Grace Life-tech Holdings Limited (2112) AI Stock Analysis

• Market Cap: HK$93.00M
• Dividend Yield: N/A
• Average Volume (3M): 824.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: -11.12%
• EPS Growth: -1.86%
• Country: HK
• Employees: 40
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Distribution
• EPS (TTM): <0.01
• Shares Outstanding: 1,500,000,000
• 10 Day Avg. Volume: 1,213,800
• 30 Day Avg. Volume: 824,800
• PEG Ratio: -0.02
• Price to Book (P/B): -0.13
• Price to Sales (P/S): 1.57
• P/FCF Ratio: -277.16
• 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: HK$0.06 ▼(-8.33% Downside)

The score is primarily driven by very weak financial performance (persistent large losses, negative equity, and inconsistent negative cash flow). Technicals add limited support with mostly neutral momentum but a clear longer-term downtrend, while valuation is constrained by ongoing losses and no dividend data.

Positive Factors

Strategic Partnerships

The partnership in the PRC could enhance market reach and operational scale, potentially stabilizing revenue and improving long-term growth prospects.

Cost Optimization

Cost optimization efforts can improve margin sustainability and operational efficiency, enhancing financial stability over the long term.

Debt Restructuring

Debt restructuring and interest waivers can alleviate financial pressure, improving cash flow and reducing solvency risk, supporting long-term viability.

Negative Factors

Negative Revenue Growth

Significant revenue contraction indicates weakening market position and challenges in maintaining competitive advantage, impacting long-term growth.

Negative Cash Flow

Persistent negative cash flow limits reinvestment capability and financial flexibility, posing a threat to sustainable business operations.

High Solvency Risk

Negative equity and rising debt levels increase solvency risk, constraining financial flexibility and threatening long-term stability.

Grace Life-tech Holdings Limited Business Overview & Revenue Model

Company Description

How the Company Makes Money

Grace Life-tech Holdings Limited Financial Statement Overview

Summary

Grace Life-tech Holdings Limited's financial health is under significant strain. Declining revenues, consistent losses, high leverage, and negative cash flows suggest structural challenges in achieving profitability and growth. The steel industry's competitive pressures may exacerbate these difficulties, necessitating strategic adjustments.

Income Statement

Grace Life-tech Holdings Limited has been experiencing decreasing revenues over the past years, dropping sharply from 2019 to 2024. The company has reported negative EBIT and net income consistently, indicating ongoing operational challenges. Gross profit margins remain low, and the net profit margin is negative, highlighting significant profitability issues.

Balance Sheet

The balance sheet shows a precarious financial position, with significant negative stockholders' equity and a high debt-to-equity ratio due to substantial liabilities surpassing assets. This indicates financial instability and high leverage, posing potential risks for sustainability.

Cash Flow

Cash flows are concerning, with negative operating and free cash flows in recent years, pointing to liquidity issues. The company's ability to generate cash from operations is weak, which could impact its capacity to meet financial obligations and fund operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.21M	13.76M	27.25M	32.35M	23.98M	27.86M
Gross Profit	2.31M	2.17M	2.85M	2.54M	164.00K	-571.00K
EBITDA	-30.06M	-30.49M	-23.74M	-42.55M	-44.21M	-12.04M
Net Income	-38.95M	-48.13M	-39.57M	-55.74M	-57.01M	-29.60M
Balance Sheet
Total Assets	81.13M	79.80M	108.95M	133.56M	173.13M	234.99M
Cash, Cash Equivalents and Short-Term Investments	96.00K	255.00K	135.00K	187.00K	1.19M	102.00K
Total Debt	200.11M	193.26M	121.04M	171.57M	166.50M	160.50M
Total Liabilities	247.80M	247.29M	228.85M	213.88M	197.41M	200.97M
Stockholders Equity	-166.51M	-167.40M	-119.90M	-80.32M	-24.27M	34.01M
Cash Flow
Free Cash Flow	47.00K	-78.00K	-53.00K	-1.01M	1.10M	-1.22M
Operating Cash Flow	48.00K	-75.00K	-27.00K	-1.00M	1.41M	-1.22M
Investing Cash Flow	-1.00K	-3.00K	-26.00K	-2.00K	-303.00K	1.28M
Financing Cash Flow	-202.00K	193.00K	0.00	0.00	-12.00K	-51.00K

Grace Life-tech Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 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:2112, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2112.

Grace Life-tech Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8140	79 Outperform	HK$108.80M	3.35	16.22%	―	-18.25%	-8.37%
6890	68 Neutral	HK$221.28M	5.01	4.73%	―	-20.52%	-68.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1894	46 Neutral	HK$23.95M	-1.26	-12.82%	―	31.75%	21.89%
2738	45 Neutral	HK$174.00M	-0.25	-296.26%	―	-49.77%	-1095.34%
2112	43 Neutral	HK$93.00M	-0.30	―	―	-11.12%	-1.86%
2459	40 Underperform	HK$179.55M	-0.46	-30.61%	―	-20.20%	-33.73%

Grace Life-tech Holdings Limited Corporate Events

Grace Life-tech Advances Debt Restructuring and Business Expansion Amid Going-Concern Efforts

Grace Life-tech Holdings Limited, currently under joint provisional liquidation and restructuring, reported ongoing efforts to expand its plant stem cell business by adding new customers in the fourth quarter of 2025 and deepening supplier collaboration, while tightly controlling administrative expenses and avoiding significant capital expenditure. The company is formulating a comprehensive debt restructuring plan covering its outstanding bank loans and notes, is in advanced discussions with at least one potential investor that has completed legal due diligence, is seeking further financing and restructuring options with other institutions, and is negotiating potential strategic collaborations with a partner in investment and real estate, steps that are aimed at resolving going-concern issues and stabilising its financial position for stakeholders.

The most recent analyst rating on (HK:2112) stock is a Hold with a HK$0.06 price target. To see the full list of analyst forecasts on Grace Life-tech Holdings Limited stock, see the HK:2112 Stock Forecast page.

Grace Life-tech Holdings Implements Strategic Measures to Address Financial Concerns

Grace Life-tech Holdings Limited has implemented several measures to address its going concern issue, including expanding its plant stem cell business and engaging new customers. The company is working on a debt restructuring proposal and has entered into an interest waiver agreement, waiving approximately US$9.9 million of accrued interest. Additionally, Grace Life-tech has partnered with a strategic partner in the PRC to expand its operations and is controlling administrative costs to optimize efficiency.