Huarong International Financial Holdings Limited (0993) AI Stock Analysis

• Market Cap: HK$1.08B
• Dividend Yield: N/A
• Average Volume (3M): 503.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 6.18
• Revenue Growth: -78.40%
• EPS Growth: -196.19%
• Country: HK
• Employees: 12
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.06
• Shares Outstanding: 8,709,586,000
• 10 Day Avg. Volume: 609,501
• 30 Day Avg. Volume: 503,027
• PEG Ratio: 0.17
• Price to Book (P/B): -0.59
• Price to Sales (P/S): 7.14
• P/FCF Ratio: 2.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.11 ▼(-24.67% Downside)

The score is driven primarily by very weak financial performance (losses, negative equity, and strained cash flow), with technical indicators also reflecting a sustained downtrend. Valuation does not provide support due to negative earnings and no indicated dividend yield.

Positive Factors

Business model diversification

Huarong International operates across securities trading, asset management and advisory, which diversifies revenue sources and client segments. This multi-line business model can provide resilience against single-market shocks and supports cross-selling over a multi-month to multi-year horizon.

Fee-based recurring revenue potential

Management and advisory fees create a recurring, fee-based revenue component that is structurally more stable than one-off trading income. If AUM and client mandates recover, fee revenues can provide predictable cash inflows supporting longer-term operating stability.

Distribution access via partnerships and China ties

Established partnerships and local market ties offer durable distribution and client access in China’s large capital markets. These relationships can support product placement, client referrals and institutional mandates, aiding revenue recovery and scalable growth over months to years.

Negative Factors

Negative shareholders' equity

Negative equity signals severe capital erosion and potential insolvency risk. This undermines creditor and regulator confidence, restricts access to financing, and forces management to pursue dilutive recapitalizations or asset disposals, impairing long-term strategic flexibility.

Sharp revenue decline and persistent losses

A steep revenue decline and ongoing net losses indicate failing core operations and deteriorating market traction. Continued negative top-line trends compress margins, limit reinvestment capacity, and make it harder to retain clients or staff, threatening business continuity absent turnaround.

Weak cash generation and negative FCF

Zero operating cash flow and negative free cash flow show the company cannot self-fund operations or investments. This creates reliance on external financing, heightens refinancing and liquidity risk, and limits the firm’s ability to execute strategic initiatives sustainably.

Huarong International Financial Holdings Limited Business Overview & Revenue Model

Company Description

Huarong 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 generates revenue through multiple streams, primarily by charging fees and commissions on transactions related to its securities trading and asset management services. The company earns management fees from its asset management activities, which include managing investment funds and portfolios for clients. Additionally, it gains revenue through advisory services provided to corporate clients seeking financing options or investment opportunities. Partnerships with other financial institutions and strong ties to the Chinese market further enhance its ability to generate income, as they allow Huarong to access a broad client base and offer tailored financial solutions.

Huarong International Financial Holdings Limited Financial Statement Overview

Summary

Financial statements indicate severe distress: negative revenue and persistent net losses, negative margins, negative stockholders’ equity (insolvency risk), and deteriorating cash generation with operating cash flow at zero and no positive free cash flow in the latest year.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-371.20M	187.77M	103.41M	-258.68M	59.58M	499.46M
Gross Profit	-371.20M	187.76M	103.39M	-261.94M	-422.98M	-188.25M
EBITDA	-436.60M	2.09M	-207.42M	-1.80B	-1.00B	-1.90B
Net Income	-533.03M	-241.04M	-967.29M	-2.28B	-1.67B	-2.69B
Balance Sheet
Total Assets	1.78B	2.07B	3.92B	5.73B	9.21B	15.00B
Cash, Cash Equivalents and Short-Term Investments	816.34M	766.52M	2.09B	3.04B	1.97B	6.79B
Total Debt	3.93B	3.83B	5.10B	5.90B	8.57B	10.81B
Total Liabilities	4.57B	4.34B	5.57B	6.46B	9.70B	13.61B
Stockholders Equity	-2.79B	-2.27B	-1.66B	-732.88M	-1.77B	-74.21M
Cash Flow
Free Cash Flow	-487.31M	489.95M	985.74M	846.32M	1.41B	1.00B
Operating Cash Flow	-487.31M	489.95M	986.61M	847.44M	1.42B	1.01B
Investing Cash Flow	-51.64M	75.60M	121.69M	315.56M	2.27B	1.40B
Financing Cash Flow	32.32M	-1.75B	-1.51B	-1.06B	-3.55B	-4.67B

