Breaking Down Jiajiayue Group Co., Ltd. Financial Health: Key Insights for Investors

Curious whether Jiajiayue Group (603708.SS) is a resilient value play or a cautionary tale? In Q1 2025 the company reported operating revenue of CNY 4.94 billion (down 4.77% year‑over‑year) while TTM revenue as of Nov 28, 2025 stood at CNY 17.72 billion, with total market cap at CNY 7.08 billion-figures that sit alongside a Q1 net profit attributable to shareholders of CNY 141.89 million and a trailing P/E of 47.76; balance sheet snapshots show total assets of CNY 13.53 billion, total liabilities of CNY 11.08 billion and a debt‑to‑equity ratio of 37.1% with net cash of CNY 2.02 billion, while operating cash flow improved (Q1 operating cash inflow CNY 772.52 million) and gross margin rose to 20.35%-all key datapoints that matter to investors assessing profitability, leverage, liquidity and valuation, so dive into the full breakdown to see how store expansion (1,095 outlets after 15 openings in Q1), supply‑chain upgrades and product mix (13.63% self‑owned/custom products in 2024) could shape the next chapter.

Jiajiayue Group Co., Ltd. (603708.SS) - Revenue Analysis

• Q1 2025 operating revenue: CNY 4.94 billion (down 4.77% vs Q1 2024)
• First 3 quarters of 2025 revenue: CNY 13.59 billion (down 3.81% YoY)
• Full-year 2024 revenue: CNY 18.26 billion (up 2.77% YoY)
• TTM revenue (as of 2025-11-28): CNY 17.72 billion
• Employees: 19,422; revenue per employee ≈ CNY 921,680
• Market capitalization (2025-11-28): CNY 7.08 billion

Jiajiayue Group Co., Ltd. (603708.SS) - Profitability Metrics

Key profitability indicators for Jiajiayue Group Co., Ltd. in the first quarter of 2025 and relevant trailing metrics provide a snapshot of earnings quality, margin structure, and shareholder returns.

• Net profit attributable to shareholders (Q1 2025): CNY 141.89 million (-3.59% YoY).
• Net profit excluding non-recurring gains and losses (Q1 2025): CNY 141.07 million (+3.92% YoY).
• Net profit margin (Q1 2025): ~2.87%.
• Gross profit margin (Q1 2025): 20.35% (+0.95 percentage points YoY).
• Return on equity (ROE, Q1 2025): 5.77% (vs 5.71% in Q1 2024).
• Earnings per share (EPS, TTM as of 2025-11-28): CNY 0.24.

• Improved gross margin (+0.95 pp) suggests better product mix or cost control contributing to the rise in core profitability despite a small drop in reported net profit.
• Nearly flat ROE versus prior year indicates stable capital efficiency; EPS of CNY 0.24 (TTM) frames valuation and per-share earnings expectations.
• The close proximity between net profit and net profit excluding non-recurring items implies limited one-off impacts in Q1 2025, supporting underlying earnings quality.

Further contextual and historical detail about the company can be found here: Jiajiayue Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiajiayue Group Co., Ltd. (603708.SS) - Debt vs. Equity Structure

• Total assets: CNY 13.53 billion
• Total liabilities: CNY 11.08 billion
• Total shareholder equity: CNY 2.5 billion
• Total debt: CNY 909.3 million
• Debt-to-equity ratio: 37.1%
• Cash and short-term investments: CNY 2.93 billion (net cash position: CNY 2.02 billion)
• Interest coverage ratio: 3.1
• Enterprise value (as of 2025-11-28): CNY 8.35 billion

• Leverage interpretation: a 37.1% debt-to-equity ratio indicates debt funding is modest relative to equity; the company retains capacity to increase debt if needed.
• Liquidity position: CNY 2.93 billion in cash and short-term investments yields a net cash position of roughly CNY 2.02 billion after accounting for interest-bearing debt, reducing refinancing risk.
• Interest servicing: an interest coverage ratio of 3.1 suggests the company can cover interest expense comfortably, though it leaves less cushion than higher-rated peers.
• Balance-sheet scale vs. market value: enterprise value of CNY 8.35 billion vs. book assets of CNY 13.53 billion highlights differences between market valuation and reported asset base.

