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

Curious whether Yibin Tianyuan Group (002386.SZ) is a turnaround opportunity or a risky bet? The firm reported operating revenue of CNY 13.37 billion for FY2024, a sharp 27.22% decline year‑on‑year and a net loss of CNY 459.6 million (diluted EPS -CNY 0.35), while operating cash flow lingered at CNY 229.8 million amid CNY 1.26 billion in capital expenditures; juxtapose those figures with a market cap of CNY 6.43 billion, enterprise value of CNY 11.44 billion and worrying health signals-gross margin just 2.84%, ROE -6.41%, Altman Z‑Score 0.89, total debt CNY 8.13 billion with net debt-to-equity ~70% and a current ratio of 0.73-yet the company is pursuing a non‑public offering, a CNY 300 million potential insider buy, a 100,000‑ton LFP cathode project and R&D expansion that could reshape its outlook; read on for a chapter‑by‑chapter breakdown of revenue, profitability, liquidity, valuation and the key risks and growth levers investors must weigh.

Yibin Tianyuan Group Co., Ltd. (002386.SZ) - Revenue Analysis

For the fiscal year ending December 2024, Yibin Tianyuan Group Co., Ltd. (002386.SZ) reported a marked revenue contraction and signs of stress in profitability and cash generation while continuing capital investment.

• Operating revenue (FY2024): CNY 13.37 billion, down 27.22% year-over-year.
• Net result (FY2024): Net loss of CNY 459.6 million; diluted EPS: negative CNY 0.35.
• Operating cash flow (FY2024): CNY 229.8 million - positive but modest given scale of operations.
• Capital expenditures (FY2024): CNY 1.26 billion, indicating continued investment despite loss-making status.
• Market capitalization (as of 17 July 2025): approximately CNY 6.43 billion.
• Enterprise value (most recent reported): CNY 11.44 billion.

Key implications for revenue and valuation dynamics:

• Revenue decline of 27.22% is a primary driver of the FY2024 net loss; cost structure rigidity or margin erosion likely amplified the impact.
• Positive operating cash flow (CNY 229.8M) provides some liquidity buffer, but is small relative to capex (CNY 1.26B), suggesting reliance on financing or asset sales to fund investment.
• Market capitalization (~CNY 6.43B) vs. enterprise value (CNY 11.44B) implies meaningful net debt or minority interests are part of the capital structure affecting take‑over/valuation considerations.
• Per-share loss (diluted EPS -0.35) pressures investor sentiment and may compress multiples; monitor return to profitability and cash conversion.

Further company background and structural context can be found here: Yibin Tianyuan Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Yibin Tianyuan Group Co., Ltd. (002386.SZ) - Profitability Metrics

• Gross margin: 2.84% (FY2024) - very thin top-line profitability relative to cost of goods sold.
• Operating margin: -2.50% (FY2024) - operating losses before non-operating items.
• Profit margin: -3.37% (FY2024) - negative net profitability after all items.
• EBITDA margin: 1.32% (FY2024) - limited EBITDA generation to cover financial obligations and capex.
• Return on equity (ROE): -6.41% (FY2024) - shareholders experienced negative returns on invested capital.
• Return on assets (ROA): -1.07% (FY2024) - asset base not generating positive net income.
• Dividend: CNY 0.08 per share; dividend yield: 1.63% (FY2024) - cash returned to shareholders despite losses.
• Altman Z-Score: 0.89 - indicates high risk of financial distress/bankruptcy under the classic Z-Score framework.

Yibin Tianyuan Group Co., Ltd. (002386.SZ) Debt vs. Equity Structure

• Total debt: CNY 8.13 billion
• Equity (book value): CNY 7.63 billion
• Book value per share: CNY 5.75

• Leverage profile: With a debt-to-equity ratio of 1.06 and net-debt/equity at 70%, balance-sheet leverage is elevated.
• Cash flow stress: Operating cash flow covering only 6.1% of total debt signals potential refinancing or liquidity pressure if cash generation does not improve.
• Profitability vs. financing cost: An interest coverage ratio of -1.77 indicates operating losses or low EBIT relative to interest expense, increasing default risk under adverse conditions.

Yibin Tianyuan Group Co., Ltd. (002386.SZ) Liquidity and Solvency

• Current ratio: 0.73 (below the 1.0 benchmark) - indicates short-term liabilities exceed short-term assets.
• Quick ratio: 0.53 - excludes inventories and further highlights limited readily available liquidity.
• Working capital: CNY -2.47 billion - negative buffer versus short-term obligations.
• Net cash position: CNY -4.86 billion - net indebtedness when short-term and long-term debt exceed cash-like balances.
• Cash and cash equivalents: CNY 3.27 billion - available liquidity, though insufficient given liabilities implied by ratios.
• Total assets: CNY 6.43 billion - scale of asset base relative to liquidity shortfall.

