Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥7.66, the stock trades at a trailing P/E ratio of 70.2x. Average trailing P/E is 64x in the Electronic industry in China. Total loss to shareholders of 10% over the past three years. Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥8.56, the stock trades at a trailing P/E ratio of 78.4x. Average trailing P/E is 74x in the Electronic industry in China. Total returns to shareholders of 2.4% over the past three years. Announcement • Jun 30
Guangdong Zhengye Technology Co.,Ltd. to Report First Half, 2026 Results on Aug 26, 2026 Guangdong Zhengye Technology Co.,Ltd. announced that they will report first half, 2026 results on Aug 26, 2026 New Risk • Jun 15
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 8.8% 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: Minor Risks High level of debt (41% net debt to equity). Share price has been volatile over the past 3 months (8.8% average weekly change). Reported Earnings • Apr 15
Full year 2025 earnings released: EPS: CN¥0.10 (vs CN¥0.61 loss in FY 2024) Full year 2025 results: EPS: CN¥0.10 (up from CN¥0.61 loss in FY 2024). Revenue: CN¥869.2m (up 22% from FY 2024). Net income: CN¥36.8m (up CN¥260.2m from FY 2024). Profit margin: 4.2% (up from net loss in FY 2024). Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Apr 15
Guangdong Zhengye Technology Co.,Ltd., Annual General Meeting, May 07, 2026 Guangdong Zhengye Technology Co.,Ltd., Annual General Meeting, May 07, 2026, at 14:00 China Standard Time. Location: 3F, No. 6, Nanyuan Road, Songshan Lake Park, Dongguan, Guangdong China Announcement • Mar 31
Guangdong Zhengye Technology Co.,Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Guangdong Zhengye Technology Co.,Ltd. announced that they will report Q1, 2026 results on Apr 29, 2026 Announcement • Dec 31
Guangdong Zhengye Technology Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 29, 2026 Guangdong Zhengye Technology Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 29, 2026 Reported Earnings • Oct 25
Third quarter 2025 earnings released: EPS: CN¥0.02 (vs CN¥0.11 loss in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.02 (up from CN¥0.11 loss in 3Q 2024). Revenue: CN¥204.4m (up 27% from 3Q 2024). Net income: CN¥6.79m (up CN¥45.7m from 3Q 2024). Profit margin: 3.3% (up from net loss in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Guangdong Zhengye Technology Co.,Ltd. to Report Q3, 2025 Results on Oct 25, 2025 Guangdong Zhengye Technology Co.,Ltd. announced that they will report Q3, 2025 results on Oct 25, 2025 Reported Earnings • Aug 28
Second quarter 2025 earnings released: EPS: CN¥0.014 (vs CN¥0.17 loss in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.014 (up from CN¥0.17 loss in 2Q 2024). Revenue: CN¥213.5m (up 33% from 2Q 2024). Net income: CN¥6.74m (up CN¥70.6m from 2Q 2024). Profit margin: 3.2% (up from net loss in 2Q 2024). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 38% 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 • Jul 02
Guangdong Zhengye Technology Co.,Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Guangdong Zhengye Technology Co.,Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 New Risk • Jun 20
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 9.8% 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. This is currently the only risk that has been identified for the company. New Risk • May 16
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CN¥178m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 26
First quarter 2025 earnings released: EPS: CN¥0.03 (vs CN¥0.03 loss in 1Q 2024) First quarter 2025 results: EPS: CN¥0.03 (up from CN¥0.03 loss in 1Q 2024). Revenue: CN¥163.1m (down 14% from 1Q 2024). Net income: CN¥9.51m (up CN¥20.8m from 1Q 2024). Profit margin: 5.8% (up from net loss in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Apr 25
Guangdong Zhengye Technology Co.,Ltd., Annual General Meeting, May 16, 2025 Guangdong Zhengye Technology Co.,Ltd., Annual General Meeting, May 16, 2025, at 14:30 China Standard Time. Location: 3F, No. 6, Nanyuan Road, Songshan Lake Park, Dongguan, Guangdong China New Risk • Apr 07
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 7.9% 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 Less than 1 year of cash runway based on free cash flow trend (-CN¥182m free cash flow). Minor Risk Share price has been volatile over the past 3 months (7.9% average weekly change). Announcement • Mar 31
Guangdong Zhengye Technology Co.,Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Guangdong Zhengye Technology Co.,Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Announcement • Dec 31
Guangdong Zhengye Technology Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 18, 2025 Guangdong Zhengye Technology Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 18, 2025 Reported Earnings • Oct 25
Third quarter 2024 earnings released: CN¥0.11 loss per share (vs CN¥0.05 loss in 3Q 2023) Third quarter 2024 results: CN¥0.11 loss per share (further deteriorated from CN¥0.05 loss in 3Q 2023). Revenue: CN¥161.5m (down 40% from 3Q 2023). Net loss: CN¥38.9m (loss widened 113% from 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 47 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Guangdong Zhengye Technology Co.,Ltd. to Report Q3, 2024 Results on Oct 25, 2024 Guangdong Zhengye Technology Co.,Ltd. announced that they will report Q3, 2024 results on Oct 25, 2024 Reported Earnings • Aug 29
Second quarter 2024 earnings released: CN¥0.17 loss per share (vs CN¥0.059 loss in 2Q 2023) Second quarter 2024 results: CN¥0.17 loss per share (further deteriorated from CN¥0.059 loss in 2Q 2023). Revenue: CN¥160.3m (down 31% from 2Q 2023). Net loss: CN¥63.9m (loss widened 192% from 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 29% per year, which means it has not declined as severely as earnings. Announcement • Jun 29