Jiajiayue Group Co., Ltd. (603708.SS) - Liquidity and Solvency

Key reported figures for Q1 2025:

• Net cash flow from operating activities: CNY 772.52 million (up 10.06% year-over-year).
• Cash and cash equivalents at period end: CNY 2.48 billion (up 20% from end-2024).
• Net cash outflow from investing activities: CNY 109.24 million (improved versus prior year).
• Net investment loss: CNY 1.54 million (improved versus prior year loss).
• Current ratio: not specified in available data.
• Quick ratio: not specified in available data.

• The operating cash flow growth and a 20% rise in cash balances strengthen short-term liquidity buffers.
• Improved investing outflow and a smaller net investment loss reduce financing pressure and signal more disciplined capital deployment.
• Absence of disclosed current and quick ratios limits granular assessment of working-capital structure and immediate liquidity coverage.

See also: Jiajiayue Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiajiayue Group Co., Ltd. (603708.SS) - Valuation Analysis

• Trailing twelve months (TTM) P/E: 47.76 - indicates investors have been willing to pay a high multiple for last 12 months' earnings.
• Forward P/E: 31.84 - markets expect earnings to improve versus the TTM baseline.
• Price-to-Sales (P/S): 0.40 - suggests the company is valued at less than half a yuan per yuan of revenue, indicating relatively low sales-based valuation.
• Price-to-Book (P/B): 2.89 - equity valued nearly 3x book, implying a premium to net asset value.
• Market Capitalization: CNY 7.08 billion (as of 2025-11-28).
• Enterprise Value (EV): CNY 8.35 billion (as of 2025-11-28) - incorporates net debt and minority interests into the valuation.

Jiajiayue Group Co., Ltd. (603708.SS) - Risk Factors

• Top-line deterioration: Revenue down 4.77% YoY in Q1 2025, increasing sensitivity to sales volatility and competitive pressures.
• Low profitability: Net profit margin ≈ 2.87% in Q1 2025, leaving limited room to absorb cost inflation or demand shocks.
• Leverage considerations: Debt-to-equity ratio at 37.1%-moderate leverage but meaningful for a thin-margin business.
• Interest coverage constraint: Interest coverage ratio of 3.1x; serviceable today but vulnerable if operating income weakens.
• Capital deployment risks: Net cash outflow from investing activities of CNY 109.24 million in Q1 2025 and a net investment loss of CNY 1.54 million.

Jiajiayue Group Co., Ltd. (603708.SS) - Growth Opportunities

• Retail network: opened 8 new direct-operated stores and 7 new franchise stores in Q1 2025, bringing the total store base to 1,095.
• Strategic pivot: shifting from scale retail to quality retail with targeted high-quality openings and store-layout optimization to improve per-store productivity.
• Supply chain upgrades: completion of the second phase of the Huai Bei comprehensive industrial park - expected to shorten lead times and lower logistics unit costs.
• Product mix and margin focus: self-owned and customized products accounted for 13.63% of total sales in 2024, a rising share that supports higher gross margins and brand differentiation.

• Operational actions: optimize store layouts, reallocate resources to higher-performing locations, and pursue high-quality openings rather than purely net-new counts.
• Supply-chain priorities: leverage Huai Bei Phase II to centralize distribution, reduce stockouts, and shorten replenishment cycles.
• Product strategy: increase share of self-owned/customized products beyond 13.63% to capture higher margins and lock in customer loyalty.
• Franchise mix: use franchising selectively to expand presence while conserving capital and balancing direct-operated store economics.