Breaking Down Ningbo Shenglong Automotive Powertrain System Co.,Ltd. Financial Health: Key Insights for Investors

Ningbo Shenglong Automotive Powertrain System Co., Ltd. presents a mixed financial picture this year: quarterly revenue fell to CNY 400.24 million (down 17.12% QoQ) while TTM revenue rose to CNY 1.74 billion (up 13.16% YoY), yet the company recorded a TTM net loss of CNY 50.06 million with a negative net margin of -2.88% and an EPS of -CNY 0.21; operational strains show in a gross margin of 7.62%, operating margin of -4.57%, EBITDA margin of 0.97% and EBITDA-based metrics such as an eye-catching EV/EBITDA 223.00, while balance-sheet indicators include a market cap of CNY 4.81 billion, debt of CNY 293.78 million versus cash of CNY 199.42 million (net debt CNY 94.36 million), a conservative debt-to-equity of 0.24, constrained liquidity (current ratio 1.03, quick ratio 0.74), weak cash generation with operating cash flow of CNY 23.71 million and free cash flow of -CNY 97.92 million, an Altman Z-Score of 3.47 alongside a Piotroski F-Score of 4, and notable strategic developments-North American factory relocation (with related costs and inventory hits) and a five-year flying-car components deal expected to bring CNY 120 million in sales-that could reshape revenue mix and risk exposure going forward

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) - Revenue Analysis

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. reported mixed top-line trends across recent periods, showing sequential softness in Q1 2025 but year-on-year expansion on a trailing twelve months basis. Key figures and metric breakdown follow.

• Q1 2025 revenue: CNY 400.24 million (down 17.12% vs. prior quarter CNY 482.94 million)
• TTM revenue: CNY 1.74 billion (up 13.16% vs. prior year CNY 1.62 billion)
• Quarter ending Sep 30, 2025: revenue decreased 0.19% vs. same period in 2024
• Full-year 2024 revenue: CNY 1.62 billion (up 11.66% vs. prior year)
• Revenue per employee: ~CNY 1.19 million (total employees: 1,457)
• Market capitalization: CNY 4.81 billion; P/S ratio: 2.77

Interpretation of these figures suggests:

• The sequential Q1 2025 decline signals near-term demand or seasonality pressures; however, the TTM uplift (+13.16%) shows improvement versus the prior year.
• Full-year 2024 growth of 11.66% established a higher revenue base that TTM continues to exceed, while slight YoY softness in the Sep 30, 2025 quarter (-0.19%) indicates stabilization rather than sharp contraction.
• Operational productivity is moderate: revenue per employee ~CNY 1.19M; valuation at P/S 2.77 implies the market prices in growth and margin expectations relative to peers.

For additional context on ownership, investor interest and shareholder composition, see: Exploring Ningbo Shenglong Automotive Powertrain System Co.,Ltd. Investor Profile: Who's Buying and Why?

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) - Profitability Metrics

• Trailing twelve months (TTM) net income: -CNY 50.06 million (net profit margin: -2.88%).
• Q1 2025 net loss: -CNY 30.94 million vs. Q1 2024 net income: CNY 0.85 million.
• TTM gross profit margin: 7.62% - indicating tight gross margins and cost pressure.
• TTM operating margin: -4.57%; EBITDA margin: 0.97% - operational inefficiencies and low cash-operating profitability.
• Return metrics: ROE -4.02%; ROA -2.16% - negative returns on equity and assets.
• TTM EPS: -CNY 0.21 (loss per share).

• Investors should note the steep year-over-year swing in quarterly net results (from a small profit in Q1 2024 to a sizable loss in Q1 2025) and persistently thin gross and EBITDA margins.
• Negative ROE and ROA indicate current capital and asset bases are not generating positive returns.
• EPS of -CNY 0.21 signals dilution of shareholder value from recurring losses unless profitability is restored.

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) - Debt vs. Equity Structure

• Debt-to-equity ratio: 0.24 - indicates limited reliance on debt relative to shareholder equity.
• Total debt: CNY 293.78 million; Cash & cash equivalents: CNY 199.42 million; Net debt: CNY 94.36 million.
• Equity (book value): CNY 1.21 billion; Book value per share: CNY 5.14.
• Interest coverage ratio: -10.04 - operating income is insufficient to cover interest expense.
• Debt-to-EBITDA ratio: 14.82 - very high debt relative to EBITDA.
• Debt-to-free cash flow ratio: -3.00 - free cash flow is negative or insufficient to service debt.

• Balance-sheet leverage (D/E 0.24) provides a buffer, but operating performance weakens that protection given negative interest coverage.
• High debt/EBITDA (14.82) signals potential solvency risk if EBITDA doesn't recover; refinancing or asset sales may be necessary under prolonged weakness.
• Negative or insufficient free cash flow (debt/FCF -3.00) increases reliance on external funding or equity issuance to meet obligations.

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) - Liquidity and Solvency

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) shows a mixed liquidity profile with constrained operating cash generation and significant capital expenditures in the trailing twelve months.

