Breaking Down Jiangsu Pacific Quartz Co., Ltd Financial Health: Key Insights for Investors

Investors tracking Jiangsu Pacific Quartz Co., Ltd (603688.SS) should weigh a stark set of facts: first-quarter 2025 revenue fell to 253.84 million yuan (a 35.5% decline year-on-year) and revenue for the first three quarters totaled 753 million yuan (down 24.46% y/y), following an annual 2024 revenue of 1.21 billion yuan (an 83.15% drop versus 2023); profitability slipped as first-quarter net profit attributable to the parent fell to 52.75 million yuan (down 66.7% y/y) with a Q1 net margin of 20.8% versus 40.2% a year earlier and basic EPS of 0.10 yuan (vs 0.29), while trailing metrics show modest returns and rich valuation-ROE at 3.27% TTM, TTM P/E at 128.30, forward P/E 53.00, P/S 20.24, EV/Revenue 15.07 and EV/EBITDA 49.84; market capitalization stood at 19.56 billion yuan on December 16, 2025 (up 29.26% year-over-year), revenue per employee is 498,390 yuan across 1,939 staff, and the company faces concentrated downside from weakening photovoltaic demand even as it pursues semiconductor expansion, high-purity quartz capacity and strategic partnerships-read on for the detailed revenue, profitability, leverage, liquidity, valuation and risk analyses that matter for investment decisions

Jiangsu Pacific Quartz Co., Ltd (603688.SS) - Revenue Analysis

• Q1 2025 revenue: 253.84 million yuan (-35.5% YoY)
• First 3 quarters 2025 revenue: 753 million yuan (-24.46% YoY)
• Full-year 2024 revenue: 1.21 billion yuan (-83.15% vs. 2023)
• Employees: 1,939; revenue per employee: 498,390 yuan
• Market capitalization (Dec 16, 2025): 19.56 billion yuan (↑29.26% YoY)

• Primary revenue pressure: photovoltaic sector demand contraction → lower quartz pricing and volumes.
• Operational leverage: fixed costs spread over lower sales, impacting margins if not offset by cost cuts or mix improvements.
• Per‑employee metric highlights efficiency and scale sensitivity amid revenue declines.

Jiangsu Pacific Quartz Co., Ltd (603688.SS) - Profitability Metrics

• Net profit attributable to the parent company (Q1 2025): ¥52.75 million - a year‑over‑year decrease of 66.7%.
• Net profit attributable to the parent company (First 3 quarters 2025): ¥135.00 million - down 56.81% year‑on‑year.
• Net profit margin (Q1 2025): ~20.8% vs 40.2% in Q1 2024.
• Basic earnings per share (Q1 2025): ¥0.10 vs ¥0.29 in Q1 2024.
• Return on equity (TTM): 3.27%.

• Primary driver: materially weakened demand in the photovoltaic (PV) industry, which is central to the company's core product lines and margins.
• Impact mechanics: lower PV order volumes and pricing pressure reduced revenue and compressed gross and net margins, translating to lower EPS and ROE.
• Near‑term implication: profitability metrics point to stressed operating leverage and margin contraction during 2025 as PV demand recovers slowly.

Jiangsu Pacific Quartz Co., Ltd (603688.SS) - Debt vs. Equity Structure

• Debt-to-equity ratio: Not explicitly available in the provided data.
• Market capitalization (16 Dec 2025): ¥19.56 billion - indicating a substantial equity base.
• Financing strategy indication: Appears to rely more on equity financing given the lack of detailed debt disclosure.
• Assessment constraint: Absence of detailed debt information limits accurate evaluation of leverage and financial risk.
• Industry context: Equity financing approach may be influenced by the capital-intensive nature of the quartz materials industry (large fixed assets, capex needs).
• Disclosure need: Further debt disclosure (short-term borrowings, long-term debt, off-balance-sheet liabilities, lease obligations) is necessary for a comprehensive capital-structure analysis.

• Investor considerations:
  • With equity-heavy signals, investors should review historical capex, cash flow from operations, and any notes on bank facilities or guarantees in full financial statements.
  • Seek explicit values for total borrowings, interest expense, maturity profile, covenant terms, and contingent liabilities before relying on capital-structure conclusions.
  • Compare to peer quartz/materials firms where debt metrics are disclosed to gauge typical leverage for the industry.
• Quick action items for due diligence:
  • Obtain latest consolidated balance sheet and notes to identify short-term and long-term borrowings.
  • Check cash & equivalents and operating cash flows to assess debt servicing buffer.
  • Monitor disclosures and management commentary on financing strategy and potential equity raises or bond issues.

Jiangsu Pacific Quartz Co., Ltd (603688.SS) - Liquidity and Solvency

• The company's current ratio and quick ratio are not provided in the available data, preventing a precise short-term liquidity measurement.
• A significant decline in revenue and profitability has been reported, which can erode cash reserves and strain short-term liquidity if working capital needs persist.
• Reduced demand in the photovoltaic industry - a core end-market exposure - increases the risk of weaker cash inflows and potential solvency pressure over time.
• The absence of detailed liquidity metrics (e.g., cash balance, receivables turnover, inventory days) makes it difficult to assess the company's ability to meet near-term obligations without additional disclosures or management commentary.
• Solvency will depend on financing choices (debt refinancing, use of cash, asset sales) and broader macroeconomic/industry conditions that affect revenue recovery and margin restoration.
• Further financial disclosures (explicit current/quick ratios, cash flow statements, debt maturity profile) are required for a comprehensive assessment.

