Breaking Down Qingdao Gon Technology Co., Ltd. Financial Health: Key Insights for Investors

Qingdao Gon Technology Co., Ltd. (002768.SZ) presents a mixed but data-rich picture that investors should parse carefully: in Q3 2025 revenue reached 5.74 billion CNY (up 18.81% year-over-year) and TTM revenue sits at 20.56 billion CNY (up 8.58% YoY) while market capitalization is around 13.84 billion CNY with a share price of 52.22 CNY as of December 12, 2025; profitability shows TTM net income of 833.28 million CNY (net margin ~4.05%) and TTM EPS of 3.16 CNY with a P/E near 16.54, but operating cash flow TTM is only 553 million CNY and the company's debt profile has shifted-total debt rose to 4.77 billion CNY as of September 2024, net debt/equity is 33.8% even as the five‑year debt/equity ratio climbed from 30.8% to 79%-while liquidity metrics (current ratio 1.52, quick ratio 0.94) and cash/short-term investments of 3.27 billion CNY point to short-term buffers; valuation measures (trailing P/E 11.77, forward P/E 10.96, P/S 0.41, P/B 1.10, EV 18.64 billion CNY) suggest possible undervaluation, and growth forecasts-revenue and earnings growth of 14.6% and 19.5% p.a., EPS growth 18.6% p.a., ROE projected to 15.5% in three years-alongside a major photovoltaic and seawater resource project and capex of 397 million CNY (≈2% of revenue) create upside scenarios worth exploring further; read on to unpack the implications of these figures across revenue, profitability, leverage, liquidity, valuation, risks and growth opportunities.

Qingdao Gon Technology Co., Ltd. (002768.SZ) - Revenue Analysis

Qingdao Gon Technology's recent top-line performance shows steady growth across quarterly, annual and trailing twelve-month measures, supported by a mid-sized workforce and a valuation that implies conservative market pricing relative to sales.

• Q3 2025 revenue: 5.74 billion CNY - +18.81% year-over-year.
• TTM revenue: 20.56 billion CNY - +8.58% YoY.
• Full-year 2024 revenue: 19.22 billion CNY - +10.21% vs. 2023.
• Revenue per employee: ~3.61 million CNY (5,687 employees).
• Price-to-sales (P/S) ratio: 0.67.
• Market capitalization: 13.84 billion CNY; share price: 52.22 CNY (as of 2025-12-12).

Key implications for investors are visible when comparing growth rates and valuation: an 18.81% Q3 surge vs. a more modest 8.58% TTM expansion suggests recent acceleration, while a 0.67 P/S signals relatively low market pricing against sales - relevant for value-oriented assessments. For deeper context on ownership, institutional activity and investor composition, see Exploring Qingdao Gon Technology Co., Ltd. Investor Profile: Who's Buying and Why?

Qingdao Gon Technology Co., Ltd. (002768.SZ) - Profitability Metrics

• Net income (TTM): 833.28 million CNY - net profit margin ≈ 4.05%.
• EPS (TTM): 3.16 CNY - P/E ratio: 16.54.
• Operating cash flow (TTM): 553 million CNY - positive cash generation.
• ROE: 10.06% - efficiency of shareholder capital use.
• ROA: 2.62% - asset-level profitability.
• ROIC: 3.77% - return on invested capital.
• Q1 2025 net income attributable to shareholders: 111 million CNY, down 9.79% year-over-year.

• Profitability context: a 4.05% net margin indicates thin but positive bottom-line conversion from revenue; P/E of 16.54 prices the stock at a modest earnings multiple relative to reported EPS of 3.16 CNY.
• Cash vs. accruals: 553 million CNY of operating cash flow (TTM) supports the accounting profits and reduces reliance on financing for operations and investment.
• Capital efficiency: ROE (10.06%) outpaces ROIC (3.77%) and ROA (2.62%), suggesting returns are being amplified by leverage or equity structure; ROIC signals only moderate returns on invested capital.
• Near-term trend: Q1 2025 net income decline of 9.79% YoY to 111 million CNY flags near-term pressure that investors should monitor alongside margin and cash-flow trends.

Qingdao Gon Technology Co., Ltd. (002768.SZ) - Debt vs. Equity Structure

Qingdao Gon Technology's balance between liabilities and shareholder equity shows mixed signals: liquidity pressure in the near term from large current liabilities, but manageable interest obligations and a moderate net leverage level.

• Total liabilities due within 12 months: 6.67 billion CNY (as of Sep 30, 2024).
• Total liabilities due beyond 12 months: 3.11 billion CNY (as of Sep 30, 2024).
• Total debt (Sep 2024): 4.77 billion CNY, up from 3.99 billion CNY a year earlier.
• Net debt to equity ratio: 33.8% - generally satisfactory and indicates a balanced leveraging approach.
• Debt-to-equity ratio trend (5 years): rose from 30.8% to 79.0%, signaling increased reliance on debt financing over time.
• Interest coverage ratio (EBIT / interest): 7.3x - EBIT comfortably covers interest expense.
• Debt coverage by operating cash flow: 9.3% - indicates operating cash flow is insufficient relative to debt stock.

