Breaking Down Jiahe Foods Industry Co., Ltd. Financial Health: Key Insights for Investors

Jiahe Foods Industry Co., Ltd. presents a study in contrasts: H1 2025 operating revenue rose to CNY 1.185 billion (up 10.43% year-on-year) even as net profit plunged by 82.10% to just CNY 12.43 million, following a full-year 2024 revenue decline to CNY 2.31 billion (‑18.68% vs. 2023) and TTM revenue of CNY 2.40 billion as of 30 Sep 2025 (‑1.48% YoY); profitability metrics paint further pressure-H1 2025 net margin about 1.05% vs. 6.46% a year earlier, EPS down to CNY 0.03 (‑82.35%), 2024 gross margin 12.59% and ROE slipping to 4.85%-while the balance sheet shows total assets of CNY 1.855 billion, liabilities CNY 671.7 million, a lower debt-to-asset ratio of 36.19% and equity ratio of 63.81%, supported by CNY 5.29 billion market capitalization (share price CNY 11.76) but a stretched valuation at a P/E 185.14 and P/S 2.37; liquidity looks mixed with a current ratio of 1.25, quick ratio 0.95, cash ratio 0.45 and operating cash flow ratio 1.2, while growth bets-CNY 550 million coffee capacity investment, Bayannur plant expansions and an Xinghua third phase through end‑2026-meet risks from raw material volatility, competitive plant‑based markets, food‑safety and regulatory exposure that could reshape the stock's risk/return profile.

Jiahe Foods Industry Co., Ltd. (605300.SS) - Revenue Analysis

Key top-line and related financial metrics for Jiahe Foods Industry Co., Ltd. across recent reporting periods, highlighting growth, contraction and efficiency measures.

• Operating revenue H1 2025: CNY 1.185 billion (+10.43% YoY).
• Net profit H1 2025: CNY 12.43 million (-82.10% YoY).
• Revenue FY 2024: CNY 2.31 billion (-18.68% vs. 2023).
• TTM revenue as of 2025-09-30: CNY 2.40 billion (-1.48% YoY).
• Revenue per employee (2024-12-31): CNY 2.38 million; total employees: 1,006.
• Market capitalization (2025-12-12): CNY 5.29 billion; P/S ratio: 2.37.

• High-level tension: H1 2025 revenue growth (+10.43%) contrasts with a severe margin/earnings compression (net profit -82.10%).
• Year-over-year revenue trajectory: FY 2024 showed a notable decline (-18.68%), while TTM to 2025-09-30 largely stabilized but remained slightly down (-1.48%).
• Capital market context: market cap CNY 5.29bn implies investors pay ~2.37x trailing sales.

Further background on strategy, ownership and how the business operates: Jiahe Foods Industry Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiahe Foods Industry Co., Ltd. (605300.SS) - Profitability Metrics

• Net profit margin (H1 2025): ~1.05% vs. 6.46% in H1 2024 - an acute year‑over‑year decline.
• EPS (H1 2025): CNY 0.03, down 82.35% from CNY 0.17 in H1 2024.
• Gross profit margin (FY 2024): 12.59% vs. 18.91% in FY 2023.
• Operating profit margin (FY 2024): 1.29% vs. 5.12% in FY 2023.
• Return on equity (ROE, FY 2024): 4.85% vs. 15.23% in FY 2023.
• Return on assets (ROA, FY 2024): 1.02% vs. 3.15% in FY 2023.

• Drivers likely include margin pressure on gross profit (down 6.32 percentage points year‑over‑year), higher operating cost absorption (operating margin down to 1.29%), and a sharp decline in net profitability reflected in EPS falling by 82.35% in H1 2025.
• Capital efficiency and shareholder returns deteriorated: ROE fell from 15.23% to 4.85%, while ROA dropped from 3.15% to 1.02% in 2024.
• These trends suggest squeezing of both top‑line margins and conversion of operating profit into net earnings.

Jiahe Foods Industry Co., Ltd. (605300.SS) - Debt vs. Equity Structure

• Total assets (2024): CNY 1,855.0 million
• Total liabilities (2024): CNY 671.7 million
• Total equity (2024): CNY 1,183.3 million (implied: assets - liabilities)
• Debt-to-asset ratio (2024): 36.19% (down from 45.81% in 2023)
• Equity ratio (2024): 63.81% (up from 54.19% in 2023)

• Lower leverage in 2024: The decline in the debt-to-asset ratio to 36.19% signals reduced relative reliance on liabilities versus 2023.
• Stronger equity base: An equity ratio of 63.81% provides greater cushion for creditors and more capacity for absorbing shocks or funding growth without new debt.
• Market valuation context (Dec 12, 2025): Market cap of CNY 5.29 billion and an EV of CNY 3.94 billion imply investor expectations priced into equity; the P/E of 185.14 suggests high forward-looking multiple or low trailing earnings.
• Capital injection (Feb 2025): The ~CNY 85 million private placement increased invested capital and shareholding concentration-relevant for both governance and financial flexibility.

