New Risk • May 12
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 8.3% 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 Risks Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Earnings have declined by 42% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.3% average weekly change). Reported Earnings • Apr 29
First quarter 2026 earnings released: EPS: CN¥0.07 (vs CN¥0.13 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.07 (down from CN¥0.13 in 1Q 2025). Revenue: CN¥415.5m (up 24% from 1Q 2025). Net income: CN¥5.44m (down 42% from 1Q 2025). Profit margin: 1.3% (down from 2.8% in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. New Risk • Apr 28
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: 0.2% Last year net profit margin: 2.1% 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 42% per year over the past 5 years. Minor Risks High level of debt (66% net debt to equity). Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Announcement • Apr 28
Suncha Technology Co., Ltd., Annual General Meeting, May 21, 2026 Suncha Technology Co., Ltd., Annual General Meeting, May 21, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Hangzhou, Zhejiang China Announcement • Mar 31
Suncha Technology Co., Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Suncha Technology Co., Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 Announcement • Dec 31
Suncha Technology Co., Ltd. to Report Fiscal Year 2025 Results on Apr 17, 2026 Suncha Technology Co., Ltd. announced that they will report fiscal year 2025 results on Apr 17, 2026 Valuation Update With 7 Day Price Move • Dec 11
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥25.29, the stock trades at a trailing P/E ratio of 79x. Average trailing P/E is 31x in the Consumer Durables industry in China. Total returns to shareholders of 11% over the past three years. New Risk • Dec 05
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 Risks Interest payments are not well covered by earnings (2.6x net interest cover). Earnings have declined by 42% per year over the past 5 years. 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). Large one-off items impacting financial results. Reported Earnings • Oct 31
Third quarter 2025 earnings released: CN¥0.023 loss per share (vs CN¥0.011 profit in 3Q 2024) Third quarter 2025 results: CN¥0.023 loss per share (down from CN¥0.011 profit in 3Q 2024). Revenue: CN¥393.3m (up 23% from 3Q 2024). Net loss: CN¥1.91m (down 337% from profit in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Sep 30
Suncha Technology Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Suncha Technology Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Reported Earnings • Aug 24
Second quarter 2025 earnings released: EPS: CN¥0.014 (vs CN¥0.038 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.014 (down from CN¥0.038 in 2Q 2024). Revenue: CN¥356.1m (up 18% from 2Q 2024). Net income: CN¥1.05m (down 60% from 2Q 2024). Profit margin: 0.3% (down from 0.9% in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 3% per year and the company’s share price has also increased by 3% per year. Announcement • Jul 02
Suncha Technology Co., Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Suncha Technology Co., Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 New Risk • May 13
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: 0.9% 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 Risks Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Earnings have declined by 53% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Apr 25
First quarter 2025 earnings released: EPS: CN¥0.13 (vs CN¥0.15 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.13 (down from CN¥0.15 in 1Q 2024). Revenue: CN¥333.9m (up 9.4% from 1Q 2024). Net income: CN¥9.30m (down 13% from 1Q 2024). Profit margin: 2.8% (down from 3.5% in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Apr 25
Suncha Technology Co., Ltd., Annual General Meeting, May 21, 2025 Suncha Technology Co., Ltd., Annual General Meeting, May 21, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Hangzhou, Zhejiang China Announcement • Mar 31
Suncha Technology Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Suncha Technology Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Board Change • Jan 18
Less than half of directors are independent There are 5 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: 3 independent directors. 5 non-independent directors. Independent Director Xiongwei Xu was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. New Risk • Jan 12
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. This is currently the only risk that has been identified for the company. Announcement • Dec 31
Suncha Technology Co., Ltd. to Report Fiscal Year 2024 Results on Apr 25, 2025 Suncha Technology Co., Ltd. announced that they will report fiscal year 2024 results on Apr 25, 2025 Valuation Update With 7 Day Price Move • Oct 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥19.17, the stock trades at a trailing P/E ratio of 78.9x. Average trailing P/E is 20x in the Consumer Durables industry in China. Total loss to shareholders of 27% over the past three years. New Risk • Oct 16
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 0.2% 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 (0.2% operating cash flow to total debt). Earnings have declined by 61% per year over the past 5 years. High level of non-cash earnings (21% accrual ratio). Announcement • Sep 30
Suncha Technology Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Suncha Technology Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 New Risk • Aug 24
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended June 2023. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. This is currently the only risk that has been identified for the company. Announcement • Jun 29
Suncha Technology Co., Ltd. to Report First Half, 2024 Results on Aug 23, 2024 Suncha Technology Co., Ltd. announced that they will report first half, 2024 results on Aug 23, 2024 Announcement • Jun 08
Suncha Technology Co., Ltd., Annual General Meeting, Jun 27, 2024 Suncha Technology Co., Ltd., Annual General Meeting, Jun 27, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Hangzhou, Zhejiang China Announcement • Mar 30
Suncha Technology Co., Ltd. to Report Q1, 2024 Results on Apr 27, 2024 Suncha Technology Co., Ltd. announced that they will report Q1, 2024 results on Apr 27, 2024 New Risk • Mar 11
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 37% per year over the past 5 years. Minor Risk Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Announcement • Dec 29
Suncha Technology Co., Ltd. to Report Fiscal Year 2023 Results on Apr 26, 2024 Suncha Technology Co., Ltd. announced that they will report fiscal year 2023 results on Apr 26, 2024 Announcement • Oct 21
Suncha Technology Co., Ltd Approves Board Elections Suncha Technology Co., Ltd. at its EGM held on October 19, 2023 approved election of Wan Lixiang, Xu Xiongwei and Shen Xueming as independent directors and Tao Yadan as non-employee supervisors. Announcement • Sep 30
Suncha Technology Co., Ltd. to Report Q3, 2023 Results on Oct 27, 2023 Suncha Technology Co., Ltd. announced that they will report Q3, 2023 results on Oct 27, 2023 New Risk • Jul 14
New major risk - Revenue and earnings growth Earnings have declined by 2.6% 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 Risk Earnings have declined by 2.6% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Announcement • Jul 01
Suncha Technology Co., Ltd. to Report First Half, 2023 Results on Aug 25, 2023 Suncha Technology Co., Ltd. announced that they will report first half, 2023 results on Aug 25, 2023 Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. No independent directors (5 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Aug 10
Suncha Technology Co., Ltd. Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2021, Payable on 15 August 2022 Suncha Technology Co., Ltd. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 5.00000000 for the year 2021, payable on 15 August 2022. Record date: 12 August 2022. Ex-date: 15 August 2022. Announcement • Jun 17
Suncha Technology Co., Ltd. Approves Dividend for 2021 Suncha Technology Co., Ltd. approved cash dividend (tax included) of CNY 5.0 per 10 shares for 2021, at its AGM held on June 15, 2022. Announcement • May 28
Suncha Technology Co., Ltd., Annual General Meeting, Jun 15, 2022 Suncha Technology Co., Ltd., Annual General Meeting, Jun 15, 2022, at 14:00 China Standard Time. Agenda: To consider and approve 2021 annual report and its summary; to consider amendments to the articles of association and handling the industrial and commercial registration amendment; and to consider other matters.