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

Peeling back the layers on Shenzhen TXD Technology Co., Ltd. (002845.SZ) reveals a mixed financial snapshot that will keep investors reading: in Q1 2025 the company posted revenue of CNY 2.81 billion (up 6.99% quarter‑over‑quarter) with TTM revenue of CNY 10.20 billion (+8.08% YoY) and 2024 revenue of CNY 9.56 billion (+12.27% vs. 2023), driven by CNY 6.37 billion from LCD modules and CNY 2.82 billion from camera modules (the camera segment grew 35.69% in 2024); yet profitability flags-TTM net profit margin is -0.54%, Q1 2025 showed a net loss of CNY 41.18 million versus a CNY 7.47 million profit in Q1 2024, ROI TTM is -2.88%, EPS TTM is -0.18 and gross margin TTM is 6.19% while earnings have fallen at an average annual rate of -37.2% compared with the Electronic industry's +0.4%; balance sheet metrics show total debt of CNY 1.36 billion (exceeding cash of CNY 1.17 billion), shareholder equity of CNY 2.5 billion, liabilities of CNY 6.97-7.0 billion, assets of CNY 9.5-9.51 billion and a debt‑to‑equity around 78-81%, cash on hand CNY 945.88 million, revenue per employee about CNY 849,740 across 12,006 staff, valuation figures include market cap CNY 4.22 billion (as of Oct 22, 2025, +17.36% over the year), enterprise value CNY 5.44 billion, P/S 0.44 and P/B 1.69-key datapoints that frame the company's liquidity, leverage and growth opportunities for investors to examine further

Shenzhen TXD Technology Co., Ltd. (002845.SZ) - Revenue Analysis

Shenzhen TXD Technology Co., Ltd. (002845.SZ) shows steady top-line expansion driven by core product lines (LCD modules and camera modules), with recent quarterly and trailing figures indicating continued growth momentum.

• Q1 2025 revenue: CNY 2.81 billion - +6.99% vs. prior quarter.
• TTM revenue: CNY 10.20 billion - +8.08% year-over-year.
• Full-year 2024 revenue: CNY 9.56 billion - +12.27% vs. 2023.
• Primary 2024 revenue contributors:
  • LCD modules: CNY 6.37 billion
  • Camera modules: CNY 2.82 billion
• Total employees: 12,006; revenue per employee: approx. CNY 849,740.
• Price-to-Sales (P/S) ratio: 0.44.

For broader investor context and shareholder activity related to Shenzhen TXD Technology Co., Ltd., see: Exploring Shenzhen TXD Technology Co., Ltd. Investor Profile: Who's Buying and Why?

Shenzhen TXD Technology Co., Ltd. (002845.SZ) - Profitability Metrics

Key profitability indicators for Shenzhen TXD Technology Co., Ltd. (002845.SZ) signal a company under pressure, with margins compressed and earnings in decline versus industry peers. Below are the core metrics and their implications.

• TTM Net Profit Margin: -0.54% - slight loss relative to revenue.
• Q1 2025 Net Result: Net loss of CNY 41.18 million vs. net income of CNY 7.47 million in Q1 2024.
• TTM ROI: -2.88% - negative returns on invested capital.
• TTM EPS: -0.18 - loss per share on a trailing twelve-month basis.
• TTM Gross Margin: 6.19% - small buffer above COGS, indicating limited pricing power or high costs.
• Earnings growth trend: average annual decline of -37.2% for the company, versus +0.4% annual growth for the Electronic industry.

Implications for investors:

• Negative net margin and ROI imply operating losses and capital inefficiency; sensitivity to revenue shocks is high given low gross margin (6.19%).
• Sharp swing from CNY 7.47 million profit in Q1 2024 to CNY 41.18 million loss in Q1 2025 highlights near-term volatility and potential one-off or structural cost issues.
• Declining EPS (TTM -0.18) and a -37.2% earnings CAGR contrast with the Electronic industry's modest growth, signaling underperformance vs. peers.
• Key monitoring areas: margin recovery (gross and net), return on capital improvement, stabilization of quarterly profitability, and drivers behind the Q1 2025 loss.

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

Shenzhen TXD Technology Co., Ltd. (002845.SZ) - Debt vs. Equity Structure

• Leverage: Debt-to-equity at 80.92% indicates material gearing - debt equals ~0.81x equity.
• Cash vs. Debt: Total debt (CNY 1.36bn) exceeds cash (CNY 1.17bn) by CNY 0.19bn, implying limited immediate cushion.
• Balance sheet scale: With CNY 9.5bn in assets and CNY 7.0bn in liabilities, equity represents ~26.3% of the balance sheet.
• Liquidity signal: Absence of an interest coverage ratio prevents assessment of earnings-derived ability to service interest expense.
• Risk consideration: Debt levels relative to cash and the missing coverage metric point to potential short-term liquidity pressure and heightened refinancing risk.

Shenzhen TXD Technology Co., Ltd. (002845.SZ) - Liquidity and Solvency

Key quantitative snapshot and implications for short- and long-term financial resilience.

