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

Quickly get up to speed on Zhefu Holding Group Co., Ltd. (002266.SZ): the company posted quarterly revenue of 5.51 billion CNY (Q3 2025), a TTM revenue of 21.81 billion CNY (up 9.35% YoY), and a 2024 annual revenue of 20.91 billion CNY; profitability shows nine‑month net income of 738.79 million CNY with basic EPS of 0.14 CNY and a TTM EPS of 0.18 CNY (P/E ~24.7), while balance sheet metrics include total assets of 25.94 billion CNY, total liabilities of 14.14 billion CNY (debt‑to‑equity ~1.19), total equity of 11.80 billion CNY, a P/B of 1.91 and ROA of 3.31%; liquidity and cash strength feature cash and short‑term investments of 5.15 billion CNY, a current ratio of ~1.83 and quick ratio ~1.50, but free cash flow fell sharply (quarter FCF 155.48 million CNY, down 88.55% YoY) even as operating cash flow rose 49.07% YoY to 234.61 million CNY; valuation sits at modest levels (P/S 0.96, dividend 0.05 CNY per share yielding ~1.12%) with market caps reported between ~20.97-22.72 billion CNY and share prices in the 2.88-4.95 CNY 52‑week range, and investors should weigh notable risks such as a March 2025 warning letter from the Zhejiang Securities Regulatory Bureau regarding undisclosed related transactions, competitive and regulatory pressures in hydropower/nuclear equipment, raw material and supply‑chain volatility, and technological threats against growth opportunities like major project contracts (e.g., Shaanxi Shahe Pumped Storage), R&D initiatives and expansion into international markets.

Zhefu Holding Group Co., Ltd. (002266.SZ) - Revenue Analysis

Zhefu Holding Group reported continued top-line expansion into 2025, driven by sequential quarterly growth and solid year-over-year gains across the last twelve months.

• Quarterly revenue (Q3 ending Sep 30, 2025): 5.51 billion CNY (+11.43% QoQ)
• Trailing twelve months (TTM) revenue: 21.81 billion CNY (+9.35% YoY)
• Full-year 2024 revenue: 20.91 billion CNY (+10.35% vs. 2023)
• Revenue per employee: ~3.12 million CNY (6,982 employees)
• Price-to-sales (P/S): 0.96 - suggests relatively low market valuation vs. sales
• Market capitalization: 20.97 billion CNY; Share price: 4.060 CNY (as of 2025-11-28)

• Sequential momentum: an 11.43% QoQ increase in the quarter ending 2025-09-30 indicates improving demand or seasonally strong execution.
• Stable YoY growth: TTM and FY2024 growth rates (9.35% and 10.35%) point to consistent expansion rather than one-off spikes.
• Operational efficiency: ~3.12 million CNY revenue per employee suggests relatively high productivity for the headcount level.
• Valuation context: P/S of 0.96 implies the market values the company at just below one times annual sales - potentially attractive if margins and cash flows support it.

For corporate positioning and stated long-term goals, see: Mission Statement, Vision, & Core Values (2026) of Zhefu Holding Group Co., Ltd.

Zhefu Holding Group Co., Ltd. (002266.SZ) - Profitability Metrics

• Nine months ending September 30, 2025: Net income - 738.79 million CNY (vs. 775.69 million CNY in the same period 2024).
• Basic EPS (9M 2025): 0.14 CNY - unchanged from the prior year period.
• Quarter ending June 30, 2025: Net profit margin - 5.18%, up 74.41% versus Q2 2024.
• Operating profit: 2023 - 0.5 billion CNY (2022 - 0.6 billion CNY).
• TTM EPS: 0.18 CNY; trailing P/E: 24.77.
• Declared dividend: 0.05 CNY per share; yield 1.12%; ex‑dividend date June 18, 2025.

• Profitability drivers visible: quarter-over-quarter margin expansion suggests improving cost control or pricing in recent months despite lower cumulative net income for the nine‑month window.
• Earnings per share stability (0.14 CNY for 9M) and modest dividend (0.05 CNY) point to a conservative capital‑return posture relative to earnings level (TTM EPS 0.18 CNY).
• Valuation: P/E of 24.77 on a TTM EPS of 0.18 CNY implies market pricing that anticipates future earnings growth or lower perceived risk; investors should weigh this against recent operating profit decline (2022→2023).

Zhefu Holding Group Co., Ltd. (002266.SZ) - Debt vs. Equity Structure

• Total assets: 25.94 billion CNY (as of 2025-06-30)
• Total liabilities: 14.14 billion CNY (as of 2025-06-30)
• Total equity: 11.80 billion CNY (as of 2025-06-30)
• Debt-to-equity ratio: ~1.19
• Shares outstanding: 5.16 billion
• Market capitalization: 22.72 billion CNY (as of 2025-11-17)
• Beta: 0.49
• Price-to-book (P/B): 1.91
• Return on assets (ROA): 3.31%
• Return on capital: 5.51%

• Leverage context: liabilities represent ~54.5% of total assets (14.14 / 25.94).
• Equity buffer: book equity of 11.80 billion CNY supports operations and absorbs shocks.
• Valuation lens: P/B of 1.91 and market cap of 22.72 billion CNY imply market pricing at a premium to book.
• Volatility and return profile: low beta (0.49) with modest ROA (3.31%) and return on capital (5.51%).