Key considerations for investors:

• The large near-term liabilities (6.67bn) create short-term liquidity focus - working capital management and refinancing sources matter.
• Rising debt-to-equity (30.8% → 79%) suggests management has increasingly used debt; monitor the purpose (capex vs. operations) and marginal cost of borrowing.
• Net leverage of 33.8% and interest coverage of 7.3x provide comfort on solvency and interest serviceability under current earnings.
• Low debt coverage by operating cash flow (9.3%) indicates potential vulnerability if operational cash generation weakens - assess cash conversion and receivables/inventory cycles.
• Recent year-on-year total debt increase (3.99bn → 4.77bn) warrants review of debt maturity profile and upcoming refinancing or repayment needs.

Context and further reading: Mission Statement, Vision, & Core Values (2026) of Qingdao Gon Technology Co., Ltd.

Qingdao Gon Technology Co., Ltd. (002768.SZ) - Liquidity and Solvency

Key metrics show Qingdao Gon Technology's short- and long-term funding position and ability to meet obligations. The figures below combine balance-sheet aggregates and common ratios to give investors a clear snapshot of liquidity and solvency risks and buffers.

• Current ratio: 1.52 - adequate coverage of current liabilities by current assets.
• Quick ratio: 0.94 - signals potential pressure if inventory cannot be converted quickly.
• Cash and short-term investments: 3.27 billion CNY - a liquid buffer for near-term needs.
• Short-term assets: 12.0 billion CNY vs. short-term liabilities: 7.7 billion CNY - short-term assets exceed short-term obligations.
• Long-term liabilities: 4.3 billion CNY - long-term assets exceed this level, supporting solvency.
• Net debt to equity: 33.8% - a moderate leverage level indicating a balanced capital structure.

Implications for investors:

• The >1.5 current ratio and cash buffer reduce immediate liquidity concerns under normal operating conditions.
• A quick ratio below 1.0 suggests reliance on inventory turnover to meet short-term obligations; monitor inventory days and receivables collection.
• Moderate net leverage (33.8%) implies capacity to access additional financing if needed without excessive dilution of equity risk.
• Long-term asset coverage of 4.3 billion CNY in liabilities supports solvency, but track capital expenditure and debt maturities for future stress points.

Related reading: Exploring Qingdao Gon Technology Co., Ltd. Investor Profile: Who's Buying and Why?

Qingdao Gon Technology Co., Ltd. (002768.SZ) - Valuation Analysis

• Trailing P/E: 11.77 - historically modest, implying the market pays ~11.8x last 12 months' earnings.
• Forward P/E: 10.96 - lower than trailing P/E, suggesting expected EPS growth or improved near-term profitability.
• P/S: 0.41 - low price relative to revenue, often a value indicator in cyclical or asset-light businesses.
• P/B: 1.10 - trading slightly above book value, implying limited goodwill or premium over net assets.
• EV/EBITDA: 12.33 - moderate enterprise-level valuation versus operating earnings.
• EV/FCF: 74.89 - very high, signaling weak free cash flow relative to enterprise value and a potential red flag for cash conversion.
• PEG: Not available - no reliable growth-adjusted P/E assessment at present.
• Enterprise Value: 18.64 billion CNY; Market Capitalization: 14.10 billion CNY (as of 2025-12-09).

Qingdao Gon Technology Co., Ltd. (002768.SZ) - Risk Factors

• Rising leverage: total interest-bearing debt has increased materially over the past five years.
• Weak cash-flow coverage: operating cash flow is insufficient to meet debt obligations (coverage ratio 9.3%).
• Short-term liquidity tightness: quick ratio is 0.94, implying potential difficulty meeting near-term liabilities without converting inventory to cash.
• Profitability pressure: net profit margin is modest at 4.05%, limiting internal capacity to absorb higher financing costs or shocks.
• Interest burden risk: interest coverage ratio of 7.3x is adequate now but vulnerable if debt or interest rates rise further.

• Further increases in debt or higher market interest rates could compress interest coverage below comfortable thresholds and strain free cash flow.
• Sustained weak operating cash flow (current OpCF covers only ~9% of annual debt service) raises refinancing and rollover risk.
• Quick ratio below 1.0 means a working-capital squeeze if receivables slow or inventory turns decline.
• Low net margins limit the firm's ability to self-finance growth or absorb one-off losses without resorting to additional leverage or equity issuance.

Qingdao Gon Technology Co., Ltd. (002768.SZ) - Growth Opportunities

Qingdao Gon Technology Co., Ltd. (002768.SZ) presents multiple acceleration vectors backed by analyst forecasts, strategic agreements, and capital investment aimed at scaling production and technology development.

• Analyst growth forecasts: revenue +14.6% p.a.; earnings +19.5% p.a.; EPS +18.6% p.a.
• Profitability trajectory: return on equity forecasted to reach 15.5% in three years.
• Strategic technology partnership: cooperation agreement signed for photovoltaic production increase and seawater resource extraction integration project to boost R&D and commercial deployment.
• Investor sentiment: market capitalization rose 129.31% over the past year, reflecting strong market confidence.
• Capacity and capability investments: capital expenditures of 397 million CNY, ~2% of revenue, targeting expanded production capacity and upgraded technological capabilities.

For additional corporate context and background on operations and ownership, see: Qingdao Gon Technology Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money