Breaking Down 5i5j Holding Group Co., Ltd. Financial Health: Key Insights for Investors

Peeling back the numbers on 5i5j Holding Group Co., Ltd. (000560.SZ) reveals a company with mixed signals: operating revenue of 8.165 billion yuan in the first three quarters of 2025 (a year-on-year decline of 6.81%) alongside a sharply improved net profit attributable to shareholders of 42.327 million yuan (up 398.75% YoY), while TTM metrics show a gross profit margin of 11.08% and a net profit margin of 0.90% with EPS of 0.05 yuan and ROE of 1.18%; liquidity and leverage paint a different picture with short-term assets of 9.8 billion yuan versus short-term liabilities of 12.8 billion yuan, a current ratio of 0.76 and quick ratio of 0.64, a net cash position of -9.21 billion yuan, net debt to equity of 63.1% (up from 27.2% five years ago to 95.7% at its peak), debt/EBITDA of 2.48 and an interest coverage ratio of -0.75; market valuation sits at a market cap of 6.85 billion yuan and enterprise value of 16.11 billion yuan with trailing P/E of 63.72, forward P/E of 30.63, P/S 0.57 and P/B 0.72, while operational highlights include brokerage revenue of 2.032 billion yuan (+13.57%) with GTV ≈110.8 billion yuan (+10.5%), asset management managing 319,000 units (+9%) with a 95.2% rental rate and 8.8-day turnover, nearly 3,000 stores and 31,000 agents, a 23% rise in monthly active users and a 100% increase in online listings-key figures for investors to examine in the full article.

5i5j Holding Group Co., Ltd. (000560.SZ) Revenue Analysis

• Operating revenue (first three quarters of 2025): 8.165 billion yuan, down 6.81% year-on-year.
• Operating revenue (first half of 2025): 5.66 billion yuan, down 2.7% year-on-year.
• Net profit attributable to shareholders (first three quarters of 2025): 42.327 million yuan, up 398.75% year-on-year.
• Net profit attributable to parent company (first half of 2025): 38 million yuan, up 30.8% year-on-year.
• Brokerage business revenue: 2.032 billion yuan, up 13.57%; brokerage GTV: ~110.8 billion yuan, up 10.5%.
• Asset management: 319,000 units under management, up 9% year-on-year; average rental turnover time 8.8 days; rental rate 95.2%.

• Revenue mix shift: brokerage strength (2.032 bn) helped offset softer overall revenue trends.
• Profitability improvement: net profit surge (398.75% through Q3) suggests margin recovery or one-off gains; first-half parent net profit up 30.8% supports sustained improvement.
• Operational resilience in rentals: high rental rate (95.2%) and quick turnover (8.8 days) indicate strong asset utilization.

5i5j Holding Group Co., Ltd. (000560.SZ) - Profitability Metrics

• Low net margins (0.52% for first three quarters 2025; 0.90% TTM) indicate limited conversion of revenue into bottom-line earnings.
• Gross margin of 11.08% suggests product/service cost structure leaves modest room to cover operating expenses and generate operating profit.
• Negative operating margin (-3.97% TTM) highlights operating cost pressure or one-off items eroding operating profitability.
• ROE at 1.18% and EPS of 0.05 CNY signal limited returns to shareholders given the equity base and share count (2.36 billion shares).

• Investors should monitor revenue mix, cost-of-sales trends, and operating expense control to assess prospects for margin recovery.
• Compare these margins against industry peers and historical company levels to determine whether current performance is cyclical or structural.

5i5j Holding Group Co., Ltd. (000560.SZ) - Debt vs. Equity Structure

• Net debt to equity: 63.1% - a moderate overall leverage indicator reflecting net debt relative to shareholder equity.
• Five-year debt-to-equity trend: increased from 27.2% to 95.7%, indicating a significant rise in leverage over the period.
• Current ratio: 0.76 - short-term assets are insufficient to fully cover short-term liabilities.
• Quick ratio: 0.64 - liquidity remains constrained even excluding inventories.
• Debt / EBITDA: 2.48 - operating cash flow (pre-interest, tax, depreciation, amortization) could cover debt roughly 2.5 times.
• Interest coverage ratio: -0.75 - earnings are inadequate to cover interest expenses (negative coverage).

• Key risk signals: rising leverage (27.2% → 95.7%) combined with current and quick ratios below 1.0, and negative interest coverage.
• Offsetting factor: debt/EBITDA at 2.48 suggests EBITDA can service debt principal to an extent, but interest shortfall lowers resilience.
• Investor considerations: monitor short-term liquidity management, interest expense trends, and any capital-raising or deleveraging actions by management.

