China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) Bundle
Dive into a data-driven snapshot of China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS): 2024 revenue hit CNY 60.46 billion (up 7.27% year-over-year) while TTM revenue sits at CNY 59.65 billion (down 3.20%), Q3 2025 quarterly sales surged to CNY 14.67 billion (+28.43% YoY), and the company operates with a market cap of CNY 13.57 billion and 1.68 billion shares outstanding; profitability is thin - TTM net income CNY 407.70 million (net margin 0.68%, EPS CNY 0.25) - yet investors note a 4.33% dividend yield (CNY 0.35/share) alongside conservative leverage (debt-to-equity 0.05, net cash CNY 4.93 billion, cash CNY 5.29 billion), healthy liquidity (current ratio 2.14, quick ratio 1.10), an Altman Z-Score of 7 and low debt-to-EBITDA (0.22); valuation shows trailing P/E 32.68, forward P/E 13.88, P/B 1.85, P/S 0.23 and EV of CNY 8.70 billion (EV/EBITDA 5.17), while risks - regulatory shifts, fierce retail competition, gold price volatility, inventory-heavy working capital and execution challenges for expansion - sit alongside growth levers like lower-tier city retail expansion, online sales build-out, product diversification, premium segment entry and upcoming catalysts from earnings and store openings.
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) - Revenue Analysis
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) shows mixed topline momentum in recent periods with year and quarter-level divergences, low valuation metrics relative to sales, and high productivity per employee. Key headline figures and their implications are summarized below.
- 2024 annual revenue: CNY 60.46 billion (+7.27% vs. 2023 CNY 56.36 billion)
- TTM revenue: CNY 59.65 billion (down 3.20% YoY)
- Q3 2025 quarterly revenue: CNY 14.67 billion (+28.43% vs. Q3 2024)
- Revenue per employee: CNY 45.36 million (1,315 employees)
- Price-to-sales (P/S): 0.23
- Market capitalization: CNY 13.57 billion; Shares outstanding: 1.68 billion
| Metric | Value | Period / Note |
|---|---|---|
| Annual Revenue | CNY 60.46 billion | 2024 (+7.27% YoY) |
| TTM Revenue | CNY 59.65 billion | Trailing twelve months (-3.20% YoY) |
| Quarterly Revenue | CNY 14.67 billion | Q3 2025 (+28.43% YoY) |
| Revenue per Employee | CNY 45.36 million | 1,315 employees |
| Price-to-Sales (P/S) | 0.23 | Market valuation vs. sales |
| Market Capitalization | CNY 13.57 billion | Current market cap |
| Shares Outstanding | 1.68 billion | Basic shares |
Key observations:
- The 2024 full-year revenue increase (+7.27%) contrasts with a modest TTM decline (-3.20%), indicating recent softening before a pronounced Q3 2025 rebound (+28.43%).
- High revenue per employee (CNY 45.36M) signals strong operational productivity for a jewellery manufacturer.
- A low P/S of 0.23 and market cap CNY 13.57B versus trailing sales near CNY 60B imply a valuation discount that could reflect margin, growth, or risk concerns.
For contextual background on the company's structure, history and business model, see: China National Gold Group Gold Jewellery Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) - Profitability Metrics
Key profitability outcomes for China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) for the trailing twelve months (TTM) highlight a low-margin, dividend-paying business with modest returns on equity and limited operating leverage.
- Net income (TTM): CNY 407.70 million
- Net profit margin (TTM): 0.68%
- Earnings per share (EPS, TTM): CNY 0.25
- Return on equity (ROE): 5.63%
- Operating margin: 2.73%
- Gross margin: 3.95%
- Annual dividend per share: CNY 0.35
- Dividend yield: 4.33%
| Metric | Value | Implication |
|---|---|---|
| Net Income (TTM) | CNY 407.70 million | Positive bottom line but small relative to revenue base |
| Net Profit Margin | 0.68% | Very thin margin typical of low-value-add retail/jewellery segments |
| EPS (TTM) | CNY 0.25 | Modest per-share earnings; sensitivity to sales fluctuations |
| ROE | 5.63% | Moderate return for shareholders; room for improvement |
| Operating Margin | 2.73% | Core operations generate limited profit after operating costs |
| Gross Margin | 3.95% | Low markup above cost of goods sold; competitive pressure or high commodity cost pass-through |
| Dividend per share | CNY 0.35 | Cash return to shareholders |
| Dividend Yield | 4.33% | Attractive yield relative to modest earnings |
Interpretation highlights:
- The gross margin of 3.95% and operating margin of 2.73% indicate that most revenue is absorbed by cost of goods sold and operating expenses, leaving limited buffer for net profitability.
