Company DescriptionHuarong International Financial Holdings Limited, an investment holding company, provides financial services in Hong Kong and the People's Republic of China. The company operates through Securities, Corporate Finance, Asset Management and Direct Investment, and Financial Services and Others segments. The Securities segment engages in the broking and dealing of securities, futures, and options contracts; and provision of margin financing services. The Corporate Finance segment provides securities underwriting and sponsoring, and financial advisory services to institutional clients. The Asset Management and Direct Investment segment offers asset management services; and makes direct investments in equities, bonds, funds, derivative instruments, and other financial products. The Financial Services and Others segment provides finance leasing, business consulting, and financing and other related services. It also offers management services. The company was formerly known as Simsen International Corporation Limited and changed its name to Huarong International Financial Holdings Limited in October 2015. Huarong International Financial Holdings Limited was founded in 1973 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Huarong International Financial Holdings Limited Financial Statement Overview

Summary

Huarong International Financial Holdings Limited is facing severe financial instability across all aspects of its financial statements. The company is consistently reporting losses, has a distressed balance sheet with negative equity, and is struggling to maintain cash flow. These factors highlight significant risks and an urgent need for restructuring or strategic intervention to restore financial health.

Income Statement

Very Negative

The income statement reveals significant challenges for Huarong International Financial Holdings Limited. The company has experienced declining revenues over recent years, with a negative revenue of -153.52 million in the latest year. Additionally, it has persistently reported negative net income, indicating ongoing operational losses. The gross profit margin, net profit margin, and EBIT margin are negative, reflecting a lack of profitability and efficiency in operations.

Balance Sheet

Very Negative

The balance sheet highlights severe financial distress. With a negative stockholders' equity of -2.27 billion in the latest year, the company is highly leveraged with a concerning debt-to-equity ratio implying insolvency. The equity ratio is negative, indicating that liabilities far exceed assets, posing substantial risk to stakeholders.

Cash Flow

Very Negative

Cash flow analysis shows a troubling decline in operational performance. The company failed to generate positive free cash flow in the most recent year, after previously achieving it. Further, the operating cash flow has sharply decreased to zero, suggesting difficulties in sustaining operations without additional financing.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
-153.52M	103.41M	-641.31M	-422.98M	-188.25M
	Gross Profit
187.76M	103.39M	-715.06M	-498.26M	-279.73M
	EBIT
-216.64M	-34.55M	-1.93B	-1.61B	-2.65B
	EBITDA
0.00	-207.42M	-1.59B	-1.00B	-1.80B
	Net Income Common Stockholders
-241.04M	-967.29M	-2.23B	-1.60B	-2.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
766.52M	2.11B	2.04B	1.97B	1.78B
	Total Assets
2.07B	3.92B	5.73B	9.21B	15.00B
	Total Debt
3.83B	5.10B	5.95B	8.57B	10.81B
	Net Debt
3.42B	3.52B	3.91B	6.60B	9.03B
	Total Liabilities
4.34B	5.57B	6.46B	9.70B	13.61B
	Stockholders Equity
-2.27B	-1.66B	-732.88M	-1.77B	-74.21M
Cash Flow		Free Cash Flow
0.00	985.74M	846.32M	1.41B	1.00B
	Operating Cash Flow
0.00	986.61M	847.44M	1.42B	1.01B
	Investing Cash Flow
0.00	121.69M	315.56M	2.27B	1.40B
	Financing Cash Flow
-1.24B	-1.51B	-1.06B	-3.55B	-4.67B

Huarong International Financial Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
93W		€139.23M	―		―	―	―
Sector *	64 Neutral	$12.85B	9.81	7.59%	16985.65%	12.30%	-7.71%
ACGBF		$270.23B	6.05	10.80%	7.14%	―	―
BKFCF		$73.55B	5.60		5.83%	―	―
CIHHF		$157.15B	8.15	14.86%	4.31%	―	―
CRWOF		$17.99B	3.12	8.83%	6.36%	―	―
IDCBF		$331.61B	5.52		8.33%	―	―

* Financial Sector Average

Performance Comparison

DE:93W

Huarong International Financial Holdings Limited

0.01

0.00

0.00%

ACGBF

Agricultural Bank of China

0.68

0.27

65.85%

BKFCF

Bank of Communications Co

0.90

0.23

34.33%

CIHHF

China Merchants Bank Co

6.42

2.12

49.30%

CRWOF

China Railway Group

0.46

-0.12

-20.69%

IDCBF

Industrial and Commercial Bank of China

0.75

0.23

44.23%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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