Redsun Properties Group Ltd. (1996) AI Stock Analysis

• Market Cap: HK$132.60M
• Dividend Yield: N/A
• Average Volume (3M): 181.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.15
• Revenue Growth: -59.30%
• EPS Growth: 19.71%
• Country: HK
• Employees: 785
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.61
• Shares Outstanding: 3,338,898,000
• 10 Day Avg. Volume: 196,200
• 30 Day Avg. Volume: 181,000
• PEG Ratio: <0.01
• Price to Book (P/B): -0.47
• Price to Sales (P/S): 0.02
• P/FCF Ratio: -0.43
• 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: 39 Underperform
• Price Target: HK$0.04 ▼(-7.50% Downside)

Redsun Properties Group Ltd. is in a precarious financial position, with significant challenges in profitability and liquidity. The technical analysis indicates weak momentum, and the valuation metrics highlight the company's financial distress. Immediate strategic interventions are necessary to improve the company's financial health.

Positive Factors

Innovative Design

The company's focus on innovative design and sustainable practices positions it well in the market, appealing to environmentally conscious buyers and potentially leading to long-term brand strength.

Commercial Property Income

Steady rental income from commercial properties provides a reliable revenue stream, supporting financial stability even when residential sales fluctuate.

Strategic Partnerships

Strategic partnerships and joint ventures can enhance operational capabilities and project pipeline, fostering growth and market expansion over time.

Negative Factors

Negative Profitability

Sustained negative profitability margins indicate challenges in cost management and pricing strategy, threatening long-term financial health.

Liquidity Challenges

Liquidity issues, highlighted by negative equity, can limit operational flexibility and increase vulnerability to economic downturns, impacting sustainability.

Revenue Decline

A prolonged decline in revenue suggests weakening market position and demand, necessitating strategic shifts to regain growth momentum.

Redsun Properties Group Ltd. Business Overview & Revenue Model

Company Description

Redsun Properties Group Ltd. is a prominent real estate development and investment company based in China, established in 1996. The company operates primarily in the residential and commercial property sectors, focusing on the development, sale, and management of properties. Redsun is known for its commitment to quality construction and innovative designs, with a diverse portfolio that includes high-rise apartments, mixed-use developments, and commercial spaces. The company aims to enhance urban living by creating sustainable and livable communities.

How the Company Makes Money

Redsun Properties Group Ltd. generates revenue primarily through the sale of residential and commercial properties. The company develops real estate projects and profits from the sale of these properties to homebuyers and investors. Additionally, Redsun earns income from property management services and leasing commercial spaces. Key revenue streams include pre-sales of properties during the development phase, which allows for cash flow before construction completion, and the rental income from its commercial properties. The company may also benefit from strategic partnerships with local governments and financial institutions, which can facilitate project financing and access to prime land for development.

Redsun Properties Group Ltd. Financial Statement Overview

Summary

Redsun Properties Group Ltd. is experiencing severe financial distress, with declining revenues, negative profitability margins, and a deteriorating balance sheet. The company faces liquidity challenges, as indicated by negative equity and a lack of cash flow generation.

Income Statement

Redsun Properties Group Ltd. has experienced a significant decline in revenue from 2021 to 2024. Gross profit margin and net profit margin have been negative in recent years, indicating a struggle to maintain profitability. The EBIT and EBITDA margins have also been consistently negative, signaling operational challenges.

Balance Sheet

The company has a negative stockholders' equity in 2024, with increasing liabilities surpassing assets. The debt-to-equity ratio is effectively undefined due to negative equity, highlighting financial distress. The equity ratio has deteriorated significantly, pointing to potential solvency issues.

Cash Flow

Redsun Properties Group Ltd. reported zero free cash flow and operating cash flow in 2024, which is concerning for liquidity. Historical data shows fluctuating and negative free cash flow, indicating poor cash generation capability relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.01B	11.31B	19.79B	20.01B	26.67B	20.16B
Gross Profit	-931.22M	-177.07M	-669.72M	1.67B	5.08B	4.51B
EBITDA	-1.24B	-641.46M	-5.21B	350.47M	3.25B	2.66B
Net Income	-5.12B	-5.02B	-7.21B	-3.88B	1.25B	1.66B
Balance Sheet
Total Assets	54.30B	60.01B	74.91B	101.73B	132.75B	119.05B
Cash, Cash Equivalents and Short-Term Investments	905.98M	1.32B	1.19B	4.91B	16.25B	12.84B
Total Debt	21.00B	21.63B	22.34B	25.67B	35.85B	34.09B
Total Liabilities	49.51B	52.83B	60.08B	77.93B	101.00B	91.64B
Stockholders Equity	-2.32B	-432.78M	4.69B	11.92B	15.77B	15.18B
Cash Flow
Free Cash Flow	-506.41M	-472.36M	314.02M	1.61B	344.64M	-2.59B
Operating Cash Flow	-487.20M	-450.55M	342.25M	1.63B	366.28M	-2.49B
Investing Cash Flow	670.38M	1.16B	1.17B	1.62B	-2.59B	-818.99M
Financing Cash Flow	-199.95M	-1.14B	-2.90B	-14.70B	3.74B	7.16B

Redsun Properties Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.04
• 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:1996, the sentiment is Neutral. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1996.