- ROE of 5.63% shows the company generates modest returns on shareholders' equity; coupled with EPS of CNY 0.25, growth or margin expansion will be required to materially increase shareholder value.
- A net profit margin of 0.68% signals vulnerability to revenue declines or cost inflation; even small adverse moves can push the company into losses.
- The dividend yield of 4.33% (CNY 0.35/share) provides income-focused investors with a tangible cash return, though payout sustainability depends on future net income and cash flow.
For corporate context and stated long-term priorities, see Mission Statement, Vision, & Core Values (2026) of China National Gold Group Gold Jewellery Co.,Ltd.
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) Debt vs. Equity Structure
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) exhibits a conservative capital structure characterized by minimal leverage, strong liquidity and a robust ability to service interest. Key headline figures provide a snapshot of the company's financial conservatism and short-term resilience.- Debt-to-equity ratio: 0.05 - a very low leverage level versus industry peers.
- Total debt: CNY 367.23 million; net cash position: CNY 4.93 billion - net cash excess substantially exceeds gross debt.
- Current ratio: 2.14 - indicates comfortable coverage of near-term liabilities by current assets.
- Quick ratio: 1.10 - sufficient immediate liquidity excluding inventories.
- Interest coverage ratio: 33.43 - very strong ability to meet interest obligations from operating earnings.
- Enterprise value: CNY 8.70 billion; enterprise-to-revenue ratio: 0.12 - valuation metric suggesting modest EV relative to revenue.
| Metric | Value | Interpretation |
|---|---|---|
| Debt-to-Equity Ratio | 0.05 | Extremely low leverage; equity-funded balance sheet |
| Total Debt | CNY 367.23 million | Small nominal debt burden |
| Net Cash Position | CNY 4.93 billion | Strong liquidity buffer beyond debt |
| Current Ratio | 2.14 | Healthy short-term solvency |
| Quick Ratio | 1.10 | Adequate immediate liquidity (ex-inventory) |
| Interest Coverage Ratio | 33.43 | Very high ability to cover interest expenses |
| Enterprise Value (EV) | CNY 8.70 billion | Market-implied value including net debt |
| EV / Revenue | 0.12 | Low EV relative to revenue - suggests conservative valuation |
- Financial flexibility: With CNY 4.93 billion net cash, the company can fund operations, capital expenditures, dividends or opportunistic M&A without relying on new debt.
- Risk profile: Low leverage and high interest coverage reduce refinancing and insolvency risk under adverse conditions.
- Liquidity trade-offs: Quick ratio of 1.10 shows adequate liquid assets but also signals inventories contribute meaningfully to current assets (current ratio 2.14).
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) - Liquidity and Solvency
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) demonstrates a solid short-term liquidity profile and low solvency risk, underpinned by sizable cash reserves, positive operating cash flow and conservative leverage metrics. Key quantitative indicators below illustrate the company's position to meet obligations and invest in operations.- Cash and cash equivalents: CNY 5.29 billion
- Net cash per share: CNY 2.93
- Working capital: CNY 6.83 billion
- Operating cash flow: CNY 320.77 million
- Free cash flow: CNY 283.66 million
- Debt-to-EBITDA: 0.22
- Altman Z-Score: 7.00
| Metric | Value | Interpretation |
|---|---|---|
| Cash & Cash Equivalents | CNY 5,290,000,000 | Substantial liquidity cushion |
| Net Cash per Share | CNY 2.93 | Strong per-share cash backing |
| Working Capital | CNY 6,830,000,000 | Operational flexibility for short-term needs |
| Operating Cash Flow (TTM) | CNY 320,770,000 | Positive cash generation from operations |
| Free Cash Flow (TTM) | CNY 283,660,000 | Cash available after capex |
| Debt-to-EBITDA | 0.22 | Minimal leverage relative to earnings |
| Altman Z-Score | 7.00 | Low bankruptcy risk (comfortably above distress threshold) |
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) - Valuation Analysis
Key valuation metrics for China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) present a mixed picture: elevated earnings multiples on a trailing basis, a materially lower forward P/E, conservative enterprise valuation relative to EBITDA, and a very low price-to-sales multiple juxtaposed with high price-to-free-cash-flow. The Piotroski F-Score flags limited fundamental strength. Below are the specific figures and concise implications for investors.
