Breaking Down Anhui Tatfook Technology Co., Ltd Financial Health: Key Insights for Investors

Anhui Tatfook Technology Co., Ltd. presents a mixed financial picture that demands close attention: quarterly revenue of 589.33 million CNY (up 0.19% sequentially) contrasts with a trailing twelve-month revenue of 2.36 billion CNY (down 2.75% year‑over‑year) while the company records a TTM net loss of 421.46 million CNY and a negative EPS of 0.55 CNY; profitability is strained with a profit margin of -20.10% and EBITDA at -93.50 million CNY, even as conservative leverage (total debt-to-equity ~14.21%) and a mid-cap market capitalization of 8.92 billion CNY sit alongside valuation signals - a trailing P/E of 93.50, forward P/E of 35.50 and P/S of 3.78 - and operational cash flow headwinds (operating cash flow TTM -1.72 million CNY) that make the company's strategic moves (including a ~190 million CNY asset sale and expansion into smart education platforms adopted by over 1,000 schools) critical variables for investors to assess further

Anhui Tatfook Technology Co., Ltd (300134.SZ) - Revenue Analysis

• Q3 2025 (quarter ending Sep 30, 2025) revenue: 589.33 million CNY - +0.19% vs. prior quarter.
• Trailing twelve months (TTM) revenue: 2.36 billion CNY - -2.75% YoY.
• FY 2024 revenue: 2.32 billion CNY - -6.88% vs. 2023.
• Revenue per employee: ~531,410 CNY based on 4,436 employees.
• Price-to-Sales (P/S) ratio: 3.78.
• Market capitalization: 8.92 billion CNY (mid-cap).

• Sequential stability: The negligible quarterly increase (0.19%) suggests near-flat short-term demand or seasonal effects offset by cost or product mix changes.
• Y/Y contraction: Both TTM (-2.75%) and FY2024 (-6.88%) declines point to headwinds compared with the prior year that investors should monitor (product cycles, pricing, or market share).
• Efficiency signal: Revenue per employee (~531,410 CNY) provides a useful productivity benchmark versus peers in the sector.

Anhui Tatfook Technology Co., Ltd (300134.SZ) - Profitability Metrics

Key profitability indicators for Anhui Tatfook Technology Co., Ltd (300134.SZ) point to ongoing operational stress despite some improvement year-over-year in early 2025. The following metrics summarize recent performance.

• Trailing twelve months (TTM) net income: -421.46 million CNY (loss)
• TTM earnings per share (EPS): -0.55 CNY
• Profit margin: -20.10%
• Operating margin: -10.84%
• Return on assets (ROA): -3.98%
• Return on equity (ROE): -9.98%
• Gross profit margin: ~7.95%
• EBITDA: -93.50 million CNY
• H1 2025 net loss: -116.27 million CNY (improved from -136.9 million CNY in H1 2024)

For investor context and shareholder activity related to these results see: Exploring Anhui Tatfook Technology Co., Ltd Investor Profile: Who's Buying and Why?

Anhui Tatfook Technology Co., Ltd (300134.SZ) - Debt vs. Equity Structure

• Total debt-to-equity ratio: 14.21% - indicates conservative overall leverage.
• Debt-to-equity ratio: 13.39% - confirms a low level of debt relative to shareholders' equity.
• Book value per share: 4.95 CNY - net asset backing per share.
• Total cash per share: 0.79 CNY - liquid resources attributable to each share.
• Current ratio: 1.53 - sufficient short-term liquidity to cover near-term obligations.
• Enterprise value / Revenue: 4.20 - valuation multiple relative to top-line revenue.

Anhui Tatfook Technology Co., Ltd (300134.SZ) - Liquidity and Solvency

• Current ratio: 1.53 - indicates the company has 1.53 CNY of current assets for each 1 CNY of current liabilities.
• Quick ratio: not specified - typically lower than the current ratio since it excludes inventory; important for assessing near-term obligations without relying on inventory liquidation.
• Cash ratio: not provided - would show immediate ability to meet liabilities using cash and cash equivalents only.
• Operating cash flow (TTM): -1.72 million CNY - negative operational cash generation over the last twelve months.
• Levered free cash flow: 80.25 million CNY - positive amount available after financing costs and obligations.
• Net debt: 107 million CNY - total debt minus cash and equivalents, reflecting a net indebted position.

