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China Financial Leasing Group Ltd (HK:2312)
:2312
Hong Kong Market
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China Financial Leasing Group Ltd (2312) AI Stock Analysis

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HK:2312

China Financial Leasing Group Ltd

(2312)

Rating:52Neutral
Price Target:
HK$1.00
▼(-0.99%Downside)
The company's financial performance is the most significant factor, highlighting substantial challenges with profitability and cash flow. Technical analysis provides some positive signals with the stock trading above key moving averages, but the valuation is weak due to negative earnings and no dividend yield.

China Financial Leasing Group Ltd (2312) vs. iShares MSCI Hong Kong ETF (EWH)

China Financial Leasing Group Ltd Business Overview & Revenue Model

Company DescriptionChina Financial Leasing Group Limited is a fixed income fund launched and managed by Wealth Assets Management Limited. The fund invests in the fixed income markets of China. It seeks to invest in leasing markets and convertible bonds. The fund was previously known as Golden 21 Investment Holdings. China Financial Leasing Group Limited was formed on May 14, 2002 and is domiciled in Cayman Islands.
How the Company Makes MoneyChina Financial Leasing Group Ltd generates revenue through its financial leasing operations. The company earns money by purchasing equipment or assets and leasing them to clients for a specified period. This leasing model allows businesses to access necessary equipment without incurring the full cost upfront. The company benefits from lease payments, which typically include a combination of principal and interest, providing a steady income stream. Additionally, the company may generate revenue from asset management fees and other financial services related to leasing. Partnerships with various industries for tailored leasing solutions and maintaining a robust portfolio of leased assets are significant factors contributing to its earnings.

China Financial Leasing Group Ltd Financial Statement Overview

Summary
China Financial Leasing Group Ltd faces significant financial challenges, with persistent losses impacting its income statement, despite a robust equity position on its balance sheet. The reliance on external financing to sustain operations highlights the need for improved operational performance and revenue growth to ensure long-term viability.
Income Statement
25
Negative
The income statement reveals persistent challenges with profitability and revenue generation, as indicated by negative net income and declining revenues over several years. The gross profit margin has been consistently negative, and the net profit margin remains deeply in the red. Despite a slight improvement in revenue in the latest year, the company continues to operate at a loss, with negative EBIT and EBITDA margins.
Balance Sheet
60
Neutral
The balance sheet presents a relatively stable picture with a strong equity position, evident from a high equity ratio of over 90%. The company maintains low debt levels, resulting in a low debt-to-equity ratio. However, consistent net losses are a concern for future equity preservation. The overall stability is bolstered by substantial cash and short-term investments.
Cash Flow
40
Negative
Cash flow analysis shows negative operating cash flows, reflecting ongoing operational challenges. Despite a positive trend in free cash flow due to decreased outflows, the operating cash flow to net income ratio is unfavorable. The company relies heavily on financing activities to maintain liquidity, indicating potential sustainability issues if external funding decreases.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.04M-4.21M155.00K95.00K-51.40M
Gross Profit2.04M-4.19M155.00K95.00K-51.40M
EBITDA-2.01M-7.95M-19.83M-51.09M-17.34M
Net Income-2.04M-7.97M-20.50M-51.60M-19.81M
Balance Sheet
Total Assets78.40M60.64M68.93M47.05M88.04M
Cash, Cash Equivalents and Short-Term Investments78.32M60.13M68.85M45.84M74.63M
Total Debt368.00K93.00K361.00K96.00K2.02M
Total Liabilities761.00K466.00K794.00K533.00K7.56M
Stockholders Equity77.64M60.17M68.14M46.52M80.48M
Cash Flow
Free Cash Flow-17.47M-21.07M-2.81M-2.29M-14.66M
Operating Cash Flow-17.44M-21.05M-2.79M-2.27M-14.66M
Investing Cash Flow-27.00K-17.00K-21.00K-17.00K859.00K
Financing Cash Flow19.66M-689.00K41.85M19.08M32.48M

China Financial Leasing Group Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.01
Price Trends
50DMA
0.79
Positive
100DMA
0.44
Positive
200DMA
0.29
Positive
Market Momentum
MACD
0.09
Positive
RSI
42.85
Neutral
STOCH
8.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2312, the sentiment is Neutral. The current price of 1.01 is below the 20-day moving average (MA) of 1.37, above the 50-day MA of 0.79, and above the 200-day MA of 0.29, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 8.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2312.

