New Risk • May 06
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¥6.0b 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. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CN¥6.0b free cash flow). Earnings have declined by 84% per year over the past 5 years. Reported Earnings • Apr 30
Full year 2025 earnings released: CN¥2.25 loss per share (vs CN¥0.097 profit in FY 2024) Full year 2025 results: CN¥2.25 loss per share (down from CN¥0.097 profit in FY 2024). Revenue: CN¥10.4b (up 23% from FY 2024). Net loss: CN¥3.39b (down CN¥3.53b from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 127 percentage points per year, which is a significant difference in performance. Duyuru • Mar 30
CSSC Science& Technology Co., Ltd to Report Q1, 2026 Results on Apr 30, 2026 CSSC Science& Technology Co., Ltd announced that they will report Q1, 2026 results on Apr 30, 2026 Duyuru • Dec 26
CSSC Science& Technology Co., Ltd to Report Fiscal Year 2025 Results on Apr 30, 2026 CSSC Science& Technology Co., Ltd announced that they will report fiscal year 2025 results on Apr 30, 2026 Duyuru • Sep 30
CSSC Science& Technology Co., Ltd to Report Q3, 2025 Results on Oct 31, 2025 CSSC Science& Technology Co., Ltd announced that they will report Q3, 2025 results on Oct 31, 2025 Duyuru • Jun 30
CSSC Science& Technology Co., Ltd to Report First Half, 2025 Results on Aug 30, 2025 CSSC Science& Technology Co., Ltd announced that they will report first half, 2025 results on Aug 30, 2025 New Risk • May 17
New major risk - Revenue and earnings growth Earnings have declined by 4.2% 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 Debt is not well covered by operating cash flow (7.0% operating cash flow to total debt). Earnings have declined by 4.2% per year over the past 5 years. Duyuru • Apr 30
CSSC Science& Technology Co., Ltd, Annual General Meeting, Jun 06, 2025 CSSC Science& Technology Co., Ltd, Annual General Meeting, Jun 06, 2025, at 14:00 China Standard Time. Location: 4F, No. 600, Luban Road, Huangpu District, Shanghai China Duyuru • Mar 28
CSSC Science& Technology Co., Ltd to Report Q1, 2025 Results on Apr 30, 2025 CSSC Science& Technology Co., Ltd announced that they will report Q1, 2025 results on Apr 30, 2025 Duyuru • Dec 27
CSSC Science& Technology Co., Ltd to Report Fiscal Year 2024 Results on Apr 30, 2025 CSSC Science& Technology Co., Ltd announced that they will report fiscal year 2024 results on Apr 30, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.007 (vs CN¥0.027 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.007 (down from CN¥0.027 in 3Q 2023). Revenue: CN¥2.18b (down 65% from 3Q 2023). Net income: CN¥11.1m (down 87% from 3Q 2023). Profit margin: 0.5% (down from 1.3% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 41% 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. Duyuru • Sep 30
CSSC Science& Technology Co., Ltd to Report Q3, 2024 Results on Oct 31, 2024 CSSC Science& Technology Co., Ltd announced that they will report Q3, 2024 results on Oct 31, 2024 New Risk • Sep 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 6.7% 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 (currently running at an operating cash loss). High level of non-cash earnings (79% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Profit margins are more than 30% lower than last year (0.7% net profit margin). Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.011 (vs CN¥0.047 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.011 (down from CN¥0.047 in 2Q 2023). Revenue: CN¥2.08b (up 81% from 2Q 2023). Net income: CN¥16.1m (down 52% from 2Q 2023). Profit margin: 0.8% (down from 2.9% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Duyuru • Jun 28
CSSC Science& Technology Co., Ltd to Report First Half, 2024 Results on Aug 31, 2024 CSSC Science& Technology Co., Ltd announced that they will report first half, 2024 results on Aug 31, 2024 Duyuru • Jun 06
CSSC Science& Technology Co., Ltd, Annual General Meeting, Jun 25, 2024 CSSC Science& Technology Co., Ltd, Annual General Meeting, Jun 25, 2024, at 14:30 China Standard Time. Location: 4F, No. 600, Luban Road, Huangpu District, Shanghai China Reported Earnings • May 04
First quarter 2024 earnings released: CN¥0.065 loss per share (vs CN¥0.025 loss in 1Q 2023) First quarter 2024 results: CN¥0.065 loss per share (further deteriorated from CN¥0.025 loss in 1Q 2023). Revenue: CN¥805.8m (down 75% from 1Q 2023). Net loss: CN¥97.8m (loss widened 155% from 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Duyuru • Mar 30
