Huarong International Financial Holdings Limited (0993) AI Stock Analysis

• Market Cap: €1.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 5.87
• 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: 1,301,676
• 30 Day Avg. Volume: 1,609,202
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is heavily influenced by the company's dire financial performance, which poses significant risks. The technical analysis further supports a bearish outlook, while the valuation metrics highlight ongoing financial challenges. The absence of earnings call data and corporate events does not alter the negative assessment.

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 Financial Holdings Limited generates revenue through multiple streams, primarily from its securities trading and brokerage services, asset management fees, and financial advisory services. The company's brokerage division earns commissions and fees from executing trades on behalf of clients. In asset management, Huarong International charges management fees based on the assets under management (AUM) and may also earn performance fees if managed assets achieve specific benchmarks. Additionally, the company provides corporate finance services, including underwriting and advisory services for mergers and acquisitions, which contribute to its revenue. Strategic partnerships and the company's integration with its parent company, China Huarong Asset Management Co., Ltd., also play a significant role in expanding its client base and enhancing its revenue generation capabilities.

Huarong International Financial Holdings Limited Financial Statement Overview

Summary

Huarong International Financial Holdings Limited is facing severe financial instability. The income statement reflects ongoing operational losses with negative revenues and net income. The balance sheet shows negative stockholders' equity and high leverage, indicating insolvency risk. Cash flow analysis reveals an inability to generate positive free cash flow, highlighting operational difficulties.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.77M	103.41M	-258.68M	59.58M	499.46M
Gross Profit	187.76M	103.39M	-261.94M	-422.98M	-188.25M
EBITDA	2.09M	-207.42M	-1.80B	-1.00B	-1.90B
Net Income	-241.04M	-967.29M	-2.28B	-1.67B	-2.69B
Balance Sheet
Total Assets	2.07B	3.92B	5.73B	9.21B	15.00B
Cash, Cash Equivalents and Short-Term Investments	766.52M	2.09B	3.04B	4.24B	6.79B
Total Debt	3.83B	5.10B	5.95B	8.57B	10.81B
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	489.95M	985.74M	846.32M	1.41B	1.00B
Operating Cash Flow	489.95M	986.61M	847.44M	1.42B	1.01B
Investing Cash Flow	75.60M	121.69M	315.56M	2.27B	1.40B
Financing Cash Flow	-1.75B	-1.51B	-1.06B	-3.55B	-4.67B

Huarong International Financial Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 0.2 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.22, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 39.38 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
0717	69 Neutral	876.31M	10.25	1.92%	―	-4.56%	0.00%
0335	63 Neutral	1.88B	27.03	0.00%	2.21%	-25.99%	-19.06%
0064	60 Neutral	1.81B	34.43	0.00%	1.75%	13.35%	15.14%
0218	53 Neutral	3.04B	-45.68	-6.11%	―	-45.13%	60.10%
0952	45 Neutral	977.19M	-11.35	-3.68%	―	173.24%	-515.63%
0993	39 Underperform	€1.73B	―		―	-78.40%	-196.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Huarong International Financial Holdings Limited Corporate Events

XinKong International Reports Significant Losses in H1 2025

XinKong International Capital Holdings Limited reported its interim financial results for the first half of 2025, revealing a significant downturn in performance compared to the same period in 2024. The company experienced a net loss of HK$298.8 million, a stark contrast to the HK$142.6 million profit recorded in the previous year. This decline was largely due to substantial impairment losses and reduced revenue streams across various income categories, impacting the company’s overall financial health and market positioning.

The most recent analyst rating on (HK:0993) stock is a Hold with a HK$0.50 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 Issues Profit Warning Amid Financial Challenges

XinKong International Capital Holdings Limited has issued a profit warning, indicating a significant financial downturn for the first half of 2025. The company expects to record a net loss of HK$290 million to HK$310 million, a stark contrast to the HK$143 million profit from the same period in 2024. This loss is primarily due to a material impairment loss related to a loan receivable and a net loss on financial assets at fair value. Stakeholders are advised to exercise caution as changes in asset values may further impact the company’s financial performance.

The most recent analyst rating on (HK:0993) stock is a Hold with a HK$0.50 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 Holdings to Announce Interim Results

XinKong International Capital Holdings Limited has announced a board meeting scheduled for August 29, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. This meeting is crucial as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the company’s market position.

The most recent analyst rating on (HK:0993) stock is a Hold with a HK$0.50 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 Holdings Unanimously Passes AGM Resolutions

XinKong International Capital Holdings Limited, a company incorporated in Bermuda, held its postponed annual general meeting on June 27, 2025. During this meeting, all proposed resolutions were unanimously approved by shareholders, including the adoption of financial statements, the re-election of directors, and the appointment of BDO Limited as the new auditor. The resolutions also granted the board mandates to issue and buy back shares, reflecting strong shareholder support and potentially enhancing the company’s operational flexibility and market positioning.