Breaking Down Shenzhen Silver Basis Technology Co., Ltd. Financial Health: Key Insights for Investors

Investors scrutinizing Shenzhen Silver Basis Technology Co., Ltd. will find a complex snapshot: quarterly revenue climbed to CNY 624.30 million in Q3 2025 while TTM revenue reached CNY 2.37 billion (a modest 4.10% YoY rise despite a 4.34% revenue drop in 2024), profitability remains strained with a nine‑month net loss of CNY 11.22 million and TTM gross profit margin near 11.17%, balance‑sheet risk is evident with total debt of CNY 1.81 billion and a debt‑to‑equity ratio of 9.23 alongside a current ratio of 0.55, valuation metrics show a market cap around CNY 4.5 billion with a P/S near 1.9 and EV/EBITDA at 65.99, and liquidity and operational signals-from a 23.27% drop in cash to rising receivables and shrinking inventory-underscore why the detailed breakdown below matters for assessing risk, valuation, and growth prospects.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ) - Revenue Analysis

Shenzhen Silver Basis Technology Co., Ltd. reported mixed top-line dynamics through 2024-2025, with sequential quarterly improvement into Q3 2025 but a mild drag on full-year 2024 performance. Key numeric highlights and context are summarized below.

• Quarter ending 30-Sep-2025 revenue: CNY 624.30 million, up 13.12% from the prior quarter.
• Trailing twelve months (TTM) revenue as of 30-Sep-2025: CNY 2.37 billion, a 4.10% year-over-year increase.
• Full-year 2024 revenue: CNY 2.22 billion, down 4.34% from CNY 2.32 billion in 2023.
• Employees: 3,206; revenue per employee ≈ CNY 739,818.
• Market capitalization (10-Dec-2025): CNY 4.48 billion; Price-to-Sales (P/S): 1.89.

Implications for investors:

• The sequential quarter growth (+13.12%) indicates recovery momentum after 2024's revenue contraction, supporting a cautiously constructive near-term outlook.
• TTM growth of 4.10% signals that year-over-year revenue trends have turned positive by late 2025, though the pace is moderate.
• A P/S of 1.89 vs market cap CNY 4.48B suggests the market is valuing the company at nearly two times annual sales - investors should compare this multiple to peers and consider margin and growth prospects.
• Revenue per employee (~CNY 740k) provides an efficiency benchmark; operational improvements or higher-margin product mix could lift this metric and justify valuation expansion.

For background on the company's history, ownership and business model, see: Shenzhen Silver Basis Technology Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ) - Profitability Metrics

Key profitability figures for the company (TTM ending September 30, 2025 and nine-month comparisons) highlight a company improving from a deep loss but still facing operational and equity returns pressures.

• Nine months ending September 30, 2025: net loss CNY 11.22 million (vs. net loss CNY 128.25 million in same period 2024).
• Basic loss per share (9M 2025): CNY 0.02 (vs. loss CNY 0.26 per share in 9M 2024).
• TTM gross profit: CNY 265.17 million on revenue of CNY 2.37 billion - gross profit margin ≈ 11.17%.
• TTM operating income: loss of CNY 20.74 million, indicating ongoing operating challenges.
• TTM net profit margin: negative (net loss relative to revenue), reflecting continued unprofitable bottom-line performance.
• Return on equity (ROE, TTM): -64.66%, indicating significant losses relative to shareholders' equity.

• Improvement trajectory: the drastic year‑over‑year reduction in nine‑month net loss and EPS loss suggests cost control or revenue stabilization efforts beginning to take effect.
• Margin pressure: an 11.17% gross margin is moderate for many tech/manufacturing contexts but insufficient to cover operating and other expenses given the operating loss of CNY 20.74 million.
• Equity risk: ROE at -64.66% is a red flag for shareholders - persistent losses can erode book value and signal capital needs or dilution risk.

For broader company context, see: Shenzhen Silver Basis Technology Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ) - Debt vs. Equity Structure

• Total debt: CNY 1.81 billion.
• Market capitalization: CNY 4.53 billion.
• Enterprise value (EV): CNY 6.17 billion.
• Cash and equivalents: CNY 131.07 million (net cash position: negative).
• Debt-to-equity ratio: 9.23 (very high leverage).
• Current ratio: 0.55; Quick ratio: 0.28 (both below 1.0).
• Interest coverage ratio: -0.22 (EBIT insufficient to cover interest).
• Debt-to-EBITDA: 19.40 (very high relative to earnings).

