Hope Life International Holdings Ltd. (1683) AI Stock Analysis

• Market Cap: HK$1.21B
• Dividend Yield: N/A
• Average Volume (3M): 3.31M
• Price to Earnings (P/E): 106.7
• Beta (1Y): -1.23
• Revenue Growth: -35.62%
• EPS Growth: -481.82%
• Country: HK
• Employees: 55
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 1,866,240,000
• 10 Day Avg. Volume: 2,749,600
• 30 Day Avg. Volume: 3,314,733
• 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: HK$0.50
• Price Target Upside: -23.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: HK$0.50 ▼(-23.08% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by negative profit margins and cash flow issues. Technical analysis indicates a bearish trend, further weighing on the stock. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, highlighting the company's profitability challenges.

Hope Life International Holdings Ltd. Business Overview & Revenue Model

Company Description

Hope Life International Holdings Limited, an investment holding company, provides construction and ancillary services in Hong Kong and the People's Republic of China. It operates through three segments: Construction and Ancillary Services, Financial Business, and Consumer Goods Business. The Construction and Ancillary Services segment offers design, fitting out, decoration, alteration and addition, construction, and other related services. The Financial Business segment is involved in the money lending business that provides loan facilities to enterprises and individuals. The Consumer Goods Business segment produces and sells wine products. The company was formerly known as Royal China International Holdings Limited and changed its name to Hope Life International Holdings Limited in September 2019. Hope Life International Holdings Limited was founded in 1996 and is headquartered in Hong Kong.

How the Company Makes Money

Hope Life International Holdings Ltd. generates revenue through the sale and leasing of residential and commercial properties. The company's primary revenue streams include the development and sale of residential units, leasing of commercial spaces, and property management services. By investing in strategically located properties and utilizing effective marketing strategies, the company attracts a diverse clientele ranging from individual homebuyers to corporate tenants. Additionally, Hope Life International Holdings Ltd. may engage in joint ventures and partnerships with other real estate developers to enhance its project portfolio and financial performance, although no specific partnerships are disclosed.

Hope Life International Holdings Ltd. Financial Statement Overview

Summary

Hope Life International Holdings Ltd. faces challenges with profitability and cash flow, despite a stable balance sheet. Revenue volatility, negative profit margins, and cash flow struggles indicate significant financial risks.

Income Statement

The company has experienced volatility in revenue, with a recent drop from 2023 to 2024. The gross profit margin decreased from 20.8% to 19.1%, and the net profit margin is negative, indicating ongoing profitability challenges. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio remains low at 0.22, suggesting manageable leverage levels. However, the return on equity has been negative due to losses, impacting shareholder value. The equity ratio is strong at 72.7%, indicating a solid capital structure.

Cash Flow

The company has struggled with cash flow, showing negative operating and free cash flow in recent years. The absence of free cash flow growth and the inability to cover net income with operating cash flow are concerning.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	188.74M	293.15M	190.99M	247.17M	113.18M
Gross Profit	36.03M	60.82M	34.87M	47.15M	23.46M
EBITDA	-9.88M	17.59M	13.14M	16.07M	-2.71M
Net Income	-32.65M	-5.63M	-1.38M	6.87M	-8.28M
Balance Sheet
Total Assets	468.83M	480.90M	340.20M	317.93M	263.55M
Cash, Cash Equivalents and Short-Term Investments	230.85M	40.43M	52.49M	21.92M	49.23M
Total Debt	75.64M	74.54M	43.99M	41.54M	3.81M
Total Liabilities	117.23M	117.43M	91.79M	73.97M	40.98M
Stockholders Equity	340.87M	354.42M	243.96M	242.06M	222.58M
Cash Flow
Free Cash Flow	-4.52M	-154.31M	11.31M	-75.48M	-76.24M
Operating Cash Flow	-1.37M	-154.31M	11.61M	-75.48M	-40.53M
Investing Cash Flow	-3.13M	-64.00K	-302.00K	4.00K	-32.14M
Financing Cash Flow	27.56M	144.66M	19.72M	48.17M	88.74M

Hope Life International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1683, the sentiment is Negative. The current price of 0.65 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.79, and above the 200-day MA of 0.42, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 29.77 is Positive, neither overbought nor oversold. The STOCH value of 25.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1683.

Hope Life International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1627	79 Outperform	HK$1.44B	6.12	13.63%	6.85%	44.58%	11.62%
0240	75 Outperform	HK$1.63B	3.45	18.23%	7.44%	13.76%	25.01%
Sector *	64 Neutral	$10.85B	16.20	8.89%	1.97%	2.67%	-15.04%
2236	59 Neutral	HK$1.77B	6.92	9.56%	―	96.63%	―
1726	53 Neutral	HK$1.67B	―	-62.57%	―	37.20%	5.04%
2262	48 Neutral	HK$1.43B	787.50	0.59%	―	3.34%	―
1683	43 Neutral	HK$1.21B	106.67	-9.39%	―	-35.62%	-481.82%

Hope Life International Holdings Ltd. Corporate Events

Hope Life International Announces Board Composition and Committee Roles

Hope Life International Holdings Ltd. has announced the composition of its board of directors and their roles within the company. The board consists of both executive and independent non-executive directors, with Mr. Lu Zhaowei serving as the Chairman. The company has established three board committees: audit, remuneration, and nomination, with specific directors assigned to each committee. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the oversight and strategic direction being implemented by the board.