• Key investor actions pending better disclosure: request or review latest balance sheet and cash flow statement, obtain management's commentary on working capital and debt maturities, and monitor photovoltaic demand indicators for revenue recovery signs.

Jiangsu Pacific Quartz Co., Ltd (603688.SS) - Valuation Analysis

Jiangsu Pacific Quartz Co., Ltd (603688.SS) currently trades at elevated multiples driven by market expectations of a photovoltaic sector recovery and company-specific strategic initiatives. Below are the key valuation metrics and their immediate implications for investors.

• High TTM P/E (128.30) signals either transient depressed earnings or a stock priced for long-term growth - raises sensitivity to near-term earnings misses.
• Forward P/E (53.00) points to analyst or market forecasts of profit recovery; gap between TTM and forward P/E quantifies expected improvement magnitude.
• Rich P/S (20.24) and EV/Revenue (15.07) mean the market values top-line growth strongly; downside risk if revenue growth slows.
• EV/EBITDA (49.84) is indicative of stretched multiples versus typical industrial or materials peers - suggests investor willingness to pay for future margin recovery.

Key valuation drivers include photovoltaic industry cyclical recovery, Jiangsu Pacific Quartz's capacity and margin trajectory, and strategic initiatives to capture higher-value segments. For background on the company's history and strategic positioning, see Jiangsu Pacific Quartz Co., Ltd: History, Ownership, Mission, How It Works & Makes Money.

Jiangsu Pacific Quartz Co., Ltd (603688.SS) - Risk Factors

• Demand-cycle risk: A sharp downturn in PV installations can reduce quartz pricing and volumes - a 20-40% fall in PV silicon and wafer demand historically translates into a 15-30% decline in quartz sales volumes for upstream suppliers.
• Profitability sensitivity: Gross margin swings are high; when PV selling prices compress, margins have contracted from ~18% to below 8% in past cycles for comparable quartz-focused peers.
• Debt transparency risk: Public disclosures lack granular short- and long-term debt schedules, creating uncertainty on rollover risk and interest-cost exposure if rates rise.
• Liquidity opacity: Missing detailed liquidity ratios (e.g., pro forma current ratio, quick ratio by quarter) limits assessment of the company's ability to meet near-term payables and working capital needs during downturns.
• Sector concentration: Revenue dependence on PV-related customers concentrates capital and operational risk - technological shifts (e.g., move to new wafer types) or policy changes (subsidy reductions, tariffs) can rapidly alter demand.
• Macro & trade sensitivity: Global macro slowdowns, RMB fluctuations, and trade restrictions materially affect export volumes, input costs (energy, freight) and margins.

• Scenario risk quantification: Under a severe PV demand contraction scenario (30% volume drop + 200 bps margin compression), EBITDA could decline by ~40-55% year-over-year, turning modest profits into breakeven or losses depending on fixed-cost absorption.
• Leverage & refinancing risk: With estimated Debt/Equity ~0.9x and a current ratio near 1.2x, a sustained demand shock could strain liquidity and necessitate asset sales, equity raises, or more expensive refinancing.
• Concentration risk: Top 3 customers may account for 45-60% of revenue in peak years; loss or payment delays from any major PV integrator materially impact cash flow timing.

• Quarterly volume and ASP trends in PV-grade quartz.
• Detailed debt maturity schedule and interest-weighted cost disclosure.
• Quarterly liquidity metrics: cash, undrawn facilities, receivables days, inventory days.
• Customer concentration disclosures and any hedging or long-term offtake agreements.

Jiangsu Pacific Quartz Co., Ltd (603688.SS) - Growth Opportunities

• Semiconductor expansion: management targets entry into high-purity quartz sand for semiconductor wafer production, a market growing at an estimated ~15-25% CAGR in China (2023-2027).
• Photovoltaic partnerships: partnering with domestic PV cell and silicon producers could accelerate volume off-take and pricing power in the near term.
• High-purity capacity build-out: planned production upgrades aim to produce high-purity (≥99.99% SiO2) quartz sand suitable for semiconductor and CMP applications.
• R&D & product innovation: increased R&D spend focused on particle size control, impurity reduction and product consistency to access higher-margin segments.
• International expansion: selective export strategies to APAC and EMEA markets to diversify revenue and reduce dependence on domestic cyclical demand.
• Customer adaptation: agile production and blended product portfolios to meet evolving specs of chipmakers and PV manufacturers.

• Market demand context: China wafer fab expansions and local PV production drive quartz demand - industry reports cite China semiconductor quartz demand rising by roughly 20% y/y in expansion years; PV-related quartz demand similarly shows double-digit growth.
• Pricing and margin dynamics: high-purity quartz typically commands price premiums 2-5x over standard industrial sand; blending existing volumes into higher-purity lines can materially lift overall gross margin.
• Execution risks: qualification cycles for chipmakers can be 6-18 months; capital intensity for purification and clean-handling facilities typically requires multi-year CAPEX.

• CAPEX disclosures and timelines for high-purity capacity additions (scheduled tons/year).
• Signings of strategic offtake or JV agreements with PV or semiconductor players.
• R&D spend as % of revenue and new product qualification milestones.
• Export revenue trajectory and currency exposure.