Jinling Sports(SZ:300651) Zheng Quan Zhi Xing·2025-06-20 04:57Core Viewpoint - Jiangsu Jinling Sports Equipment Co., Ltd. maintains a stable credit rating of A+ for its main entity and its convertible bonds, despite a significant decline in operating performance due to reduced demand in the sports equipment sector [1][3][4]. Company Overview - The company specializes in the research, development, production, and sales of sports equipment and venue facilities, as well as sports event services, maintaining strong competitiveness in the domestic market [4][11]. - As of the end of 2024, the company reported total assets of 13.01 billion yuan and equity of 8.38 billion yuan [11]. Financial Performance - In 2024, the company experienced a 27.30% decline in total revenue, amounting to 3.74 billion yuan, and a 58.30% drop in total profit, resulting in a profit of 0.30 billion yuan [5][11]. - The net cash flow from operating activities decreased by 72.77% in 2024, indicating significant cash flow challenges [5]. - By the first quarter of 2025, the company reported a total revenue of 0.52 billion yuan but incurred a loss of 0.02 billion yuan [11]. Debt and Liquidity - The company maintains a low debt burden, with a debt-to-asset ratio of 34.30% as of March 2025, and cash assets amounting to 4.93 billion yuan, which is 1.99 times its total debt [5][11]. - The company has a substantial unused credit line, indicating strong liquidity [4][5]. Market Environment - The sports equipment industry faces challenges such as a slowdown in domestic sports venue construction and reduced demand from key clients like schools and government entities due to macroeconomic adjustments [14][16]. - The industry is characterized by intense competition, particularly in the mid-to-low-end market, while high-end products see less competition due to stringent certification requirements [15][16]. Future Outlook - The company plans to enhance its technological research and market expansion efforts, aiming to maintain its domestic market share while exploring international markets [4][5]. - Potential factors for rating upgrades include increased demand for sports equipment and improved brand recognition [4][5].