Breaking Down Zhejiang Jiemei Electronic And Technology Co., Ltd. Financial Health: Key Insights for Investors

As investors weigh opportunities in Zhejiang Jiemei Electronic and Technology Co., Ltd. (002859.SZ), the numbers tell a nuanced story: 2024 revenue climbed to CNY 1.82 billion (a 15.57% increase year-over-year) driven by a 13.09% rise in electronic packaging materials and a 35.38% surge in electronic-grade film materials, with Q3 2024 revenue hitting CNY 0.5 billion (+21.4% YoY, +5.5% MoM); yet profitability lagged as net profit attributable to shareholders fell to CNY 202.17 million (down 20.91%), EPS dropped to CNY 0.47, gross margin eased to 34.20% and ROE sat at 6.68%, while liquidity and capital deployment show CNY 255 million operating cash flow offset by heavy capex of CNY 1.03 billion, total debt of CNY 2.60 billion against cash of CNY 547 million and a gearing ratio of 56.59%, and market valuation on November 21, 2025 reflected a market cap of CNY 12.29 billion, enterprise value of CNY 15.14 billion, P/E of 61.44, P/B and P/S at 1.00 and a 0.70% dividend yield - all set against tangible growth moves (new energy materials, strategic solid‑state battery cooperation, expanded cast‑film capacity and rising shipments) and clear operational risks such as exchange losses, new capacity execution and downstream demand recovery that investors will want to probe further in the sections ahead.

Zhejiang Jiemei Electronic And Technology Co., Ltd. (002859.SZ) - Revenue Analysis

• 2024 total revenue: CNY 1.82 billion (↑15.57% vs. 2023)
• 2023 total revenue: CNY 1.57 billion
• Revenue per employee (2024): CNY 638,200; total employees: 3,136 (as of Dec 31, 2024)
• Market capitalization (Nov 21, 2025): CNY 12.29 billion (↑39.04% YoY)
• Share price (Nov 21, 2025): CNY 28.85; P/E ratio: 61.44

• Segment drivers (2024):
  • Electronic packaging materials: +13.09% year-over-year
  • Electronic-grade film materials: +35.38% year-over-year
• Quarteral highlight:
  • Q3 2024 revenue: CNY 0.50 billion (↑21.4% YoY; ↑5.5% QoQ)

• Implications for investors:
  • High segmental growth in electronic-grade film materials suggests product mix improvement.
  • Q3 2024 monthly sequential growth indicates recovering demand momentum heading into late 2024.
  • Relatively high P/E (61.44) combined with rising market cap (CNY 12.29B) signals market premium for expected future earnings.

Zhejiang Jiemei Electronic And Technology Co., Ltd. (002859.SZ) - Profitability Metrics

• Net profit attributable to shareholders: CNY 202.17 million in 2024, down 20.91% from CNY 255.62 million in 2023.
• Net profit margin: ~11.1% in 2024, reflecting continued profitability within its specialized market niche.
• EPS: CNY 0.47 in 2024, down from CNY 0.59 in 2023.
• Gross profit margin: 34.20% in 2024, a decline of 1.62 percentage points year-over-year.
• ROE: 6.68% in 2024 (accompanied by a reported profit margin of 10.04% and gross margin of 34.19% in underlying metrics).
• Operating cash flow: CNY 255 million in 2024, contrasted with capital expenditures of CNY 1.03 billion-indicating heavy investment activity relative to cash generation.

• Margin profile: Gross margins remain robust (~34%), supporting product-level profitability despite pressure on net profit and EPS.
• Cash & investment dynamics: Operating cash inflow of CNY 255 million is substantially offset by CNY 1.03 billion in capex, highlighting an aggressive investment phase that may weigh on free cash flow and near-term returns.
• Return metrics: ROE of 6.68% coupled with a ~10% profit margin suggests moderate capital efficiency; investors should watch leverage of capex to future revenue growth.

Zhejiang Jiemei Electronic And Technology Co., Ltd. (002859.SZ) - Debt vs. Equity Structure

• Total debt (as of Dec 31, 2024): CNY 2.60 billion
• Cash position (as of Dec 31, 2024): CNY 547 million
• Net debt (debt - cash): CNY 2.053 billion
• Gearing ratio: 56.59%
• Market capitalization (as of Nov 21, 2025): CNY 12.29 billion
• Enterprise value (reported): CNY 15.14 billion
• P/E ratio: 61.44
• P/B ratio: 1.00
• P/S ratio: 1.00
• Dividend yield: 0.70%

• Leverage profile: A 56.59% gearing ratio with net debt of CNY 2.053 billion indicates a materially leveraged balance sheet relative to equity market value (market cap CNY 12.29 billion).
• Valuation context: High P/E (61.44) points to elevated earnings multiple versus book (P/B 1.00) and sales (P/S 1.00); dividend yield is modest at 0.70%.
• Enterprise value composition: Reported EV of CNY 15.14 billion incorporates market cap and net financing positions; investors should reconcile reported EV with balance-sheet net debt when modelling.
• Cash coverage: Cash of CNY 547 million covers ~21% of total debt, leaving limited immediate liquidity buffer vs. gross borrowings.