5i5j Holding Group Co., Ltd. (000560.SZ) - Liquidity and Solvency

• Short-term assets: ¥9.8 billion
• Short-term liabilities: ¥12.8 billion
• Long-term assets: ¥4.1 billion
• Long-term liabilities: ¥4.1 billion
• Current ratio: 0.76
• Quick ratio: 0.64
• Net cash position: -¥9.21 billion
• Operating cash flow: ¥3.92 billion
• Capital expenditures: ¥489.74 million
• Free cash flow: ¥3.43 billion

• Short-term assessment: current ratio (0.76) and quick ratio (0.64) both indicate the company may struggle to cover immediate liabilities without converting non-current assets or accessing external funding.
• Long-term assessment: parity between long-term assets and liabilities (¥4.1 billion each) suggests no immediate solvency imbalance on the long horizon.
• Cash flow dynamics: operating cash flow of ¥3.92 billion less capex of ¥489.74 million yields free cash flow of ~¥3.43 billion, providing internal funding capacity despite a negative net cash position of ¥9.21 billion.

5i5j Holding Group Co., Ltd. (000560.SZ) - Valuation Analysis

• Market capitalization: ¥6.85 billion
• Enterprise value (EV): ¥16.11 billion
• Trailing P/E: 63.72
• Forward P/E: 30.63
• Price-to-Sales (P/S): 0.57
• Price-to-Book (P/B): 0.72
• EV/EBITDA: 3.25
• EV/Free Cash Flow: 4.69

• High trailing P/E (63.72) vs. much lower forward P/E (30.63) signals either recent earnings weakness or expected improvement - check earnings drivers, guidance, and one-off items affecting trailing results.
• Low P/S (0.57) and P/B (0.72) indicate the market values revenues and net assets conservatively relative to peers - useful when comparing growth-adjusted multiples.
• Relatively low EV/EBITDA (3.25) and EV/FCF (4.69) point to potentially attractive enterprise-level valuation if EBITDA and free cash flow are sustainable.

5i5j Holding Group Co., Ltd. (000560.SZ) - Risk Factors

Key financial indicators for 5i5j Holding Group Co., Ltd. point to several material risks across liquidity, solvency, operations and bankruptcy probability. Investors should weigh the quantitative signals below when assessing exposure.

• Net debt to equity: 63.1% - moderate leverage that increases sensitivity to earnings volatility and rising rates.
• Current ratio: 0.76 - indicates potential difficulty meeting short-term liabilities with current assets.
• Quick ratio: 0.64 - confirms liquidity pressure when inventory is excluded from liquid assets.
• Operating margin: -3.97% - operating loss, pointing to operational inefficiencies or revenue shortfalls.
• Interest coverage ratio: -0.75 - earnings insufficient to cover interest expense, raising default risk on debt service.
• Altman Z-Score: 0.6 - well below safe thresholds; elevated bankruptcy risk per Z-Score framework.

Selected risk metrics and implied investor concerns:

• Cash flow vulnerabilities: negative operating margin combined with poor interest coverage implies potential reliance on external financing or asset sales to bridge cash shortfalls.
• Refinancing risk: with net debt/equity at 63.1% and limited earnings coverage, upcoming maturities could be difficult to refinance on favorable terms.
• Market sensitivity: leverage and liquidity constraints amplify downside in a property sector slowdown or higher interest rate environment.
• Counterparty and covenant risk: weaker coverage ratios may increase covenant breach likelihood, prompting lender interventions.

For broader corporate context, see: 5i5j Holding Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

5i5j Holding Group Co., Ltd. (000560.SZ) - Growth Opportunities

5i5j Holding Group Co., Ltd. (000560.SZ) is positioned to capture post-cycle recovery in China's housing market by concentrating on core first-tier and new first-tier cities, leveraging a broad offline footprint and accelerating digital penetration.

• Nearly 3,000 operational stores and ~31,000 agents provide dense local coverage and fast signal capture of market recovery.
• Brokerage business momentum: revenue of ¥2.032 billion (up 13.57% YoY) with a gross transaction value (GTV) ≈ ¥110.8 billion (up 10.5% YoY).
• Asset management scale: managing 319,000 units, up 9% YoY; average rental turnover 8.8 days; rental occupancy rate 95.2%.
• Digital engagement improvements: monthly active users (MAU) on the app increased 23% month-over-month and online listings doubled (100% increase).
• Market outlook: existing-home transaction volumes in China projected to exceed ¥10 trillion by 2030, expanding the addressable market for focused players.

Strategic implications include scaled offline distribution plus escalating digital touchpoints to capture the expanding existing-home market and urban renewal opportunities. Further context on the company's origins, ownership and business model is available here: 5i5j Holding Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money