Breaking Down Jiangsu Cnano Technology Co., Ltd. Financial Health: Key Insights for Investors

Investors seeking a data-driven read on Jiangsu Cnano Technology Co., Ltd. will find sharp contrasts in its Q1-TTM picture: Q1 2025 revenue fell to ¥334.72 million (a 17.92% QoQ drop from ¥407.8M) while TTM revenue as of Sept 30, 2025 was ¥1.41 billion (up 1.62% YoY) against 2024 annual revenue of ¥1.45 billion; profitability shows a mixed signal with Q1 net income down 13.96% to ¥58.15 million and a TTM net profit margin of 17.28%, but ROE slid to 1.96% in Q1 and EPS (TTM) is ¥0.75 implying a P/E in the 60s as market expectations remain elevated; balance-sheet and liquidity metrics are solid on paper-current ratio 4.36, quick ratio 3.98 and debt-to-equity ~0.43-yet narrow liquidity efficiency (DSO 573 days), a negative quarter cash change of ¥202.78M, and premium valuation multiples (EV/EBITDA 40.32, market cap ¥18.11B, P/S and P/E multiples above sector norms) underscore both risks and upside tied to NEV supply-chain exposure, R&D at 6.8% of revenue and potential tariff shifts-read on for the full breakdown and what these concrete numbers mean for investment decisions

Jiangsu Cnano Technology Co., Ltd. (688116.SS) - Revenue Analysis

• Q1 2025 revenue: ¥334.72 million - down 17.92% from Q4 2024 (¥407.8 million).
• FY2024 revenue: ¥1.45 billion - up 3.13% versus FY2023.
• TTM revenue (to 30 Sep 2025): ¥1.41 billion - up 1.62% year-over-year.

• Key downside driver for Q1 2025: global trade volatility - including shifts in US-China tariffs - likely disrupted order flows and logistics, pressuring near-term revenue.
• Demand sensitivity: exposure to the New Energy Vehicle (NEV) supply chain (clients such as ChangAn) creates revenue cyclicality tied to auto production and EV adoption.
• Valuation context: P/S of 10.89 implies the market prices significant growth or margin improvement expectations into current revenue - a higher bar for operational execution.

Jiangsu Cnano Technology Co., Ltd. (688116.SS) - Profitability Metrics

Recent quarterly and trailing metrics show mixed signals: earnings momentum has softened in Q1 2025 while some annualized and trailing figures point to moderate profitability but elevated market expectations.

• Q1 2025 net income: ¥58.15 million, a 13.96% QoQ decrease from ¥67.58 million.
• Q3 2025 net profit: ¥79.35 million, up 18.26% YoY.
• Trailing twelve months (TTM) net profit margin: 17.28%.
• ROE: 1.96% in Q1 2025 (annualized ROE for 2024 was 8.64%).
• EPS (TTM): ¥0.75; P/E ratio: 61.25.
• EBITDA per share (TTM ended March 2025): ¥0.96.

Key interpretations to consider:

• The QoQ decline in Q1 2025 net income signals near-term pressure on profits despite a stronger Q3 2025 YoY result.
• A TTM net profit margin of 17.28% indicates the company retains a moderate portion of revenue as profit, but margin sustainability should be monitored given recent quarterly volatility.
• The sharp decline in ROE (from an annualized 8.64% in 2024 to 1.96% in Q1 2025) implies lower efficiency in generating returns for shareholders in the most recent quarter.
• A high P/E of 61.25 against an EPS of ¥0.75 reflects elevated market expectations; investors should weigh growth prospects against valuation risk.
• EBITDA per share of ¥0.96 TTM provides an alternative cash-centric profitability gauge useful for cross-comparisons with peers and for assessing coverage of interest/capital needs.

For related investor positioning and ownership context, see: Exploring Jiangsu Cnano Technology Co., Ltd. Investor Profile: Who's Buying and Why?

Jiangsu Cnano Technology Co., Ltd. (688116.SS) - Debt vs. Equity Structure

• Debt-to-Equity (Q1 2025): 0.43 - indicates moderate debt relative to equity (43 cents of debt per RMB 1 of equity).
• Total debt-to-equity (percentage basis): 37.88% - consistent with a conservative leveraging approach.
• Interest coverage ratio: 6.80 - EBIT covers interest expense ~6.8x, implying comfortable ability to service debt.
• Current ratio: 4.36 - strong short-term liquidity; current assets exceed current liabilities by 4.36x.
• Quick ratio: 3.98 - ample liquid assets to meet immediate obligations excluding inventory.
• Enterprise value / EBITDA: 40.32 - signals a high valuation multiple relative to operating earnings.

• Creditors: low default risk given high interest coverage and strong liquidity ratios.
• Equity investors: conservative leverage reduces financial risk but the EV/EBITDA of 40.32 suggests market expectations of high future growth or limited near-term earnings, increasing valuation risk if growth disappoints.
• Management: room to deploy incremental debt for accretive investments given current conservative levels, though any increase should be weighed against maintaining liquidity cushions.

