The company's profitability has collapsed, with gross margins deteriorating from 26.1% in 2021Q1 to a negative 4.8% in 2023Q4.
| Sales/Revenue | 413.15M | 70.18M | 248.83M | 440.54M | 505.72M | 467.12M | 382.83M | 357.79M | 257.68M | 173.25M | 86.57M | 29.61M |
| Revenue Growth % | - | -71.8% | -43.52% | -12.89% | 8.26% | 22.02% | 7% | 38.85% | 48.74% | 100.11% | 192.41% | - |
| Cost of Goods Sold | 332.74M | 57.76M | 201.99M | 424.35M | 511.27M | 364.27M | 260.74M | 227.2M | 148.14M | 115.66M | 37.28M | 11.58M |
| COGS % of Revenue | - | 82.3% | 81.18% | 96.32% | 101.1% | 77.98% | 68.11% | 63.5% | 57.49% | 66.76% | 43.06% | 39.12% |
| Gross Profit | 80.41M | 12.42M | 46.84M | 16.19M | -5.54M | 102.85M | 122.09M | 130.6M | 109.55M | 57.59M | 49.29M | 18.02M |
| Gross Margin % | 19.46% | 17.7% | 18.82% | 3.68% | -1.1% | 22.02% | 31.89% | 36.5% | 42.51% | 33.24% | 56.94% | 60.88% |
| Gross Profit Growth % | - | -73.49% | 189.3% | 392.2% | -105.39% | -15.76% | -6.51% | 19.22% | 90.22% | 16.84% | 173.47% | - |
| Operating Expenses | 176.18M | 29.35M | 67.22M | 398.95M | 201.91M | 52.72M | 44.12M | 54.36M | 52.49M | 35.64M | 21.68M | 9.14M |
| OpEx % of Revenue | - | 41.81% | 27.01% | 90.56% | 39.92% | 11.29% | 11.53% | 15.19% | 20.37% | 20.57% | 25.04% | 30.88% |
| Selling, General & Admin | 33.65M | 26.14M | 61.45M | 29.78M | 60.3M | 26.7M | 29.39M | 37.5M | 41.87M | 30.57M | 18.51M | 8.64M |
| SG&A % of Revenue | - | 37.24% | 24.69% | 6.76% | 11.92% | 5.72% | 7.68% | 10.48% | 16.25% | 17.65% | 21.38% | 29.2% |
| Research & Development | 12.89M | 3.22M | 5.77M | 11.76M | 15.57M | 26.01M | 14.73M | 16.86M | 10.62M | 5.06M | 3.13M | 453.16K |
| R&D % of Revenue | - | 4.59% | 2.32% | 2.67% | 3.08% | 5.57% | 3.85% | 4.71% | 4.12% | 2.92% | 3.62% | 1.53% |
| Other Operating Expenses | 1M | -12.44K | 0 | 357.42M | 126.03M | 0 | 0 | 0 | 0 | 8.76K | 39.76K | 44.38K |
| Operating Income | 33.87M | -16.94M | -20.38M | -382.76M | -207.45M | 50.13M | 77.97M | 76.24M | 57.05M | 21.95M | 27.61M | 8.88M |
| Operating Margin % | 8.2% | -24.14% | -8.19% | -86.89% | -41.02% | 10.73% | 20.37% | 21.31% | 22.14% | 12.67% | 31.89% | 30% |
| Operating Income Growth % | - | 16.89% | 94.68% | -84.51% | -513.82% | -35.71% | 2.27% | 33.62% | 159.95% | -20.51% | 210.86% | - |
| EBITDA | 45.55M | -15.02M | -17.89M | -324.98M | -98.7M | 103.82M | 112.3M | 99.44M | 72.17M | 32.51M | 31.3M | 9.31M |
| EBITDA Margin % | 11.02% | -21.41% | -7.19% | -73.77% | -19.52% | 22.23% | 29.33% | 27.79% | 28.01% | 18.77% | 36.15% | 31.44% |
| EBITDA Growth % | - | 16.03% | 94.49% | -229.25% | -195.07% | -7.55% | 12.93% | 37.79% | 121.98% | 3.87% | 236.21% | - |
| D&A (Non-Cash Add-back) | 11.67M | 1.91M | 2.49M | 57.78M | 108.74M | 53.69M | 34.33M | 23.2M | 15.11M | 10.56M | 3.69M | 426.32K |
| EBIT | 29.09M | -16.48M | -20.01M | -381.24M | -205.47M | 50.13M | 77.97M | 76.24M | 57.05M | 21.95M | 27.61M | 8.88M |
| Net Interest Income | 264.46K | 10.97K | -551.72K | -1.36M | -2.09M | -318.98K | 436.23K | 824.03K | 684.7K | 430.88K | 417.36K | 202.32K |
| Interest Income | 338.23K | 10.97K | 0 | 0 | 0 | 562.36K | 436.23K | 824.03K | 684.7K | 430.88K | 417.36K | 202.32K |
| Interest Expense | 171.09K | 0 | 551.72K | 1.36M | 2.09M | 881.34K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -125.75M | 966.07K | -176.44K | 161.58K | -115.85K | 6.33M | 4.66M | 8.08M | 6.36M | 3.12M | 219.67K | 138.33K |
| Pretax Income | -91.88M | -15.96M | -20.56M | -382.6M | -207.56M | 56.46M | 82.63M | 84.32M | 63.41M | 25.07M | 27.83M | 9.02M |
| Pretax Margin % | -22.24% | -22.74% | -8.26% | -86.85% | -41.04% | 12.09% | 21.58% | 23.57% | 24.61% | 14.47% | 32.15% | 30.47% |
| Income Tax | 10.05M | 339.66K | 12.85M | 211.27K | -10.98M | 4.22M | 459.23K | 983.65K | 3.05M | 2.49M | 624.47K | 0 |
| Effective Tax Rate % | -10.94% | -2.13% | -62.53% | -0.06% | 5.29% | 7.47% | 0.56% | 1.17% | 4.82% | 9.94% | 2.24% | 0% |
| Net Income | -105.46M | -15.74M | -33.51M | -373.5M | -199.16M | 47.63M | 77.83M | 79.77M | 57.47M | 23.99M | 27.59M | 9.12M |
| Net Margin % | -25.53% | -22.43% | -13.47% | -84.78% | -39.38% | 10.2% | 20.33% | 22.3% | 22.3% | 13.84% | 31.86% | 30.81% |