• Cash position: CNY 945.88 million - provides a near-term liquidity cushion for operations and working capital needs.
• Total assets: CNY 9.51 billion; Total liabilities: CNY 6.97 billion; reported debt-to-equity: 77.68%.
• Shareholders' equity (assets - liabilities): CNY 2.54 billion (calculated from reported assets and liabilities).
• TTM net profit margin: -0.54% - a slight loss relative to revenue.
• Earnings trend: average annual decline of -37.2% vs. Electronic industry earnings growth of +0.4% annually.
• Current ratio and quick ratio: not specified in available data; inability to confirm inventory reliance on meeting short-term obligations.

• Liquidity interpretation: CNY 945.88M in cash reduces immediate financing pressure, but unspecified current/quick ratios prevent a full short-term coverage assessment.
• Solvency interpretation: with CNY 6.97B liabilities against CNY 2.54B equity, leverage and capital buffer should be monitored closely, particularly given negative margin and steep earnings decline.
• Relative performance: earnings deterioration (-37.2% p.a.) materially lags the Electronic industry (+0.4% p.a.), raising questions about operational competitiveness and long-term sustainability.

Shenzhen TXD Technology Co., Ltd. (002845.SZ) - Valuation Analysis

• Market capitalization: CNY 4.22 billion (as of October 22, 2025), up 17.36% year-over-year.
• Enterprise value (EV): CNY 5.44 billion - includes debt, excludes cash, representing the total takeover value.
• Price-to-book (P/B) ratio: 1.69 - market values the company at 1.69× book value.
• Price-to-earnings (P/E): Not applicable due to net loss.
• Earnings per share (TTM EPS): -0.18 (loss per share).

• Market sentiment: A 17.36% rise in market cap suggests improving investor appetite despite negative earnings.
• EV vs. Market Cap: EV (CNY 5.44B) exceeds market cap (CNY 4.22B), implying net debt or minority interests add materially to total firm value.
• Profitability constraint: Negative TTM EPS (-0.18) prevents use of conventional P/E valuation; alternative multiples (EV/Revenue, EV/EBITDA when positive) or asset-based approaches may be more appropriate.
• Book-value premium: P/B of 1.69 indicates investors pay a premium over reported equity - reflects growth expectations or intangible asset valuation not fully captured on the balance sheet.

Shenzhen TXD Technology Co., Ltd. (002845.SZ) - Risk Factors

• Profitability: Net profit margin (TTM) is -0.54%, indicating the company is generating a slight loss relative to revenue.
• Return on invested capital: ROI (TTM) is -2.88%, signaling negative returns on capital employed.
• Earnings trend: EPS (TTM) is -0.18, and earnings have declined at an average annual rate of -37.2% versus the Electronic industry's 0.4% annual earnings growth.
• Leverage and liquidity: Total debt is CNY 1.36 billion while cash is CNY 1.17 billion, and the debt-to-equity ratio stands at 80.92% - highlighting liquidity constraints and a relatively high proportion of debt to equity.

• Liquidity risk: With debt greater than cash (CNY 1.36B vs CNY 1.17B), the company has limited short-term liquidity buffer; refinancing or operational cash-generation needs could pressure margins or require asset sales.
• Profitability risk: Negative net margin and ROI imply ongoing operations are not currently profitable on a TTM basis; sustained negative margins could impair equity and raise insolvency risk under stress.
• Earnings deterioration: A -37.2% annual decline in earnings versus industry growth suggests competitive, demand, or execution issues that may be structural rather than cyclical.
• Leverage sensitivity: An 80.92% debt-to-equity ratio increases sensitivity to interest rate moves and revenue volatility; higher financing costs or covenant breaches are potential outcomes.
• Shareholder dilution/earnings risk: Negative EPS (-0.18) reduces capacity for dividends and increases the likelihood of capital raises that could dilute existing shareholders if cash needs persist.

Shenzhen TXD Technology Co., Ltd. (002845.SZ) - Growth Opportunities

• Expanding client base: management reports active efforts to broaden customer relationships across consumer electronics and automotive applications, which can diversify revenue streams.
• Camera module momentum: the camera module segment recorded 35.69% year-over-year growth in 2024, signaling strong end-market demand and scalable production leverage.
• Positive market perception: the company's market capitalization rose 17.36% over the past 12 months, reflecting improved investor confidence and potential easier access to capital markets.
• Turnaround potential: trailing twelve-month (TTM) EPS stands at -0.18, indicating current losses but leaving scope for margin recovery if revenue growth and cost controls materialize.

• Balance-sheet capacity: with CNY 9.51 billion in assets against CNY 6.97 billion in liabilities, TXD has asset backing to support targeted investments in production capacity and R&D.
• Investment levers: management can prioritize high-growth camera modules, pursue cross-selling into new OEMs, and use improved market capitalization to raise funds or pursue bolt-on acquisitions.
• Execution risks: successful conversion of growing demand into sustained profitability will depend on supply-chain resilience, margin management, and scale efficiencies.