New Risk • Jul 07
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Dividend per share is over 52x earnings per share. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Dividend per share is over 52x earnings per share. Paying a dividend despite having no free cash flows. Earnings have declined by 3.3% per year over the past 5 years. High level of non-cash earnings (33% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (0.07% net profit margin). 공고 • Jun 30
Zerun Co., Ltd to Report First Half, 2026 Results on Aug 27, 2026 Zerun Co., Ltd announced that they will report first half, 2026 results on Aug 27, 2026 New Risk • May 09
New major risk - Revenue and earnings growth Earnings have declined by 3.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 3.3% per year over the past 5 years. High level of non-cash earnings (33% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.0% average weekly change). Profit margins are more than 30% lower than last year (0.07% net profit margin). 공고 • Apr 29
Zerun Co., Ltd, Annual General Meeting, May 19, 2026 Zerun Co., Ltd, Annual General Meeting, May 19, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Jintan, Changzhou, Jiangsu China Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥77.37, the stock trades at a trailing P/E ratio of 58.3x. Average trailing P/E is 87x in the Semiconductor industry in China. 공고 • Mar 31
Zerun Co., Ltd to Report Q1, 2026 Results on Apr 27, 2026 Zerun Co., Ltd announced that they will report Q1, 2026 results on Apr 27, 2026 Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥79.36, the stock trades at a trailing P/E ratio of 59.8x. Average trailing P/E is 92x in the Semiconductor industry in China. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improves as stock rises 40% After last week's 40% share price gain to CN¥105, the stock trades at a trailing P/E ratio of 78.8x. Average trailing P/E is 98x in the Semiconductor industry in China. New Risk • Jan 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (58% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.6% average weekly change). Profit margins are more than 30% lower than last year (9.8% net profit margin). Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥59.96, the stock trades at a trailing P/E ratio of 45.2x. Average trailing P/E is 97x in the Semiconductor industry in China. 공고 • Dec 31
Zerun Co., Ltd to Report Fiscal Year 2025 Results on Apr 27, 2026 Zerun Co., Ltd announced that they will report fiscal year 2025 results on Apr 27, 2026 Reported Earnings • Oct 23
Third quarter 2025 earnings released: CN¥0.06 loss per share (vs CN¥0.58 profit in 3Q 2024) Third quarter 2025 results: CN¥0.06 loss per share (down from CN¥0.58 profit in 3Q 2024). Revenue: CN¥184.6m (down 19% from 3Q 2024). Net loss: CN¥3.86m (down 114% from profit in 3Q 2024). 공고 • Sep 30
Zerun Co., Ltd to Report Q3, 2025 Results on Oct 23, 2025 Zerun Co., Ltd announced that they will report Q3, 2025 results on Oct 23, 2025 New Risk • Sep 11
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (50% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Board Change • May 16
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. Employee Representatives Supervisor Fan Zhang is the most experienced director on the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors.