Breaking Down Shaanxi Heimao Coking Co., Ltd. Financial Health: Key Insights for Investors

Shaanxi Heimao Coking Co., Ltd. sits at a financial crossroads: first-quarter 2025 revenue plunged to CNY 2.58 billion (down 37.31% year-over-year) while TTM revenue through March 31, 2025, falls to CNY 13.04 billion (a 26.33% decline), even as the company's operations-centered on coal coke and coal chemical products-face mounting pressure from sustained losses including a TTM net loss of CNY 1.26 billion and a first-half 2025 net loss of CNY 462.34 million; balance-sheet strain is evident with total debt of CNY 5.43 billion, net debt of CNY 4.33 billion and a debt-to-equity ratio of 73.59% alongside a precarious liquidity profile (current ratio 0.28, quick ratio 0.19), negative operating cash flow and free cash flow, and distress signals such as an Altman Z-Score of 0.32, yet the company is pursuing growth moves-planned capital raise of CNY 600 million for coal processing, strategic investments and acquisitions-that could reshape its outlook and warrant a deeper look into valuation metrics (P/B 1.09, P/S 0.73, EV/EBITDA -11.20) and recent market behavior before making an investment decision.

Shaanxi Heimao Coking Co., Ltd. (601015.SS) - Revenue Analysis

• Q1 2025 revenue: CNY 2.58 billion (down 37.31% YoY vs Q1 2024)
• TTM revenue as of 2025-03-31: CNY 13.04 billion (down 26.33% YoY)
• Full-year 2024 revenue: CNY 14.58 billion (down 21.58% YoY vs 2023)
• Revenue per employee (2024): CNY 1.66 million; total employees: 7,840 (as of 2024-12-31)
• Market capitalization: CNY 6.80 billion (as of 2025-06-27)

Shaanxi Heimao Coking Co., Ltd. (601015.SS) - Profitability Metrics

• Net loss (1H 2025): CNY 462.34 million (vs. CNY 445.58 million loss in 1H 2024)
• Basic loss per share from continuing operations (1H 2025): CNY 0.23 (vs. CNY 0.22 in 1H 2024)
• TTM net income (as of 12‑Dec‑2025): loss of CNY 1.26 billion
• TTM operating income (ending 31‑Mar‑2025): loss of CNY 1.19 billion
• TTM gross margin (as of 12‑Dec‑2025): -7.89%
• TTM ROE (as of 12‑Dec‑2025): -19.23%

• Negative gross margin (-7.89%) implies cost of goods sold exceeded revenue on a TTM basis, pressuring operating profit.
• TTM operating loss of CNY 1.19 billion (ending 31‑Mar‑2025) aligns with the cumulative TTM net loss of CNY 1.26 billion, indicating limited non‑operating offsets.
• ROE at -19.23% signals capital erosion for shareholders over the trailing year.
• Sequential comparatives (1H 2024 → 1H 2025) show losses modestly increased and basic loss per share ticked up, reflecting persistent earnings pressure.

Shaanxi Heimao Coking Co., Ltd. (601015.SS) - Debt vs. Equity Structure

Key balance-sheet and solvency metrics as of December 12, 2025 highlight a capital structure with meaningful leverage and constrained short-term liquidity.

• Debt-to-equity ratio: 73.59%
• Total debt: CNY 5.43 billion
• Cash and cash equivalents: CNY 1.09 billion
• Net debt: CNY 4.33 billion
• Equity (book value): CNY 7.37 billion
• Book value per share: CNY 2.76
• Current ratio: 0.28
• Quick ratio: 0.19
• Interest coverage ratio: -3.94

Implications for stakeholders:

• Leverage: A 73.59% debt-to-equity ratio shows reliance on debt financing relative to equity capital.
• Net indebtedness: With CNY 4.33 billion net debt, equity cushions exist (CNY 7.37 billion) but leverage remains material.
• Liquidity stress: Current ratio 0.28 and quick ratio 0.19 signal limited short-term coverage of liabilities by liquid assets.
• Coverage shortfall: Interest coverage at -3.94 indicates operating income is insufficient to service interest, increasing refinancing and solvency risk.

For additional corporate context and background, see Shaanxi Heimao Coking Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Shaanxi Heimao Coking Co., Ltd. (601015.SS) - Liquidity and Solvency

Shaanxi Heimao Coking Co., Ltd. shows strained short-term liquidity and elevated solvency risk based on recent trailing twelve‑month (TTM) metrics through December 12, 2025. Key headline figures: current ratio 0.28, quick ratio 0.19, net cash position -CNY 4.33 billion, operating cash flow -CNY 47.41 million, free cash flow -CNY 689.80 million, Altman Z‑Score 0.32, Piotroski F‑Score 1.

• Current ratio: 0.28 - indicates assets available to cover current liabilities are well below 1x.
• Quick ratio: 0.19 - very limited near‑cash/liquid resources after inventory exclusion.
• Net cash position: -CNY 4.33 billion - company is net debtor rather than net cash holder.
• Operating cash flow (TTM to 2025‑12‑12): -CNY 47.41 million - operations are generating negative cash flow.
• Free cash flow (TTM to 2025‑12‑12): -CNY 689.80 million - cash available after capex is materially negative.
• Altman Z‑Score: 0.32 - places the company in a high bankruptcy‑risk zone by the Z‑Score framework.
• Piotroski F‑Score: 1 - suggests weak fundamental performance and limited financial improvement signals.

