Huarong International Financial Holdings Limited (0993) AI Stock Analysis

• Market Cap: HK$2.06B
• Dividend Yield: N/A
• Average Volume (3M): 5.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 5.77
• Revenue Growth: -74.76%
• EPS Growth: 33.57%
• Country: HK
• Employees: 12
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): -0.07
• Shares Outstanding: 8,709,586,000
• 10 Day Avg. Volume: 1,890,267
• 30 Day Avg. Volume: 5,070,962
• PEG Ratio: 0.07
• Price to Book (P/B): -1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.44
• 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

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is heavily influenced by the company's poor financial performance, which poses significant risks. Despite some positive technical indicators suggesting short-term momentum, the severe financial instability and negative valuation metrics weigh heavily on the overall score.

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. The company operates primarily in the financial sector, providing a range of services including securities trading, asset management, and financial advisory services. Huarong International is a subsidiary of China Huarong Asset Management Co., Ltd., which is one of China’s largest asset management firms. The company leverages its expertise in financial markets to offer investment solutions and risk management services to its clients.

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: Neutral
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 0.24 is below the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.20, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 23.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	70 Neutral	€620.16M	7.67	2.36%	―	-4.56%	―
0335	63 Neutral	HK$1.82B	26.25	2.46%	2.94%	-15.77%	-47.32%
0064	60 Neutral	HK$1.88B	36.19	0.66%	6.45%	-37.82%	-104.07%
0218	59 Neutral	€3.29B	―	-5.86%	―	-90.83%	16.46%
Sector *	58 Neutral	HK$92.20B	5.61	-3.20%	4.95%	5.50%	-56.25%
0993	46 Neutral	HK$2.06B	―		―	-74.76%	33.57%
0952	45 Neutral	HK$1.06B	59.38	-3.62%	―	14.16%	-161.03%

Huarong International Financial Holdings Limited Corporate Events

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.

XinKong International Announces AGM Postponement and Auditor Change

XinKong International Capital Holdings Limited has announced the postponement of its Annual General Meeting (AGM), originally scheduled for June 19, 2025, to June 27, 2025. The meeting will address a significant change in the company’s auditing firm, with a proposal to appoint BDO Limited as the new auditor, replacing Ernst & Young. This change could impact the company’s financial oversight and stakeholder confidence.

XinKong International Announces Auditor Change to BDO Limited

XinKong International Capital Holdings Limited has announced a proposed change of auditor, with Ernst & Young retiring after five years of service. The company plans to appoint BDO Limited as the new auditor, citing BDO’s experience, industry knowledge, and global resources as key factors for the decision. The change aims to align with the company’s business development needs and cost-effectiveness. Additionally, an amendment to an ordinary resolution for the re-appointment of the auditor will be proposed at the upcoming annual general meeting, replacing Ernst & Young with BDO.

XinKong International Strengthens Nomination Committee with New Appointment

XinKong International Capital Holdings Limited has announced the appointment of Ms. Tan Jieyu, a non-executive director, to its Nomination Committee. This move aligns with upcoming amendments to the Listing Rules and Corporate Governance Code, aiming to enhance the committee’s effectiveness and diversity, thereby improving the company’s corporate governance practices.

XinKong International Capital Holdings Announces Board Composition

XinKong International Capital Holdings Limited, incorporated in Bermuda, has announced the composition of its board of directors and their respective roles within the company. The board consists of non-executive, executive, and independent non-executive directors, each serving on various committees such as audit, nomination, remuneration, executive, risk management, and sustainable development. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership and decision-making processes within the organization.