China Shenghai Group Limited (1676) AI Stock Analysis

• Market Cap: HK$155.06M
• Dividend Yield: N/A
• Average Volume (3M): 3.84M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.07
• Revenue Growth: 22.31%
• EPS Growth: 2.36%
• Country: HK
• Employees: 365
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.35
• Shares Outstanding: 258,430,850
• 10 Day Avg. Volume: 2,990,800
• 30 Day Avg. Volume: 3,839,853
• PEG Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ―

China Shenghai Group Limited faces significant financial challenges, with ongoing losses and cash flow difficulties being the primary concerns. The technical analysis further reflects a bearish trend, while the negative P/E ratio underscores valuation issues. While the balance sheet shows low leverage, the overall financial stability remains weak, leading to a low overall stock score.

Positive Factors

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to potentially invest in growth opportunities without significant financial strain.

Board Restructuring

The appointment of a new director with substantial experience in management and business development could enhance strategic oversight and governance, potentially improving long-term business performance.

Established Supply Chains

Efficient supply chains support cost management and product availability, enhancing competitive positioning in the seafood market over the long term.

Negative Factors

Ongoing Financial Losses

Continued financial losses indicate challenges in achieving profitability, which may hinder the company's ability to invest in growth and maintain competitive advantage.

Negative Cash Flow

Negative cash flow can limit the company's ability to fund operations and growth initiatives, potentially impacting long-term sustainability and financial health.

Declining Revenue

A decline in revenue suggests weakening market demand or competitive pressures, which could affect the company's market position and long-term growth prospects.

China Shenghai Group Limited Business Overview & Revenue Model

Company Description

China Shenghai Group Limited, an investment holding company, engages in the packaging and sale of seafood products in Mainland China, Hong Kong, and South Korea. The company offers dried seafood, algae and fungi, and frozen seafood products; and seafood snacks under the Wofan brand, as well as procures and sells fast moving consumer goods, cosmetics, fashion, and accessories. It sells its products to supermarkets, trading companies, and convenience stores, as well as other sales channels, such as food companies, gift stores, and e-commerce retailers. The company was formerly known as China Shenghai Food Holdings Company Limited and changed its name to China Shenghai Group Limited in July 2020. The company was founded in 2005 and is headquartered in Xiamen, China.

How the Company Makes Money

China Shenghai Group Limited generates revenue through the processing and sale of seafood products. Its primary revenue streams include the sale of frozen and canned seafood to wholesalers, retailers, and foodservice companies. The company benefits from its scale of operations and established supply chains, which enable it to source raw seafood materials efficiently. Additionally, the company may engage in partnerships with international distributors to expand its market reach. Key factors contributing to its earnings include the quality and variety of its seafood products, its competitive pricing strategies, and its ability to maintain strong relationships with suppliers and clients.

China Shenghai Group Limited Financial Statement Overview

Summary

China Shenghai Group Limited is experiencing financial pressure with ongoing losses and cash flow challenges. Despite stable revenue, profitability is lacking, and the balance sheet shows some signs of weakening equity. These factors suggest the company needs to address operational efficiencies and cost management to improve financial stability.

Income Statement

China Shenghai Group Limited has shown stability in revenue with minor growth from 2023 to 2024. However, the company is experiencing significant losses as indicated by negative EBIT and net income. The gross profit margin is low at 3.36%, and the net profit margin is negative, highlighting challenges in profitability.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a debt-to-equity ratio of 0.26, indicating low leverage. However, stockholders' equity has decreased over the years, and the equity ratio is at 67.77%, which is reasonable but declining. This suggests a weakening financial structure.

Cash Flow

The company has faced consistent negative free cash flow, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is not calculable due to zero operating cash flow, and the free cash flow growth rate is negative, reflecting operational cash constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	454.28M	469.96M	354.86M	353.47M	86.51M	162.72M
Gross Profit	54.18M	55.23M	11.93M	10.61M	6.63M	28.61M
EBITDA	-90.51M	-94.99M	-73.16M	-82.04M	-70.39M	-15.89M
Net Income	-104.11M	-107.67M	-79.93M	-100.34M	-97.45M	-32.26M
Balance Sheet
Total Assets	223.05M	223.05M	263.57M	286.31M	405.98M	499.79M
Cash, Cash Equivalents and Short-Term Investments	7.42M	7.42M	75.27M	66.48M	176.40M	213.48M
Total Debt	65.63M	65.63M	45.58M	27.82M	23.82M	17.68M
Total Liabilities	109.31M	109.31M	85.19M	66.87M	46.99M	53.38M
Stockholders Equity	113.92M	113.92M	178.58M	219.65M	359.20M	446.42M
Cash Flow
Free Cash Flow	-81.49M	-88.28M	0.00	-82.53M	-56.44M	-39.85M
Operating Cash Flow	-82.73M	-83.14M	0.00	-82.22M	-53.47M	-32.65M
Investing Cash Flow	-4.92M	-4.94M	0.00	684.00K	2.69M	-6.34M
Financing Cash Flow	29.41M	29.56M	0.00	8.24M	13.84M	9.52M