Redsun Properties Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2329	41 Neutral	HK$546.66M	-0.35	-13.99%	―	-0.38%	-296.42%
6968	41 Neutral	HK$121.63M	―	-26.32%	―	-70.72%	-667.17%
3639	41 Neutral	HK$134.37M	-0.04	-35.96%	―	-5.63%	-36.30%
6158	40 Underperform	HK$139.77M	-0.01	―	―	-70.13%	-16.86%
1996	39 Underperform	HK$132.60M	-0.02	-1347.47%	―	-59.30%	19.71%
0298	38 Underperform	HK$253.48M	-0.90	-9.74%	―	173.15%	2.36%

Redsun Properties Group Ltd. Corporate Events

Redsun Properties Reports November 2025 Sales Figures

Redsun Properties Group Ltd. reported contracted sales of RMB200 million for November 2025, with a sales area of 14,722 square meters and an average selling price of RMB13,571 per square meter. For the period from January to November 2025, the company achieved aggregate contracted sales of RMB4.181 billion, covering a sales area of 308,290 square meters. These figures, however, are preliminary and subject to change, and investors are advised to exercise caution.

Redsun Properties Extends RSA Fee Deadlines Amid Restructuring

Redsun Properties Group Ltd. has announced an extension of the deadlines for its Early RSA Fee and Base RSA Fee, allowing creditors more time to complete internal processes related to the restructuring support agreement (RSA). This move aims to facilitate creditor participation in the RSA, potentially stabilizing the company’s financial restructuring efforts.

Redsun Properties Reports October 2025 Sales Performance

Redsun Properties Group Ltd. reported unaudited contracted sales of RMB202 million for October 2025, with a sales area of 13,427 square meters and an average selling price of RMB15,077 per square meter. From January to October 2025, the company achieved aggregate contracted sales of RMB3.98073 billion. These figures, subject to future changes, reflect the company’s ongoing performance in the real estate market, though investors are cautioned against relying solely on this preliminary data.

Redsun Properties Extends RSA Fee Deadlines Amid Restructuring

Redsun Properties Group Ltd. has announced an extension of the deadlines for its Early RSA Fee and Base RSA Fee, allowing creditors more time to complete their internal processes related to the restructuring support agreement. This extension reflects the company’s ongoing efforts to manage its debt restructuring effectively, which could have implications for its financial stability and stakeholder relationships.

Redsun Properties Reports RMB272 Million in September Sales

Redsun Properties Group Ltd. reported unaudited contracted sales of RMB272 million for September 2025, with a sales area of 17,850 square meters and an average selling price of RMB15,226 per square meter. From January to September 2025, the company achieved aggregate contracted sales of RMB3.778 billion over 279,979 square meters, reflecting its ongoing business operations and market engagement.

Redsun Properties Extends RSA Fee Deadlines Amid Creditor Delays

Redsun Properties Group Limited has announced an extension of the deadlines for the Early RSA Fee and Base RSA Fee due to certain creditors needing additional time to complete their internal processes. This extension provides stakeholders with more time to accede to the restructuring support agreement, potentially impacting the company’s restructuring efforts and financial stability.

Redsun Properties Updates on Financial Measures Amid Auditor Concerns

Redsun Properties Group Ltd. has provided an update regarding the disclaimer of opinion expressed by its auditors on the company’s 2024 consolidated financial statements. To address material uncertainties related to going concern, the company has implemented several measures, including negotiating loan extensions and securing new financing. Additionally, Redsun is working on disposing of equity interests in certain projects to generate cash inflows. These efforts aim to stabilize the company’s financial position and ensure the delivery of ongoing property projects.

Redsun Properties Extends Deadlines for Restructuring Agreement

Redsun Properties Group Ltd. has announced an extension of the Early RSA Fee Deadline and Base RSA Fee Deadline to accommodate creditors requiring more time to complete internal processes related to the restructuring support agreement. This extension allows holders of existing debt more time to accede to the agreement, potentially impacting the company’s restructuring efforts and providing stakeholders with additional time to comply with the necessary procedures.