Huarong International Financial Holdings Limited (0993) AI Stock Analysis

• Market Cap: HK$1.12B
• Dividend Yield: N/A
• Average Volume (3M): 657.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 5.35
• Revenue Growth: -74.76%
• EPS Growth: 33.57%
• Country: HK
• Employees: 12
• Sector: Financial
• Sector Strength: 84
• Industry: Financial - Capital Markets
• EPS (TTM): -0.07
• Shares Outstanding: 8,709,586,000
• 10 Day Avg. Volume: 445,320
• 30 Day Avg. Volume: 657,082
• PEG Ratio: 0.04
• Price to Book (P/B): -0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.09
• 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

The overall score for Huarong International Financial Holdings Limited is significantly affected by its poor financial performance, which is the most critical factor. The company's financial instability, including negative income, distressed balance sheet, and cash flow issues, presents major risks. Additionally, the technical analysis reinforces a bearish outlook, and valuation metrics are unattractive due to negative earnings and lack of dividends.

Huarong International Financial Holdings Limited Business Overview & Revenue Model

Company Description

Huarong International Financial Holdings Limited (0993) is a financial services company based in Hong Kong. It operates in the investment and asset management sectors, offering a wide range of financial products and services. The company's core offerings include securities brokerage, corporate finance, asset management, and direct investments. Huarong International is known for its comprehensive financial solutions catered to both individual and institutional clients.

How the Company Makes Money

Huarong International Financial Holdings Limited generates revenue primarily through its various financial services and investment activities. The company earns income from securities brokerage services, which include commissions and fees from trading activities for clients. Additionally, it provides corporate finance services, generating fees from advising on mergers and acquisitions, underwriting, and other financial consulting services. The asset management division contributes to revenue through management fees and performance fees from managing client assets. Direct investments also play a significant role in the company's revenue, where returns from equities, bonds, and other financial instruments are realized. The firm may also engage in strategic partnerships to expand its service offerings and enhance its market presence, further contributing to its revenue streams.

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

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
-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 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 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 0.13 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 57.13 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
1288	82 Outperform	HK$2.09T	5.75	10.80%	8.02%	-0.43%	11.31%
3328	80 Outperform	$580.26B	5.48		5.71%	―	0.12%
1398	78 Outperform	$2.60T	5.13		8.73%	-3.41%	-0.73%
3968	74 Outperform	$1.23T	7.80	14.86%	4.44%	-2.77%	0.10%
Sector *	64 Neutral	$12.83B	9.83	7.64%	16985.66%	12.34%	-5.73%
0390	63 Neutral	$140.37B	2.98	8.83%	6.60%	-9.80%	-18.36%
0993	24 Underperform	HK$1.12B	―		―	-74.76%	33.57%

Huarong International Financial Holdings Limited Corporate Events

XinKong International Capital Holdings Schedules AGM to Discuss Key Resolutions

XinKong International Capital Holdings Limited has announced its upcoming Annual General Meeting (AGM), scheduled for June 19, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of financial statements for the year ending December 31, 2024, the re-election of directors, and the re-appointment of Ernst & Young as auditors. Additionally, the AGM will consider authorizing the board to issue new shares and securities, which could potentially impact the company’s capital structure and shareholder value.

XinKong International Reports 2024 Financial Results with Significant Losses

XinKong International Capital Holdings Limited reported its annual financial results for the year ending December 31, 2024, showing a significant decrease in revenue and a substantial loss before tax compared to the previous year. The company faced challenges with impairment losses and finance costs, impacting its overall financial performance, although there was a slight improvement in the loss attributable to equity holders.

XinKong International Capital Holdings Rebrands with New Name and Stock Short Name

XinKong International Capital Holdings Limited has officially changed its name from Huarong International Financial Holdings Limited following shareholder approval. The change, effective from February 21, 2025, also includes a new stock short name on the Hong Kong Stock Exchange, although the stock code remains the same. This rebranding effort does not affect shareholder rights or the validity of existing share certificates, indicating a seamless transition for stakeholders.

XinKong International Capital Holdings to Announce Annual Results

XinKong International Capital Holdings Limited has announced a board meeting scheduled for March 28, 2025, to consider and approve the annual results for the year ending December 31, 2024. This meeting is significant as it will determine the company’s financial performance and strategic direction, impacting stakeholders and potentially influencing its market position.

Huarong International Financial Holdings Approves Name Change

Huarong International Financial Holdings Limited announced that a special resolution to change the company’s name was successfully passed during a Special General Meeting held on February 20, 2025. The resolution received overwhelming support from shareholders, with 99.99% votes in favor. The proposed name change is pending approval from the Registrar of Companies in Bermuda and will take effect upon registration. The company plans to update stakeholders on the new company name, stock short names, logo, and website details as the changes are finalized.