demand and operational scale.
• Operational leverage: revenue per employee of CNY 16.90 million signals high revenue intensity per headcount relative to typical agribusiness peers.
• Valuation context: P/S of 0.12 implies the market prices the company conservatively against sales - potential upside if margins or ROIC improve.

Jiangsu High Hope International Group Corporation (600981.SS) - Profitability Metrics

• Profitability recovery: Net income of CNY 51.88M for 9M 2025 vs. a CNY 73.63M loss in 9M 2024.
• Low conversion of revenue to profit: Net profit margin at 0.28% and gross margin at 3.19% indicate tight product/service economics or pressure from costs.
• Operational efficiency: Operating margin 0.45% points to limited operating leverage despite returning to profit.
• Modest shareholder returns: ROE 3.58% and ROA 0.58% signal limited returns on capital and assets.
• Valuation caution: TTM P/E of 66.75 implies the market is pricing in future improvement; EPS (TTM) is CNY 0.05, showing earnings are currently small relative to price.

Jiangsu High Hope International Group Corporation (600981.SS) - Debt vs. Equity Structure

• Debt-to-Equity Ratio: 2.21 - the company carries more than twice as much debt as book equity, signaling higher financial leverage and sensitivity to interest-cost moves.
• Total Debt: CNY 12.66 billion - this is the gross debt load reflected on the balance sheet.
• Equity (Book Value): CNY 5.73 billion - shareholders' book equity supporting operations and debt.

• Current Ratio 1.13 - adequate short-term liquidity on paper, but only modest cushion versus immediate liabilities.
• Quick Ratio 0.59 - when inventory is excluded, available liquid assets cover considerably less than current liabilities, indicating reliance on inventory sales or refinancing to meet short-term needs.

• Interest Coverage 0.74 - EBIT covers interest expense by less than 1x, a red flag for ability to service debt from operating earnings without asset sales or external capital.
• High leverage (D/E 2.21) combined with weak coverage increases default and refinancing risk, particularly if margins compress or interest rates rise.

• Enterprise Value CNY 13.11 billion - EV incorporates the significant debt load; equity market value is materially smaller than enterprise value, reflecting the capital structure imbalance.

Jiangsu High Hope International Group Corporation (600981.SS) - Liquidity and Solvency

• Current ratio: 1.13 - slight margin of current assets over current liabilities.
• Quick ratio: 0.59 - indicates limited liquid coverage once inventory is removed.
• Operating cash flow (TTM): CNY 551.87 million - healthy cash generation from operations.
• Free cash flow (TTM): CNY 515.10 million - positive residual cash after capex.
• Net cash position: -CNY 5.93 billion - company is net debtor (more debt than cash).
• Altman Z-Score: 2.49 - below the 3.0 safe threshold; signals elevated bankruptcy risk relative to safer firms.
• Piotroski F-Score: 6 - moderate financial strength and operational improvement signals.

Jiangsu High Hope International Group Corporation (600981.SS) - Valuation Analysis

• High P/E (66.75) signals market expectations for strong future earnings growth or limited near-term profitability - investors are paying a premium per unit of reported earnings.
• Low P/S (0.12) indicates the market places a modest value on sales; this can reflect thin margins or cyclical revenue expectations despite the low sales multiple.
• P/B at 1.14 shows limited discount to net asset value, reducing margin of safety if earnings disappoint.
• Elevated EV/EBITDA (30.14) and EV/FCF (25.46) imply the company's enterprise valuation is high relative to cash-based profitability measures, raising sensitivity to cash-flow deterioration.

• Relative mismatch between earnings-based (very high) and sales-based (very low) metrics suggests either depressed margins, one-off earnings impacts, or investor focus on revenue potential rather than current profitability.
• Enterprise Value (~CNY 13.11B) roughly doubles market cap, indicating significant net debt or minority interests that amplify enterprise-level risk.

Jiangsu High Hope International Group Corporation (600981.SS) - Risk Factors

Key financial risk indicators for Jiangsu High Hope International Group Corporation (600981.SS) highlight leverage, liquidity pressure, potential valuation concerns, and signs of elevated distress risk. Investors should weigh the following metrics against sector norms and the company's operational outlook.

• Debt-to-Equity Ratio: 2.21 - significant financial leverage; creditors fund more than twice shareholders' equity, increasing vulnerability in downturns.
• Quick Ratio: 0.59 - indicates limited immediate liquidity; current liquid assets cover only 59% of short-term liabilities.
• Altman Z‑Score: 2.49 - falls into a zone suggesting heightened risk of financial distress compared with safer (>3) thresholds.
• Piotroski F‑Score: 6 - moderate quality score; some operational or accounting concerns remain despite several positive signals.
• TTM Price‑to‑Earnings (P/E): 66.75 - elevated relative to typical industry multiples, implying potential overvaluation or high growth expectations priced in.
• Net Cash Position: -CNY 5.93 billion - negative cash position (more debt than cash), constraining financial flexibility for capex, dividends, or debt servicing.

Risk drivers and scenarios investors should monitor:

• Rising interest rates or refinancing difficulties could sharply increase finance costs given the 2.21 debt-to-equity ratio.
• Operating cash flow deterioration would exacerbate liquidity stress with a 0.59 quick ratio and -CNY 5.93B net cash position.
• A market re-rating or profit disappointment may produce outsized share volatility given the 66.75 TTM P/E.
• Altman Z‑Score near 2.49 suggests lower margin for error on earnings shocks; covenant breaches or creditor pressure are possible under adverse scenarios.
• Piotroski F‑Score of 6 signals mixed fundamentals; continued weak ROA, asset turnover, or accrual issues could worsen creditworthiness.

Contextual considerations: compare these figures to peers, review maturity profile of debt, interest coverage trends, cash flow from operations, and off‑balance sheet obligations to assess how material these risks are to your investment thesis. For corporate purpose and long-term positioning reference: Mission Statement, Vision, & Core Values (2026) of Jiangsu High Hope International Group Corporation.

Jiangsu High Hope International Group Corporation (600981.SS) - Growth Opportunities

• Market capitalization: CNY 6.53 billion - base for potential market-value appreciation.
• TTM revenue: CNY 55.86 billion - reported year-over-year growth of 6.18%.
• P/S ratio: 0.12 - suggests potential undervaluation relative to sales.
• P/B ratio: 1.14 - trading at a slight premium to book value, leaving room for value realization if ROE improves.

• Diversified business lines: trade, real estate, investment, logistics, manufacturing, and services - multiple revenue drivers reduce single-segment risk and enable cross-segment synergies.
• Supply chain enhancements: targeted improvements in procurement, inventory turnover, and logistics can materially boost gross margins and working capital efficiency.
• Asset structure optimization: potential divestitures or reallocation of capital toward higher-return segments could lift ROE and re-rate the stock.
• Valuation gap opportunity: a low P/S (0.12) versus stable revenue growth (6.18% YoY) suggests scope for market multiple expansion if profitability and cash flow metrics improve.
• Balance of book vs. market value: P/B at 1.14 indicates modest premium - room for appreciation through improved asset utilization or earnings recovery.