The current P/B ratio indicates that investors are assigning almost zero value to the company's equity, likely due to the ongoing erosion of retained earnings and the uncertainty surrounding the risk-bearing transition. This valuation gap compared to peers suggests that the market is not merely discounting for growth, but is actively pricing in the potential for further balance sheet impairment.

The transition from a capital-light facilitation model to one that requires holding credit risk on the balance sheet has clearly impaired the company's ability to compound capital. This trend warrants further investigation into whether the current offline sales infrastructure can ever achieve the necessary scale to offset the rising cost of credit risk.

The low asset turnover suggests that the company's capital is largely tied up in non-productive assets or is being held as a buffer against potential credit losses. Investors should monitor whether the increase in DSO, which rose from 62 days in 2022Q4 to 82 days in 2024Q3, reflects a structural lengthening of the credit cycle or an inability to collect on delinquent SBO loans.

While the current ratio appears high, it is likely inflated by cash reserves that are restricted or earmarked for guarantee obligations rather than being truly discretionary. The rapid decline in this ratio over the last year suggests that the company is consuming its liquidity buffer to fund the transition to a risk-bearing model, which may limit its flexibility in a stressed credit environment.