China Financial Leasing Group Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
HK$64.86M6.1711.69%1.92%
58
Neutral
HK$92.73B5.66-3.20%4.92%5.50%-56.25%
52
Neutral
HK$405.87M-2.95%50.91%81.77%
41
Neutral
HK$50.85M-48.65%-2.58%-289.56%
HK$12.11M-136.82%
HK$488.29M-38.46%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2312
China Financial Leasing Group Ltd
1.01
0.92
1022.22%
HK:0204
China Investment Development Limited
0.91
-9.49
-91.25%
HK:0310
Prosperity Investment Holdings Limited
0.10
0.00
0.00%
HK:0768
UBA Investments Ltd.
0.05
0.02
66.67%
HK:0080
China New Economy Fund Ltd.
0.35
0.28
400.00%

China Financial Leasing Group Ltd Corporate Events

China Financial Leasing Group Ltd Proposes Rebranding to CAI Corp
Jul 30, 2025

China Financial Leasing Group Ltd has announced a proposed change of its company name to ‘CAI Corp’ following the acquisition of a controlling shareholding by Longling Capital Ltd. This rebranding aims to enhance the company’s corporate image and support future business development, while maintaining its current operational and financial stability. The change is subject to shareholder approval and regulatory consent, with no impact on existing securities or daily operations.

Longling Capital Initiates Cash Offer for China Financial Leasing Group
Jul 28, 2025

Longling Capital Ltd has initiated a mandatory conditional cash offer to acquire all issued shares of China Financial Leasing Group Ltd, excluding those already owned or agreed to be acquired by Longling Capital and its concert parties. The despatch of the Composite Document, which includes details such as the offer timetable and recommendations from various financial advisers, marks a significant step in this acquisition process. This move could potentially impact the company’s market positioning and shareholder value, as stakeholders are advised on the acceptance of the offer.

China Financial Leasing Group Ltd Adjusts Rights Issue Proceeds Amid Market Recovery
Jul 16, 2025

China Financial Leasing Group Ltd has announced a change in the use of proceeds from its recent rights issue, reallocating funds originally intended for general working capital towards investments in listed securities. This decision comes in response to a notable recovery in the Hong Kong stock market, allowing the company to capitalize on improved investment opportunities and enhance returns.

China Financial Leasing Announces Delay in Cash Offer Document Dispatch
Jul 15, 2025

China Financial Leasing Group Ltd, in collaboration with Longling Capital Ltd, announced a delay in the dispatch of a composite document related to a mandatory conditional cash offer. The delay is due to the need for additional time to finalize necessary documents, with a new deadline set for no later than 28 July 2025. The announcement highlights the conditional nature of the offer and advises shareholders and potential investors to exercise caution, as the offer may not become unconditional.

China Financial Leasing Group Ltd Announces Net Asset Value Update
Jul 9, 2025

China Financial Leasing Group Ltd announced that its unaudited net asset value per share was approximately HK$0.23 as of June 30, 2025. This financial update provides stakeholders with insights into the company’s current financial standing, which could influence investment decisions and reflect the company’s market positioning.

China Financial Leasing Group Announces Share Acquisition and Mandatory Offer
Jun 24, 2025

China Financial Leasing Group Limited has announced a series of conditional agreements involving the sale and purchase of its shares by Longling Capital Ltd. The transactions result in Longling Capital Ltd acquiring approximately 34.96% of the company’s shares, triggering a mandatory conditional cash offer for the remaining shares. The offer price is set at HK$0.38 per share, matching the purchase price in the agreements. The offer is contingent upon Longling Capital Ltd and its affiliates securing more than 50% of the company’s voting rights. The company aims to maintain its listing status on the Hong Kong Stock Exchange, ensuring sufficient public float post-offer.

China Financial Leasing Group Reports Net Asset Value Update
Jun 13, 2025

China Financial Leasing Group Ltd announced that as of May 31, 2025, the unaudited net asset value per share was approximately HK$0.22. This financial update provides stakeholders with insight into the company’s financial health and market valuation, potentially influencing investor confidence and market positioning.

China Financial Leasing Group Ltd Announces Trading Halt
Jun 12, 2025

China Financial Leasing Group Ltd has announced a trading halt of its shares on the Hong Kong Stock Exchange, effective from June 12, 2025. This halt is pending the release of an announcement related to inside information concerning the Hong Kong Code on Takeovers and Mergers, which could have significant implications for the company’s operations and its stakeholders.

China Financial Leasing Group Announces Net Asset Value Update
May 14, 2025

China Financial Leasing Group Ltd announced that as of April 30, 2025, its unaudited net asset value per share was approximately HK$0.21. This financial update provides stakeholders with insight into the company’s current financial standing, which may influence investor decisions and market perceptions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025