China SCE Group Holdings (1966) AI Stock Analysis

• Market Cap: HK$485.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.69
• Revenue Growth: 88.91%
• EPS Growth: 1.89%
• Country: HK
• Employees: 6,201
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Real Estate - Development
• EPS (TTM): -1.07
• Shares Outstanding: 4,222,986,300
• 10 Day Avg. Volume: 986,645
• 30 Day Avg. Volume: 1,175,248
• PEG Ratio: -1.50
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.22
• 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: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

China SCE Group Holdings faces significant financial difficulties, with ongoing profitability, leverage, and liquidity challenges being the most critical concerns. The technical analysis provides some support, but the poor valuation metrics further weigh down the overall score. These factors result in a low overall stock score, reflecting substantial risks to potential investors.

China SCE Group Holdings Business Overview & Revenue Model

Company Description

China SCE Group Holdings Limited, an investment holding company, engages in the development, investment, and management of properties in the People's Republic of China. the company develops residential and commercial real estate, cultural tourism real estate, and industrial real estate properties; rents apartments; and operates and manages shopping malls, residential and public facilities, education, health management, and other business sectors, as well as provides financial services, such as fund management and investment. It also trades in construction materials. The company was formerly known as China SCE Property Holdings Limited and changed its name to China SCE Group Holdings Limited in July 2018. The company was founded in 1987 and is headquartered in Shanghai, the People's Republic of China. China SCE Group Holdings Limited is a subsidiary of Newup Holdings Limited.

How the Company Makes Money

China SCE Group Holdings makes money primarily through its property development and sales operations, which involve acquiring land, developing it into residential and commercial properties, and selling these properties to end-users or investors. The company's revenue model relies on the successful sale of these properties, which can vary based on market demand, property location, and economic conditions. Additionally, China SCE Group Holdings generates revenue from its property investment segment by leasing out commercial properties, such as shopping malls and office buildings, to tenants, thus earning rental income. The company also engages in property management services, providing maintenance and management for residential and commercial properties, which contributes a steady stream of service-based revenue. Strategic partnerships with local governments and financial institutions facilitate land acquisition and project financing, further supporting the company's growth and profitability.

China SCE Group Holdings Financial Statement Overview

Summary

China SCE Group Holdings is experiencing significant financial challenges. Despite revenue growth, the company struggles with profitability issues, high debt levels, and zero cash flow, raising concerns about liquidity and financial stability.

Income Statement

The income statement reveals a challenging situation for China SCE Group Holdings. Despite a significant increase in total revenue from 2023 to 2024, the company remains unprofitable with a net income loss. Gross profit margins have declined compared to previous years, and the net profit margin is negative, indicating ongoing profitability issues. Revenue growth is evident in the most recent year, but the overall financial health remains weak due to persistent losses.

Balance Sheet

The balance sheet shows a precarious financial situation with a high debt-to-equity ratio, highlighting significant leverage. Stockholders' equity has drastically decreased from previous years, indicating financial strain. The equity ratio is low, suggesting a heavy reliance on debt financing. These factors contribute to a weak balance sheet position, raising concerns about financial stability.

Cash Flow

Cash flow analysis indicates severe challenges, as recent reports show zero operating, investing, and financing cash flows. Free cash flow has deteriorated from substantial positive figures in 2022 to zero in 2024. The inability to generate positive cash flow from operations or investments raises significant concerns about the company's liquidity and ability to sustain operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.77B	20.96B	26.71B	37.74B	32.57B
Gross Profit	6.24B	2.63B	4.42B	8.17B	7.86B
EBITDA	4.39B	198.99M	1.47B	5.13B	5.06B
Net Income	-7.86B	-7.99B	24.54M	3.07B	3.80B
Balance Sheet
Total Assets	128.29B	167.89B	193.96B	195.01B	170.61B
Cash, Cash Equivalents and Short-Term Investments	3.08B	5.23B	9.55B	16.97B	19.23B
Total Debt	37.83B	40.86B	44.17B	50.54B	46.92B
Total Liabilities	117.72B	147.41B	157.34B	152.31B	131.46B
Stockholders Equity	1.70B	9.72B	19.71B	21.79B	21.00B
Cash Flow
Free Cash Flow	-541.54M	5.02B	16.30B	-3.78B	-214.81M
Operating Cash Flow	-498.71M	5.09B	16.43B	-3.69B	-140.19M
Investing Cash Flow	429.41M	4.04B	-2.60B	1.28B	-4.32B
Financing Cash Flow	-1.24B	-13.39B	-21.25B	1.13B	2.49B

China SCE Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1966, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 81.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1966.