| Metric | Value | Implication |
|---|---|---|
| Trailing P/E | 32.68 | Market priced premium relative to past earnings; higher risk if earnings fail to rebound |
| Forward P/E | 13.88 | Significant expected earnings improvement or one-off current-year weakness priced in |
| Price-to-Book (P/B) | 1.85 | Trading above book value - modest premium to net assets |
| EV/EBITDA | 5.17 | Relatively low enterprise valuation versus operating cash profitability |
| Price-to-Sales (P/S) | 0.23 | Very low multiple to revenue - suggests market undervalues top-line or thin margins |
| Price-to-Free Cash Flow (P/FCF) | 47.68 | High multiple on free cash flow - investors pay a premium for FCF generation |
| Piotroski F-Score | 3 | Low financial strength; several fundamental weaknesses present |
- Valuation disconnects: Trailing P/E (32.68) vs. Forward P/E (13.88) indicate either analyst-expected earnings recovery or current-year anomalies depressing historic EPS.
- Balance-sheet premium: P/B of 1.85 implies shareholders pay above net asset value but not an extreme premium for a commodity-linked jewellery business.
- Operational bargain: EV/EBITDA of 5.17 can be attractive for buyers targeting operating cash profitability.
- Revenue vs. cash: Very low P/S (0.23) suggests sales are cheap relative to market cap, yet P/FCF (47.68) shows the market assigns a high price to actual cash conversion.
- Fundamental caution: Piotroski F-Score of 3 signals potential earnings quality, liquidity, or leverage concerns that need granular review.
Immediate items for investor due diligence:
- Validate drivers of the forward P/E improvement - forecasted margin expansion, one-off items, or accounting effects.
- Reconcile low P/S with very high P/FCF to understand working-capital patterns and cash conversion cycles.
- Investigate balance-sheet items causing the low Piotroski F-Score (profitability persistence, leverage, and liquidity trends).
- Compare EV/EBITDA against peer gold-jewellery and precious-metals segments to gauge relative operational value.
For context on corporate direction and strategic priorities that may influence valuation, see: Mission Statement, Vision, & Core Values (2026) of China National Gold Group Gold Jewellery Co.,Ltd.
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) - Risk Factors
China National Gold Group Gold Jewellery Co.,Ltd. faces a concentrated set of operational, market and financial risks that materially influence cash flow, margins and balance-sheet volatility. Below are the principal risk drivers, quantified where possible to help investors assess exposure.- Regulatory risk: changes in Chinese gold trading, retail licensing, anti-money-laundering (AML) rules or import/export tariffs can increase compliance costs or constrain sales channels. Estimated impact: regulatory actions could raise operating costs by 1-3% of revenue in adverse scenarios.
- Competitive pressure: intense competition from domestic chains, online platforms and international brands may compress pricing power and gross margins. Potential margin compression: 100-400 basis points (bps) over 12-24 months if price-led competition intensifies.
- Gold price volatility: movements in spot gold affect cost of inventory and mark-to-market exposure. Sensitivity estimate: for a firm with inventory representing ~25-40% of total assets, a 10% change in gold price could alter inventory valuation by roughly 2.5-4.0% of total assets and change short-term working capital needs materially.
- Working capital and inventory risk: jewellery retail typically requires high inventory levels and long holding periods. Typical inventory days for jewellery retailers range widely (90-180 days); higher days payable/receivable mismatches can tie up cash and stress liquidity.
- Expansion & franchise execution: rapid store rollout or franchise expansion introduces execution risk-store-level losses, uneven same-store-sales, and increased SG&A. Rollout mis-execution could increase SG&A as a percentage of revenue by 2-5 percentage points in expansion phases.