• Investor considerations: refinancing risk, covenant exposure, and timing of receivables/inventory conversion to cash.
• Operational focus: cash conservation, working-capital management, and potential asset sales or capital injections to improve net cash.
• Monitor: quarterly changes in current/quick ratios, movements in cash balances, and any announced financing actions.

Yibin Tianyuan Group Co., Ltd. (002386.SZ) - Valuation Analysis

• Market capitalization: CNY 6.43 billion (market equity value).
• Enterprise value (EV): CNY 11.44 billion (market cap + net debt and minority interests adjustments).
• P/S ratio: 0.48 - low relative to revenue, suggesting the market is pricing shares cheaply versus sales.
• P/B ratio: 0.84 - below 1.0, indicating the stock trades under stated book value.
• EV/EBITDA: 63.05 - extremely high, implying the enterprise value is large relative to operating earnings.
• EV/FCF: -9.49 - negative free cash flow (FCF) results in a negative ratio, signaling cash generation problems or recent large outflows.

• Equity-level metrics (P/S 0.48, P/B 0.84) point toward relative undervaluation versus sales and book value.
• Enterprise-level multiples (EV/EBITDA 63.05) are inconsistent with equity-level signals, suggesting very low operating profitability or one-off factors depressing EBITDA.
• Negative EV/FCF (-9.49) is a red flag: the firm is generating negative free cash flow, which can pressure valuation despite low P/S and P/B.
• Difference between market cap (CNY 6.43B) and EV (CNY 11.44B) implies significant net debt or minority interests; assess balance sheet leverage and debt servicing.

Yibin Tianyuan Group Co., Ltd. (002386.SZ) Risk Factors

• High supplier concentration: approximately 70% of key raw materials are sourced from three suppliers, creating single-point-of-failure exposure.
• Raw material price volatility: historical swings in input costs have periodically compressed margins and could do so again under adverse market moves.
• Negative operating margins and profitability metrics: recent operating performance shows losses before interest and taxes, reflecting operational strain.
• Elevated leverage: debt levels are large relative to equity and operating cash flow, increasing financial risk and refinancing vulnerability.
• Liquidity and working capital pressure: negative working capital and weak current/quick ratios point to potential short-term solvency issues.
• Negative free cash flow: operating cash shortfalls after capex constrain discretionary spending and debt servicing flexibility.

• Potential triggers that could exacerbate these risks:
  • Sudden price spikes in key inputs.
  • Loss or disruption of one of the top three suppliers.
  • Tightening credit markets making refinancing more expensive or unavailable.
  • Further deterioration in operating performance or demand.
• Investor considerations:
  • Monitor quarterly operating cash flow and covenant filings closely.
  • Assess supplier diversification efforts and any hedging of input costs.
  • Watch capex plans versus free cash flow recovery to gauge funding gap size.

Yibin Tianyuan Group Co., Ltd. (002386.SZ) - Growth Opportunities

• Capital support: the company plans to conclude a non-public offering to raise funds earmarked for working capital, improving liquidity and supporting ongoing operations during expansion.
• Insider confidence: the controlling shareholder has announced plans to increase holdings by up to CNY 300 million, a strong signal of commitment from major owners and potential stabilizing demand for equity.
• Battery-materials expansion: investment in a lithium iron phosphate (LFP) cathode material production project with annual output targeted at 100,000 tonnes, aimed at capturing growth in the EV and energy-storage supply chain.
• R&D investment: construction of an R&D and testing center to accelerate product development, quality control and commercialization of higher-value specialty materials.
• Diversified product exposure: a portfolio spanning chemicals and building materials enables cross-market revenue streams, reducing single-sector cyclicality and allowing capture of integration benefits across industrial and construction chains.
• Strategic geography: headquartered and operating in Sichuan province, providing access to southwest industrial clusters, logistics corridors and regional demand while benefiting from national manufacturing and new-energy policies.

• What to watch: timing and size of the non-public offering (dilution and use of proceeds), execution timeline and capex for the 100,000 tpa LFP project, ramp rate and product quality from the new R&D center, and any follow-through purchases by the controlling shareholder.
• Potential upside drivers: successful commercial ramp of cathode material sales, improved working-capital position translating into operational stability, and R&D-driven higher-margin product launches.