China SCE Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$27.25B	15.35	-4.01%	3.14%	1.00%	1.98%
1966	45 Neutral	HK$485.64M	―	-136.31%	―	88.91%	1.89%
TMPPF		$51.41M	―	-3320.67%	―	―	―
MKU0		€52.00M	―	-280.53%	―	―	―
FT7		€43.77M	―		―	―	―
1628	40 Neutral	HK$438.08M	―		―	-55.88%	-10.72%
3688	20 Underperform	HK$466.20M	―	-25.88%	―	24.01%	-103.87%

China SCE Group Holdings Corporate Events

China SCE Group Advances Offshore Debt Restructuring with Key Agreement

China SCE Group Holdings Limited has made significant progress in its offshore debt restructuring efforts by signing a restructuring support agreement (RSA) with key stakeholders, representing a substantial portion of its outstanding debt. This agreement marks a critical step towards stabilizing the company’s financial structure and ensuring liquidity, inviting remaining creditors to support the proposed restructuring plan, which aims to address existing notes and loans through a scheme of arrangement in applicable jurisdictions.

China SCE Group Withdraws Liquidation Application

China SCE Group Holdings Limited announced that the British Virgin Islands Court has approved the withdrawal of the Liquidation Application against Affluent Way. This development signifies a positive turn for the company, potentially stabilizing its operations and reassuring stakeholders about its financial health.

China SCE Group Holdings Announces New Board Composition

China SCE Group Holdings Limited has announced the composition of its board of directors, effective from June 23, 2025. The board includes both executive and independent non-executive directors, with Mr. Wong Chiu Yeung serving as Chairman. The board has established four committees: Audit, Remuneration, Nomination, and Corporate Governance, with various directors assigned to these committees. This reorganization is likely to impact the company’s governance structure and may influence its strategic direction.

China SCE Group Updates Board Nomination Committee Structure

China SCE Group Holdings Limited has announced updates to the terms of reference for its Nomination Committee, effective from June 23, 2025. The changes emphasize the inclusion of independent non-executive directors and gender diversity, reflecting the company’s commitment to enhancing governance and inclusivity in its board structure.

China SCE Group Holdings Updates Nomination Committee for Enhanced Governance

China SCE Group Holdings Limited has announced changes to its Nomination Committee effective from June 23, 2025. These changes, including the appointment of Ms. Zhang Haitao and the redesignation of Mr. Dai Yiyi as chairman, align with upcoming amendments to the Hong Kong Stock Exchange’s Listing Rules and Corporate Governance Code. The company aims to enhance the effectiveness and diversity of its corporate governance practices through these adjustments.

China SCE Group Holdings Relocates Hong Kong Office

China SCE Group Holdings Limited has announced a change in its principal place of business in Hong Kong, which will be relocated to a new address in Wong Chuk Hang, effective from June 18, 2025. This move may indicate strategic realignment or operational adjustments within the company’s Hong Kong operations, potentially impacting its logistical and administrative functions.

China SCE Faces Liquidation Application for Subsidiary

China SCE Group Holdings Limited announced that a liquidation application has been filed against its wholly-owned subsidiary, Affluent Way International Limited, by Arkkan Opportunities Fund Ltd due to non-payment of principal and interest on senior notes. The company believes that the application does not reflect the interests of its stakeholders and plans to oppose it legally. Despite the filing, the company asserts that there will be no significant impact on its operations and is working on a comprehensive solution to ensure sustainable operations while engaging with offshore creditors.

China SCE Group Holdings Secures Shareholder Approval for Key Resolutions

China SCE Group Holdings Limited announced that all resolutions proposed at their Annual General Meeting were passed by shareholders through a poll. The resolutions included the approval of the company’s audited financial statements for the year ended December 31, 2024, the re-election of several directors, the re-appointment of auditors, and the granting of mandates to the directors to manage the company’s shares. This successful approval of resolutions reflects strong shareholder support and positions the company to continue its strategic initiatives and governance practices.

China SCE Group Holdings Announces 2025 Annual General Meeting

China SCE Group Holdings Limited has announced its upcoming annual general meeting scheduled for May 30, 2025, in Hong Kong. The meeting will address several key business items, including the approval of the audited financial statements for 2024, the re-election of retiring directors, and the re-appointment of Prism Hong Kong Limited as auditors for 2025. Additionally, the company seeks approval to allot and issue additional shares, with a cap of 20% of the total issued shares, excluding treasury shares. This meeting is significant for stakeholders as it will determine the company’s financial and strategic direction for the coming year.