Jiahe Foods Industry Co., Ltd. (605300.SS) - Liquidity and Solvency

• Current ratio: 1.25 - indicates adequate overall short-term liquidity.
• Quick ratio: 0.95 - suggests potential difficulty meeting immediate obligations without converting inventory to cash.
• Cash ratio: 0.45 - limited cash reserves relative to current liabilities; reliance on receivables and inventory to meet near-term obligations.
• Interest coverage ratio: 3.5 - operating earnings cover interest expense 3.5 times, a moderate cushion for creditors.
• Operating cash flow ratio: 1.2 - operating cash flow is sufficient to cover current liabilities, supporting near-term operational solvency.
• Net working capital (Dec 31, 2024): CNY 150 million - positive working capital supporting day-to-day operations.

• Operational implication: the 1.2 operating cash flow ratio offsets the low cash ratio, indicating operations are generating cash even if immediate cash holdings are modest.
• Risk considerations: quick ratio below 1.0 and cash ratio of 0.45 make the company vulnerable to sudden sales slowdowns or inventory write-downs.
• Debt service: interest coverage of 3.5 provides a reasonable cushion, but not a wide margin during earnings volatility.

Jiahe Foods Industry Co., Ltd. (605300.SS) - Valuation Analysis

• Market snapshot (12‑Dec‑2025): share price CNY 11.76, market cap CNY 5.29 billion.
• Earnings pressure: EPS FY2024 CNY 0.06 (down from CNY 0.17 in FY2023).
• Dividend: CNY 0.06 per share, dividend yield 0.51% (12‑Dec‑2025).

• Interpretation: valuation multiples imply market optimism relative to current earnings; investors should reconcile multiples with revenue growth, margin trends, and capital structure.
• Risks embedded in multiples: compressed EPS (0.06 in 2024) makes P/E highly sensitive to small earnings changes; dividend yield (0.51%) offers limited income cushion.
• Use case: compare these multiples against regional peers and historical Jiahe Foods multiples to assess whether premium P/E and moderate P/S are supported by execution and growth.

Jiahe Foods Industry Co., Ltd. (605300.SS) - Risk Factors

• Competitive pressure in plant-based cream market - declining sales efficiency and margin compression.
• Raw material price volatility (coconut oil, palm kernel oil) - direct impact on COGS and gross margin.
• Shifts in health trends and consumer preference - potential demand contraction for non-dairy creamers.
• Capital intensity from coffee production capacity expansion - short- to medium-term strain on liquidity and leverage.
• Food safety and product quality risks for vegetable fat powder - reputational and recall cost exposure.
• Regulatory, compliance, and audit changes - operational disruptions and potential reserve/penalty requirements.

• Cash flow and leverage sensitivity - if capex for coffee capacity is financed with debt, a 1% rise in borrowing costs on incremental RMB 300m debt increases annual interest by ~RMB 3m (0.17% of hypothetical RMB 1.8bn revenue), tightening free cash flow.
• Margin sensitivity to oil price moves - a 10% rise in coconut/palm kernel oil input costs can cut gross margin by roughly 0.8-2.0 percentage points depending on product mix and pass-through ability.
• Inventory risk - higher raw-material volatility can push working capital needs up; a 10-20 day increase in inventory turnover can require an incremental RMB 50-150m cash outlay (company-specific).
• Product mix and revenue concentration - reliance on non-dairy creamer and vegetable fat powder lines means demand shifts have outsized earnings impact.
• Audit & regulatory exposure - any adverse audit findings can trigger restatements, delayed filings, or fines that affect investor confidence and share liquidity.

• Hedging or long-term supply contracts for coconut and palm kernel oils to stabilize COGS.
• Progress and financing plan for coffee capacity: projected capex, committed vs. conditional financing, and expected payback period.
• Quality-control metrics and recent food safety track record (recalls, supplier audits).
• Gross margin trends, inventory days, and net-debt/EBITDA trajectory across recent quarters.
• Regulatory filings, auditor remarks, and any restatement or provision disclosures.

Jiahe Foods Industry Co., Ltd. (605300.SS) - Growth Opportunities

Jiahe Foods is executing a multi-pronged expansion and diversification strategy that targets coffee, fresh-processed vegetables, plant-based products and international market entry. Key capital deployments and capacity expansions already underway or announced provide measurable levers for future revenue and margin improvements.

• Major coffee investment: CNY 550 million allocated to enhance coffee production capacity and related processing capabilities.
• New Bayannur plant (2023): green & red bell peppers, tomatoes and other vegetables brought online to strengthen fresh-processed product mix and seasonal supply stability.
• Xinghua Jiahe third-phase expansion: scheduled completion by end-2026 to raise packaged/processed output for existing product lines.
• Product diversification: planned launch of plant-based product lines to capture growing alternative-protein demand.
• International expansion: exploration of export channels and overseas partnerships to diversify revenue geography.
• Strategic collaborations: potential synergies with food & beverage partners for co-packing, distribution and product R&D.

• Near-term focus: operationalize coffee capex and maximize output from Bayannur plant to capture seasonal and retail demand.
• Medium-term focus: complete Xinghua Phase III (end-2026) and roll out plant-based SKUs to broaden margins and consumer reach.
• Partnerships & exports: prioritize partner-led entry into adjacent markets to limit upfront trade/marketing costs while validating product-market fit.

For historical background and corporate structure context that complements these growth initiatives: Jiahe Foods Industry Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money