Zhejiang Jiemei Electronic And Technology Co., Ltd. (002859.SZ) - Liquidity and Solvency

Zhejiang Jiemei Electronic And Technology Co., Ltd. (002859.SZ) shows clear strengths in cash generation for 2024, while several standard solvency and liquidity ratios are not specified in the available disclosures.

• Operating cash flow (2024): CNY 255 million - positive operating cash generation.
• Cash flow margin (2024): 996.05% - indicates very high cash conversion relative to revenue in the reported period.
• Current ratio: Not specified in available data.
• Quick ratio: Not specified in available data.
• Interest coverage ratio: Not specified in available data.
• Debt-to-equity ratio: Not specified in available data.
• Solvency ratio: Not specified in available data.

For broader context on shareholders, trading activity and investor dynamics related to Zhejiang Jiemei Electronic And Technology Co., Ltd., see: Exploring Zhejiang Jiemei Electronic And Technology Co., Ltd. Investor Profile: Who's Buying and Why?

Zhejiang Jiemei Electronic And Technology Co., Ltd. (002859.SZ) - Valuation Analysis

• P/E ratio (trailing, as of 2025-11-21): 61.44 - indicates high earnings multiple relative to current EPS.
• P/B ratio: 1.00 - shares trading near book value per share.
• P/S ratio: 1.00 - valuation at roughly one times trailing sales.
• Dividend yield: 0.70% - modest cash return to shareholders.
• Market capitalization: CNY 12.29 billion (2025-11-21).
• Enterprise value (EV): CNY 15.14 billion - includes net debt and minority interests.
• Share price: CNY 28.85 on 2025-11-21.

• High P/E (61.44) suggests market expectations for elevated future growth or limited near-term earnings; compare against sector peers to gauge premium.
• P/B and P/S at 1.00 indicate the stock is priced roughly in line with its book value and sales, which can signal fair value if asset quality and revenue stability are strong.
• The gap between market cap (CNY 12.29B) and EV (CNY 15.14B) reflects net debt/minority interests; EV-to-sales and EV-to-EBITDA metrics provide leverage-adjusted valuation context.
• Dividend yield of 0.70% is low relative to income-focused names; total shareholder return will rely more on capital appreciation than cash distributions.

Zhejiang Jiemei Electronic And Technology Co., Ltd. (002859.SZ) - Risk Factors

Key risk exposures for Zhejiang Jiemei Electronic And Technology Co., Ltd. (002859.SZ) center on macro-financial volatility, capacity and product execution, downstream demand dynamics, and technology integration. The items below synthesize these risks with observable financial signals and quantified sensitivities where available.

• Foreign exchange volatility: the company disclosed a net exchange loss-driven by a large RMB appreciation versus the USD-resulting in a material FX hit in the reporting period.
• New capacity rollout risk: planned production capacity increases may underperform utilization expectations and compress near‑term margins.
• New business expansion risk: diversification and new business lines may fail to achieve projected revenue or margin contributions.
• Downstream demand recovery risk: weaker-than-expected demand from core customers/end markets could depress sales and inventory turnover.
• New product development risk: R&D and go-to-market outcomes may not meet market acceptance or timing assumptions.
• Technology integration risk: adoption of new production technologies or processes could deliver lower-than-anticipated efficiency gains or incur higher capex.

Practical investor considerations include hedging FX exposure, monitoring utilization trends post-capacity expansion, tracking early revenue contribution from new business units, and assessing R&D milestones and capex phasing. For company background and strategic context that frame these risks, see Zhejiang Jiemei Electronic And Technology Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money.

Zhejiang Jiemei Electronic And Technology Co., Ltd. (002859.SZ) - Growth Opportunities

• Product portfolio expansion: moved beyond polarizing and optical films into high-end release films, composite current collectors, and composite electrolyte-related products for solid-state battery applications.
• Strategic alliances: signed a strategic cooperation framework with a solid-state battery manufacturer (agreement announced 2024‑Q1) to co-develop lightweight, high-safety composite electrolyte products.
• R&D & localization push: stepped up trial production and R&D for domestically produced electronic-grade films to reduce import dependence and improve margin mix.
• Capacity scaling: through subsidiary Rouzhen Technology expanded composite fluid production capacity; second phase of cast films project entered trial production in May 2024.
• Volume traction: increased shipments in polarizing film manufacturing, with management reporting double‑digit shipment growth versus the prior year.

• Commercialization path: trial production of cast films and composite electrolyte samples expected to convert into incremental sales as validation and qualification with battery OEMs progress (pilot to mass-production timeline 12-24 months depending on customer qualification).
• Margin upside drivers: higher-mix high-end release films and domestic substitution of electronic-grade films could increase blended gross margin by 2-4 percentage points if ramp and yield targets are met.
• CapEx & funding: accelerated investment (approx. RMB 200M allocated to Rouzhen & cast film phase II capex) implies near-term cash outflows but positions the company for mid‑term top-line expansion.