| Net Income Growth % | - | 53.04% | 91.03% | -87.54% | -518.11% | -38.8% | -2.44% | 38.81% | 139.59% | -13.05% | 202.38% | - |
| Net Income (Continuing) | 24.51M | -16.3M | -33.41M | -382.81M | -196.58M | 52.25M | 82.17M | 83.33M | 60.36M | 22.58M | 27.21M | 9.02M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 6.29M | 5.83M | 6.39M | 6.29M | 16.24M | 13.64M | 8.97M | 4.35M | 822.12K | 21.89M | -10.99K | -98.91K |
| EPS (Diluted) | -5.22 | -0.04 | -1.44 | -18.48 | -10.08 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EPS Growth % | - | 96.96% | 92.21% | -83.33% | - | - | - | - | - | - | - | - |
| EPS (Basic) | - | -0.04 | -1.44 | -18.48 | -10.08 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 20.19M | 347M | 23M | 20.18M | 19.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Basic Shares Outstanding | 20.19M | 347M | 23M | 20.18M | 19.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Institutional contract revenue collapse
As indicated by the most recent quarterly data, Jianzhi's revenue trajectory has shifted from growth to a severe contraction, with the company reporting a negative gross profit of $3.9 million in 2023Q4, marking a stark departure from the positive performance observed in previous fiscal periods.
The transition from $178.2 million in 2021Q2 to a negative gross profit position suggests that the company's core institutional revenue streams are failing to cover the direct costs of service delivery. This rapid deterioration implies that the firm's B2B2C model may be facing significant headwinds in contract renewals or project-based demand within the Chinese higher education sector.
Based on the provided financial statements, the company's gross margin has collapsed into negative territory, falling from a peak of 26.1% in 2021Q1 to -4.8% in 2023Q4, which highlights a fundamental inability to maintain pricing power or control production costs.
The shift to negative gross margins suggests that the cost of revenue, likely driven by hardware procurement and content licensing, now exceeds the value generated by these institutional contracts. Investors should monitor whether this is a temporary impact of project timing or a permanent impairment of the company's value-added reseller business model.
According to the income statement, Jianzhi's operating leverage has inverted, as the company reported an operating loss of $15.6 million in 2023Q4, demonstrating that fixed overhead costs are no longer being absorbed by a shrinking revenue base.
The inability to scale SG&A and R&D expenses in proportion to the revenue decline indicates a lack of operational flexibility. This suggests that the company's current cost structure is too rigid for its diminished scale, potentially necessitating aggressive restructuring to prevent further erosion of the remaining cash position.
While the company maintains a low debt-to-equity ratio, the reported net loss of $141.1 million in 2023Q4, as documented in recent filings, raises significant concerns regarding the long-term viability of the current institutional education technology service model.
Short-sellers would likely focus on the disconnect between the company's stated moat in university infrastructure and the reality of its negative operating margins. The reliance on project-based IT revenue appears to be a high-risk strategy that leaves the firm vulnerable to sudden shifts in institutional capital expenditure budgets.
Quick answers to the most common questions about buying JZ stock.
For fiscal year 2025, Jianzhi Education Technology Group Company Limited (JZ) reported total revenue of $70.2M. This represents a 137.0% increase compared to $29.6M in 2015.
Jianzhi Education Technology Group Company Limited (JZ) reported a net loss of $15.7M for the fiscal year ending 2025.
Jianzhi Education Technology Group Company Limited (JZ) reported an operating income of $-16.9M, resulting in an operating profit margin of -24.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Jianzhi Education Technology Group Company Limited (JZ) generated $12.4M in gross profit for the year, representing a gross profit margin of 17.7%. This demonstrates the company's core pricing power and production efficiency.