• Implication: positive levered free cash flow alongside negative operating cash flow suggests timing differences, non-operational cash inflows, or financing/asset-sale impacts that warrant further line-item review.
• Solvency note: net debt of 107 million CNY combined with current ratio 1.53 implies the company is not immediately illiquid, but leverage and cash-generation trends should be monitored.
• Further reading on the company's background and how it generates cash: Anhui Tatfook Technology Co., Ltd: History, Ownership, Mission, How It Works & Makes Money

Anhui Tatfook Technology Co., Ltd (300134.SZ) - Valuation Analysis

The valuation metrics for Anhui Tatfook Technology Co., Ltd (300134.SZ) show a company priced at a premium on several traditional ratios, with mixed signals from forward estimates and enterprise-value measures.

• Trailing P/E: 93.50 - a high historical earnings multiple, indicating elevated market expectations or recent earnings compression.
• Forward P/E: 35.50 - materially lower than the trailing P/E, implying expected earnings recovery or analysts' projected growth.
• Price-to-Book (P/B): 2.44 - the market values the company at roughly 2.4x its book equity.
• EV/EBITDA: -111.87 - negative EBITDA drives an anomalous enterprise-value multiple; this signals operating losses at the EBITDA level.
• EV/Revenue: 4.20 - the enterprise value is about 4.2x trailing revenue, showing how the market prices sales independent of current profitability.
• Market Capitalization: 8.92 billion CNY - mid-cap scale in the A-share market context.

Key valuation takeaways:

• The very high trailing P/E combined with a much lower forward P/E suggests either near-term earnings pressure that is expected to abate or optimistic analyst projections.
• Negative EV/EBITDA cautions that operating profitability is currently weak; EV/Revenue of 4.20 shows investors are paying for revenue despite limited EBITDA.
• P/B at 2.44 and market cap of 8.92 billion CNY position the stock as a premium mid-cap play where balance-sheet value and growth expectations both influence price.

For broader corporate context and how the business generates revenue, see: Anhui Tatfook Technology Co., Ltd: History, Ownership, Mission, How It Works & Makes Money

Anhui Tatfook Technology Co., Ltd (300134.SZ) - Risk Factors

• Consecutive net losses: net loss of ¥421.46 million CNY (TTM).
• Negative profitability: reported negative profit margin and negative operating margin, indicating ongoing operational challenges.
• Negative EBITDA: EBITDA of -¥93.50 million CNY, reflecting operational inefficiencies.
• Operating cash flow shortfall: operating cash flow of -¥1.72 million CNY (negative cash flow from operations).
• High valuation relative to earnings: trailing P/E ratio of 93.50, suggesting potential overvaluation vs. current earnings power.
• Revenue contraction: management and filings indicate a declining revenue trend over the past few years, exposing the company to demand and competitive pressures.
• Liquidity and solvency risk: ongoing losses and negative operating cash flow increase refinancing and solvency pressure if recovery is delayed.
• Execution risk: turning margins and EBITDA positive will require operational fixes and revenue stabilization; failure to do so amplifies investor downside.

• Investor considerations:
  • Valuation risk: high P/E in the context of losses increases downside if recovery stalls.
  • Cash burn and funding: negative OCF and losses may necessitate external financing, diluting shareholders or raising leverage.
  • Operational turnaround dependency: improvements hinge on revenue stabilization, cost control, and margin recovery.

Anhui Tatfook Technology Co., Ltd (300134.SZ) - Growth Opportunities

• Smart education cloud platform development: targeting district- and province-level deployments to convert one-time software sales into recurring cloud and service revenue.
• Paraka platform traction: implemented in over 1,000 schools with students having created more than 500,000 3D worlds, demonstrating strong product-market fit and user engagement.
• Capital from divestment: sale of a 27% stake in Shenzhen A&E Intelligent Equipments Co., Ltd for ~190 million CNY provides dry powder for R&D, go-to-market expansion, or M&A.
• Mid-cap positioning: market capitalization of 8.92 billion CNY allows institutional visibility while retaining upside potential as growth accelerates.

• Conversion of Paraka school deployments into subscription/cloud revenue and per-student monetization.
• Rollout cadence and pricing of the smart education cloud platform across provinces.
• Allocation and effectiveness of the ~190M CNY proceeds for product development, sales expansion, or strategic acquisitions.
• Improvement in profitability and margin expansion to justify the forward P/E multiple.