Baobian Electric (SH600550) Asset-Liability Ratio Analysis Report

Indicator	Value	Evaluation
2024 Asset-Liability Ratio	90.63%	⚠️ Extremely High
5-Year Average Asset-Liability Ratio	87.55%	⚠️ Persistently High
Debt-to-Equity Ratio	1135%	🔴 Excessively High Financial Leverage
Current Ratio	0.89	⚠️ Weak Short-Term Solvency
Net Debt Ratio	27.96%	Relatively Controllable

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Year	Asset-Liability Ratio	Trend
2020	86.58%	Base Year
2021	85.88%	↓ Decreased by 0.7%
2022	84.16%	↓ Decreased by 1.7%
2023	90.52%	↑ Increased by 6.4%
2024	90.63%	→ Flat

: The company’s asset-liability ratio showed a slight downward trend from 2020 to 2022, but surged to a high level above 90% in 2023-2024, showing an overall deteriorating trend of “stable first, then rising”.

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Company/Industry	Asset-Liability Ratio	Evaluation
Baobian Electric	90.63%	🔴 Significantly High
XJ Electric	50.99%	🟢 Reasonable Level
TBEA	56.63%	🟢 Reasonable Level
Industry Average	Approx. 60-65%	Normal Range
Manufacturing Industry Warning Line	70%	⚠️ Risk Threshold

: Baobian Electric’s asset-liability ratio is than the industry average, ranking , and significantly deviating from the reasonable industry range [0].

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1. Adequate Cash Reserves
   : Monetary funds amount to RMB 1.176 billion, which can cover part of short-term debts
2. Relatively Controllable Net Debt Ratio
   : Approximately 28%, indicating that the net debt pressure is manageable after excluding cash

1. Asset-Liability Ratio Far Exceeds Warning Line
   : 90.63% is 20 percentage points higher than the manufacturing industry’s 70% warning line
2. Short-Term Debt Repayment Pressure
   : Current ratio of 0.89 < 1, meaning current assets are insufficient to cover current liabilities
3. Aggressive Financial Strategy
   : Rated as “Aggressive” accounting treatment [0]
4. High Debt Risk
   : Rated as “High Risk” by the system [0]

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:

1. Excessively High Absolute Level
   : The 90.63% asset-liability ratio far exceeds the manufacturing industry’s reasonable range (50-65%) and warning line (70%)
2. Worrying Trend
   : It has continued to rise in the past two years, indicating that the company’s use of financial leverage has become more aggressive
3. Competitive Disadvantage
   : Significantly higher than peer competitors such as NARI Technology (approx. 51%) and TBEA (approx. 57%)
4. Liquidity Pressure
   : Low current ratio leads to pressure in short-term debt repayment

: A high asset-liability ratio means the company faces significant financial pressure and debt risks. Investors should closely monitor the company’s debt repayment plan and capital structure optimization measures, and carefully evaluate investment risks [0].

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[0] Jinling AI Brokerage API Financial Database - Baobian Electric (600550.SS) Financial Statement Analysis

[1] Lianhe Credit Rating - “Summary and Outlook of Credit Risks in the Machinery Manufacturing Industry in H1 2025” (https://pdf.dfcfw.com/pdf/H3_AP202507301718191346_1.pdf)

[2] China Association for Public Companies - “2025 Report on the Development of High-End Manufacturing among Chinese Listed Companies” (https://capcofile.oss-cn-beijing.aliyuncs.com/2025/file/2025.pdf)

[3] National Bureau of Statistics - Profit Data of National Above-Scale Industrial Enterprises from January to February 2024 (http://www.csteelnews.com/xwzx/hydt/202403/t20240328_86427.html)