New Risk • Apr 29
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.0% Last year net profit margin: 1.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 33% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.0% net profit margin). Reported Earnings • Apr 28
Full year 2025 earnings released: EPS: CN¥0.17 (vs CN¥0.23 in FY 2024) Full year 2025 results: EPS: CN¥0.17 (down from CN¥0.23 in FY 2024). Revenue: CN¥4.69b (up 4.6% from FY 2024). Net income: CN¥53.2m (down 23% from FY 2024). Profit margin: 1.1% (down from 1.5% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Aankondiging • Apr 28
Bestlink Technologies Co.,Ltd., Annual General Meeting, May 18, 2026 Bestlink Technologies Co.,Ltd., Annual General Meeting, May 18, 2026, at 15:00 China Standard Time. Location: Tower E, Building 10, No. 19, Ningshuang Road, Nanjing, Jiangsu China Aankondiging • Mar 30
Bestlink Technologies Co.,Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Bestlink Technologies Co.,Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 Aankondiging • Dec 26
Bestlink Technologies Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2026 Bestlink Technologies Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2026 Reported Earnings • Oct 22
Third quarter 2025 earnings released: EPS: CN¥0.032 (vs CN¥0.048 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.032 (down from CN¥0.048 in 3Q 2024). Revenue: CN¥855.4m (down 19% from 3Q 2024). Net income: CN¥10.2m (down 27% from 3Q 2024). Profit margin: 1.2% (down from 1.3% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Aankondiging • Sep 30
Bestlink Technologies Co.,Ltd. to Report Q3, 2025 Results on Oct 21, 2025 Bestlink Technologies Co.,Ltd. announced that they will report Q3, 2025 results on Oct 21, 2025 New Risk • Sep 08
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 19% per year over the past 5 years. High level of non-cash earnings (22% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (1.2% net profit margin). Aankondiging • Jun 30
Bestlink Technologies Co.,Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Bestlink Technologies Co.,Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Aankondiging • May 07
Bestlink Technologies Co.,Ltd., Annual General Meeting, May 28, 2025 Bestlink Technologies Co.,Ltd., Annual General Meeting, May 28, 2025, at 14:00 China Standard Time. Location: Tower E, Building 10, No. 19, Ningshuang Road, Yuhuatai District, Nanjing, Jiangsu China New Risk • Apr 29
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 57% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 0.6% per year over the past 5 years. High level of non-cash earnings (57% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.9% average weekly change). Profit margins are more than 30% lower than last year (1.5% net profit margin). Reported Earnings • Apr 25
First quarter 2025 earnings released: EPS: CN¥0.07 (vs CN¥0.08 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.07 (down from CN¥0.08 in 1Q 2024). Revenue: CN¥799.7m (down 8.5% from 1Q 2024). Net income: CN¥20.2m (down 21% from 1Q 2024). Profit margin: 2.5% (down from 2.9% in 1Q 2024). The decrease in margin was driven by lower revenue. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥15.46, the stock trades at a trailing P/E ratio of 31.4x. Average trailing P/E is 74x in the IT industry in China. Total returns to shareholders of 5.7% over the past year. Aankondiging • Mar 28
Bestlink Technologies Co.,Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Bestlink Technologies Co.,Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥22.10, the stock trades at a trailing P/E ratio of 44.9x. Average trailing P/E is 94x in the IT industry in China. Total returns to shareholders of 42% over the past year. New Risk • Mar 13
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 8.4% 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 (22% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.4% average weekly change). Profit margins are more than 30% lower than last year (3.2% net profit margin). Valuation Update With 7 Day Price Move • Feb 28
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥17.05, the stock trades at a trailing P/E ratio of 34.6x. Average trailing P/E is 98x in the IT industry in China. Total returns to shareholders of 12% over the past year. Aankondiging • Dec 27
Bestlink Technologies Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 25, 2025 Bestlink Technologies Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 25, 2025 Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥16.92, the stock trades at a trailing P/E ratio of 34.4x. Average trailing P/E is 65x in the IT industry in China. Total loss to shareholders of 5.5% over the past year. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.048 (vs CN¥0.10 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.048 (down from CN¥0.10 in 3Q 2023). Revenue: CN¥1.05b (up 21% from 3Q 2023). Net income: CN¥13.9m (down 55% from 3Q 2023). Profit margin: 1.3% (down from 3.6% in 3Q 2023). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥17.63, the stock trades at a trailing P/E ratio of 32.1x. Average trailing P/E is 70x in the IT industry in China. Total returns to shareholders of 7.2% over the past year. Aankondiging • Sep 30