Hope Life International Appoints New Executive Director

Hope Life International Holdings Limited has appointed Mr. Wang Lun as an Executive Director effective August 1, 2025. Mr. Wang, with over 20 years of experience in market investment and corporate management, will serve a three-year term with an annual remuneration of HK$240,000 plus a discretionary bonus. His appointment is expected to strengthen the company’s leadership and enhance its strategic direction.

Hope Life International Enters Strategic Partnership with Binxian Coal

Hope Life International Holdings Ltd., through its subsidiary Hunan Zhongsa International Trade Development Company Limited, has entered into a strategic cooperation framework agreement with Binxian Coal Company Limited. This collaboration aims to expand the market for coal chemical products and enhance industrial chain synergies. Binxian Coal, a prominent player in China’s coal industry, will supply its coal chemical products to Zhongsa International, which will issue purchase orders based on downstream customer needs. The agreement also opens opportunities for trade cooperation in other areas such as coal, salt chemicals, and construction materials.

Hope Life International Completes Share Placing and Asset Acquisition

Hope Life International Holdings Ltd. has successfully completed the placing of 141,040,000 new shares under a general mandate, raising approximately HK$83.63 million. The proceeds will be used for funding new construction projects, launching an advertising campaign for a new huangjiu product, and supporting the operation of a new huangjiu production plant. Additionally, the company has completed the acquisition of target assets and secured a 20-year lease for property use, enhancing its operational capabilities.

Hope Life International Expands Asset Base with Strategic Acquisitions

Hope Life International Holdings Ltd. has announced a series of discloseable transactions involving the acquisition of target assets and right-of-use assets through the issuance of consideration shares under a general mandate. The company is also placing new shares under the same mandate. The book value of the target assets, including production and ancillary assets and huangjiu base wine, is approximately HK$23 million. The independent valuer, with a decade of experience in the wine industry, has provided a detailed valuation of these assets, considering factors such as replacement costs and depreciation. This strategic move is expected to enhance the company’s asset base and strengthen its position in the wine industry.

Hope Life International Appoints New Executive Director

Hope Life International Holdings Ltd. has appointed Mr. Li Congwei as an Executive Director effective June 13, 2025. Mr. Li brings a wealth of experience across multiple industries, including technology, tourism, hospitality, and international trade, which is expected to bolster the company’s strategic planning and resource integration efforts.

Hope Life International Announces Board Composition and Roles

Hope Life International Holdings Ltd. has announced the composition of its board of directors and their roles within the company. The board consists of executive directors and independent non-executive directors, with Mr. Lu Zhaowei serving as the Chairman. The company has established three board committees: audit, remuneration, and nomination, each with designated members and chairpersons. This announcement clarifies the governance structure of Hope Life International, which may impact its operational efficiency and stakeholder confidence.

Hope Life International Holdings Appoints Honorary Chairman

Hope Life International Holdings Ltd. has appointed Mr. Lo Man Tuen as the Honorary Chairman of its Greater China Investment Committee, effective June 3, 2025. Mr. Lo, a prominent figure with extensive experience in various leadership roles across multiple organizations, will not have management duties or receive emolument during his tenure. The company anticipates that Mr. Lo’s background and expertise will contribute significantly to the group’s strategic direction.

Hope Life International Announces Share Placement to Raise HK$84.62 Million

Hope Life International Holdings Ltd. has announced a placement of new shares under a general mandate. The company plans to place up to 141,040,000 shares at HK$0.60 each, which represents about 9.07% of its existing share capital. The gross proceeds are expected to be approximately HK$84.62 million, with net proceeds of around HK$83.63 million. The funds will be used for new construction projects, advertising for a new huangjiu product, and working capital for a new production plant. The placement is on a best effort basis and is subject to conditions outlined in the agreement.

Hope Life International Announces Major Asset and Lease Agreements

Hope Life International Holdings Ltd., through its subsidiary Jiangxi Luxin, has entered into two significant agreements with Fujian Zhongniang. The first is an Asset Purchase Agreement for HK$87.3 million, which will be settled by issuing shares. The second is a Lease Agreement for a 20-year lease of properties, valued at RMB20 million, also settled through share issuance. These transactions are considered discloseable under Hong Kong’s Listing Rules, impacting the company’s financial statements by recognizing a right-of-use asset valued at approximately HK$12.23 million.

Hope Life International Unanimously Passes AGM Resolutions

Hope Life International Holdings Ltd. held its Annual General Meeting (AGM) on May 22, 2025, where all resolutions were passed unanimously. The resolutions included the adoption of financial statements, re-election of directors, auditor appointments, and granting of mandates for share issuance and repurchase, reflecting strong shareholder support and confidence in the company’s strategic direction.