Jiangsu Cnano Technology Co., Ltd. (688116.SS) - Liquidity and Solvency

• Current ratio: 4.36 - strong ability to cover short-term obligations with current assets.
• Quick ratio: 3.98 - indicates near-term liquidity remains robust even excluding inventories.
• Net change in cash (latest quarter): -¥202.78 million - a quarter with cash outflow that warrants monitoring for operating/capital timing.
• Enterprise value / EBITDA: 40.32 - a high multiple suggesting market is valuing growth or scarcity; implies limited margin for downside.
• Total debt / equity: 37.88% - conservative leverage, reducing financial risk from debt servicing.
• Interest coverage ratio: 6.80 - adequate ability to meet interest obligations from operating earnings.

• High liquidity ratios reduce short-term default risk but necessitate review of asset efficiency.
• Negative quarterly cash flow requires checking drivers (working capital, capex, M&A, or one-offs).
• EV/EBITDA at 40.32 signals market expectations for significant future growth - assess growth visibility versus execution risk.
• Debt levels and interest coverage provide a conservative buffer, supporting financial flexibility.

Jiangsu Cnano Technology Co., Ltd. (688116.SS) - Valuation Analysis

Jiangsu Cnano Technology displays premium-market pricing across multiple valuation metrics, signaling elevated investor expectations relative to current earnings, sales and book value. The numbers below quantify that premium and highlight valuation risk versus growth assumptions.

• Trailing P/E: 65.90 - high historical earnings multiple.
• Forward P/E: 32.42 - market expects earnings growth or margin expansion.
• Trailing twelve months P/E (alternative measure): 77.58 - underscores recent volatility or one-off impacts on earnings.
• P/S: 12.85 - investors are paying a substantial premium per unit of revenue.
• P/B: 4.78 - market values the company well above its book equity.
• EV/EBITDA: 40.32 - suggests a stretched price relative to operating cash-flow generation.

Key interpretative points:

• A high trailing P/E and an even higher trailing‑12M P/E indicate recent earnings compression or one-off items; the forward P/E halving versus trailing suggests the market expects recovery or margin improvement.
• P/S and P/B levels place the stock in a premium growth valuation bucket - investors are effectively pricing in sustained high revenue growth and profitability improvements.
• EV/EBITDA at 40.32 raises sensitivity to downside: if EBITDA growth slows, valuation contraction risk is material.

For investor context and shareholder activity details, see: Exploring Jiangsu Cnano Technology Co., Ltd. Investor Profile: Who's Buying and Why?

Jiangsu Cnano Technology Co., Ltd. (688116.SS) - Risk Factors

• Operational inefficiency: Days Sales Outstanding (DSO) reached 573 days in Q1 2025, indicating severe collection delays and potential receivable recoverability issues.
• Profitability erosion: Net income fell by 13.96% quarter-over-quarter in Q1 2025, signaling weakening earnings momentum.
• Trade and macro exposure: Sensitivity to global trade volatility (e.g., shifts in US-China tariff policy) could disrupt export demand and input costs.
• Valuation disconnect: A trailing P/E of 59.27 in Q1 2025 implies high market expectations that may not be supported by current fundamentals.
• Margin pressure: Gross margin declined to 33.19% in Q1 2025 from 33.75% in Q4 2024, a sign of margin compression.
• Liquidity and inventory stress: Quick ratio of 1.55 alongside inventory days of 372 in Q1 2025 points to inventory-management and short-term liquidity efficiency concerns.

• Cash-flow sensitivity: With DSO and inventory days elevated, operating cash flow is likely strained and dependent on receivable conversion or inventory clearance.
• Credit and counterparty risk: Prolonged receivables increase exposure to customer defaults and may raise financing costs if short-term liquidity is tapped.
• Execution risk: Restoring margins and working-capital efficiency will require effective pricing, cost control and inventory management - failures here would further pressure earnings.
• Market-risk amplification: High valuation makes share price more vulnerable to earnings misses or negative macro news.

Jiangsu Cnano Technology Co., Ltd. (688116.SS) - Growth Opportunities

Jiangsu Cnano Technology Co., Ltd. (688116.SS) sits at the intersection of advanced materials and the accelerating new energy vehicle (NEV) supply chain. Key factors supporting near- and medium-term growth are operational exposure to high-growth tech sectors, targeted R&D investment, favorable trade developments, and expanding regional NEV markets.

• Sector exposure: Direct supplier roles in NEV and high-tech components position the company to capture demand from electrification, lightweighting, and battery-material applications.
• Trade environment: US-China tariff rollbacks announced in May 2025 reduce export cost uncertainty and may improve margins and competitiveness in international shipments.
• Regional expansion tailwinds: Growth of NEV manufacturing bases in Asia (e.g., ChangAn's Thailand operations) creates downstream demand for suppliers like Cnano.
• R&D commitment: Q1 2025 R&D spending equal to 6.8% of revenue underpins product development and potential technology-led differentiation.
• Market valuation: A market capitalization of ¥18.11 billion reflects investor confidence and provides potential access to capital markets for scaling operations.

Practical growth vectors include:

• Scaling supply into NEV battery and component lines as OEMs ramp production in Southeast Asia and other export markets.
• Leveraging R&D (6.8% of revenue) to move from commodity inputs toward higher-value, differentiated materials and proprietary formulations.
• Capturing share from client geographic expansions (e.g., ChangAn's Thailand base) through localized supply agreements or JV partnerships.
• Benefiting from reduced tariff barriers post-May 2025 to expand export volumes and improve price competitiveness.

For strategic context on corporate direction and values that may shape growth execution, see: Mission Statement, Vision, & Core Values (2026) of Jiangsu Cnano Technology Co., Ltd.