Loss-making Fujian Furi ElectronicsLtd (SHSE:600203) has seen earnings and shareholder returns follow the same downward trajectory over past -11%

Fujian Furi Electronics Co.,Ltd (SHSE:600203) shareholders should be happy to see the share price up 27% in the last month. It's not great that the stock is down over the last three years. But that's not so bad when you consider its market is down 26%.

On a more encouraging note the company has added CN¥771m to its market cap in just the last 7 days, so let's see if we can determine what's driven the three-year loss for shareholders.

Check out our latest analysis for Fujian Furi ElectronicsLtd

Fujian Furi ElectronicsLtd isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last three years, Fujian Furi ElectronicsLtd's revenue dropped 18% per year. That's definitely a weaker result than most pre-profit companies report. Revenue is dropping off fast, and so too is revenue, which is down 4% per year in that time. A modest loss is often easily justified when a company is growing revenues. But otherwise it can be hard to stomach.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that Fujian Furi ElectronicsLtd shareholders have received a total shareholder return of 9.3% over one year. That's better than the annualised return of 1.9% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Fujian Furi ElectronicsLtd you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Chinese exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.