Guangdong Zhengye Technology Co.,Ltd. to Report First Half, 2024 Results on Aug 29, 2024 Guangdong Zhengye Technology Co.,Ltd. announced that they will report first half, 2024 results on Aug 29, 2024 Announcement • Apr 28
Guangdong Zhengye Technology Co., Ltd., Annual General Meeting, May 17, 2024 Guangdong Zhengye Technology Co., Ltd., Annual General Meeting, May 17, 2024, at 14:00 China Standard Time. Location: 3F, No. 6, Nanyuan Road, Songshan Lake Park, Dongguan, Guangdong China Agenda: To consider the 2023 work report of the board of directors; to 2023 work report of the supervisory committee; to 2023 annual accounts report; to 2023 annual report and its summary; to 2023 profit distribution plan; to 2024 application for comprehensive credit line; to 2024 estimated external guarantee quota; to Reappointment of audit firm; to Unrecovered losses exceed one third of the paid-in capital; to Full authorization to the board to handle matters regarding the share offering to specific parties via a simplified procedure. Reported Earnings • Apr 26
First quarter 2024 earnings released: CN¥0.03 loss per share (vs CN¥0.08 loss in 1Q 2023) First quarter 2024 results: CN¥0.03 loss per share (improved from CN¥0.08 loss in 1Q 2023). Revenue: CN¥189.2m (up 24% from 1Q 2023). Net loss: CN¥11.3m (loss narrowed 64% from 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Mar 30
Guangdong Zhengye Technology Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Guangdong Zhengye Technology Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 New Risk • Feb 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 7.4% 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. This is currently the only risk that has been identified for the company. Announcement • Dec 29
Guangdong Zhengye Technology Co., Ltd. to Report Fiscal Year 2023 Results on Apr 26, 2024 Guangdong Zhengye Technology Co., Ltd. announced that they will report fiscal year 2023 results on Apr 26, 2024 Board Change • Dec 22
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. Supervisor Haitao Wang is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. New Risk • Jul 21
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 Earnings have declined by 9.3% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (7.6% average weekly change). Reported Earnings • Apr 28
First quarter 2023 earnings released: CN¥0.08 loss per share (vs CN¥0.02 profit in 1Q 2022) First quarter 2023 results: CN¥0.08 loss per share (down from CN¥0.02 profit in 1Q 2022). Revenue: CN¥152.5m (down 44% from 1Q 2022). Net loss: CN¥31.0m (down 475% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.039 (vs CN¥0.038 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.039. Revenue: CN¥285.2m (down 20% from 3Q 2021). Net income: CN¥14.2m (flat on 3Q 2021). Profit margin: 5.0% (up from 4.0% in 3Q 2021). Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.095 (vs CN¥0.079 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.095 (up from CN¥0.079 in 2Q 2021). Revenue: CN¥369.1m (flat on 2Q 2021). Net income: CN¥34.2m (up 16% from 2Q 2021). Profit margin: 9.3% (up from 8.0% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 27
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.36 (up from CN¥0.83 loss in FY 2020). Revenue: CN¥1.46b (up 22% from FY 2020). Net income: CN¥129.8m (up CN¥442.9m from FY 2020). Profit margin: 8.9% (up from net loss in FY 2020). Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 8.7%. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Apr 24
Guangdong Zhengye Technology Co., Ltd., Annual General Meeting, May 12, 2022 Guangdong Zhengye Technology Co., Ltd., Annual General Meeting, May 12, 2022, at 14:00 China Standard Time. Agenda: To consider 2021 work report of the board of directors; to consider 2021 work report of the supervisory committee; to consider 2021 annual accounts; to consider 2021 annual report and its summary; to consider 2021 profit distribution plan; to consider 2022 application for comprehensive credit line; to consider 2022 estimated external guarantee quota of the Company; to consider reappointment of audit firm; and to consider other matters. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.038 (vs CN¥0.015 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥354.2m (up 15% from 3Q 2020). Net income: CN¥14.3m (up CN¥19.8m from 3Q 2020). Profit margin: 4.0% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.079 (vs CN¥0.07 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥369.8m (up 1.2% from 2Q 2020). Net income: CN¥29.5m (up 6.3% from 2Q 2020). Profit margin: 8.0% (up from 7.6% in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 30
First quarter 2021 earnings released: EPS CN¥0.34 (vs CN¥0.06 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥411.9m (up 42% from 1Q 2020). Net income: CN¥128.6m (up 485% from 1Q 2020). Profit margin: 31% (up from 7.6% in 1Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Feb 01
New 90-day low: CN¥5.70 The company is down 48% from its price of CN¥10.97 on 03 November 2020. The Chinese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 1.0% over the same period. Is New 90 Day High Low • Jan 07
New 90-day low: CN¥6.78 The company is down 23% from its price of CN¥8.85 on 09 October 2020. The Chinese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 7.0% over the same period. Is New 90 Day High Low • Dec 11
New 90-day low: CN¥8.28 The company is down 7.0% from its price of CN¥8.87 on 11 September 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 3.0% over the same period. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total losses of CN¥933.6m, with losses widening by CN¥830.4m from the prior year. Total revenue was CN¥1.10b over the last 12 months, down 14% from the prior year. Is New 90 Day High Low • Oct 29
New 90-day high: CN¥11.72 The company is up 63% from its price of CN¥7.19 on 31 July 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 2.0% over the same period. 