• Immediate liquidity: Current Ratio 1.03 - adequate buffer but minimal; working capital is tight.
• Acid-test: Quick Ratio 0.74 - inventory reliance increases risk if receivables or payables swing.
• Cash generation vs. investment: Operating cash flow CNY 23.71M vs. CapEx CNY 121.63M → FCF -CNY 97.92M.

Key solvency and risk indicators:

• Altman Z-Score 3.47 implies low bankruptcy risk and reasonable solvency headroom.
• Piotroski F-Score of 4 signals weak underlying profitability and operational metrics, suggesting attention to balance-sheet trends.

For context on corporate direction that may influence liquidity and capital allocation decisions, see: Mission Statement, Vision, & Core Values (2026) of Ningbo Shenglong Automotive Powertrain System Co.,Ltd.

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) - Valuation Analysis

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) currently displays valuation metrics that reflect a premium market pricing alongside earnings and cash-flow stress. Key headline metrics are listed below and discussed in context.

• P/E ratio: Not applicable - company reporting a net loss, so price-to-earnings cannot be meaningfully calculated.
• P/B ratio: 3.56 - stock trades at 3.56× book value, indicating investors pay a substantial premium over net asset value.
• EV/EBITDA: 223.00 - extremely elevated, signaling the market values the company far above current EBITDA (or EBITDA is very low/near zero).
• EV/Sales: 2.55 - the market values the company at roughly 2.55× annual sales, a moderate revenue multiple for the auto supply sector.
• EV/FCF: -45.15 - negative free cash flow (and a large negative ratio) highlights cash generation weakness.
• Dividend: CNY 0.04 per share; Dividend yield: 0.22% - nominal cash return to shareholders.

Investors should weigh the high EV/EBITDA and P/B against operational performance and cash generation trends. For broader company context, governance and historical performance, see Ningbo Shenglong Automotive Powertrain System Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money.

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) - Risk Factors

Ningbo Shenglong faces multiple near-term and structural risks that investors should weigh carefully. Recent results and balance-sheet dynamics point to operational stress, cash-generation weakness, and elevated leverage relative to earnings and free cash flow.

• Net profitability and margins: trailing twelve months (TTM) net loss of CNY 50.06 million; gross profit margin 7.62%; operating margin -4.57% - signaling thin top-line profitability and negative operating leverage.
• Relocation-related costs: the North American factory relocation generated significant one-time costs and temporary inventory buildups that impaired near-term profitability and working capital efficiency.
• Cash flow and investment strain: negative operating cash flow of CNY 18.3 million over the period while sustaining substantial capital expenditures, creating pressure on liquidity and raising questions on capex returns.
• Leverage versus earnings and cash flow: debt-to-EBITDA at 14.82 and debt-to-free cash flow at -3.00 indicate difficulty servicing debt from core earnings and negative free-cash-flow coverage.
• Mixed financial-health signals: Altman Z-Score of 3.47 (low bankruptcy probability) contrasts with a Piotroski F-Score of 4 (weak fundamental quality), suggesting resilience but poor operational quality.

• Working-capital risk: inventory accumulation tied to the relocation increases carrying costs and potential obsolescence risk, pressuring gross margins until turnover normalizes.
• Refinancing and covenant risk: high debt-to-EBITDA raises sensitivity to interest-rate moves and future covenant tests should earnings remain depressed.
• Execution risk on North America expansion: additional relocation-related capex or delays could further erode margins and cash flow if revenue ramp lags.
• Operational resilience vs. fundamentals: an Altman Z-Score of 3.47 provides some comfort on solvency, but the Piotroski F-Score of 4 highlights recurring operational weaknesses that can prolong recovery.
• Investor actionables: monitor quarterly changes in operating cash flow, inventory turnover, capex cadence, and any debt-restructuring announcements; see corporate strategic context at Mission Statement, Vision, & Core Values (2026) of Ningbo Shenglong Automotive Powertrain System Co.,Ltd.

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) - Growth Opportunities

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SS) is positioning itself to capture new revenue streams through strategic product diversification, geographic expansion, and intensified R&D. Key catalysts and quantified items to watch:

• Entry into the flying car components market: secured a five-year supply agreement with a leading Chinese flying carmaker, contracted sales of CNY 120 million over the term (implying an average of CNY 24 million per year).
• North American footprint: relocation of the North American factory completed in Q2 2025, enabling closer access to local OEMs and potential volume increases in that market.
• New energy vehicle (NEV) focus: product portfolio alignment with EV powertrain and component needs, tapping into sustained EV adoption growth.
• International diversification: expansion beyond China can reduce domestic concentration risk and smooth revenue cyclicality tied to Chinese auto cycles.
• R&D pipeline: ongoing development of smart execute components and other advanced modules that could command higher margins or create new product lines.

Operational and financial levers that investors should monitor:

• Revenue recognition schedule for the CNY 120 million flying car contract (annualized CNY 24 million figure).
• Utilization rates and output ramp at the relocated North American facility post-Q2 2025.
• Share of sales from NEV-related components versus ICE components, and gross margins by product line.
• R&D spend as a percentage of revenue and resulting time-to-market for new components.
• Export vs domestic revenue mix to assess diversification benefits.

For context on the company's broader background and governance that frame these growth initiatives, see: Ningbo Shenglong Automotive Powertrain System Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money