CSSC Science& Technology Co., Ltd to Report Q1, 2024 Results on Apr 30, 2024 CSSC Science& Technology Co., Ltd announced that they will report Q1, 2024 results on Apr 30, 2024 New Risk • Jan 22
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 6.0% 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 (currently running at an operating cash loss). High level of non-cash earnings (29% accrual ratio). Shareholders have been substantially diluted in the past year (105% increase in shares outstanding). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (6.0% average weekly change). Profit margins are more than 30% lower than last year (-0.3% net profit margin). Duyuru • Dec 30
CSSC Science& Technology Co., Ltd to Report Fiscal Year 2023 Results on Apr 27, 2024 CSSC Science& Technology Co., Ltd announced that they will report fiscal year 2023 results on Apr 27, 2024 New Risk • Nov 06
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: -0.3% Last year net profit margin: 1.8% 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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (29% accrual ratio). Shareholders have been substantially diluted in the past year (105% increase in shares outstanding). Revenue is less than US$1m. Minor Risk Profit margins are more than 30% lower than last year (-0.3% net profit margin). Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.027 (vs CN¥0.023 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.027 (up from CN¥0.023 in 3Q 2022). Revenue: CN¥6.23b (up CN¥5.42b from 3Q 2022). Net income: CN¥83.7m (up 397% from 3Q 2022). Profit margin: 1.3% (down from 2.1% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 33% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Construction industry in China. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. New Risk • Nov 01
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). High level of non-cash earnings (62% accrual ratio). Shareholders have been substantially diluted in the past year (105% increase in shares outstanding). New Risk • Sep 08
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (105% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Large one-off items impacting financial results. Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: CN¥0.047 (vs CN¥0.057 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.047 (down from CN¥0.057 in 2Q 2022). Revenue: CN¥1.15b (up 22% from 2Q 2022). Net income: CN¥33.6m (down 15% from 2Q 2022). Profit margin: 2.9% (down from 4.2% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 43% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Construction industry in China. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. New Risk • Aug 29
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 105% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (105% increase in shares outstanding). Minor Risk Share price has been volatile over the past 3 months (7.3% average weekly change). Duyuru • Jun 27
CSSC Science& Technology Co., Ltd announced that it has received CNY 3 billion in funding from CSIC Haizhuang Windpower CO., LTD, CSSC Group Wind Power Development Co., Ltd, Luoyang Sunrui Wind Turbine Blade Co., Ltd., CSIC Haiwei (Xinjiang) New Energy Co., Ltd., CSIC (Wuhan) Lingjiu Electronic Co., Ltd. On June 25, 2023, CSSC Science& Technology Co., Ltd closed the transaction. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 3 non-independent directors. Chairman of the Supervisory Board Liang Shen was the last director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.023 (vs CN¥0.012 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.023 (up from CN¥0.012 in 3Q 2021). Revenue: CN¥809.1m (flat on 3Q 2021). Net income: CN¥16.8m (up 96% from 3Q 2021). Profit margin: 2.1% (up from 1.1% in 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 5% per year. Duyuru • Oct 11
CSSC Science& Technology Co., Ltd (SHSE:600072) entered into an agreement to acquire Five Companies in China for CNY 8.6 billion. CSSC Science& Technology Co., Ltd (SHSE:600072) entered into an agreement to acquire Five Companies in China for CNY 8.6 billion on September 30, 2022. CSIC Haizhuang Windpower Co., Ltd will acquire 100% stake in CSIC Haizhuang Windpower Co., Ltd., 88.58% stake in CSSC Group Wind Power Development Co., Ltd., 100% stake in CSIC Haiwei (Xinjiang) New Energy Co., Ltd., 44.64% stake in Luoyang Sunrui Wind Turbine Blade Co., Ltd., and 10% stake in CSIC (Wuhan) Lingjiu Electronic Co., Ltd. The CSSC Science will raise supporting funds of not more than CNY 3 billion. The transaction has been approved by board of CSSC Science& Technology Co., Ltd. Reported Earnings • Sep 02
Second quarter 2022 earnings released: EPS: CN¥0.057 (vs CN¥0.10 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.057 (down from CN¥0.10 in 2Q 2021). Revenue: CN¥943.9m (up 47% from 2Q 2021). Net income: CN¥39.4m (down 45% from 2Q 2021). Profit margin: 4.2% (down from 11% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 9% per year, which means it is performing significantly worse than earnings. Duyuru • Jun 21
CSSC Science &Technology Co., Ltd(XSSC:600072) dropped from S&P Global BMI Index CSSC Science &Technology Co., Ltd(XSSC:600072) dropped from S&P Global BMI Index Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. 1 highly experienced director. 3 independent directors (5 non-independent directors). Independent Director Jian Xu was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Jan 18
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥16.96, the stock trades at a trailing P/E ratio of 58.6x. Average trailing P/E is 22x in the Construction industry in China. Total returns to shareholders of 129% over the past three years. Board Change • Jan 13
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 10 experienced directors. 1 highly experienced director. 3 independent directors (5 non-independent directors). Independent Director Jian Xu was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.012 (vs CN¥0.015 in 3Q 2020) The company reported a mediocre third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥815.2m (up 76% from 3Q 2020). Net income: CN¥8.60m (down 19% from 3Q 2020). Profit margin: 1.1% (down from 2.3% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥12.68, the stock trades at a trailing P/E ratio of 43.4x. Average trailing P/E is 17x in the Construction industry in China. Total returns to shareholders of 53% over the past three years. Reported Earnings • Aug 29
Second quarter 2021 earnings released: EPS CN¥0.10 (vs CN¥0.003 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥641.6m (up 44% from 2Q 2020). Net income: CN¥71.9m (up CN¥74.1m from 2Q 2020). Profit margin: 11% (up from net loss in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 04
First quarter 2021 earnings released: EPS CN¥0.005 (vs CN¥0.008 in 1Q 2020) The company reported a decent first quarter result with improved revenues, although earnings and profit margins were weaker. First quarter 2021 results: Revenue: CN¥465.6m (up 159% from 1Q 2020). Net income: CN¥3.84m (down 37% from 1Q 2020). Profit margin: 0.8% (down from 3.4% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 18
Full year 2020 earnings released: EPS CN¥0.20 (vs CN¥0.19 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: CN¥1.87b (down 44% from FY 2019). Net income: CN¥143.5m (up 4.1% from FY 2019). Profit margin: 7.7% (up from 4.1% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 03
New 90-day low: CN¥11.00 The company is down 8.0% from its price of CN¥12.02 on 05 November 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Construction industry, which is also down 8.0% over the same period. Is New 90 Day High Low • Jan 12
New 90-day high: CN¥14.72 The company is up 10.0% from its price of CN¥13.39 on 14 October 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is down 10.0% over the same period. Is New 90 Day High Low • Dec 23
New 90-day high: CN¥13.92 The company is up 8.0% from its price of CN¥12.88 on 24 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Construction industry, which is down 7.0% over the same period. Duyuru • Oct 30
CSSC Science & Technology Co., Ltd. to Report Q3, 2020 Results on Oct 31, 2020 CSSC Science & Technology Co., Ltd. announced that they will report Q3, 2020 results on Oct 31, 2020 Is New 90 Day High Low • Oct 29
New 90-day low: CN¥12.51 The company is down 10.0% from its price of CN¥13.86 on 31 July 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is down 3.0% over the same period. Reported Earnings • Oct 21
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥91.5m, down 26% from the prior year. Total revenue was CN¥2.46b over the last 12 months, down 17% from the prior year. Duyuru • Jul 18
CSSC Science & Technology Co., Ltd. to Report First Half, 2020 Results on Aug 29, 2020 CSSC Science & Technology Co., Ltd. announced that they will report first half, 2020 results on Aug 29, 2020