Core Viewpoint - Feima International (002210) has faced significant operational challenges and declining revenue since its restructuring, raising concerns among investors about its future prospects and valuation [2][3][5]. Group 1: Financial Performance - Feima International's revenue plummeted by 99.24% from 410.5 billion to 3.14 billion in 2019, struggling to maintain revenue between 2-3 billion over the past six years [3]. - The company's net profit has shown extreme volatility, with figures of 0.9 million, 0.2 million, and 0.3 million in recent years, reflecting changes of 1697.45%, -81.45%, and 72.82% respectively [3]. - As of 2024, the company reported cash reserves of 1.06 million and a debt-to-asset ratio of 72.8%, with total debt at 3.23 million, all of which is short-term [3][4]. Group 2: Operational Challenges - The company's original project in Yuanping has effectively stalled due to funding shortages, with reports of construction sites being abandoned and contractors withdrawing due to unpaid bills [4]. - Feima International's attempts to pivot towards the environmental and supply chain sectors have not yielded significant results, with low gross margins and high accounts receivable posing risks [3][5]. Group 3: Shareholder Concerns - The major shareholder's promises of asset injections and performance compensation have not materialized, with the company failing to meet its profit commitments of 5.7 million for 2022-2024, resulting in a shortfall of 4.37 million [5][6]. - Despite the lack of asset injections over three years, the company has relied on previous debt write-offs and investor compensation to slightly improve its net assets [6]. Group 4: Market Valuation Issues - Feima International's rolling P/E ratio stands at 309.99, significantly higher than the industry average of 48.69, indicating a potential overvaluation [7]. - The company's market capitalization has remained between 6-10 billion, which is inconsistent with its financial performance and the reasonable valuation range of 1-2 billion for its industry peers [7][8].

Core Viewpoint - The company, Feima International, has failed to achieve its operational turnaround despite four years of restructuring, leading to continuous revenue decline and operational challenges, raising concerns about its high market valuation [1][2][5]. Group 1: Revenue and Financial Performance - Feima International's revenue plummeted by 99.24% in 2019, from 41.05 billion to 314 million, and has struggled to maintain revenue between 200 million to 300 million for the past six years [2]. - The company's net profit for the last three annual reports was 90 million, 20 million, and 30 million, showing extreme fluctuations of 1697.45%, -81.45%, and 72.82% respectively [2]. - The company has a cash balance of 10.6 million and a debt ratio of 72.8%, with total debt at 32.3 million, all of which is short-term debt [2]. Group 2: Transformation and Business Challenges - Feima International's attempt to pivot towards the environmental industry and supply chain has not yielded significant results, facing fierce competition and insufficient technical reserves [2]. - The environmental segment's gross margin is significantly lower than peers, and the high proportion of accounts receivable poses a bad debt risk [2]. Group 3: Project and Credit Issues - The company's original Ping project, with a planned investment of 400 million, has effectively stalled due to funding shortages, leading to construction abandonment [3][4]. - The credit crisis has worsened as multiple financial institutions have downgraded the company's ratings due to the stalled project [4]. Group 4: Shareholder Commitments and Market Valuation - The major shareholder's commitment to asset injection and performance compensation has not materialized, with the company failing to meet the promised net profit targets [5][6]. - Despite the poor fundamentals, Feima International's rolling P/E ratio stands at 309.99, significantly higher than the industry average of 48.69, indicating a distorted market valuation [7]. - The company's market capitalization remains artificially inflated between 6 billion to 10 billion, contrasting sharply with the reasonable valuation range of 1 billion to 2 billion for its peers [7][8].