- Consumer cyclicality: reliance on discretionary spending makes revenues sensitive to macro downturns. Historical sensitivity: discretionary jewelers often see revenue decline of 10-30% in severe consumer slowdowns, with larger declines for higher-ticket items.
| Risk | Estimated Likelihood | Estimated Financial Impact | Primary Channels |
|---|---|---|---|
| Regulatory change (gold trading/retail) | Medium (30-50%) | Operating cost increase 1-3% of revenue; temporary store closures possible | Compliance costs, licensing, trade rules |
| Price competition | High (50-70%) | Gross margin compression 100-400 bps; EBITDA down proportionally | Promotions, discounting, market share battles |
| Gold price swings | High (continuous) | Inventory valuation swing 2.5-4.0% of assets per 10% price move; P&L volatility via cost of goods sold | Inventory markdowns, hedging effectiveness |
| Working capital strain | Medium-High (40-60%) | Liquidity tightness; need for short-term funding; possible covenant pressure | High inventory days, stretched payables |
| Expansion/franchise execution | Medium (30-50%) | SG&A increase 2-5 p.p.; uneven ROI on new stores | Franchise quality, supply chain, store economics |
| Consumer demand downturn | Medium-High (40-60%) | Revenue decline 10-30% in severe downturns; margin pressure | Lower foot traffic, smaller basket sizes, fewer luxury purchases |
- Balance-sheet and liquidity pointers investors should monitor: current ratio (target buffer >1.2), net debt/EBITDA (watch for >2.5x), inventory days (ideally trending down from 120+), cash conversion cycle trending shorter.
- Risk mitigants management can deploy: dynamic product mix (higher-margin items), inventory hedging or supplier pricing arrangements, tighter franchise standards, centralized buying to reduce cost, and maintaining a liquidity buffer (3-6 months of operating cash flow).
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) - Growth Opportunities
China National Gold Group Gold Jewellery Co.,Ltd. (600916.SS) is positioned to capture multiple growth vectors across retail expansion, product mix, and macro-driven demand for gold. Key strategic moves and market conditions that could drive revenue and margin expansion include:- Retail footprint expansion: management plans to increase penetration in lower-tier Chinese cities where store density remains low relative to Tier-1/2 markets; targeted new store openings and shop-in-shop rollouts are expected to lift same-store-sales (SSS) and overall network revenue.
- Omnichannel growth: continued investment in online sales platforms and social commerce integrations to raise the contribution of digital channels versus historical levels.
- Product and brand initiatives: diversification into premium, customized and branded collections plus targeted marketing campaigns to move up the value chain and increase average selling price (ASP).
- Macro tailwinds: rising disposable incomes and periodic spikes in retail and investment demand for physical gold in China can increase unit volumes and drive seasonal revenue upside.
- Upcoming catalysts: scheduled quarterly earnings releases and announced rounds of store openings provide near-term stock-specific events that may act as growth catalysts.
- Gold price sensitivity: movements in gold prices materially affect raw-material costs, consumer sentiment for gold jewelry purchases, and gross-margin volatility-presenting both upside (investment-driven buying during price rallies) and downside (margin compression if price rises faster than retail pass-through).
| Growth Lever | Directional Impact | Near-term Timing |
|---|---|---|
| Lower-tier store openings | Revenue uplift; scale benefits on procurement | Next 12-24 months (phased openings) |
| Digital sales & social commerce | Higher contribution to sales mix; lower per-unit operating cost | Ongoing, accelerated FY cycles |
| Premium/customized products | Higher ASPs and margins | Product launches and brand campaigns rolling annually |
| Gold price movements | Margin pressure or volume-driven demand spikes | Continuous; major moves create short-term volatility |
| Marketing & loyalty programs | Improved customer retention and repeat purchase rates | Quarterly campaign cadence |
- Store count and net new openings by quarter (expansion cadence drives top-line visibility).
- Online sales percentage of total revenue (digital mix indicates structural change in distribution economics).
- Average selling price (ASP) and product mix shift toward premium/custom pieces.
- Gross margin and raw material (gold) cost per gram-sensitivity to bullion price movements.
- Comparable store sales (SSS) growth and same-day conversion rates across channels.
- Quarterly earnings releases that report net new stores, online sales growth, ASP trends, and margin reconciliation.
- Announcements of flagship openings in lower-tier city clusters and partnerships for e-commerce or fintech-driven payment solutions.
- Brand campaigns or celebrity/partnership launches aimed at premiumization and younger demographics.
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