Bestlink Technologies Co.,Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Bestlink Technologies Co.,Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥15.59, the stock trades at a trailing P/E ratio of 28.4x. Average trailing P/E is 59x in the IT industry in China. Total loss to shareholders of 17% over the past year. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.12 (vs CN¥0.15 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.12 (down from CN¥0.15 in 2Q 2023). Revenue: CN¥1.18b (up 13% from 2Q 2023). Net income: CN¥35.8m (down 23% from 2Q 2023). Profit margin: 3.0% (down from 4.5% in 2Q 2023). The decrease in margin was driven by higher expenses. Aankondiging • Jun 28
Bestlink Technologies Co.,Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Bestlink Technologies Co.,Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: CN¥0.08 (vs CN¥0.11 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.08 (down from CN¥0.11 in 1Q 2023). Revenue: CN¥873.7m (up 4.2% from 1Q 2023). Net income: CN¥25.6m (down 22% from 1Q 2023). Profit margin: 2.9% (down from 3.9% in 1Q 2023). The decrease in margin was driven by higher expenses. Aankondiging • Apr 26
Bestlink Technologies Co.,Ltd., Annual General Meeting, May 16, 2024 Bestlink Technologies Co.,Ltd., Annual General Meeting, May 16, 2024, at 14:00 China Standard Time. Location: Tower E, Building 10, No. 10, Ningshuang Road, Yuhuatai District, Nanjing, Jiangsu China Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥12.44, the stock trades at a trailing P/E ratio of 17.9x. Average trailing P/E is 47x in the IT industry in China. Total loss to shareholders of 29% over the past year. Aankondiging • Mar 30
Bestlink Technologies Co.,Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Bestlink Technologies Co.,Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥15.18, the stock trades at a trailing P/E ratio of 21.8x. Average trailing P/E is 48x in the IT industry in China. Total loss to shareholders of 6.9% over the past year. Valuation Update With 7 Day Price Move • Jan 31
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥14.00, the stock trades at a trailing P/E ratio of 20.1x. Average trailing P/E is 48x in the IT industry in China. Total loss to shareholders of 13% over the past year. Aankondiging • Dec 30
Bestlink Technologies Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 25, 2024 Bestlink Technologies Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 25, 2024 New Risk • Nov 20
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 8.3% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.3% average weekly change). High level of non-cash earnings (36% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Oct 26
Third quarter 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.11 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.10 (down from CN¥0.11 in 3Q 2022). Revenue: CN¥868.6m (up 7.4% from 3Q 2022). Net income: CN¥31.2m (down 8.5% from 3Q 2022). Profit margin: 3.6% (down from 4.2% in 3Q 2022). The decrease in margin was driven by higher expenses. Aankondiging • Sep 30
Bestlink Technologies Co.,Ltd. to Report Q3, 2023 Results on Oct 26, 2023 Bestlink Technologies Co.,Ltd. announced that they will report Q3, 2023 results on Oct 26, 2023 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥18.92, the stock trades at a trailing P/E ratio of 26.8x. Average trailing P/E is 60x in the IT industry in China. Total returns to shareholders of 16% over the past year. Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: CN¥0.15 (vs CN¥0.19 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.15 (down from CN¥0.19 in 2Q 2022). Revenue: CN¥1.04b (up 13% from 2Q 2022). Net income: CN¥46.6m (down 5.4% from 2Q 2022). Profit margin: 4.5% (down from 5.3% in 2Q 2022). The decrease in margin was driven by higher expenses. Reported Earnings • Apr 28
First quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.12 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.11. Revenue: CN¥838.2m (up 17% from 1Q 2022). Net income: CN¥33.0m (up 15% from 1Q 2022). Profit margin: 3.9% (down from 4.0% in 1Q 2022). The decrease in margin was driven by higher expenses. Board Change • Nov 16
Less than half of directors are independent There are 9 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 9 new directors. 1 experienced director. No highly experienced directors. 3 independent directors (5 non-independent directors). Employee Representative Supervisor Wei He is the most experienced director on the board, commencing their role in 2020. Independent Director Liulin Wu was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 25
Third quarter 2022 earnings released Third quarter 2022 results: EPS: CN¥0.11. Net income: CN¥34.1m (up CN¥34.1m from 3Q 2021). Reported Earnings • Aug 22
Second quarter 2022 earnings released Second quarter 2022 results: EPS: CN¥0.19. Net income: CN¥49.2m (up CN¥49.2m from 2Q 2021). Board Change • May 06
Less than half of directors are independent There are 9 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 9 new directors. No experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Employee Representative Supervisor Wei He is the most experienced director on the board, commencing their role in 2020. Independent Director Liulin Wu was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors.