Company DescriptionChina Youzan Limited, an investment holding company, provides online and offline e-commerce solutions in the People's Republic of China, Japan, and Canada. The company operates through five segments: General Trading, Third Party Payment Services, Onecomm, Merchant Services, and Others. It trades in watches and other good; sells integrated smart point of sales devices; and offers third party payment and related consultancy services, as well as third party payment management services. The company also offers an e-commerce platform with a variety of Software as a Service products and comprehensive services. In addition, it provides information system maintenance and development services; catering services; management services; wholesale and retail internet information services; restaurant management and retail solutions; and factoring and guarantee services, as well as operation services for merchants and retail solutions for beauty industries. The company was formerly known as China Innovationpay Group Limited and changed its name to China Youzan Limited in May 2018. China Youzan Limited was incorporated in 1999 and is based in Wanchai, Hong Kong.

How the Company Makes Money

China Youzan Financial Statement Overview

Summary

China Youzan faces profitability challenges with negative EBIT and net margins and a revenue decline. However, the gross profit margin remains strong, and there is positive free cash flow improvement. The balance sheet shows manageable debt but negative return on equity due to net losses.

Income Statement

Neutral

China Youzan's income statement reveals challenges with profitability, as indicated by negative EBIT and net margins. The company experienced a revenue decline in the latest year, showing a negative growth trend from 2023 to 2024. Gross profit margin remains relatively strong, suggesting effective cost control at the gross level, but overall profitability is hindered by higher operational expenses.

Balance Sheet

Neutral

The balance sheet shows a moderate financial position with a debt-to-equity ratio that is manageable, highlighting cautious leverage use. However, the equity ratio has decreased over the years, indicating a potential risk if liabilities continue to rise. Return on equity is negative due to net losses, impacting shareholder value negatively.

Cash Flow

Neutral

Cash flow analysis indicates positive free cash flow in 2024, showing improvement from previous periods. Operating cash flow remains positive, suggesting operational efficiency, but the free cash flow to net income ratio is distorted by net losses, reflecting challenges in translating profits into cash.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.53B	1.59B	1.50B	1.57B	1.82B
	Gross Profit
1.05B	1.11B	961.92M	952.26M	1.08B
	EBIT
-141.18M	-21.32M	-558.30M	-3.25B	-563.24M
	EBITDA
-176.31M	78.04M	-339.37M	-3.36B	-101.82M
	Net Income Common Stockholders
-187.94M	7.43M	-303.09M	-2.51B	-294.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
945.77M	925.00M	885.46M	710.68M	1.73B
	Total Assets
6.29B	5.94B	6.56B	6.87B	12.21B
	Total Debt
438.22M	551.17M	574.90M	273.65M	242.26M
	Net Debt
-507.55M	-373.82M	-310.56M	-437.03M	-1.48B
	Total Liabilities
5.15B	4.83B	5.51B	5.54B	7.58B
	Stockholders Equity
1.08B	1.12B	1.41B	1.35B	3.86B
Cash Flow		Free Cash Flow
70.94M	76.49M	-557.09M	-721.29M	120.19M
	Operating Cash Flow
72.40M	77.00M	-554.13M	-691.69M	144.43M
	Investing Cash Flow
430.00K	2.29M	28.82M	-320.75M	-74.15M
	Financing Cash Flow
-110.97M	-51.14M	692.03M	-11.96M	1.03B

China Youzan Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHNVF		$372.33M	―	-16.87%	―	―	―
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
WEMXF		$803.62M	―	-77.88%	―	―	―
51N		€1.01B	13.69	8.12%	2.85%	―	―
1588	65 Neutral	HK$2.18B	59.14	3.79%	―	17.66%	97.73%
0909	47 Neutral	HK$5.09B	―	-3.94%	3.50%	-14.05%	68.56%
1782	43 Neutral	HK$2.97B	―	-36.81%	―	-14.38%	-56.66%

* Technology Sector Average

Performance Comparison

CHNVF

China Youzan

0.01

0.00

0.00%

WEMXF

Weimob

0.29

0.10

52.63%

DE:51N

AsiaInfo Technologies Limited

1.05

0.32

43.84%

HK:0909

Ming Yuan Cloud Group Holdings Limited

2.72

0.50

22.52%

HK:1588

Chanjet Information Technology Co., Ltd. Class H

6.70

3.14

88.20%

HK:1782

Vixtel Technologies Holdings Ltd.

3.85

-0.61

-13.68%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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