Zhefu Holding Group Co., Ltd. (002266.SZ) - Liquidity and Solvency

• Cash & short-term investments: 5.15 billion CNY (up 22.49% vs. 30-Jun-2024).
• Current ratio: ~1.83 - sufficient to cover short-term obligations.
• Quick ratio: ~1.50 - adequate immediate-liquidity position excluding inventories.
• Cash flow from operations (Q2 2025): 234.61 million CNY (up 49.07% YoY).
• Free cash flow (Q2 2025): 155.48 million CNY (down 88.55% YoY).
• Effective tax rate: 19.39% (unchanged from prior year).

• Interpretation: stronger cash holdings and higher operating cash inflow point to improved short-term liquidity, while the steep YoY drop in free cash flow warrants review of capital expenditures, working capital swings, or one-off items affecting FCF.
• For background on company strategy and ownership that may explain capital allocation, see Zhefu Holding Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money.

Zhefu Holding Group Co., Ltd. (002266.SZ) - Valuation Analysis

Key valuation metrics for Zhefu Holding Group Co., Ltd. as of October 27, 2025 show a company trading at a moderate multiple with limited volatility and modest shareholder returns. These figures provide a snapshot of market expectations, capital structure perception, and income characteristics for investors assessing entry or rebalancing points.

• Valuation context: P/E of 24.79 suggests investors expect steady earnings but not rapid expansion compared with higher-growth peers.
• Balance-sheet view: P/B near 1.91 implies limited discount to equity-market values tangible assets reasonably close to book.
• Income contribution: 1.15% dividend yield offers modest cash return; not a primary income play.
• Volatility and risk: Beta 0.49 reduces portfolio volatility exposure but may limit upside in bull markets.

For deeper investor context and ownership trends, see: Exploring Zhefu Holding Group Co., Ltd. Investor Profile: Who's Buying and Why?

Zhefu Holding Group Co., Ltd. (002266.SZ) - Risk Factors

• Regulatory & governance risk: the March 2025 warning increases the probability of administrative penalties, delayed filings or compelled restatements. A material sanction or remediation program could increase compliance costs by an estimated CNY 50-200 million in a given year depending on scope.
• Market competition: the company operates in the hydropower and nuclear power equipment manufacturing sectors, where large incumbents and specialized suppliers exert pricing pressure and drive R&D. Market-share erosion scenarios of 3-12% would translate to revenue declines in the low to mid-hundreds of millions CNY annually for a mid‑sized supplier.
• Raw material & supply chain volatility: key inputs (steel, copper, electronic components) expose margins to commodity swings. A sustained 10% rise in major input costs could compress gross margin by ~2-6 percentage points, reducing operating profit by tens to hundreds of millions CNY depending on sales scale.
• Regulatory changes (environmental/compliance): tightening of emissions, waste-handling or import/export controls can require capex and OPEX increases. Compliance-driven capex could range from CNY 100-800 million over multi-year programs for manufacturing upgrades.
• Geopolitical exposure: international contracts and supply lines expose the company to trade restrictions, sanctions, export controls and FX risk; interruption of a major export contract could reduce annual revenue by single- to low-double-digit percentages.
• Technology & obsolescence: advances by competitors (e.g., digital controls, high-efficiency turbine designs, modular reactor components) may shorten product lifecycles. Failure to invest in R&D could result in market share loss and price concessions; R&D catch-up would likely require sustained annual investment increases of CNY 50-300 million.

• Liquidity & covenant sensitivity: given potential hit to margins and cashflow under adverse scenarios, rating agencies or lenders could seek covenant resets; maintain at least 12-18 months of committed liquidity or undrawn facilities to buffer shocks.
• Disclosure & investor relations: the March 2025 regulatory notice elevates the importance of timely disclosures and third-party audits; inadequate remediation may prolong share-price discount and raise cost of capital.

Zhefu Holding Group Co., Ltd. (002266.SZ) - Growth Opportunities

Zhefu Holding Group Co., Ltd. (002266.SZ) reported revenue of 20.912 billion CNY in 2024 and was ranked 393rd on the 2025 China Manufacturing Private Enterprise Top 500, positioning the company as a significant mid-large player in Chinese manufacturing with clear lines for near- and medium-term growth.

• Backlog and large project wins: confirmed contract participation in major infrastructure projects such as the Shaanxi Shahe Pumped Storage Power Station provides near-term revenue visibility and higher-margin engineering services.
• Domestic market depth: established scale in China's machinery and energy-related sectors supports cross-selling and EPC (engineering, procurement, construction) opportunities across provinces.
• International expansion: targeting overseas markets (project exports, equipment sales, and service contracts) can diversify revenue streams and reduce single-market concentration risk.
• R&D-driven product upgrades: increased investment in R&D can yield higher value-added products (advanced pumps, turbines, and control systems) and improve gross margins over time.
• Strategic partnerships and joint ventures: alliances with global or regional technology partners can accelerate entry into new segments and distribute capital/operational risk.
• Sector tailwinds: the global emphasis on clean energy, grid modernization, and water infrastructure aligns with Zhefu's core competencies, supporting sustainable demand growth.

For background on corporate structure, historical performance and broader strategy, see: Zhefu Holding Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money