The significant drop in Jinyuan EP's share price and revenue indicates potential unresolved challenges. Investors are advised to keep an eye on the fundamentals and ensure they are investing in a high-quality business.

The company's debt usage, negative EBIT, and substantial revenue decline make it a high-risk investment. Its balance sheet is somewhat strained, and it also lost CN¥324m in negative free cash flow over the past year, increasing its risk.

Despite declining revenues, Jinyuan EP's P/S ratio aligns with the industry, suggesting investors may be less bearish. However, continued medium-term revenue trends could risk shareholder investments, possibly leading to an unnecessary premium for potential investors.

The marked revenue decline and a continued share price drop could indicate unresolved challenges within the company, necessitating improvements in core business and diminishing losses before creating investor excitement.