Huarong International Financial Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0993, the sentiment is Negative. The current price of 0.15 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.15, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 68.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0993.

Huarong International Financial Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0064	70 Outperform	HK$1.87B	30.21	0.95%	3.28%	9.64%	―
0717	69 Neutral	HK$633.64M	4.31	4.26%	―	84.88%	122.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0335	63 Neutral	HK$1.80B	26.80	2.39%	2.14%	-20.02%	10.62%
0218	53 Neutral	HK$2.14B	-33.83	-2.44%	―	-45.13%	60.10%
0952	45 Neutral	HK$860.42M	-10.53	-4.03%	―	173.24%	-515.63%
0993	39 Underperform	HK$1.08B	-1.00	―	―	-78.40%	-196.19%

Huarong International Financial Holdings Limited Corporate Events

Huarong International Signs Three-Year Framework Deal to Provide Financial Services to Connected Clients

Huarong International Financial Holdings has entered into a framework agreement with China Financial Asset International Holdings (CFAIH) under which it will provide brokerage, corporate financial advisory and asset management services to CFAIH’s connected clients from 19 January 2026 to 31 December 2028. The transactions, conducted on normal commercial terms and benchmarked to rates for independent third parties, are classified as continuing connected transactions under Hong Kong listing rules, triggering reporting, announcement and annual review requirements but not the need for independent shareholders’ approval, thereby formalising a multi‑year revenue stream while maintaining regulatory compliance and standard market pricing.

The most recent analyst rating on (HK:0993) stock is a Hold with a HK$0.12 price target. To see the full list of analyst forecasts on Huarong International Financial Holdings Limited stock, see the HK:0993 Stock Forecast page.

XinKong Says Censured Independent Director Remains Fit for Board Role

XinKong International Capital Holdings Limited has disclosed that its independent non-executive director, Hung Ka Hai Clement, was publicly censured by the Hong Kong Stock Exchange in connection with internal control and diligence failures identified at Starjoy Wellness and Travel Company Limited and China Aoyuan Group Limited, where he also serves as an independent non-executive director and committee member. The Exchange’s Listing Committee found that the relevant directors, including Hung, breached their duty of skill, care and diligence, and ordered them to undertake training, but did not deem him unfit to serve as a director; XinKong’s board, citing the absence of dishonesty or integrity issues and Hung’s undertaking to complete the mandated training, concluded the incident is unrelated to the group’s affairs and will not adversely affect its operations or his continued role on the board.

The most recent analyst rating on (HK:0993) stock is a Hold with a HK$0.12 price target. To see the full list of analyst forecasts on Huarong International Financial Holdings Limited stock, see the HK:0993 Stock Forecast page.

XinKong International Capital Moves Hong Kong Head Office to Wanchai

XinKong International Capital Holdings Limited has relocated its head office and principal place of business to Rooms 1703–1704, 17/F, YF Life Centre, 38 Gloucester Road, Wanchai, Hong Kong, effective 29 December 2025, while keeping its existing telephone and fax numbers unchanged. The move signals an administrative and operational shift in the company’s Hong Kong base but does not alter its listed status, governance structure or immediate communication channels, implying limited direct impact on stakeholders beyond the updated physical address for official and commercial correspondence.

The most recent analyst rating on (HK:0993) stock is a Sell with a HK$0.15 price target. To see the full list of analyst forecasts on Huarong International Financial Holdings Limited stock, see the HK:0993 Stock Forecast page.