Implications for creditors and equity holders:

• High short‑term liquidity strain - current and quick ratios far below conservative thresholds (1.0 and 0.5-1.0 respectively).
• Negative operating and free cash flow - suggests dependence on financing or asset sales to fund operations and capex.
• Large net debt position - leverage increases vulnerability to interest cost rises and creditor covenants.
• Low Altman and Piotroski scores - quantitative red flags for solvency and near‑term fundamental deterioration.

For context on strategy and corporate priorities, see: Mission Statement, Vision, & Core Values (2026) of Shaanxi Heimao Coking Co., Ltd.

Shaanxi Heimao Coking Co., Ltd. (601015.SS) - Valuation Analysis

• Market capitalization: CNY 8.07 billion.
• Price-to-book (P/B): 1.09 - trading slightly above book value.
• Price-to-sales (P/S): 0.73 - relatively low valuation versus revenue.
• Enterprise value (EV): CNY 14.14 billion.
• EV/EBITDA: -11.20 - negative, indicating EBITDA is negative or one-time items distort operating profit.
• EV/Sales: 1.28 - valuation roughly 1.3x annual sales.
• 52-week price change: +6.18%.
• Beta: 1.14 - higher volatility than the broader market.

• A P/B near 1.0 implies limited premium over net asset value - the market prices the company close to its book equity.
• A P/S of 0.73 suggests revenue is cheap relative to market cap, but revenue quality and margins must be assessed given negative EV/EBITDA.
• Negative EV/EBITDA (-11.20) is a red flag for operating profitability - likely due to negative or highly depressed EBITDA; investigate recent margins, non-recurring items, and accounting adjustments.
• EV/Sales of 1.28 combined with low P/S indicates leverage and liabilities inflate EV relative to market cap; review net debt composition and off-balance-sheet items.
• Beta of 1.14 and a modest 52-week gain (+6.18%) indicate the stock can amplify market moves despite limited recent upside.

Shaanxi Heimao Coking Co., Ltd. (601015.SS) - Risk Factors

Key financial and market risks investors should weigh when evaluating Shaanxi Heimao Coking Co., Ltd. (601015.SS):

• Consecutive net losses with a trailing twelve months (TTM) net loss of CNY 1.26 billion (as of 12 Dec 2025).
• High leverage: debt-to-equity ratio of 73.59% indicating significant reliance on debt financing.
• Negative cash generation: operating cash flow and free cash flow are both negative, signaling potential liquidity pressure.
• Distressed credit/insolvency signal: Altman Z-Score of 0.32 - well below healthy thresholds.
• Poor fundamental score: Piotroski F-Score of 1, reflecting weak profitability, liquidity, and operational efficiency metrics.
• Adverse market performance: share price declined 9.7% over the past week and is down 49% over the past three years.

Primary areas of investor concern:

• Bankruptcy risk and solvency given the ultra-low Altman Z-Score and sustained losses.
• Refinancing and interest-rate exposure due to high debt-to-equity and negative cash flow.
• Poor operational and earnings recovery prospects signaled by a Piotroski F-Score of 1.
• Market sentiment risk reflected in recent and multi-year stock declines, which may limit access to equity capital.

For context on corporate direction and stated strategic priorities, see: Mission Statement, Vision, & Core Values (2026) of Shaanxi Heimao Coking Co., Ltd.

Shaanxi Heimao Coking Co., Ltd. (601015.SS) - Growth Opportunities

• Planned capacity expansion: CNY 600 million capital raise announced in May 2025 earmarked for the coal processing unit, signaling direct investment in production scale and modernization.
• Regional consolidation/industry M&A: The November 2025 acquisition of Zhangye Hongneng Coal Industry Co., Ltd. and Zhangye Hongneng Changsheng Energy Co., Ltd. by Anhui Hengyuan Coal Industry and Electricity Power Co., Ltd. (~CNY 440 million) could alter competitive dynamics and open cooperation or bolt-on opportunities for Shaanxi Heimao given overlapping markets and resource bases.
• Strategic partnerships and upstream support: The CNY 60 million funding to Xinjiang Heimao Coal Chemical Co., Ltd. (May 2025) establishes or strengthens a supply/technology relationship that can secure feedstock or product channels.
• Market sentiment and valuation: Market capitalization of CNY 8.07 billion (as of 9 December 2025) and a 52-week stock price increase of 6.18% reflect investor interest and provide potential currency for future financing or M&A.

• Demand drivers: Steel production cycles, chemical feedstock demand, and specialty carbon markets (batteries, electrodes) underpin medium-term volume and margin potential.
• Operational levers: Scaling coal processing capacity, improving coke yield and quality, and adopting cleaner/energy‑efficient processes can raise margins and compliance standing.
• Financial levers: Use of market capitalization and incremental financing capacity to fund bolt-on acquisitions or JV stakes (as evidenced by the CNY 60m funding and CNY 600m raise) to broaden geographic reach or product mix.
• Risks to monitor: Commodity price volatility, environmental/regulatory tightening in China's coal chemical sector, and integration challenges from regional consolidation.