China Shenghai Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.54
• 50DMA: Negative
• 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:1676, the sentiment is Neutral. The current price of 0.54 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.62, and above the 200-day MA of 0.51, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1676.

China Shenghai Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1695	63 Neutral	HK$99.36M	3.95	11.24%	―	37.73%	150.54%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8362	56 Neutral	HK$79.80M	-47.50	-1.83%	―	-0.97%	-140.00%
2147	51 Neutral	HK$42.00M	-0.31	-28.48%	―	56.39%	-86.79%
1676	43 Neutral	HK$155.06M	-0.85	-70.35%	―	22.31%	2.36%
0841	43 Neutral	HK$140.33M	-1.20	-20.08%	―	75.21%	18.42%
8241	40 Underperform	HK$32.19M	-2.13	―	―	-7.42%	-0.97%

China Shenghai Group Limited Corporate Events

Gaodi Holdings Raises HK$20 Million Through Share Placing to Fund Food and Beverage Operations

Gaodi Holdings Limited has completed a placing of 39,184,000 new shares under its general mandate, increasing its issued share capital to 258,430,857 shares, with the new shares representing about 15.16% of the enlarged share base. The placing, conducted at HK$0.52 per share to at least six independent investors, raised net proceeds of approximately HK$20 million, which the company plans to deploy by December 2026, allocating roughly half to its existing food business, 30% to its food and beverage operations, and the balance to general working capital; no placee has become a substantial shareholder, though public shareholders’ aggregate stake has been diluted, and the transaction strengthens the company’s capital base to support ongoing operations and growth.

China Shenghai Group Announces Share Placement to Bolster Financial Position

China Shenghai Group Limited has announced a share placement under a general mandate, involving up to 43,849,371 new shares at a price of HK$0.52 each. This represents a 20% increase in the company’s existing issued share capital. The net proceeds of approximately HK$22.39 million will be allocated primarily to the company’s existing food and beverage business and general working capital. The placement aims to strengthen the company’s financial position and support its business operations.

Gaodi Holdings Secures Unanimous Approval for AGM Resolutions

Gaodi Holdings Limited, listed on the Hong Kong Stock Exchange, successfully passed all proposed resolutions during its 2025 Annual General Meeting. The resolutions included the re-election of directors, re-appointment of auditors, and granting of mandates related to share repurchase and general operations. The unanimous approval of these resolutions by shareholders, representing approximately 18.71% of the total issued shares, underscores strong shareholder support and positions the company for continued stability and strategic flexibility.

Gaodi Holdings Limited Announces AGM with Key Resolutions

Gaodi Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for November 26, 2025, in Shenzhen, PRC. The meeting will address several key issues, including the adoption of the company’s audited financial statements for the year ended June 30, 2025, the re-election of certain directors, and the re-appointment of auditors. Additionally, the company will seek shareholder approval for mandates allowing the purchase of its shares and the issuance of additional shares, which could impact the company’s market operations and shareholder value.

Gaodi Holdings Completes Successful Share Placement to Strengthen Financial Position

Gaodi Holdings Limited has successfully completed the placing of new shares under a general mandate, resulting in the issuance of 30,802,000 new shares, which constitute approximately 14.05% of the company’s enlarged share capital. The placing raised gross proceeds of approximately HK$13.24 million, with net proceeds of HK$12.94 million intended for use in the company’s existing food and beverage business and general working capital. This strategic move is expected to bolster Gaodi Holdings’ financial position and support its operational activities, enhancing its market presence in the food and beverage industry.

Gaodi Holdings Reports Increased Revenue but Faces Significant Losses in 2025

Gaodi Holdings Limited announced its annual results for the year ending June 30, 2025, reporting a significant increase in revenue to RMB 435,333,000 from RMB 354,863,000 in the previous year. Despite the revenue growth, the company faced a substantial loss of RMB 99,690,000, attributed to increased selling and distribution costs, administrative expenses, and impairment losses on trade and other receivables. This financial performance reflects challenges in the company’s operational efficiency and cost management, impacting its overall profitability.