• Leverage profile: A debt-to-equity of 9.23 and debt-to-EBITDA of 19.40 indicate the company relies heavily on borrowed funds relative to both equity and operating earnings.
• Liquidity stress: Current ratio 0.55 and quick ratio 0.28 point to potential difficulty meeting near-term obligations without asset sales, refinancing, or fresh capital.
• Interest burden: Negative interest coverage (-0.22) suggests earnings do not cover interest expense, increasing default and refinancing risk if conditions persist.
• Valuation context: EV (CNY 6.17B) exceeds market cap (CNY 4.53B) primarily because of net debt; equity holders face amplified downside if asset values fall or operating performance weakens.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ) - Liquidity and Solvency

• Cash and cash equivalents: decreased 23.27% - from CNY 119.61M (Dec 2023) to CNY 91.77M (Dec 2024).
• Accounts receivable: increased 18.07% - from CNY 552.92M to CNY 646.57M (Dec 2024), suggesting slower collections.
• Inventory: decreased 15.24% - from CNY 917.25M to CNY 777.31M, which may reflect reduced production or sales.
• Current ratio: 0.55; Quick ratio: 0.28 - both well below typical industry norms, signaling potential short-term liquidity problems.
• Reported net cash position negative: cash and equivalents CNY 131.07M vs total debt CNY 1.81B (net cash roughly CNY -1.68B).
• Interest coverage ratio: -0.22 - operating earnings are insufficient to cover interest expenses.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ) - Valuation Analysis

• Market capitalization (as of 5 Dec 2025): CNY 4.53 billion
• P/S ratio: 1.91 - price paid for each yuan of revenue
• P/B ratio: 23.07 - high relative to book equity
• Enterprise value (EV): CNY 6.17 billion - includes net debt and minority interests
• EV/EBITDA: 65.99 - very high multiple on operating earnings
• EV/FCF: 85.49 - expensive relative to free cash flow generation
• Beta: 1.66 - above-market volatility

• High P/B (23.07) signals market pricing well above book value; likely justified only by superior growth or intangible assets.
• Very elevated EV/EBITDA (65.99) and EV/FCF (85.49) indicate stretched expectations - downside risk if growth or margin assumptions disappoint.
• Beta of 1.66 suggests position sizing should consider higher volatility; timing and horizon matter for risk management.
• Absolute market cap and EV place the company in the small-cap to lower mid-cap range, where liquidity and analyst coverage can be limited.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ) - Risk Factors

• Net loss: CNY 11.22 million (nine months ended Sept 30, 2025), signaling ongoing profitability challenges.
• Debt-to-equity ratio: 9.23, pointing to very high financial leverage relative to equity.
• Interest coverage ratio: -0.22, indicating operating income is insufficient to cover interest expense.
• Current ratio: 0.55 and quick ratio: 0.28, both well below commonly accepted safety thresholds (1.0-1.5), suggesting short-term liquidity pressure.
• Negative net cash position combined with elevated debt levels, heightening solvency risk and refinancing vulnerability.
• Revenue decline in 2024 and the 2025 net loss reflect operational and market demand challenges that have yet to be reversed.
• Equity beta: 1.66, implying higher stock price volatility relative to the market and increased risk for risk-averse investors.

Shenzhen Silver Basis Technology Co., Ltd. (002786.SZ) - Growth Opportunities

• New business & global expansion: active market entry efforts in Southeast Asia and Europe with targeted accounts in automotive and consumer electronics channels.
• Lean management & cost control: structured programs aiming to reduce manufacturing overhead and logistics costs, with pilot projects reporting ~6-8% unit cost reduction in 2024.
• Innovation recognition: recipient of the '2025 Best Practice Award for Digital Innovation in the Board Office,' reflecting digital governance and process automation investments.
• Strategic partnerships: awarded 'Best Partner' by XPeng Motors' Manufacturing Engineering Center, creating a pathway for larger, recurring automotive manufacturing orders.
• Customer-centric manufacturing: product quality and process improvement efforts aimed at increasing customer retention and expanding lifetime value.

• Scaling automotive programs via XPeng partnership could convert one-off projects into multi-year supply contracts tied to vehicle programs and modules.
• Higher-value product mix (modules, integrated assemblies) can lift gross margin from current levels toward mid-30% on successful penetration.
• R&D intensity (~11% of sales) supports differentiation in process automation, sensors, and quality inspection-critical for automotive and high-reliability customers.
• Lean and digital initiatives (including the board office digital award) reduce working capital and OPEX, improving free cash flow conversion.
• Global account wins and regional diversification reduce single-market exposure and open higher ASP opportunities in developed markets.

• Order backlog growth and conversion rate from strategic automotive and industrial customers.
• Gross margin trajectory as higher-value products and automation scale.
• R&D pipeline milestones and new product introductions tied to revenue guidance.
• Working capital days and cash-from-operations improvements post-lean initiatives.
• Renewal/expansion of strategic partnership agreements (e.g., XPeng Manufacturing Engineering Center).